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← HILLS INSURANCE COMPANY INC

Form 990 for tax year 2023

Filed by HILLS INSURANCE COMPANY INC.

Totals

Total revenue
$16,532,712
Total expenses
$9,121,031
Contributions and grants received
$0
Grants paid
$0
Program service revenue
$17,067,948
Investment income
-$535,236
Other revenue
$0
Total assets, end of year
$235,145,789
Total liabilities, end of year
$137,369,126
Net assets or fund balances, end of year
$97,776,663
Program services expenses (Part IX)
$8,208,528
Management and general expenses
$912,503
Fundraising expenses
$0
Program service expenses (Part III)
$8,208,528

Program services were 90.0% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Revenue

Part VIII, the statement of revenue.

  • 2a · Program service revenue: PREMIUMS WRITTEN

    total $23,227,948 · related or exempt $23,227,948

  • 2b · Program service revenue: PREPAID REINSURANCE

    total -$6,160,000 · related or exempt -$6,160,000

  • 3 · Investment income

    total $4,217,910 · unrelated business $92 · excluded $4,217,818

  • 4 · Income from investment of tax-exempt bond proceeds

    total $0

  • 5 · Royalties

    total $0

  • 6c · Rental income or loss

    real property $0 · personal property $0

  • 6d · Net rental income or loss

    total $0

  • 7a · Gross sales of assets other than inventory

    securities $119,729,908

  • 7b · Less cost or other basis and sales expenses

    securities $124,483,054

  • 7c · Gain or loss

    securities -$4,753,146

  • 7d · Net gain or loss

    total -$4,753,146 · excluded -$4,753,146

  • 8a · Fundraising events: gross income

    $0

  • 8b · Fundraising events: direct expenses

    $0

  • 8c · Net income from fundraising events

    total $0

  • 9a · Gaming: gross income

    $0

  • 9b · Gaming: direct expenses

    $0

  • 9c · Net income from gaming

    total $0

  • 10a · Gross sales of inventory

    $0

  • 10b · Cost of goods sold

    $0

  • 10c · Net income from sales of inventory

    total $0

  • 11e · Other revenue, total

    $0

Functional expenses

Part IX, the statement of functional expenses.

  • 1 · Grants to domestic organizations and governments

    total $0

  • 2 · Grants to domestic individuals

    total $0

  • 3 · Grants to foreign organizations and individuals

    total $0

  • 4 · Benefits paid to or for members

    total $0

  • 5 · Compensation of officers, directors and key employees

    total $0

  • 6 · Compensation of disqualified persons

    total $0

  • 7 · Other salaries and wages

    total $0

  • 8 · Pension plan contributions

    total $0

  • 9 · Other employee benefits

    total $0

  • 10 · Payroll taxes

    total $0

  • 11a · Fees: management

    total $59,933 · management and general $59,933

  • 11b · Fees: legal

    total $6,100 · management and general $6,100

  • 11c · Fees: accounting

    total $172,960 · management and general $172,960

  • 11d · Fees: lobbying

    total $0

  • 11e · Fees: professional fundraising services

    total $0

  • 11f · Fees: investment management

    total $654,418 · management and general $654,418

  • 11g · Fees: other

    total $19,092 · management and general $19,092

  • 12 · Advertising and promotion

    total $0

  • 13 · Office expenses

    total $0

  • 14 · Information technology

    total $0

  • 15 · Royalties

    total $0

  • 16 · Occupancy

    total $0

  • 17 · Travel

    total $0

  • 18 · Travel or entertainment for public officials

    total $0

  • 19 · Conferences, conventions and meetings

    total $0

  • 20 · Interest

    total $0

  • 21 · Payments to affiliates

    total $0

  • 22 · Depreciation, depletion and amortization

    total $0

  • 23 · Insurance

    total $0

  • 24a · Other expenses: LOSS ADJUSTMENT

    total $8,110,317 · program services $8,110,317

  • 24b · Other expenses: POLICY ACQUISITION

    total $85,200 · program services $85,200

  • 24c · Other expenses: RISK MANAGEMENT

    total $12,243 · program services $12,243

  • 24d · Other expenses: MISCELLANEOUS

    total $768 · program services $768 · management and general $0 · fundraising $0

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $0 · end of year $0

  • 2 · Savings and temporary cash investments

    beginning of year $27,705,572 · end of year $28,046,701

  • 3 · Pledges and grants receivable

    beginning of year $0 · end of year $0

  • 4 · Accounts receivable

    beginning of year $21,640,279 · end of year $20,359,079

  • 5 · Loans and receivables from officers and key people

    beginning of year $0 · end of year $0

  • 6 · Loans and receivables from disqualified persons

    beginning of year $0 · end of year $0

  • 7 · Other notes and loans receivable

    beginning of year $0 · end of year $0

  • 8 · Inventories for sale or use

    beginning of year $0 · end of year $0

  • 9 · Prepaid expenses and deferred charges

    beginning of year $0 · end of year $0

  • 10c · Land, buildings and equipment, net

    beginning of year $0 · end of year $0

  • 11 · Investments: publicly traded securities

    beginning of year $127,714,185 · end of year $144,079,090

  • 12 · Investments: other securities

    beginning of year $26,989,817 · end of year $40,911,233

  • 13 · Investments: program-related

    beginning of year $0 · end of year $0

  • 14 · Intangible assets

    beginning of year $0 · end of year $0

  • 15 · Other assets

    beginning of year $5,879,520 · end of year $1,749,686

  • 17 · Accounts payable and accrued expenses

    beginning of year $570,201 · end of year $300,467

  • 18 · Grants payable

    beginning of year $0 · end of year $0

  • 19 · Deferred revenue

    beginning of year $0 · end of year $0

  • 20 · Tax-exempt bond liabilities

    beginning of year $0 · end of year $0

  • 21 · Escrow or custodial account liability

    beginning of year $0 · end of year $0

  • 22 · Loans and payables to officers and key people

    beginning of year $0 · end of year $0

  • 23 · Secured mortgages and notes payable

    beginning of year $0 · end of year $0

  • 24 · Unsecured notes and loans payable

    beginning of year $0 · end of year $0

  • 25 · Other liabilities

    beginning of year $146,315,326 · end of year $137,068,659

  • 27 · Net assets without donor restrictions

    beginning of year $63,043,846 · end of year $97,776,663

  • 28 · Net assets with donor restrictions

    beginning of year $0 · end of year $0

Mission and programs · 2023

Mission

ORGANIZED AND OPERATED AS A CAPTIVE INSURANCE COMPANY TO ISSUE POLICIES OF PROFESSIONAL AND GENERAL LIABILITY AND OTHER PROPERTY AND CASUALTY INSURANCES TO FRANCISCAN ALLIANCE, INC. AND AFFILIATES.

Activities or mission (Part I)

PROVIDING SELF-INSURANCE TO HOSPITALS OWNED AND/OR CONTROLLED BY ITS MEMBER, FRANCISCAN ALLIANCE, INC.

  • FRANCISCAN ALLIANCE, INC. IS A NOT-FOR-PROFIT CORPORATION WHICH PROVIDES HEALTH CARE AND RELATED SERVICES TO THE COMMUNITIES IN WHICH IT OPERATES. THE SPONSORSHIP OF FRANCISCAN ALLIANCE, INC. IS UNDER THE GOVERNANCE OF THE SISTERS OF ST. FRANCIS OF PERPETUAL ADORATION. HOSPITALS OWNED AND/OR CONTROLLED BY FRANCISCAN ALLIANCE, INC. ARE NOT-FOR-PROFIT HEALTH CARE PROVIDERS ESTABLISHED TO MEET THE HEALTH CARE NEEDS OF AREA RESIDENTS. THE HILLS INSURANCE COMPANY, INC. IS A WHOLLY-OWNED SUBSIDIARY OF FRANCISCAN ALLIANCE, INC. FORMED TO PROVIDE SELF-INSURANCE FOR FRANCISCAN ALLIANCE, INC. IN THIS REGARD, THE HILLS INSURANCE COMPANY, INC. PROVIDES PROFESSIONAL AND GENERAL LIABILITY INSURANCE COVERAGES TO ITS MEMBER, FRANCISCAN ALLIANCE, INC., AND THE HOSPITALS OWNED AND/OR CONTROLLED BY FRANCISCAN ALLIANCE, INC.

    Expenses $8,208,528 · Revenue $17,067,948

As filed on the 2023 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • KEVIN D LEAHY

    DIRECTOR/PRESIDENT/CHAIR

    Total calculated
    $2,665,008
    From this org
    $0
    From related orgs
    $2,467,456
    Other
    $197,552
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $2,383,652 related
    Bonus
    $0
    Other
    $0 + $83,804 related
    Deferred
    $0 + $182,568 related
    Nontaxable benefits
    $0 + $14,984 related
    Filer's total
    $0 + $2,665,008 related

  • DANIEL CONNER

    VICE PRESIDENT (UNTIL 01/23)

    Total calculated
    $288,208
    From this org
    $0
    From related orgs
    $238,104
    Other
    $50,104
    Hours/week
    1 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $231,883 related
    Bonus
    $0
    Other
    $0 + $6,221 related
    Deferred
    $0 + $27,607 related
    Nontaxable benefits
    $0 + $22,497 related
    Filer's total
    $0 + $288,208 related

  • CHASE KUNKEL

    ADMIN DIRECTOR (01/23 - 09/23)

    Total calculated
    $206,544
    From this org
    $0
    From related orgs
    $174,115
    Other
    $32,429
    Hours/week
    1 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $173,979 related
    Bonus
    $0
    Other
    $0 + $136 related
    Deferred
    $0 + $11,737 related
    Nontaxable benefits
    $0 + $20,692 related
    Filer's total
    $0 + $206,544 related

  • JOSEPH INWALD

    VICE PRESIDENT (09/23 - 10/23)

    Total calculated
    $94,091
    From this org
    $0
    From related orgs
    $91,594
    Other
    $2,497
    Hours/week
    1 + 40 related

  • MICHAEL NORTH

    INTERIM VP (AS OF 10/23)

    Total calculated
    $87,771
    From this org
    $0
    From related orgs
    $87,771
    Other
    $0
    Hours/week
    1 + 40 related

  • SISTER M ANN KATHLEEN MAGIERA

    DIRECTOR, TREASURER

    Total calculated
    $0
    Hours/week
    1 + 54 related

  • RUSSELL A YOUNG

    DIRECTOR, ASSISTANT SECRETARY

    Total calculated
    $0
    Hours/week
    1

  • SISTER LETHIA MARIE LEVEILLE

    DIRECTOR, SECRETARY

    Total calculated
    $0
    Hours/week
    1 + 54 related

  • SISTER JANE MARIE KLEIN

    DIRECTOR

    Total calculated
    $0
    Hours/week
    1 + 59 related

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead, and on a Form 990-PF Part VIII's — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Answered yes

None.

Answered no

  • 4a · Severance or change-of-control payment
  • 4b · Supplemental nonqualified retirement plan
  • 4c · Equity-based compensation arrangement
  • 5a · Pay contingent on this organization's revenues
  • 5b · Pay contingent on a related organization's revenues
  • 6a · Pay contingent on this organization's net earnings
  • 6b · Pay contingent on a related organization's net earnings
  • 7 · Other non-fixed payments
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

SCHEDULE J, PART I, LINE 3
HILLS INSURANCE COMPANY, INC. DOES NOT COMPENSATE ITS PRESIDENT.

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

No itemized grants to organizations on this return.

Related organizations on this return

Schedule R Part II: tax-exempt organizations related to the filer by control. It does not record shared board members or money.

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

Provenance

Return type
form_990
Tax year
2023
Filed
15 November 2024
IRS schema version
2023v5.1
Source object
202433209349321958

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