<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
For the Fiscal Year Ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
Commission File Number 1-7067
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
(Full title of the Plan)
4041 ESSEN LANE
BATON ROUGE, LOUISIANA 70809
(Address of the Plan)
UNITED COMPANIES FINANCIAL CORPORATION
(Name of Issuer)
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page Number
-----------
(a) Financial Statements and Supplemental Schedules:
<S> <C> <C>
Independent Auditors' Report 2
Statement of Net Assets Available for Benefits with
Supplemental Fund Information - December 31, 1995 3
Statement of Net Assets Available for Benefits with
Supplemental Fund Information - December 31, 1994 4
Statement of Changes in Net Assets Available for Benefits with
Supplemental Fund Information - for the year ended
December 31, 1995 5
Statement of Changes in Net Assets Available for Benefits with
Supplemental Fund Information - for the year ended
December 31, 1994 6
Statement of Changes in Net Assets Available for Benefits with
Supplemental Fund Information - for the year ended
December 31, 1993 7
Notes to Financial Statements 8
Item 27a - Schedule of Assets Held for Investment Purposes -
December 31, 1995 12
Item 27b - Schedule of Loans or Fixed Income Obligations -
December 31, 1995 13
Item 27d - Schedule of Reportable Transactions - for the year
ended December 31, 1995 14
(b) Exhibits:
Independent Auditors' Consent 17
</TABLE>
1
<PAGE> 3
INDEPENDENT AUDITORS' REPORT
To the Trustee and Participants of
United Companies Financial Corporation
Employees' Savings Plan
Baton Rouge, Louisiana
We have audited the accompanying statements of net assets available for
benefits of United Companies Financial Corporation Employees' Savings Plan
(the "Plan") as of December 31, 1995 and 1994, and the related statements
of changes in net assets available for benefits for each of the three years in
the period ended December 31, 1995. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31,
1995 and 1994 and the changes in net assets available for benefits for each of
the three years in the period ended December 31, 1995 in conformity with
generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in
the Table of Contents are presented for the purpose of additional analysis and
are not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental information by fund in the statements of net assets
available for benefits and the statements of changes in net assets available
for benefits is presented for the purpose of additional analysis rather than to
present the net assets available for benefits and changes in net assets
available for benefits of the individual funds. The supplemental schedules and
supplemental information by fund is the responsibility of the Plan's
management. Such supplemental schedules and supplemental information by fund
have been subjected to the auditing procedures applied in our audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects when considered in relation to the basic financial statements
taken as a whole.
/s/ DELOITTE & TOUCHE LLP
Baton Rouge, Louisiana
June 21, 1996
2
<PAGE> 4
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE
FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
December 31, 1995
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
-----------------------------------------------------------------
UCFC Government
Stock Equity Income Guaranteed
Combined Fund Fund Fund Fund
------------ ------------ ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
UCFC Common Stock;
$2 par value . . . . . . . . . $ 15,076,759 $ 15,076,759
Equity Mutual Fund . . . . . . . . 803,525 $ 803,525
Investment in The Principal
General Fund Account . . . . . 546,070 $ 546,070
Money-market Fund . . . . . . . . 1,850 1,850
Investment in The Principal
Pooled Separate Accounts . . . 2,984,289 $ 215,279
Participant loans . . . . . . . . 412,222
------------ ------------ ----------- ------------- -----------
Total investments . . . . . . . 19,824,715 15,078,609 803,525 215,279 546,070
Contributions receivable . . . . . . 93,802 68,806 2,130 1,078 3,296
Dividends and interest receivable . . 28,355 28,355
Other receivables . . . . . . . . . . 6,721
------------ ------------ ----------- ------------- -----------
Total assets . . . . . . . . . 19,953,593 15,175,770 805,655 216,357 549,366
------------ ------------ ----------- ------------- -----------
LIABILITIES
Other liabilities . . . . . . . . . . 4,179 4,179
------------ ------------ ----------- ------------- -----------
Net assets available for benefits . . $ 19,949,414 $ 15,171,591 $ 805,655 $ 216,357 $ 549,366
============ ============ =========== ============= ===========
</TABLE>
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
-----------------------------------------------------------------------------------
Stock
Emphasis Growth Stock Money-
Balanced Stock Index market Loan
Fund Fund Fund Fund Fund
------------ ------------ ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
UCFC Common Stock;
$2 par value . . . . . . . . .
Equity Mutual Fund . . . . . . . .
Investment in The Principal
General Fund Account . . . . .
Money-market Fund . . . . . . . .
Investment in The Principal
Pooled Separate Accounts . . . $ 840,681 $ 845,910 $ 519,375 $ 563,044
Participant loans . . . . . . . . $ 412,222
------------ ------------ ----------- ------------- -----------
Total investments . . . . . . . 840,681 845,910 519,375 563,044 412,222
Contributions receivable . . . . . . 5,012 7,587 4,422 1,471
Dividends and interest receivable . .
Other receivables . . . . . . . . . . 6,721
------------ ------------ ----------- ------------- -----------
Total assets . . . . . . . . . 845,693 853,497 523,797 564,515 418,943
------------ ------------ ----------- ------------- -----------
LIABILITIES
Other liabilities . . . . . . . . . .
------------ ------------ ----------- ------------- -----------
Net assets available for benefits . . $ 845,693 $ 853,497 $ 523,797 $ 564,515 $ 418,943
============ ============ =========== ============= ===========
</TABLE>
See notes to financial statements.
3
<PAGE> 5
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE
FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
December 31, 1994
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
------------------------------------------------------------------------------------------
UCFC Government
Stock Equity Income Guaranteed
Combined Fund Fund Fund Fund
------------ ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
UCFC Common Stock;
$2 par value $ 7,573,116 $ 7,573,116
Equity Mutual Fund 690,986 $ 690,986
Investment in The Principal
General Fund Account 283,159 $ 283,159
Money-market Fund 40,159 40,159
Investment in The Principal
Pooled Separate Accounts 2,240,024 195,329 $ 170,147
Participant loans 473,368
------------ ----------- ----------- ------------- -----------
Total investments 11,300,812 7,808,604 690,986 170,147 283,159
Contributions receivable 78,983 56,310 2,243 1,214 3,050
Dividends and interest receivable 25,388 25,388
Other receivables 6,293
------------ ----------- ----------- ------------- -----------
Total assets 11,411,476 7,890,302 693,229 171,361 286,209
------------ ----------- ----------- ------------- -----------
LIABILITIES
Other liabilities 1,948 1,948
------------ ----------- ----------- ------------- -----------
Net assets available for benefits $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209
============ =========== =========== ============= ===========
</TABLE>
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
------------------------------------------------------------------------------------------
Stock
Emphasis Growth Stock Money-
Balanced Stock Index market Loan
Fund Fund Fund Fund Fund
------------ ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
UCFC Common Stock;
$2 par value
Equity Mutual Fund
Investment in The Principal
General Fund Account
Money-market Fund
Investment in The Principal
Pooled Separate Accounts $ 508,738 $ 564,452 $ 272,087 $ 529,271
Participant loans $ 473,368
------------ ----------- ----------- ------------- -----------
Total investments 508,738 564,452 272,087 529,271 473,368
Contributions receivable 5,579 6,350 3,590 647
Dividends and interest receivable
Other receivables 6,293
------------ ----------- ----------- ------------- -----------
Total assets 514,317 570,802 275,677 529,918 479,661
------------ ----------- ----------- ------------- -----------
LIABILITIES
Other liabilities
------------ ----------- ----------- ------------- -----------
Net assets available for benefits $ 514,317 $ 570,802 $ 275,677 $ 529,918 $ 479,661
============ =========== =========== ============= ===========
</TABLE>
See notes to financial statements.
4
<PAGE> 6
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
For the year ended December 31, 1995
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
-------------------------------------------------------------------------------------------
UCFC Government
Stock Equity Income Guaranteed
Combined Fund Fund Fund Fund
------------ ------------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits-
January 1, 1995 . . . . . . . $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209
Additions:
Interest and dividend income . 210,633 129,473 23,145 28,508
Contributions
Employee . . . . . . . . . 1,856,665 936,352 73,359 52,774 121,550
Employer . . . . . . . . . 1,304,713 1,303,072 1,641
------------ ------------- --------- ------------ ------------
Total . . . . . . . . . 3,161,378 2,239,424 73,359 52,774 123,191
Net appreciation
of investments . . . . . . . . 8,377,400 7,662,010 157,523 40,326
------------ ------------- --------- ------------ ------------
Total additions . . . . 11,749,411 10,030,907 254,027 93,100 151,699
------------ ------------- --------- ------------ ------------
Deductions:
Administrative expenses . . . 40,223 29,169 862 768
Distributions to
participants . . . . . . . 3,169,302 2,457,300 67,902 88,162 28,118
------------ ------------- --------- ------------ ------------
Total deductions . . . . 3,209,525 2,486,469 67,902 89,024 28,886
------------ ------------- --------- ------------ ------------
Net transfers between funds . . . - (261,201) (73,699) 40,920 140,344
------------ ------------- --------- ------------ ------------
Net change in net assets
available for benefits . . . . 8,539,886 7,283,237 112,426 44,996 263,157
------------ ------------- --------- ------------ ------------
Net assets available for benefits
December 31, 1995 . . . . . . $ 19,949,414 $ 15,171,591 $ 805,655 $ 216,357 $ 549,366
============ ============= ========= ============ ============
</TABLE>
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
--------------------------------------------------------------------------------------------
Stock
Emphasis Growth Stock Money-
Balanced Stock Index market Loan
Fund Fund Fund Fund Fund
------------ ------------- --------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits
January 1, 1995 . . . . . . . $ 514,317 $ 570,802 $ 275,677 $ 529,918 $ 479,661
Additions:
Interest and dividend income . 29,507
Contributions
Employee . . . . . . . . . 206,513 260,710 159,162 46,245
Employer . . . . . . . . .
------------ ------------- --------- ------------ -------------
Total . . . . . . . . . 206,513 260,710 159,162 46,245
Net appreciation
of investments . . . . . . . . 140,392 200,361 126,410 50,378
------------ ------------- --------- ------------ -------------
Total additions . . . . 346,905 461,071 285,572 96,623 29,507
------------ ------------- --------- ------------ -------------
Deductions:
Administrative expenses . . . 857 853 828 6,886
Distributions to
participants . . . . . . . 62,823 63,505 68,900 265,581 67,011
------------ ------------- --------- ------------ -------------
Total deductions . . . . 63,680 64,358 69,728 272,467 67,011
------------ ------------- --------- ------------ -------------
Net transfers between funds . . . 48,151 (114,018) 32,276 210,441 (23,214)
------------ ------------- --------- ------------ -------------
Net change in net assets
available for benefits . . . . 331,376 282,695 248,120 34,597 (60,718)
------------ ------------- --------- ------------ -------------
Net assets available for benefits
December 31, 1995 . . . . . . $ 845,693 $ 853,497 $ 523,797 $ 564,515 $ 418,943
============ ============= ========= ============ =============
</TABLE>
See notes to financial statements.
5
<PAGE> 7
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
For the year ended December 31, 1994
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
-----------------------------------------------------------------------------------------
UCFC Government
Stock Equity Income Guaranteed
Combined Fund Fund Fund Fund
------------- ------------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits -
January 1, 1994 $ 13,626,777 $ 10,475,596 $ 942,967 $ 339,135 $ 1,637,454
Additions:
Interest and dividend income 191,609 100,444 6,702 54,070
Contributions
Employee 1,557,079 852,005 67,870 41,504 81,041
Employer 1,036,172 1,036,172
------------- ------------- ---------- ---------- ------------
Total 2,593,251 1,888,177 67,870 41,504 81,041
Net appreciation (depreciation)
of investments (2,562,834) (2,624,519) 27,401 3,174
------------- ------------- ---------- ---------- ------------
Total additions 222,026 (635,898) 101,973 44,678 135,111
------------- ------------- ---------- ---------- ------------
Deductions:
Administrative expenses 40,410 38,708 411 426
Distributions to
participants 2,398,865 1,518,401 166,377 64,488 8,694
------------- ------------- ---------- ---------- ------------
Total deductions 2,439,275 1,557,109 166,377 64,899 9,120
------------- ------------- ---------- ---------- ------------
Net transfers between funds - (394,235) (185,334) (147,553) (1,477,236)
------------- ------------- ---------- ---------- ------------
Net change in net assets
available for benefits (2,217,249) (2,587,242) (249,738) (167,774) (1,351,245)
------------- ------------- ---------- ---------- ------------
Net assets available for benefits -
December 31, 1994 $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209
============= ============= ========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
-----------------------------------------------------------------------------------------
Stock
Emphasis Growth Stock Money-
Balanced Stock Index market Loan
Fund Fund Fund Fund Fund
------------- ------------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits -
January 1, 1994 $ 21,201 $ 2,144 $ 572 $ 97,290 $ 110,418
Additions:
Interest and dividend income 30,393
Contributions
Employee 202,557 159,409 114,639 38,054
Employer
------------- ------------- ---------- ---------- ------------
Total 202,557 159,409 114,639 38,054 -
Net appreciation (depreciation)
of investments (2,179) 1,083 1,921 30,285
------------- ------------- ---------- ---------- ------------
Total additions 200,378 160,492 116,560 68,339 30,393
------------- ------------- ---------- ---------- ------------
Deductions:
Administrative expenses 534 450 394 (513)
Distributions to
participants 21,279 3,876 17,684 577,439 20,627
------------- ------------- ---------- ---------- ------------
Total deductions 21,813 4,326 18,078 576,926 20,627
------------- ------------- ---------- ---------- ------------
Net transfers between funds 314,551 412,492 176,623 941,215 359,477
------------- ------------- ---------- ---------- ------------
Net change in net assets
available for benefits 493,116 568,658 275,105 432,628 369,243
------------- ------------- ---------- ---------- ------------
Net assets available for benefits -
December 31, 1994 $ 514,317 $ 570,802 $ 275,677 $ 529,918 $ 479,661
============= ============= ========== ========== ============
</TABLE>
See notes to financial statements.
6
<PAGE> 8
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
For the year ended December 31, 1993
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
---------------------------------------------------------------------------------
UCFC Government
Stock Equity Income Guaranteed
Combined Fund Fund Fund Fund
------------- ------------ ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits -
January 1, 1993 $ 4,617,261 $ 2,536,564 $ 554,237 $ 147,326 $ 1,202,963
Additions:
Interest and dividend income 212,074 97,877 19,454 16,642 65,438
Contributions
Employee 1,031,768 491,765 187,917 69,996 208,199
Employer 367,580 367,908 (328)
------------- ------------ ---------- ---------- -----------
Total 1,399,348 859,673 187,917 69,996 207,871
Reimbursement of
administrative expenses 997 577 122 29 268
Net appreciation (depreciation)
of investments 8,662,788 8,596,721 66,474 (726)
------------- ------------ ---------- ---------- -----------
Total additions 10,275,207 9,554,848 273,967 85,941 273,577
------------- ------------ ---------- ---------- -----------
Deductions:
Administrative expenses 104,914 58,284 12,591 6,105 19,937
Distributions to
participants 1,160,777 800,301 82,961 30,044 227,616
------------- ------------ ---------- ---------- -----------
Total deductions 1,265,691 858,585 95,552 36,149 247,553
------------- ------------ ---------- ---------- -----------
Net transfers between funds - (757,231) 210,315 142,017 408,467
------------- ------------ ---------- ---------- -----------
Net change in net assets
available for benefits 9,009,516 7,939,032 388,730 191,809 434,491
------------- ------------ ---------- ---------- -----------
Net assets available for benefits -
December 31, 1993 $ 13,626,777 $ 10,475,596 $ 942,967 $ 339,135 $ 1,637,454
============= ============ ========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
---------------------------------------------------------------------------------
Stock
Emphasis Growth Stock Money-
Balanced Stock Index market Loan
Fund Fund Fund Fund Fund
------------- ------------ ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits -
January 1, 1993 $ 6,763 $ 169,408
Additions:
Interest and dividend income 1,317 11,346
Contributions
Employee $ 21,155 $ 2,122 $ 572 50,042
Employer
------------- ------------ ---------- ---------- -----------
Total 21,155 2,122 572 50,042 -
Reimbursement of
administrative expenses 1
Net appreciation (depreciation)
of investments 45 22 252
------------- ------------ ---------- ---------- -----------
Total additions 21,201 2,144 572 51,611 11,346
------------- ------------ ---------- ---------- -----------
Deductions:
Administrative expenses 2,011 5,986
Distributions to
participants 874 18,981
------------- ------------ ---------- ---------- -----------
Total deductions - - - 2,885 24,967
------------- ------------ ---------- ---------- -----------
Net transfers between funds 41,801 (45,369)
------------- ------------ ---------- ---------- -----------
Net change in net assets
available for benefits 21,201 2,144 572 90,527 (58,990)
------------- ------------ ---------- ---------- -----------
Net assets available for benefits -
December 31, 1993 $ 21,201 $ 2,144 $ 572 $ 97,290 $ 110,418
============= ============ ========== ========== ===========
</TABLE>
See notes to financial statements.
7
<PAGE> 9
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the United Companies Financial Corporation
Employees' Savings Plan (the "Plan") are prepared on the accrual basis.
Investments are reported at fair value. Fair value for investments in the UCFC
Stock Fund, the Equity Fund, the Government Income Fund, the Guaranteed Fund,
the Money-market Fund, the Stock Emphasis Balanced Fund, the Growth Stock Fund,
and the Stock Index Fund, is determined by reference to market prices on the
valuation date when available. The guaranteed group annuity contracts and
participant loans are valued at cost, which approximates fair value.
2. ELIGIBILITY, CONTRIBUTIONS AND INVESTMENT PROGRAMS
The following description of the Plan's provisions provides general
information regarding eligibility, contributions and investment programs.
Participants should refer to the Plan document for a more complete description
of the Plan's provisions.
Employees are eligible to participate in the Plan provided they have
completed one year of service and have attained the age of twenty-one prior to
the election date. The employee must be a full-time employee (working at least
30 hours a week) and complete 1,000 hours of service during the one year
waiting period. Participating employees may revise the direction of their
contribution once per each calendar year quarter. UCFC provides matching
contributions of a percentage of the participant's contribution up to 5% of the
participant's salary. Salary for purposes of the Plan is limited to $150,000
for any Plan year, adjusted for cost of living increases. From July 1, 1992 to
December 31, 1993, the matching employer contributions were 50% of the
participant's contribution deferral and were invested in UCFC stock. Beginning
January 1, 1994, the matching employer contributions are 100% of the
participant's contribution deferral and were invested in UCFC stock.
Participants are 100% vested in employee contributions ("elective
deferrals") and earnings thereon. Vesting in the employer contributions and
earnings thereon is based on years of service. Participants generally have no
vesting rights until completion of five (5) years of service with the Company
at which time they will become 100% vested in employer matching contributions.
The non-vested portion of a participant's account will be forfeited upon
distribution of the participant's vested portion or incurring 5 consecutive
one-year breaks in service. Amounts forfeited may be used to reduce the
employer contributions in the following Plan year.
Employee contributions are supplemented by the matching employer
contributions, and the employee contributions are invested as directed by the
participant in one or more of the following eight funds:
(a) UCFC Stock Fund - Contributions to this fund are invested
primarily in $2 par value common stock of United Companies
Financial Corporation ("UCFC").
(b) Equity Fund - Contributions to this fund are invested
primarily in a professionally managed and diversified
portfolio of common stocks of high quality companies.
8
<PAGE> 10
(c) Government Income Fund - Contributions to this fund are
invested in pooled separate accounts of Principal Mutual Life
Insurance Company, primarily in obligations issued or
guaranteed by the U.S. Government or its agencies.
(d) Guaranteed Fund - Contributions to this fund are invested in
the general account of Principal Mutual Life Insurance Company
at a guaranteed interest rate for a specified period of time.
(e) Stock Emphasis Balanced Fund - Contributions to this fund are
invested in pooled separate accounts of Principal Mutual Life
Insurance Company, weighted toward equity accounts.
(f) Growth Stock Fund - Contributions to this fund are invested in
pooled separate accounts of Principal Mutual Life Insurance
Company, primarily in common stocks of large established
companies whose earnings are expected to grow at above average
rates.
(g) Stock Index Fund - Contributions to this fund are in pooled
separate accounts of Principal Mutual Life Insurance Company,
invested in the common stock of those companies included in
the Standard & Poor's 500 Stock Index.
(h) Money-market Fund - Contributions to this fund are invested in
pooled separate accounts of Principal Mutual Life Insurance
Company, primarily in money market instruments.
Investment options (c), (e), (f), (g) and (h) are offered through a
pooled separate account, The Principal Pooled Separate Account, and are
classified as such in the statement of financial condition.
The Plan allows participants to borrow from the Plan up to 50% of each
participant's vested interest in the Plan. Participant loans are considered
another investment option of the Plan and require the approval of the Plan
Administrator. Loan payments, including principal and interest, must be made
no less frequently than quarterly, with level amortization over the term of the
loan. The maximum loan term is 5 years.
3. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits
as reflected in the financial statements to Form 5500:
<TABLE>
<CAPTION>
December 31,
---------------------------------------
1995 1994
-------------- --------------
<S> <C> <C>
Net assets available for benefits
per the financial statements . . . . . . . . . . . $ 19,949,414 $ 11,409,528
Accrued dividend income . . . . . . . . . . . . . . . . (28,355) (25,388)
Accrued fees payable . . . . . . . . . . . . . . . . . 4,179 1,948
-------------- --------------
Net assets available for benefits
per Form 5500 . . . . . . . . . . . . . . . . . . $ 19,925,238 $ 11,386,088
============== ==============
</TABLE>
9
<PAGE> 11
The following is a reconciliation of changes in net assets according to
the financial statements to Form 5500:
<TABLE>
<CAPTION>
Year Ended
December 31,
1995
---------------
<S> <C>
Changes in net assets
per the financial statements . . . . . . . . .$ 8,539,886
Add: Accrued dividend income,
December 31, 1994 . . . . . . . . . . . . . 25,388
Accrued fees payable,
December 31, 1995 . . . . . . . . . . . . . 4,179
Less: Accrued dividend income
December 31, 1995 . . . . . . . . . . . . . (28,355)
Accrued fees payable,
December 31, 1994 . . . . . . . . . . . . . (1,948)
---------------
Changes in net assets
per Form 5500 . . . . . . . . . . . . . . . . .$ 8,539,150
===============
</TABLE>
4. INCOME TAXES
A determination letter dated August 10, 1988 has been received from the
Internal Revenue Service to the effect that the Plan as currently in effect is
qualified as to form under Section 401(a) of the Code; the trust is exempt from
Federal income tax under Section 501(a) of the Code; and employer contributions
paid to the trust under the Plan will be allowable to the Employer as Federal
income tax deductions subject to the conditions and limitations of Section 404
of the Code. It is intended that the Plan, as modified by the provisions of
the Tax Reform Act of 1986, will continue to meet the requirements of Section
401(a) of the Code. Accordingly, no provisions for Federal income taxes have
been made in the accompanying financial statements.
10
<PAGE> 12
5. OTHER
The following represents investments in excess of 5 percent of the
current value of net assets available for benefits as of December 31, 1995 and
1994:
<TABLE>
<CAPTION>
Investment December 31, 1995
- ---------- -----------------
<S> <C>
UCFC Common Stock $ 15,076,759
Investment December 31, 1994
- ---------- -----------------
UCFC Common Stock $ 7,573,116
Tower Capital Appreciation Mutual Fund $ 690,986
</TABLE>
11
<PAGE> 13
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
- ----------------------------------------------------------
<TABLE>
<CAPTION>
IDENTITY DESCRIPTION CURRENT
OF ISSUE OF INVESTMENT COST VALUE
---------------------- ---------------------------- --------------- ---------------
<S> <C> <C> <C> <C>
* United Companies United Companies
Financial Corporation Financial Corporation,
$2 par value common stock,
571,630.7 shares $ 4,918,086 $ 15,076,759
Hibernia National Bank Tower Capital Appreciation
Mutual Fund 625,295 803,525
Principal Mutual Guaranteed Account
Life Insurance Company 546,070 546,070
Principal Mutual Pooled Separate Accounts
Life Insurance Company 2,527,119 2,984,289
Dreyfuss Investments Government Cash Management
Fund 1,850 1,850
Participant Loans Range of Interest Rates
From 7.0% to 12.0% - 412,222
--------------- ---------------
$ 8,618,420 $ 19,824,715
=============== ===============
</TABLE>
*Denotes "Exempt related party transaction".
12
<PAGE> 14
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
DECEMBER 31, 1995
- --------------------------------------------------------
<TABLE>
<CAPTION>
Description of Loan Amount Received Amount
------------------------------------------------- During 1995 Unpaid Overdue
Loan Maturity Interest Collateral -------------------- Balance ---------------------
Date Date Rate Amount Principal Interest at 12/31/95 Principal Interest
------- -------- -------- ---------- --------- -------- ----------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8/15/94 10/29/95 7.0% $9,500 $1,314 $377 $7,588 $7,588 -
</TABLE>
13
<PAGE> 15
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
- ----------------------------------------------
<TABLE>
<CAPTION>
Total Price
at
Identity of Description Transaction Number of Net
Party Involved of Asset Date Transactions Gain
- --------------------- --------------------------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
Purchase Transactions
- ---------------------
United Companies United Companies
Financial Corporation Financial Corporation,
$2 par value
common stock $ 2,719,076 144
============ ============
Principal Mutual Pooled Separate Account -
Life Insurance Company Growth Stock Fund $ 407,267 99
============ ============
Principal Mutual Pooled Separate Account -
Life Insurance Company Money-Market Fund $ 298,370 89
============ ============
Selling Transactions
- --------------------
United Companies United Companies
Financial Corporation Financial Corporation
$2 par value
Common Stock $ 3,197,551 125 $ 2,229,118
============ ============ ===========
Principal Mutual Pooled Separate Account -
Life Insurance Company Growth Stock Fund $ 323,843 46 $ 38,537
============ ============ ===========
Principal Mutual Pooled Separate Account
Life Insurance Company Money-Market Fund $ 299,119 57 $ 15,206
============ ============ ===========
</TABLE>
14
<PAGE> 16
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Plan Administrative Committee of the United Companies Financial
Corporation Employees' Savings Plan have duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly authorized.
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
By: /s/ JESSE O. GRIFFIN
Jesse O. Griffin
Sr. Vice President and Controller
Date: June 27, 1996
15
<PAGE> 17
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NO. DESCRIPTION
- --------------------------------
<S> <C>
23 Independent Auditors' Consent
</TABLE>
<PAGE> 1
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-17366 of United Companies Financial Corporation on Form S-8 of our report
dated June 21, 1996, appearing in this Annual Report on Form 11-K of United
Companies Financial Corporation Employees' Savings Plan for the year ended
December 31, 1995.
/s/ DELOITTE & TOUCHE LLP
Baton Rouge, Louisiana
June 27, 1996
17