Presidential Life Corp. (PLFE, Financial) filed Amended Annual Report for the period ended 2010-12-31.
Presidential Life Corp. has a market cap of $325.8 million; its shares were traded at around $11.02 with a P/E ratio of 13.3 and P/S ratio of 1.1. The dividend yield of Presidential Life Corp. stocks is 2.4%.
We offer a range of fixed annuity, life insurance and accident and health insurance products. During 2010, our product mix was approximately 82% annuities, 12% life insurance and 6% accident and health insurance. Due to the competitive nature of the traditional term, whole life and universal life insurance business and the negative impact of that competition on our profitability, in 2004, management decided to stop offering those traditional life insurance products. We continue to service the in-force policies and continue to issue the more profitable Graded Benefit Life and Simplified Issue Whole Life products.
All of our deferred annuity products provide minimum interest rate guarantees. These minimum guaranteed rates range from 1.1% to 5.5% annually and the contracts (except for immediate contracts discussed below) are designed to permit us to change the crediting rates annually after the initial guarantee period subject to the minimum guaranteed rate. In determining the frequency and extent of changes to the interest-crediting rate, we take into account the profitability of our annuity business and its relative competitive position in the marketplace.
Our deferred annuity products are designed to encourage persistency by incorporating surrender charges that exceed the cost of issuing the policy. An annuitant may not terminate or withdraw substantial funds for periods generally ranging from one to seven years after purchase of the annuity without incurring significant penalties in the form of surrender charges. As of December 31, 2010 and 2009, approximately 42.5% and 43.7%, respectively, of our deferred annuity contracts in force (measured by reserves) are subject to surrender charges.
Read the The complete Report
Presidential Life Corp. has a market cap of $325.8 million; its shares were traded at around $11.02 with a P/E ratio of 13.3 and P/S ratio of 1.1. The dividend yield of Presidential Life Corp. stocks is 2.4%.
Highlight of Business Operations:
As previously disclosed in a Current Report on Form 8-K filed with the SEC on March 10, 2011, the Board of Directors of the Company determined on March 7, 2011 that the Companys financial statements for the years ended December 31, 2009 and 2008 (the Annual Financial Statements) and for the quarterly periods ended March 31, 2010, June 30, 2010 and September 30, 2010 (the Quarterly Financial Statements and, together with the Annual Financial Statements, collectively, the Previously Issued Financial Statements) should no longer be relied upon because they contained an error as addressed in FASB ASC Topic 250. The error in the Previously Issued Financial Statements related to the application of the equity method of accounting for the Companys limited partnership investments. The Company sought to correct the error with respect to the Annual Financial Statements by restating (Original Restatement) such financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2010 filed with the Securities and Exchange Commission (SEC) on March 29, 2011 (the Original 2010 Form 10-K). The Original Restatement incorporated a change in the way we accounted for certain of our investments. Approximately 5% of our overall investment portfolio is invested in private limited partnerships, with respect to which we had historically applied the equity method of accounting. After extensive discussions with the staff of the SEC, we determined that we should not have applied the equity method to many of the partnerships because we did not exert any influence over them. As a result, we now apply the fair value method of accounting for investments in limited partnerships in which we have less than a 5% interest and do not have more than virtually no influence over the operating and financial policies of the partnership, and apply the equity method of accounting where we have either a 5% or greater interest or less than a 5% interest, but with respect to which partnership we have more than virtually no influence over the operating and financial policies of the partnership. The Original Restatement primarily impacts the net investment income, change in deferred policy acquisition costs and provision (benefit) for income taxes amounts in the statement of income and the limited partnerships investments, deferred policy acquisition costs, deferred income tax asset and shareholders' equity amounts in the balance sheet.We offer a range of fixed annuity, life insurance and accident and health insurance products. During 2010, our product mix was approximately 82% annuities, 12% life insurance and 6% accident and health insurance. Due to the competitive nature of the traditional term, whole life and universal life insurance business and the negative impact of that competition on our profitability, in 2004, management decided to stop offering those traditional life insurance products. We continue to service the in-force policies and continue to issue the more profitable Graded Benefit Life and Simplified Issue Whole Life products.
All of our deferred annuity products provide minimum interest rate guarantees. These minimum guaranteed rates range from 1.1% to 5.5% annually and the contracts (except for immediate contracts discussed below) are designed to permit us to change the crediting rates annually after the initial guarantee period subject to the minimum guaranteed rate. In determining the frequency and extent of changes to the interest-crediting rate, we take into account the profitability of our annuity business and its relative competitive position in the marketplace.
Our deferred annuity products are designed to encourage persistency by incorporating surrender charges that exceed the cost of issuing the policy. An annuitant may not terminate or withdraw substantial funds for periods generally ranging from one to seven years after purchase of the annuity without incurring significant penalties in the form of surrender charges. As of December 31, 2010 and 2009, approximately 42.5% and 43.7%, respectively, of our deferred annuity contracts in force (measured by reserves) are subject to surrender charges.
Read the The complete Report
