<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT 0F 1934
For the Quarterly Period 33-01079,33-58482 and
Ended September 30, 1999 Commission File Number 333-09141
------------ ------------
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
(Exact name of registrant as specified in its charter)
New York 04-2845273
- ------------------------------------- ---------------------------------------
(State or other jurisdiction of (IRS Employer I.D. No.)
incorporation or organization)
122 East 42nd Street, Suite 1900 New York, NY 10017
- -------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(212) 922-9242
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
NONE
- -------------------------------------------------------------------------------
(Former name, former address, and former fiscal year, if changed since last
report.)
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.
(1) Yes |X| No |_|
(2) Yes |X| No |_|
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H (1) (a)
AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT PERMITTED BY INSTRUCTION H.
<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
INDEX
PAGE
NUMBER
PART I: Financial Information
Item 1: Financial Statements (Unaudited):*
Statutory Statements of Admitted Assets, Liabilities
and Capital Stock and Surplus
September 30, 1999 and December 31, 1998 3
Statutory Statements of Operations -
Nine Months Ended
September 30, 1999 and September 30, 1998 4
Statutory Statements of Operations -
Three Months Ended
September 30, 1999 and September 30, 1998 5
Statutory Statements of Capital Stock and Surplus -
Nine Months Ended
September 30, 1999 and September 30, 1998 6
Statutory Statements of Cash Flows -
Nine Months Ended
September 30, 1999 and September 30, 1998 7
Notes to Unaudited Statutory Financial Statements 8
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
PART II: Other Information
NONE
*The Statutory Statements of Admitted Assets, Liabilities and Capital Stock
and Surplus at December 31, 1998 have been taken from the audited statutory
financial statements at that date. All other statements are unaudited.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL STOCK AND
SURPLUS
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
ADMITTED ASSETS 1999 1998
--------------------- ---------------------
<S> <C> <C>
GENERAL ACCOUNT ASSETS:
Bonds $ 58,557,802 $ 57,916,869
Mortgage loans on real estate 11,569,491 17,657,672
Properties acquired in satisfaction of debt 0 1,755,854
Policy loans 609,988 625,023
Cash and short-term investments 6,898,178 5,928,556
Life insurance premiums and annuity considerations due & uncollected 1,583,136 667,087
Accident and health premiums due and unpaid 314,446 156,493
Investment income due and accrued 1,145,648 780,020
Other assets 1,145,974 183,602
--------------------- ---------------------
General account assets 81,824,663 85,671,176
SEPARATE ACCOUNT ASSETS:
Unitized 535,155,925 527,942,310
Non-unitized 91,111,896 100,064,243
--------------------- ---------------------
Total admitted assets $ 708,092,484 $ 713,677,729
===================== =====================
LIABILITIES
GENERAL ACCOUNT LIABILITIES:
Aggregate reserve for life policies and contracts $ 23,276,543 $ 22,578,780
Aggregate reserve for accident and health policies 8,374,000 7,830,000
Policy and contract claims 2,686,695 2,174,704
Liability for premium and other deposit funds 18,747,468 20,807,840
Interest maintenance reserve 568,707 830,941
Commissions to agents due or accrued 458,846 374,826
General expenses due or accrued 452,818 369,524
Transfers from Separate Accounts due or accrued (18,450,255) (15,992,081)
Taxes, licenses and fees due or accrued 90,800 64,813
Federal income taxes due or accrued 557,000 700,000
Asset valuation reserve 1,239,246 1,047,787
Payable to parent, subsidiaries and affiliates 2,136,665 1,218,745
Other liabilities 838,339 684,361
--------------------- ---------------------
General account liabilities 40,976,872 42,690,240
SEPARATE ACCOUNT LIABILITIES:
Unitized 534,958,702 527,751,720
Non-unitized 91,111,896 100,064,243
--------------------- ---------------------
Total liabilities 667,047,470 670,506,203
--------------------- ---------------------
CAPITAL STOCK AND SURPLUS
Capital stock - Par value $1,000;
Authorized, issued and outstanding;
2,000 shares 2,000,000 2,000,000
--------------------- ---------------------
Gross paid in and contributed surplus 29,500,000 29,500,000
Group life contingency reserve fund 973,824 812,391
Unassigned funds 8,571,190 10,859,135
--------------------- ---------------------
Total surplus 39,045,014 41,171,526
--------------------- ---------------------
Capital stock and surplus 41,045,014 43,171,526
--------------------- ---------------------
Total liabilities, capital stock and surplus $ 708,092,484 $ 713,677,729
===================== =====================
</TABLE>
See notes to unaudited statutory financial statements
3
<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
STATUTORY STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
INCOME 1999 1998
------------------------ -----------------------
<S> <C> <C>
Premiums and annuity consideration $ 14,589,949 $ 12,447,299
Deposit-typed funds 27,312,204 71,665,126
Net investment income 3,829,297 5,020,568
Amortization of interest maintenance reserve 194,768 241,146
Net gain from operations from Separate Accounts 6,633 6,883
Income from fees associated with investment management,
administration and contract guarantees from Separate Accounts 5,518,197 4,616,964
Other income 680,776 895,060
------------------------ -----------------------
Total income 52,131,824 94,893,046
------------------------ -----------------------
BENEFITS AND EXPENSES
Death benefits $ 5,323,172 $ 4,399,737
Annuity benefits 3,903,244 4,392,201
Disability benefits and benefits under accident and health policies 1,015,349 794,442
Surrender benefits and other fund withdrawals 42,744,021 58,347,106
Interest on policy or contract funds 61,012 77,672
Increase in aggregate reserves for life and
accident and health policies and contracts 1,241,763 1,481,167
Decrease in liability for premium and other deposit funds (2,060,372) (9,670,197)
------------------------ -----------------------
Total benefits 52,228,189 59,822,128
Commissions on premiums and annuity considerations (direct business only) 3,330,391 6,060,140
General insurance expenses 4,664,463 3,223,021
Insurance taxes, licenses and fees, excluding federal income taxes 572,198 528,686
Net transfers to or (from) Separate Accounts (14,725,204) 18,785,156
------------------------ -----------------------
Total benefits and expenses 46,070,037 88,419,131
------------------------ -----------------------
Net gain from operations before dividends to policyholders
and federal income taxes 6,061,787 6,473,915
Federal income taxes incurred (excluding tax on capital gains) 1,775,122 1,447,955
------------------------ -----------------------
Net gain from operations after dividends to policyholders and federal
income taxes and before realized capital gains or (losses) 4,286,665 5,025,960
Net realized capital gains or (losses) less capital gains
tax and transferred to the interest maintenance reserve 151,678 (40,571)
------------------------ -----------------------
NET INCOME $ 4,438,343 $ 4,985,389
======================== =======================
</TABLE>
See notes to unaudited statutory financial statements
4
<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
STATUTORY STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
INCOME 1999 1998
----------------- -----------------
<S> <C> <C>
Premiums and annuity consideration $ 4,770,154 $ 4,148,522
Deposit-typed funds 9,326,541 14,213,902
Net investment income 1,149,962 1,599,322
Amortization of interest maintenance reserve 59,635 79,321
Net gain from operations from Separate Accounts 2,256 2,343
Income from fees associated with investment management, administration and 0 0
contract guarantees from Separate Accounts 1,889,189 1,611,784
Other income 271,248 251,190
----------------- -----------------
Total income 17,468,985 21,906,384
----------------- -----------------
BENEFITS AND EXPENSES
Death benefits $ 1,736,559 $ 1,496,491
Annuity benefits 1,202,214 1,658,407
Disability benefits and benefits under accident and health policies 368,494 280,090
Surrender benefits and other fund withdrawals 16,116,853 15,074,008
Interest on policy or contract funds 22,777 38,587
Increase in aggregate reserves for life and accident and health policies and contracts (252,100) 203,062
Increase in liability for premium and other deposit funds (430,318) (1,551,346)
----------------- -----------------
Total benefits 18,764,479 17,199,299
Commissions on premiums and annuity considerations (direct business only) 1,030,964 1,674,084
General insurance expenses 1,899,538 723,088
Insurance taxes, licenses and fees, excluding federal income taxes 135,761 143,999
Net transfers to or (from) Separate Accounts (6,052,095) 441,185
----------------- -----------------
Total benefits and expenses 15,778,647 20,181,655
----------------- -----------------
Net gain from operations before dividends to policyholders and
federal income taxes 1,690,338 1,724,729
Federal income taxes incurred (excluding tax on capital gains) 443,763 208,572
----------------- -----------------
Net gain from operations after dividends to policyholders and federal
income taxes and before realized capital gains or (losses) 1,246,575 1,516,157
Net realized capital gains or (losses) less capital gains tax and transferred
to the interest maintenance reserve 179,000 (32,382)
----------------- -----------------
NET INCOME $ 1,425,575 $ 1,483,775
================= =================
</TABLE>
See notes to unaudited statutory financial statements
5
<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
STATUTORY STATEMENT OF CHANGES IN CAPITAL STOCK AND SURPLUS
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
1999 1998
--------------------- ---------------------
<S> <C> <C>
CAPITAL AND SURPLUS, BEGINNING OF PERIOD $ 43,171,526 $ 38,781,183
Net income 4,438,343 4,985,389
Change in net unrealized capital gains or (losses) 0 (100,181)
Change in non-admitted assets and related items 126,604 47,143
Change in asset valuation reserve (191,459) 114,122
Dividends to stockholders (6,500,000) (3,000,000)
--------------------- ---------------------
Net change in capital and surplus for the period (2,126,512) 2,046,473
--------------------- ---------------------
CAPITAL AND SURPLUS, END OF PERIOD $ 41,045,014 $ 40,827,656
===================== =====================
</TABLE>
See notes to unaudited statutory financial statements
6
<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
STATUTORY STATEMENTS OF CASH FLOW
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
1999 1998
--------------------- ---------------------
<S> <C> <C>
CASH PROVIDED
Premiums, annuity considerations and deposit funds received $ 40,742,319 $ 89,018,153
Net investment income received 3,607,388 4,838,880
Fees associated with investment management, administration and
contract guarantees from Separate Accounts 5,518,197 4,616,964
Fee income 680,776 895,060
--------------------- ---------------------
Total receipts 50,548,680 99,369,057
--------------------- ---------------------
Benefits paid 52,534,807 113,533,334
Insurance expenses and taxes paid 8,373,751 10,013,480
Net cash transfers to (from) separate accounts (12,267,030) (25,468,719)
Federal income tax payments (excluding tax on capital gains) 1,918,122 1,647,955
--------------------- ---------------------
Total payments 50,559,650 99,726,050
--------------------- ---------------------
Net cash from operations (10,970) (9,592,921)
Proceeds from long-term investments sold, matured or repaid
(after deducting taxes on capital gains of $45,351 for 1999,
and $58,241 for 1998) 37,945,198 25,753,817
Other cash provided 1,544,138 1,268,788
--------------------- ---------------------
Total cash provided 39,489,336 27,022,605
CASH APPLIED
Cost of long-term investments acquired 30,788,570 10,511,080
Dividends to stockholders paid 6,500,000 3,000,000
Other cash applied 1,222,174 338,967
--------------------- ---------------------
Total cash applied 38,508,744 13,850,047
--------------------- ---------------------
Net change in cash and short-term investments 969,622 3,579,637
CASH AND SHORT-TERM INVESTMENTS:
BEGINNING OF PERIOD 5,928,556 10,120,237
--------------------- ---------------------
END OF PERIOD $ 6,898,178 $ 13,699,874
===================== =====================
</TABLE>
See notes to unaudited statutory financial statements
7
<PAGE>
Sun Life Insurance and Annuity Company of New York
Notes to Unaudited Statutory Financial Statements
(1) General
In management's opinion all adjustments, which include only normal recurring
adjustments, necessary for a fair presentation of the financial statements have
been made.
(2) Management and Service Contracts
The Company has agreements with Sun Life Assurance Company of Canada (`SLOC')
which provide that SLOC will furnish to the Company, as requested, personnel as
well as certain investment and administrative services on a cost reimbursement
basis. Expenses under these agreements amounted to approximately $810,000 and
$1,592,000 for the three and nine month periods in 1999 and $168,000 and
$901,000 for the three and nine month periods in 1998, respectively.
-8-
<PAGE>
Sun Life Insurance and Annuity Company Of New York
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Cautionary Statement
This Form 10-Q includes forward-looking statements by the Registrant under the
Private Securities Legislation Reform Act of 1995. These statements are not
matters of historical fact: they relate to such topics as future product values,
Year 2000 compliance, volume growth, market share, market risk and financial
goals. It is important to understand that these forward-looking statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those that the statements anticipate. These risks and
uncertainties may concern among other things:
- - The Company's ability to identify and address Year 2000 issues
successfully, in a timely manner, and at a reasonable cost. They also may
concern the ability of the Company's vendors, suppliers, other service
providers, and customers to successfully address their own Year 2000 issues
in a timely manner.
- - Heightened competition, particularly in terms of price, product features,
and distribution capability, which could constrain the Company's growth and
profitability.
- - Change in interest rates and market conditions.
- - Regulatory and legislative developments.
- - Developments in consumer preferences and behavior patterns.
Net Income
The Company had net income of $1,426,000 and $4,438,000 for the three and nine
month periods ended September 30, 1999, respectively, as compared to $1,484,000
and $4,985,000 for the same periods ended September 30, 1998. The $58,000 and
$547,000 decrease in earnings for the three and nine month periods,
respectively, was due primarily to an increase in group death claims from
adverse mortality experience and higher general insurance expenses due to the
transition of group insurance operations to the Company's parent company, Sun
Life Assurance Company of Canada (U.S.) ("SLUS"), offset by higher fee income
for appreciating separate account assets.
Income
Total income decreased by $4,437,000 and $42,761,000 for the three and nine
month periods ended September 30, 1999, respectively, as compared to the same
periods in 1998. The decreases were due primarily to the decline in annuity
deposit fund sales relating to the dollar cost averaging ("DCA") program of the
Company's market-value adjusted combination fixed/variable annuity product.
Under the DCA program, deposits are made into the fixed portion of the annuity
contracts and receive a more favorable crediting rate for the policy year.
During the year, the fixed deposit is exchanged to the variable portion of the
contract in equal periodic installments. The decline in DCA sales was
attributable to the Company adhering to the New York State Insurance
Department's ("Department") request to limit the DCA crediting rate the Company,
and its competitors, could offer. The Department recently issued guidelines for
enhanced interest rate offerings to New York issued contracts and the Company
expects to resume offering an enhanced DCA crediting rate during the fourth
quarter of 1999. During the first three quarters of 1999, the decline in annuity
deposit fund sales was also adversely impacted by the implementation, in
November 1998, of the Department's Regulation 60, which governs replacement
sales. Also contributing to the decline in income for the three and nine month
periods ended September 30, 1999, were decreases in net investment income due to
a decline in general account invested assets, the result of fixed annuity
maturities exceeding fixed annuity sales. Group life and accident and health
premiums increased between periods as a result of the continued growth of the
Company's group business while fee income increased from market appreciation on
separate account assets.
Benefits and Expenses
Policyholder benefits increased by $1,565,000 and decreased by $7,594,000 for
the three and nine month periods ended September 30, 1999, respectively, as
compared to the same periods in 1998. The increase in benefits during the three
month period was due primarily to an increase in death benefits on group life
insurance policies and a smaller decrease in annuity reserves from fewer annuity
surrenders. The year-to-date decrease in benefits was due primarily to lower
surrender benefits, the result of fewer maturing annuity contracts and the
effects of Regulation 60 (discussed above), offset by an increase in death
benefits.
Commissions, general expenses and taxes, licenses and fees in total increased by
$525,000 and decreased by $1,245,000 for the three and nine month periods ended
September 30, 1999, respectively, as compared to the same periods in 1998.
Commissions decreased as a result of a decline in annuity deposit fund sales
while general expenses increased primarily as a result of higher allocated
expenses from SLUS and one time costs associated with the consolidation of the
Company's annuity operations to SLUS. The decrease in net transfers to separate
accounts was due directly to lower variable annuity sales.
-9-
<PAGE>
Sun Life Insurance and Annuity Company of New York
Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
Capital and Surplus
The total capital stock and surplus position of the Company at September 30,
1999, was $41.0 million. Cash dividends of $6.5 million were paid to SLUS during
the nine months ended September 30, 1999. The Company's management considers its
surplus position to be adequate.
Year 2000 Compliance
The statements in this section include "Year 2000 Readiness Disclosures" within
the meaning of the Year 2000 Information and Readiness Disclosure Act.
During the fourth quarter of 1996, the Company, its ultimate parent, and
affiliates began a comprehensive analysis of their information technology
("IT") and non-IT systems, including their hardware, software, data, data feed
products, and internal and external supporting services, to address the
ability of these systems to correctly process date calculations through the
year 2000 and beyond. The Company created a full-time Year 2000 project team
in early 1997 to manage this endeavor across the Company. This team, which
works with dedicated personnel from all business units and with the legal and
audit departments, reports directly to the Company's senior management on a
monthly basis. In addition, SLOC's Year 2000 project is periodically reviewed
by internal and external auditors.
To date, relevant systems have been identified and their components
inventoried, needed resolutions have been documented timelines and project
plans have been developed, and remediation and testing are in process of the
nearly 2000 systems used by the Company, all of mission critical systems have
been assessed, fixed where necessary, tested, and based on these tests, are
considered to be year 2000 compliant. The Company regards year 2000
compliance as meaning that its business systems will have passed tests that
indicate they will operate accurately before, during and after January 1,
2000 with respect to year 2000 issues. The Company defines mission critical
systems as those systems that cannot be unavailable for more than 48 hours
without causing major disruption to the business.
In mid-1997, the Company's Year 2000 project team contacted all key vendors to
obtain their representation that the products and services provided will not
have a Year 2000 issue. Where appropriate, vendor testing has been conducted.
In addition, the project team continues to work with critical business
partners, such as third-party administrators, investment property managers,
investment mortgage correspondents, and others, with the goal that these
partners will continue to be able to support the Company's business during and
after the Year 2000.
Non-IT applications, including building security, HVAC systems, and other such
systems, as well as IT applications have been tested. Compliant client server
and mainframe environments were used to allow for testing of critical dates such
as December 31, 1999, January 1, 2000, February 28, 2000, February 29, 2000 and
March 1, 2000 without impact to current production.
Although the Company expects to have addressed Year 2000 issues it has found
with its systems before the end of 1999, there can be no assurance that these
issues will not impact the Company's operations. Factors giving rise to this
uncertainty include possible loss of technical resources to perform the work,
failure to identify all susceptible systems, non-compliance by third parties
whose systems and operations affect the Company, and other similar
uncertainties. A possible worst-case scenario might include one or more of the
Company's systems being affected by the Year 2000 problem. Such a scenario could
result in disruption to the Company's operations. Consequences of such
disruptions could include, among other possibilities, the inability to update
customers' accounts, process payments and other financial transactions, and
report accurate data to customers, management, regulators, and others.
Consequences also could include business interruptions or shutdowns,
reputational harm, increased scrutiny by regulators, and litigation related to
Year 2000 issues. Such potential consequences, depending on their nature and
duration, could have an impact on the Company's results of operations and
financial position.
In order to mitigate the risks to the Company of material adverse operational
or financial impacts from the Year 2000 problem, the Company has established
contingency planning at the business unit and corporate levels. Each business
unit has ranked its applications as being of high, medium or low business
risk. Each business unit has identified its critical
<PAGE>
business processes, developed alternative plans of action where possible, and
has conducted walkthroughs of those plans. On the corporate level, the Company
has enhanced its business continuation plan, by identifying minimum
requirements for facilities, computing, staffing, and other factors, and it is
developing a plan to support those requirements.
As of year-end 1998, the Company expended, cumulatively, approximately $220,000
on its Year 2000 effort. The Company expects to incur a further $70,000 on this
effort in 1999, of which approximately $43,000 was incurred in the nine months
ended September 30, 1999.
-10-
<PAGE>
PART II: OTHER INFORMATION
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibits are incorporated by reference unless otherwise
indicated:
EXHIBIT NO.
- -----------
3 Certificate of Incorporation and by-laws (filed as Exhibit 6 to
Post-Effective Amendment No. 2 to the Registration Statement on
Form N-4 (Registration No. 333-05037), filed October 14, 1997.
27 FINANCIAL DATA SCHEDULE (filed herewith)
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Sun Life Insurance and Annuity Company of New York
November 12, 1999 /s/ Davey S. Scoon
---------------------------------------------
Davey S. Scoon, Vice President Finance,
Controller and Treasurer
November 12, 1999 /s/ Steven I. Rosenthal
---------------------------------------------
Steven I. Rosenthal, Assistant Vice President
and Chief Administrative Officer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL STOCK AND
SURPLUS AND THE STATUTORY STATEMENTS OF OPERATIONS ON PAGES 3 AND 5 OF THE
COMPANY'S FORM 10-Q FOR THE YEAR-TO-DATE PERIOD ENDED JUNE 30, 1999.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<DEBT-HELD-FOR-SALE> 0
<DEBT-CARRYING-VALUE> 58,558,000
<DEBT-MARKET-VALUE> 57,311,000
<EQUITIES> 0
<MORTGAGE> 11,569,000
<REAL-ESTATE> 0
<TOTAL-INVEST> 70,127,000
<CASH> 6,898,000
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 708,092,000
<POLICY-LOSSES> 34,337,000
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 18,747,000
<NOTES-PAYABLE> 0
0
0
<COMMON> 2,000,000
<OTHER-SE> 39,045,000
<TOTAL-LIABILITY-AND-EQUITY> 708,092,000
41,902,000
<INVESTMENT-INCOME> 4,031,000
<INVESTMENT-GAINS> 0
<OTHER-INCOME> 6,199,000
<BENEFITS> 37,503,000
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 8,657,000
<INCOME-PRETAX> 6,213,000
<INCOME-TAX> 1,775,000
<INCOME-CONTINUING> 4,438,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,438,000
<EPS-BASIC> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
