Insurance Businesses
Consolidated operating earnings from insurance businesses represent the combination of the results of their insurance underwriting (premiums earned, less insurance losses, loss adjustment expenses and underwriting expenses) with their investment income. Following is a summary of these Ñgures as they pertain to all insurance operations (in 000s).
As shown above, operating income includes signiÑcant net investment income, representing dividends and interest earned from marketable securities. However, operating income excludes investment gains of $216.6 million, net of income taxes, realized in . No investment gains or losses were realized in . The discussion below will concentrate on insurance underwriting, not on the results from investments.
Wes-FIC engages in the reinsurance business. For the past several years, its reinsurance activity has consisted of the participation in several risk pools managed by an insurance subsidiary of Berkshire Hathaway, our 80%-owning parent. The arrangement became eÅective in 2001 and most recently covered hull, liability and workers' compensation exposures relating to the aviation industry, as follows: for , to the extent of 10% in the hull and liability pools and 5% of a workers' compensation pool; for , 121/2% of the hull and liability pools and 5% of the workers' compensation pool. For , participation in the hull and liability pools has increased to 16.67%. The Berkshire subsidiary provides a portion of the upper-level reinsurance protection to these aviation risk pools on terms that could result in the Berkshire subsidiary having a diÅerent interest from that of Wes-FIC under certain conditions, e.g., in settling a large loss.
Consolidated Balance Sheet and Related Discussion
As indicated in the accompanying Ñnancial statements, Wesco's net worth, as accountants compute it under their conventions, increased to $2.40 billion ($337 per Wesco share) at yearend from $2.23 billion ($313 per Wesco share) at yearend . The main causes of the increase were appreciation in fair value of investments, and net operating income after deduction of dividends paid to shareholders.
The foregoing $337-per-share book value approximates liquidation value assuming that all Wesco's non-security assets would liquidate, after taxes, at book value.
Of course, so long as Wesco does not liquidate, and does not sell any appreciated securities, including the PG shares Wesco received in connection with PG's acquisition of Gillette in , discussed above in the section, ""Realized Investment Gains,'' Wesco has, in eÅect, an interest-free ""loan'' from the government equal to its deferred income taxes, subtracted in determining its net worth. This interest-free ""loan'' from the government is at this moment working for Wesco shareholders and amounted to about $42 per Wesco share at yearend .
#人民日报海外版#【澳门从制度机构执法等多方面 全方位落实维护国家安全宪制责任】织密安全网，筑牢防火墙。澳门特区正在从制度、机构及执法等多方面、全方位贯彻落实维护国家安全的宪制责任。10月12日生效的法律《修改第5/号法律〈司法警察局〉》，明确将危害国家安全的犯罪列入澳门司法警察局的专属职权。为配合该法律的实施，澳门特区政府重新制定《司法警察局的组织及运作》行政法规，使司法警察局能在维护国家安全、应对恐怖主义犯罪、网络犯罪工作上有完善的架构制度及做出更迅速的反应，提升整体执法效率。全方位落实维护国家安全宪制责任 - 原创 - 海外网
Wes-FIC's underwriting results have Öuctuated from year to year, but have been satisfactory. When stated as a percentage, the sum of insurance losses, loss adjustment expenses and underwriting expenses, divided by premiums, gives the combined ratio. The combined ratios of Wes-FIC have been much better than average for insurers. Wes-FIC's combined ratios were 94.0% for and 75.9% for . We try to create some underwriting gain as results are averaged out over many years. We expect this to become increasingly diÇcult.
Kansas Bankers was purchased by Wes-FIC in 1996 for approximately $80 million in cash. Its tangible net worth now exceeds its acquisition price, and it has been a very satisfactory acquisition, reÖecting the sound management of President Don Towle and his team.
Kansas Bankers was chartered in 1909 to underwrite deposit insurance for Kansas banks. Its oÇces are in Topeka, Kansas. Over the years its service has continued to adapt to the changing needs of the banking industry. Today its customer base, consisting mostly of small- and medium-sized community banks, is spread throughout 30 mainly midwestern states. In addition to bank deposit guaranty bonds which insure deposits in excess of FDIC coverage, KBS oÅers directors and oÇcers indemnity policies, bank employment practices policies, bank insurance agents professional errors and omissions indemnity policies and Internet banking catastrophe theft insurance.
Wes-FIC’s underwriting results have typically fluctuated from year to year, but have been satisfactory. When stated as a percentage, the sum of insurance losses, loss adjust- ment expenses and underwriting expenses, divided by premiums, gives the combined ratio. The combined ratios of Wes-FIC have been much better than average for insurers. Wes-FIC’s combined ratios were 101.0% for , 93.9% for and 94.0% for . We try to create some underwriting gain as results are averaged out over many years. We expect this to become increasingly difficult.
Float is the term for money we hold temporarily, and, as long as our insurance underwriting results are break-even or better, it costs us nothing. We expect that the new business venture with NICO will significantly increase Wes-FIC’s float, from its yearend balance of $164 million, thus providing additional opportunities for investment.
Kansas Bankers was purchased by Wes-FIC in 1996 for approximately $80 million in cash. Its tangible net worth now exceeds its acquisition price, and it has been a very satisfactory acquisition, reflecting the sound management of President Don Towle and his team.
【#澳大利亚拟斥资13亿澳元购买美制直升机# 被批浪费】澳大利亚广播公司（Abc）9日报道称，澳大利亚海军直升机机队将放弃欧洲制造的MRH90大班机型，改用美国制造的“海鹰”直升机。这笔交易价值13亿澳元。该军售被指凸显了澳大利亚的国防管理不善。
早些时候，澳国防军停飞了海军和陆军现役的全部47架大班直升机。MRH90机型于服役以来，一直存在诸多技术问题，比如机门太窄影响开火射击，澳军队最近不得不租用临时直升机用于训练和非战斗运输任务。
澳大利亚影子防长助理帕特·康罗伊认为，这笔军售交易凸显澳大利亚国防管理不善，浪费纳税人的钱。“澳政府曾斥资37亿澳元购买MRH90大班直升机，现在又要让纳税人损失13亿澳元。”澳大利亚拟斥资13亿澳元购买美制直升机 被批浪费 - 原创 - 海外网
经济学家：亚洲及其他国家将在2050年之际改变全球经济平衡
在全球面临新冠疫情、气候变化和地缘政治冲突加剧等重大挑战之际，法国巴黎第一大学（Panthéon-Sorbonne）经济学教授莱昂内尔·方丹预计，世界经济权重将发生转变，并在2050年之际向亚洲倾斜。
莱昂内尔·方丹同样还是巴黎经济学院的一名教授，他曾在2000年至期间担任未来研究和国际信息中心的负责人，并参与了该中心发布的题为《2050年前景展望：全球经济动力从何而来？》的报告。
根据本周发布的一项研究报告，这位专家预计中国的经济实力将从2031年开始超越美国。这项研究也是由未来研究和国际信息中心进行的，而该中心是法国研究国际经济的主要机构。
这项研究报告得出的第一个预期，是中国这个亚洲巨人将继续其经济进步，并且将在2031年超越美国，也就是说这会在未来几年的时间内实现，而这项指标明确阐释了中美之间的关系恶化，特别是在国际贸易和地缘政治的问题上——关于美国将失去其作为全球经济重心的地位的预期越来越多。
同一项研究表明，法国将在这场经济竞争中失去很多权重，并从第六位下滑至第九位，甚至被尼日利亚和印度尼西亚等国超越。
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