SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
Date of Report (Date of earliest event reportable):
March 5, 1996
Investors Insurance Group, Inc.
(Exact name of registrant a specified in its charter)
Florida 1-8069 13-2574130
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
7200 West Camino Real
Boca Raton, Florida 33433
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (407)-391-5043
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Item 5: Other Events
Investors Insurance Group, Inc. announced today that its subsidiary, Investors
Insurance Corporation ("IIC"), reached agreement to cede a block of annuity
policies with statutory policy reserves of $76,306,929 to New Era Life
Insurance Company ("NEL"). The reinsurance agreement provides for an initial
coinsurance period (up to five years) followed by full assumption of the
policies. IIC will continue to service these policies through December 31,
2000. On Friday, March 1, 1996, IIC received final regulatory approval for
the coinsurance portion of the agreement; IIC expects the assumption portion
of the agreement to be approved in early 1996.
The State of Delaware, IIC's state of domicile, encouraged IIC to reduce its
ratio of statutory basis policy liabilities to capital and surplus. While the
Delaware Department of Insurance indicated it would like the ratio to be in
the range of 15:1, IIC's ratio recently exceeded 22:1 . The agreement with
NEL, which was made effective December 31, 1995, decreased the ratio to less
than 14:1.
In conjunction with the settlement of the reinsurance agreement, IIC converted
the supporting investments to cash. The resulting funds (including the gain)
were then paid to NEL at the settlement of the reinsurance agreement. While
the gain on the disposal of the investments (approximately $3.5 million) will
be largely off-set by a related reduction of deferred policy acquisition
costs, the resulting net impact on IIG's consolidated financial statements has
not been determined.
Under generally accepted accounting principles, both the disposal of the
assets an the effectiveness of the reinsurance agreement will be reflected in
IIG's 1996 financial statements; however, IIC's statutory financial statements
will reflect the disposal of the investments in 1996 and the effectiveness of
the reinsurance agreement in 1995.
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SIGNATURES
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 hereunto duly authorized.
INVESTORS INSURANCE GROUP, INC.
(Registrant)
March 5, 1996 By /s/ Melvin C. Parker
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Melvin C. Parker
President
