SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[ X ] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended March 31, 2000.
OR
[ ] 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 0-11413
MERIDIAN INSURANCE GROUP, INC.
(Exact name of registrant as specified in its charter)
Indiana 35-1689161
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
2955 North Meridian Street
P.O. Box 1980
Indianapolis, IN 46206
(Address of principal executive offices)
Registrant's telephone number, including area code: (317) 931-7000
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 issuer's
classes of common stock, as of the latest practical date:
7,900,466 Common Shares at March 31, 2000
The Index of Exhibits is located at page 16 in the sequential
numbering system.
Total pages: 16
MERIDIAN INSURANCE GROUP, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. In the opinion of management, the financial
information reflects all adjustments (consisting only of
normal recurring adjustments) which are necessary for a
fair presentation of financial position, results of
operations and cash flows for the interim periods. The
results for the three months ended March 31, 2000, are
not necessarily indicative of the results to be expected
for the entire year.
These quarterly interim financial statements are
unaudited.
MERIDIAN INSURANCE GROUP, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
as of March 31, 2000 and December 31, 1999
March 31 December 31
2000 1999
(Unaudited)
ASSETS
Investments:
Fixed maturities, available for sale at market
(cost $229,727,000 and $232,090,000) $ 224,763,533 $ 226,431,532
Equity securities, at market
(cost $54,332,000 and $54,282,000) 67,488,958 69,002,099
Short-term investments, at cost, which
approximates market 3,435,885 2,822,215
Other invested assets 1,261,121 1,322,209
Total investments 296,949,497 299,578,055
Cash 1,580,330 1,381,888
Premium receivable, net of bad debt allowance 12,724,726 13,113,315
Accrued investment income 2,989,540 3,314,756
Deferred policy acquisition costs 20,631,060 19,974,450
Goodwill 13,894,358 14,070,480
Reinsurance receivables 31,304,495 34,057,786
Prepaid reinsurance premiums 3,657,141 3,592,121
Due from Meridian Mutual Insurance Company 9,286,673 4,620,574
Other assets 3,303,465 4,519,700
Total assets $ 396,321,285 $ 398,223,125
LIABILITIES AND SHAREHOLDERS' EQUITY
Losses and loss adjustment expenses $ 140,636,180 $ 145,962,418
Unearned premiums 91,860,707 88,698,507
Other post-employment benefits 2,260,247 2,204,739
Bank loan payable 8,000,000 8,500,000
Payable for securities 1,494,958 0
Reinsurance payables 10,220,819 9,142,015
Other liabilities 4,016,362 6,906,277
Total liabilities 258,489,273 261,413,956
Shareholders' equity:
Common shares, no par value, Authorized 20,000,000 shares;
issued 8,251,151 and 8,218,167; outstanding 7,900,466 and
7,926,610 at March 31, 2000 and December 31, 1999,
respectively (including 10% stock dividend issued
on January 11, 2000, for 721,872 shares, and
January 6, 1999, for 658,493 shares) 45,142,924 44,793,300
Treasury Shares, at cost; 350,685 and
291,557 shares, respectively (5,375,820) (4,566,809)
Contributed capital 36,481,864 36,481,864
Retained earnings 56,142,241 54,112,519
Accumulated other comprehensive income 5,440,803 5,988,295
Total shareholders' equity 137,832,012 136,809,169
Total liabilities and shareholders' equity $ 396,321,285 $ 398,223,125
The accompanying notes are an integral part of the consolidated
financial statements.
MERIDIAN INSURANCE GROUP, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
for the three months of March 31, 2000
(Unaudited)
Three Months Ended
March 31,
2000 1999
Premiums earned $ 53,192,794 $ 47,715,360
Net investment income 3,803,164 4,155,279
Realized investment gains 1,318,934 942,433
Other income 285,943 28,193
Total revenues 58,600,835 52,841,265
Losses and loss adjustment expenses 38,583,510 36,500,943
General operating expenses 4,050,952 4,301,197
Interest expenses 140,703 152,974
Amortization expenses 12,362,857 10,882,003
Total expenses 55,138,022 51,837,117
Income before taxes and change
in accounting method 3,462,813 1,004,148
Income taxes (benefit):
Current 599,000 124,000
Deferred 199,000 (44,000)
Total income taxes 798,000 80,000
Income before change in accounting
method 2,664,813 924,148
Cumulative effect of change in
accounting method, net of tax 0 (293,700)
Net Income $ 2,664,813 $ 630,448
Basic average shares outstanding 7,919,915 7,973,734
Weighted average shares outstanding 7,943,042 8,079,031
Per share results:
Basic earnings per share before
change in accounting method $ 0.34 $ 0.12
Accounting change, net of tax, per share 0.00 (0.04)
Basic earnings per share $ 0.34 $ 0.08
Diluted earnings per share before
change in accounting method $ 0.34 $ 0.12
Accounting change, net of tax, per share 0.00 (0.04)
Diluted earnings per share $ 0.34 $ 0.08
The accompanying notes are an integral part of the consolidated
financial statements.
<TABLE>
MERIDIAN INSURANCE GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the three months ended March 31, 2000 and 1999
(Unaudited)
<CAPTION>
Accumulated
Other
Shares Shares Capital Earnings Income (Loss) Income (Loss)
<S> <C> <C> <C> <C> <C> <C>
Balance January 1, 1999 $ 44,336,679 $ (3,277,781) $ 25,923,462 $ 59,796,235 $ 15,190,238
Comprehensive income:
Net income -- -- -- 630,448 -- $ 630,448
Other comprehensive
income, net of tax:
Unrealized loss on securities,
net of reclassification
adjustment -- -- -- -- (2,253,742) (2,253,742)
Comprehensive income (loss) -- -- -- -- -- $ (1,623,294)
Repurchase of 15,634 common shares -- (299,977) 79,295 -- --
Issuance of 3,104 restricted
common shares 57,618 -- -- -- --
Issuance of 290 common shares 5,564 -- -- -- --
Exercise of stock options for 28,189
common shares 304,301 -- -- -- --
Dividends ($0.08 per share) -- -- -- (581,250) --
Balance at March 31, 1999 $ 44,704,162 $ (3,577,758) $ 26,002,757 $ 59,845,433 $ 12,936,496
Balance January 1, 2000 $ 44,793,300 $ (4,566,809) $ 36,481,864 $ 54,112,519 $ 5,988,295
Comprehensive income:
Net income -- -- -- 2,664,813 -- $ 2,664,813
Other comprehensive
income, net of tax:
Unrealized loss on securities,
net of reclassification
adjustment -- -- -- -- (547,492) (547,492)
Comprehensive income -- -- -- -- -- $ 2,117,321
Repurchase of 59,128 common
shares -- (809,011) -- -- --
Issuance of 7,758 restricted
shares 102,067 -- -- -- --
Exercise of stock options for 25,226
common shares 247,557 -- -- -- --
Dividends ($0.24 per share) -- -- -- (635,091) --
Balance at September 30, 1999 $ 45,142,924 $ (5,375,820) $ 36,481,864 $ 56,142,241 $ 5,440,803
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
<TABLE>
MERIDIAN INSURANCE GROUP, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
for the three months ended March 31, 2000 and 1999
(Unaudited)
<CAPTION>
March 31,
2000 1999
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,664,813 $ 630,448
Reconciliation of net income to net cash
provided by operating activities:
Amortization 12,362,857 10,882,003
Deferred policy acquisition costs (12,843,344) (11,411,122)
Deferred income taxes 199,000 (44,000)
Increase in unearned premiums 3,162,200 2,757,777
Increase (decrease) in losses and loss adjustment expenses (5,326,238) 1,380,201
Decrease (increase) in premium receivables 388,589 (1,107,529)
Increase in amount due to Meridian Mutual Ins. Co. (4,666,100) (1,888,436)
Decrease (increase) in reinsurance receivables 2,753,291 (1,694,876)
Increase in prepaid reinsurance premiums (65,020) (196,729)
Decrease in other assets 713,770 179,428
Decrease in reinsurance payables 1,078,804 611,412
Decrease in accrued commissions and
other expenses (1,513,711) (1,548,865)
Increase in payable for federal income taxes 599,000 124,000
Increase (decrease) in other liabilities (740,904) 29,479
Net realized investment gains (losses) (1,318,934) (942,433)
Issuance of restricted common stock 102,067 57,618
Issuance of common stock --- ---
Cumulative effect of change in accounting method --- 293,700
Other, net (329,382) (781,332)
Net cash used by operating activities (2,779,242) (2,669,256)
Cash flows from investing activities:
Purchase of fixed maturities (16,119,330) (11,533,492)
Proceeds from sale of fixed maturities 13,794,926 9,126,605
Proceeds from calls, prepayments and maturity
of fixed maturities 4,281,277 5,575,696
Purchase of equity securities (6,698,656) (8,158,626)
Proceeds from sale of equity securities 8,449,089 9,003,224
Net decrease (increase) in short-term investments (613,670) 4,297,421
Decrease in other invested assets 86,100 33,421
Increase (decrease) in securities receivable/payable 1,494,493 (3,023,539)
Net cash provided by investing activities 4,674,229 5,320,710
Cash flows from financing activities:
Dividends paid (635,091) (579,497)
Repayment of bank loan (500,000) (375,000)
Repurchase of common shares (809,011) (299,977)
Exercise of stock options 247,557 304,301
Net cash used in financing activities (1,696,545) (950,173)
Increase in cash 198,442 1,701,281
Cash at beginning of period 1,381,888 854,522
Cash at end of period $ 1,580,330 $ 2,555,803
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
MERIDIAN INSURANCE GROUP, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The unaudited consolidated financial statements should be read in
conjunction with the following notes and with the Notes to
Consolidated Financial Statements of Meridian Insurance Group, Inc.,
for the year ended December 31, 1999. In the opinion of management,
the financial information reflects all adjustments (consisting only
of normal recurring adjustments) which are necessary for a fair
presentation of financial position, results of operations and cash
flows for the interim periods. The results for the three months
ended March 31, 2000, are not necessarily indicative of the results
to be expected for the entire year.
1. Related Party Transactions
Meridian Insurance Group, Inc. (the "Company") is an insurance
holding company principally engaged in underwriting property and
casualty insurance through its wholly-owned subsidiaries,
Meridian Security Insurance Company, Meridian Citizens Security
Insurance Company and Insurance Company of Ohio. Since August 1,
1996, the companies have participated in a pooling arrangement
with Meridian Mutual Insurance Company ("Meridian Mutual"), the
principal shareholder of the Company, and Meridian Citizens
Mutual Insurance Company, in which the underwriting income and
expenses of each entity are shared. The participation
percentages of the Company's insurance subsidiaries for the
periods ended March 31, 2000 and 1999 total 74 percent.
2. Reinsurance
For the three months ended March 31, 2000 and 1999, the effects
of reinsurance on the Company's premiums written, premiums earned and
losses and loss adjustment expenses are as follows:
Three Months Ended
March 31,
2000 1999
Premiums written:
Direct $ 60,437,396 $ 54,180,706
Assumed 92,952 162,688
Ceded (4,240,373) (4,066,987)
Net $ 56,289,975 $ 50,276,407
Premiums earned:
Direct $ 57,274,651 $ 51,375,116
Assumed 93,497 206,556
Ceded (4,175,354) (3,866,312)
Net $ 53,192,794 $ 47,715,360
Losses and loss adjustment expenses:
Direct $ 38,254,821 $ 40,994,699
Assumed 267,419 (248,031)
Ceded 61,270 (4,245,725)
Net $ 38,583,510 $ 36,500,943
3. Earnings Per Share
The following table represents the reconciliation of the numerators and
denominators of the Company's basic earnings per share and diluted earnings
per share computation reported on the Consolidated Statement of Income
for the three month periods ended March 31, 2000 and 1999:
Three Months Ended
March 31,
2000 1999
Basic earnings per share computation:
Numerator (net income) before change
in accounting method $ 2,664,813 $ 924,148
Denominator:
Weighted average common
shares outstanding 7,919,915 7,973,734
Basic earnings per share
before change in
accounting method $ $
Cumulative effect of change
in accounting method --- (0.04)
Basic earnings per share $ 0.34 $ 0.08
Diluted earnings per share computation:
Numerator (net income) before change
in accounting method $ 2,664,813 $ 924,148
Denominator:
Weighted average common
shares outstanding 7,919,915 7,973,734
Stock options 23,127 105,297
Total shares 7,943,042 8,079,031
Diluted earnings per share
before change in
accounting method $ 0.34 $ 0.12
Cumulative effect of change
in accounting method --- (0.04)
Diluted earnings per share $ 0.34 $ 0.08
The earnings per share information in the above table reflects the ten
percent stock dividend declared in December 1999 and 1998.
4. Comprehensive Income
The Company's other comprehensive income consists solely of net
unrealized gains (losses) on securities. The total net
unrealized gains (losses) on securities for the period ended
March 31, 2000 and 1999 consist of the following:
Three Months Ended
March 31,
2000 1999
Unrealized holding gains (losses) before
deferred income taxes $ 632,800 $ (2,292,435)
Deferred income tax (expense) or benefit (221,000) 802,000
Subtotal 411,800 (1,490,435)
Less: Reclassification adjustment for
realized gains 1,476,292 1,175,307
Income tax expense related to
realized gains (517,000) (412,000)
Subtotal 959,292 763,307
Other comprehensive income (loss) $ (547,492)$ (2,253,742)
5. Segment Information
The following tables display the Company's reportable segments, a
reconciliation of segment data to total consolidated financial
data, and related disclosure information concerning revenues as
required by SFAS No. 131 for the three months ended March 31, 2000
and 1999. Segments were defined based upon the Company's structure
and decision making processes. Personal, commercial, and farm
lines are segmented within all internal reporting mechanisms to aid
chief decision makers in achieving profitable results within each
business segment. Amortization was allocated by segment based upon
a ratio of premium. Investment income was determined consistent
with statutory modeling requirements for the Insurance Expense
Exhibit. These guidelines rely on historical reserve patterns by
line of business. Asset information by reportable segment is not
reported, since the Company does not internally produce such
information.
<TABLE>
March 31, 2000
<CAPTION>
Segment Non-segment
Personal Farmowners Commercial Total Total Total
<S> <C> <C> <C> <C> <C> <C>
Premiums earned $ 31,455,540 $ 2,754,009 $ 18,983,245 $ 53,192,794 $ --- $ 53,192,794
Net investment income 2,249,000 196,905 1,357,259 3,803,164 --- 3,803,164
Net realized investment gains --- --- --- --- 1,318,934 1,318,934
Other income --- --- --- --- 285,943 285,943
Total revenues 33,704,540 2,950,914 20,340,504 56,995,958 1,604,877 58,600,835
Loss and LAE 23,231,185 1,295,096 14,057,229 38,583,510 --- 38,583,510
General operating expenses 2,235,721 231,985 1,583,246 4,050,952 --- 4,050,952
Interest expense --- --- --- --- 140,703 140,703
Amortization expenses 6,823,062 707,981 4,831,814 12,362,857 --- 12,362,857
Total expenses 32,289,968 2,235,062 20,472,289 54,997,319 140,703 55,138,022
Income (loss) before taxes 1,414,572 715,852 (131,785) 1,998,639 1,464,174 3,462,813
Income taxes (benefit) 325,986 164,967 (30,370) 460,583 337,417 798,000
Net income (loss) 1,088,586 550,885 (101,415) 1,538,056 1,126,757 2,664,813
March 31, 1999
Premiums earned $ 27,986,185 $ 2,746,182 $ 16,982,993 $ 47,715,360 $ --- $ 47,715,360
Net investment income 2,437,169 239,151 1,478,959 4,155,279 --- 4,155,279
Net realized investment gains --- --- --- --- 942,433 942,433
Other income --- --- --- --- 28,193 28,193
Total revenues 30,423,354 2,985,333 18,461,952 51,870,639 970,626 52,841,265
Loss and LAE 21,845,713 2,112,133 12,543,097 36,500,943 --- 36,500,943
General operating expenses 2,296,275 255,213 1,749,709 4,301,197 --- 4,301,197
Interest expense --- --- --- --- 152,974 152,974
Amortization expenses 5,809,565 645,687 4,426,752 10,882,003 --- 10,882,003
Total expenses 29,951,553 3,013,033 18,719,558 51,684,143 152,974 51,837,117
Income (loss) before taxes
and accounting change 471,801 (27,700) (257,606) 186,496 817,652 1,004,148
Income taxes (benefit) 37,588 (2,207) (20,523) 14,858 65,142 80,000
Income (loss) before
accounting change 434,213 (25,493) (237,083) 171,638 752,510 924,148
Cumulative effect of change
in accounting method,
net of tax --- --- --- --- (293,700) (293,700)
Net income (loss) $ 434,213 $ (25,493) $ (237,083) $ 171,638 $ 458,810 $ 630,448
</TABLE>
As required by SFAS No. 131, the following table delineates the Company's
products and revenues in a manner which is consistent with segment
reporting:
March 31,
2000 1999
Personal Lines:
Automobile $ 24,699,256 $ 21,160,212
Homeowners 6,115,062 6,163,504
Other 641,222 662,469
Total Personal Lines 31,455,540 27,986,185
Commercial Lines:
Automobile 5,040,544 4,353,137
Workers Compensation 6,427,711 5,309,433
Commercial Multi-Peril 6,265,706 6,213,675
Other 1,249,284 1,106,748
Total Commercial Lines 18,983,245 16,982,993
Farm Lines:
Farmowners 2,754,009 2,746,182
Total Farm Lines 2,754,009 2,746,182
Total All Lines Combined $ 53,192,794 $ 47,715,360
6. Changes in Accounting for Insurance-Related Assessments
Effective January 1, 1999, the Company adopted SOP 97-3 "Accounting
by Insurance and Other Enterprises for Insurance-Related
Assessments." This statement requires that a liability for
insurance-related assessments be recognized when the assessments
have been imposed or it is probable that an assessment will be
imposed, the event obligating the Company has occurred, and the
amount can be reasonably estimated. SOP 97-3 requires that a
liability for the current calendar year experience be recognized and
that the initial application be treated as a cumulative effect type
accounting change. The Company recorded an additional liability and
a charge to the statement of income of $293,700 net of income tax,
to reflect the cumulative effect of the accounting change in 1999.
7. Accounting for Derivative Instruments and Hedging Activities
In June 1998 the Financial Accounting Standards Board (FASB) issued
SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities." In July 1999, the FASB released SFAS No. 137,
"Accounting for Derivative Instruments and Hedging Activities -
Deferral of the Effective Date of FASB Statement No. 133, An
Amendment of FASB Statement No. 133." SFAS No. 137 defers the
effective date of this pronouncement to fiscal years beginning after
June 15, 2000. SFAS No. 133 establishes accounting and reporting
standards for derivative instruments (including derivative
instruments that are embedded in other contracts) and hedging
activities. All items that are required to be recognized must be
displayed according to accounting standards in the statement of
financial position at fair value. The Company does not hold any
derivative instruments and does not currently participate in hedging
activities. The Company does not anticipate a material impact upon
adoption of this statement.
8. Supplemental Cash Flow Disclosures
Interest paid for the three month periods ended March 31, 2000 and 1999 was
$137,103 and $152,974, respectively.
Federal income taxes paid for the three month periods ended March 31, 2000 and
1999 were $0 and $300,000, respectively.
MERIDIAN INSURANCE GROUP, INC. AND SUBSIDIARIES
Item 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations:
Financial Position
Total assets for Meridian Insurance Group, Inc. at March 31,
2000 were $396.3 million, a slight decrease from the
December 31, 1999 total of $398.2 million. Unrealized
depreciation on the Company's fixed maturity portfolio
declined by approximately $0.7 million from $5.7 million at
December 31, 1999 to $5.0 million at March 31, 2000. The
effective duration of the Company's fixed maturity portfolio
is approximately 4.9 years. Net unrealized appreciation of
equity securities decreased approximately $1.5 million from
$14.7 million at December 31, 1999 to approximately $13.2
million at March 31, 2000. Reinsurance receivables declined
by approximately $2.8 million since year-end, consistent
with a related $5.4 million decrease in loss and loss
adjustment expense reserves.
Total liabilities at March 31, 2000 of $258.5 million
decreased in comparison to the $261.4 million reported at
December 31, 1999. In addition to the change in loss and
loss adjustment expense reserves, the decline in total
liabilities resulted from the payment of certain other year-
end liabilities. The liability for unearned premiums rose
$3.2 million from December 31, 1999 due to increased premium
volume for the quarter.
The Company's shareholders' equity at March 31, 2000
increased slightly to $137.8 million compared to the
December 31, 1999 total of $136.8 million. The primary
factor leading to this increase was net income of $2.7
million, which exceeded the sum of unrealized losses on
securities, share repurchases, and stockholder dividends for
the quarter. The Company's book value per share at March
31, 2000 was $17.45, compared with $17.26 at year-end 1999.
Results of Operations
For the three months ended March 31, 2000, the Company
recorded net income of $2.7 million, or $0.34 per common
share for both basic and diluted earnings. This compares to
net income of $0.6 million, or $0.08 earnings per share for
both basic and diluted earnings for the corresponding 1999
period. Quarterly earnings per share included operating
earnings of $0.23 for 2000 compared to $0.05 in 1999. Net
realized investment gains were $0.11 in the first quarter of
2000 compared with $0.07 in 1999. The prior year's first
quarter earnings also reflected a non-recurring charge of
$0.04 per share after tax, representing the cumulative
effect of a change in accounting method for certain
insurance-related assessments. The Company's statutory
combined ratio for the first quarter of 2000 improved to
approximately 101.8 percent, compared to 107.0 percent in
1999.
The Company's total revenues for the first quarter of 2000
were $58.6 million compared to $52.8 million for the same
1999 period. The Company had an increase of $5.5 million,
or 11.5 percent, in earned premiums compared to 1999. Net
written premiums increased 12.0 percent in 2000 over 1999's
first quarter. The growth in written premiums was generated
by a combination of rate increases and new business in
commercial lines, with personal lines growth resulting from
increased sales of the non-standard auto product and sales
to affinity group members in certain states.
Net investment income of approximately $3.8 million for the
first quarter of 2000 declined in comparison to $4.2 million
for 1999. This decline is attributable to a number of
factors, including slight reductions in yields on preferred
and common equities and in the average balance of fixed
maturity investments held during the quarter. For the
quarter ended March 31, 2000, the Company realized net gains
on the sale of investments of approximately $1.3 million, or
$0.11 per share after tax, compared to approximately $0.9
million or $0.07 per share after tax for the first quarter
of 1999. The 2000 realized gains largely resulted from the
sale of eight common stocks. Such gains were net of
approximately $0.5 million of losses realized on bond sales
in order to enhance liquidity and yield.
The Company's total incurred losses and loss adjustment
expenses for the first quarter of 2000 increased to $38.6
million from $36.5 million for the comparable 1999 quarter.
The first quarter 2000 loss and loss adjustment expense
ratio improved to 72.5 compared to 76.5 percent for the
first quarter of 1999. Results for property coverages in
the homeowners, farmowners, and commercial lines of business
improved significantly over the same period in 1999. Such
results were helped by fewer weather-related catastrophe
losses, which declined from $4.2 million in 1999 to
approximately $0.7 million for the first quarter of 2000.
Consistent with industry trends, workers compensation
results deteriorated during the quarter.
The Company's total of general operating and amortization
expenses of $16.4 million for the 2000 first quarter
compared to the first quarter 1999 total of $15.2 million.
Relative to earned premiums, this results in an improved
30.9 percent expense ratio, compared to the 31.8 percent
ratio for the first quarter of 1999. Key variable costs,
including commissions, taxes and bureau assessments
approximated last year's first quarter relationship to
premiums. In total, other operating costs declined. When
spread over the larger premium base, this resulted in the
improved expense ratio.
MERIDIAN INSURANCE GROUP, INC. AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 6. a. Exhibits. See index to exhibits.
b. A Form 8-K was filed on February 23, 2000, related to
the authorization for the Company to repurchase up to 400,000
shares of the Company's common stock.
MERIDIAN INSURANCE GROUP, INC. AND SUBSIDIARIES
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.
MERIDIAN INSURANCE GROUP, INC.
DATE: April 26, 2000 By: /s/ Norma J. Oman
Norma J. Oman, President and
Chief Executive Officer
DATE: April 26, 2000 By: /s/ Steven R. Hazelbaker
Steven R. Hazelbaker,
Vice President, Chief Financial
Officer and Treasurer
MERIDIAN INSURANCE GROUP, INC. AND SUBSIDIARIES
FORM 10-Q
For the quarter ended March 31, 2000
Index to Exhibits
Exhibit Number
Assigned in Regulation S-K
Item 601 Description of Exhibit
(27) 27.01 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1,000
<S> <C>
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0
0
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53,193
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</TABLE>
