UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1997
Commission File No. 2-57299
FARM FAMILY CASUALTY INSURANCE COMPANY
A New York Corporation IRS No. 14-1415410
344 Route 9W, Glenmont, New York 12077-2910
Registrant's telephone number: (518) 431-5000
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 number of shares outstanding of the issuer's common stock as of August 13,
1997 is 2,253,878. All of the outstanding shares of the issuer's common stock
are held by Farm Family Holdings, Inc.
<PAGE>
FARM FAMILY CASUALTY INSURANCE COMPANY
INDEX
Part I. Financial Information
Item 1. Financial Statements of Farm Family Casualty Insurance
Company (unaudited)
Consolidated Balance Sheets
June 30, 1997 and December 31, 1996
Consolidated Statements of Income Three months ended June
30, 1997 and 1996 and six months ended June 30, 1997 and
1996
Consolidated Statements of Cash Flow Six months ended June
30, 1997 and 1996
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
<PAGE>
<TABLE>
FARM FAMILY CASUALTY INSURANCE COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
($ in thousands)
<CAPTION>
(Unaudited)
June 30, 1997 December 31, 1996
- ---------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C>
Investments:
Fixed Maturities
Available for sale, at fair value
(Amortized cost: $222,730 in 1997 and $214,226 in 1996 ) $227,245 $211,750
Held to maturity, at amortized cost
(Fair value: $9,431 in 1997 and $9,973 in 1996) 9,197 9,782
Equity securities
Available for sale, at fair value
(Cost: $3,260 in 1997 and $2,546 in 1996) 3,874 7,908
Mortgage loans 1,704 1,745
Other invested assets 697 748
Short-term investments 2,924 1,982
- ---------------------------------------------------------------------------------------------------------------
Total investments 245,641 233,915
- ---------------------------------------------------------------------------------------------------------------
Cash 5,421 4,108
Insurance receivables:
Reinsurance receivables 11,607 10,743
Premiums receivable, net 30,190 22,663
Deferred acquisition costs 11,874 10,682
Accrued investment income 5,090 4,709
Deferred income tax asset, net 3,839 1,531
Prepaid reinsurance premiums 2,361 1,944
Receivable from affiliates, net 16,115 16,489
Other assets 1,890 1,826
- ---------------------------------------------------------------------------------------------------------------
Total Assets $334,028 $308,610
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Reserves for losses and loss adjustment expenses $146,239 $141,220
Unearned premium reserve 65,309 55,945
Reinsurance premiums payable 2,198 641
Accrued expenses and other liabilities 11,452 9,081
Debt 1,285 1,304
- ---------------------------------------------------------------------------------------------------------------
Total liabilities 226,483 208,191
- ---------------------------------------------------------------------------------------------------------------
Commitments and contingencies
Stockholder's equity:
Common stock $1.60 par value 3,200,000 shares authorized
and 2,253,878 shares issued and outstanding 3,606 3,606
Additional paid in capital 84,125 84,125
Retained earnings 16,479 6,012
Net unrealized investment gains 3,335 6,676
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Total stockholder's equity 107,545 100,419
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities and Stockholder's Equity $334,028 $308,610
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
See accompanying notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FARM FAMILY CASUALTY INSURANCE COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands)
<CAPTION>
(Unaudited) (Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------
Revenues:
<S> <C> <C> <C> <C>
Premiums $35,761 $32,190 $70,734 $63,866
Net investment income 4,355 3,645 8,615 7,503
Realized investment gains, net 5,551 14 5,461 77
Other income 266 257 486 470
- -------------------------------------------------------------------------------------------------------
Total revenues 45,933 36,106 85,296 71,916
- -------------------------------------------------------------------------------------------------------
Losses and Expenses:
Losses and loss adjustment expenses 25,023 23,031 49,720 48,753
Underwriting expenses 9,952 9,180 19,593 17,967
Interest expense 26 54 52 108
Dividends to policyholders 74 86 112 113
- -------------------------------------------------------------------------------------------------------
Total losses and expenses 35,075 32,351 69,477 66,941
- -------------------------------------------------------------------------------------------------------
Income before federal income tax expense and extraordinary item 10,858 3,755 15,819 4,975
Federal income tax expense 3,737 1,222 5,352 1,619
- -------------------------------------------------------------------------------------------------------
Income before extraordinary item 7,121 2,533 10,467 3,356
Extraordinary item - demutualization expenses -- 896 -- 1,417
- -------------------------------------------------------------------------------------------------------
Net income $ 7,121 $ 1,637 $10,467 $ 1,939
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
See accompanying notes to Consolidated Financial Statements
</TABLE>
<PAGE>
<TABLE>
FARM FAMILY CASUALTY INSURANCE COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in thousands)
(Unaudited)
<CAPTION>
For the Six
Months
Ended June 30,
1997 1996
- -----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $10,467 $1,939
- -----------------------------------------------------------------------------------------------------------------
Adjustments to reconcile net income
to net cash provided by operating activities:
<S> <C> <C>
Realized investment gains (5,461) (77)
Amortization of bond discount 103 67
Deferred income taxes (501) (554)
Extraordinary item - demutualization expenses - 1,417
Changes in:
Reinsurance receivables (864) 2,727
Premiums receivable (7,527) (3,910)
Deferred acquisition costs (1,192) (534)
Accrued investment income (381) (123)
Prepaid reinsurance premiums (417) (265)
Receivable from affiliates 374 (2,076)
Other assets (64) (817)
Reserves for losses and loss adjustment expenses 5,019 344
Unearned premium reserve 9,364 5,299
Reinsurance premiums payable 1,557 (1,514)
Accrued expenses and other liabilities 2,365 2,270
- -----------------------------------------------------------------------------------------------------------------
Total adjustments 2,375 2,254
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities before extraordinary item 12,842 4,193
Extraordinary item - demutualization expenses - (1,417)
- -----------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 12,842 2,776
- -----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales:
Fixed maturities available for sale 3,514 5,450
Other invested assets - 143
Equity securities 5,954 -
Investment collections:
Fixed maturities available for sale 7,334 6,505
Fixed maturities held to maturity 569 2,277
Mortgage loans 41 37
Investment purchases:
Fixed maturities available for sale (26,880) (17,241)
Equity securities (1,038) -
Change in short-term investments, net (942) 786
Change in other invested assets (62) 219
- -----------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (11,510) (1,824)
- -----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIEs
Principal payments on debt (19) (21)
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (19) (21)
- -----------------------------------------------------------------------------------------------------------------
Net increase in cash 1,313 931
Cash, beginning of period 4,108 2,410
- -----------------------------------------------------------------------------------------------------------------
Cash, end of period $5,421 $3,341
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
See accompanying notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
The accompanying consolidated financial statements include the accounts of
Farm Family Casualty Insurance Company (the "Company"). On July 26, 1996,
Farm Family Mutual Insurance Company converted from a mutual property and
casualty insurance company to a stockholder owned property and casualty
insurance company and became a wholly owned subsidiary of Farm Family
Holdings, Inc. pursuant to a Plan of Reorganization and Conversion. In
addition, Farm Family Mutual Insurance Company was renamed Farm Family
Casualty Insurance Company.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q. In the opinion
of management, these statements contain all adjustments including normal
recurring accruals, which are necessary for a fair presentation of the
consolidated financial position at June 30, 1997, and the consolidated
results of operations for the six months ended June 30, 1997 and 1996. The
results of the Company's operations for any interim period are not
necessarily indicative of the results of the Company's operations for a
full fiscal year.
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
General
The following discussion includes the operations of Farm Family Casualty
Insurance Company (herein referred to as "Farm Family Casualty" or the
"Company"). The operations of the Company are also closely related with those of
its affiliates, Farm Family Life Insurance Company ("Farm Family Life") and Farm
Family Life's wholly owned subsidiary, United Farm Family Insurance Company
("United Farm Family").
The Company is a specialized property and casualty insurer of farms, other
generally related businesses and residents of rural and suburban communities
primarily in the Northeastern United States. The Company provides property and
casualty insurance coverages to members of the state Farm Bureau(R)
organizations in New York, New Jersey, Delaware, West Virginia and all of the
New England states. Membership in a state Farm Bureau organization is a
prerequisite for voluntary insurance coverage (except for employees of the
Company and its affiliates).
The Company's operating results are subject to significant fluctuations from
period to period depending upon, among other factors, the frequency and severity
of losses from weather related and other catastrophic events, the effect of
competition and regulation on the pricing of products, changes in interest
rates, general economic conditions, tax laws and the regulatory environment. As
a condition of its license to do business in various states, the Company is
required to participate in a variety of mandatory residual market mechanisms
(including mandatory pools) which provide certain insurance (most notably
automobile insurance) to consumers who are otherwise unable to obtain such
coverages from private insurers. In all such states, residual market premium
rates are subject to the approval of the state insurance department and have
generally been inadequate. The amount of future losses or assessments from
residual market mechanisms cannot be predicted with certainty and could have a
material adverse effect on the Company's results of operations.
For the six month periods ended June 30, 1997 and 1996, 36.5% and 38.4%,
respectively, of the Company's direct written premiums were derived from
policies written in New York and, for the same periods, 25.2% and 22.1%,
respectively, were derived from policies written in New Jersey. For these same
periods, no other state accounted for more than 10.0% of the Company's direct
written premiums. As a result, the Company's results of operations may be
significantly affected by weather conditions, catastrophic events and regulatory
developments in these two states and in the Northeastern United States
generally.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995
Certain statements made herein or elsewhere by or on behalf of the Company that
are not historical facts are intended to be forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Examples of forward-looking statements include, but are not
limited to: (i) projections of revenue, earnings, capital structure and other
financial items, (ii) statements of the plans and objectives of the Company or
its management, (iii) statements of future economic performance and (iv)
assumptions underlying statements regarding the Company or its business. Readers
are hereby cautioned that certain events or circumstances could cause actual
results to differ materially from those estimated, projected, or predicted. Such
risks and uncertainties include, but are not limited to, the following: exposure
to catastrophic loss, geographic concentration of loss exposure, general
economic conditions and conditions specific to the property and casualty
insurance industry including its cyclical nature, regulatory changes and
conditions, rating agency policies and practices, competitive factors, claims
development and the impact thereof on loss reserves and the Company's reserving
policy, the adequacy of the Company's reinsurance programs, developments in the
securities markets and the impact on the Company's investment portfolio and
other risks included in this Report on Form 10-Q and other risk factors listed
from time to time in the Company's Securities and Exchange Commission Filings.
In addition, forward-looking statements are based on management's knowledge and
judgment as of the date that such statements are made. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
Results of Operations
The Three Months Ended June 30, 1997 Compared to the Three Months Ended June 30,
1996
Premiums
- --------
Premium revenue increased $3.6 million or 11.1%, during the three months ended
June 30, 1997 to $35.8 million from $32.2 million for the same period in 1996.
The increase in premium revenue in 1997 resulted from an increase of $4.1
million in earned premiums on additional business directly written by the
Company, offset by a decrease of $0.3 million in earned premiums assumed as well
as an increase of $0.2 million in earned premiums ceded to reinsurers and not
retained by the Company. The $4.1 million increase in earned premiums on
additional business directly written by the Company was primarily attributable
to an increase of $3.6 million, or 12.5%, in earned premiums from the Company's
primary products (personal and commercial automobile products other than
assigned risk automobile business, the Special Farm Package, businessowners
products, homeowners products, and Special Home Package) as well as an increase
of $0.2 million in earned premiums from assigned risk automobile business, an
increase of $0.1 million in earned premiums from workers' compensation business,
and an increase of $0.1 million in earned premiums from umbrella policies.
Net written premiums increased 18.8% to $43.0 million for the three months ended
June 30, 1997 compared to $36.1 million for the same period in 1996. The
increase in net written premiums is primarily attributable to the growth in
direct writings to customers and, to a lesser extent, an increase in the
Company's voluntary assumed reinsurance business. Geographically, the increase
in the Company's direct writings came from New Jersey, New York, Massachusetts,
Connecticut, Delaware, West Virginia, Vermont and Rhode Island. Direct writings
for the second quarter of 1997 increased primarily as a result of an increase in
writings of all of the Company's primary products and to a lesser extent as a
result of an increase in involuntary assigned risk automobile business in New
Jersey and our re-entry into the Massachusetts workers' compensation market.
During the three months ended June 30, 1997, the written premium from New Jersey
assigned risk automobile business totaled $0.9 million.
Net Investment Income
- ---------------------
Net investment income increased $0.7 million or 19.5% to $4.4 million for the
three months ended June 30, 1997 from $3.6 million for the same period in 1996.
The increase in net investment income was primarily the result of an increase in
average cash and invested assets (at amortized cost) of approximately $46.5
million, or 23.3% as of June 30, 1997 compared to June 30, 1996. The increase in
average cash and invested assets was primarily attributable to a capital
contribution of approximately $18.0 million from the Company's parent company
Farm Family Holdings, Inc., as well as available cash flow from operations. The
return realized on the Company's cash and investments was 7.2% for the three
months ended June 30, 1997 and 7.4% for the same period in 1996.
Losses and Loss Adjustment Expenses
- -----------------------------------
Losses and loss adjustment expenses increased $2.0 million, or 8.6%, to $25.0
million for the three months ended June 30, 1997 from $23.0 million for the same
period in 1996. Loss and loss adjustment expenses were 70.0% of premium revenue
for the three months ended June 30, 1997 compared to 71.5% of premium revenue
for the same period in 1996. The decrease in loss and loss adjustment expenses
as a percent of premium revenue was primarily attributable to the reduction in
weather related losses. Losses believed to be weather related aggregated $1.1
million in the three months ended June 30, 1997 compared to $1.8 million for the
same period in 1996.
Underwriting Expenses
- ---------------------
Underwriting expenses increased $0.8 million, or 8.4%, to $10.0 million for the
three months ended June 30, 1997 from $9.2 million for the same period in 1996.
For the three months ended June 30, 1997, underwriting expenses were 27.8% of
premium revenue compared to 28.5% for the same period in 1996. The decrease in
underwriting expenses as a percent of premium revenue was primarily attributable
to the implementation of the Company's expense management program and a greater
relative increase in premium revenue than in the Company's expenses.
Federal Income Tax Expense
- --------------------------
Federal income tax expense increased $2.5 million to $3.7 million in 1997 from
$1.2 million in 1996. Federal income tax expense was 34.4% of income before
federal income tax expense for the three months ended June 30, 1997 compared to
32.5% for the same period in 1996.
Realized Investment Gains
- -------------------------
Realized investment gains for the second quarter of 1997 of $5.6 million were
primarily the result of the sale of a common stock investment.
Net Income
- ----------
Net income increased $5.5 million to $7.1 million for the three months ended
June 30, 1997 from $1.6 million for the same period in 1996 primarily as a
result of the foregoing factors and the impact of $0.9 million of expenses in
the second quarter of 1996 related to the conversion of the Company from a
mutual company to a stockholder owned company which has been identified as an
extraordinary item.
The Six Months Ended June 30, 1997 Compared to the Six Months Ended June 30,
1996
Premiums
- --------
Premium revenue increased $6.9 million or 10.8%, during the six months ended
June 30, 1997 to $70.7 million from $63.9 million for the same period in 1996.
The increase in premium revenue in 1997 resulted from an increase of $7.4
million in earned premiums on additional business directly written by the
Company, and an increase of $0.9 million in earned premiums assumed which was
offset by an increase of $1.4 million in earned premiums ceded to reinsurers and
not retained by the Company. The $7.4 million increase in earned premiums on
additional business directly written by the Company was primarily attributable
to an increase of $7.0 million, or 12.3%, in earned premiums from the Company's
primary products (personal and commercial automobile products other than
assigned risk business, the Special Farm Package, businessowners products,
homeowners products, and Special Home Package) an increase of $0.2 million in
earned premium from workers' compensation business and an increase of $0.1
million of earned premium from umbrella policies. The number of policies in
force related to the Company's primary products increased by 10.0% to
approximately 120,000 as of June 30, 1997 from approximately 109,100 as of June
30, 1996 and the average premium earned for each such policy increased by 2.0%
during the six months ended June 30, 1997 compared to the same period in 1996.
Net written premiums increased 15.7% to $79.7 million for the six months ended
June 30, 1997 compared to $68.9 million for the same period in 1996. The
increase in net written premiums is primarily attributable to the growth in
direct writings to customers and, to a lesser extent, an increase in the
Company's voluntary assumed reinsurance business. Geographically, the increase
in the Company's direct writings come from New Jersey, New York, Massachusetts,
Connecticut, Delaware, West Virginia, and Rhode Island. In addition, direct
writings of all our primary products, particularly personal automobile,
increased during the first quarter of 1997. During the six months ended June 30,
1997, the Company wrote approximately $0.9 million of assigned risk automobile
business in New Jersey.
Net Investment Income
- ---------------------
Net investment income increased $1.1 million or 14.8% to $8.6 million for the
six months ended June 30, 1997 from $7.5 million for the same period in 1996.
The increase in net investment income was primarily the result of an increase in
average cash and invested assets (at amortized cost) of approximately $46.5
million, or 23.3% as of June 30, 1997 compared to June 30, 1996. The increase in
average cash and invested assets was primarily attributable to a capital
contribution of approximately $18.0 million from the Company's parent company
Farm Family Holdings, Inc. The return realized on the Company's cash and
investments was 7.3% for the six months ended June 30, 1997 and 7.6% for the
same period in 1996.
Losses and Loss Adjustment Expenses
- -----------------------------------
Losses and loss adjustment expenses increased $1.0 million, or 2.0%, to $49.7
million for the six months ended June 30, 1997 from $48.7 million for the same
period in 1996. Loss and loss adjustment expenses were 70.3% of premium revenue
for the six months ended June 30, 1997 compared to 76.3% of premium revenue for
the same period in 1996. The decrease in loss and loss adjustment expenses as a
percent of premium revenue was primarily attributable to the reduction in
weather related losses. Losses believed to be weather related aggregated $3.2
million in the six months ended June 30, 1997 compared to $8.7 million for the
same period in 1996.
Underwriting Expenses
- ---------------------
Underwriting expenses increased $1.6 million, or 9.0%, to $19.6 million for the
six months ended June 30, 1997 from $18.0 million for the same period in 1996.
For the six months ended June 30, 1997, underwriting expenses were 27.7% of
premium revenue compared to 28.1% for the same period in 1996. The decrease in
underwriting expenses as a percent of premium revenue was primarily attributable
to the absorption of certain expenses to Farm Family Holdings, Inc. as well as
expense management initiatives taken by the Company.
Federal Income Tax Expense
- --------------------------
Federal income tax expense increased $3.7 million to $5.3 million in 1997 from
$1.6 million in 1996. Federal income tax expense was 33.8% of income before
federal income tax expense for the six months ended June 30, 1997 compared to
32.5% for the same period in 1996.
Realized Investment Gains
- -------------------------
Realized investment gains were $5.5 million for the six months ended June 30,
1997 compared to $0.1 million for the same period in 1996. The increase in
realized investment gains was primarily attributable to the sale of a common
stock investment during the six months ended June 30, 1997.
Net Income
- ----------
Net income increased $8.5 million to $10.5 million for the six months ended June
30, 1997 from $1.9 million for the same period in 1996 primarily as a result of
the foregoing factors and the impact of $1.4 million of expenses in the first
quarter of 1996 related to the demutualization of the Company which the Company
has identified as an extraordinary item.
Liquidity and Capital Resources
Net cash provided by operating activities was $12.8 million and $2.8 million
during the six month periods ended June 30, 1997 and 1996, respectively. The
increase in net cash provided by operating activities during the six months
ended June 30, 1997 was primarily attributable to the increase in net income and
a decrease in payments for losses and loss adjustment expenses.
Net cash used in investing activities was $11.5 million during the six months
ended June 30, 1997 compared to net cash used in investing activities of $1.8
million for the same period in 1996 primarily as a result of a decrease in sales
of short-term investments in the first three months of 1997.
The Company has in place unsecured lines of credit with certain banks under
which it may borrow up to $12.0 million. At June 30, 1997, no amounts were
outstanding on these lines of credit, which have annual interest rates equal to
the bank's prime rate. In addition, at June 30, 1997, the Company had $1.3
million principal amount of surplus notes outstanding. The surplus notes bear
interest at the rate of eight percent per annum and have no maturity date. The
principal and interest on the surplus notes are repayable only with the approval
of the Superintendent of Insurance of New York State.
<PAGE>
Item 6: Exhibits and Reports on Form 8-K
<TABLE>
EXHIBIT INDEX
FARM FAMILY CASUALTY INSURANCE COMPANY FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1997
<CAPTION>
Exhibit Number Document Description
<S> <C>
*2.1 Plan of Reorganization and Conversion dated February 14, 1996 as amended by
Amendment No. 1, dated April 23, 1996
*3.1 Certificate of Incorporation of Farm Family Holdings, Inc.
*3.2 Bylaws of Farm Family Holdings, Inc.
**10.2 Amended and Restated Expense Sharing Agreement, made effective as of February
14, 1996, by and among Farm Family Mutual Insurance Company, Farm Family Life
Insurance Company and Farm Family Holdings, Inc.
*10.3 Indenture of Lease, made the 1st day of January 1988,
between Farm Family Life Insurance Company and Farm Family
Mutual Insurance Company as amended by the Amendment to
Lease, effective January 1, 1994
10.4 Underlying Multi-Line Per Risk Reinsurance Contract, effective January 1,
1995, issued to Farm Family Mutual Insurance Company by The Subscription
Reinsurer(s) Executing the Interests and Liabilities Agreement(s) Attached
Thereto, as amended by Addendum No. 1, effective January 1, 1996
(Incorporated by reference to Registration Statement No. 333-4446), Addendum
No. 2, effective January 1, 1996, Addendum No. 3, effective July 26, 1996
(Incorporated by reference to Farm Family Holdings, Inc. Form 10-K), Addendum
No. 4, effective January 1, 1997 (incorporated by reference to Farm Family
Holdings, Inc. Form 10-Q for the quarter ended March 31, 1997)
10.5 Umbrella Quota Share Reinsurance Contract, effective January 1, 1995, issued
to Farm Family Mutual Insurance Company and United Farm Family Insurance
Company, as amended by Addendum No. 1, effective January 1, 1995
(Incorporated by reference to Registration Statement No. 333-4446), Addendum
No. 2 effective July 26, 1996 (Incorporated by reference to Farm Family
Holdings, Inc. Form 10-K), Addendum No. 3, effective January 1, 1997
(incorporated by reference to Farm Family Holdings, Inc. Form 10-Q for the
quarter ended March 31, 1997)
10.6 Excess Catastrophe Reinsurance Contract effective January 1, 1996, issued to
Farm Family Mutual Insurance Company (Incorporated by reference to
Registration Statement No. 333-4446), as amended by Addendum No. 1, Effective
July 26, 1997 (incorporated by reference to Farm Family Holdings, Inc. Form
10-Q for the quarter ended March 31, 1997)
*10.7 Assumption Agreement, commencing January 1, 1995, between Farm Family Mutual
Insurance Company and United Farm Family Insurance Company
</TABLE>
<PAGE>
<TABLE>
Exhibit Number Document Description
<S> <C>
*10.8 Service Agreement, made effective as of July 25, 1988 by and between Farm
Family Mutual Insurance Company and United Farm Family Insurance Company
10.9 Form of Membership List Purchase Agreement between Farm Family Mutual
Insurance Company and each of the Farm Bureaus (Incorporated by reference to
Registration Statement No. 333-4446) as amended by Amendment No. 1 to
Membership List Purchase Agreements effective July 26, 1996 (incorporated by
reference to Farm Family Holdings, Inc. Form 10-Q for the quarter ended March
31, 1997 )
*10.10 Farm Family Mutual Insurance Company 8% Subordinated Surplus Certificate, as
amended by Certificate of Amendment No. 1 and Trust Indenture, dated as of
December 29, 1976 relating to the 8% Subordinated Surplus Certificates
*10.11 Farm Family Mutual Insurance Company 5% Debenture, as amended by Certificate
of Amendment, effective January 1, 1969, Certificate of Amendment No. 2,
effective January 1, 1979, Certificate of Amendment No. 3 and Supplemental
Trust Indenture, dated as of August 25, 1955 Amending Trust Indenture, dates
as of May 16, 1955 Relating to The 5% Debentures, as amended by Certificate
of Amendment, dated as of August 25, 1955, Certificate of Amendment No. 2,
dated as of August 25, 1955, Certificate of Amendment No. 3 dated as of
August 25, 1955
*10.12 Farm Family Mutual Insurance Company Officer Severance Pay Plan, adopted
effective August 1, 1994
*10.13 Farm Family Mutual Insurance Company Supplemental Employee Retirement Plan,
adopted as of January 1, 1994
**10.17 Farm Family Supplemental Savings and Profit Sharing Plan effective January 1,
1997
**10.18 Tax Payment Allocation Agreement effective January 1, 1996 by and between
Farm Family Holdings, Inc. and Farm Family Casualty Insurance Company
10.19 Excess Catastrophe Reinsurance Contract issued to Farm Family Casualty
Insurance Company effective January 1, 1997 (Incorporated by reference to
Farm Family Holdings, Inc. Form 10-Q for the quarter ended March 31, 1997)
</TABLE>
*Incorporated by reference to Registration Statement No. 333-4446
**Incorporated by reference to Farm Family Holdings, Inc. Form 10-K for the year
ended December 31, 1996
Reports on Form 8-K
There were no reports on form 8-K filed during the period
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FARM FAMILY CASUALTY INSURANCE COMPANY
(Registrant)
August 13, 1997 By:/s/ Philip P. Weber
- ------------------------ --------------------------------------
(Date) Philip P. Weber, President & Chief Executive Officer
(Principal Executive Officer)
August 13, 1997 By:/s/ Timothy A. Walsh
- ------------------------ --------------------------------------
(Date) Timothy A. Walsh, Executive Vice President
- Finance & Treasurer
(Principal Financial & Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 7
<CIK> 0000277269
<NAME> Farm Family Holdings, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<PERIOD-END> Jun-30-1997
<FISCAL-YEAR-END> Dec-31-1997
<DEBT-HELD-FOR-SALE> 227,245
<DEBT-CARRYING-VALUE> 9,197
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0
0
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70,734
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</TABLE>
