TWGP » Topics » Liquidity

These excerpts taken from the TWGP 10-K filed Mar 16, 2009.
Liquidity
 
We maintain sufficient liquidity to pay claims, operating expenses and meet our other obligations. We held $136.3 million and $77.7 million of cash and cash equivalents at December 31, 2008 and 2007, respectively. We monitor our expected claims payment needs and maintain a sufficient portion of our invested assets in cash and cash equivalents to enable us to fund our claims payments without having to sell longer-duration investments. Cash and cash equivalents at December 31, 2008 include $16.0 million of premiums collected through TRM on behalf of CPIC. These funds will be paid to CPIC within 30 days from December 31, 2008. As of December 31, 2008, cash and cash equivalents were approximately equal to the estimated $102.2 million of net loss reserves as of that date that we expect to pay within the next year. As necessary, we adjust our


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holdings of short-term investments and cash and cash equivalents to provide sufficient liquidity to respond to changes in the anticipated pattern of claims payments. See “Business—Investments.”
 
Liquidity


 



We maintain sufficient liquidity to pay claims, operating
expenses and meet our other obligations. We held
$136.3 million and $77.7 million of cash and cash
equivalents at December 31, 2008 and 2007, respectively. We
monitor our expected claims payment needs and maintain a
sufficient portion of our invested assets in cash and cash
equivalents to enable us to fund our claims payments without
having to sell longer-duration investments. Cash and cash
equivalents at December 31, 2008 include $16.0 million
of premiums collected through TRM on behalf of CPIC. These funds
will be paid to CPIC within 30 days from December 31,
2008. As of December 31, 2008, cash and cash equivalents
were approximately equal to the estimated $102.2 million of
net loss reserves as of that date that we expect to pay within
the next year. As necessary, we adjust our





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holdings of short-term investments and cash and cash equivalents
to provide sufficient liquidity to respond to changes in the
anticipated pattern of claims payments. See
“Business—Investments.”


 




These excerpts taken from the TWGP 10-K filed Mar 14, 2008.
Liquidity
 
We maintain sufficient liquidity to pay claims, operating expenses and meet our other obligations. We held $77.7 million and $100.6 million of cash and cash equivalents at December 31, 2007 and 2006, respectively, which included $19.2 million and $20.0 million, respectively, of securities with an original maturity of less than ninety days that were recorded as cash equivalents on the balance sheet. We monitor our expected claims payment needs and maintain a sufficient portion of our invested assets in cash and cash equivalents to enable us to fund our claims payments without having to sell longer-duration investments. Cash and cash equivalents at December 31, 2007 includes $16 million of premiums collected through TRM on behalf of CPIC. These funds will be paid to CPIC within 90 days from December 31, 2007. As of December 31, 2007, cash and cash equivalents were approximately equal to the estimated $85.4 million of net loss reserves as of that date that we expect to pay within the next year. As necessary, we adjust our holdings of short-term investments and cash and cash equivalents to provide sufficient liquidity to respond to changes in the anticipated pattern of claims payments. See “Business — Investments.”
 
Liquidity


 



We maintain sufficient liquidity to pay claims, operating
expenses and meet our other obligations. We held
$77.7 million and $100.6 million of cash and cash
equivalents at December 31, 2007 and 2006, respectively,
which included $19.2 million and $20.0 million,
respectively, of securities with an original maturity of less
than ninety days that were recorded as cash equivalents on the
balance sheet. We monitor our expected claims payment needs and
maintain a sufficient portion of our invested assets in cash and
cash equivalents to enable us to fund our claims payments
without having to sell longer-duration investments. Cash and
cash equivalents at December 31, 2007 includes
$16 million of premiums collected through TRM on behalf of
CPIC. These funds will be paid to CPIC within 90 days from
December 31, 2007. As of December 31, 2007, cash and
cash equivalents were approximately equal to the estimated
$85.4 million of net loss reserves as of that date that we
expect to pay within the next year. As necessary, we adjust our
holdings of short-term investments and cash and cash equivalents
to provide sufficient liquidity to respond to changes in the
anticipated pattern of claims payments. See
“Business — Investments.”


 




This excerpt taken from the TWGP 10-K filed Mar 8, 2007.

Liquidity

We maintain sufficient liquidity to pay claims, operating expenses and meet our other obligations. We held $100.6 million and $38.8 million of cash and cash equivalents at December 31, 2006 and 2005, respectively, which included $20.0 and $26.1 million, respectively, which were of short-term duration of less than ninety days and were recorded as cash equivalents on the balance sheet. We monitor our expected claims payment needs and maintain a sufficient portion of our invested assets in cash and cash equivalents to enable us to fund our claims payments without having to sell longer-duration investments. As of December 31, 2006, cash and cash equivalents greatly exceeded the estimated $45.2 million of net loss reserves as of that date that we expected to pay within the next year. The $61.8 million increase in cash and cash equivalents as of December 31, 2006 compared to December 31, 2005 was due to the relatively flat yield curve and management’s decision to invest new funds short term and not taking on additional interest rate risk associated with longer term investments as well as the $39.6 million of new cash from the perpetual preferred stock offering. These funds will be reinvested longer term by our investment manager as we see advantages in the fixed maturity market. As necessary, we adjust our holdings of short-term

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investments and cash and cash equivalents to provide sufficient liquidity to respond to changes in the anticipated pattern of claims payments. See “Item 1.—Investments.”

On January 26, 2007 we closed on our sale of 2,704,000 shares of common stock at an offering price of $31.25 per share. Our gross proceeds of $84.5 million were reduced by $4.2 million for the underwriters discount and $1.0 million for other offering expenses which left us approximately $79.3 million of new proceeds. We used $20.0 million of these net proceeds to redeem our remaining $20.0 million of perpetual preferred stock. As of January 26, 2007 all of our perpetual preferred stock was fully redeemed.

On February 5, 2007 the underwriters exercised their 340,600 shares of common stock available under their 30-day over-allotment option at the offering price of $31.25 per shares. We received gross proceeds of $10.6 million from this over-allotment option and net proceeds of $10.1 million after the underwriting discount. The exercise of the over-allotment option brings our aggregate net proceeds from the offering and follow-on offering, after underwriting discounts, commissions and expenses, to approximately $89.4 million.

This excerpt taken from the TWGP 10-K filed Mar 15, 2006.

Liquidity

We maintain sufficient liquidity to pay claims, operating expenses and meet our other obligations. We held $38.8 million and $55.23 million of cash and cash equivalents at December 31, 2005 and 2004, respectively, which included $26.1 and $34.9 million, respectively, which were of short-term duration of less than ninety days and were recorded as cash equivalents on the balance sheet. We monitor our expected claims payment needs and maintain a sufficient portion of our invested assets in cash and cash equivalents to enable us to fund our claims payments without having to sell longer-duration investments. As of

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December 31, 2005, cash and cash equivalents greatly exceeded the estimated $24.7 million of net loss reserves as of that date that we expected to pay within the next year. As necessary, we adjust our holdings of short-term investments and cash and cash equivalents to provide sufficient liquidity to respond to changes in the anticipated pattern of claims payments. See “Item 1.—Investments”.

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