<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 10-Q
X Quarterly Report Under Section 13 or 15 (d) of the Securities
- - ------- Exchange Act of 1934
For the Quarterly Period Ended September 30, 1995
- - ------- Transition Report Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
-----------------------
Commission File Number 0-4604
CINCINNATI FINANCIAL CORPORATION
--------------------------------
(Exact name of registrant as specified in its charter)
An Ohio Corporation 31-0746871
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6200 South Gilmore Road
Fairfield, Ohio 45014-5141
(Address of principal executive offices)
Registrant's telephone number, including area code: 513/870-2000
*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 X NO
-------. -------.
Securities registered pursuant to Section 12(g) of the Act:
$2.00 Par Common--53,027,672 shares outstanding at September 30, 1995
$80,000,000 of 5-1/2% Convertible Senior Debentures Due 2002
<PAGE> 2
PART I
------
ITEM 1. FINANCIAL STATEMENTS
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited)
September 30, December 31,
1995 1994
------------ ------------
<S> <C> <C>
ASSETS
- - ------
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,877,201 $ 48,254,464
Investments
Fixed Maturities (Cost: 1995--$2,226,834,497;
1994--$1,976,314,328). . . . . . . . . . . . . . . . . . . . . . . . 2,338,778,440 1,943,116,277
Equity Securities (Cost: 1995--$1,385,358,658;
1994--$1,289,443,730). . . . . . . . . . . . . . . . . . . . . . . . 2,684,397,387 2,230,246,516
Other Invested Assets. . . . . . . . . . . . . . . . . . . . . . . . . 39,841,350 38,815,948
Finance Receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . 19,279,495 16,168,514
Premiums Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . 161,819,006 141,972,017
Reinsurance Receivable . . . . . . . . . . . . . . . . . . . . . . . . . 95,707,399 67,125,191
Prepaid Reinsurance Premiums. . . . . . . . . . . . . . . . . . . . . . . 23,393,135 24,066,171
Investment Income Receivable. . . . . . . . . . . . . . . . . . . . . . . 63,447,091 56,069,113
Land, Buildings and Equipment for Company Use (at Cost
Less Accumulated Depreciation) . . . . . . . . . . . . . . . . . . . . 32,574,210 32,672,741
Deferred Acquisition Costs Pertaining to Unearned
Premiums and to Life Policies in Force . . . . . . . . . . . . . . . . 118,119,217 109,503,487
Other Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,419,795 26,268,434
-------------- --------------
Total Assets $5,656,653,726 $4,734,278,873
============== ==============
LIABILITIES
- - -----------
Insurance Reserves:
Life Policy Reserves . . . . . . . . . . . . . . . . . . . . . . . . . $ 395,331,593 $ 370,095,301
Losses and Loss Expenses . . . . . . . . . . . . . . . . . . . . . . . 1,703,510,898 1,552,296,866
Unearned Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406,540,218 382,119,017
Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,649,310 129,115,650
5-1/2% Convertible Senior Debentures Due 2002 . . . . . . . . . . . . . . 80,000,000 80,000,000
Federal Income Taxes
Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,629,663 -0-
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,076,520 195,447,391
Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,704,804 85,157,413
-------------- ---------------
Total Liabilities 3,263,443,006 2,794,231,638
-------------- ---------------
SHAREHOLDERS' EQUITY
- - --------------------
*Common Stock, $2 per Share; Authorized 80,000,000
Shares; Issued 1995--53,067,651; 1994--52,957,773
Shares; Outstanding 1995--53,027,672; 1994--52,938,838
Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,135,302 100,871,948
Paid-In Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236,399,066 105,791,761
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,124,303,214 1,133,104,811
Unrealized Gain on Investments, Less Taxes. . . . . . . . . . . . . . . . 928,388,139 601,192,480
--------------- ---------------
2,395,225,721 1,940,961,000
*Less Treasury Shares at Cost (1995--39,979 Shares;
1994--18,935 Shares) . . . . . . . . . . . . . . . . . . . . . . . . . (2,015,001) (913,765)
--------------- ---------------
Total Shareholders' Equity . . . . . . . . . . . . . . . . . . . . . 2,393,210,720 1,940,047,235
--------------- ---------------
Total Liabilities and Shareholders' Equity . . . . . . . . . . . . . $ 5,656,653,726 $4,734,278,873
=============== ==============
*Adjusted to reflect 5% stock dividend effective March 17, 1995.
Accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> 3
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended Sept. 30, Three Months Ended Sept. 30,
--------------------------- ----------------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Premiums Earned:
Property and Casualty . . . . . $ 935,212,076 $ 867,348,118 $316,795,076 $293,582,804
Life. . . . . . . . . . . . . . 32,923,047 32,194,272 11,246,097 11,004,201
Accident and Health . . . . . . 5,562,013 5,417,645 1,870,379 1,824,144
------------- ------------- ------------ ------------
Net Premiums Earned . . . . . 973,697,136 904,960,035 329,911,552 306,411,149
Investment Income, Less Expenses . 223,550,773 195,516,422 76,105,459 65,868,082
Realized Gain on Investments . . . 31,303,394 31,504,672 7,668,261 6,680,050
Other Income . . . . . . . . . . . 7,816,844 8,268,208 2,972,281 2,766,985
------------- ------------- ------------ ------------
Total Revenues . . . . . . . . . 1,236,368,147 1,140,249,337 416,657,553 381,726,266
------------- ------------- ------------ ------------
Benefits & Expenses:
Ins. Losses and Policyholder Ben. 712,086,070 673,238,888 241,044,955 232,745,504
Commissions . . . . . . . . . . . 183,440,100 175,685,779 61,587,975 60,436,825
Other Operating Expenses. . . . . 73,025,419 63,409,776 26,364,563 21,906,095
Taxes, Licenses & Fees. . . . . . 28,281,967 30,617,436 8,925,878 9,805,054
Increase in Deferred Acquisition
Costs Pertaining to Unearned
Premiums and to Life Policies
in Force. . . . . . . . . . . . (8,615,731) (4,531,062) (4,522,789) (3,519,809)
Interest Expense. . . . . . . . . 12,819,852 7,074,385 4,837,283 2,828,519
Other Expenses. . . . . . . . . . 4,904,822 2,027,332 1,446,355 657,525
------------- ---------- ----------- ------------
Total Expenses. . . . . . . . . 1,005,942,499 947,522,534 339,684,220 324,859,713
------------- ----------- ----------- ------------
Income Before Income Taxes 230,425,648 192,726,803 76,973,333 56,866,553
------------- ----------- ----------- ------------
Provision (Benefit) for Inc. Taxes:
Current . . . . . . . . . . . . . 53,139,686 51,715,436 14,054,820 12,416,605
Deferred. . . . . . . . . . . . . 297,883 (14,122,861) 4,315,613 (3,101,932)
------------- ----------- ----------- ------------
Total . . . . . . . . . . . . . 53,437,569 37,592,575 18,370,433 9,314,673
------------- ----------- ----------- ------------
Net Income . . . . . . . . . . . . $ 176,988,079 $ 155,134,228 $ 58,602,900 $ 47,551,880
============= ============ ============ ============
Weighted Average Shares Outstanding 54,915,561 54,818,698* 54,944,685 54,844,798*
============= ============ ============ ============
Per Common Share:
Total Net Income. . . . . . . . $3.26 $2.87* $1.08 $ .88*
===== ===== ===== =======
Cash Dividends Declared . . . . $1.00 $ .91* $ .34 $ .30*
===== ===== ===== =======
</TABLE>
*Adjusted to reflect 5% stock dividend effective March 17, 1995.
Accompanying notes are an integral part of these financial statements.
<PAGE> 4
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 1995
------------------------------------
<TABLE>
<CAPTION>
Unrealized
Common Stock Treasury Paid-In Retained Capital Gains
Shares Amount Stock Capital Earnings (Losses)
------ ------ -------- ------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Balance Dec. 31,
1994 50,435,974 $100,871,948 $(913,765) $105,791,761 $1,133,104,811 $601,192,480
Net Income 176,988,079
Change in
Unrealized Gains
Net of Inc. Taxes
of $176,182,278 327,195,659
Dividends Declared (53,224,793)
5% Stock Dividend
at Market 2,521,546 5,043,092 127,338,073 (132,564,883)*
Purchase of
Treasury Shares (1,101,236) 4,436
Stock Options
Exercised 110,131 220,262 3,264,796
------------ ---------- ------------ ----------- -------------- --------------
Balance Sept. 30,
1995 53,067,651 $106,135,302 $(2,015,001) $236,399,066 $1,124,303,214 $928,388,139
============ ============ ============ =========== ============== ==============
</TABLE>
Accompanying notes are an integral part of these financial statements.
*Includes $183,718 cash paid for fractional shares in March, 1995.
<PAGE> 5
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended September 30,
-------------------------------
1995 1994
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . $176,988,079 $ 155,134,228
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization. . . . . . . . . . . . 6,740,990 6,753,226
Increase in net unearned premiums. . . . . . . . . . 25,094,237 16,257,295
Increase in net life policy reserves . . . . . . . . 25,236,292 19,084,191
Increase in net loss and loss expense reserves . . . 122,631,824 108,963,728
Increase in net premiums receivable. . . . . . . . . (19,846,989) (4,119,131)
Increase in deferred acquisition costs . . . . . . . (8,615,730) (4,531,062)
Increase (decrease) in other liabilities . . . . . . 12,450,089 (7,886,286)
Increase in investment income receivable . . . . . . (7,377,978) (4,299,849)
Increase in policy loans and accounts receivable . . (18,617,264) (13,291,534)
Decrease in deferred income taxes. . . . . . . . . . (1,553,149) (14,122,861)
Increase (decrease) in current income taxes. . . . . 12,566,440 (9,413,208)
Realized gain on investments . . . . . . . . . . . . (31,303,394) (31,504,672)
Other. . . . . . . . . . . . . . . . . . . . . . . . 1,494,596 643,293
-------------- ------------
Net cash provided by operating activities. . . . . 295,888,043 217,667,358
-------------- ------------
Cash flows from investing activities:
Sale of fixed maturities investments . . . . . . . . 110,330,569 66,789,210
Maturity of fixed maturities investments . . . . . . 145,656,562 181,013,701
Sale of equity securities investments. . . . . . . . 221,452,824 169,499,008
Collection of mortgage loans . . . . . . . . . . . . 415,242 552,762
Collection of finance receivables. . . . . . . . . . 5,992,361 4,812,081
Purchase of fixed maturities investments . . . . . . (492,073,695) (368,896,771)
Purchase of equity securities investments. . . . . . (299,571,471) (259,440,021)
Investment in mortgage loans . . . . . . . . . . . . (392,531) (1,139,741)
Investment in land, buildings and equipment. . . . . (7,210,591) (8,362,391)
Investment in finance receivables. . . . . . . . . . (9,103,340) (6,422,555)
Investment in real estate and other. . . . . . . . . (170,702) (829,768)
-------------- ------------
Net cash used in investing activities. . . . . . . (324,674,772) (222,424,485)
-------------- ------------
Cash flows from financing activities:
Proceeds from stock options exercised. . . . . . . . 3,485,058 2,789,461
Purchase of treasury shares. . . . . . . . . . . . . (1,096,800) (149,607)
Increase in notes payable. . . . . . . . . . . . . . 68,533,660 41,019,270
Payment of cash dividends to shareholders. . . . . . (51,512,452) (46,311,769)
-------------- --------------
Net cash provided by financing activities. . . . . 19,409,466 (2,652,645)
-------------- --------------
Net decrease in cash . . . . . . . . . . . . . . . . . . (9,377,263) (7,409,772)
Cash at beginning of period . . . . . . . . . . . . . . . 48,254,464 48,113,639
-------------- --------------
Cash at end of period . . . . . . . . . . . . . . . . . . $ 38,877,201 $ 40,703,867
============== ===============
Supplemental disclosures of cash flow information
Interest paid. . . . . . . . . . . . . . . . . . . . . $ 11,485,922 $ 5,956,088
============== ===============
Income taxes paid . . . . . . . . . . . . . . . . . . . $ 46,000,000 $ 61,192,157
============== ===============
</TABLE>
Accompanying notes are an integral part of these financial statements.
<PAGE> 6
CINCINNATI FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE I - ACCOUNTING POLICIES
The consolidated financial statements include the accounts of the Company and
all of its subsidiaries, each of which is wholly owned, and are presented in
conformity with generally accepted accounting principles. All significant
inter-company investments and transactions have been eliminated in
consolidation. The December 31, 1994 consolidated balance sheet amounts are
derived from the audited financial statements but do not include all
disclosures required by generally accepted accounting principles.
INVESTMENTS--Fixed maturities and equity securities have been classified as
available for sale and are carried at fair values at September 30, 1995 and
December 31, 1994.
UNREALIZED GAINS AND LOSSES--The increases (decreases) in unrealized gains for
fixed maturities and equity securities (net of income tax effect) for the
nine-month and three-month periods ended September 30 are as follows:
<TABLE>
<CAPTION>
Fixed Equity
Maturities Securities Total
---------- ---------- -----
<S> <C> <C> <C>
Nine-Month Periods Ended
September 30, 1995 $ 94,342,296 $ 232,853,363 $ 327,195,659
September 30, 1994 (64,194,116) (76,861,387) (141,055,503)
Three-Month Periods Ended
September 30, 1995 $ 1,595,539 $ 93,963,151 $ 95,558,690
September 30, 1994 (7,504,060) 30,762,853 23,258,793
</TABLE>
Such amounts are included as additions to and deductions from shareholders'
equity.
REINSURANCE--Premiums earned are net of premiums on ceded business, and
insurance losses and policyholder benefits are net of reinsurance recoveries in
the accompanying statements of income for the nine-month and three-month
periods ended September 30 as follows:
<TABLE>
<CAPTION>
Ceded Reinsurance
Premiums Recoveries
-------- -----------
<S> <C> <C>
Nine-Month Periods Ended
September 30, 1995 $63,858,772 $29,849,669
September 30, 1994 76,486,577 14,423,110
Three-Month Periods Ended
September 30, 1995 $23,252,553 $1,632,321
September 30, 1994 15,208,720 6,860,085
</TABLE>
<PAGE> 7
NOTE II - STOCK OPTIONS
The Company has primarily qualified stock option plans under which options are
granted to employees of the Company at prices which are not less than market
price at the date of grant and which are exercisable over a five-year period,
or over a ten-year period if granted on or after July 25, 1990. On September
30, 1995, outstanding options for Stock Option Plan No. III totalled 87,977
shares with purchase prices ranging from a low of $12.46 to a high of $23.13
and outstanding options for Stock Option Plan No. IV totalled 722,635 shares
with purchase prices ranging from a low of $23.50 to a high of $59.29. All
outstanding shares have been adjusted for the 5% stock dividend declared
February 4, 1995, payable April 28, 1995 to shareholders of record of March 17,
1995.
NOTE III INTERIM ADJUSTMENTS
The preceding summary of financial information for Cincinnati Financial
Corporation and consolidated subsidiaries is unaudited, but the Company
believes that all adjustments (consisting only of normal recurring accruals)
necessary for fair presentation have been made. The results of operations for
interim periods are not necessarily indications of results to be expected for
this year.
<PAGE> 8
ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Premiums earned for the nine months ended September 30, 1995 have increased
$68,737,101 (8%) over the nine months ended September 30, 1994. Also, premiums
earned have increased $23,500,403 (8%) for the three months ended September 30,
1995 over the three months ended September 30, 1994. For the nine-month period
ended September 30, 1995, the growth rate of our property and casualty
subsidiaries is greater than last year on both a gross written and earned
premium basis. For the three-month period ended September 30, 1995, the growth
rate is slightly less on a gross written basis and slightly greater on an
earned premium basis when compared to the third quarter of 1994. The increase
in new business, some rate increases, and lower reinsurance costs were somewhat
offset by the continued softness of the commercial lines market. The premium
volume of our life and health subsidiary has increased 2% for the nine months
ended September 30, 1995 and for the three months ended September 30, 1995
compared to the comparable periods of 1994. The premium growth in our life
subsidiary is the result of slight increases in life and health insurance
sales. For the nine-month and three-month periods ended September 30, 1995,
investment income, net of expenses, has increased $28,034,351 (14%) and
$10,237,377 (16%) when compared with the first nine months and third three
months of 1994, respectively. This increase is the result of the growth of the
investment portfolio. The growth rate is greater than last year because of
higher yields on new investments and on increased cash flow provided by
operating activities.
Realized gains on investments for the nine months ended September 30, 1995
amounted to $31,303,394 compared to $31,504,672 for the nine-month period ended
September 30, 1994, and $7,668,261 for the three-month period ended September
30, 1995 compared to $6,680,050 for the three-month period ended September 30,
1994. The realized gains are predominantly the result of the sale of equity
securities and management's decision to realize the gains and reinvest the
proceeds at higher yields.
Insurance losses and policyholder benefits (net of reinsurance recoveries)
increased $38,847,182 (6%) for the first nine months of 1995 over the same
period in 1994 and increased $8,299,451 (4%) for the third quarter when
compared to the third quarter of 1994. The losses and benefits of the property
and casualty companies have increased $34,307,135 for the nine-month period and
increased $5,650,952 for the third quarter of 1995 compared to the comparable
periods of 1994. The losses for the first nine months and for the third
quarter have increased because of the growth of new business and a higher
incidence of claims. Catastrophe losses were $9.9 million and $20.4 million,
respectively, for the first nine months of 1995 and 1994 and were $5.5 million
and $2.2 million, respectively, for the third quarter of 1995 and 1994. These
losses were substantially lower in the first nine months of 1995 compared to
the first nine months of 1994 because of a lower incidence and severity of
these weather related claims. The losses for the third quarter of 1995
compared to the same quarter of 1994 were higher because of a higher incidence
and severity of claims.
Policyholder benefits of the life insurance subsidiary increased $4,540,047 for
the first nine months of 1995 over the same period of 1994 and increased
$2,648,499 for the third quarter when compared to the third quarter of 1994.
The majority of the nine-month and third quarter increase is the result of a
higher incidence of death and disability income claims and related costs.
<PAGE> 9
Commission expenses increased $7,754,321 for the nine-month period ended
September 30, 1995 compared to the same period for 1994 and increased
$1,151,150 for the third quarter of 1995 compared to the same period in 1994.
The increase is mainly attributable to the increases in new business and the
effects of favorable underwriting results. Other operating expenses increased
$9,615,643 for the nine-month period ended September 30, 1995 compared to the
same period for 1994 and increased $4,458,468 for the third quarter of 1995
compared to the same period in 1994. The increase is the result of general
wage increases and the increase in the number of employees from 1,975 at
December 31, 1993 to 2,250 at September 30, 1995 and the related expenses
associated with the production of new business.
Taxes, licenses and fees decreased $2,335,469 for the first nine months of 1995
compared to the same period for 1994 and decreased $879,176 for the third
quarter when compared to the third quarter of 1994. The decrease in taxes is
the result of lower state corporate income taxes and state guaranty fund
assessments.
Provision for income taxes, current and deferred, have increased by $15,844,994
for the first nine months of 1995 compared to the first nine months of 1994 and
have increased $9,055,760 for the third quarter of 1995 compared to the third
quarter of 1994. The increase in taxes for the first nine months and the third
three months is attributable to higher operating income in our property
casualty companies and higher taxable investment income and net dividends
received for the corporation. The Company did not incur an alternative minimum
tax in 1995 or 1994.
Notes payable increased $68,533,660 for the first nine months and increased
$563,426 for the third quarter of 1995. The Company borrowed the additional
funds to pay for the increased losses in the property and casualty companies
instead of paying the losses from cash flow because the Company decided to take
advantage of the investment opportunities that were available at that time.
Unrealized appreciation will fluctuate with changes in the overall fixed
maturities and equity securities market. Changes in unrealized appreciation
are discussed in Note 1. The Company's equity investment portfolio continues
to be primarily investments in common stocks of public utility companies and
financial institutions.
<PAGE> 10
PART II
OTHER INFORMATION
ITEM 1. Legal Proceedings
-----------------
The Company is involved in no material litigation other than routine litigation
incident to the nature of the insurance industry.
ITEM 2. Changes in Securities
---------------------
There have been no material changes in securities during the third quarter.
ITEM 3. Defaults Upon Senior Securities
-------------------------------
The Company has not defaulted on any interest or principal payment, and no
arrearage in the payment of dividends has occurred.
ITEM 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
No special matters were voted upon by security holders during the third
quarter.
ITEM 5. Other Information
-----------------
No matters to report.
ITEM 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits included:
Exhibit 11--Statement re Computation of Per Share
Earnings.
Exhibit 27--Financial Data Schedule
(b) The Company was not required to file any reports on
Form 8-K during the quarter ended September 30, 1995.
Signature
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.
CINCINNATI FINANCIAL CORPORATION
--------------------------------
(Registrant)
Date November 13, 1995
----------------------------
By/s/ Robert J. Driehaus
--------------------------------
R. J. Driehaus
Financial Vice President & Treasurer
(Principal Financial Officer)
<PAGE> 11
EXHIBIT 11
CINCINNATI FINANCIAL CORPORATION
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(in thousands except for per share amounts)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30
----------------- -----------------------
1995 1994* 1995 1994*
---- ---- ---- ----
<S> <C> <C> <C> <C>
Weighted average shares outstanding 53,010 52,865 53,034 52,894
Equivalent shares assumed to be
outstanding for:
Stock options 199 246 204 244
Convertible debentures 1,707 1,707 1,707 1,707
----- ----- ----- -----
Number of shares for primary
computation 54,916 54,818 54,945 54,845
Other dilutive equivalent shares--
stock options 7 -0- 7 -0-
------ ------- ------ ------
Number of shares assuming full
dilution 54,923 54,818 54,952 54,845
====== ====== ====== ======
Net income $176,988 $155,134 $58,603 $47,552
Interest on convertible debentures--
net of tax 2,145 2,145 715 715
--------- --------- ------- -------
Net income for per share computation $179,133 $157,279 $59,318 $48,267
======== ======== ======= =======
Earnings per share:
Total Primary $ 3.26 $ 2.87 $ 1.08 $ .88
======== ======== ======= =======
Fully Diluted $ 3.26 $ 2.87 $ 1.08 $ .88
======== ======== ======= =======
</TABLE>
*Common shares and their equivalent have been adjusted to reflect the 5% stock
dividend effective March 17, 1995.
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<DEBT-HELD-FOR-SALE> 2,338,778,440
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 2,684,397,387
<MORTGAGE> 5,572,693
<REAL-ESTATE> 15,505,556
<TOTAL-INVEST> 5,063,017,177<F1>
<CASH> 38,877,201
<RECOVER-REINSURE> 1,064,896
<DEFERRED-ACQUISITION> 118,119,217
<TOTAL-ASSETS> 5,656,653,726
<POLICY-LOSSES> 2,048,474,294<F2>
<UNEARNED-PREMIUMS> 406,540,218
<POLICY-OTHER> 47,603,012<F2>
<POLICY-HOLDER-FUNDS> 6,178,324
<NOTES-PAYABLE> 277,649,310<F3>
<COMMON> 104,120,301<F4>
0
0
<OTHER-SE> 2,289,090,419<F4>
<TOTAL-LIABILITY-AND-EQUITY> 5,656,653,726
973,697,136
<INVESTMENT-INCOME> 223,550,773
<INVESTMENT-GAINS> 31,303,394
<OTHER-INCOME> 7,816,844
<BENEFITS> 712,086,070
<UNDERWRITING-AMORTIZATION> 57,578,110<F5>
<UNDERWRITING-OTHER> 236,278,319<F5>
<INCOME-PRETAX> 230,425,648
<INCOME-TAX> 53,437,569
<INCOME-CONTINUING> 176,988,079
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 176,988,079
<EPS-PRIMARY> 3.26
<EPS-DILUTED> 3.26
<RESERVE-OPEN> 1,510,150,293<F6>
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 1,655,907,887<F7>
<CUMULATIVE-DEFICIENCY> 0
<FN>
<F1>Equals the sum of Fixed Maturities, Equity Securities and other Invested Assets
<F2>Equals the sum of Life Policy Reserves and Losses and Loss Expenses Less the
Life Company Liability for Supplementary Contracts without Contingencies of
$2,765,185 which is classified as Other Policyholder Funds
<F3>Equals the sum of Notes Payable and the 5-1/2% Convertible Senior Debenture
<F4>Equals the Total Shareholders Equity
<F5>Equals the Sum of Commissions, Other Operating Expenses, Taxes Licenses and
Fees, Increase in deferred acquisition costs, Interest expenses other expenses
<F6>Equals the reserve for unpaid claims for the property casualty subsidiaries
less loss checks payable as of December 31, 1994
<F7>Equals the reserve for unpaid claims for the property casualty
subsidiaries less loss checks payable as of September 30, 1995
</FN>
</TABLE>
