SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-Q
QUARTERLY REPORT
Under Section 13 or 15 (d) of the Securities Exchange Act of 1934
FOR NINE MONTHS ENDED
September 30, 1999
Commission File: 0-1999
KENTUCKY INVESTORS, INC.
(Exact name of registrant as specified in Charter)
KENTUCKY
(State of Other Jurisdiction of Incorporation or Organization)
61-6030333
(IRS Employer Identification Number)
200 Capital Avenue, P. O. Box 717
Frankfort, Kentucky 40602
(Address of Principal Executive Offices)
Registrant's Telephone Number - (502) 223-2361
Securities registered pursuant to Section 13(g) of the Act:
Common Capital Stock par value $1.00 per share
(Title of Class)
Number of outstanding shares as of September 30, 1999 - 857,886
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 ____
PART I - CONSOLIDATED FINANCIAL STATEMENTS
ITEM 1. The following consolidated statements have been prepared by management
in accordance with generally accepted accounting principles ("GAAP"). In
management's opinion, all adjustments and certain reclassifications necessary
for a fair statement of financial position at September 30, 1999 and December
31, 1998 and the results of operations for the three and nine months ended
September 30, 1999 and 1998 have been made.
KENTUCKY INVESTORS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, 1999 December 31, 1998
Assets
Investments
Fixed maturities available-for-sale at
fair value (amortized cost:
1999-$195,713,018; 1998-
$181,886,791) $194,604,358 $193,911,467
Mortgage loans on real estate 14,674,647 16,189,127
Other investments 11,355,527 12,271,613
Total investments $220,634,532 $222,372,207
Cash and cash equivalents 5,468,281 2,514,371
Due and deferred premiums 4,496,596 4,129,967
Deferred acquisition costs 30,141,274 27,288,684
Other assets 8,543,272 8,707,915
Amounts recoverable from
reinsurers 27,816,953 23,355,631
$297,100,908 $288,368,775
Liabilities and Stockholders' Equity
Liabilities
Policy liabilities:
Benefit reserves $221,703,744 $207,115,725
Unearned premium reserves 23,657,239 20,069,565
Other policyholders' funds 3,795,494 3,924,918
Total policy liabilities $249,156,477 $231,110,208
Other liabilities 9,482,161 12,562,530
Total liabilities $258,638,638 $243,672,738
Minority Interest in Subsidiary $ 10,709,233 $ 12,471,302
Stockholders' Equity
Common stock (shares issued:
1999-857,886; 1998-848,116)$ 857,886 $ 848,116
Paid-in surplus 3,510,342 3,442,248
Accumulated other comprehensive
income 329,209 6,392,746
Retained earnings 23,055,600 21,541,625
Total stockholders'
equity $ 27,753,037 $ 32,224,735
$297,100,908 $288,368,775
See accompanying notes.
KENTUCKY INVESTORS, INC.
Condensed Consolidated Income Statements (Unaudited)
Three Months Ended September 30
1999 1998
REVENUES
Premiums and other considerations $12,871,624 $10,756,960
Investment income, net of expense 3,827,126 3,592,161
Realized gain (loss) on
investments, net (28,762) 29,715
Other income 256,716 207,126
Total revenues $16,926,704 $14,585,962
BENEFITS AND EXPENSES
Death and other policyholder
benefits $ 5,154,779 $ 5,153,277
Guaranteed annual endowments 179,017 184,372
Dividends to policyholders 172,057 171,958
Increase in benefit reserves and
unearned premiums 6,382,039 4,626,050
Amortization of deferred
acquisition costs, net (582,543) (169,563)
Commissions 1,721,433 1,298,563
Other insurance expenses 2,319,375 2,136,013
Total benefits and expenses $15,346,157 $13,400,670
Income from operations before Federal
income tax and minority interest
in net income of subsidiary $ 1,580,547 $ 1,185,292
Provision for income taxes:
Current $ 103,442 $ 87,236
Deferred 407,870 222,854
$ 511,312 $ 310,090
Income from operations before
minority interest in net income
of subsidiary $ 1,069,235 $ 875,202
Minority interest in net income
of subsidiary $ 274,983 $ 225,746
Net Income $ 794,252 $ 649,456
KENTUCKY INVESTORS, INC.
Condensed Consolidated Income Statements (Unaudited) (continued)
Earnings per share $ 0.93 $ 0.77
Dividends per share $ 0.00 $ 0.00
See accompanying notes.
KENTUCKY INVESTORS, INC.
Condensed Consolidated Income Statements (Unaudited)
Nine Months Ended September 30
1999 1998
REVENUES
Premiums and other considerations $35,546,511 $32,597,262
Investment income, net of expense 11,273,046 10,442,754
Realized gain (loss) on
investments, net (177,834) 108,631
Other income 729,026 575,679
Total revenues $47,370,749 $43,724,326
BENEFITS AND EXPENSES
Death and other policyholder
benefits $16,918,730 $15,693,913
Guaranteed annual endowments 605,093 622,317
Dividends to policyholders 549,490 462,304
Increase in benefit reserves and
unearned premiums 15,628,611 13,969,012
Amortization of deferred
acquisition costs, net (1,455,174) (139,453)
Commissions 4,759,313 3,860,840
Other insurance expenses 6,756,186 6,332,586
Total benefits and expenses $43,762,249 $40,801,519
Income from operations before Federal
income tax and minority interest
in net income of subsidiary $ 3,608,500 $ 2,922,807
Provision for income taxes:
Current $ 226,669 $ 268,081
Deferred 950,034 491,734
$ 1,176,703 $ 759,815
Income from operations before
minority interest in net income
of subsidiary $ 2,431,797 $ 2,162,992
Minority interest in net income
of subsidiary $ 642,566 $ 584,346
Net Income $ 1,789,231 $ 1,578,646
KENTUCKY INVESTORS, INC.
Condensed Consolidated Income Statements (Unaudited) (continued)
Earnings per share $ 2.10 $ 1.88
Dividends per share $ 0.38 $ 0.38
See accompanying notes.
KENTUCKY INVESTORS, INC.
Condensed Consolidated Statements of Cash Flow (Unaudited)
Nine Months Ended September 30
1999 1998
Net cash provided by operating
activities $ 17,282,672 $ 16,661,893
Investing activities
Securities available-for-sale:
Purchases $(32,691,109) $(19,257,843)
Sales and maturities 18,865,946 6,659,475
Other investments:
Cost of acquisition (1,772,104) (4,281,212)
Sales and maturities 3,457,133 1,860,136
Other investing activities (162,302) (88,731)
Net cash used by investing activities $(12,302,436) $(15,108,175)
Financing Activities
Receipts from universal life policies
credited to policyholder
account balances $ 3,266,933 $ 3,485,437
Return of policyholder account
balances on universal
life policies (5,095,867) (4,500,134)
Other financing activities (197,392) (224,431)
Net cash used by financing activities $ (2,026,326) $ (1,239,128)
Increase in cash and cash equivalents $ 2,953,910 $ 314,590
Cash and cash equivalents at beginning
of period 2,514,371 2,939,453
Cash and cash equivalents at end of period $ 5,468,281 $ 3,254,043
See accompanying notes.
KENTUCKY INVESTORS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1999
(Unaudited)
NOTE A - Nature of Operations: Kentucky Investors, Inc. (Kentucky Investors) is
a holding company with a majority interest in Investors Heritage Life Insurance
Company (Investors Heritage), and a total interest in Investors Heritage
Printing, Inc., a printing company and Investors Heritage Financial Services
Group, Inc., an insurance marketing company. The operations of Kentucky
Investors are principally that of its life insurance company, Investors
Heritage. The operations of the non-insurance subsidiaries of Kentucky
Investors accounts for less than 1% of the Company's total operations.
Investors Heritage's operations involve the sale and administration of various
insurance and annuity products, including, but not limited to, participating,
non-participating, whole life, limited pay, universal life, annuity contracts,
credit life, credit accident and health and group insurance policies. The
principal markets for Investors Heritage products are in the Commonwealths of
Kentucky and Virginia, and the states of North Carolina, South Carolina, Ohio,
Indiana, Florida, Tennessee, Illinois, Georgia, West Virginia and Texas.
NOTE B - Basis of Presentation: The accompanying unaudited condensed
consolidated financial statements of Kentucky Investors and subsidiaries have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the nine months ended September 30, 1999,
are not necessarily indicative of the results that may be expected for the year
ending December 31, 1999. For further information, refer to the consolidated
financial statements and footnotes thereto for the year ended December 31, 1998,
included in the Company's Annual Report on Form 10-K.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
NOTE C - Earnings per Share: Earnings per share of common stock were computed
based on the weighted average number of common shares outstanding during each
period. The number of shares used in this computation for Kentucky Investors is
851,380 and 841,816 for September 30, 1999 and 1998, respectively.
NOTE D - Segment Data: Investors Heritage operates in four segments as shown in
the following table. All segments include both individual and group insurance.
Identifiable revenues and expenses are assigned directly to the applicable
segment. Net investment income is generally allocated to the insurance and the
corporate segments in proportion to policy liabilities and stockholders' equity,
respectively. Corporate segment results for the parent company, Investors
Heritage Printing, Inc., and Investors Heritage Financial Services Group, after
elimination of intercompany amounts, are presented.
Three Months Ended
September 30, 1999 September 30, 1998
Revenues:
Preneed & Burial Products $12,861,272 $10,389,560
Traditional & Universal
Life Products 3,468,318 3,622,046
Credit Insurance Products &
Administrative Services 93,980 69,926
Corporate & Other 503,134 504,430
$16,926,704 $14,585,962
Pre-Tax Income from Operations:
Preneed & Burial Products $ 1,138,655 $ 656,147
Traditional & Universal Life
Products 197,377 434,043
Credit Insurance Products &
Administrative Services 1,919 (73,322)
Corporate & Other 242,596 168,424
$ 1,580,547 $ 1,185,292
Nine Months Ended
September 30, 1999 September 30, 1998
Revenues:
Preneed & Burial Products $35,508,706 $31,394,739
Traditional & Universal Life
Products 10,301,754 10,652,259
Credit Insurance Products &
Administrative Services 229,848 199,708
Corporate & Other 1,330,441 477,620
$47,370,749 $43,724,326
Pre-Tax Income from Operations:
Preneed & Burial Products $ 2,796,032 $ 1,862,217
Traditional & Universal Life
Products 595,233 800,533
Credit Insurance Products &
Administrative Services (42,235) 134,806)
Corporate & Other 259,470 394,863
$ 3,608,500 $ 2,922,807
NOTE E - Federal Income Taxes: Current taxes are provided based on estimates of
the projected effective annual tax rate. Deferred taxes reflect the net tax
effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax
purposes.
NOTE F - Comprehensive Income: The components of comprehensive income (loss),
net of related tax, are as follows:
Three Months Ended
September 30 September 30
1999 1998
Net income $ 794,252 $ 649,456
Net unrealized gains (losses) on
available-for-sale securities (1,371,239) 2,683,745
Comprehensive income (loss) $ ( 576,987) $ 3,333,201
Nine Months Ended
September 30 September 30
1999 1998
Net income $ 1,789,231 $ 1,578,646
Net unrealized gains (losses) on
available-for-sale securities (6,063,537) 3,579,743
Comprehensive income (loss) $(4,274,306) $ 5,158,389
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
General
Kentucky Investors, Inc. (the "Company") is incorporated under the laws of the
Commonwealth of Kentucky and is the holder of the majority interest in Investors
Heritage Life Insurance Company ("Investors Heritage") which is a life insurance
company also incorporated under the laws of the Commonwealth of Kentucky. In
addition, the Company wholly owns Investors Heritage Financial Services Group,
Inc. ("FSG"), an insurance marketing company that was formed in 1994, and
Investors Heritage Printing, Inc. ("IHP"), a printing company that provides
printing to the Insurance Company and other unaffiliated parties.
Investors Heritage offers a full line of life insurance products including, but
not limited to, whole life, term life, single premium life, multi-pay life and
annuities. Investors Heritage's primary lines of business are insurance policies
and annuities utilized to fund preneed funeral contracts, credit life and credit
disability insurance, and term life and reducing term life sold through
financial institutions. During 1998 Investors Heritage introduced the Legacy
2000 Series of products to the preneed funeral market. The Company's operating
earnings are derived primarily from revenues generated from the sale of these
products by Investors Heritage, plus the Company's investment results, including
realized gains (losses), less interest credited, benefits to policyholders and
expenses.
While the Company continues to expand the operations of FSG and IHP, less than
1% of the Company's total operations were generated by those subsidiaries. As
expected, more than 10% of FSG's revenues during the third quarter of 1999 were
derived from the sale of the Investors Heritage's credit insurance products.
The Company received a dividend of $77,500 during the third quarter from FSG and
anticipates a dividend to be paid by FSG during the fourth quarter in 1999. The
Company received $51,500 in dividends during the third quarter from IHP. The
Company has received a total of $246,000 in dividends from FSG and IHP during
the first nine months of 1999 compared to $100,000 for the same period in 1998.
The Company's primary uses of cash are operating expenses and dividend payments,
and the Company's principal source of cash is the dividend paid to it by
Investors Heritage. Therefore, the remainder of the discussion will deal with
the financial condition and results of operations of Investors Heritage.
Investments, Liquidity and Capital Resources
Premiums, which include mortality and expense charges, and investment income are
Investors Heritage's primary sources of cash flow used to meet short-term and
long-term cash requirements.
Investors Heritage's short-term obligations consist primarily of policyholder
benefits and operating expenses. Investors Heritage has historically been able
to meet these obligations out of operating cash, premiums and investment income.
Management is not aware of any commitments or unusual events that could
materially affect capital resources. Neither the Company nor Investors Heritage
has any long-term or short-term external debt. However, the Company and
Investors Heritage will continue to explore various opportunities including
corporate reorganizations, acquisitions and purchasing blocks of business from
other companies, which may dictate a need for either long-term or short-term
debt.
Investors Heritage has maintained a sound, conservative investment strategy. At
September 30, 1999, 87.4% of invested assets consisted of fixed income public
bonds compared to 86.4% at December 31, 1998. Fixed income assets are managed by
Charter Oak Capital Management, Inc., an independent portfolio manager. The
accumulated other comprehensive loss increased by $1,852,00 for the third
quarter of 1999 and $8,149,000 for the first nine months of 1999 principally
related to the decreasing fair value of Investors Heritage's investment
portfolio as interest rates rose.
Additionally, Investors Heritage also engages in commercial and residential
mortgage lending with approximately 92% of these investments being in commercial
properties. All mortgage loans are originated in-house and all loans are secured
by first mortgages on the real estate. At September 30, 1999, 6.6% of invested
assets consisted of mortgage loans compared to 7.2% at December 31, 1998.
$2,677,000 of the decrease is due to the early pay-off of several mortgage loans
as a result of the sale or refinancing of the property. New mortgage loans made
the first nine months of 1999 totaled $1,684,000. Management anticipates
funding several new mortgage loan investments during the remainder of 1999 to
maintain a similar or slightly higher percentage of mortgage loans to total
invested assets.
Investors Heritage's conservative approach in the product development area and
the strength and stability of its fixed income and mortgage loan portfolios
provide adequate liquidity both in the short-term and the long-term. At
September 30, 1999 Investors Heritage's fixed income investments were 100%
investment grade as rated by Standard & Poor's, unchanged from December 31,
1998. None of Investors Heritage's fixed income assets are in default and there
has been no material change in the distribution of its fixed income portfolio.
Investors Heritage's principal long-term obligations are fixed contractual
obligations incurred in the sale of its life insurance products. The premium
charged for these products are based on conservative and actuarially sound
assumptions as to mortality, persistency and interest. Investors Heritage
believes these assumptions will produce revenues sufficient to meet its future
contractual benefit obligations and operating expenses, and provide an adequate
profit margin.
Results of Operations
Total premium income (net of reinsurance) increased 19.7% when compared to the
third quarter of 1998 and increased 9.0% for the first nine months of 1999 when
compared to the same period in 1998. (For further explanation, see "Business
Segments" below). Net investment income for the third quarter 1999 compared to
the third quarter of 1998 increased 6.7% and increased 7.9% for the first nine
months of 1999 over the first nine months of 1998. This is due primarily to the
increase in the asset base of Investors Heritage. Overall Revenue for the third
quarter of 1999 increased 16.4% when compared to the third quarter of 1998 and
for the first nine months of 1999 increased 8.3% when compared to the same
period in 1998.
Total Benefits and Expenses were 15.0% higher in the third quarter of 1999 when
compared to the same quarter of 1998 and 7.4% higher for the first nine months
of 1999 when compared to the same period in 1998. The primary reasons for this
increase are (1) increased sales of Preneed and Burial Products combined with a
change in the commission structure which generates higher first year
commissions, and (2) higher than projected claims for the first four months of
1999. These claims have been analyzed revealing no particular anti-selection.
Claims improved from previous levels during May through September, 1999.
Business Segments
Management internally evaluates the performance of Investors Heritage operations
by the following business segments:
Preneed & Burial Products includes both life and annuity products sold by
funeral directors or affiliated agents to fund prearranged funerals. Revenues
for this segment were 23.8% when compared to the third quarter of 1998 and were
13.1% higher for the first nine months of 1999 when compared to the same period
of 1998. The increase is due to the continued increase in sales of the
Company's Legacy 2000 Series of Preneed and Burial Products used in the pre-
arranged funeral and final expense markets and the Net Investment Income
associated with those products. Pre-Tax Income from Operations was 73.5%
higher than the third quarter of 1998 and during the first nine months 1999 was
50.1% higher than the comparable period for 1998 due primarily to higher than
anticipated sales of non-single premium Legacy 2000 Series products combined
with the new commission structure on those products. The Company plans to
continue its expansion of territory and recruitment of agents in the Preneed and
Burial insurance market.
Traditional & Universal Life Products includes traditional life and group life
insurance products, annuities (primarily qualified) and universal life products.
Revenues for this segment were 4.2% lower than the third quarter of 1998 and
were 3.3% lower for the first nine months of 1999 when compared to the first
nine months of 1998. Pre-Tax Income from Operations was 54.5% lower than the
third quarter of 1998 and for the first nine months of 1999 was 25.6% lower than
the comparable period for 1998. The decreases are primarily due to lower
premiums in the group life insurance line as a result of a reinsurance agreement
entered into during the third quarter of 1999 whereby a substantial block of
group insurance was ceded to a non-affiliated life insurer. Additionally,
higher claims in the ordinary life lines in the third quarter of 1999 when
compared to the same quarter in 1998 resulted in a decrease in Pre-Tax Income.
Credit Insurance Products & Administrative Services include the marketing and
administration of credit life and credit accident & health insurance products.
Revenues were 34.4% higher and Pre-tax Income improved 102.6% when compared to
the third quarter of 1998. Revenues were 15.1% higher and Pre-tax income has
improved 68.7% for the first nine months of 1999 when compared to the first nine
months of 1998. The increases are primarily due to the reduction in the run-off
of a closed block of credit business combined with increased service fees on new
credit business. All of the related underwriting risk currently produced is
being reinsured 100% with highly-rated life insurance companies.
Corporate & Other consists of corporate accounts measured primarily by
stockholders' paid-in capital, contributed surplus, earned surplus, property and
equipment, investments in affiliates and other minor business lines which
include group annuities and group and individual accident and health products.
Revenues were 8.4% higher and Pre-tax Income was 48.8% higher for the first
quarter when compared to the same period in 1998. Revenues were 12.6% lower for
the first nine months of 1999 when compared to the same period of 1998. Pre-Tax
Income was 64.3% lower for the first nine months of 1999 when compared to the
first nine months of 1998. The decreases in Revenues and Pre-Tax Income are
primarily due to realized capital losses during the second quarter of 1999 and
the continued run-off of a closed block of group accident and health insurance
and claims associated with that block.
Federal Income Taxes
Current taxes are provided based on estimates of the projected effective annual
tax rate. Deferred taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The effective tax rate
was 28% at September 30, 1999 compared to 21% for September 30, 1998. The
increase in the effective tax rate is due primarily to the reduced benefit of
the small life insurance company deduction resulting from an increase in net
income.
Year 2000 Compliance
The Year 2000 issue is the result of computer programs being written using 2-
digits rather than 4-digits to define the applicable year. Any computer program
that has time sensitive software may recognize a date using "00" as the year
1900 rather than the year 2000. This could result in a system failure or
miscalculation causing disruption of operations, including, among other things,
a temporary inability to process transactions, send invoices, or engage in
similar normal business activities.
Investors Heritage and the Company recognized the Year 2000 Issue in 1988 and
began working on a solution at that time. The Company relies on Investors
Heritage's systems and Investors Heritage's expertise to provide Year 2000
compliance. The Investors Heritage Information Systems Department has worked
diligently to make modifications to existing software so that the Year 2000
Issue will not pose significant operational problems for its computer systems.
As of year end 1995, Investors Heritage's systems were in full compliance with
all Year 2000 Issue requirements and it is anticipated that there will be no
exposure to contingencies related to the Year 2000 Issue for the products it has
sold. The cost to implement system changes related to the Year 2000 issue has
been nominal.
Although Investors Heritage does not anticipate any major interruption of
business activities, that will be dependent, in part, upon the activities of
third parties. Management has initiated formal communications with all of its
significant reinsurers, vendors, and financial institutions and has been advised
that all are in full compliance or anticipated being in full compliance. Even
though Investors Heritage has assessed and continues to assess third party
issues, it has no direct ability to influence the compliance actions of such
parties. Accordingly, there can be no guarantee that the systems of other
companies on which Investors Heritage relies will be Year 2000 compliant,
leading to an adverse effect on future operating results of Investors Heritage
and the Company.
Forward Looking Information
The Company cautions readers regarding certain forward-looking statements
contained in this report and in any other statements made by, or on behalf of,
the Company, whether or not in future filings with the Securities and Exchange
Commission (the "SEC"). Forward-looking statements are statements not based on
historical information and which relate to future operations, strategies,
financial results, or other developments. Statements using verbs such as
"expect," "anticipate," "believe" or words of similar import generally involve
forward-looking statements. Without limiting the foregoing, forward-looking
statements include statements which represent the Company's beliefs concerning
future levels of sales and redemptions of Investors Heritage's products,
investment spreads and yields, or the earnings and profitability of the
Company's or Investors Heritage's activities.
Forward-looking statements are necessarily based on estimates and assumptions
that are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond the Company's control
and many of which are subject to change. These uncertainties and contingencies
could cause actual results to differ materially from those expressed in any
forward-looking statements made by, or on behalf of, the Company. Whether or
not actual results differ materially from forward-looking statements may depend
on numerous foreseeable and unforeseeable factors and developments. Some of
these may be national in scope, such as general economic conditions, changes in
tax law and changes in interest rates. Some may be related to the insurance
industry generally, such as pricing competition, regulatory developments,
industry consolidation and the effects of competition in the insurance business
from other insurance companies and other financial institutions operating in the
Company's market area and elsewhere. Others may relate to the Company
specifically, such as credit, volatility and other risks associated with the
Company's investment portfolio. The Company cautions that such factors are not
exclusive. The Company disclaims any obligation to update forward-looking
information.
PART II _ OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not involved in any legal proceedings. From time to time
Investors Heritage is involved in litigation relating claims arising out of its
operations in the normal course of business. As of November 12, 1999,
Investors Heritage is not a party to any legal proceedings, the adverse outcome
of which, in management's opinion, individually or in the aggregate, would have
a material adverse effect on Investors Heritage's or the Company's financial
condition or results of operations.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
ITEM 5. Other Information.
None.
ITEM 6. Exhibits and Reports on Form 8-K.
(a) There were no reports filed on Form 8-K during the quarter ended
September 30, 1999.
(b) Exhibit 27 - Financial Data Schedule.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KENTUCKY INVESTORS, INC.
/s/
BY: HARRY LEE WATERFIELD II
PRESIDENT
DATE: November 12, 1999
/s/
BY: JIMMY R. MCIVER
TREASURER
DATE: November 12, 1999
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</TABLE>
