<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission file number 1-7422
AMERICAN GENERAL FINANCE, INC.
(Exact name of registrant as specified in its charter)
Indiana 35-1313922
(State of Incorporation) (I.R.S. Employer
Identification No.)
601 N.W. Second Street, Evansville, IN 47708
(Address of principal executive offices) (Zip Code)
(812) 424-8031
(Registrant's telephone number, including area code)
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
The registrant meets the conditions set forth in General Instruction
H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with
the reduced disclosure format.
The number of shares outstanding of the registrant's common stock at August
3, 1995 was 2,000,000.
<PAGE>
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
(dollars in thousands)
Revenues
Finance charges $370,104 $301,183 $728,660 $582,624
Insurance 56,465 43,823 110,603 83,227
Other 22,580 15,407 40,634 30,149
Total revenues 449,149 360,413 879,897 696,000
Expenses
Interest expense 130,280 99,782 255,075 192,807
Operating expenses 113,699 94,265 223,090 184,566
Provision for finance
receivable losses 74,454 45,174 146,842 88,254
Insurance losses and loss
adjustment expenses 31,157 23,016 59,801 46,179
Total expenses 349,590 262,237 684,808 511,806
Income before provision for
income taxes 99,559 98,176 195,089 184,194
Provision for Income Taxes 37,154 37,031 72,583 69,887
Net Income $ 62,405 $ 61,145 $122,506 $114,307
See Notes to Condensed Consolidated Financial Statements.
<PAGE>
<PAGE> 3
AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
1995 1994
Assets (dollars in thousands)
Finance receivables, net of unearned
finance charges:
Real estate loans $2,878,993 $2,704,929
Non-real estate loans 2,778,715 2,660,523
Retail sales finance 2,198,699 2,075,380
Credit cards 479,266 479,480
Net finance receivables 8,335,673 7,920,312
Allowance for finance receivable
losses (256,226) (226,226)
Net finance receivables, less allowance
for finance receivable losses 8,079,447 7,694,086
Marketable securities 819,139 702,510
Cash and cash equivalents 97,846 52,729
Goodwill 284,497 289,000
Other assets 247,288 242,403
Total assets $9,528,217 $8,980,728
Liabilities and Shareholder's Equity
Long-term debt $5,136,494 $4,312,932
Short-term notes payable:
Commercial paper 2,112,368 2,609,986
Banks and other 190,409 161,477
Investment certificates 6,246 6,601
Insurance claims and policyholder
liabilities 479,069 466,883
Other liabilities 272,212 191,278
Accrued taxes 27,214 19,831
Total liabilities 8,224,012 7,768,988
Shareholder's equity:
Common stock 1,000 1,000
Additional paid-in capital 616,021 616,021
Net unrealized investment gains (losses) 21,751 (18,407)
Retained earnings 665,433 613,126
Total shareholder's equity 1,304,205 1,211,740
Total liabilities and shareholder's equity $9,528,217 $8,980,728
See Notes to Condensed Consolidated Financial Statements.
<PAGE>
<PAGE> 4
AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
June 30,
1995 1994
(dollars in thousands)
Cash Flows from Operating Activities
Net income $122,506 $114,307
Reconciling adjustments to net cash
provided by operating activities:
Provision for finance receivable losses 146,842 88,254
Depreciation and amortization 59,274 65,164
Deferral of finance receivable
origination costs (40,476) (41,938)
Deferred federal income tax benefit (3,237) (5,819)
Change in other assets and other liabilities 88,032 41,815
Change in insurance claims and
policyholder liabilities 12,186 19,902
Gain on finance receivables sold through
securitization (4,552) -
Other, net (3,353) (324)
Net cash provided by operating activities 377,222 281,361
Cash Flows from Investing Activities
Finance receivables originated or purchased (3,081,031) (2,761,941)
Principal collections on finance receivables 2,447,903 2,175,824
Finance receivables sold through securitization 100,000 -
Marketable securities purchased (93,795) (84,888)
Marketable securities called, matured and sold 40,515 45,847
Other, net (27,820) (7,305)
Net cash used for investing activities (614,228) (632,463)
Cash Flows from Financing Activities
Proceeds from issuance of long-term debt 1,340,325 644,656
Repayment of long-term debt (518,961) (210,377)
Change in investment certificates (355) (684)
Change in short-term notes payable (468,686) 30,213
Dividends paid (70,200) (104,200)
Net cash provided by financing activities 282,123 359,608
Increase in cash and cash equivalents 45,117 8,506
Cash and cash equivalents at beginning of period 52,729 48,374
Cash and cash equivalents at end of period $ 97,846 $ 56,880
Supplemental Disclosure of Cash Flow Information
Income taxes paid $ 76,495 $ 74,016
Interest paid $237,505 $190,526
See Notes to Condensed Consolidated Financial Statements.
<PAGE>
<PAGE> 5
AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
June 30, 1995
Note 1. Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim periods and include the accounts of American General Finance,
Inc. (AGFI) and its subsidiaries (the Company). The subsidiaries are
wholly-owned, and all intercompany items have been eliminated. Per share
information is not included because AGFI is a wholly-owned subsidiary of
American General Corporation (American General).
Note 2. Adjustments and Reclassifications
These condensed consolidated financial statements include all adjustments,
consisting only of normal recurring adjustments, considered necessary by
management for a fair presentation of the Company's consolidated financial
position at June 30, 1995 and December 31, 1994, its consolidated results
of operations for the three months and six months ended June 30, 1995 and
1994, and its consolidated cash flows for the six months ended June 30,
1995 and 1994. These condensed consolidated financial statements should be
read in conjunction with the consolidated financial statements and related
notes included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1994.
To conform with the 1995 presentation, certain items in the prior period
have been reclassified.
Note 3. Accounting Changes
In March 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to be Disposed Of." This
statement establishes accounting standards for 1) the impairment of long-
lived assets, certain identifiable intangibles, and goodwill related to
those assets to be held and used in the business, and 2) long-lived assets
and certain identifiable intangibles to be disposed of. This standard is
effective for fiscal years beginning after December 15, 1995, with earlier
application encouraged. Although the Company has not determined when SFAS
121 will be adopted, the Company does not anticipate a material effect on
net income, liquidity, or capital related to the adoption of this standard.
<PAGE>
<PAGE> 6
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
LIQUIDITY AND CAPITAL RESOURCES
Overview
Management believes that the overall sources of cash and liquidity
available to the Company will continue to be sufficient to satisfy its
foreseeable financial obligations and operational requirements.
Operating Activities
Net cash flows from operating activities include the receipt of finance
charges on finance receivables, insurance premiums, and net investment
revenue, the payment of interest on borrowings, operating expenses,
contractual obligations to policyholders, and income taxes, and adjustments
for non-cash items which reconcile net income to net cash from operating
activities. See "Analysis of Operating Results" in Item 2. herein for
information on the Company's revenues and expenses. See the Condensed
Consolidated Statements of Cash Flows included in Item 1. herein for
adjustments for non-cash items which reconcile net income to net cash from
operating activities.
Investing Activities
Net cash flows from investing activities include funding finance
receivables originated or purchased, the Company's primary requirement for
cash, and principal collections on finance receivables, the Company's
primary source of cash. Net cash flows from investing activities also
include finance receivables sold through securitization and marketable
securities purchased and sold by the insurance operations.
Finance receivables originated or purchased increased for the six months
ended June 30, 1995, when compared to the same period in 1994, primarily
due to business development efforts. Principal collections on finance
receivables increased for the six months ended June 30, 1995, when compared
to the same period in 1994, primarily due to the higher level of average
finance receivables net of unearned finance charges (ANR).
On May 17, 1995, the Company sold $100.0 million of finance receivables
through securitization with limited recourse. At June 30, 1995, the amount
of finance receivables sold through securitization remained at $100.0
million. Although the Company continues to service these finance
receivables and maintains the customer relationships, the securitization
was treated as a sale for financial reporting purposes. Accordingly, the
finance receivables sold through securitization are not reflected on the
Company's balance sheet. In addition, securitization of finance
receivables results in effectively recording finance charge revenues and
provision for finance receivable losses on such finance receivables sold in
other revenues.
<PAGE>
<PAGE> 7
Financing Activities
To the extent net cash flows from operating activities do not match net
cash flows from investing activities, the Company adjusts its financing
activities accordingly. The major sources of cash flows from financing
activities include proceeds from issuance of long-term debt and short-term
debt, and the major uses of cash flows from financing activities include
repayments of maturing debt and dividend payments to the Company's
shareholder. The ability of AGFI to pay dividends is substantially
dependent on the receipt of dividends or other funds from its subsidiaries.
The amount of dividends certain subsidiaries may pay is effectively limited
by restrictions contained in certain financing agreements.
The Company's issuances of long-term debt for the six months ended June 30,
1995 reflect the funding of asset growth, the repayment of maturing issues
of long-term interest obligations, and the decrease in short-term notes
payable.
The Company's principal borrowing subsidiary is American General Finance
Corporation (AGFC), a wholly-owned subsidiary of AGFI. AGFC obtains funds
through the issuance of a combination of fixed-rate debt, principally long-
term, and floating-rate debt, principally short-term. The Company's mix of
fixed-rate and floating-rate debt is determined by management based, in
part, on the nature of the assets being supported. The Company limits its
exposure to market interest rate increases by fixing interest rates that it
pays for term periods. The primary means by which the Company accomplishes
this is through the issuance of fixed-rate debt. To supplement fixed-rate
debt issuances, AGFC also uses interest conversion agreements and has used
options on interest conversion agreements to synthetically create fixed-
rate debt by altering the nature of floating-rate debt, thereby limiting
its exposure to interest rate movements.
The Company currently manages capital to maintain its ratio of debt to
tangible equity at approximately 7.5:1. Tangible equity is calculated as
shareholder's equity less goodwill and net unrealized investment gains or
losses on fixed-maturity marketable securities. Managing capital to the
debt to tangible equity ratio resulted in an increase in the debt to equity
ratio at June 30, 1995 when compared to June 30, 1994, primarily due to
asset growth and goodwill amortization, partially offset by net unrealized
investment gains on fixed-maturity marketable securities.
Credit Facilities
Credit facilities are maintained to support the issuance of commercial
paper and to provide an additional source of funds for operating
requirements. At June 30, 1995, the Company had a committed credit
facility of $500.0 million and was an eligible borrower under $2.8 billion
of committed credit facilities extended to American General and certain of
its subsidiaries. The annual commitment fees for all committed facilities
ranged from .07% to .11%. The Company pays commitment fees for the
committed credit facilities extended to American General and certain of its
subsidiaries only on its allocated portion which at June 30, 1995 was $1.6
billion. At June 30, 1995, the Company also had $586.0 million of
uncommitted credit facilities and was an eligible borrower under $185.0
million of uncommitted credit facilities extended to American General and
certain of its subsidiaries. Available borrowings under all facilities are
reduced by any amounts outstanding thereunder. At June 30, 1995, Company
borrowings outstanding under all credit facilities totalled $343.9 million
with remaining availability to the Company of $3.3 billion in committed
facilities and $427.1 million in uncommitted facilities.
<PAGE>
<PAGE> 8
SELECTED FINANCIAL INFORMATION
The following table sets forth certain selected financial information of
the Company for the periods indicated:
At or for the At or for the
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
(dollars in thousands)
ANR - average finance
receivables net of
unearned finance charges $8,262,758 $6,867,236 $8,158,989 $6,742,042
Average borrowings $7,354,140 $6,094,798 $7,265,661 $5,987,445
Yield - finance charges
(annualized) as a
percentage of ANR 17.95% 17.57% 17.95% 17.37%
Borrowing cost - interest
expense (annualized) as
a percentage of average
borrowings 7.08% 6.55% 7.03% 6.45%
Spread between yield
and borrowing cost 10.87% 11.02% 10.92% 10.92%
Insurance revenues
(annualized) as a
percentage of ANR 2.73% 2.55% 2.71% 2.47%
Operating expenses
(annualized) as a
percentage of ANR 5.50% 5.49% 5.47% 5.48%
Return on average assets
(annualized) 2.64% 3.09% 2.63% 2.93%
Return on average equity
(annualized) 19.27% 21.70% 19.30% 20.30%
Charge-off ratio -
net charge-offs
(annualized) as a
percentage of ANR 2.94% 2.20% 2.88% 2.20%
Allowance ratio -
allowance for finance
receivable losses as a
percentage of net
finance receivables - - 3.07% 2.81%
<PAGE>
<PAGE> 9
Selected Financial Information (Continued)
At or for the
Six Months Ended
June 30,
1995 1994
Ratio of earnings to fixed charges (refer to
Exhibit 12 herein for calculations) 1.75 1.93
Delinquency ratio - finance receivables any
portion of which was 60 days or more past
due as a percentage of related receivables
(including unearned finance charges and
excluding deferred origination costs, a
fair value adjustment on finance receivables,
and accrued interest) 3.04% 2.49%
Debt to tangible equity ratio - debt to
shareholder's equity less goodwill and
net unrealized investment gains or losses
on fixed-maturity marketable securities 7.46 7.49
Debt to equity ratio 5.71 5.57
ANALYSIS OF OPERATING RESULTS
Net income increased $1.3 million, or 2%, for the three months ended June
30, 1995 and $8.2 million, or 7%, for the six months ended June 30, 1995
when compared to the same periods in 1994.
Finance Charges
Finance charge revenues increased $68.9 million, or 23%, for the three
months ended June 30, 1995 and $146.0 million, or 25%, for the six months
ended June 30, 1995 when compared to the same periods in 1994, due to
increases in ANR and yields. ANR increased primarily due to growth in the
retail sales finance and loan portfolios resulting from business
development efforts. The yield during the three months and six months
ended June 30, 1995 increased when compared to the same periods in 1994
primarily due to higher yield on loans as a result of the amortization of
premiums on certain purchased finance receivables which were fully
amortized in the second quarter of 1994. The increase in yield for the six
months ended June 30, 1995 when compared to the same period in 1994 also
reflected higher yield on retail sales finance and credit cards.
<PAGE>
<PAGE> 10
Insurance Revenues
Insurance revenues increased $12.6 million, or 29%, for the three months
ended June 30, 1995 and $27.4 million, or 33%, for the six months ended
June 30, 1995 when compared to the same periods in 1994, primarily due to
an increase in earned premiums. Earned premiums increased primarily due to
increased written premiums in prior periods. Written premiums increased
primarily due to increased loan volumes and the introduction of a new
insurance product.
Other Revenues
Other revenues increased $7.2 million, or 47%, for the three months ended
June 30, 1995 and $10.5 million, or 35%, for the six months ended June 30,
1995 when compared to the same periods in 1994, primarily due to the gain
on finance receivables sold through securitization and an increase in
investment revenue. The increase in investment revenue reflects growth in
invested assets, partially offset by a decline in investment portfolio
yields. Investment portfolio yields declined primarily due to prepayments
of higher yielding investments and lower reinvestment rates in recent
years.
Interest Expense
Interest expense increased $30.5 million, or 31%, for the three months
ended June 30, 1995 and $62.3 million, or 32%, for the six months ended
June 30, 1995 when compared to the same periods in 1994, due to increases
in average borrowings and borrowing cost. Average borrowings for the three
months and six months ended June 30, 1995 increased when compared to the
same periods in 1994 primarily to fund asset growth. The borrowing cost
for the three months and six months ended June 30, 1995 increased when
compared to the same periods in 1994 due to an increase in short-term
borrowing cost, partially offset by a decrease in long-term borrowing cost.
The increase in borrowing cost contributed to a decrease in the ratio of
earnings to fixed charges for the six months ended June 30, 1995 when
compared to the same period in 1994.
Operating Expenses
Operating expenses increased $19.4 million, or 21%, for the three months
ended June 30, 1995 and $38.5 million, or 21%, for the six months ended
June 30, 1995 when compared to the same periods in 1994, primarily due to
an increase in salaries expense reflecting operational staffing increases
to support the Company's growth.
Provision for Finance Receivable Losses
Provision for finance receivable losses increased $29.3 million, or 65%,
for the three months ended June 30, 1995 and $58.6 million, or 66%, for the
six months ended June 30, 1995 when compared to the same periods in 1994,
due to increases in net charge-offs and amounts provided for the allowance
for finance receivable losses. Net charge-offs increased due to the
<PAGE>
<PAGE> 11
increases in the charge-off ratio and ANR. Charge-off ratios increased due
to the increase in such ratio on loans, retail sales finance, and credit
cards. The charge-off ratio on loans increased primarily due to the
increase in such ratio on non-real estate loans. The charge-off ratio on
retail sales finance increased primarily due to the increase in charge-off
ratio on private label and the increased proportion of private label in the
retail sales finance portfolio. Amounts provided for the allowance for
finance receivable losses increased primarily to bring the balance to
appropriate levels based upon the balance of finance receivables, the
portfolio mix, and the trends in delinquency, net charge-offs, and the
economic climate.
Insurance Losses and Loss Adjustment Expenses
Insurance losses and loss adjustment expenses increased $8.1 million, or
35%, for the three months ended June 30, 1995 and $13.6 million, or 29%,
for the six months ended June 30, 1995 when compared to the same periods in
1994, primarily due to an increase in claims and reserves, resulting from
increased insurance premiums written. The increase in insurance losses and
loss adjustment expenses for the six months ended June 30, 1995 when
compared to the same period in 1994, was partially offset by the effect of
improved loss ratios.
Provision for Income Taxes
Provision for income taxes increased $.1 million, for the three months
ended June 30, 1995 and $2.7 million, or 4%, for the six months ended June
30, 1995 when compared to the same periods in 1994, primarily due to higher
taxable income.
<PAGE>
<PAGE> 12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Other than the lawsuits or proceedings disclosed previously, the Company is
a defendant in various other lawsuits and proceedings arising in the normal
course of business. Some of these lawsuits and proceedings arise in
jurisdictions such as Alabama that permit punitive damages disproportionate
to the actual damages alleged. Although no assurances can be given and no
determination can be made at this time as to the outcome of any particular
lawsuit or proceeding, the Company believes that there are meritorious
defenses for all of these claims and is defending them vigorously. The
Company also believes that the total amounts that would ultimately be paid,
if any, arising from these claims would have no material effect on the
Company's consolidated results of operations and consolidated financial
position.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
(12) Computation of ratio of earnings to fixed charges.
(27) Financial Data Schedule.
(b) Reports on Form 8-K.
No Current Reports on Form 8-K were filed during the second quarter
of 1995.
<PAGE>
<PAGE> 13
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.
AMERICAN GENERAL FINANCE, INC.
(Registrant)
Date: August 3, 1995 By /s/ Philip M. Hanley
Philip M. Hanley
Senior Vice President and Chief
Financial Officer
(Duly Authorized Officer and Principal
Financial Officer)
<PAGE>
<PAGE> 14
Exhibit Index
Exhibits Page
(12) Computation of ratio of earnings to fixed charges. 15
(27) Financial Data Schedule. 16
<PAGE>
<PAGE>
<PAGE> 15
Exhibit 12
AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
Six Months Ended
June 30,
1995 1994
(dollars in thousands)
Earnings:
Income before provision for income
taxes $195,089 $184,194
Interest expense 255,075 192,807
Implicit interest in rents 6,304 5,236
Total earnings $456,468 $382,237
Fixed charges:
Interest expense $255,075 $192,807
Implicit interest in rents 6,304 5,236
Total fixed charges $261,379 $198,043
Ratio of earnings to fixed charges 1.75 1.93
<PAGE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 97,846
<SECURITIES> 819,139
<RECEIVABLES> 8,335,673<F1>
<ALLOWANCES> 256,226<F2>
<INVENTORY> 0<F3>
<CURRENT-ASSETS> 0<F4>
<PP&E> 0<F4>
<DEPRECIATION> 0<F4>
<TOTAL-ASSETS> 9,528,217
<CURRENT-LIABILITIES> 0<F4>
<BONDS> 5,136,494<F5>
<COMMON> 1,000
0<F3>
0<F3>
<OTHER-SE> 1,303,205<F6>
<TOTAL-LIABILITY-AND-EQUITY> 9,528,217
<SALES> 0<F3>
<TOTAL-REVENUES> 879,897<F7>
<CGS> 0<F3>
<TOTAL-COSTS> 0<F4>
<OTHER-EXPENSES> 282,891<F8>
<LOSS-PROVISION> 146,842<F9>
<INTEREST-EXPENSE> 255,075<F10>
<INCOME-PRETAX> 195,089
<INCOME-TAX> 72,583
<INCOME-CONTINUING> 122,506
<DISCONTINUED> 0<F3>
<EXTRAORDINARY> 0<F3>
<CHANGES> 0<F3>
<NET-INCOME> 122,506
<EPS-PRIMARY> 0<F3>
<EPS-DILUTED> 0<F3>
<PAGE>
<FN>
<F1>RECEIVABLES IN THIS EXHIBIT REPRESENTS NET FINANCE RECEIVABLES REPORTED
IN THE COMPANY'S CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
<F2>ALLOWANCES IN THIS EXHIBIT REPRESENTS ALLOWANCE FOR FINANCE RECEIVABLE
LOSSES REPORTED IN THE COMPANY'S CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS.
<F3>NOT APPLICABLE.
<F4>NOT REPORTED SEPARATELY (OR NOT REPORTED SEPARATELY AS DEFINED BY
ARTICLE 5 OF REGULATION S-X) IN DOCUMENT FILED.
<F5>BONDS IN THIS EXHIBIT REPRESENTS LONG-TERM DEBT REPORTED IN THE COMPANY'S
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS WHICH INCLUDES OTHER LONG-TERM
DEBT.
<F6>OTHER STOCKHOLDER'S EQUITY IN THIS EXHIBIT REPRESENTS ADDITIONAL PAID-IN-
CAPITAL, NET UNREALIZED INVESTMENT GAINS (LOSSES), AND RETAINED EARNINGS
REPORTED IN THE COMPANY'S CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
<F7>TOTAL REVENUES IN THIS EXHIBIT REPRESENTS TOTAL REVENUES REPORTED IN THE
COMPANY'S CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
<F8>OTHER EXPENSES IN THIS EXHIBIT REPRESENTS OPERATING EXPENSES AND
INSURANCE LOSSES AND LOSS ADJUSTMENT EXPENSES REPORTED IN THE COMPANY'S
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
<F9>LOSS PROVISION IN THIS EXHIBIT REPRESENTS PROVISION FOR FINANCE
RECEIVABLE LOSSES REPORTED IN THE COMPANY'S CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS.
<F10>INTEREST EXPENSE IN THIS EXHIBIT REPRESENTS INTEREST EXPENSE REPORTED
IN THE COMPANY'S CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
<PAGE>
</FN>
</TABLE>
