<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
the Securities Exchange Act of 1934
For Quarter Ended June 30, 1995 Commission File Number 1-7255
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
(Exact name of registrant as specified in its charter)
Florida 59-1219710
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1776 American Heritage Life Drive, Jacksonville, Florida 32224
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (904) 992-1776
Former name, former address and former fiscal year, if changed since last
report
N/A
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
--- ---
Number of registrant's shares of common stock outstanding at
July 31, 1995
13,886,429
<PAGE> 2
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, 1995 DECEMBER 31, 1994
--------------- -----------------
<S> <C> <C>
ASSETS
Investments:
Debt securities, available-for-sale, at fair
value (cost of $479,774,020 in 1995 and
$450,670,196 in 1994) $ 484,021,534 412,746,726
Equity securities, available-for-sale, at
fair value (cost of $35,560,382 in 1995
and $35,583,745 in 1994) 57,327,740 52,476,038
Mortgage loans on real estate 24,485,539 20,625,877
Investment real estate, at cost 1,043,435 1,022,985
Policy loans 363,021,430 351,160,060
Short-term investments 5,138,707 7,697,740
-------------- -------------
Total investments 935,038,385 845,729,426
Cash 20,698,465 19,490,055
Agents' balances and prepaid commissions 39,206,001 39,146,576
Premiums receivable 42,309,528 43,434,693
Accrued investment income 22,021,348 16,197,251
Deferred acquisition costs 158,959,548 162,867,773
Property and equipment, at cost,
less accumulated depreciation 27,987,091 27,294,320
Reinsurance receivables 19,144,035 11,730,734
Other assets 15,393,608 13,366,322
-------------- -------------
$1,280,758,009 1,179,257,150
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Policy liabilities:
Future policy benefits $ 197,481,687 192,511,754
Policyholders' account balances 610,482,165 576,535,760
Unearned premiums 51,158,163 51,604,266
Policy and contract claims 56,519,995 53,308,899
-------------- -------------
Total policy liabilities 915,642,010 873,960,679
Notes payable to banks, short-term 68,850,000 64,201,000
Notes payable to banks, long-term 20,000,000 20,000,000
Deferred income taxes 27,167,778 16,559,755
Other liabilities 38,893,151 31,176,101
-------------- -------------
Total liabilities 1,070,552,939 1,005,897,535
-------------- -------------
Stockholders' equity:
Common stock of $1 par value. Authorized
20,000,000 shares; issued 13,932,395 in
1995 and 13,905,794 in 1994 13,932,395 13,905,794
Additional paid-in capital 42,274,906 41,866,379
Retained earnings 138,968,303 129,406,469
Net unrealized investment gains (losses) 15,956,413 (10,892,295)
-------------- -------------
211,132,017 174,286,347
Less cost of 45,966 in 1995 and 45,954
in 1994 common shares in treasury 926,947 926,732
-------------- -------------
Total stockholders' equity 210,205,070 173,359,615
-------------- -------------
$1,280,758,009 1,179,257,150
============== =============
</TABLE>
See accompanying notes to consolidated financial statements.
1
<PAGE> 3
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE THREE MONTHS ENDED
JUNE 30, JUNE 30,
------------------------ --------------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Insurance revenues $ 116,653,042 110,869,361 60,294,200 56,745,929
Net investment income 33,402,512 33,019,429 17,003,044 16,670,200
Realized investment gains 2,214,750 982,758 47,349 655,337
-------------- ------------- ------------ ------------
Total income 152,270,304 144,871,548 77,344,593 74,071,466
-------------- ------------- ------------ ------------
Benefits, claims and expenses:
Benefits and claims 68,180,027 69,482,324 34,789,193 35,466,119
Underwriting, acquisition and insurance expenses:
Taxes, commissions and general expenses 50,929,939 46,140,580 27,196,016 24,017,919
Amortization of deferred acquisition costs 11,292,668 10,909,389 5,407,905 5,229,124
Other operating expenses 1,763,695 1,030,863 884,476 530,855
-------------- ------------- ------------ ------------
Total benefits, claims and expenses 132,166,329 127,563,156 68,277,590 65,244,017
-------------- ------------- ------------ ------------
Earnings before income taxes 20,103,975 17,308,392 9,067,003 8,827,449
Income taxes 6,513,500 5,535,500 2,934,300 2,828,100
-------------- ------------- ------------ ------------
Net earnings $ 13,590,475 11,772,892 6,132,703 5,999,349
============== ============= ============ ============
Net earnings per share of common stock $ 0.98 0.85 0.44 0.43
============== ============= ============ ============
Dividends declared per share $ 0.2900 0.3150 0.1800 .1650
============== ============= ============ ============
Average number of shares outstanding 13,882,388 13,851,184 13,886,657 13,857,142
============== ============= ============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE> 4
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
1995 1994
----------- -----------
<S> <C> <C>
Common stock:
Balance at beginning of period $ 13,905,794 13,880,278
Other shares issued 26,601 24,715
------------ -----------
Balance at end of period 13,932,395 13,904,993
------------ -----------
Additional paid-in capital:
Balance at beginning of period 41,866,379 41,482,746
Excess over par value on shares issued 436,618 405,880
Net change on exercise of stock options (28,091) (13,569)
------------ -----------
Balance at end of period 42,274,906 41,875,057
------------ -----------
Retained earnings:
Balance at beginning of period 129,406,469 115,464,920
Add net earnings 13,590,475 11,772,892
------------ -----------
142,996,944 127,237,812
Deduct cash dividends declared on common stock - $.29
per share in 1995 and $.315 per share in 1994 (4,028,641) (4,363,613)
------------ -----------
Balance at end of period 138,968,303 122,874,199
------------ -----------
Net unrealized investment gains (losses):
Balance at beginning of period (10,892,295) 14,026,745
Unrealized gain upon adoption of FAS 115 at
beginning of period 0 3,855,293
Change during the period 26,848,708 (23,419,870)
------------ -----------
Balance at end of period 15,956,413 (5,537,832)
------------ -----------
Treasury stock:
Balance at beginning of period 926,732 924,503
Add treasury shares purchased (12 shares in 1995 and
1 share in 1994) 215 5
------------ -----------
Balance at end of period 926,947 924,508
------------ -----------
Total stockholders' equity $210,205,070 172,191,909
============ ===========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 5
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
STATEMENTS OF CONSOLIDATED CASH FLOW
SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
1995 1994
------------ -----------
<S> <C> <C>
Operating activities:
Net earnings $13,590,475 11,772,892
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Change in agents' balances and prepaid commissions (59,425) (644,849)
Change in premiums receivable 1,125,165 (1,316,416)
Change in accrued investment income (5,824,097) (2,715,548)
Change in reinsurance receivables (7,413,301) (1,359,245)
Amortization of deferred acquisition costs 11,292,668 10,909,389
Acquisition costs deferred (16,021,321) (14,118,017)
Change in future policy benefits 4,969,933 3,816,731
Change in policyholders' account balances 23,847,488 16,072,784
Change in unearned premiums (446,103) 2,325,775
Change in policy and contract claims 3,211,096 (5,456,262)
Change in income taxes 2,195,286 890,334
Provision for depreciation and amortization 562,103 932,956
Change in unearned investment income (720,726) (9,340,170)
Other, net 4,895,331 2,460,156
----------- -----------
Net cash provided by operating activities 35,204,572 14,230,510
----------- -----------
Investing activities:
Sales of debt securities 31,575,389 30,223,291
Maturities of debt securities 14,360,497 44,078,068
Sales (purchases) of short-term investments, net 2,558,993 (1,082,709)
Sales of equity securities 1,231,845 749,428
Maturities of mortgage loans on real estate 809,088 1,159,652
Policy loans paid 6,472,990 4,678,303
Purchases of debt securities (75,027,605) (69,801,429)
Purchases of equity securities (1,672,012) (2,936,322)
Origination of mortgage loans on real estate (4,668,750) (3,528,276)
Policy loans made (17,430,436) (17,004,262)
Purchases and additions of property and equipment (1,401,141) (7,091,500)
Other, net 8,831,065 2,334,432
----------- -----------
Net cash used by investing activities (34,360,077) (18,221,324)
----------- -----------
Financing activities:
Change in notes payable to banks, net 4,649,000 6,150,000
Dividends to stockholders (4,028,641) (4,363,613)
Other, net (256,444) 445,855
----------- -----------
Net cash provided by financing activities 363,915 2,232,242
----------- -----------
Increase (decrease) in cash 1,208,410 (1,758,572)
Cash, beginning of period 19,490,055 18,985,151
----------- -----------
Cash, end of period $20,698,465 17,226,579
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 6
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
(UNAUDITED)
(1) The accompanying consolidated financial statements, which are unaudited,
in the opinion of management, include all adjustments necessary to present
fairly the consolidated results of operations and financial position of
the Company for the periods indicated. However, certain information and
note disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
omitted. It is suggested that these consolidated financial statements be
read in conjunction with the consolidated financial statements, schedules
and notes thereto included in the Company's Form 10-K for the year ended
December 31, 1994.
(2) The consolidated financial statements of the Company's life insurance
operations, primarily the operations of American Heritage Life Insurance
Company, have been included in the consolidated financial statements on
the basis of generally accepted accounting principles.
(3) Earnings per share of common stock were based on weighted average number
of shares outstanding during each period, excluding treasury shares.
Options outstanding to purchase common stock had no significant dilative
effect on earnings per share.
(4) Current accrued income taxes were included in other liabilities in the
amount of $200,000 at June 30, 1995 and a current accrued income tax
benefit of $505,200 was included in other assets at December 31, 1994 in
the accompanying consolidated balance sheets.
(5) Certain 1994 figures have been reclassified to conform with the 1995
presentation.
(6) AHL, like other insurance companies, is currently a defendant in lawsuits
that involve claims for punitive, exemplary or other extracontractual
damages, which are for amounts substantially in excess of the actual
damages sought. Management considers such litigation regrettably to be of
the type to which insurance companies are usually and customarily
subjected in the ordinary course of business and to date no such claims of
this nature against AHL have resulted in material losses. Certain of
these cases are in Alabama where the frequency of large punitive damage
awards bearing absolutely no relation to actual damages awarded by juries
is alarming. During the current fiscal year, the number of outstanding
suits against the Company in Alabama has increased. In the opinion of
management, based on the currently ascertained facts of the pending
litigation, which the Company intends to vigorously defend, the ultimate
resolution of such litigation should not be material to the financial
position of the Company.
5
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED JUNE 30, 1995 COMPARED TO
PERIODS ENDED JUNE 30, 1994
RESULTS OF OPERATIONS
American Heritage Life Investment Corporation ("AHLIC") and subsidiaries (the
"Company") are engaged primarily in the life insurance business. The Company's
consolidated net earnings are primarily attributable to its principal
subsidiary, American Heritage Life Insurance Company ("AHL"). Significant
changes in the components of the consolidated results of operations for the
comparative periods are presented below.
Insurance revenues for reporting purposes pursuant to generally accepted
accounting principles (GAAP) include only the mortality, expense and surrender
charges for interest-sensitive products. Insurance revenues do not include
group and credit premium equivalents and cash deposits from interest-sensitive
products. Insurance revenues for the six-months ended June 30, 1995 were
$116.7 million, an increase of 5.2% from the $110.9 million for the same period
in 1994. For the three months ended June 30, 1995, insurance revenues were
$60.3 million versus $56.7 million for the same period in 1994, an increase of
6.3%. These increases were due primarily to an increase in ordinary and credit
accident and health insurance revenues partially offset by a reduction in group
insurance revenues, as a majority of the new group cases were written on a
self-funded or split-funded basis.
As a result of more of the ordinary life business being interest-sensitive, the
group business being on a self-funded or split-funded basis and the credit
business being written on an administrative services only basis, in which only
the fees charged are included in insurance revenues for GAAP purposes, it is
necessary to evaluate insurance revenues including premium equivalents.
Including premium equivalents of $128.1 million and $105.7 million for the six
months ended June 30, 1995 and 1994, respectively, insurance revenues,
including premium equivalents, were $244.7 million and $216.6 million, up 13.0%
in 1995. For the three months ended June 30, 1995 and 1994, insurance
revenues, including premium equivalents of $71.7 million and $57.0 million,
respectively, were $132.0 million and $113.8 million, up 16.0% in 1995. These
increases are primarily due to an increase in group and credit insurance
revenues including premium equivalents.
For the six months ended June 30, 1995, net investment income was $33.4
million, an increase of 1.2% over the $33.0 million reported for the same
period in 1994. Net investment income for the three months ended June 30, 1995
was $17.0 million compared to $16.7 million for the three months ended June 30,
1994, or an increase of 2.0%. These increases in net investment income for the
six months and three months ended June 30, 1995 compared to the same periods in
1994 were due primarily to: (1) an increase in invested assets (2) certain
changes made in the equity security and fixed maturity portfolios during 1995
and 1994 to improve investment results and (3) a small decline in the effective
yield on invested assets. The effective yield on invested assets for the six
months ended June 30, 1995 was 7.50% compared to 7.79% for the same period in
1994.
6
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED JUNE 30, 1995 COMPARED TO
PERIODS ENDED JUNE 30, 1994
RESULTS OF OPERATIONS (CONTINUED)
Realized investment gains for the six months ended June 30, 1995 were $2.2
million compared to $1.0 million for the same period in 1994. For the three
months ended June 30, 1995, realized investment gains were $47,349 compared to
$655,337 for the same period in 1994. Included in realized investment gains
for the six months ended June 30, 1995 was the gain on the sale of a parcel of
undeveloped property offset by the sale of certain securities, the proceeds of
which were reinvested in order to improve the investment results. The realized
investment gains for the second quarter of 1994 included the sales of equity
securities which improved the investment yield.
Benefits and claims were $68.2 million for the six months ended June 30, 1995
down 1.9% from the $69.5 million for the same period in 1994. For the three
months ended June 30, 1995, benefits and claims totalled $34.8 million compared
to $35.5 million for the same period in 1994, or a decrease of 1.9%. These
decreases were due primarily to lower group claims expense as a result of: (1)
more group cases have been written on a self-funded basis where no claim
expense is recorded by the Company and (2) the Group Department's Managed Care
Program and AHL Select Provider Network, which provide reduced medical costs
for group client companies.
Taxes, commissions and general expenses aggregated $50.9 million for the first
six months of 1995 versus $46.1 million for the first six months of 1994, or an
increase of 10.4%. For the three months ended June 30, 1995, taxes,
commissions and general expenses were $27.2 million compared to $24.0 million
for the same period in 1994, or an increase of 13.2%. These increases were
primarily due to an increase in credit commissions as a result of increased
insurance revenues and a higher effective commission rate.
Pursuant to generally accepted accounting principles, the initial costs
directly associated with selling, underwriting and processing ordinary
insurance are deferred and amortized over the premium-paying period of the
related policies for traditional products. For interest-sensitive products,
these costs are amortized over the lives of the policies in relation to the
present value of estimated gross profits from surrender charges and investment,
mortality and expense margins. These costs increase as the amount of sales and
insurance in force increase. The charge to earnings for acquisition costs of
ordinary insurance is comprised of two components: (1) the amortization of
costs for policies which remain in force and (2) the write-off of unamortized
costs related to policies which are terminated. For the six months ended June
30, 1995 the amortization of deferred acquisition costs was $11.3 million
compared to $10.9 million for the comparable period in 1994, or an increase of
3.5%. For the three months ended June 30, 1995 the amortization of deferred
acquisition costs was $5.4 million compared to $5.2 million for the comparable
period in 1994, or an increase of 3.4%. These increases in amortization
expense were primarily due to the growth of business in force.
For the six months ended June 30, 1995, other operating expenses totalled $1.8
million compared to $1.0 million for the same period in 1994, or an increase of
71.1%. For the three months June 30, 1995, other operating expenses were $.9
million compared to $.5 million for the same period in 1994, or an increase of
66.6%. These increases were due primarily
7
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED JUNE 30, 1995 COMPARED TO
PERIODS ENDED JUNE 30, 1994
RESULTS OF OPERATIONS (CONTINUED)
to an increase in interest expense as a result of an increase in the amount of
average outstanding bank debt and an increase in interest rates.
Income taxes increased 17.7% for the six months ended June 30, 1995 from the
same period in 1994 and 3.8% for the three months ended June 30, 1995 versus
the three months ended June 30, 1994, primarily as a result of the increase in
earnings. For the six months ended June 30, 1995 and 1994 the effective tax
rate was 32.4% and 32.0%, respectively. The increase in the effective tax rate
is primarily due to higher realized gains for the six months ended June 30,
1995, which are taxed at a rate of 35%.
LIQUIDITY AND CAPITAL RESOURCES
The Company is engaged primarily in the life insurance business. The principal
subsidiary, AHL, generates major sources of cash flow from premiums collected
for traditional insurance products, deposits and policy charges for interest-
sensitive products and investment income attributable to its life insurance
operations and associated investment portfolio. This results in a significant
portion of the Company's assets being liquid. Such assets are made up of cash,
short-term investments and readily marketable securities.
As an insurer, AHL is required to maintain substantial liabilities for future
policy benefits and policyholders' account balances. Since premiums and
deposits received in anticipation of such benefits are investable funds, it is
expected that AHL will continue to increase its investment portfolio using cash
flow from operations.
The increase in net cash provided by operating activities for the six months
ended June 30, 1995 compared to the same period in 1994 was due primarily to:
(1) the funding in 1994 of the termination of certain premium deposit accounts
with no comparable reduction in 1995; (2) an increase in accrued investment
income and a related decrease in unearned investment income due to changing
policy loan interest on certain plans from in advance to in arrears during 1994
discussed in the following paragraph; and (3) an increase in ordinary life
reserves.
The Company's policy loans are a higher percentage of invested and total assets
than industry norm as a result of a significant block of Management Security
Plan (MSP) business. The MSP product is an interest-sensitive, deferred
compensation/executive benefit-type product with the policy loan feature being
an integral part of the product. A market rate of interest is charged on the
policy loans and a predetermined built-in spread is achieved between the
interest rate charged on the policy loans and the interest rate credited on the
loaned funds. Accordingly, all MSP policy loans are completely collateralized
by the underlying policyholders'
8
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED JUNE 30, 1995 COMPARED TO
PERIODS ENDED JUNE 30, 1994
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
account balances. All policy loans are funded out of cash provided by
operating activities and do not represent a significant restriction on the
Company's liquidity. During 1994, the Company changed the payment method of
interest on these loans from in advance to in arrears, which decreased unearned
investment income and increased accrued investment income.
Effective June 30, 1995, AHL acquired a block of universal life payroll
allotment business from SMA Life Assurance Company, which increased assets
approximately $10.1 million. The annualized premiums on the business amounted
to approximately $3.5 million. The operating results of this business will be
reflected in the earnings of the Company beginning in the third quarter of
1995.
At June 30, 1995, the fair value of the Company's debt security and equity
security portfolio aggregated $541.3 million compared with an amortized cost of
$515.3 million, or an unrealized gain of $26.0 million. At December 31, 1994,
the fair value of the portfolio aggregated $465.2 million compared with an
amortized cost of $486.3 million, or an unrealized loss of $21.1 million. This
change in the unrealized gain is primarily due to market fluctuations as a
result of interest rate changes and the sale of certain securities (as
discussed on page 7), the proceeds of which were reinvested in order to improve
investment results.
The Company's amortized cost of high yield bonds (rated below BBB by Standard &
Poor's Corporation and excluding non- rated and private placements) at June 30,
1995 aggregated $33.8 million with a market value of $34.8 million. At market
value, these investments represented 2.7% of total assets, or 3.7% of total
invested assets. Such holdings were not material to invested assets nor is it
expected that any subsequent gains or losses on these securities would be
material to the operations of the Company.
AHLIC is a holding company, and its liquidity is largely dependent on the
ability of its subsidiaries, primarily AHL, to pay dividends and on external
financings. As a result, AHLIC borrows on an interim basis through lines of
credit with its major banks to cover any short-term cash requirements which
may occur. The increase in bank debt at June 30, 1995 compared to the amount
at December 31, 1994 reflected the cash needs for the holding company including
stockholder dividends, interest expense on outstanding debt and the payment of
Federal income taxes.
9
<PAGE> 11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
AHL, like other insurance companies, is currently a defendant in
lawsuits that involve claims for punitive, exemplary or other
extracontractual damages, which are for amounts substantially in
excess of the actual damages sought. Management considers such
litigation regrettably to be of the type to which insurance
companies are usually and customarily subjected in the ordinary
course of business and to date no such claims of this nature
against AHL have resulted in material losses. Certain of these
cases are in Alabama where the frequency of large punitive damage
awards bearing absolutely no relation to actual damages awarded by
juries is alarming. During the current fiscal year, the number of
outstanding suits against the Company in Alabama has increased. In
the opinion of management, based on the currently ascertained facts
of the pending litigation, which the Company intends to vigorously
defend, the ultimate resolution of such litigation should not be
material to the financial position of the Company.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27 Financial Data Schedule (for SEC purposes only)
(b) None
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto authorized.
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
(REGISTRANT)
Date 8/11/95 /s/ W. Michael Heekin
------------------- --------------------------------------------------
W. Michael Heekin, Senior Vice President and
Corporate Secretary (Authorized Officer)
Date 8/11/95 /s/C. Richard Morehead
------------------ --------------------------------------------------
C. Richard Morehead, Executive Vice President and
Chief Financial Officer (Principal Financial and
Accounting Officer)
10
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 484,021,534
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 57,327,740
<MORTGAGE> 24,485,539
<REAL-ESTATE> 1,043,435
<TOTAL-INVEST> 935,038,385
<CASH> 20,698,465
<RECOVER-REINSURE> 19,144,035
<DEFERRED-ACQUISITION> 158,959,548
<TOTAL-ASSETS> 1,280,758,009
<POLICY-LOSSES> 197,481,687
<UNEARNED-PREMIUMS> 51,158,163
<POLICY-OTHER> 56,519,995
<POLICY-HOLDER-FUNDS> 610,482,165
<NOTES-PAYABLE> 88,850,000
<COMMON> 13,932,395
0
0
<OTHER-SE> 210,205,070
<TOTAL-LIABILITY-AND-EQUITY> 1,280,758,009
116,653,042
<INVESTMENT-INCOME> 33,402,512
<INVESTMENT-GAINS> 2,214,750
<OTHER-INCOME> 0
<BENEFITS> 68,180,027
<UNDERWRITING-AMORTIZATION> 11,292,668
<UNDERWRITING-OTHER> 50,929,939
<INCOME-PRETAX> 20,103,975
<INCOME-TAX> 6,513,500
<INCOME-CONTINUING> 13,590,475
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,590,475
<EPS-PRIMARY> .98
<EPS-DILUTED> .98
<RESERVE-OPEN> 53,309,000
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
