SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 5, 1997
Acap Corporation
(Exact name of registrant as specified in its charter)
State or other jurisdiction of incorporation: Delaware
Commission File Number: 0-14451
IRS Employer Identification Number: 25-1489730
Address of principal executive offices: 10555 Richmond Avenue
Houston, Texas 77042
Registrant's telephone number: (713) 974-2242
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Item 5. Other Events.
On December 5, 1997, American Capitol Insurance Company
("American Capitol"), the wholly-owned subsidiary of the
registrant, Acap Corporation ("Acap"), entered an agreement in
principle to (1) coinsure a portion of the existing individual
life insurance business of Universal Life Insurance Company
("Universal") and (2) enter a service contract with Universal
whereby American Capitol will provide specified administrative
services related to the coinsured business. The transaction is
subject to development and execution of a coinsurance agreement
and a service contract acceptable to both parties. American
Capitol anticipates that, should the transaction close, the
coinsured business would be retroceded to another life insurance
company, with American Capitol retaining the administration of
the policies. The business that is the subject of the agreement
in principle consists of over 300,000 policies with aggregate
reserves in excess of $50 million. The agreement in principle
contemplates a December 31, 1997 effective date.
At September 30, 1997, Acap s subsidiaries administered
approximately 100,000 policies with aggregate reserves of $91
million.
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 hereunto duly authorized.
ACAP CORPORATION
By /s/John D. Cornett
--------------------------
John D. Cornett, Treasurer
Date: December 9, 1997
