<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1999 Commission File Number: 2-35669
SOUTHERN SECURITY LIFE INSURANCE COMPANY
Exact Name of Registrant.
FLORIDA 59-1231733
- ------------------------------- -------------------------
(State or other jurisdiction of IRS Identification Number
incorporation or organization
755 Rinehart Road, Lake Mary, Florida 32746
- -------------------------------------- -------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including Area Code (407) 321-7113
--------------
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 such filing 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.
Class A Common Stock, $1.00 par value 1,907,989
- ------------------------------------- --------------
Title of Class Number of Shares
Outstanding as of
September 30, 1999
<PAGE>
SOUTHERN SECURITY LIFE INSURANCE COMPANY
FORM 10Q
QUARTER ENDED SEPTEMBER 30, 1999
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1 Financial Statements Page No.
Statements of Income - Nine and Three Months
ended September 30, 1999 and 1998. . . . . . . . . . 3
Balance Sheets - September 30, 1999
and December 31, 1998. . . . . . . . . . . . . . . 4-5
Statements of Cash Flows -
Nine months ended September 30, 1999 and 1998. . . . 6
Notes to Condensed Financial Statements. . . . . . . 7
Item 2 Management's Discussion and Analysis. . . . 8-11
Item 3 Quantitative and Qualitative Disclosure
of Market Risk. . . . . . . . . . . . . . . . .11
PART II - OTHER INFORMATION
Other Information. . . . . . . . . . . . . . . . 12-13
Signature Page . . . . . . . . . . . . . . . . . . .14
<PAGE>
<TABLE>
<CAPTION>
SOUTHERN SECURITY LIFE INSURANCE COMPANY
Statements of Income
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
1999 1998 1999 1998
---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Revenues:
Net insurance
revenues $5,224,546 5,807,306 2,048,276 1,926,348
Net investment
income 2,072,294 2,782,706 344,292 914,719
Net investment
income with
related parties 638,150 -- 242,514 --
Realized gain on
investments -- 414,184 -- --
Other 760,143 -- 38,239 --
---------- --------- --------- ----------
Total revenues 8,695,133 9,004,196 2,673,321 2,841,067
Benefits, losses and expenses:
Annuity, death, surrender and
other policy
benefits 3,269,224 3,333,074 638,841 1,015,375
Increase in future
policy benefits 179,228 358,928 40,722 131,975
Amortization of deferred
policy
acquisition costs 2,189,984 2,377,017 715,578 650,294
Commissions and
operating
expenses 2,312,005 2,600,743 832,948 775,581
Interest expense with
related party 67,500 67,500 22,500 22,500
---------- ---------- ---------- ----------
Total benefits
and expenses 8,017,941 8,737,262 2,250,589 2,595,725
---------- ---------- ---------- ----------
Income (loss) before
income taxes 677,192 266,934 422,732 245,342
Income tax expense
(benefit) 261,396 100,100 162,920 93,051
---------- ---------- ---------- ----------
Net income
(loss) $ 415,796 $ 166,834 $ 259,812 $ 152,291
========== ========== ========== ===========
Basic net
income (loss)
per share of
common stock $.22 $0.08 $.14 $0.08
==== ===== ==== =====
Diluted net
income (loss) per
share of
common stock $.22 $0.08 $.14 $0.08
==== ===== ==== =====
</TABLE>
See accompanying notes to condensed financial statements.
<PAGE>
<TABLE>
<CAPTION>
SOUTHERN SECURITY LIFE INSURANCE COMPANY
BALANCE SHEETS
September 30, 1999 December 31,
(Unaudited) 1998
------------------- -------------
<S> <C> <C>
Assets:
Investments:
Fixed maturities held-to
maturity at amortized cost $ 4,808,074 $ 4,956,910
Securities available for sale,
at fair value:
Fixed maturities 24,495,071 28,479,161
Equity securities 273,971 250,232
Equity securities
of related party 405,349 --
Policy and student loans 8,251,654 8,462,438
Short-term investments 6,252,491 11,434,983
Short-term investments
with related party 4,346,908 --
----------- ------------
Total investments 48,833,518 53,583,724
Cash and cash equivalents 3,081,465 682,389
Accrued investment income 770,545 564,118
Deferred policy acquisition costs 12,913,351 13,583,956
Policyholders' account balances on
deposit with reinsurer 8,319,761 8,518,571
Reinsurance receivable 305,090 306,258
Receivables:
Agent balances 1,256,690 994,493
Other 566,204 351,478
Refundable income taxes 34,951 34,951
Property and equipment,
net, at cost 2,468,776 2,585,255
------------ -----------
Total assets $78,550,351 $81,205,193
=========== ===========
</TABLE>
See accompanying notes to condensed financial statements.
<PAGE>
<TABLE>
<CAPTION>
SOUTHERN SECURITY LIFE INSURANCE COMPANY
BALANCE SHEETS (Continued)
September 30, 1999 December 31,
(Unaudited) 1998
------------------ ------------
Liabilities and Shareholders' Equity:
- ------------------------------------
<S> <C> <C>
Liabilities:
Policy liabilities and accruals $ 1,906,528 $ 1,727,300
Future policy benefits:
Policyholders' account balances 51,172,887 52,520,300
Unearned revenue 5,189,749 6,023,399
Other policy claims and benefits payable 866,943 540,789
Other Policyholders' funds, dividend
and endowment accumulations 68,061 64,738
Funds held related to reinsurance treaties 1,434,831 1,419,357
Note payable to related party 1,000,000 1,000,000
Due to affiliated insurance agency 188,927 22,871
General expenses accrued 193,478 747,148
Unearned investment income 334,484 340,622
Other liabilities (28,830) 90,489
Deferred income taxes 615,880 796,074
----------- -----------
Total liabilities 62,942,938 65,293,087
Shareholders' Equity:
Common stock, $1 par, authorized
3,000,000 shares; issued and outstanding
1,907,989 shares 1,907,989 1,907,989
Capital in excess of par 4,011,519 4,011,519
Accumulated other comprehensive
income (loss) (290,328) 430,161
Retained earnings 9,978,233 9,562,437
----------- ---------
Total common stock 15,607,413 15,912,106
----------- -----------
Total liabilities and stockholders' equity $78,550,351 $81,205,193
=========== ===========
</TABLE>
See accompanying notes to condensed financial statements.
<PAGE>
<TABLE>
<CAPTION>
SOUTHERN SECURITY LIFE INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
1999 1998
---------- --------
<S> <C> <C>
Net cash provided by (used in)
operating activities $(1,266,923) $ 2,495,351
----------- -----------
Cash flows provided by (used in)
investing activities:
Purchase of investments available
for sale (equity and fixed maturity) (405,349) (6,782,600)
Proceeds from maturity of held to
maturity securities 130,301 4,066,507
Proceeds from maturity of available
for sale securities 2,833,129 299,281
Proceeds from sale of available for
sale securities (equity and fixed
maturity) -- 6,779,007
Net change in short-term investments 835,584 100,000
Net change in policy and student loans 210,784 (238,688)
Acquisition of property and equipment -- (69,125)
----------- -----------
Net cash provided by investing activities 3,474,148 4,154,382
----------- -----------
Cash flows provided by (used in) financing activities:
Receipts from universal
life and certain annuity
policies credited to
policyholder account balances 5,030,285 2,070,140
Return of policyholder
account balances on
universal life and
certain annuity policies (4,968,735) (3,479,934)
----------- -----------
Net cash used in financing activities 61,550 (1,409,794)
----------- -----------
Increase in cash and cash equivalents 2,399,076 5,239,939
Cash and cash equivalents at beginning
of period 682,389 2,448,994
----------- -----------
Cash and cash equivalents at
end of period $ 3,081,465 $ 7,688,933
=========== ===========
</TABLE>
See accompanying notes to condensed financial statements.
<PAGE>
SOUTHERN SECURITY LIFE INSURANCE COMPANY
Notes to Condensed Financial Statements
September 30, 1999
(Unaudited)
1. Basis of Presentation
---------------------
The accompanying unaudited condensed financial statements have been
prepared by management in conformity with generally accepted accounting
principles for interim financial information and with the instructions to
Form 10-Q and Regulation S-X. Accordingly, they do not include all of the
disclosures required by generally accepted accounting principles for
complete financial statements. All adjustments and accruals considered
necessary for fair presentation of financial information have been
included in the opinion of management, and are of a normal recurring
nature. Quarterly results of operations are not necessarily indicative of
annual results. These statements should be read in conjunction with the
financial statements and the notes thereto included in the Southern
Security Life Insurance Company 1998 Annual Report on Form 10-K for the
fiscal year ended December 31, 1998 (file number 2-35669).
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those estimates.
The estimates susceptible to significant change are those used in
determining the liability for future policy benefits and claims. Although
some variability is inherent in these estimates, management believes the
amounts provided are adequate.
2. Comprehensive Income
--------------------
For the nine months ended September 30, 1999 and 1998, total comprehensive
income (loss) was $(305,000) and $438,000, respectively.
For the three months ended September 30, 1999 and 1998, total
comprehensive income was $227,000 and $419,000, respectively.
3. Management Fees
---------------
Effective December 17, 1998, the Company entered into an Administrative
Services Agreement with Security National Financial Corporation ("SNFC").
Under the terms of the agreement, SNFC has agreed to provide the Company
with certain defined administrative and financial services, including
accounting services, financial reports and statements, actuarial,
policyholder services, underwriting, data processing, legal, building
management, marketing advisory services and investment services. In
consideration for the services to be provided by SNFC, the Company shall
pay SNFC an administrative services fee of $250,000 per month, provided,
however, that such fee shall be reduced to zero for so long as the capital
and surplus of the Company is less than or equal to $6,000,000 unless the
Company and SNFC otherwise agree in writing and such agreement is approved
by the Florida Department of Insurance.
The administrative services fee may be increased, beginning on January 1,
2001, to reflect increases in the Consumer Price Index, over the index
amount as of January 1, 2000. The Administrative Services Agreement shall
remain in effect for an initial term expiring on December 16, 2003. The
term of the agreement may be automatically extended for additional one-
year terms unless either the Company or SNFC shall deliver a written
notice on or before September 30 of any year stating to the other its
desire not to extend the term of the Agreement. However, in no event can
the Agreement be terminated prior to December 16, 2003. It is anticipated
that the Company will realize a reduced level of general and
administrative costs in the future as a result of the Administrative
Services Agreement.
<PAGE>
Item 2. Management's Discussion and Analysis
------------------------------------
Overview
This analysis of the results of operations and financial condition of
Southern Security Life should be read in conjunction with the Condensed
Financial Statements and Notes to the Condensed Financial Statements
included in this report.
In recent years, the Company has primarily issued two types of insurance
products: universal life and final expense products. Universal life
provides insurance coverage with flexible premiums, within limits, which
allow policyholders to accumulate cash values. The accumulated cash values
are credited with tax-deferred interest, as adjusted by the Company on a
periodic basis. Deducted from the cash accumulations are administrative
charges and mortality costs. Should a policy surrender in its early
years, the Company assesses a surrender fee against the cash value
accumulations based on a graded formula.
Final expense products are traditional endowment type insurance policies
written for the senior market. Because the products are written to a
senior market they are designed to accommodate adverse health conditions.
Because of the size of the policies, the products are usually issued with
only limited underwriting. The coverage size of the policy is roughly
equivalent to the insured's anticipated funeral costs.
An additional source of income to the Company is investment revenue. The
Company invests those funds deposited by policyholders of universal life
and annuity products in debt and equity securities in order to earn
interest and dividend income, a portion of which is credited back to the
policyholders. Interest rates and maturities of the Company's investment
portfolio play an important part in determining the interest rates
credited to policyholders.
Product profitability is affected by several different factors, such as
mortality experience (actual versus expected), interest rate spreads
(excess interest earned over interest credited to policyholders) and
controlling policy acquisition costs and other costs of operation. The
results of any one reporting period may be significantly affected by the
level of death claims or other policyholder benefits incurred due to the
Company's relatively small size.
Results of Operations
Third Quarter of 1999 Compared to Third Quarter of 1998
Total revenues decreased by $168,000, or 5.9%, to $2,673,000 for the three
months ended September 30, 1999, from $2,841,000 for the three months
ended September 30, 1998. Contributing to this decrease was a $38,000
increase in other revenues, a $122,000 increase in net insurance revenue,
and a $329,000 decrease in net investment income.
Net insurance revenues increased $122,000, or 6.3%, to $2,048,000 for the
three months ended September 30, 1999, from $1,926,000 for the three
months ended September 30, 1998. This increase was primarily the result of
additional income for assumed group insurance.
Net investment income decreased by $329,000, or 36.0%, to $586,000 for the
three months ended September 30, 1999, from $915,000 for the three months
ended September 30, 1998. This decrease was primarily the result of a
reduction to policy loan interest and additional investment expenses.
Other revenues totaled $38,000 for the three months ended September 30,
1999, as compared to none for the same period in 1998. This amount was
the result of a settlement from insurance claims filed for the recovery of
the costs to litigate a case against a former officer of the Company.
<PAGE>
Annuity, death, surrender, and other policy benefits and increase in
future policy benefits decreased by $468,000, or 40.8%, to $679,000 for
the three months ended September 30, 1999, from $1,147,000 for the
comparable period in 1998. The decrease was a result of lower policyholder
benefits for universal life products.
The amortization of deferred policy acquisition costs increased by
$65,000, or 10.0%, to $715,000, for the three months ended September 30,
1999, from $650,000 for the comparable period in 1998. The increase in
amortization expenses was primarily due to the change in net insurance
revenues.
Commissions and operating expenses increased by $57,000, or 6.8%, to
$833,000 for the three months ended September 30, 1999, from $776,000 for
the same period in 1998. The increase was primarily due to the change in
insurance revenues, which resulted in higher commission expense. This
increase in commission expense was offset by lower operating expenses due
to the Company entering into an Administrative Services Agreement with
Security National Financial Corporation, an affiliated company, to provide
administrative services for a fixed fee. See Note 3 to Condensed
Financial Statements.
Nine Months Ended September 30, 1999, Compared to Nine Months Ended
September 30, 1998.
Total revenues decreased by $310,000, or 3.4%, to $8,694,000 for the nine
months ended September 30, 1999, from $9,004,000 for the nine months ended
September 30, 1998. Contributing to this reduction in total revenues was
a $583,000 decrease in net insurance revenues, a $72,000 decrease in net
investment income and a $414,000 decrease in realized gain on investments.
In addition there was a $760,000 increase in other revenues.
Net insurance revenues decreased by $583,000, or 10.0%, to $5,224,000 for
the nine months ended September 30, 1999, from $5,807,000 for the nine
months ended September 30, 1998. This decrease was primarily the result
of a change in the sales mix of the Company's insurance products. Since
March 1998, the sales of the Company's funeral plan products have been
greater than the universal life products. The universal life products
were for greater face amounts than the funeral plan products.
Consequently, the insurance revenues from final expense products were less
than those from universal life products.
The Company's decision in 1998 to reduce its mutual fund holdings resulted
in $414,000 in realized gains on investments for the nine months ended
September 30, 1998, as compared to no realized gains on investments for
the same period in 1999.
Net investment income decreased by $73,000, or 2.6%, to $2,710,000 for the
nine months ended September 30, 1999, from $2,783,000 for the nine months
ended September 30, 1998. This decrease was primarily due to a reduction
in invested assets. The reduction in invested assets was a result of
lower policyholder account balances due to a change in the Company's sales
mix.
Other revenues totaled $760,000 for the nine months ended September 30,
1999, as compared to none for the same period in 1998. This amount was
the result of a settlement from insurance claims filed for the recovery of
the costs to litigate a case against a former officer of the Company.
Annuity, death, surrender, and other policy benefits and increase in
future policy benefits decreased by $243,000, or 6.6%, to $3,448,000 for
the nine months ended September 30, 1999, from $3,691,000 for the
comparable period in 1998. The decrease was primarily due to a reduction
in interest credited for policyholder funds.
<PAGE>
The amortization of deferred policy acquisition costs decreased by
$187,000, or 7.9%, to $2,190,000, for the nine months ended September 30,
1999, from $2,377,000 for the comparable period in 1998. The decrease in
amortization expenses was primarily due to the change in net insurance
revenues.
Commissions and operating expenses decreased by $289,000, or 11.1% to
$2,312,000 for the nine months ended September 30, 1999 from $2,601,000
for the same period in 1998. This reduction was primarily due to the
Company entering into an Administrative Services Agreement with Security
National Financial Corporation, an affiliated company, to provide
administrative services for a fixed fee. See Note 3 to Condensed
Financial Statements.
Liquidity and Capital Resources
The Company attempts to match the duration of invested assets with its
policyholder liabilities. The Company may sell investments other than
those held-to-maturity in the portfolio to help in this timing; however,
to date, that has not been necessary. The Company purchases short-term
investments on a temporary basis to meet the expectations of short-term
requirements of the Company's products. The Company's investment
philosophy is intended to provide a rate of return which will persist
during the expected duration of policyholder liabilities regardless of
future interest rate movements.
The Company's investment policy is to invest predominantly in fixed
maturity securities, mortgage loans, and warehouse mortgage loans on a
short-term basis before selling the loans to investors in accordance with
the requirements and laws governing life insurance companies. Bonds owned
by the Company amounted to $29,303,000 as of September 30, 1999 as
compared to $33,436,000 as of December 31, 1998. This represents 60.5%
and 62.4% of the total investments as of September 30, 1999 and December
31, 1998, respectively. Generally, all bonds owned by the Company are
rated by the National Association of Insurance Commissioners. Under this
rating system, there are nine categories used for rating bonds. At
September 30, 1999, and at December 31, 1998, the Company did not have
investments in bonds in rating categories three through nine, which are
considered non-investment grade.
The Company has classified certain of its fixed income securities as
available for sale, with the remainder classified as held to maturity.
However, in accordance with Company policy, any such securities purchased
in the future will be classified as held to maturity. Business
conditions, however, may develop in the future which may indicate a need
for a higher level of liquidity in the investment portfolio. In that
event the Company believes it could sell short-term investment grade
securities before liquidating higher-yielding longer term securities.
The Company is subject to risk based capital guidelines established by
statutory regulators requiring minimum capital levels based on the
perceived risk of assets, liabilities, disintermediation, and business
risk. At September 30, 1999 and December 31, 1998, the Company exceeded
the regulatory criteria.
Lapse rates measure the amount of insurance terminated during a particular
period. The Company's lapse rate for life insurance in 1998 was 17.4% as
compared to a rate of 20.0% for 1997. The 1999 lapse rate is
approximately the same as 1998.
At September 30, 1999, $8,886,000 of the Company's consolidated stock-
holders' equity represented the statutory stockholders' equity. The
Company cannot pay a dividend to its parent company without the approval
of insurance regulatory authorities.
The Company has no material commitments for capital expenditures.
<PAGE>
Year 2000 Issues
The Company has completed its efforts to resolve the potential impact of
the Year 2000 on the processing of information by the Company's insurance
systems. The Year 2000 problem is the result of computer programs being
written using two digits (rather than four) to define the applicable year.
Any of the Company's systems that have time-sensitive software may
recognize a date using "00" as the year 1900 rather than 2000, which could
result in miscalculations or system failures. The Company has
substantially completed the necessary system upgrades and compliance
testing.
The Company's most significant operational system was replaced through
conversion pursuant to an Administrative Services Agreement. Under the
Administrative Services Agreement entered into by the Company effective
December 17, 1998, Security National made available a new LifePro
Administrative system. LifePro is a subsidiary of IBM. Since May of
1998, SNFC has invested in excess of $1.0 million to implement a system
conversion for the Company. For further discussion on the Administrative
Services Agreement, see the Notes to Condensed Financial Statements.
The anticipated future costs of addressing potential Year 2000 problems
are not currently expected to have a material adverse impact on the
Company's financial position, results of operations or cash flows in
future periods. However, if the Company, its customers or vendors are
unable to resolve such processing issues in a timely manner, it could
result in a material financial risk. Management believes that manual
policy and claims administration could be performed in the unlikely event
that one or more of its systems did not function. The Company plans to
devote the necessary resources to test and remediate all remaining Year
2000 issues in a timely manner.
The cost that has been incurred and paid in achieving Year 2000 compliance
is approximately $1.0 million as discussed above. As of September 30,
1999, management does not anticipate any other significant costs to be
incurred associated with its Year 2000 initiatives.
Item 3. Quantitative and Qualitative Disclosure of Market Risk
There have been no significant changes since the annual report Form 10-K
filed for the year ended December 31, 1998.
<PAGE>
Part II Other Information:
Item 1. Legal Proceedings
The Company has been named as a party in an action brought in
the Circuit Court, Eighteenth Judicial District, Seminole
County, Florida. The action was commenced in December 1998 with
an amended complaint filed in April 1999. On three occasions
in the past, the Company has been involved in litigation with
the plaintiff, William Thomas. In the pending action, Thomas
asserts a claim for malicious prosecution and a claim for abuse
of process purportedly arising out of a prior action involving
him and the Company. In each of the claims, Thomas seeks
compensatory damages of $1.0 million plus costs of the action.
Thomas has undertaken formal discovery. The Company filed a
motion for summary judgment on the claims which is scheduled to
be heard on November 23, 1999. Whatever the outcome of the
motion, the Company intends to vigorously defend the action.
Should the motion be denied, the Company will likely engage in
formal discovery.
An action was brought against the Company in July 1999 by
Dorothy Ruth Campbell in the Circuit Court of Escambia County,
Alabama. The action arises out of a denial of coverage for a
policy with coverage for $10,000. The claims are for breach of
contract, bad faith and fraudulent misrepresentation. In the
action, Campbell seeks compensatory and punitive damages plus
interest. The case is in the early stage as settlement was not
reached. The Company has filed its response to the complaint
and intends to defend the matter.
The Company is not a party to any other legal proceedings
outside the ordinary course the Company's business or to any
other legal proceedings which, if adversely determined, would
have a material adverse effect on the Company or its business.
Item 2. Changes in Securities
NONE
Item 3. Defaults Upon Senior Securities
NONE
Item 4. Submission of Matters to a Vote of Security Holders
NONE
Item 5. Other Information
NONE
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
3. A. Articles of Incorporation, as amended, and By-laws, as amended
(without exhibits), dated September 1994, incorporated by
reference herein from Exhibit 3(1) of the Annual Report of the
Company filed on Form 10-K for the fiscal year ended December
31, 1994.
10. A. Executive Compensation Agreement between the Company and George
Pihakis (without exhibits) incorporated by reference herein from
Exhibit 10(B) of the Annual Report of the Company filed on Form
10-K for the fiscal year ended December 31, 1984.
<PAGE>
Revolving Financing Agreement between the Company and the
Student Loan Marketing Association, dated as of September 19,
1996, incorporated by reference herein from Exhibit 10(A) of the
Annual Report of the Company filed on Form 10-K for the fiscal
year ended December 31, 1996.
C. Reinsurance Agreement between the Company and United Group
Insurance Company, dated as of December 31, 1992 incorporated
by reference herein from Exhibit 10(B) of the Annual Report of
the Company filed on Form 10-K for the fiscal year ended
December 31, 1992.
D. Agency Agreement between the Company and Insuradyne Corporation
incorporated by reference herein from Exhibit 10(C) of the
Annual Report of the Company filed on Form 10-K for the fiscal
year ended December 31, 1993.
E. Administrative Services Agreement between the Company and
Security National Financial Corporation effective December 17,
1998, incorporated by reference herein from Exhibit 10(E) of the
Annual Report of the Company filed on Form 10-K for the fiscal
year ending December 31, 1998.
27. Financial Data Schedule
(b) Reports on Form 8-K:
NONE
<PAGE>
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.
REGISTRANT
SOUTHERN SECURITY LIFE INSURANCE COMPANY
Registrant
DATED: November 19, 1999 By: George R. Quist,
----------------- ---------------
President and Chief Executive
Officer (Principal Executive
Officer)
DATED: November 19, 1999 By: Scott M. Quist
----------------- ---------------
First Vice President, General
Counsel and Treasurer (Principal
Financial and Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> 7
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1999
<DEBT-HELD-FOR-SALE> 24,495,071
<DEBT-CARRYING-VALUE> 24,495,071
<DEBT-MARKET-VALUE> 24,495,071
<EQUITIES> 679,320
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 48,833,518
<CASH> 3,081,465
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 12,913,351
<TOTAL-ASSETS> 78,550,351
<POLICY-LOSSES> 866,943
<UNEARNED-PREMIUMS> 5,189,749
<POLICY-OTHER> 1,974,589
<POLICY-HOLDER-FUNDS> 51,172,887
<NOTES-PAYABLE> 1,000,000
0
13,699,424
<COMMON> 1,907,989
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 78,550,351
5,224,546
<INVESTMENT-INCOME> 2,072,294
<INVESTMENT-GAINS> 0
<OTHER-INCOME> 760,143
<BENEFITS> 3,269,224
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 0
<INCOME-PRETAX> 677,192
<INCOME-TAX> 261,396
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 415,796
<EPS-BASIC> .22
<EPS-DILUTED> .22
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
