UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: July 30, 1996
FARM FAMILY HOLDINGS, INC.
A Delaware Corporation Commission File No. 1-11941 IRS No. 14-1789227
344 Route 9W, Glenmont, New York 12077-2910
Registrant's telephone number: (518) 431-5000
<PAGE>
Item 5. Other Events
On July 30, 1996, Farm Family Holdings, Inc. issued a press
release announcing results of operations for the second quarter
and the first six months of 1996.
Item 7. Financial Statements and Exhibits
The following exhibits are filed as part of this report:
Exhibit Index
Exhibit 99 - Press Release dated July 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.
FARM FAMILY HOLDINGS, INC.
(Registrant)
July 30, 1996 /s/ Philip P. Weber
(Date) Philip P. Weber
President and CEO
<PAGE>
FOR IMMEDIATE RELEASE
FOR: Farm Family Holdings, Inc.
CONTACT: Timothy A. Walsh (518) 431 - 5410
Glenmont, New York, July 30, 1996 - Farm Family Holdings, Inc.
(NYSE symbol: FFH) today announced results of operations for the
second quarter and the first six months of 1996. Operating
earnings for the second quarter of 1996 increased 13.8% to $2.5
million in the second quarter of 1996 compared to $2.2 million
for the same period in 1995. On a per share basis, operating
earnings for the second quarter of 1996 increased to $0.84 per
share compared to $0.74 for the same quarter in 1995. Operating
earnings for the six month period ended June 30, 1996 were $1.10
per share compared to $1.70 per share for the same period in
1995. Operating earnings exclude the impact of realized capital
gains and losses and extraordinary items.
Premium revenue increased 10.2% to $32.2 million for the second
quarter of 1996 compared to $29.2 million for the same period in
1995 primarily as a result of the increased penetration into the
Northeastern agribusiness market. In addition, net written
premiums increased 7.1% to $36.1 million for the second quarter
of 1996 compared to $33.8 million for the same period in 1995.
Loss and loss adjustment expenses declined to 71.6% of premium
revenue for the second quarter of 1996 compared to 73.6% for the
same period in 1995. Net investment income for the second
quarter of 1996 increased to $3.6 million compared to $3.5
million for the same period in 1995.
Net income for the second quarter of 1996 was $1.6 million
compared to $2.1 million for the same period in 1995. The
second quarter of 1996 included certain nonrecurring expenses
totaling $0.9 million related to the Company's conversion from a
mutual company to a stockholder owned company.
For the six months ended June 30, 1996, premium revenue
increased 11.9% to $63.9 million compared to $57.1 million for
the same period in 1995. Net written premiums increased 8.5% to
$68.9 million compared to $63.5 million for the same period in
1995. Loss and loss adjustment expenses were 76.3% of premium
revenue for the six months ended June 30, 1996 compared to 71.3%
for the same period in 1995. The increase in the loss and loss
adjustment expense ratio was primarily attributable to weather
related losses experienced in the Northeastern United States
during the first quarter of 1996. Loss and loss adjustment
expenses believed to be weather related were approximately $8.7
million for the six months ended June 30, 1996 compared to $2.2
million for the same period in 1995. Operating earnings
decreased to $3.3 million for the six months ended June 30, 1996
compared to $5.1 million for the same period in 1995. Net
investment income increased to $7.5 million for the six months
ended June 30, 1996 compared to $7.0 million for the same period
in 1995.
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<PAGE>
Net income for the six months ended June 30, 1996 was $1.9
million compared to $5.0 million for the same period in 1995.
The results for the six months ended June 30, 1996 included
abnormally high weather related losses incurred in the first
quarter of 1996 and certain nonrecurring expenses totaling $1.4
million related to the Company's conversion from a mutual
company to a stockholder owned company.
Book value per share at June 30, 1996 decreased to $23.67 from
$24.72 at December 31, 1995. Excluding the mark-to-market
adjustment pursuant to SFAS 115, book value per share at June
30, 1996 increased to $22.37 from $21.72 at December 31, 1995.
On July 26, 1996, Farm Family Holdings, Inc. completed its
initial public offering of 2,470,000 shares of its common stock
at a price of $16 per share. Concurrent with the consummation
of the Company's initial public offering, Farm Family Mutual
Insurance Company converted from a mutual company to a
stockholder owned company. Farm Family Mutual was renamed Farm
Family Casualty Insurance Company and became a wholly-owned
subsidiary of Farm Family Holdings, Inc.
In addition to the 2,470,000 shares sold in the initial public
offering and the 315,826 shares sold in the underwriters' over
allotment, the Company distributed 2,253,878 shares to
policyholders and surplus note holders, and sold 214,174 shares
in a subscription offering. As a result, the Company currently
has 5,253,878 shares outstanding.
Farm Family Casualty is a regional, specialized property and
casualty insurer of farms, agricultural-related businesses and
residents of rural and suburban communities.
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<TABLE>
FARM FAMILY HOLDINGS, INC.
Condensed Consolidated Statements of Income
($ in thousands)
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1996 1995 1996
---------------------- ---------------------
<S> <C> <C> <C> <C>
Revenues:
Premiums $29,211 $32,190 $57,063 $63,866
Net investment income 3,505 3,645 7,009 7,503
Realized investment gains
(losses), net (169) 14 (108) 77
Other income 223 257 391 470
---------- ---------- ---------- ----------
Total revenues 32,770 36,106 64,355 71,916
---------- ---------- ---------- ----------
Losses and Expenses:
Losses and loss adjustment
expenses 21,508 23,031 40,665 48,753
Underwriting expenses 8,198 9,180 16,410 17,967
Interest expense 54 54 108 108
Dividends to policyholders 44 86 91 113
---------- ---------- ---------- ----------
Total losses and expenses 29,804 32,351 57,274 66,941
---------- ---------- ---------- ----------
Income before federal income tax
expense and extraordinary item 2,966 3,755 7,081 4,975
Federal income tax expense 860 1,222 2,053 1,619
---------- ---------- ---------- ----------
Income before extraordinary item 2,106 2,533 5,028 3,356
Extraordinary item -
demutualization expenses - 896 - 1,417
---------- ---------- ---------- ----------
Net income $2,106 $1,637 $5,028 $1,939
========== ========== ========== ==========
Income before extraordinary
item per share $0.70 $0.84 $1.68 $1.12
========== ========== ========== ==========
Net income per share $0.70 $0.55 $1.68 $0.65
========== ========== ========== ==========
Net operating income per
share <F1> $0.74 $0.84 $1.70 $1.10
========== ========== ========== ==========
Shares outstanding <F2> 3,000,000 3,000,000 3,000,000 3,000,000
========== ========== ========== ==========
<FN>
<F1> Operating income excludes the impact of realized capital gains
and losses and extraordinary items.
<F2> Gives effect in all periods to the allocation of 3,000,000
shares to eligible policyholders on July 26, 1996 pursuant
to the Company's conversion from a mutual company to a
stockholder owned company.
</FN>
</TABLE>
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<PAGE>
<TABLE>
FARM FAMILY HOLDINGS, INC.
Condensed Consolidated Balance Sheets
($ in thousands)
<CAPTION>
(Unaudited)
12/31/95 06/30/96
-------- --------
<S> <C> <C>
ASSETS
Investments $207,921 $201,896
Cash 2,410 3,341
Insurance receivables 35,564 36,747
Deferred acquisition costs 10,527 11,061
Accrued investment income 4,260 4,383
Other assets 17,606 23,852
-------- --------
Total Assets $278,288 $281,280
======== ========
LIABILITIES AND POLICYHOLDERS' EQUITY
Liabilities:
Reserves for losses and loss
adjustment expenses 137,978 138,322
Unearned premium reserve 52,799 58,098
Debt 2,707 2,686
Other Liabilities 10,640 11,178
-------- --------
Total liabilities 204,124 210,284
-------- --------
Policyholders' equity 74,164 70,996
-------- --------
Total Liabilities and Policyholders' Equity $278,288 $281,280
======== ========
Book Value Per Share <F1> $24.72 $23.67
======== ========
Book Value Per Share
(excluding SFAS 115 adjustment) <F1> $21.72 $22.37
======== ========
<FN>
<F1> Gives effect in all periods to the allocation of
3,000,000 shares to eligible policyholders on July 26, 1996
pursuant to the Company's conversion from a mutual company to a
stockholder owned company.
</FN>
</TABLE>
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