<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 September 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
October 31, 1995
13,886,425
<PAGE> 2
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 DECEMBER 31, 1994
------------------ -----------------
<S> <C> <C>
ASSETS
Investments:
Debt securities, available-for-sale, at fair
value (cost of $502,307,239 in 1995 and
$450,670,196 in 1994) $ 516,107,921 412,746,726
Equity securities, available-for-sale, at
fair value (cost of $28,590,241 in 1995
and $35,583,745 in 1994) 40,058,167 52,476,038
Mortgage loans on real estate 25,128,475 20,625,877
Investment real estate, at cost 1,058,108 1,022,985
Policy loans 366,402,166 351,160,060
Short-term investments 4,064,493 7,697,740
--------------- -------------
Total investments 952,819,330 845,729,426
Cash 19,632,995 19,490,055
Agents' balances and prepaid commissions 38,722,715 39,146,576
Premiums receivable 43,250,020 43,434,693
Accrued investment income 27,191,927 16,197,251
Deferred acquisition costs 158,376,377 162,867,773
Property and equipment, at cost,
less accumulated depreciation 27,914,716 27,294,320
Reinsurance receivables 11,264,346 11,730,734
Other assets 15,418,882 13,366,322
--------------- -------------
$ 1,294,591,308 1,179,257,150
=============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Policy liabilities:
Future policy benefits $ 201,578,505 192,511,754
Policyholders' account balances 620,226,853 576,535,760
Unearned premiums 52,629,592 51,604,266
Policy and contract claims 50,656,513 53,308,899
--------------- -------------
Total policy liabilities 925,091,463 873,960,679
Notes payable to banks, short-term 73,479,000 64,201,000
Notes payable to banks, long-term 20,000,000 20,000,000
Deferred income taxes 28,415,340 16,559,755
Other liabilities 34,714,599 31,176,101
--------------- -------------
Total liabilities 1,081,700,402 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 144,343,945 129,406,469
Net unrealized investment gains (losses) 13,266,607 (10,892,295)
--------------- -------------
213,817,853 174,286,347
Less cost of 45,966 in 1995 and 45,954
in 1994 common shares in treasury 926,947 926,732
--------------- -------------
Total stockholders' equity 212,890,906 173,359,615
--------------- -------------
$ 1,294,591,308 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 NINE MONTHS ENDED FOR THE THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------------- ----------------------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Insurance revenues $ 180,809,902 170,342,855 64,156,860 59,473,494
Net investment income 51,505,853 49,898,190 18,103,341 16,878,761
Realized investment gains 5,145,912 1,256,765 2,931,162 274,007
------------- ----------- ---------- -----------
Total income 237,461,667 221,497,810 85,191,363 76,626,262
------------- ----------- ---------- -----------
Benefits, claims and expenses:
Benefits and claims 107,466,520 107,965,039 39,286,493 38,482,715
Underwriting, acquisition and insurance expenses:
Taxes, commissions and general expenses 78,107,459 70,479,528 27,177,520 24,338,948
Amortization of deferred acquisition costs 17,459,784 15,514,851 6,167,116 4,605,462
Other operating expenses 2,720,571 1,647,887 956,876 617,024
------------- ----------- ---------- -----------
Total benefits, claims and expenses 205,754,334 195,607,305 73,588,005 68,044,149
------------- ----------- ---------- -----------
Earnings before income taxes 31,707,333 25,890,505 11,603,358 8,582,113
Income taxes 10,233,600 8,224,400 3,720,100 2,688,900
------------- ----------- ---------- -----------
Net earnings $ 21,473,733 17,666,105 7,883,258 5,893,213
============= =========== ========== ===========
Net earnings per share of common stock $ 1.55 1.28 0.57 0.43
============= =========== ========== ===========
Dividends declared per share $ 0.4700 0.4800 0.1800 .1650
============= =========== ========== ===========
Average number of shares outstanding 13,883,750 13,853,871 13,886,429 13,859,158
============= =========== ========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE> 4
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
NINE MONTHS ENDED SEPTEMBER 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 21,473,733 17,666,105
------------- -----------
150,880,202 133,131,025
Deduct cash dividends declared on common stock - $.47
per share in 1995 and $.48 per share in 1994 (6,536,257) (6,650,057)
------------- -----------
Balance at end of period 144,343,945 126,480,968
------------- -----------
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 24,158,902 (26,082,365)
------------- -----------
Balance at end of period 13,266,607 (8,200,327)
------------- -----------
Treasury stock:
Balance at beginning of period 926,732 924,503
Add treasury shares purchased (12 shares in 1995 and
15 shares in 1994) 215 251
------------- -----------
Balance at end of period 926,947 924,754
------------- -----------
Total stockholders' equity $ 212,890,906 173,135,937
============= ===========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 5
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
STATEMENTS OF CONSOLIDATED CASH FLOW
NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
1995 1994
------------- -----------
<S> <C> <C>
Operating activities:
Net earnings $ 21,473,733 17,666,105
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Change in agents' balances and prepaid commissions 423,861 (775,246)
Change in premiums receivable 184,673 (2,879,393)
Change in accrued investment income (10,990,174) (5,692,067)
Change in reinsurance receivables 466,388 (1,523,434)
Amortization of deferred acquisition costs 17,459,784 15,514,851
Acquisition costs deferred (24,924,956) (20,711,528)
Change in future policy benefits 9,066,751 7,812,672
Change in policyholders' account balances 33,470,020 26,992,403
Change in unearned premiums 1,025,326 2,644,075
Change in policy and contract claims (2,652,386) (5,047,989)
Change in income taxes 4,591,148 3,463,823
Provision for depreciation and amortization 1,151,321 1,385,769
Change in unearned investment income (735,218) (14,254,690)
Other, net (1,090,489) 606,847
-------------- -----------
Net cash provided by operating activities 48,919,782 25,202,198
------------- -----------
Investing activities:
Sales of debt securities 31,710,890 32,730,381
Maturities of debt securities 21,321,957 50,475,155
Sales (purchases) of short-term investments, net 3,633,247 448,666
Sales of equity securities 8,258,421 1,476,999
Maturities of mortgage loans on real estate 1,184,902 1,674,108
Policy loans paid 15,368,205 12,365,102
Payment for acquisition of block of business 6,226,470 0
Loss provision for certain investments 9,055,000 0
Purchases of debt securities (113,213,685) (84,757,199)
Purchases of equity securities (1,947,459) (3,311,805)
Origination of mortgage loans on real estate (6,187,500) (4,700,151)
Policy loans made (29,710,888) (23,967,887)
Purchases and additions of property and equipment (1,712,652) (11,298,555)
Other, net 4,742,845 (1,573,084)
------------- -----------
Net cash used by investing activities (51,270,247) (30,438,270)
------------- -----------
Financing activities:
Change in notes payable to banks, net 9,278,000 9,320,000
Dividends to stockholders (6,536,257) (6,650,057)
Other, net (248,338) 488,072
------------- -----------
Net cash provided by financing activities 2,493,405 3,158,015
------------- -----------
Increase (decrease) in cash 142,940 (2,078,057)
Cash, beginning of period 19,490,055 18,985,151
------------- -----------
Cash, end of period $ 19,632,995 16,907,094
============= ===========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 6
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 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 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 dilutive
effect on earnings per share.
(4) Current accrued income taxes were included in other liabilities in the
amount of $100,000 at September 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 SEPTEMBER 30, 1995 COMPARED TO
PERIODS ENDED SEPTEMBER 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 nine-months ended September 30, 1995 were
$180.8 million, an increase of 6.1% from the $170.3 million for the same period
in 1994. For the three months ended September 30, 1995, insurance revenues
were $64.2 million versus $59.5 million for the same period in 1994, an
increase of 7.9%. These increases were due primarily to an increase in
ordinary accident and health and credit 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 a reinsurance/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 $195.9 million and $158.2
million for the nine months ended September 30, 1995 and 1994, respectively,
insurance revenues, including premium equivalents, were $376.7 million and
$328.5 million, up 14.7% in 1995. For the three months ended September 30,
1995 and 1994, insurance revenues, including premium equivalents of $67.8
million and $52.4 million, respectively, were $132.0 million and $111.9
million, up 17.9% in 1995. These increases are primarily due to an increase in
group and credit insurance revenues including premium equivalents.
For the nine months ended September 30, 1995, net investment income was $51.5
million, an increase of 3.2% over the $49.9 million reported for the same
period in 1994. Net investment income for the three months ended September 30,
1995 was $18.1 million compared to $16.9 million for the three months ended
September 30, 1994, or an increase of 7.3%. These increases in net investment
income for the nine months and three months ended September 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 investment portfolio during 1995 and
1994 to improve investment results and (3) a decline in the effective yield on
invested assets. The effective yield on invested assets for the nine months
ended September 30, 1995 was 7.57% compared to 7.85% for the same period in
1994.
6
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED SEPTEMBER 30, 1995 COMPARED TO
PERIODS ENDED SEPTEMBER 30, 1994
RESULTS OF OPERATIONS (CONTINUED)
Realized investment gains for the nine months ended September 30, 1995 were
$5.1 million compared to $1.3 million for the same period in 1994. For the
three months ended September 30, 1995, realized investment gains were $2.9
million compared to $.3 million for the same period in 1994. Realized gains
for the nine and three months ended September 30, 1995 included net gains
realized related to restructuring the investment portfolio consistent with the
Company's investment strategies. The realized investment gains for the nine
months ended September 30, 1995 included a gain on the sale of a parcel of
undeveloped property.
Benefits and claims were $107.5 million for the nine months ended September 30,
1995 down .5% from the $108.0 million for the same period in 1994. For the
three months ended September 30, 1995, benefits and claims totalled $39.3
million compared to $38.5 million for the same period in 1994, or an increase
of 2.1%. The decrease for the nine month period was 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. This decrease
was offset by higher mortality on ordinary life business and an increase in
morbidity experience on cancer business. The increase for the three months
ended September 30, 1995 versus 1994 included increased ordinary benefits
partially offset by lower group claims expense.
Taxes, commissions and general expenses aggregated $78.1 million for the first
nine months of 1995 versus $70.5 million for the first nine months of 1994, or
an increase of 10.8%. For the three months ended September 30, 1995, taxes,
commissions and general expenses were $27.2 million compared to $24.3 million
for the same period in 1994, or an increase of 11.7%. These increases were
primarily due to an increase in credit commissions as a result of increased
insurance revenues.
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 nine months ended
September 30, 1995 the amortization of deferred acquisition costs was $17.5
million compared to $15.5 million for the comparable period in 1994, or an
increase of 12.5%. For the three months ended September 30, 1995 the
amortization of deferred acquisition costs was $6.2 million compared to $4.6
million for the comparable period in 1994, or an increase of 33.9%. These
increases in amortization expense were primarily due to the growth of
7
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED SEPTEMBER 30, 1995 COMPARED TO
PERIODS ENDED SEPTEMBER 30, 1994
RESULTS OF OPERATIONS (CONTINUED)
business in force, and an increase in lapses of individual health business
which increases the write-off of the policies' deferred acquisition costs.
For the nine months ended September 30, 1995, other operating expenses totalled
$2.7 million compared to $1.6 million for the same period in 1994, or an
increase of 65.1%. For the three months September 30, 1995, other operating
expenses were $1.0 million compared to $.6 million for the same period in 1994,
or an increase of 55.1%. These increases were due primarily 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 24.4% for the nine months ended September 30, 1995 from
the same period in 1994 and 38.4% for the three months ended September 30, 1995
versus the three months ended September 30, 1994, primarily as a result of an
increase in earnings and a higher effective tax rate. For the nine months
ended September 30, 1995 and 1994 the effective tax rate was 32.3% and 31.8%,
respectively, and for the three months ended September 30, 1995 and 1994 the
effective tax rate was 32.1% and 31.3%, respectively. These increases in the
effective tax rate are primarily due to higher realized gains for the nine
months and three months ended September 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 nine months
ended September 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 and (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.
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
8
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED SEPTEMBER 30, 1995 COMPARED TO
PERIODS ENDED SEPTEMBER 30, 1994
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
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' 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 were
reflected in the earnings of the Company in the third quarter of 1995.
At September 30, 1995, the fair value of the Company's debt security and equity
security portfolio aggregated $556.2 million compared with an amortized cost of
$530.9 million, or an unrealized gain of $25.3 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 changes in market conditions
and changes made related to restructuring the investment portfolio consistent
with the Company's investment strategy.
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
September 30, 1995 aggregated $32.4 million with a market value of $34.2
million. At market value, these investments represented 2.6% of total assets,
or 3.6% 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 September 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 11/13/95 /s/W. Michael Heekin
---------------------- -------------------------------------------------
W. Michael Heekin, Senior Vice President and
Corporate Secretary (Authorized Officer)
Date 11/13/95 /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
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<DEBT-HELD-FOR-SALE> 516,107,921
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 40,058,167
<MORTGAGE> 25,128,475
<REAL-ESTATE> 1,058,108
<TOTAL-INVEST> 952,819,330
<CASH> 19,632,995
<RECOVER-REINSURE> 11,264,346
<DEFERRED-ACQUISITION> 158,376,377
<TOTAL-ASSETS> 1,294,591,308
<POLICY-LOSSES> 201,578,505
<UNEARNED-PREMIUMS> 52,629,592
<POLICY-OTHER> 50,656,513
<POLICY-HOLDER-FUNDS> 620,226,853
<NOTES-PAYABLE> 93,479,000
<COMMON> 13,932,395
0
0
<OTHER-SE> 212,890,906
<TOTAL-LIABILITY-AND-EQUITY> 1,294,591,308
180,809,902
<INVESTMENT-INCOME> 51,505,853
<INVESTMENT-GAINS> 5,145,912
<OTHER-INCOME> 0
<BENEFITS> 107,466,520
<UNDERWRITING-AMORTIZATION> 17,459,784
<UNDERWRITING-OTHER> 78,107,459
<INCOME-PRETAX> 31,707,333
<INCOME-TAX> 10,233,600
<INCOME-CONTINUING> 21,473,733
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,473,733
<EPS-PRIMARY> 1.55
<EPS-DILUTED> 1.55
<RESERVE-OPEN> 53,309,000
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