<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended June 30, 1996 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, 1996
13,813,525
<PAGE> 2
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, 1996 DECEMBER 31, 1995
-------------- -----------------
<S> <C> <C>
ASSETS
Investments:
Debt securities, available-for-sale, at fair
value (cost of $511,872,654 in 1996 and
$493,813,866 in 1995) $511,003,055 515,428,786
Equity securities, available-for-sale, at
fair value (cost of $24,603,471 in 1996
and $23,209,058 in 1995) 37,825,144 34,734,980
Mortgage loans on real estate 38,502,851 29,506,184
Investment real estate, at cost 409,387 375,204
Policy loans 383,675,155 376,672,196
Short-term investments 11,864,939 22,885,597
-------------- -----------------
Total investments 983,280,531 979,602,947
Cash 21,028,567 20,681,707
Agents' balances and prepaid commissions 37,996,973 39,077,008
Premiums receivable 44,474,855 41,816,329
Accrued investment income 26,724,923 24,274,265
Deferred acquisition costs 170,217,823 158,250,346
Property and equipment, at cost,
less accumulated depreciation 28,549,911 27,829,804
Reinsurance receivables 10,178,820 9,230,940
Other assets 18,646,885 17,132,578
-------------- -----------------
$1,341,099,288 1,317,895,924
============== =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Policy liabilities:
Future policy benefits $197,400,378 205,087,735
Policyholders' account balances 661,819,201 635,670,066
Unearned premiums 52,994,741 53,317,152
Policy and contract claims 48,209,828 50,375,445
-------------- -----------------
Total policy liabilities 960,424,148 944,450,398
Notes payable to banks, short-term 99,074,000 74,994,000
Notes payable to banks, long-term - 20,000,000
Deferred income taxes 28,618,053 28,882,185
Other liabilities 35,782,785 30,240,111
-------------- -----------------
Total liabilities 1,123,898,986 1,098,566,694
-------------- -----------------
Stockholders' equity:
Common stock of $1 par value. Authorized
35,000,000 in 1996 and 20,000,000 in 1995;
issued 13,967,253 in 1996 and 13,933,206
in 1995 13,967,253 13,933,206
Additional paid-in capital 42,644,212 42,214,787
Retained earnings 155,155,219 148,454,353
Net unrealized investment gains (losses) 8,238,096 16,772,078
-------------- -----------------
220,004,780 221,374,424
Less cost of 130,728 in 1996 and 97,277
in 1995 common shares in treasury 2,804,478 2,045,194
-------------- -----------------
Total stockholders' equity 217,200,302 219,329,230
-------------- -----------------
$1,341,099,288 1,317,895,924
============== =================
</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,
-------------------------- ----------------------------
1996 1995 1996 1995
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Income:
Insurance revenues $124,987,904 116,653,042 63,801,137 60,294,200
Net investment income 38,225,846 33,402,512 19,155,821 17,003,044
Realized investment gains, net 158,508 2,214,750 53,036 47,349
------------ ------------ ------------- -------------
Total income 163,372,258 152,270,304 83,009,994 77,344,593
------------ ------------ ------------- -------------
Benefits, claims and expenses:
Benefits and claims 71,346,266 68,180,027 35,417,226 34,789,193
Underwriting, acquisition and insurance expenses:
Taxes, commissions and general expenses 57,331,960 50,929,939 30,156,401 27,196,016
Amortization of deferred acquisition costs 12,930,689 11,292,668 6,527,891 5,407,905
Other operating expenses 1,933,788 1,763,695 979,464 884,476
------------ ------------ ------------- -------------
Total benefits, claims and expenses 143,542,703 132,166,329 73,080,982 68,277,590
------------ ------------ ------------- -------------
Earnings before income taxes 19,829,555 20,103,975 9,929,012 9,067,003
Income taxes 6,350,300 6,513,500 3,178,900 2,934,300
------------ ------------ ------------- -------------
Net earnings $ 13,479,255 13,590,475 6,750,112 6,132,703
============ ============ ============= =============
Net earnings per share of common stock $ 0.97 0.98 0.49 0.44
============ ============ ============= =============
Dividends declared per share $ 0.49 0.29 0.31 .18
============ ============ ============= =============
Average number of shares outstanding $ 13,836,211 13,882,388 13,839,065 13,886,657
============ ============ ============= =============
</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, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
1996 1995
------------ ------------
<S> <C> <C>
Common stock:
Balance at beginning of period $13,933,206 13,905,794
Other shares issued 34,047 26,601
------------ ------------
Balance at end of period 13,967,253 13,932,395
------------ ------------
Additional paid-in capital:
Balance at beginning of period 42,214,787 41,866,379
Excess over par value on shares issued 317,030 436,618
Net change on exercise of stock options 112,395 (28,091)
------------ ------------
Balance at end of period 42,644,212 42,274,906
------------ ------------
Retained earnings:
Balance at beginning of period 148,454,353 129,406,469
Add net earnings 13,479,255 13,590,475
------------ ------------
161,933,608 142,996,944
Deduct cash dividends declared on common stock - $.49
per share in 1996 and $.29 per share in 1995 (6,778,389) (4,028,641)
------------ ------------
Balance at end of period 155,155,219 138,968,303
------------ ------------
Net unrealized investment gains (losses):
Balance at beginning of period 16,772,078 (10,892,295)
Change during the period (8,533,982) 26,848,708
------------ ------------
Balance at end of period 8,238,096 15,956,413
------------ ------------
Treasury stock:
Balance at beginning of period 2,045,194 926,732
Add treasury shares purchased (33,451 shares in 1996
and 12 shares in 1995) 759,284 215
------------ ------------
Balance at end of period 2,804,478 926,947
------------ ------------
Total stockholders' equity $217,200,302 210,205,070
============ ============
</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, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
1996 1995
------------ ------------
<S> <C> <C>
Operating activities:
Net earnings $13,479,255 13,590,475
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Change in agents' balances and prepaid commissions 1,080,035 (59,425)
Change in premiums receivable (2,658,526) 1,125,165
Change in accrued investment income (2,450,658) (5,824,097)
Change in reinsurance receivables (947,880) (7,413,301)
Amortization of deferred acquisition costs 12,930,689 11,292,668
Acquisition costs deferred (17,238,780) (16,021,321)
Change in future policy benefits (7,687,357) 4,969,933
Change in policyholders' account balances 26,149,135 23,847,488
Change in unearned premiums (322,411) (446,103)
Change in policy and contract claims (2,165,617) 3,211,096
Change in income taxes 4,231,268 2,195,286
Provision for depreciation and amortization 1,365,872 562,103
Change in unearned investment income (187,283) (720,726)
Other, net 2,496,097 4,895,331
------------ ------------
Net cash provided by operating activities 28,073,839 35,204,572
------------ ------------
Investing activities:
Sales of debt securities 4,652,425 31,575,389
Maturities of debt securities 17,493,275 14,360,497
Sales (purchases) of short-term investments, net 11,020,658 2,558,993
Sales of equity securities 658,328 1,231,845
Maturities of mortgage loans on real estate 1,671,333 809,088
Policy loans paid 17,108,037 6,472,990
Purchases of debt securities (40,306,533) (75,027,605)
Purchases of equity securities (2,648,568) (1,672,012)
Origination of mortgage loans on real estate (10,668,000) (4,668,750)
Policy loans made (24,110,996) (17,430,436)
Purchases and additions of property and equipment
and investment real estate (1,524,334) (1,401,141)
Other, net 125,000 8,831,065
------------ ------------
Net cash used by investing activities (26,529,375) (34,360,077)
------------ ------------
Financing activities:
Change in notes payable to banks, net 4,080,000 4,649,000
Dividends to stockholders (6,778,389) (4,028,641)
Other, net 1,500,785 (256,444)
------------ ------------
Net cash provided by financing activities (1,197,604) 363,915
------------ ------------
Increase in cash 346,860 1,208,410
Cash, beginning of period 20,681,707 19,490,055
------------ ------------
Cash, end of period $21,028,567 20,698,465
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 6
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996
(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, 1995.
(2) The financial statements of the Company's life insurance operations,
primarily the operations of American Heritage Life Insurance Company
(AHL), 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 the 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 June 30, 1996 and December 31, 1995 in the
accompanying consolidated balance sheets.
(5) 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 to in the ordinary course of business and to date the
settlements of such claims of this nature have not been material to the
financial position of the Company. 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, 1996 COMPARED TO
PERIODS ENDED JUNE 30, 1995
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 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, 1996 were
$125.0 million, an increase of 7.1% from the $116.7 million for the same period
in 1995. For the three months ended June 30, 1996, insurance revenues were
$63.8 million versus $60.3 million for the same period in 1995, an increase of
5.8%. These increases were due primarily to an increase in ordinary and credit
accident and health insurance revenues.
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 $140.0 million and $128.1
million for the six months ended June 30, 1996 and 1995, respectively,
insurance revenues, including premium equivalents, were $265.0 million and
$244.7 million, up 8.3% in 1996. For the three months ended June 30, 1996 and
1995, insurance revenues, including premium equivalents of $79.2 million and
$71.7 million, respectively, were $143.0 million and $132.0 million,
respectively, up 8.3% in 1996. These increases are primarily due to an
increase in ordinary insurance revenues including premium equivalents due
primarily to a new long-term care product and rate increases on certain
cancer/dread disease plans and an increase in credit insurance revenues and
premium equivalents due to increased sales of reinsurance, which generally
provides less risk to the Company at an acceptable profit margin.
For the six months ended June 30, 1996, net investment income was $38.2
million, an increase of 14.4% over the $33.4 million reported for the same
period in 1995. Net investment income for the three months ended June 30, 1996
was $19.2 million compared to $17.0 million for the three months ended June 30,
1995, or an increase of 12.7%. These increases in net investment income for
the six months and three months ended June 30, 1996 compared to the same
periods in 1995 were due primarily to: (1) an increase in invested assets, (2)
an increase in Management Security Plan (MSP) policy loan interest due to an
increase in the average rate charged (9.30% in 1996 versus 8.09% in 1995) and
increased policy loan balances (see page 8 for discussion regarding MSP loans)
and (3) changes made to the investment portfolio to improve the overall
investment results. The effective yield on invested assets for the six months
ended June 30, 1996 was 7.81% compared to 7.50% for the same period in 1995.
Realized investment gains for the six months ended June 30, 1996 were $.2
million compared to $2.2 million for the same period in 1995. For the three
months ended June 30, 1996, realized investment gains were $53,036 compared to
$47,349 for the same period in 1995. The realized investment gains for the six
months ended June 30, 1995 included a one time unusual gain on the sale of a
parcel of undeveloped property with no comparable amount in 1996.
6
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED JUNE 30, 1996 COMPARED TO
PERIODS ENDED JUNE 30, 1995
RESULTS OF OPERATIONS (CONTINUED)
Benefits and claims were $71.3 million for the six months ended June 30, 1996
up 4.6% from the $68.2 million for the same period in 1995. For the three
months ended June 30, 1996, benefits and claims totalled $35.4 million compared
to $34.8 million for the same period in 1995, or an increase of 1.8%. These
increases for the six months and three months ended June 30, 1996 versus 1995
were due primarily to increased ordinary benefits, including increased interest
credited to policyholder account balances, an increase in mortality experience
and an increase in unearned premiums for long term care business which is
included in benefits and claims for financial statement purposes.
Taxes, commissions and general expenses aggregated $57.3 million for the first
six months of 1996 versus $50.9 million for the first six months of 1995, or an
increase of 12.6%. For the three months ended June 30, 1996, taxes,
commissions and general expenses were $30.2 million compared to $27.2 million
for the same period in 1995, or an increase of 10.9%. These increases were
primarily due to an increase in commissions on long-term care and credit
business as a result of increased insurance revenues.
Pursuant to GAAP, 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, 1996 the amortization of
deferred acquisition costs was $12.9 million compared to $11.3 million for the
comparable period in 1995, or an increase of 14.5%. For the three months ended
June 30, 1996, the amortization of deferred acquisition costs were $6.5 million
compared to $5.4 million for the comparable period in 1995, or an increase of
20.7%. These increases in amortization expense were primarily due to increased
amortization from the growth of business in force and surrenders of ordinary
life business and lapses of individual accident and health business, which
increased the write-off of the policies' deferred acquisition costs.
For the six months ended June 30, 1996, other operating expenses totalled $1.9
million compared to $1.8 million for the same period in 1995, or an increase of
9.6%. For the three months ended June 30, 1996, other operating expenses were
$1.0 million compared to $.9 million for the same period in 1995, or an
increase of 10.7%. 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.
Income taxes decreased 2.5% for the six months ended June 30, 1996 from the
same period in 1995, primarily as a result of a decrease in net earnings and a
lower effective tax rate. For the six months ended June 30, 1996 and 1995 the
effective tax rate was 32.0% and 32.4%, respectively. This decrease in the
effective tax rate was primarily due to higher realized gains for the six months
ended June 30, 1995, which were taxed at a rate of 35%.
7
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED JUNE 30, 1996 COMPARED TO
PERIODS ENDED JUNE 30, 1995
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 decrease in net cash provided by operating activities for the six months
ended June 30, 1996 compared to the same period in 1995 was due primarily to:
(1) funding the surrenders of certain ordinary life policies and (2) funding
the return of certain group claim 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' 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.
At June 30, 1996, the fair value of the Company's debt and equity security
portfolio aggregated $548.8 million compared with an amortized cost of $536.5
million, or an unrealized gain of $12.3 million. At December 31, 1995, the
fair value of the portfolio aggregated $550.2 million compared with an
amortized cost of $517.0 million, or an unrealized gain of $33.2 million. This
change in the unrealized gain is primarily due to changes in market conditions.
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,
1996 aggregated $23.9 million with a market value of $24.6 million. At market
value, these investments represented 1.8% of total assets, or 2.5% 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, 1996 compared to the amount
at December 31, 1995 reflected the cash needs for the holding company including
stockholder dividends, federal income taxes and interest expense on outstanding
debt.
8
<PAGE> 10
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 to in the ordinary course of business and to
date the settlement of such claims of this nature have not been material
to the financial position of the Company. 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 proposes only)
(b) A Form 8-K report was filed on May 8, 1996 including the
following items:
Item 5. Other Events
Item 7. Financial Statements and Exhibit
(c) Exhibits
- Articles of Amendment and Restatement of
Articles of Incorporation of American
Heritage Life Investment Corporation,
filed with the Secretary of State of the
State of Florida on April 26, 1996.
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 08/12/96 /s/ W. Michael Heekin
----------------------- --------------------------------------------
W. Michael Heekin, Senior Vice President and
Corporate Secretary (Authorized Officer)
Date 08/12/96 /s/ C. Richard Morehead
----------------------- --------------------------------------------
C. Richard Morehead, Executive Vice
President and Chief Financial Officer
(Principal Financial and Accounting Officer)
9
<TABLE> <S> <C>
<ARTICLE> 7
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<DEBT-HELD-FOR-SALE> 511,003,055
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 37,825,144
<MORTGAGE> 38,502,851
<REAL-ESTATE> 409,387
<TOTAL-INVEST> 983,280,531
<CASH> 21,028,567
<RECOVER-REINSURE> 10,178,820
<DEFERRED-ACQUISITION> 170,217,823
<TOTAL-ASSETS> 1,341,099,288
<POLICY-LOSSES> 197,400,378
<UNEARNED-PREMIUMS> 52,994,741
<POLICY-OTHER> 48,209,828
<POLICY-HOLDER-FUNDS> 661,819,201
<NOTES-PAYABLE> 99,074,000
0
0
<COMMON> 13,967,253
<OTHER-SE> 203,233,049
<TOTAL-LIABILITY-AND-EQUITY> 1,341,099,288
124,987,904
<INVESTMENT-INCOME> 38,225,846
<INVESTMENT-GAINS> 158,508
<OTHER-INCOME> 0
<BENEFITS> 71,346,266
<UNDERWRITING-AMORTIZATION> 12,930,689
<UNDERWRITING-OTHER> 57,331,960
<INCOME-PRETAX> 19,829,555
<INCOME-TAX> 6,350,300
<INCOME-CONTINUING> 13,479,255
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,479,255
<EPS-PRIMARY> .97
<EPS-DILUTED> .97
<RESERVE-OPEN> 50,375,445
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
