UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
< X > Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996
Commission File Number: 0-2616
CONSUMERS FINANCIAL CORPORATION
1200 CAMP HILL BY-PASS
CAMP HILL, PA 17011
PENNSYLVANIA 23-1666392
(State or other jurisdiction of (I.R.S.
Employer
incorporation or organization) Identification
No.)
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
filing such requirements for the past 90 days.
Yes XX No
Indicate the number of shares outstanding of each of the issuer s classes
of common stock, as of the latest practicable date.
Outstanding at
Class of Common Stock July 31, 1996
$.01 Stated Value 2,612,394 shares
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
INDEX
Page
Part 1. Financial Information Number
Item 1. Financial Statements:
Consolidated Balance Sheets - 3
June 30, 1996 and December 31, 1995
Consolidated Statements of Operations - 4-5
Six and Three Months ended June 30, 1996 and 1995
Consolidated Statements of Cash Flows - 6
Six Months Ended June 30, 1996 and 1995
Notes to Consolidated Financial Statements 7-9
Item 2. Management s Discussion and Analysis of Results of 10-13
Operations and Financial Condition
Part 2. Other Information
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION> June 30, 1996 December 31, 1995
(in thousands) (Unaudited)
<S> <C> <C>
Assets
Investments:
Fixed maturities $35,822 $35,048
Mortgage loans on real estate 3,536 7,041
Investment real estate 1,020
Policy loans 482 482
Other invested assets 2,461 2,512
Short-term investments 3,648 2,892
Total investments 45,949 48,995
Cash 532 451
Accrued investment income 668 653
Receivables 23,836 23,820
Prepaid reinsurance premiums 18,759 18,604
Deferred policy acquisition costs 21,571 21,926
Property and equipment 3,965 4,118
Other real estate 3,134 2,645
Other assets 2,373 2,110
$120,787 $123,322
Liabilities, Redeemable Preferred Stock and
Shareholders Equity
Liabilities:
Future policy benefits $36,235 $36,582
Unearned premiums 58,349 57,943
Other policy claims and benefits payable 2,584 2,851
Other liablities 5,979 6,259
Income taxes:
Current 534 299
Deferred 1,113 1,180
Notes payable 2,207 2,537
107,001 107,651
Redeemable preferred stock:
Series A, 8 1/2% cumulative convertible,
net of treasury stock 4,675 4,657
Shareholders equity:
Common Stock 30 30
Capital in excess of stated value 8,016 8,016
Net unrealized appreciation (depreciation)
of debt and equity securities (261) 705
Retained earnings 2,798 3,688
Treasury stock (1,472) (1,425)
9,111 11,014
$120,787 $123,322
</TABLE> CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION> Six Months Ended Three Months Ended
(in thousands, except per share data) June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Premiums written and policy charges $18,504 $19,917 $9,886 $10,555
Increase in unearned premiums (407) (1,201) (889) (1,193)
Gross premium income and policy charges 18,097 18,716 8,997 9,362
Less reinsurance ceded (7,832) (7,934) (3,768) (3,890)
Net premium income and policy charges 10,265 10,782 5,229 5,472
Net investment income 1,325 1,473 666 720
Net realized investment losses (22) (23) (22) 2
Fees and other income 2,399 2,378 1,157 1,353
13,967 14,610 7,030 7,547
Benefits and expenses:
Death and other benefits 4,259 4,720 2,203 2,681
Increase in future policy benefits 1,264 951 496 212
Amortization of deferred policy
acquisition costs 5,267 5,314 2,655 2,685
Operating expenses 3,779 4,079 1,740 2,009
14,569 15,064 7,094 7,587
Loss before income taxes (602) (454) (64) (40)<PAGE>
Income taxes 65 32 179 51
Net loss ($667) ($486) ($243) ($91)
</TABLE>
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
(Unaudited)
<TABLE>
<CAPTION> Six Months Ended Three Months Ended
(in thousands, except per share data) June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Per share data:
Net loss ($0.34) ($0.27) ($0.14) ($0.08)
Weighted average number of shares
outstanding 2,615 2,662 2,613 2,631
Loss per common share - assuming full dilution * * * *
* Anti-dilutive
Cash dividends declared per common share None $0.05 None None
</TABLE>
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>(in thousands) 1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net loss ($667) ($486)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Deferred policy acquisition costs incurred (4,912) (5,559)
Amortization of deferred policy acquisition costs 5,267 5,314
Other amortization and depreciation 231 269
Change in future policy benefits 511 753
Change in unearned premiums 406 1,201
Amounts due reinsurers 183 65
Income taxes 220 (47)
Change in accounts receivable 83 (501)
Change in other liabilities (317) (65)
Other (676) (126)
Total adjustments 996 1,304
Net cash provided by operating activities 329 818
Cash flows from investing activities:
Purchase of investments (4,677) (5,062)
Maturity of investments 3,816 5,438
Sale of investments 2,067 841
Purchase of property and equipment (14) (108)
Net cash provided by investing activities 1,192 1,109
Cash flows from financing activities:
Principal payments on debt (330) (442)
Receipts from universal life and investment products 2,598 2,929
Withdrawals on universal life and investment products (3,456) (4,020)
Purchase of treasury stock (47) (203)
Cash dividends to shareholders (205) (205)
Net cash used in financing activities (1,440) (1,941)
Net increase (decrease) in cash 81 (14)
Cash at beginning of period 451 1,254
Cash at end of period $532 $1,240
</TABLE>
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1. General:
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting only of normal
recurring items) necessary to present fairly the Company's consolidated
financial position as of June 30, 1996, the consolidated results of its
operations for the six months ended June 30, 1996 and 1995 and the
consolidated changes in its cash flows for the six months ended June 30,
1996 and 1995. Certain prior year amounts have been reclassified to conform
with classifications used for 1995. Such reclassifications had no impact on
operating results.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. These financial statements
should be read in conjunction with the financial statements and notes
thereto included in the Company's 1995 Form 10-K.
The results of operations for the six months ended June 30, 1996 are not
necessarily indicative of the results to be expected for the full year.
2. Income Taxes:
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes.
Significant components of the Company's deferred tax liabilities and assets
are as follows (in 000's):
TABLE
<PAGE>
<CAPTION> June 30, December 31,
1996 1995
<S> <C> <C>
Deferred tax liabilities:
Fixed maturities $347
Deferred policy acquisition costs $7,280 7,426
Other 415 437
7,695 8,210
Deferred tax assets:
Fixed maturities 90
Future policy benefits and financial reinsurance 5,944 5,827
Net operating loss carryforwards 1,589 2,143
Other 273 284
7,896 8,254
Valuation allowance for deferred tax assets (1,314) (1,224)
6,582 7,030
Net deferred tax liability $1,113 $1,180
</TABLE>
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
2. Income Taxes (continued):
Significant components of the provision for income taxes are as follows (in
000's):
<TABLE>
<CAPTION> Six Months Three Months
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Current:
Federal ($299) $6 ($296) $5
State 85 55 47 14
Total current (214) 61 (249) 19
Deferred 279 (29) 428 32
Income taxes $65 $32 $179 $51
</TABLE>
The reconciliation of the provision for income taxes and the amount which
would have been provided at statutory rates is as follows (in 000's):
<TABLE>
<CAPTION> 1996 1995
<S> <C> <C>
Loss before income taxes ($602) ($454)
Income tax benefit at 34% statutory rate on
pre-tax loss ($205) ($154)
Special life insurance company deductions 3 31
Adjustments of prior years income tax expense 56
Dividends received deduction (5) (7)
Effect of rate difference on net operating
loss carryback 217
State income taxes 56 36
Items not includable for tax purposes 43 5
Other, net (44) 65
Actual income tax expense $65 $32
</TABLE> CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
3. Contingencies:
Reinsured risks would give rise to liability to the insurance subsidiaries
only in the event that the reinsuring company might be unable to meet its
obligations under the reinsurance agreements in force.
The lawsuit filed in an Alabama state court in 1994 against the Company
alleging breach of contract and fraud in the sale of credit life insurance
has been settled by the parties for a nominal amount.
4. Reinsurance:
The effect of reinsurance on premiums written and earned for the periods
ended June 30, 1996 and 1995 was as follows:
<TABLE>
<CAPTION> 1996 1995
(in 000's) Written Earned Written Earned
<S> <C> <C> <C> <C>
Direct $17,286 $16,913 $18,287 $17,078
Assumed 1,217 1,184 1,630 1,638
Ceded (7,987) (7,832) (7,885) (7,934)
Net $10,516 $10,265 $12,032 $10,782
</TABLE>
Ceded benefits incurred through June 30, 1996 and 1995 are $5,507,541 and
$5,051,494, respectively. These losses were deducted in arriving at death
and other benefits and the increase in future policy benefits in the
Consolidated Statements of Operations.
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition
OVERVIEW
The Company's second quarter net loss was $243,000 ($.14 per share) compared to
a $91,000 loss ($.08 per share) in the second quarter of 1995. On a year-to-
date basis, the 1996 operating loss totaled $667,000 ($.34 per share) compared
to a loss of $486,000 ($.27 per share) reported in the first half of 1995.
Second quarter pre-tax results in 1996 were about level with those in 1995 and
were greatly improved over the first quarter of 1996 due to lower credit
insurance claims. However, income tax expense increased in the second quarter
and for the year as a result of the Company s decision to carry back its 1995
life insurance company operating loss to 1993 rather than carrying the loss
over to future years as had previously been anticipated. The tax benefit from
the carryback was about $217,000 less than previously recognized using the
carryforward assumption.
Because of the recurring losses in its core credit insurance business, the
Company announced in March 1996 that it had retained a financial advisor to
assist management in evaluating various alternatives for preserving shareholder
value. The alternatives being considered include the sale of the insurance
operations (either the existing business and the marketing organization or only
the marketing organization), the sale of the auto auction business, the sale of
the entire Company or a combination of the Company with another organization.
The Company's management and its Board of Directors are now completing their
review of the final offers which have been received. While there can be no
assurance that any of these transactions can be completed in 1996, the Company
believes it is reasonably possible that one of the alternatives outlined above
will be consummated in 1996.
The table below compares revenues and operating results in 1996 with those in
1995.<TABLE>
<CAPTION> Six Months Second Quarter
(in thousands, except per share amounts) 1996 1995 1996 1995
<S> <C> <C> <C> <C>
Total revenues by source:
Premiums written and policy charges $18,504 $19,917 $9,886 $10,555
Net investment income 1,325 1,473 666 720
Realized investment gains (losses) (22) (23) (22) 2
Fees and other income 2,399 2,378 1,157 1,353
$22,206 $23,745 $11,687 $12,630
Pre-tax income (loss):
Automotive Resource Division ($812) ($575) ($97) ($229)
Individual Life Insurance Division 57 (70) (27) 33
Auto Auction Division 436 390 227 254
Other (261) (176) (145) (100)
(580) (431) (42) (42)
Realized investment gains (losses) (22) (23) (22) 2
Pre-tax loss (602) (454) (64) (40)
Income taxes 65 32 179 51
Net loss ($667) ($486) ($243) ($91)
Net loss per share ($0.34) ($0.27) ($0.14) ($0.08)
RESULTS OF OPERATIONS
A discussion of the most significant factors which affected the 1996 operating
results in each of the Company's three Divisions is presented below.
Information relating to 1995 is also presented for comparative purposes.
Automotive Resource Division
Credit insurance premium revenues in the second quarter decreased by 2.5% to
$8.8 million from $9.1 million in 1995. For the year, total premiums have
declined 4.2% from $16.9 million last year to $16.2 million in 1996. However,
the Company's cancellation, during the past twelve months, of all accounts in
two unprofitable states has resulted in a $945,000 decline in premium revenues.
Premiums from continuing and new accounts have therefore increased by about
$236,000 in the first half of 1996.
The Division's credit insurance premium production remains significantly below
pre-1990 levels due to the declines which occurred during the economic
recession of the early 1990's. A consequence of the reduction in written
premiums has been a decline in earned premiums, which in turn has resulted in a
substantial increase in operating expense ratios since 1989. Higher expense
ratios have been a key reason for the unprofitable operating results the
Division has experienced in recent years.
The Division's pre-tax operating results in the second quarter improved
significantly compared to both the first quarter of 1996 and the second quarter
of 1995. The Division reported a pre-tax loss of $97,000 in the second quarter
compared to a $229,000 loss in the same period in 1995 and a $715,000 loss in
the first quarter of this year. Significant cost reductions implemented over
the past year and a slightly better claims ratio are responsible for the
improvement over the second quarter of 1995. A<PAGE>
substantial reduction in claims
from the first quarter, which generally occurs each year in the second quarter,
and lower general expenses account for the improved results compared to the
first quarter of the year.
Individual Life Insurance Division
Since the end of 1994, the operations of this Division have been limited to one
closed block of assumed universal life business. Higher than normal death
claims in 1995 resulted in a $70,000 loss in this Division in the first six
months of 1995. A significant reduction in claims during the first half of
1996 has produced a $127,000 improvement and a $57,000 pre-tax profit. The
Company has had ongoing discussions with the direct writer of the UL business
concerning the recapture of this block of business, but the parties have not
yet agreed to the terms of any recapture.
Auto Auction Division
Fee revenues from the Auto Auction Division increased 4% in the first half of
1996 despite a 4.4% decline in the volume of vehicles sold through the Auction.
Fee revenues were $1.5 million in 1996 compared to $1.4 million in the same
period last year. Approximately 9,400 vehicles (58% of those registered) were
sold in 1996 while over 9,800 vehicles (also 58% of vehicles registered) were
sold in the first half of 1995.
Pre-tax profits from the Auction also increased from $390,000 last year to
$436,000. However, the 1996 profit includes $63,000 which represents excess
insurance proceeds which were not accrued in the 1995 financial statements.
These insurance funds relate to a fire which occurred at the Auction in
February 1995.
FINANCIAL CONDITION
</TABLE>
<TABLE>
<CAPTION>(in thousands, except per share June 30, December 31,
amounts) 1996 1995
<S> <C> <C>
Invested assets $45,949 $48,995
Total assets $120,787 $123,322
Total debt $2,207 $2,537
Total shareholders' equity and redeemable
preferred stock $13,786 $15,671
Debt as a percent of total capital 13.9% 13.9%
Shareholders' equity per common share $3.49 $4.20
</TABLE>
Invested Assets
Invested assets at June 30, 1996 declined by $3 million in the first half of
the year to $45.9 million. A portion of the decrease is attributable to the
reclassification of $1 million of investment real estate which is now being
held for sale. The decline in the asset base is also due in part to a $1.3
million reduction in the carrying value of the Company's bond portfolio as a
result of rising interest rates during the first half of 1996. At June 30,
the market value of the portfolio was $266,000 less than its amortized cost.
The remainder of the decline in investments resulted from slightly reduced
cash flows.
During the first six months of 1996, the Company s investment in mortgage
loans has decreased from $7 million to $3.5 million primarily as a result
of the early payoff of a $1.4 million loan and the sale to a local lending
institution of seven mortgages with loan balances totalling $2 million. The
proceeds from these transactions were reinvested in bonds.
Liquidity
The Company's operating subsidiaries have historically met most of their cash
requirements from funds generated from operations, although reduced credit
insurance revenues over the past several years have had an adverse impact on
the insurance companies' operating cash flows. The Company has generally
relied on its operating subsidiaries to provide it with sufficient cash funds
to maintain an adequate liquidity position. In that regard, the life insurance
subsidiaries are also subject to restrictions imposed by law on their ability
to transfer cash to the Company in the form of dividends, loans or advances.
Interstate Auto Auction and Consumers Car Care Corporation provide the Company
with sources of cash which are not subject to insurance regulations that
restrict their ability to transfer cash. The net cash provided by or used
in operating activities for the six months ended June 30, 1996 and 1995 is
presented in the Consolidated Statements of Cash Flows.
Capital Resources
The Company's total equity, which includes redeemable preferred stock,
decreased by $1.9 million during the first half of 1996. The decrease is
primarily attributable to (1) the decline in the carrying value of the bond
portfolio ($1.3 million less $347,000 in applicable income taxes), (2) the
current year operating loss of $667,000 and (3) $205,000 in dividends to
preferred shareholders.
The Company s bank debt continued to decline as a result of $165,000 in
principlal payments made during the second quarter. The June 30, 1996 balance
on the loans, which mature in January 1997, is $2.2 million.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Except for the matters discussed in Note 3 to the Notes to
Consolidated Financial Statements included elsewhere in this
Form 10-Q, neither the registrant nor its subsidiaries are involved
in any pending legal proceedings other than routine litigation
incidental to the normal conduct of its business nor have any such
proceedings been terminated during the three months ended June 30,
1996.
Item 2. Changes in Securities
During the three months ended June 30, 1996, there have been no
limitations or qualifications, through charter documents, loan
agreements or otherwise, placed upon the holders of the registrant's
common or preferred stock to receive dividends.
Item 3. Defaults upon Senior Securities
The registrant has not defaulted in the payment of principal, interest
or in any other manner on any indebtedness and is current with all its
accounts; however, the registrant was in violation of two provisions
ofits loan agreements at June 30, 1996. These violations have been
waived by the lender. There is no arrearage in the payment of
dividends on the registrant's preferred stock.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of the stockholders of the
registrant during the three months ended June 30, 1996.
Item 5. Other Information<PAGE>
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits required to be filed by Item 601 of Regulation S-K:
(11) Computation of Earnings per Common Share.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the three months
ended June 30, 1996.
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.
CONSUMERS FINANCIAL CORPORATION
Registrant
Date August 14, 1996 By /S/ James C. Robertson
James C. Robertson, President
(Chief Executive Officer)
Date August 14, 1996 By /S/ R. Fredric Zullinger
R. Fredric Zullinger
Senior Vice President, Chief Financial Officer
and Treasurer
EXHIBIT 11
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION> Six Months Ended June 30, Three Months Ended June 30,
(in thousands, except per share amounts) 1996 1995 1996 1995
<S> <C> <C> <C> <C>
Primary Earnings Per Share
Reconciliation of net loss per Statements of
Operations to amount used in primary
earnings per share computation:
Net loss ($667) ($486) ($243) ($91)
Preferred dividend requirement (205) (204) (102) (102)
Accretion in carrying value of preferred stock (18) (18) (9) (9)
Net loss, as adjusted ($890) ($708) ($354) ($202)
Reconciliation of weighted average number of shares
outstanding to amount used in primary earnings per
share computation:
Weighted average number of common shares
outstanding 2,615 2,662 2,613 2,631
Add weighted average number of shares issuable
from assumed exercise of stock options 0 0 0 0
Weighted average number of shares of common
stock and equivalents outstanding 2,615 2,662 2,613 2,631
Net loss per common and common equivalent share ($0.34) ($0.27) ($0.14) ($0.08)
</TABLE>
EXHIBIT 11
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION> Six Months Ended June 30, Three Months Ended June 30,
(in thousands, except per share amounts) 1996 1995 1996 1995
<S> <C> <C> <C> <C>
Fully Diluted Earnings Per Share
Reconciliation of net loss per Statements of
Operations to amount used in fully diluted
earnings per share computation:
Net loss ($667) ($486) ($243) ($91)
Reconciliation of weighted average number of shares
outstanding, as adjusted, per primary computation
on preceding page, to amount used in fully diluted
earnings per share computation:
Weighted average number of shares outstanding,
as adjusted per primary computation on
preceding page 2,615 2,662 2,613 2,631
Add shares issuable from assumed conversion
8 1/2 % cumulative convertible preferred stock 713 713 713 713
Weighted average number of shares of common
stock and equivalents outstanding 3,328 3,375 3,326 3,344
Fully diluted earnings per share * * * *
* Anti-dilutive
</TABLE
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 7
<S> <C> <C> <C> <C>
<C>
<PERIOD-TYPE> 3-MOS 3-MOS 6-MOS 6-MOS
12-MOS
<FISCAL-YEAR-END> JUN-30-1996 JUN-30-1995 JUN-30-1996 JUN-30-1995
DEC-31-1995
<PERIOD-END> JUN-30-1996 JUN-30-1995 JUN-30-1996 JUN-30-1995
DEC-31-1995
<DEBT-HELD-FOR-SALE> 0 0 35,821,854 0
35,048,212
<DEBT-CARRYING-VALUE> 0 0 0 0
0
<DEBT-MARKET-VALUE> 0 0 0 0
0
<EQUITIES> 0 0 0 0
0
<MORTGAGE> 0 0 3,535,409 0
7,041,033
<REAL-ESTATE> 0 0 0 0
1,020,158
<TOTAL-INVEST> 0 0 45,948,697 0
48,994,969
<CASH> 0 0 532,197 0
450,861
<RECOVER-REINSURE> 0 0 18,758,901 0
18,903,688
<DEFERRED-ACQUISITION> 0 0 21,570,613 0
21,925,999
<TOTAL-ASSETS> 0 0 120,787,414 0
123,321,640
<POLICY-LOSSES> 0 0 36,234,700 0
36,581,642
<UNEARNED-PREMIUMS> 0 0 58,349,216 0
57,942,946
<POLICY-OTHER> 0 0 2,584,744 0
2,850,660
<POLICY-HOLDER-FUNDS> 0 0 0 0
0
<NOTES-PAYABLE> 0 0 2,206,982 0
2,536,982
0 0 0 0
0
0 0 4,674,626 0
4,656,642
<COMMON> 0 0 30,310 0
30,310
<OTHER-SE> 0 0 9,080,289 0
10,984,112
<TOTAL-LIABILITY-AND-EQUITY> 0 0 120,787,414 0
123,321,640
5,229,202 5,4472,341 10,265,233 10,782,074
0
<INVESTMENT-INCOME> 665,632 720,559 1,324,894 1,473,248
0
<INVESTMENT-GAINS> (21,763) 1,719 (22,267) (23,156)
0
<OTHER-INCOME> 1,157,338 1,352,929 2,399,179 2,377,599
0
<BENEFITS> 2,700,271 2,892,483 5,523,838 5,670,251
0
<UNDERWRITING-AMORTIZATION> 2,655,879 2,685,893 5,267,456 5,314,457
0
<UNDERWRITING-OTHER> 1,738,050 2,009,357 3,777,606 4,079,150
0
<INCOME-PRETAX> (63,791) (40,185) (601,861) (454,093)
0
<INCOME-TAX> 179,311 50,726 65,304 32,089
0
<INCOME-CONTINUING> 0 0 0 0
0
<DISCONTINUED> 0 0 0 0
0
<EXTRAORDINARY> 0 0 0 0
0
<CHANGES> 0 0 0 0
0
<NET-INCOME> (243,102) (90,911) (667,165) (486,162)
0
<EPS-PRIMARY> (0.14) (0.08) (0.34) (0.27)
0
<EPS-DILUTED> 0 0 0 0
0
<RESERVE-OPEN> 0 0 0 0
0
<PROVISION-CURRENT> 0 0 0 0
0
<PROVISION-PRIOR> 0 0 0 0
0
<PAYMENTS-CURRENT> 0 0 0 0
0
<PAYMENTS-PRIOR> 0 0 0 0
0
<RESERVE-CLOSE> 0 0 0 0
0
<CUMULATIVE-DEFICIENCY> 0 0 0 0
0
</TABLE>
