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 March 31, 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 No
The number of shares outstanding of the issuer's common stock as of May 14,
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 March
31, 1997 and December 31, 1996
Consolidated Statements of Income -
Three months ended March 31, 1997 and 1996
Consolidated Statements of Cash Flow Three months ended
March 31, 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)
March 31, 1997 December 31, 1996
- ---------------------------------------------------------------------------------------------------------------
ASSETS
Investments:
<S> <C> <C>
Fixed Maturities
Available for sale, at fair value
(Amortized cost: $215,479 in 1997 and $206,841 in 1996 ) $215,889 $211,750
Held to maturity, at amortized cost
(Fair value: $9,565 in 1997 and $9,973 in 1996) 9,563 9,782
Equity securities
Available for sale, at fair value
(Cost: $2,676 in 1997 and $2,546 in 1996) 8,078 7,908
Mortgage loans 1,725 1,745
Other invested assets 873 748
Short-term investments 1,649 1,982
- ---------------------------------------------------------------------------------------------------------------
Total investments 237,777 233,915
- ---------------------------------------------------------------------------------------------------------------
Cash 3,881 4,108
Insurance receivables:
Reinsurance receivables 10,401 10,743
Premiums receivable, net 25,554 22,663
Deferred acquisition costs 10,721 10,682
Accrued investment income 4,425 4,709
Deferred income tax asset, net 3,259 1,531
Prepaid reinsurance premiums 2,391 1,944
Receivable from affiliates, net 16,073 16,489
Other assets 1,646 1,826
- ---------------------------------------------------------------------------------------------------------------
Total Assets $316,128 $308,610
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Reserves for losses and loss adjustment expenses $143,205 $141,220
Unearned premium reserve 58,143 55,945
Reinsurance premiums payable 2,059 641
Accrued expenses and other liabilities 10,562 9,081
Debt 1,293 1,304
- ---------------------------------------------------------------------------------------------------------------
Total liabilities 215,262 208,191
- ---------------------------------------------------------------------------------------------------------------
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 9,358 6,012
Net unrealized investment gains 3,777 6,676
- ---------------------------------------------------------------------------------------------------------------
Total stockholder's equity 100,866 100,419
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities and Stockholder's Equity $316,128 $308,610
- ---------------------------------------------------------------------------------------------------------------
See accompanying notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FARM FAMILY CASUALTY INSURANCE COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands)
<CAPTION>
(Unaudited)
For the Three
Months
Ended March 31,
1997 1996
- -----------------------------------------------------------------------------------------------------------------
Revenues:
<S> <C> <C>
Premiums $34,973 $31,676
Net investment income 4,260 3,858
Realized investment gains (losses), net (90) 63
Other income 220 213
- -----------------------------------------------------------------------------------------------------------------
Total revenues 39,363 35,810
- -----------------------------------------------------------------------------------------------------------------
Losses and Expenses:
Losses and loss adjustment expenses 24,697 25,722
Underwriting expenses 9,641 8,787
Interest expense 26 54
Dividends to policyholders 38 27
- -----------------------------------------------------------------------------------------------------------------
Total losses and expenses 34,402 34,590
- -----------------------------------------------------------------------------------------------------------------
Income before federal income tax expense and extraordinary item 4,961 1,220
Federal income tax expense 1,615 397
- -----------------------------------------------------------------------------------------------------------------
Income before extraordinary item 3,346 823
Extraordinary item - demutualization expenses - 521
- -----------------------------------------------------------------------------------------------------------------
Net income $3,346 $302
- -----------------------------------------------------------------------------------------------------------------
See accompanying notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FARM FAMILY CASUALTY INSURANCE COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in thousands)
<CAPTION>
(Unaudited)
For the Three
Months
Ended March 31,
1997 1996
- -----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $3,346 $302
- -----------------------------------------------------------------------------------------------------------------
Adjustments to reconcile net income
to net cash provided by operating activities:
<S> <C> <C>
Realized investment (gains) losses 90 (63)
Amortization of bond discount 52 32
Deferred income taxes (160) 169
Extraordinary item - demutualization expenses - 521
Changes in:
Reinsurance receivables 342 1,065
Premiums receivable (2,891) (1,157)
Deferred acquisition costs (39) (24)
Accrued investment income 284 243
Prepaid reinsurance premiums (447) (129)
Receivable from affiliates 416 (1,080)
Other assets 172 (161)
Reserves for losses and loss adjustment expenses 1,985 2,341
Unearned premium reserve 2,198 1,200
Reinsurance premiums payable 1,418 (1,559)
Accrued expenses and other liabilities 1,481 (256)
- -----------------------------------------------------------------------------------------------------------------
Total adjustments 4,901 1,142
- -----------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities before extraordinary item 8,247 1,444
Extraordinary item - demutualization expenses - (521)
- -----------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 8,247 923
- -----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales:
Fixed maturities available for sale 3,514 3,918
Equity securities (56) 151
Investment collections:
Fixed maturities available for sale 3,303 4,274
Fixed maturities held to maturity 207 172
Mortgage loans 20 19
Investment purchases:
Fixed maturities available for sale (15,528) (14,023)
Fixed maturities held to maturity (131) -
Change in short-term investments, net 333 5,894
Change in other invested assets (125) 65
- -----------------------------------------------------------------------------------------------------------------
Net cash (used in) provided by investing activities (8,463) 470
- -----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIEs
Principal payments on debt (11) (9)
- -----------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (11) (9)
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash (227) 1,384
Cash, beginning of period 4,108 2,410
- -----------------------------------------------------------------------------------------------------------------
Cash, end of period $3,881 $3,794
- -----------------------------------------------------------------------------------------------------------------
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 March 31, 1997, and the consolidated
results of operations for the three months ended March 31, 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 three month periods ended March 31, 1997 and 1996, 36.3% and 37.5%,
respectively, of the Company's direct written premiums were derived from
policies written in New York and, for the same periods, 23.8% and 21.5%,
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 March 31, 1997 Compared to the Three Months Ended March
31, 1996
Premiums
- --------
Premium revenue increased $3.3 million or 10.4%, during the three months ended
March 31, 1997 to $35.0 million from $31.7 million for the same period in 1996.
The increase in premium revenue in 1997 resulted from an increase of $3.3
million in earned premiums on additional business directly written by the
Company, and an increase of $1.2 million in earned premiums assumed which was
offset by an increase of $1.2 million in earned premiums ceded to reinsurers and
not retained by the Company. The $3.3 million increase in earned premiums on
additional business directly written by the Company was primarily attributable
to an increase of $3.8 million, or 13.1%, 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) which was partially offset by a
decrease of $0.2 million in earned premiums from the Company's assigned risk
business and a decrease of $0.3 million in earned premiums from the Company's
other products. The number of policies in force related to the Company's primary
products increased by 9.8% to approximately 116,900 as of March 31, 1997 from
approximately 106,500 as of March 31, 1996 and the average premium earned for
each such policy increased by 3.0% during the three months ended March 31, 1997
compared to the same period in 1996. Net written premiums increased 12.1% to
$36.7 million for the three month period ended March 31, 1997 compared to $32.8
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
lessor 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 three months ended March 31, 1997, the Company began to receive
assigned risk automobile business in New Jersey. Such assigned risk business
produced approximately $185,000 of premium revenue during the first quarter of
1997.
<PAGE>
Net Investment Income
- ---------------------
Net investment income increased $0.4 million or 10.4% to $4.3 million for the
three months ended March 31, 1997 from $3.9 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 $38.4
million, or 19.5% from March 31, 1997 compared to March 31, 1996. The increase
in average cash and invested assets was primarily attributable to the net
proceeds of $31.0 million from the initial public offering and subscription
offering received in July 1996. The return realized on the Company's cash and
investments was 7.4% for the three months ended March 31, 1997 and 7.8% for the
same period in 1996.
Losses and Loss Adjustment Expenses
- -----------------------------------
Losses and loss adjustment expenses decreased $1.0 million, or 4.0%, to $24.7
million for the three months ended March 31, 1997 from $25.7 million for the
same period in 1996. Loss and loss adjustment expenses were 70.6% of premium
revenue for the three months ended March 31, 1997 compared to 81.2% of premium
revenue for the same period in 1996. The decrease in loss and loss adjustment
expense as a percent of premium revenue was primarily attributable to the
reduction in weather related losses. Losses believed to be weather related
aggregated $2.1 million in the three months ended March 31, 1997 compared to
$6.9 million for the same period in 1996.
Underwriting Expenses
- ---------------------
Underwriting expenses increased $0.9 million, or 9.7%, to $9.6 million for the
three months ended March 31, 1997 from $8.8 million for the same period in 1996.
For the three months ended March 31, 1997, underwriting expenses were 27.6% of
premium revenue compared to 27.7% in 1996.
Federal Income Tax Expense
- --------------------------
Federal income tax expense increased $1.2 million to $1.6 million in 1997 from
$0.4 million in 1996. Federal income tax expense was 32.6% of income before
federal income tax expense for the three months ended March 31, 1997 compared to
32.5% for the same period in 1996.
Net Income
- ----------
Net income increased $3.0 million to $3.3 million for the three months ended
March 31, 1997 from $0.3 million for the same period in 1996 primarily as a
result of the foregoing factors and the impact of $0.5 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.
<PAGE>
Liquidity and Capital Resources
- -------------------------------
Net cash provided by operating activities was $8.2 million and $0.9 million
during the three month periods ended March 31, 1997 and 1996, respectively. The
increase in net cash provided by operating activities during the three months
ended March 31, 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 $8.5 million during the three months
ended March 31, 1997 compared to net cash provided by investing activities of
$0.5 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 an unsecured line of credit with Key Bank of New York
under which it may borrow up to $2.0 million. At March 31, 1997, no amounts were
outstanding on this line of credit, which has an annual interest rate equal to
the bank's prime rate. In addition, at March 31, 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 MARCH 31, 1997
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.
*10.1 Option Purchase Agreement, dated February 14, 1996, among Farm Family
Holdings, Inc. and The Shareholders of Farm Family Life Insurance Company
Listed Therein
**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
Exhibit Number Document Description
- -------------- --------------------
*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
Memebership 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
*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
</TABLE>
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.
<TABLE>
FARM FAMILY CASUALTY INSURANCE COMPANY
(Registrant)
<S> <C>
May 14, 1997 By:
- ---------------------------- ------------------------------------------------------------------------------
(Date) Philip P. Weber, President & Chief Executive Officer
(Principal Executive Officer)
May 14, 1997 By:
- ---------------------------- ------------------------------------------------------------------------------
(Date) Timothy A. Walsh, Executive Vice President - Finance & Treasurer
(Principal Financial & Accounting Officer)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 7
<CIK> 0000277269
<NAME> Farm Family Casualty Insurance Company
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<DEBT-HELD-FOR-SALE> 215,889
<DEBT-CARRYING-VALUE> 9,563
<DEBT-MARKET-VALUE> 9,565
<EQUITIES> 8,078
<MORTGAGE> 1,725
<REAL-ESTATE> 0
<TOTAL-INVEST> 237,777
<CASH> 3,881
<RECOVER-REINSURE> 10,401
<DEFERRED-ACQUISITION> 10,721
<TOTAL-ASSETS> 316,128
<POLICY-LOSSES> 143,205
<UNEARNED-PREMIUMS> 58,143
<POLICY-OTHER> 10,562
<POLICY-HOLDER-FUNDS> 100,866
<NOTES-PAYABLE> 1,293
0
0
<COMMON> 3,606
<OTHER-SE> 3,777
<TOTAL-LIABILITY-AND-EQUITY> 316,128
34,973
<INVESTMENT-INCOME> 4,260
<INVESTMENT-GAINS> (90)
<OTHER-INCOME> 220
<BENEFITS> 24,697
<UNDERWRITING-AMORTIZATION> 9,641
<UNDERWRITING-OTHER> 0
<INCOME-PRETAX> 4,961
<INCOME-TAX> 1,615
<INCOME-CONTINUING> 3,346
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,346
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 114,383
<PROVISION-CURRENT> 24,847
<PROVISION-PRIOR> (150)
<PAYMENTS-CURRENT> 4,588
<PAYMENTS-PRIOR> 16,900
<RESERVE-CLOSE> 117,592
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
