UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 5
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[ ] Check box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue.
[ ] Form 3 Holdings Reported
[ ] Form 4 Transactions Reported
1. Name and Address of Reporting Person(s)
BACHAND, CHARLES J.
22 HIGHFIELD ROAD
SKILLMAN, NJ 08558
2. Issuer Name and Ticker or Trading Symbol
Highlands Insurance Group, Inc. (HIC)
3. I.R.S. Identification Number of Reporting Person, if an entity (Voluntary)
4. Statement for Month/Year
12/99
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[ ] Director [ ] 10% Owner
[X] Officer (give title below) [ ] Other (specify below)
VICE PRESIDENT
& TREASURER
7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
Table I Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
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1)Title of Security 2)Trans- 3.Trans- 4.Securities Acquired(A) 5)Amount of 6) 7)Nature of
action action or Disposed of (D) Securities Indirect
Date Code A Beneficially D Beneficial
(Month/ or Owned at or Ownership
Day/Year) Code Amount D Price End of Year I
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C><C> <C> <C><C>
Common Stock 477.97 D Direct
<CAPTION>
Table II (PART 1) Derivative Securitites Acquired, Disposed of, or Beneficially Owned (Columns 1 through 6)
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1)Title of Derivative 2)Conversion 3)Trans- 4)Trans- 5)Number of Derivative 6)Date Exercisable and
Security or Exercise action action Securities Acquired (A) Expiration Date
Price of Date Code or Disposed of (D)
Derivative
Security Code A D Exercisable Expiration
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
10% Convertible Subordinated $16.16 01/23/97 12/31/05
Debenture
10% Convertible Subordinated $16.16 01/23/97 12/31/05
Debenture, Series 2
Common Stock Subscription $14.69 01/23/96 12/31/05
Warrant, Series A
Common Stock Subscription $14.69 01/23/96 12/31/05
Warrant, Series A-2
Common Stock Subscription $14.69
Warrant, Series B
Common Stock Subscription $14.69
Warrant, Series B-2
Incentive Stock Option (right $9.50 09/10/99 J 1,000.00 09/10/00 09/10/09
to buy)
Incentive Stock Option (right $12.81 02/16/00 02/16/09
to buy)
Non-Qualified Stock Option $14.69 01/11/97 01/11/06
(right to buy)
<CAPTION>
Table II (PART 2) Derivative Securitites Acquired, Disposed of, or Beneficially Owned (Columns 1,3 and 7 through 11)
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1)Title of Derivative 3)Trans- 7)Title and Amount 8)Price 9)Number of 10) 11)Nature of
Security action of Underlying of Deri- Derivative Indirect
Date Securities vative Securities D Beneficial
Amount or Security Beneficially or Ownership
Number of Owned at I
- Title Shares End of Year
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
10% Convertible Subordinated Common Stock 11,757.00 11,757.00 D Direct
Debenture
10% Convertible Subordinated Common Stock 11,757.00 11,757.00 D Direct
Debenture, Series 2
Common Stock Subscription Common Stock 12,003.00 12,003.00 D Direct
Warrant, Series A
Common Stock Subscription Common Stock 12,003.00 12,003.00 D Direct
Warrant, Series A-2
Common Stock Subscription Common Stock 3,159.00 3,159.00 D Direct
Warrant, Series B
Common Stock Subscription Common Stock 3,159.00 3,159.00 D Direct
Warrant, Series B-2
Incentive Stock Option (right 09/10/99 Common Stock 1,000.00 1,000.00 D Direct
to buy)
Incentive Stock Option (right Common Stock 5,000.00 5,000.00 D Direct
to buy)
Non-Qualified Stock Option Common Stock 20,000.00 20,000.00 D Direct
(right to buy)
<FN>
Explanation of Responses:
- -
Form 5 filed to report 1,000 Incentive Stock Options granted on 9/10/99 that were not reported on a Form 4 in 1999
</FN>
</TABLE>
SIGNATURE OF REPORTING PERSON
/S/ BACHAND, CHARLES J.
DATE
