<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 September 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
October 31, 1996
13,813,525
<PAGE> 2
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30, 1996 DECEMBER 31, 1995
-------------------- -----------------
<S> <C> <C>
ASSETS
Investments:
Debt securities, available-for-sale, at fair
value (cost of $526,310,769 in 1996 and
$493,813,866 in 1995) $ 527,542,309 515,428,786
Equity securities, available-for-sale, at
fair value (cost of $25,149,599 in 1996
and $23,209,058 in 1995) 39,696,999 34,734,980
Mortgage loans on real estate 44,982,835 29,506,184
Investment real estate, at cost 449,910 375,204
Policy loans 390,311,811 376,672,196
Short-term investments 10,660,672 22,885,597
--------------- -------------
Total investments 1,013,644,536 979,602,947
Cash 21,691,317 20,681,707
Agents' balances and prepaid commissions 36,663,677 39,077,008
Premiums receivable 43,817,874 41,816,329
Accrued investment income 29,155,943 24,274,265
Deferred acquisition costs 173,018,976 158,250,346
Property and equipment, at cost,
less accumulated depreciation 28,712,895 27,829,804
Reinsurance receivables 13,473,194 9,230,940
Other assets 19,590,961 17,132,578
--------------- -------------
$ 1,379,769,373 1,317,895,924
=============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Policy liabilities:
Future policy benefits $ 200,416,921 205,087,735
Policyholders' account balances 671,871,005 635,670,066
Unearned premiums 51,994,368 53,317,152
Policy and contract claims 50,910,093 50,375,445
--------------- -------------
Total policy liabilities 975,192,387 944,450,398
Notes payable to banks, short-term 102,184,000 74,994,000
Notes payable to banks, long-term 0 20,000,000
Deferred income taxes 30,834,433 28,882,185
Other liabilities 49,008,675 30,240,111
--------------- -------------
Total liabilities 1,157,219,495 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 159,261,937 148,454,353
Net unrealized investment gains (losses) 9,963,054 16,772,078
--------------- -------------
225,836,456 221,374,424
Less cost of 153,728 in 1996 and 97,277
in 1995 common shares in treasury 3,286,578 2,045,194
--------------- -------------
Total stockholders' equity 222,549,878 219,329,230
--------------- -------------
$ 1,379,769,373 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 NINE MONTHS ENDED FOR THE THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------- --------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Insurance revenues $191,607,931 180,809,902 66,620,027 64,156,860
Net investment income 57,498,766 51,505,853 19,272,920 18,103,341
Realized investment gains, net 283,419 5,145,912 124,911 2,931,162
------------ ----------- ---------- ----------
Total income 249,390,116 237,461,667 86,017,858 85,191,363
------------ ----------- ---------- ----------
Benefits, claims and expenses:
Benefits and claims 109,971,884 107,466,520 38,625,618 39,286,493
Underwriting, acquisition and insurance expenses:
Taxes, commissions and general expenses 87,525,832 78,107,459 30,193,872 27,177,520
Amortization of deferred acquisition costs 19,118,875 17,459,784 6,188,186 6,167,116
Other operating expenses 3,047,374 2,720,571 1,113,586 956,876
------------ ----------- ---------- ----------
Total benefits, claims and expenses 219,663,965 205,754,334 76,121,262 73,588,005
------------ ----------- ---------- ----------
Earnings before income taxes 29,726,151 31,707,333 9,896,596 11,603,358
Income taxes 9,517,400 10,233,600 3,167,100 3,720,100
------------ ----------- ---------- ----------
Net earnings $ 20,208,751 21,473,733 6,729,496 7,883,258
============ =========== ========== ==========
Net earnings per share of common stock $ 1.46 1.55 0.49 0.57
============ =========== ========== ==========
Dividends declared per share $ .68 .47 .19 .18
============ =========== ========== ==========
Average number of shares outstanding 13,829,602 13,883,750 13,816,527 13,886,429
============ =========== ========== ==========
</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, 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 20,208,751 21,473,733
------------ -----------
168,663,104 150,880,202
Deduct cash dividends declared on common stock - $.68
per share in 1996 and $.47 per share in 1995 (9,401,167) (6,536,257)
------------ -----------
Balance at end of period 159,261,937 144,343,945
------------ -----------
Net unrealized investment gains (losses):
Balance at beginning of period 16,772,078 (10,892,295)
Change during the period (6,809,024) 24,158,902
------------ -----------
Balance at end of period 9,963,054 13,266,607
------------ -----------
Treasury stock:
Balance at beginning of period 2,045,194 926,732
Add treasury shares purchased (56,451 shares in 1996
and 12 shares in 1995) 1,241,384 215
------------ -----------
Balance at end of period 3,286,578 926,947
------------ -----------
Total stockholders' equity $222,549,878 212,890,906
============ ===========
</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, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
1996 1995
------------- -------------
<S> <C> <C>
Operating activities:
Net earnings $ 20,208,751 21,473,733
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Change in agents' balances and prepaid commissions 2,413,331 423,861
Change in premiums receivable (2,001,545) 184,673
Change in accrued investment income (4,881,678) (10,990,174)
Change in reinsurance receivables (4,242,254) 466,388
Amortization of deferred acquisition costs 19,118,875 17,459,784
Acquisition costs deferred (27,001,127) (24,924,956)
Change in future policy benefits (4,670,814) 9,066,751
Change in policyholders' account balances 36,200,939 33,470,020
Change in unearned premiums (1,322,784) 1,025,326
Change in policy and contract claims 534,648 (2,652,386)
Change in income taxes 5,518,748 4,591,148
Provision for depreciation and amortization 1,983,118 1,151,321
Change in unearned investment income (236,883) (735,218)
Other, net 9,656,874 (1,090,489)
------------- -------------
Net cash provided by operating activities 51,278,199 48,919,782
------------- ------------
Investing activities:
Sales of debt securities 10,843,708 31,710,890
Maturities of debt securities 23,701,776 21,321,957
Sales (purchases) of short-term investments, net 12,224,924 3,633,247
Sales of equity securities 1,736,862 8,258,421
Maturities of mortgage loans on real estate 2,132,011 1,184,902
Policy loans paid 21,275,349 15,368,205
Payment for acquisition of block of business - 6,226,470
Loss provision for certain investments - 9,055,000
Purchases of debt securities (67,127,134) (113,213,685)
Purchases of equity securities (4,483,384) (1,947,459)
Origination of mortgage loans on real estate (17,608,661) (6,187,500)
Policy loans made (34,914,964) (29,710,888)
Purchases and additions of property and equipment
and investment real estate (2,148,388) (1,712,652)
Other, net 5,296,856 4,742,845
------------- ------------
Net cash used by investing activities (49,071,045) (51,270,247)
------------- ------------
Financing activities:
Change in notes payable to banks, net 7,190,000 9,278,000
Dividends to stockholders (9,401,167) (6,536,257)
Other, net 1,013,623 (248,338)
------------- ------------
Net cash provided (used) by financing activities (1,197,544) 2,493,405
------------- ------------
Increase in cash 1,009,610 142,940
Cash, beginning of period 20,681,707 19,490,055
------------- ------------
Cash, end of period $ 21,691,317 19,632,995
============= ============
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 6
AMERICAN HERITAGE LIFE INVESTMENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 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 September 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 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 SEPTEMBER 30, 1996 COMPARED TO
PERIODS ENDED SEPTEMBER 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 nine months ended September 30, 1996 were
$191.6 million, an increase of 6.0% from the $180.8 million for the same period
in 1995. For the three months ended September 30, 1996, insurance revenues
were $66.6 million versus $64.2 million for the same period in 1995, an
increase of 3.8%. These increases were due primarily to an increase in
ordinary 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 reinsured or 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 $222.9 million and $195.9
million for the nine months ended September 30, 1996 and 1995, respectively,
insurance revenues, including premium equivalents, were $414.5 million and
$376.7 million, up 10.0% in 1996. For the three months ended September 30,
1996 and 1995, insurance revenues, including premium equivalents of $82.9
million and $67.8 million, respectively, were $149.5 million and $132.0
million, respectively, up 13.3% in 1996. These increases in insurance revenue
including premium equivalents were primarily due to an increase in ordinary
revenues related to a new long-term care product and rate increases on certain
cancer/dread disease plans. Also, credit insurance revenues and premium
equivalents were up due to increased sales of reinsurance, which generally
provides less risk to the Company at an acceptable profit margin and an
increase in administrative services only business.
For the nine months ended September 30, 1996, net investment income was $57.5
million, an increase of 11.6% over the $51.5 million reported for the same
period in 1995. Net investment income for the three months ended September 30,
1996 was $19.3 million compared to $18.1 million for the three months ended
September 30, 1995, or an increase of 6.5%. These increases in net investment
income for the nine months and three months ended September 30, 1996 compared
to the same period 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 (9.13% in 1996 versus 8.31% 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
nine months ended September 30, 1996 was 7.77% compared to 7.57% for the same
period in 1995.
6
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED SEPTEMBER 30, 1996 COMPARED TO
PERIODS ENDED SEPTEMBER 30, 1996
RESULTS OF OPERATIONS (CONTINUED)
Realized investment gains for the nine months ended September 30, 1996 were $.3
million compared to $5.1 million for the same period in 1995. For the three
months ended September 30, 1996, realized investment gains were $.1 million
compared to $2.9 million for the same period in 1995. Realized investment
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 also included a one-time unusual gain on the
sale of a parcel of undeveloped property. As a result, net realized gains for
the nine and three months ended September 30, 1996 are not comparable to the
1995 amounts.
Benefits and claims were $110.0 million for the nine months ended September 30,
1996, up 2.3% from the $107.5 million for the same period in 1995. For the
three months ended September 30, 1996, benefits and claims totalled $38.6
million compared to $39.3 million for the same period in 1995, or a decrease of
1.7%. The increase for the nine months ended September 30, 1996 versus 1995
was 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. For the
three months ended September 30, 1996, the decrease in benefits and claims was
due primarily to a decrease in credit benefits related to a reduction in the
change in unearned premium reserves.
Taxes, commissions, and general expenses aggregated $87.5 million for the first
nine months of 1996 versus $78.1 million for the first nine months of 1995, or
an increase of 12.1%. For the three months ended September 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 11.1%. These increases were
primarily due to an increase in commissions on long-term care and credit
business as a result of increased insurance revenues and an increase in
operating expenses as a result of increased premiums and premium equivalents.
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 nine months ended September 30, 1996, the amortization of
deferred acquisition costs was $19.1 million compared to $17.5 million for the
comparable period in 1995, or an increase of 9.5%. For the three months ended
September 30, 1996, the amortization of deferred acquisition costs was $6.2
million compared to $6.2 million for the comparable period in 1995. The
increase in amortization expense for the nine months ended September 30, 1996
was 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.
7
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED SEPTEMBER 30, 1996 COMPARED TO
PERIODS ENDED SEPTEMBER 30, 1995
RESULTS OF OPERATIONS (CONTINUED)
For the nine months ended September 30, 1996, other operating expenses totalled
$3.0 million compared to $2.7 million for the same period in 1995, or an
increase of 12.0%. For the three months ended September 30, 1996, other
operating expenses were $1.1 million compared to $1.0 million for the same
period in 1995, or an increase of 16.4%. 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 7.0% for the nine months ended September 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 nine months ended September 30, 1996
and 1995, the effective tax rate was 32.0% and 32.3%, respectively. This
decrease in the effective tax rate was primarily due to higher realized gains
for the nine months ended September 30, 1995, which were 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 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 September 30, 1996, the fair value of the Company's debt and equity security
portfolio aggregated $567.2 million compared with an amortized cost of $551.5
million, or an unrealized gain of $15.7 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 was primarily due to changes in market conditions.
8
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PERIODS ENDED SEPTEMBER 30, 1996 COMPARED TO
PERIODS ENDED SEPTEMBER 30, 1996
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
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, 1996 aggregated $24.0 million with a market value of $24.9
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 September 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.
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 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) 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 11/13/96 /s/ W. Michael Heekin
---------------------- -------------------------------------------------
W. Michael Heekin, Senior Vice President and
Corporate Secretary (Authorized Officer)
Date 11/13/96 /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-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<DEBT-HELD-FOR-SALE> 527,542,309
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 39,696,999
<MORTGAGE> 44,982,835
<REAL-ESTATE> 449,910
<TOTAL-INVEST> 1,013,644,536
<CASH> 21,691,317
<RECOVER-REINSURE> 13,473,194
<DEFERRED-ACQUISITION> 173,018,976
<TOTAL-ASSETS> 1,379,769,373
<POLICY-LOSSES> 200,416,921
<UNEARNED-PREMIUMS> 51,994,368
<POLICY-OTHER> 50,910,093
<POLICY-HOLDER-FUNDS> 671,871,005
<NOTES-PAYABLE> 102,184,000
0
0
<COMMON> 13,967,253
<OTHER-SE> 208,582,625
<TOTAL-LIABILITY-AND-EQUITY> 1,379,769,373
191,607,931
<INVESTMENT-INCOME> 57,498,766
<INVESTMENT-GAINS> 283,419
<OTHER-INCOME> 0
<BENEFITS> 109,971,884
<UNDERWRITING-AMORTIZATION> 19,118,875
<UNDERWRITING-OTHER> 87,525,832
<INCOME-PRETAX> 29,726,151
<INCOME-TAX> 9,517,400
<INCOME-CONTINUING> 20,208,751
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 20,208,751
<EPS-PRIMARY> 1.46
<EPS-DILUTED> 1.46
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
