<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
(Mark One)
[xx] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
-------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------- ---------------
Commission File Number 1-5846
------
THE LIBERTY CORPORATION
-----------------------
(Exact name of registrant as specified in its charter)
South Carolina 57-0507055
(State or other jurisdiction of (IRS Employer
incorporation or organization) identification No.)
Post Office Box 789, Wade Hampton Boulevard, Greenville, SC 29602
------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: 864/609-8436
------------
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
----- -----
Indicate the number of shares outstanding of each of the Registrant's classes
of common stock as of the latest practicable date.
Number of shares Outstanding
Title of each class as of June 30, 1996
------------------- ----------------------------
Common Stock 20,175,451
Page 1 of 11 sequentially numbered pages.
The Exhibit Index is on Page 9.
<PAGE> 2
PART I, ITEM 1
THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
(In 000's)
JUNE 30, 1996 December 31, 1995
------------- -----------------
ASSETS (Unaudited)
<S> <C> <C>
Investments:
Fixed Maturity Securities available for sale, at market, cost of
$1,427,163 at 6/30/96 and $1,383,324 at 12/31/95 $1,453,341 $1,467,039
Equity Securities, at market, cost of $71,122 at 6/30/96 and
$68,637 at 12/31/95 81,315 82,508
Mortgage Loans 223,611 213,223
Investment Real Estate 141,671 135,306
Loans to Policyholders 98,020 98,369
Other Long-Term Investments 23,421 27,535
Short-Term Investments 250 ---
---------- ----------
Total Investments 2,021,629 2,023,980
Cash 30,474 43,741
Accrued Investment Income 20,763 20,018
Receivables 42,133 46,098
Receivable from Reinsurers 256,657 275,090
Deferred Acquisition Costs and Cost of Business Acquired 360,970 352,113
Buildings and Equipment 82,663 79,789
Intangibles Related to Television Operations 95,929 99,056
Goodwill Related to Insurance Acquisitions 36,426 37,239
Other Assets 56,812 57,172
---------- ----------
Total Assets $3,004,456 $3,034,296
========== ==========
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY
Liabilities
Policy Liabilities $1,863,134 $1,862,859
Notes, Mortgages and Other Debt 172,126 158,444
Long Term Debt 100,000 100,000
Accrued Income Taxes 6,738 6,665
Deferred Income Taxes 162,426 182,083
Accounts Payable and Accrued Expenses 66,548 67,094
Other Liabilities 24,911 35,722
---------- ----------
Total Liabilities 2,395,883 2,412,867
---------- ----------
Redeemable Preferred Stock
1994-A Series, $35.00 redemption value, shares issued and outstanding -
668,207 in 1996 and 1995 23,387 23,387
1994-B Series, $37.50 redemption value, shares issued and outstanding -
593,826 in 1996 and 594,126 in 1995 22,269 22,280
---------- ----------
Total Redeemable Preferred Stock 45,656 45,667
---------- ----------
Shareholders' Equity
Common Stock 162,284 158,735
Series 1995-A Convertible Preferred Stock, $35.00 redemption value,
599,985 shares issued and outstanding 20,999 20,999
Unearned Stock Compensation (7,970) (6,050)
Unrealized Investment Gains (Losses) 22,183 57,986
Cumulative Foreign Currency Translation Adjustment (981) (999)
Retained Earnings 366,402 345,091
---------- ----------
Total Shareholders' Equity 562,917 575,762
---------- ----------
Total Liabilities, Redeemable Preferred Stock and
Shareholders' Equity $3,004,456 $3,034,296
========== ==========
</TABLE>
See Notes to Consolidated and Condensed Financial Statements.
2
<PAGE> 3
THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months ended Six Months ended
June 30, June 30,
----------------------- -----------------------
(In 000's, except per share data) 1996 1995 1996 1995
-------- -------- -------- --------
(Unaudited)
<S> <C> <C> <C> <C>
REVENUES
Insurance Premiums & Policy Charges $ 78,480 $ 85,648 $156,006 $168,754
Broadcasting Revenues 34,786 32,134 63,666 56,887
Net Investment Income 38,201 35,932 75,465 71,172
Service Contract Revenue --- 2,232 --- 4,492
Realized Investment Gains (Losses) (1,006) (820) 189 (2,694)
Other Income 195 --- 240 ---
-------- -------- -------- --------
Total Revenues 150,656 155,126 295,566 298,611
-------- -------- -------- --------
EXPENSES
Policyholder Benefits 52,990 61,420 110,518 123,552
Insurance Commissions 15,976 13,736 31,230 26,924
General Insurance Expenses 15,080 17,586 28,357 34,005
Amortization of Deferred Acquisition Costs 10,356 9,959 21,448 20,585
Broadcasting Expenses 23,479 22,119 45,231 40,156
Interest Expense 3,802 3,705 7,459 7,203
Other Expenses 4,508 3,755 6,198 7,260
-------- -------- -------- --------
Total Expenses 126,191 132,280 250,441 259,685
-------- -------- -------- --------
Income Before Income Taxes 24,465 22,846 45,125 38,926
Provision for Income Taxes 8,165 7,441 14,770 12,983
-------- -------- -------- --------
NET INCOME $ 16,300 $ 15,405 $ 30,355 $ 25,943
======== ======== ======== ========
EARNINGS PER SHARE: (Exhibit 11) $ .75 $ .72 $ 1.39 $ 1.21
Dividends Per Common Share $ .185 $ .17 $ .355 $ .325
</TABLE>
See Notes to Consolidated and Condensed Financial Statements.
3
<PAGE> 4
THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------------
(In 000's) 1996 1995
-------------------------------
(Unaudited)
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 30,355 $ 25,943
Adjustments to reconcile net income to net cash provided (used) in
operating activities:
Increase in policy liabilities 44 22,696
Decrease in accounts payable and accrued liabilities 2,525 (2,583)
Decrease in receivables 81 (73)
Amortization of policy acquisition costs 21,448 20,646
Policy acquisition costs deferred (25,123) (28,473)
Realized investment (gains) losses (189) 2,694
Gain on sale of operating assets (1,257) (1,522)
Depreciation and amortization 10,913 9,215
Amortization of bond premium and discount (1,262) (3,273)
Provision for deferred income taxes (168) 1,546
All other operating activities, net (14,850) (3,070)
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 22,517 43,746
INVESTMENT ACTIVITIES
Investment securities sold - available for sale 86,260 85,968
Investment securities matured or redeemed by issuer:
Available for sale 41,479 14,749
Held to maturity --- 13,159
Cost of investment securities acquired - available for sale (164,560) (169,590)
Mortgage loans made (24,069) (4,599)
Mortgage loan repayments 13,574 12,745
Purchase of investment real estate, buildings and equipment (27,265) (26,841)
Sale of investment real estate, buildings and equipment 14,722 11,597
Purchase of short-term investments (52,559) (29,445)
Sales of short-term investments 52,309 34,342
Net cash paid on purchase of television station --- (5,140)
All other investment activities, net 2,942 (1,140)
----------- -----------
NET CASH USED IN INVESTING ACTIVITIES (57,167) (64,195)
FINANCING ACTIVITIES
Proceeds from borrowings 1,384,500 1,349,000
Principal payments on debt (1,372,495) (1,343,753)
Dividends paid (9,045) (8,145)
Stock issued for employee benefit and compensation programs 344 1,286
Return of policyholders' account balances (18,650) (18,343)
Receipts credited to policyholders' account balances 36,729 39,269
----------- -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 21,383 19,314
INCREASE (DECREASE) IN CASH (13,267) (1,135)
Cash at beginning of year 43,741 51,400
----------- -----------
CASH AT END OF PERIOD $ 30,474 $ 50,265
=========== ===========
</TABLE>
See Notes to Consolidated and Condensed Financial Statements.
4
<PAGE> 5
THE LIBERTY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS
June 30, 1996
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated and condensed financial
statements of The Liberty Corporation 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. The
information included is not necessarily indicative of the annual
results that may be expected for the year ended December 31, 1996, but
it does reflect all adjustments (which are of a normal and recurring
nature) considered, in the opinion of management, necessary for a fair
presentation of the results for the interim periods presented. For
further information, refer to the consolidated financial statements and
footnotes thereto included in The Liberty Corporation annual report on
Form 10-K for the year ended December 31, 1995.
2. COMMITMENTS AND CONTINGENCIES
At June 30, 1996, the Company had made commitments as shown below:
<TABLE>
<CAPTION>
(In 000's)
<S> <C>
Investment real estate 1,688
Mortgage loans and bonds 16,640
Other 10,396
-------
$28,724
=======
</TABLE>
5
<PAGE> 6
PART I, ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(Unaudited)
OPERATIONS
Consolidated second quarter net income of $16.3 million increased 6% over
1995's second quarter (see table below). Operating earnings (which exclude net
realized investment gains and losses) increased $.9 million (5%) over 1995's
second quarter. Net income reflects realized investment losses (after-tax) of
$.6 million and $.7 million in the second quarter of 1996 and 1995,
respectively.
Year-to-date net income of $30.4 million increased 17% over the comparable 1995
period. Operating earnings increased $2.2 million (8%) over the same period of
1995. Net income includes realized investment gains (after tax) of $.3 million
for the first six months of 1996 compared to realized investment losses of $1.9
million for the 1995 period.
<TABLE>
<CAPTION>
Second Quarter Year-to-date
--------------- ------------
1996 1995 1996 1995
--------------------------------------------
<S> <C> <C> <C> <C>
Income Before Income Taxes $24,465 $22,846 $45,125 $38,926
Income Taxes 8,165 7,441 14,770 12,983
Net Income --------------------------------------------
$16,300 $15,405 $30,355 $25,943
============================================
</TABLE>
Excluding realized gains and losses, over the comparable prior year quarter the
Company's insurance operations generated an increase in pre-tax income of $.6
million, broadcasting had an increase of $1.2 million, and the Parent Company
was flat with the prior year.
The $.6 million pre-tax earnings increase for insurance operations was
primarily driven by Liberty Life, which saw an improvement of $.7 million
versus the comparable prior year period. Compared to the second quarter of
1995, Liberty Life experienced an improvement in net investment income and
reduced benefits expense. These improvements were offset by higher
amortization of deferred acquisition costs in 1996, compared to the second
quarter of 1995, in which Liberty Life experienced record-low lapses. The
FamilySide pre-need business reported a $.2 million reduction in pretax
earnings from the prior year, FamilySide is continuing to be impacted by lower
sales since the rollout of the new product portfolio in late 1995. The second
quarter of 1996 was the first quarter where all sales were from the new product
portfolio. Sales are expected to improve during the second half of the year as
the sales force becomes more comfortable with the product portfolio.
The broadcasting operations showed improvement over last year's very strong
second quarter, reporting pretax earnings of $9.0 million versus $7.8 million
in 1995. Cosmos experienced improvement in all revenue lines compared to the
second quarter 1995, with local revenues providing the strongest boost,
generating an increase of 8% over the prior year.
The parent company remained flat with the prior year, as a higher debt balance
resulting in additional interest expense was offset by other operating expense
savings.
Consolidated revenues decreased $4.5 million (3%) from the prior year second
quarter due to a $3.3 million (3%) decrease in revenues from the insurance
operations, primarily due to lower premiums from FamilySide, a decrease in
revenues from the parent company of $3.9 million due to a $4.8 million
negative fluctuation in realized investment losses and the elimination of
investment income recognized by the insurance operations on an intercompany
transaction, and an increase in broadcasting revenues of $2.7 million.
Excluding the impact of realized investment gains and losses, consolidated
revenues decreased $4.3 million (3%).
Insurance premiums and policy charges decreased $7.2 million (8%) from the
prior year due to the continuing effects on the FamilySide preneed business
associated with the rollout of an entirely new product line in late 1995. It
is anticipated that sales of
6
<PAGE> 7
The Liberty Corporation and Subsidiaries
Management's Discussion and Analysis of Operations June 30, 1996
the new products will significantly improve during the second half of 1996.
The $8.4 million decrease in FamilySide premium revenues were somewhat offset
by a $1.2 million increase in Liberty Life's premiums. The negative
year-to-date comparison for premiums is also due to the lower sales in
FamilySide.
The increase in broadcasting revenues for the quarter was driven by a local
revenue increase of $1.3 million, and $.5 million increases in both national
and political revenues. The year-to-date increase was partially due to WLOX
contributing six months of revenues in 1996, compared to only four months in
1995.
The decrease in service contract revenues and general insurance expenses is due
to the fact that the operations of Liberty Insurance Services have been
combined with the Company's 40% equity interest in the earnings of
Alliance-One, and the total is being reported on an equity basis in Other
Income.
The $2.2 million (16%) increase in commissions is primarily related to the
growth of the Company's accidental death product group. A substantial amount
of this line of business is marketed through a third party marketer. All
payments to this third party, which include commissions and certain payments
for certain general and administrative functions, are reported as commissions
expense. The year-to-date variance is also due to the reporting of the
payments to this third party marketer.
Year-to-date broadcasting expenses were up 13% due to the additional expenses
associated with the WLOX-TV operation for two additional months during 1996
compared to 1995.
Other expenses decreased for the six months compared to the prior year due to a
one-time non-recurring adjustment of $2.4 million related to reducing
previously accrued expenses due to a technical change in how vacation benefits
are earned.
INVESTMENTS
As of June 30, 1996, approximately 60% of the Company's $2.0 billion
consolidated invested assets were in bonds with an overall average credit
rating of AA-. Approximately 3.2% of the bond portfolio was rated below
investment grade.
Approximately 56% of the Company's $1.4 billion bond portfolio at June 30,
1996, was comprised of mortgage-backed securities, the same percentage as held
at December 31, 1995. Certain mortgage-backed securities are subject to
significant prepayment or extension risk due to changes in interest rates. In
periods of declining interest rates, mortgages may be repaid more rapidly than
scheduled as borrowers refinance higher rate mortgages to take advantage of the
lower current rates. As a result, holders of mortgage-backed securities may
receive large prepayments on their investments which cannot be reinvested at
interest rates comparable to the rates on the prepaid mortgages. In a rising
interest rate environment refinancings are significantly curtailed and the
payments to the holders of the securities decline, limiting the ability of the
holder to reinvest at the higher interest rates. Mortgage-backed pass-through
securities and sequential collateralized mortgage obligations ("CMO's"), which
comprised 15% of the book value of the Company's mortgage-backed securities at
June 30, 1996, and 20% at December 31, 1995, are sensitive to prepayment or
extension risk. The remaining 85% of the Company's mortgage-backed investment
portfolio at June 30, 1996, consisted of planned amortization class ("PAC")
instruments compared to approximately 80% at December 31, 1995. These
investments are designed to amortize in a more predictable manner by shifting
the primary prepayment and extension risk of the underlying collateral to
investors in other tranches of the CMO.
Mortgage loans of $223.6 million comprised 11% of the consolidated investment
portfolio at June 30, 1996. Substantially all of these mortgage loans are
commercial mortgages with a loan to value ratio not exceeding 75% when made.
These loans are concentrated in the southeast primarily in the states of North
Carolina, South Carolina, Georgia, Florida, Virginia, Louisiana and Tennessee.
7
<PAGE> 8
The Liberty Corporation and Subsidiaries
Management's Discussion and Analysis of Operations June 30, 1996
Investment real estate at June 30, 1996, of $141.7 million comprised 7% of the
consolidated investment portfolio, the same percentage as at December 31, 1995.
Three key property types make up the bulk of the Company's real estate
investment assets: residential land development, business parks, and business
property rentals. The majority of the Company's investment real estate is
located in South Carolina, Florida, Georgia, and North Carolina.
FINANCIAL POSITION
In accordance with the provisions of SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities", the Company reported an unrealized
gain of $22.2 million on fixed maturity securities available for sale and
equity securities as of June 30, 1996. This compares with an unrealized gain
of $58.0 million at December 31, 1995. The decrease is due to the negative
impact on the market value of the portfolio associated with rising interest
rates during the first half of the year.
CAPITAL, FINANCING AND LIQUIDITY
The Company's net cash flow from operating activities was $22.5 million for the
first six months of 1996 compared to $43.7 million for the same period of 1995.
The Company's net cash used in investing activities was $57.2 million, and cash
flow provided from financing activities was $21.3 million. As a result of its
activities, the Company had a $13.3 million decrease in cash compared to a
decrease of $1.1 million in the same period in 1995.
At June 30, 1996, the Company's borrowings and notes payable amounted to $272.1
million, an increase from the $258.4 million outstanding at December 31, 1995.
The increase was primarily a function of borrowings used to meet working
capital requirements in the parent company during the first six months of the
year.
The Company uses various interest rate swaps and caps to help minimize the
impact of a potential significant rise in short term interest rates. (See the
Company's 1995 Annual Report to Shareholders for a description of the interest
rate swaps and caps in place.) The Company has not used interest rate swaps or
any other derivative financial instruments to manage its interest rate exposure
on interest sensitive universal-life type products.
Other Company commitments are shown in Note 2 contained in the accompanying
financial statements. Additional detail as to commitments and financing is
contained in the Notes to the Consolidated Financial Statements in the
Company's annual report on Form 10K for the year ended December 31, 1995.
Further discussion of investments and valuation is contained in Notes 1 and 2
to the Consolidated Financial Statements in the Company's annual report on Form
10K for the year ended December 31, 1995.
ACCOUNTING DEVELOPMENTS
The Company adopted Statement of Financial Accounting Standard No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets
to be Disposed Of" ("SFAS No. 121"), on January 1, 1996. The results of
adoption did not have a material effect on the net income or financial position
of the Company. For additional information, see Note 2 to the Consolidated and
Condensed Financial Statements in the Company's first quarter report on Form
10-Q.
The Company adopted Statement of Financial Accounting Standard No. 123,
"Accounting for Stock-Based Compensation" ("SFAS No. 123"), on January 1, 1996.
For additional information, see Note 3 to the Consolidated and Condensed
Financial Statements in the Company's first quarter report on Form 10-Q.
8
<PAGE> 9
PART II, ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The annual meeting of shareholders of the registrant was held May 7,
1996.
(b) The following five individuals were elected as directors to serve for
three-year terms: Rufus C. Barkley, Jr., W. W. Johnson, William S.
Lee, Benjamin F. Payton, Eugene E. Stone IV. Listed below are
directors who continued their term of office after the meeting:
Edward E. Crutchfield, John R. Farmer, Lawrence M. Gressette, Jr., W.
Hayne Hipp, William O. McCoy, Buck Mickel, John H. Mullin, III, and J.
Thurston Roach.
(c) Matters voted upon at the annual meeting are as follows:
<TABLE>
<CAPTION>
WITHHELD/ BROKER
FOR AGAINST ABSTENTIONS NONVOTES
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
To elect as directors:
Rufus C. Barkley, Jr. 20,590,125 --- 70,703 ---
W. W. Johnson 20,527,275 --- 133,533 ---
William S. Lee 20,588,527 --- 72,301 ---
Benjamin F. Payton 20,437,107 --- 223,721 ---
Eugene E. Stone IV 20,589,675 --- 71,153 ---
To elect as independent auditors:
Ernst & Young LLP 20,635,333 6,975 18,520 ---
</TABLE>
(d) There were no settlements between the registrant and any other
participants.
PART II, ITEM 6. EXHIBIT AND REPORTS ON FORM 8-K
(a) A list of the exhibits filed with this report is included in
the Index to Exhibits filed herewith.
(b) The filing of Form 8-K was not required during the second
quarter of 1996.
INDEX TO EXHIBITS
EXHIBIT 11 Consolidated Earnings Per Share Computation
EXHIBIT 27 Financial Data Schedule (Electronic Filing Only)
9
<PAGE> 10
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
THE LIBERTY CORPORATION Date: August 12, 1996
(Registrant)
/s/ H. Ray Eanes
- ----------------
H. Ray Eanes
Senior Vice President Finance & Treasurer
/s/ John P. Smith
- -----------------
John P. Smith
Corporate Controller
10
<PAGE> 1
EXHIBIT 11
THE LIBERTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED EARNINGS PER SHARE COMPUTATION
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30,
------------------------------- ----------------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
(Unaudited)
<S> <C> <C> <C> <C>
PRIMARY SHARES
- --------------
Common shares outstanding - end of period 20,175,451 19,981,581 20,175,451 19,981,581
Weighted average common shares outstanding
20,140,321 19,914,315 20,110,230 19,883,476
Weighted average common stock options
outstanding 132,893 106,203 146,570 89,851
Preferred stock considered a common stock
equivalent 599,985 599,985 599,985 403,324
----------- ----------- ----------- -----------
Total primary shares 20,873,199 20,620,503 20,856,784 20,376,651
=========== =========== =========== ===========
FULLY DILUTED SHARES
- --------------------
Weighted average common shares outstanding
20,140,321 19,914,315 20,110,230 19,883,476
Weighted average common stock options
outstanding 132,904 106,203 146,597 103,028
Preferred stock considered a common stock
equivalent 599,985 599,985 599,985 403,324
Assumed conversion of redeemable preferred
stock not considered a common stock
equivalent 1,262,033 1,265,708 1,261,657 1,265,928
----------- ----------- ----------- -----------
Total fully diluted shares 22,135,243 21,886,211 22,118,469 21,655,756
=========== =========== =========== ===========
NET INCOME $16,300,000 $15,405,000 $30,355,000 $25,943,000
Preferred stock dividends on redeemable
preferred stock $ 663,000 $ 665,000 $ 1,326,000 $ 1,330,000
----------- ----------- ----------- -----------
Net income available to common shares $15,637,000 $14,740,000 $29,029,000 $24,613,000
=========== =========== =========== ===========
Primary earnings per share (net income
available to common shares divided by
total primary shares) $ 0.75 $ 0.72 $ 1.39 $ 1.21
=========== =========== =========== ===========
Fully diluted earnings per share (net
income divided by total fully diluted
shares) $ 0.74 $ 0.70 $ 1.37 $ 1.20
=========== =========== =========== ===========
</TABLE>
11
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF LIBERTY CORPORATION FOR THE SIX MONTHS ENDED JUNE 30,
1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<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> 1,453,341
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 81,315
<MORTGAGE> 223,611
<REAL-ESTATE> 141,671
<TOTAL-INVEST> 2,021,629
<CASH> 30,474
<RECOVER-REINSURE> 256,657
<DEFERRED-ACQUISITION> 360,970
<TOTAL-ASSETS> 3,004,456
<POLICY-LOSSES> 1,828,043
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 5,849
<POLICY-HOLDER-FUNDS> 29,242
<NOTES-PAYABLE> 272,126
45,656
20,999
<COMMON> 162,284
<OTHER-SE> 379,634
<TOTAL-LIABILITY-AND-EQUITY> 3,004,456
156,006
<INVESTMENT-INCOME> 75,465
<INVESTMENT-GAINS> 189
<OTHER-INCOME> 63,906
<BENEFITS> 110,518
<UNDERWRITING-AMORTIZATION> 21,448
<UNDERWRITING-OTHER> 59,587
<INCOME-PRETAX> 45,125
<INCOME-TAX> 14,770
<INCOME-CONTINUING> 30,355
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,355
<EPS-PRIMARY> 1.39
<EPS-DILUTED> 1.37
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
