As filed with the Securities and Exchange Commission on June 7, 1996
Registration No. 333-
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
------------------
CapMAC Holdings Inc.
(Exact name of Registrant as specified in its charter)
Delaware 13-3670828
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
885 Third Avenue, 14th Floor
New York, New York 10022
(Address, including zip code, of Registrant's principal executive office)
Employee Stock Option Plan of CapMAC Acquisition Corp.
and Subsidiaries
1994 Stock Option Plan of CapMAC Holdings Inc. and Subsidiaries
CapMAC Holdings Inc. 1995 Omnibus Stock Incentive Plan
(Full title of the Plan)
-------------------------------
Ram D. Wertheim, Esq.
Managing Director, General Counsel and Secretary
CapMAC Holdings Inc.
885 Third Avenue, 14th Floor
New York, New York 10022
(212) 755-1155
(Name, address, including zip code, and telephone number, including
area code, of Registrant's agent for service)
Copies to:
Wilson S. Neely, Esq.
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, New York 10017-3954
(212) 455-2000
-------------------------------
Approximate date of commencement of proposed sale to the public:
From time to time after the effective date of this Registration Statement.
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
==============================================================================================================
Proposed Proposed
Amount to Maximum Maximum
be Offering Price Aggregate Amount of
Title of Securities to be Registered Registered Per Share Offering Price Registration Fee
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock, $.01 par value per share(a) 15,000 $ 14.67(d) $ 220,000(d) $ 76(d)
- --------------------------------------------------------------------------------------------------------------
Common Stock, $.01 par value per share(a) 1,705,211 $ 13.33(d) $22,730,463(d) $ 7,839(d)
- --------------------------------------------------------------------------------------------------------------
Common Stock, $.01 par value per share(b) 195,000 $ 20.00(d) $ 3,900,000(d) $ 1,345(d)
- --------------------------------------------------------------------------------------------------------------
Common Stock, $.01 par value per share(c) 198,000 $ 20.00(d) $ 3,960,000(d) $ 1,366(d)
- --------------------------------------------------------------------------------------------------------------
Common Stock, $.01 par value per share(c) 195,000 $ 24.50(d) $ 4,777,500(d) $ 1,648(d)
- --------------------------------------------------------------------------------------------------------------
Common Stock, $.01 par value per share(c) 429,367 $27.563(e) $11,834,643(e) $ 4,081(e)
- --------------------------------------------------------------------------------------------------------------
Total $16,355
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(a) Represents Common Stock issuable under the Employee Stock Option Plan of
CapMAC Acquisition Corp. (renamed CapMAC Holdings Inc.) and Subsidiaries.
Excludes 4,789 shares which will not be issued.
(b) Represents Common Stock issuable under the 1994 Stock Option Plan of CapMAC
Holdings Inc. and Subsidiaries.
(c) Represents Common Stock issuable under the CapMAC Holdings Inc. 1995
Omnibus Stock Incentive Plan. Excludes 182,633 shares of restricted stock
previously issued.
(d) Pursuant to Rule 457(h) under the Securities Act of 1933, as amended (the
"Act"), the proposed maximum offering price per share, the proposed maximum
aggregate offering price and the amount of registration fee have been
computed on the basis of the price at which the options may be exercised.
(e) Pursuant to Rule 457(h) under the Act the proposed maximum offering price
per share, the proposed maximum aggregate offering price and the amount of
registration fee have been computed on the basis of the average of the high
and low prices per share of Common Stock on the New York Stock Exchange on
June 3, 1996.
================================================================================
<PAGE>
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference
The following documents, previously filed by CapMAC Holdings Inc. (the
"Company" or the "Registrant") with the Securities and Exchange Commission (the
"Commission") pursuant to the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), are hereby incorporated by reference in this Registration
Statement:
(a) Annual Report on Form 10-K for the fiscal year ended December 31,
1995;
(b) Quarterly Report on Form 10-Q for the quarter ended March 31, 1996;
and
(c) The description of the Company's Common Stock set forth in its
Registration Statement on Form 8-A, dated November 16, 1995.
All documents filed by the Company pursuant to Section 13(a), 13(c), 14 and
15(d) of the Exchange Act after the date of this Registration Statement and
prior to the filing of a post-effective amendment to this Registration Statement
indicating that all securities offered have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by
reference into this Registration Statement and to be part hereof from the date
of filing of such documents. Any statement contained in a document incorporated
or deemed to be incorporated by reference herein shall be deemed to be modified
or superseded for purposes of this Registration Statement to the extent that a
statement contained herein or in any subsequently filed document which also is
or is deemed to be incorporated by reference herein modifies or supersedes such
statement. Any such statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this Registration
Statement.
Item 4. Description of Securities
Not required.
Item 5. Interests of Named Experts and Counsel
None.
Item 6. Indemnification of Directors and Officers
Reference is made to Section 102(b)(7) of the Delaware General Corporation
Law (the "DGCL"), which enables a corporation in its original certificate of
incorporation or an amendment thereto to eliminate or limit the personal
liability of a director for violations of the director's fiduciary duty, except
(i) for any breach of the director's duty of loyalty to the corporation or its
stockholders, (ii) for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law, (iii) pursuant to Section
174 of the DGCL (providing for liability of directors for unlawful payment of
dividends or unlawful stock purchases or redemptions) or (iv) for any
transaction from which a director derived an improper personal benefit. The
Registrant's Amended and Restated Certificate of Incorporation limits the
liability of directors to the extent permitted by Section 102(b)(7) of the DGCL.
Under the Amended and Restated Certificate of Incorporation of the
Registrant and under its Amended and Restated Bylaws, the Registrant shall have
the power to indemnify its officers, directors, employees and agents to the full
extent permitted by the laws of the State of Delaware.
The Registrant maintains insurance, at its expense, to protect any director
or officer of the Registrant against certain expenses, liabilities or losses.
Item 7. Exemption from Registration Claimed
Not applicable
II-1
<PAGE>
Item 8. Exhibits
The following exhibits are filed as part of this Registration Statement:
4.1 Amended and Restated Certificate of Incorporation of Company (filed as
Exhibit 3.1 to the Company's Annual Report on Form 10-K, Commission File
No. 1-14096, and incorporated herein by reference).
4.2 Amended and Restated Bylaws of the Company (filed as Exhibit 3.2 to the
Company's Annual Report on Form 10-K, Commission File No. 1-14096, and
incorporated herein by reference).
5.1 Opinion of Simpson Thacher & Bartlett (a partnership which includes
professional corporations) regarding the legality of the common stock being
registered.
23.1 Consent of KPMG Peat Marwick LLP.
23.2 Consent of Simpson Thacher & Bartlett (included in their opinion filed as
Exhibit 5.1 hereto).
24.1 Power of Attorney (included in Part II of this Registration Statement).
28.1 Information from reports furnished to state insurance regulatory
authorities.
Item 9. Undertakings
The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement;
(i) to include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933, as amended;
(ii) to reflect in the prospectus any facts or events arising after the
effective date of this Registration Statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in this Registration Statement
(except to the extent the information required to be included by clauses (i) or
(ii) is contained in periodic reports filed by the Company pursuant to Section
13 or 15(d) of the Exchange Act that are incorporated by reference into this
Registration Statement); and
(iii) to include any material information with respect to the plan of
distribution not previously disclosed in this Registration Statement or any
material change to such information in this Registration Statement.
(2) That, for the purposes of determining any liability under the Act, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination of the
offering.
(4) That, for purposes of determining any liability under the Act, each filing
of the Registrant's annual report pursuant to Section 13(a) or 15(d) of the
Exchange Act that is incorporated by reference in this Registration Statement
shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
(5) Insofar as indemnification for liabilities arising under the Act may be
permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other
II-2
<PAGE>
than the payment by the Registrant of expenses incurred or paid by a director,
officer or controlling person of the Registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the Registrant will,
unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Act, the Registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of New
York, State of New York, on this 6th day of June, 1996.
CapMAC Holdings Inc.
By /s/ John B. Caouette
----------------------------------
John B. Caouette
Chairman of the Board of Directors,
President and Chief Executive Officer
POWER OF ATTORNEY
We, the undersigned officers and directors of CapMAC Holdings Inc. and each
of us, do hereby constitute and appoint each and any of John B. Caouette, Ram D.
Wertheim and Paul V. Palmer, our true and lawful attorney and agent, with full
power of substitution and resubstitution, to do any and all acts and things in
our name and behalf in any and all capacities and to execute any and all
instruments for us in our names in any and all capacities, which attorney and
agent may deem necessary or advisable to enable said corporation to comply with
the Securities Act of 1933, as amended, and any rules, regulations, and
requirements of the Securities and Exchange Commission, in connection with this
Registration Statement, including specifically, but without limitation, power
and authority to sign for us or any of us in our names in the capacities
indicated below, any and all amendments (including post-effective amendments)
hereto; and we do hereby ratify and confirm all that said attorney and agent, or
his substitute, shall do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.
Signature Title Date
--------- ----- ----
/s/ John B. Caouette Chairman of the Board of Directors, June 6, 1996
- -------------------------- President and Chief Executive Officer
John B. Caouette (Principal Executive Officer)
/s/ Paul V. Palmer Managing Director and Chief Financial June 6, 1996
- -------------------------- Officer (Principal Financial Officer)
Paul V. Palmer
/s/ Gerard Edward Murray Controller (Principal Accounting June 6, 1996
- -------------------------- Officer)
Gerard Edward Murray
II-4
<PAGE>
/s/ Bryan A.Bowers Director May 28, 1996
- --------------------------
Bryan A. Bowers
/s/ Todd G. Cole Director May 30, 1996
- --------------------------
Todd G. Cole
/s/ Charles P. Durkin, Jr. Director May 30, 1996
- --------------------------
Charles P. Durkin, Jr.
/s/ David Elliman Director May 29, 1996
- --------------------------
David Elliman
/s/ Stephen L. Green Director May 29, 1996
- --------------------------
Stephen L. Green
- -------------------------- Director May __, 1996
Michael S. Horgan
/s/ George Merritt Jenkins Director May 30, 1996
- --------------------------
George Merritt Jenkins
/s/ James H. Laird Director May 29, 1996
- --------------------------
James H. Laird
/s/ Dr. Rosita Leong, M.D. Director May 30, 1996
- --------------------------
Dr. Rosita Leong, M.D.
/s/ Robert Model Director May 29, 1996
- --------------------------
Robert Model
/s/ Leif H. Olsen Director May 30, 1996
- --------------------------
Leif H. Olsen
/s/ Arthur S. Penn Director May 29, 1996
- --------------------------
Arthur S. Penn
/s/ Homer Mck. Rees Director May 25, 1996
- --------------------------
Homer Mck. Rees
II-5
<PAGE>
- -------------------------- Director May __, 1996
D.W. Russler
/s/ Akira Seko Director May 28, 1996
- --------------------------
Akira Seko
/s/ John T. Shea Director May 24, 1996
- --------------------------
John T. Shea
/s/ Richard Yancey Director May 30, 1996
- --------------------------
Richard Yancey
II-6
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Description
4.1 Amended and Restated Certificate of Incorporation
of Company (filed as Exhibit 3.1 to the Company's
Annual Report on Form 10-K, Commission File No.
1-14096, and incorporated herein by reference).
4.2 Amended and Restated Bylaws of the Company (filed
as Exhibit 3.2 to the Company's Annual Report on
Form 10-K, Commission File No. 1-14096, and
incorporated herein by reference).
5.1 Opinion of Simpson Thacher & Bartlett (a
partnership which includes professional
corporations) regarding the legality of the common
stock being registered.
23.1 Consent of KPMG Peat Marwick LLP.
23.2 Consent of Simpson Thacher & Bartlett (included in
their opinion filed as Exhibit 5.1 hereto).
24.1 Power of Attorney (included in Part II of this
Registration Statement).
28.1 Information from reports furnished to state
insurance regulatory authorities.
II-7
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, New York 10017
June 7, 1996
CapMAC Holdings Inc.
885 Third Avenue, 14th Floor
New York, New York 10022
Ladies and Gentlemen:
We are acting as counsel to CapMAC Holdings, Inc., a Delaware corporation
(the "Company"), in connection with the registration under the Securities Act of
1933, as amended (the "Act"), pursuant to a registration statement on Form S-8
(the "Registration Statement") of (i) 822,367 shares Common Stock, par value
$.01 per share (the "Common Stock"), of the Company issuable under the CapMAC
Holdings Inc. 1995 Omnibus Stock Incentive Plan (the "Omnibus Plan"), (ii)
195,000 shares of Common Stock of the Company issuable under the 1994 Stock
Option Plan of CapMAC Holdings Inc. and Subsidiaries (the "1994 Plan") and (iii)
1,720,211 shares of Common Stock of the Company issuable under the Employee
Stock Option Plan of CapMAC Acquisition Corp. and Subsidiaries (the "1992 Plan",
together with the Omnibus Plan and 1994 Plan, the "Plans"; such 2,737,578 shares
issuable under the Plans being referred to as the "Issuable Shares").
<PAGE>
CapMAC Holdings Inc. -2- June 7, 1996
In rendering this opinion, we have examined (i) the Registration Statement;
(ii) the Omnibus Plan; (iii) the 1994 Plan and (iv) the 1992 Plan. In addition,
we have examined, and have relied as to matters of fact upon, originals or
copies, certified or otherwise identified to our satisfaction, of such corporate
records, agreements, documents and other instruments and such certificates or
comparable documents of public officials and of officers and representatives of
the Company, and have made such other and further investigations, as we have
deemed relevant and necessary as a basis for the opinions hereinafter set forth.
In such examination, we have assumed the genuineness of all signatures, the
legal capacity of natural persons, the authenticity of all documents submitted
to us as originals, the conformity to original documents of all documents
submitted to us as certified or photostatic copies, and the authenticity of the
originals of such latter documents.
Based upon the foregoing, and subject to the qualifications and limitations
stated herein, we are of the opinion that the Issuable Shares that are being
registered pursuant to the Registration Statement have been duly authorized and
upon their issuance and delivery in accordance with the Plans, the Issuable
Shares will be validly issued, fully paid and nonassessable.
We are members of the Bar of the State of New York, and we do not express
any opinion herein concerning any law other than the law of the State of New
York, the federal law of the United States and the Delaware General Corporation
Law.
<PAGE>
CapMAC Holdings Inc. -3- June 7, 1996
This opinion letter is rendered to you in connection with the above
described transactions. We hereby consent to the filing of this opinion with the
Securities and Exchange Commission as an exhibit to the Registration Statement.
Except as stated herein, this opinion letter may not be relied upon by you for
any other purpose, or relied upon by, or furnished to, any other person, firm or
corporation without our prior written consent.
Very truly yours,
/s/ Simpson Thacher & Bartlett
SIMPSON THACHER & BARTLETT
Consent of Independent Certified Public Accountants
The Board of Directors
CapMAC Holdings Inc.:
We consent to the use of our reports incorporated by reference in Form S-8 for
CapMAC Holdings Inc. with respect to the Employee Stock Option Plan of CapMAC
Acquisition Corp. and Subsidiaries, the 1994 Stock Option Plan of CapMAC
Holdings Inc. and Subsidiaries and the CapMAC Holdings Inc. 1995 Omnibus Stock
Incentive Plan.
Our reports dated January 31, 1996 refer to the Company's adoption at December
31, 1993 of Financial Accounting Standards Board's Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments in Debt and
Equity Securities".
KPMG Peat Marwick LLP
New York, New York
June 7, 1996
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES
Notes to Schedule P
(1) The Parts of Schedule P:
Part 1 - detailed information on losses and loss expenses.
Part 2 - history of incurred losses and allocated expenses.
Part 3 - history of loss and allocated expense payments.
Part 4 - history of bulk and incurred-but-not reported reserves.
Part 5 - history of claims.
Part 6 - history of premiums earned.
Part 7 - history of loss sensitive contracts.
Schedule P Interrogatories
(2) Lines of business A through M, R, and S are groupings of the lines of
business used on the state page.
(3) Reinsurance A, B, C, and D (lines N to Q) are:
Reinsurance A = nonproportional property (1988 and subsequent)
Reinsurance B = nonproportional liability (1988 and subsequent)
Reinsurance C = financial lines (1988 and subsequent)
Reinsurance D = old Schedule O line 30 (1987 and prior)
SCHEDULE P - PART 1 - SUMMARY
($000 omitted)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Premiums Earned Loss and Loss Expense Payments
1 -------------------------------------------------------------------------------------------------------- 12
Years 2 3 4 Loss Payments Allocated Loss 9 10 11
in Which Expense Payments Number of
Premiums Were ------------------- ------------------ Salvage Unallocated Total Claims
Earned and Direct Net 5 6 7 8 and Loss Net Paid Reported -
Losses Were and Ceded (2 -3) Direct Direct Subrogation Expense (5 - 6 + 7 Direct and
Incurred Assumed and Assumed Ceded and Assumed Ceded Received Payments - 8 + 10) Assumed
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior XXX XXX XXX XXX
2. 1986 XXX
3. 1987 XXX
4. 1988 5,184 166 5,018 XXX
5. 1989 19,310 896 18,414 XXX
6. 1990 48,130 30,230 17,900 XXX
7. 1991 32,714 8,538 24,176 XXX
8. 1992 32,930 8,488 24,442 XXX
9. 1993 41,390 6,778 34,612 XXX
10. 1994 57,150 15,352 41,798 XXX
11. 1995 36,105 10,646 25,459 1,378 1,378 681 681 XXX
- ------------------------------------------------------------------------------------------------------------------------------------
12. Totals XXX XXX XXX 1,378 1,378 681 681 XXX
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
----------------------------------------------------------------------- 21 22 23 24
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
----------------------------------------------------------------------- Number of
13 14 15 16 17 18 19 20 Salvage Unallocated Total Claims
Direct Direct Direct Direct and Loss Net Losses Outstanding
and and and and Subrogation Expenses and Expenses Direct
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded Anticipated Unpaid Unpaid and Assumed
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior XXX
2. 1986 XXX
3. 1987 XXX
4. 1988 XXX
5. 1989 XXX
6. 1990 XXX
7. 1991 XXX
8. 1992 XXX
9. 1993 XXX
10. 1994 XXX
11. 1995 571 571 118 118 XXX
- ------------------------------------------------------------------------------------------------------------------------------------
12. Totals 571 571 118 118 XXX
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time Net Balance Sheet Reserves
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money 33 After Discount
------------------------------------------------------------------------------ Inter-Company ---------------------------
25 26 27 28 29 30 31 32 Pooling 34 35
Direct Direct Loss Participation Losses Loss Expenses
and Assumed Ceded Net and Assumed Ceded Net Loss Expense Percentage Unpaid Unpaid
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1. Prior XXX XXX XXX XXX XXX XXX XXX
2. 1986
3. 1987
4. 1988
5. 1989
6. 1990
7. 1991
8. 1992
9. 1993
10. 1994
11. 1995 2,748 2,748 7.6 25.8
- ------------------------------------------------------------------------------------------------------------------------------------
12. Totals XXX XXX XXX XXX XXX XXX XXX
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
74
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
SCHEDULE P - PART 2 - SUMMARY
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
1 Incurred Losses and Allocated Expenses Reported At Year End ($000 omitted) Development
Years in Which ----------------------------------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7 8 9 10 11 12 13
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 One Year Two Year
- --------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior
2. 1986
3. 1987 XXX
4. 1988 XXX XXX
5. 1989 XXX XXX XXX
6. 1990 XXX XXX XXX XXX NONE
7. 1991 XXX XXX XXX XXX
8. 1992 XXX XXX XXX XXX
9. 1993 XXX XXX XXX XXX XXX XXX XXX
10. 1994 XXX XXX XXX XXX XXX XXX XXX XXX XXX
11. 1995 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
- --------------------------------------------------------------------------------------------------------------------
12. Totals
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3 - SUMMARY
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
12 13
1 Cumulative Paid Losses and Allocated Expenses At Year End ($000 omitted) Number of Number of
Years in Which --------------------------------------------------------------------------- Claims Claims
Losses Were 2 3 4 5 6 7 8 9 10 11 Closed With Closed With
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Loss Without Loss
Payment Payment
- -----------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior 000 XXX XXX
2. 1986 XXX XXX
3. 1987 XXX XXX XXX
4. 1988 XXX XXX XXX XXX
5. 1989 XXX XXX XXX XXX XXX
6. 1990 XXX XXX XXX XXX NONE XXX XXX
7. 1991 XXX XXX XXX XXX XXX XXX
8. 1992 XXX XXX XXX XXX XXX XXX
9. 1993 XXX XXX XXX XXX XXX XXX XXX XXX XXX
10. 1994 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
11. 1995 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4 - SUMMARY
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
1 Bulk and Incurred But Not Reported Reserves on Losses and Allocated Expenses at Year End ($000 omitted)
Years in Which -------------------------------------------------------------------------------------------------------
Losses Were 2 3 4 5 6 7 8 9 10 11
Incurred 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
- ----------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior
2. 1986
3. 1987 XXX
4. 1988 XXX XXX
5. 1989 XXX XXX XXX
6. 1990 XXX XXX XXX NONE
7. 1991 XXX XXX XXX
8. 1992 XXX XXX XXX XXX
9. 1993 XXX XXX XXX XXX XXX XXX XXX
10. 1994 XXX XXX XXX XXX XXX XXX XXX XXX
11. 1995 XXX XXX XXX XXX XXX XXX XXX XXX XXX
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
75
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
NONE
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
NONE
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
NONE
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
NONE
SCHEDULE P - PART 1E - COMMERCIAL MULTIPLE PERIL
NONE
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
NONE
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE
NONE
SCHEDULE P - PART 1G - SPECIAL LIABILITY
NONE
- --------------------------------------------------------------------------------
76, 77, 78, 79, 80, 81, 82, 83
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
NONE
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE
NONE
SCHEDULE P - PART 1I - SPECIAL PROPERTY
NONE
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
NONE
SCHEDULE P - PART 1K - FIDELITY/SURETY
NONE
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
NONE
SCHEDULE P - PART 1M - INTERNATIONAL
NONE
- --------------------------------------------------------------------------------
84, 85, 86, 87, 88, 89, 90
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 1N - REINSURANCE A
NONE
SCHEDULE P - PART 1O - REINSURANCE B
NONE
SCHEDULE P - PART 1P - REINSURANCE C
NONE
SCHEDULE P - PART 1Q - REINSURANCE D
NONE
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
NONE
SCHEDULE P - PART 1R - SECTION 2- PRODUCTS LIABILITY - CLAIMS-MADE
NONE
- --------------------------------------------------------------------------------
91, 92, 93, 94, 95, 96
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
<TABLE>
<CAPTION>
($000 omitted)
- ------------------------------------------------------------------------------------------------------------------------------------
Premiums Earned Loss and Loss Expense Payments
1 -------------------------------------------------------------------------------------------------------- 12
Years 2 3 4 Loss Payments Allocated Loss 9 10 11
in Which Expense Payments Number of
Premiums Were ------------------- ------------------ Salvage Unallocated Total Claims
Earned and Direct Net 5 6 7 8 and Loss Net Paid Reported -
Losses Were and Ceded (2 -3) Direct Direct Subrogation Expense (5 - 6 + 7 Direct and
Incurred Assumed and Assumed Ceded and Assumed Ceded Received Payments - 8 + 10) Assumed
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior XXX XXX XXX XXX
2. 1994 28,575 7,676 20,899 XXX
3. 1995 36,105 10,646 25,459 1,378 1,378 681 681 XXX
- ------------------------------------------------------------------------------------------------------------------------------------
4. Totals XXX XXX XXX 1,378 1,378 681 681 XXX
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Losses Unpaid Allocated Loss Expenses Unpaid
----------------------------------------------------------------------- 21 22 23 24
Case Basis Bulk + IBNR Case Basis Bulk + IBNR
----------------------------------------------------------------------- Number of
13 14 15 16 17 18 19 20 Salvage Unallocated Total Claims
Direct Direct Direct Direct and Loss Net Losses Outstanding-
and and and and Subrogation Expenses and Expenses Direct
Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded Anticipated Unpaid Unpaid and Assumed
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior
2. 1994
3. 1995 571 571 118 118
- ------------------------------------------------------------------------------------------------------------------------------------
12. Totals 571 571 118 118
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Total Losses and Loss and Loss Expense Percentage Discount for Time Net Balance Sheet Reserves
Loss Expenses Incurred (Incurred/Premiums Earned) Value of Money 33 After Discount
------------------------------------------------------------------------------ Inter-Company ---------------------------
25 26 27 28 29 30 31 32 Pooling 34 35
Direct Direct Loss Participation Losses Loss Expenses
and Assumed Ceded Net and Assumed Ceded Net Loss Expense Percentage Unpaid Unpaid
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
1. Prior XXX XXX XXX XXX XXX XXX XXX
2. 1994
3. 1995 2,748 2,748 7.6 25.8
- ------------------------------------------------------------------------------------------------------------------------------------
12. Totals XXX XXX XXX XXX XXX XXX XXX
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
97
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 2A THRU 2S - ALL SECTIONS
NONE
- --------------------------------------------------------------------------------
98, 99, 100, 101, 102
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 3A THRU 3S - ALL SECTIONS
NONE
- --------------------------------------------------------------------------------
103, 104, 105, 106, 107
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 4A THRU 4S - ALL SECTIONS
NONE
- --------------------------------------------------------------------------------
108, 109, 110, 111, 112
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 5A THRU 5R - ALL SECTIONS
NONE
- --------------------------------------------------------------------------------
113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 6C THRU 6R - ALL SECTIONS
NONE
- --------------------------------------------------------------------------------
124, 125, 126, 127, 128
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE P - PART 7A AND 7B - ALL SECTIONS
NONE
- --------------------------------------------------------------------------------
129, 130, 131, 132
<PAGE>
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE CAPITAL MARKETS ASSURANCE CORPORATION
SCHEDULE P INTERROGATORIES
- --------------------------------------------------------------------------------
1. Computation of excess statutory reserves over statement reserves.
a. Auto Liability (private passenger and commercial)
1995 (60.0%) 1994 (60.0%) 1993 (60.0%)
------------- ------------- -------------
Total _______________
b. Other Liability and Products Liability
1995 (60.0%) 1994 (60.0%) 1993 (60.0%)
------------- ------------- -------------
Total _______________
c. Medical Malpractice
1995 (60.0%) 1994 (60.0%) 1993 (60.0%)
------------- ------------- -------------
Total _______________
d. Workers' Compensation
1995 (65.0%) 1994 (65.0%) 1993 (65.0%)
------------- ------------- -------------
Total _______________
e. Credit Total _______________
f. All Lines Total (Report here and Page 3) Total _______________
2. What is the extended loss and expense reserve - direct and assumed - for
the following classes? An example of an extended loss and expense reserve
is the actuarial reserve for the free-tail coverage arising upon death,
disability or retirement in most medical malpractice policies. Such a
liability is to be reported here even if it was not reported elsewhere in
Schedule P, but otherwise reported as a liability line on page 3. Show the
full reserve amount, not just the change during the current year.
---------------------------------------------------------------------------
Year in which premiums 1 2 3
were earned and losses Medical Other Products
were incurred Malpractice Liability Liability
---------------------------------------------------------------------------
a. 1987
b. 1988
c. 1989
d. 1990
e. 1991
f. 1992
g. 1993
h. 1994
i. 1995
---------------------------------------------------------------------------
j. Totals
---------------------------------------------------------------------------
3. The term "Loss expense" includes all payments for legal expenses, including
attorney's and witness fees and court costs, salaries and expenses of
investigators, adjustors and field men, rents, stationery, telegraph and
telephone charges, postage, salaries and expenses of office employees, home
office expenses and all other payments under or on account of such
injuries, whether the payments are allocated to specific claims or are
unallocated. Are they so reported in this statement?
Answer: Yes [X] No [ ]
4. The unallocated loss expense payments during the most recent calendar year
should be distributed to the various years in which losses were incurred as
follows: (1) 45% to the most recent year, (2) 5% to the next most recent
year, and (3) the balance to all years, including the most recent, in
proportion to the amount of loss payments paid for each year during the
most recent calendar year. If the distribution in (1) or (2) produces an
accumulated distribution to such year in excess of 10% of the premiums
earned for such year, disregarding all distributions made under (3), such
accumulated distribution should be limited to 10% of premiums earned and
the balance distributed in accordance with (3). Are they so reported in
this Statement? Answer: Yes [X] No [ ]
5. Do any lines in Schedule P include reserves which are reported gross of any
discount to present value of future payments, but are reported net of such
discounts on page 11? Answer: Yes [ ] No [X]
If yes, proper reporting must be made in the Notes to Financial Statements,
as specified in the Instructions. Also, the discounts must be reported in
Schedule P - Part 1, Columns 31 and 32.
Schedule P must be completed gross of non-tabular discounting. Work papers
relating to discount calculations must be available for examination upon
request.
Discounting is allowed only if expressly permitted by the state insurance
department to which this Annual Statement is being filed.
6. What were the net premiums in force at the end of the year for:
(in thousands of dollars)
a. Fidelity $0
b. Surety $0
7. Claim count information is reported (check one)
If not all the same in all years, explain in Question 8.
a. per claim X
b. per claimant ___
8. The information provided in Schedule P will be used by many persons to
estimate the adequacy of the current loss and expense reserves, among other
things. Are there any especially significant events, coverage, retention or
accounting changes which have occurred which must be considered when making
such analyses? (An extended statement may be attached.)
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133
