SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
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(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT of 1934 for the quarterly period ended March 31, 1996, or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the transition period from ____ to _____.
For the Quarter Ended March 31, 1996 Commission file number 0-28188
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Chartwell Re Holdings Corporation
(Exact name of registrant as specified in its charter)
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Delaware 06-1438493
- ------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
300 Atlantic Street
Stamford, Connecticut 06901
(Address of principal executive offices) (zip code)
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Registrant's telephone number, including area code (203) 961-7300
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No __
Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of the latest practicable date.
Common Stock - $1.00 par value 100
Description of Class Shares Outstanding
as of May 14, 1996
(All shares are privately held,
and there is no public market
for the Company's common shares)
<PAGE>
Chartwell Re Holdings Corporation
Index To Form 10-Q
PART I FINANCIAL INFORMATION
Item 1 - Financial Statements Page
----
Condensed Consolidated Balance Sheets at March 31, 1996
and December 31, 1995 ............................................. 3
Condensed Consolidated Statements of Operations for the three
month periods ended March 31, 1996 and 1995 ....................... 4
Condensed Consolidated Statements of Cash Flows for the three
month periods ended March 31, 1996 and 1995 ....................... 5
Notes to Condensed Consolidated Financial Statements .............. 6
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations............... 8
PART II OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K............................ 14
Signatures........................................................... 15
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1 -Financial Statements
CHARTWELL RE HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
March 31, 1996 December 31,
(Unaudited) 1995
----------- -----------
ASSETS:
Investments:
Fixed maturities:
Held for investment (market value March 31, 1996,
$29,862; December 31, 1995, $27,965)........... $ 30,412 $ 26,691
Available for sale (amortized cost March 31,
1996, $611,200; December 31,1995, $481,175).... 602,770 489,107
Other investments ............................... 31,111 33,837
Cash and cash equivalents ......................... 54,810 152,507
------ -------
Total investments and cash ................ 719,103 702,142
Premiums in process of collection ................. 76,638 73,620
Reinsurance recoverable ........................... 190,165 195,434
Prepaid Reinsurance ............................... 19,869 18,212
Deferred income taxes ............................. 44,649 39,517
Deferred policy acquisition costs ................. 17,946 18,809
Deposits .......................................... 17,894 17,481
Other assets ...................................... 48,542 55,132
------ ------
Total assets................................... $1,134,806 $1,120,347
========== ==========
LIABILITIES:
Loss and loss adjustment expenses ................. $ 740,089 $ 741,467
Unearned premiums ................................. 85,465 90,573
Other reinsurance balances ........................ 4,946 4,689
Accrued expenses and other liabilities............. 51,406 20,190
Long term debt .................................... 68,750 95,000
------ ------
Total liabilities ............................. 950,656 951,919
------- -------
COMMON STOCKHOLDER'S EQUITY:
Common stock, par value $1.00 per share;
authorized: 1,000 shares; issued and
outstanding: 100 shares............................
Additional paid-in capital ........................ 189,320 169,320
Net unrealized appreciation
(depreciation) of investments...................... (4,383) 5,219
Foreign currency translation adjustment............ 40 9
Accumulated deficit ............................... (827) (6,120)
------ ------
Total common stockholder's equity.............. 184,150 168,428
------- -------
Total liabilities and stockholder's equity..... $1,134,806 $1,120,347
========== ==========
See notes to condensed consolidated financial statements.
3
<PAGE>
CHARTWELL RE HOLDINGS CORPORATION AND SUBSIDIARIES
CHARTWELL RE CORPORATION AND SUBSIDIARIES (Predecessor)
Condensed Consolidated Statements of Operations
(Dollars in Thousands, except share amounts)
(Unaudited)
Chartwell Re Chartwell Re
Holdings Corporation
Corporation (Predecessor)
Three Month Periods
Ended March 31,
1996 1995
-------- --------
REVENUES:
Premiums earned.................................... $56,243 $32,786
Net investment income............................... 10,635 4,821
Net realized capital gains.......................... 921 67
Service and other revenue........................... 1,472 260
------ ------
Total revenues.............................. 69,271 37,934
------ ------
LOSSES AND EXPENSES INCURRED:
Loss and loss adjustment expenses................... 40,942 24,087
Policy acquisition costs............................ 14,176 7,672
Other expenses...................................... 4,369 2,469
Interest and amortization........................... 2,347 1,775
------ ------
Total losses and expenses incurred.......... 61,834 36,003
------ ------
Income before income taxes............................ 7,437 1,931
Income tax expense.................................... 2,144 615
------ ------
Net income............................................ $5,293 $1,316
====== ======
See notes to condensed consolidated financial statements.
4
<PAGE>
CHARTWELL RE HOLDINGS CORPORATION AND SUBSIDIARIES
CHARTWELL RE CORPORATION AND SUBSIDIARIES (Predecessor)
Condensed Consolidated Statements of Cash Flows
(Dollars in Thousands)
(Unaudited)
Chartwell Re Chartwell Re
Holdings Corporation
Corporation (Predecessor)
Three Month Periods
Ended March 31,
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net premiums collected.............................. $58,844 $20,903
Ceded premiums paid................................. (19,761) (1,147)
Net losses & LAE.................................... (42,995) (13,583)
Overhead expenses................................... (4,301) (3,041)
Service fee income.................................. 1,472 261
Net income taxes (paid)/recovered................... (86) 1,407
Interest received on investments.................... 9,342 5,228
Interest paid....................................... (3,844) (3,844)
Other, net.......................................... 1,273 (1,052)
------ ------
Net cash provided (used in) by operating activities (56) 5,132
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold...................... 118,256 16,361
Proceeds from investments matured or repaid......... 7,163 1,590
Cost of investments acquired........................ (242,840) (31,407)
-------- -------
Net cash used in investing activities............. (117,421) (13,456)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital Contribution from parent.................... 20,000
Other, net.......................................... (250) (304)
------- -----
Net cash provided by (used in) financing activities 19,750 (304)
------- -----
Effect of exchange rate on cash................. 30 21
------ -----
Net decrease in cash and cash equivalents............. (97,697) (8,607)
Cash and cash equivalents at beginning of year........ 152,507 37,005
------- ------
Cash and cash equivalents at end of period............ $54,810 $28,398
======= =======
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net income ......................................... $5,293 $1,316
Adjustments to reconcile net income to net
cash provided by operating activities:
Net realized capital gains.......................... (921) (67)
Deferred policy acquisition costs................... 863 (589)
Deferred income taxes............................... (242) (1,491)
Unpaid loss and loss adjustment expenses............ (1,378) 10,522
Unearned premiums................................... (5,108) 1,688
Other reinsurance balances.......................... 275 2,892
Reinsurance recoverable............................. (657) 1,597
Net change in receivables and payables.............. 3,951 (10,588)
Other, net.......................................... (2,132) (148)
------ ------
Net cash provided by (used in) operating activities ($56) $5,132
====== ======
See notes to condensed consolidated financial statements.
5
<PAGE>
CHARTWELL RE HOLDINGS CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 1996
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited interim Condensed Consolidated Financial
Statements of Chartwell Re Holdings Corporation (the "Company") have been
prepared in accordance with generally accepted accounting principles for interim
financial information, the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
notes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for fair presentation have
been included. Operating results for any interim period are not necessarily
indicative of results that may be expected for the full year. These interim
statements should be read in conjunction with the 1995 consolidated financial
statements and notes thereto included in the Company's Annual Report on Form
10-K as filed with the Securities and Exchange Commission.
NOTE 2 - PUBLIC STOCK OFFERING
On March 5, 1996, the Company's parent, Chartwell Re Corporation (Chartwell
Re), completed a public offering of 2,500,000 shares of common stock at $23.00
per share (the "Offering"). The net proceeds to Chartwell Re were $53.7 million
after deduction of underwriting discount and expenses. Of the net proceeds,
$20.0 million was contributed to the Company which used such funds to increase
the statutory surplus of its wholly owned subsidiary Chartwell Reinsurance
Company. See also Note 4.
On April 3, 1996, the underwriters exercised the over-allotment option for
225,000 shares of common stock and Chartwell Re received an additional $4.8
million from such exercise.
NOTE 3 - PRO FORMA DATA
On December 13, 1995, Piedmont Management Company Inc. (PMC) was merged
with and into Chartwell Re (the "Merger"), with Chartwell Re as the surviving
corporation. The Merger has been accounted for under the purchase method of
accounting effective December 31, 1995. The results of operations for the three
months ended March 31, 1996 include the results of PMC's former subsidiary, The
Reinsurance Corporation of New York (RECO).
6
<PAGE>
The following pro forma consolidated income statement information for the
Company for the three months ended March 31, 1996 assumes the redemption (the
"Redemption") of the Company's 10.25% Senior Notes due 2004 (the "Senior Notes")
occurred on January 1, 1995. The information for the three months ended March
31, 1995 is presented as though the Merger and the Redemption had occurred on
January 1, 1995.
(In thousands , except
share amounts)
Three Month Period Ended
March 31,
1996 1995
------- -------
(Predecessor)
Total revenues ............................... $69,271 $73,617
Net income .......... ........................ $ 5,748 $ 450
Since all common shares of the Company are owned by Chartwell Re, net income per
common share is not considered meaningful and therefore not included.
NOTE 4 - SUBSEQUENT EVENT
Subsequent to March 31, 1996, the Company received an additional capital
contribution of $28.3 million from the proceeds of the Offering (See Note 2)
which it used to redeem 35% of its outstanding Senior Notes including the
redemption premium. At March 31, 1996, the principal amount to be redeemed was
included in accrued expenses and other liabilities.
7
<PAGE>
ITEM 2 - Management's Discussion and Analysis
CHARTWELL RE HOLDINGS CORPORATION AND SUBSIDIARIES
Management's Discussion and Analysis
of Financial Condition and Results of Operations
March 31, 1996
(Unaudited)
Overview
Chartwell Re Holdings Corporation (Chartwell or the "Company") is a
wholly-owned subsidiary of Chartwell Re Corporation (Chartwell Re). Chartwell
was formed in 1995 to act as an intermediate holding Company for Chartwell Re.
Chartwell began operations on December 31, 1995, and as such, the following
discussion and analysis compares the 1996 operations of Chartwell to the 1995
operations of Chartwell Re.
On December 13, 1995, Chartwell Re acquired The Reinsurance Corporation of
New York (RECO) as a result of the merger of RECO's former parent, Piedmont
Management Company Inc. (PMC), with and into Chartwell Re (the "Merger"), with
Chartwell Re as the surviving corporation. Since the Merger was completed in
December, the net income for 1995 does not include the operations of PMC or
RECO.
The condensed consolidated financial statements include the accounts of
Chartwell Re Holdings Corporation and its principal wholly-owned subsidiaries,
Chartwell Reinsurance Company (Chartwell Reinsurance), RECO, and Chartwell
Advisers Limited (Chartwell Advisers). Chartwell Reinsurance underwrites treaty
reinsurance through reinsurance intermediaries for both property and casualty
risks. RECO underwrites a book of select specialty property and casualty
insurance underwritten through program administrators. Chartwell Advisers acts
as the exclusive Lloyd's adviser to a non-affiliated company formed to
underwrite at Lloyd's of London (Lloyd's) through a group of wholly-owned
subsidiaries that are limited liability corporate members of certain select
Lloyd's syndicates.
Results of Operations - Three Months Ended March 31, 1996 Compared With Three
Months Ended March 31, 1995:
Revenues: Total revenues of $69.3 million for the first quarter 1996 were
$31.4 million, or 83% more than the first quarter 1995. The accompanying table
summarizes gross and net premiums written, earned premiums, net investment
income, net realized capital gains, service and other revenue and total revenues
for the quarters indicated:
8
<PAGE>
Quarter Ended March 31,
1996 1995
-------- -------
(in thousands)
Gross premiums written $68,564 $34,560
====== =======
Net premiums written $49,718 $33,396
======= =======
Earned premiums $56,243 $32,786
Net investment income 10,635 4,821
Net realized capital gains 921 67
Service and other revenue 1,472 260
------- -------
Total revenues $69,271 $37,934
======= =======
Gross premiums written for the first quarter 1996 were $68.6 million, an
increase of 98% compared to the first quarter 1995. The increase in gross
premiums written was principally attributable to business acquired in the
Merger. Such business consisted of: (a) a seasoned book of specialty insurance
business which is the basis for the Controlled Source Insurance business, the
Company's newest client segment; (b) a marine and aviation pool which is
included with Chartwell's other marine and aviation business in the Regional
Accounts client segment; (c) certain reinsurance contracts originally
underwritten by RECO, that are compatible with Chartwell's underwriting
standards and which were renewed and included primarily in Regional and
Specialty Accounts client segments; and (d) certain reinsurance contracts that
were not renewed because they did not meet Chartwell's underwriting standards
and which are classified below as "RECO Run-off." In addition, premiums in the
Regional Accounts client segment increased because of continuing increases in
its book of marine and aviation business. Specialty Accounts gross premiums
written for the first quarter of 1996 is only slightly less than the prior year
primarily due to a lag in reporting of premiums on new contracts. Chartwell
expects that gross premiums written in the Specialty Accounts segment for 1996
will exceed 1995 levels later in the year. Global Accounts continues to focus on
the international market place rather than the large domestic insurance market
place where competition continues to stiffen. The distribution of the Company's
gross premiums written among its underwriting client segments was as follows:
Quarter Ended March 31,
-------------------------------------------------------
(in thousands) 1996 1995
----------------------- ------------------------
Specialty $ 17,085 $ 17,270
Global 8,511 10,934
Regional:
Property & Casualty 11,164 4,543
Marine & Aviation 7,162 1,813
------ ------
Subtotal Regional 18,326 6,356
Controlled Source 17,177 -
RECO Run - off 7,465 -
$ 68,564 $ 34,560
======== ========
9
<PAGE>
Net premiums written for the first quarter 1996 were $49.7 million, an
increase of $16.3 million, or 49% compared to the first quarter 1995. The
increase in net premiums written was principally attributable to the reasons
described above for the increases in gross premiums written. Net premiums earned
for the first quarter 1996 were $56.2 million, an increase of $23.5 million, or
72% compared to the first quarter 1995. The increase in net premiums earned was
principally attributable to premium writings by RECO.
Net investment income for the first quarter 1996 was $10.6 million, an
increase of $5.8 million, or 121% over the first quarter 1995. The improvement
reflects the increase in invested assets, principally from the Merger. The
average annual tax equivalent yield on invested assets, before investment
expenses, increased to 6.66% for the first quarter 1996 compared to 6.61% for
the same period in 1995. Net realized capital gains were $.9 million in the
first quarter 1996 compared to only $67,000 for the same period in 1995. The
1996 net capital gains were realized principally to reposition certain sectors
of the portfolio and, in particular, to increase the amount of tax-advantaged
securities.
Service and other revenue for the first quarter 1996 was $1.5 million, an
increase of $1.2 million compared to the first quarter 1995. The improvement
reflects increases in both advisory fee revenues and equity in the earnings of
investee companies acquired in the Merger.
Underwriting Results: The Company's principal expense, loss and loss
adjustment expenses (LAE) related to the settlement of claims, was $40.9 million
in the first quarter 1996 compared to $24.1 million in the first quarter 1995.
The increase is principally attributable to the increase in earned premiums as
noted above. Net losses and LAE expressed as a percentage of net earned premiums
(the loss and LAE ratio) improved to 72.8% for the first quarter 1996 from 73.5%
recorded for the same period in 1995.
Policy acquisition costs, primarily commissions paid to ceding companies
and brokerage fees paid to intermediaries less commissions received on business
ceded to other reinsurers, were $14.2 million for the first quarter 1996
compared to $7.7 million in the first quarter 1995. Policy acquisition costs
expressed as a percentage of net earned premiums (the acquisition expense ratio)
increased to 25.2% from 23.4% in 1995. The increase is due both to the run-off
of RECO's cancelled reinsurance business and to a modestly higher commission
structure.
Other expenses, which include underwriting and administrative expenses,
were $4.4 million for the first quarter 1996 compared to $2.5 million in the
first quarter 1995. Other expenses expressed as a percentage of net earned
premiums increased to 7.2% from 6.8% in 1995 principally due to transition
expenses associated with the integration of RECO. Chartwell believes that these
transition expenses will decrease over the remaining three quarters of 1996. It
should be noted that the comparable ratio for the full year 1995 was 8.0%.
The combined ratio for the first quarter 1996 computed in accordance with
generally accepted accounting principle (GAAP) was 105.2% compared to 103.7% for
the first quarter 1995. Although the loss ratio component improved to 72.8% for
the first quarter 1996 from 73.5% recorded for the same period in 1995, the
expense ratio increased to 32.4% from 30.2% in 1995 for
10
<PAGE>
the reasons noted above. On a pro forma basis, as if the Merger occurred on
January 1, 1995, the expense ratio decreased to 32.4% compared to 36.5% and the
combined ratio decreased to 105.2% compared to 122.4% for the first quarter
1995.
Interest and amortization expenses were $2.3 million for the first quarter
1996 compared to $1.8 million in the first quarter 1995. In addition to interest
and amortization on Chartwell's 10.25% Senior Notes due 2004 (the"Senior Notes")
of $2.0 million for both periods, interest expense for 1996 also includes $0.3
million of interest on a $20.0 million bank facility established on the date of
Merger. Interest expense for 1995 was reduced by $0.2 million as a result of an
interest rate swap which was terminated in the second quarter 1995. Interest
expense in future periods will be reduced due to the redemption of 35% of the
principal amount of the Senior Notes on April 8, 1996.
Pre-tax income: For the first quarter 1996, pre-tax income was $7.4 million
compared with $1.9 million for the same period in 1995. The most significant
factor is the increase in net investment income as described above.
Taxes: Total taxes for the first quarter 1996 were $2.1 million compared to
$.6 million in the same period in 1995. The effective tax rates were 28.8% and
31.8% for the 1996 and 1995 periods respectively. The principal factor in the
decline below the statutory rate of 35% was the benefit of investments in
tax-advantaged securities which increased in the first quarter 1996.
Net income: For the first quarter 1996, net income was $5.3 million
compared to $1.3 million for the same period in 1995. The most significant
factor is increased net investment income as described above.
Liquidity and Capital Resources:
As a holding company, Chartwell's assets consist primarily of the stock of
its direct and indirect subsidiaries, Chartwell Reinsurance and RECO.
Chartwell's cash flow therefore depends largely on dividends and other payments
from Chartwell Reinsurance. Chartwell Reinsurance's sources of funds consist
primarily of net premiums, reinsurance recoveries, investment income and
proceeds from sales and redemptions of investments. Funds are applied primarily
to payments of claims, operating expenses and income taxes and to the purchase
of investments, largely fixed income securities. Cash and short-term investments
are maintained for the payment of claims and expenses. Chartwell Reinsurance's
ability to pay cash dividends to the Company is restricted by law or subject to
approval of the insurance regulatory authority of Minnesota, Chartwell
Reinsurance's state of domicile. The Minnesota authority recognizes only
statutory accounting practices for the ability of an insurer to pay dividends to
its shareholders.
Under the insurance laws of the State of Minnesota, payment of dividends by
Chartwell Reinsurance in any year is limited to the greater of (i) 10% of
capital and surplus as of the prior year end as determined in accordance with
statutory accounting policies; or (ii) statutory net income from
11
<PAGE>
operations of the next preceding year excluding realized capital gains.
Notwithstanding the foregoing, Chartwell Reinsurance may pay dividends only from
its earned surplus, also known as unassigned funds. The maximum dividend that
can be paid in 1996 without prior approval of the Minnesota Department of
Commerce is $18.8 million.
Financing activities have also been a source of liquidity for Chartwell Re
and its subsidiaries, and such undertakings continued during the first quarter
1996. On March 5, 1996, the Company's parent, Chartwell Re, completed a public
offering of 2,500,000 shares of common stock that raised $57.5 million ($53.7
million after underwriting discounts and expenses). Of the net proceeds, $20.0
million was contributed to the Company which used such funds to increase the
statutory surplus of Chartwell Reinsurance. Subsequent to the March 31, 1996,
the Company received an additional contribution of $28.3 million from the
proceeds of the Offering which it used to redeem 35% of its outstanding Senior
Notes including the redemption premium. This redemption will reduce Chartwell's
annual expense for interest and amortization of debt issuance costs under the
Senior Notes by $2.8 million per year. As a result of the offering, Standard &
Poor's improved its rating with respect to the Senior Notes to BBB- from BB and
Moody's improved its rating to Ba1 from Ba2.
At March 31, 1996, the carrying value of total investments, including cash
and cash equivalents, increased by $17.0 million, or 2.4%, to $719.1 compared to
$702.1 million at December 31, 1995. The primary reasons for the increase were
the net cash acquired in Chartwell Re's public offering and contributed to the
Company of $20.0 million, and cash flow from the settlement of certain December
31, 1995 securities sales of $10.8 million, offset in part by cash flow from
operations of $0.1 million and the decline in the market value of the investment
portfolio. At March 31, 1996, 96% of Chartwell's total investments (including
cash and cash equivalents) consisted of fixed income securities, of which 99%
were rated "A" or better (or "A-1" for commercial paper) by Moody's. The
Company's fixed income securities portfolio at March 31, 1996 was comprised
primarily of U.S. Treasury and government agency mortgage pass-through
securities, and corporate and municipal bonds.
The stockholders' equity of the Company increased 9.4% to $184.2 million at
March 31, 1996, compared to $168.4 million at December 31, 1995, primarily as a
result of the surplus contribution from Chartwell Re as a result of that
company's public common stock offering. The stockholders' equity of Chartwell Re
increased 32% to $201.5 million at March 31, 1996, compared to $152.5 million at
December 31, 1995 primarily as a result of the public common stock offering
described above. Chartwell Re's GAAP book value per share of $22.23 reported at
December 31, 1995 was decreased on a pro forma basis to $22.03 as a result of
the public offering of 2.5 million common shares in the first quarter. The
decrease to $21.53 at March 31, 1996 was attributable to the decline in the
market value of the Company's fixed income securities portfolio as a result of
the increase in market interest rates during this period, offset by first
quarter earnings. Chartwell's ratio of long-term debt to total capitalization
was reduced from 36.1% at December 31, 1995 to 27.2% as of March 31, 1996
including the effect of the partial redemption of Chartwell's Senior Notes that
occurred on April 8, 1996.
12
<PAGE>
Statutory surplus of Chartwell Reinsurance increased $27.3 million to
$215.3 million, and surplus of RECO increased $5.2 million to $80.8 million,
both compared to the amounts at December 31, 1995. Both Chartwell Reinsurance
and RECO, the Company's principal operating subsidiaries, are rated A-
(Excellent) by A.M. Best Company and are assigned an A- claims paying ability
rating by Standard & Poor's.
13
<PAGE>
CHARTWELL RE HOLDINGS CORPORATION AND SUBSIDIARIES
PART II OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
27 - Financial Data Schedule.
(b) Reports on Form 8-K
None.
14
<PAGE>
CHARTWELL RE HOLDINGS CORPORATION AND SUBSIDIARIES
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHARTWELL RE HOLDINGS CORPORATION
(Registrant)
/s/ Charles E. Meyers
--------------------------------------
Charles E. Meyers
Duly Authorized Officer, Senior Vice
President and Chief Financial Officer
Dated: May 14, 1996
15
<TABLE> <S> <C>
<ARTICLE> 7
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<DEBT-HELD-FOR-SALE> 602,770
<DEBT-CARRYING-VALUE> 30,412
<DEBT-MARKET-VALUE> 29,862
<EQUITIES> 31,111
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 664,293
<CASH> 54,810
<RECOVER-REINSURE> 16,085
<DEFERRED-ACQUISITION> 17,946
<TOTAL-ASSETS> 1,134,806
<POLICY-LOSSES> 740,089
<UNEARNED-PREMIUMS> 85,465
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 68,750
0
0
<COMMON> 0
<OTHER-SE> 184,150
<TOTAL-LIABILITY-AND-EQUITY> 1,134,806
56,243
<INVESTMENT-INCOME> 10,635
<INVESTMENT-GAINS> 921
<OTHER-INCOME> 1,472
<BENEFITS> 40,942
<UNDERWRITING-AMORTIZATION> 14,176
<UNDERWRITING-OTHER> 4,369
<INCOME-PRETAX> 7,437
<INCOME-TAX> 2,144
<INCOME-CONTINUING> 5,293
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,293
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
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