<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: June 30, 1995
Commission file number: 0-16332
NATIONAL INSURANCE GROUP
(Exact name of registrant as specified in its charter)
CALIFORNIA 94-3031790
(State of Incorporation) (IRS Employer Identification No.)
395 OYSTER POINT BOULEVARD, SUITE 500 94080
SOUTH SAN FRANCISCO, CA
(Address of principal executive office) (Zip Code)
(415) 872-6772
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 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 XX No
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: 4,678,729 shares
as of June 30, 1995.
<PAGE> 2
NATIONAL INSURANCE GROUP
INDEX TO FORM 10-Q
<TABLE>
PART I - FINANCIAL INFORMATION Page
<S> <C>
Item 1 - Financial Statements:
Consolidated Balance Sheets-June 30, 1995 and 1
December 31, 1994.
Consolidated Statements of Earnings for the six- 2
month period ended June 30, 1995
and 1994.
Consolidated Statements of Shareholders' Equity 3
for six months ended June 30, 1995 and 1994.
Consolidated Statements of Cash Flows for the 4
six months ended June 30, 1995 and 1994.
Notes to Consolidated Financial Statements 5
Other Financial Information 6
Item 2 - Management's Discussion and Analysis of Financial 7-10
Condition and Operating Results
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings None
Item 2 - Changes in Securities None
Item 3 - Defaults Upon Senior Securities None
Item 4 - Submission of Matters to a Vote of Security Holders 11
Item 5 - Exhibits and Reports on Form 8-K:
Reports on Form 8-K None
Exhibit 11 - Computation of Weighted
Average Shares Outstanding and Earnings 12
Per Share
</TABLE>
<PAGE> 3
NATIONAL INSURANCE GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
-------------------------------------------------------------------
(in thousands of dollars,
except share amounts) June 30, December 31,
1995 1994
-------- ------------
ASSETS: (Unaudited)
-------
<S> <C> <C>
Investments:
------------
Fixed maturities $17,020 $23,067
Equity securities 2,210 2,000
Short-term investments 17,437 13,890
------- -------
Total investments 36,667 38,957
Cash 378 155
Net Premiums and
accounts receivable 5,272 4,786
Property and equipment, net 4,730 5,918
Deferred acquisition costs 2,789 3,573
Deferred federal income taxes 1,446 298
Other assets 1,901 1,405
------- -------
Total assets $53,183 $55,092
======= =======
LIABILITIES:
------------
Reserve for losses and LAE $ 2,989 $ 3,360
Unearned premiums 6,063 7,768
Accrued expenses and other
liabilities 4,454 3,758
Drafts payable 472 374
Reserve for return premiums 6,341 2,542
------- -------
Total liabilities 20,319 17,802
------- -------
SHAREHOLDERS' EQUITY:
---------------------
Common Stock, no par value;
authorized, 15,000,000 shares;
issued and outstanding 4,678,729
in 1995 and 1994. 23,066 23,065
Retained earnings 9,798 14,225
------- -------
Total shareholders' equity 32,864 37,290
------- -------
Total liabilities and
shareholders' equity $53,183 $55,092
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements
1
<PAGE> 4
NATIONAL INSURANCE GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
------------------------------------------------------------------------
For the periods ended June 30, 1995 and 1994
(in thousands of dollars, except share amounts)
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Second Quarter Six Months
-------------- ----------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net premiums written $ 3,042 $ 4,898 $ 6,693 $ 10,303
Change in unearned premiums 888 355 1,705 801
---------- ---------- ---------- ----------
Net premiums earned 3,930 5,253 8,398 11,104
Flood inquiry fees 2,457 1,960 4,176 4,865
Tracking fees 1,232 729 2,229 1,434
Net commission income 309 197 507 259
Net investment income 506 432 1,016 916
---------- ---------- ---------- ----------
TOTAL REVENUES 8,434 8,571 16,326 18,578
---------- ---------- ---------- ----------
Loss and LAE incurred 1,677 2,163 3,550 4,752
Commissions paid to
non-affiliates 1,315 1,122 1,995 2,453
Personnel expenses 4,236 3,400 7,566 6,985
All other expenses 2,165 2,321 4,511 4,363
Non-recurring expense 5,417 1,020 5,417 1,020
---------- ---------- ---------- ----------
TOTAL EXPENSES 14,810 10,026 23,039 19,573
---------- ---------- ---------- ----------
Income(loss) before provision
for income taxes (6,376) (1,455) (6,713) (995)
Provision for income taxes (2,040) (461) (2,148) (314)
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ (4,336) $ (994) $ (4,565) $ (681)
========== ========== ========== ==========
Weighted average common and
common equivalent shares
outstanding 4,678,729 4,908,169 4,678,729 4,908,169
========== ========== ========== ==========
Per share results:
Net income (loss) per share $ (.93) $ (.20) $ (.98) $ (.14)
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 5
NATIONAL INSURANCE GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)
--------------------------------------------------------------------------------
For the six months ended June 30, 1995 and 1994
(in thousands of dollars, except share amounts)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Common Stock Total
----------- Share-
Retained holders'
Shares Amount Earnings Equity
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at
Dec. 31, 1993 5,063,729 $25,267 $16,682 $41,949
Secondary Offering 115,000 1,401 - 1,401
Stock Repurchase (500,000) (3,610) - (3,610)
Dividends paid - - (829) (829)
Net income (Loss) - - (681) (681)
Unrealized (loss), net
of deferred tax - - (68) (68)
---------- ------- ------- -------
Balance at
June 30, 1994 4,678,729 $23,058 $15,104 $38,162
========== ======= ======= =======
Balance at
Dec. 31, 1994 4,678,729 $23,066 $14,224 $37,290
Net loss - - (4,565) (4,565)
Unrealized gain, net
of deferred tax - - 139 139
---------- ------- ------- -------
Balance at
June 30, 1995 4,678,729 $23,066 $ 9,798 $32,864
========== ======= ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 6
NATIONAL INSURANCE GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<TABLE>
<CAPTION>
Increase (Decrease) in cash
--------------------------------------------------------------------------
Six months ended: June 30, 1995 June 30, 1994
(in thousands of dollars)
--------------------------------------------------------------------------
<S> <C> <C>
Net cash used in
operating activities $(2,499) $(1,440)
Net cash provided by
<used in> investing activities 2,722 3,854
Net cash provided by
financing activities - (3,038)
------- -------
Increase (decrease) in cash 223 (624)
Cash, beginning of period 155 702
------- -------
Cash, end of period $ 378 $ 78
======= =======
</TABLE>
There were no Federal or State income taxes paid during the six-months ended
June 30, 1995. Federal and State income taxes paid during the six-months ended
June 30, 1994 were $192,000.
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 7
NATIONAL INSURANCE GROUP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Financial Information
In the opinion of management, the financial information reflects all
adjustments (consisting only of normal recurring adjustments) which are
necessary to a fair presentation of financial position and results of
operations for the interim periods. The results for the six month
periods ended June 30, 1995 and June 30, 1994, are not necessarily
indicative of the results to be expected for the entire year.
2. Reserve for California Proposition 103 Liability
On June 13, 1995 the California Department of Insurance notified the
Company that its application for adjustment of its Constitutionally
mandated roll-back of insurance premiums under California Proposition
103 had been denied. Therefore, the Company has accrued $4.1 million
(in addition to the $433,000 it accrued in 1994) for the assessment as
calculated by the Department. The Company does not believe that it will
ultimately be liable for the entire assessment and it is currently
working with the Department to review the options for resolving this
issue.
These quarterly interim financial statements are unaudited.
5
<PAGE> 8
NATIONAL INSURANCE GROUP AND SUBSIDIARIES
OTHER FINANCIAL INFORMATION
Summary Consolidated Financial Information
For the Periods Ended June 30, 1995 and 1994
(In Thousands of Dollars Except Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
Second Quarter Six Months
--------------------------------- -----------------------------------
1995 1994 %Change 1995 1994 %Change
--------------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C>
Income Statement Data:
Net premiums written $ 3,042 $ 4,898 (37.9)% $ 6,693 $10,303 (35.0)%
========= ========= ========= =========
Net premiums earned $ 3,930 $ 5,253 (25.2) 8,398 11,104 (24.4)
Flood inquiry fees 2,457 1,960 25.4 4,176 4,865 (14.2)
Tracking fees 1,232 729 69.0 2,229 1,434 55.4
Net commission income 309 197 56.9 507 259 95.8
Net investment income 506 432 17.1 1,016 916 10.9
--------- --------- --------- ---------
TOTAL REVENUES 8,434 8,571 (1.6) 16,326 18,578 (12.1)
--------- --------- --------- ---------
Loss and LAE incurred 1,677 2,163 (22.5) 3,550 4,752 (25.3)
Commissions paid to
non-affiliates 1,315 1,122 17.2 1,995 2,453 (18.7)
Personnel expenses 4,236 3,400 24.6 7,566 6,985 8.3
All other expenses 2,165 2,321 (6.7) 4,511 4,363 3.4
Non-recurring expense 5,417 1,020 431.1 5,417 1,020 431.1
--------- --------- --------- ---------
TOTAL EXPENSES 14,810 10,026 47.7 23,039 19,573 17.7
--------- --------- --------- ---------
Income (loss) before provision
for income taxes (6,376) (1,455) (338.2) (6,713) (995) (574.7)
Provision for income
taxes (2,040) (461) (342.6) (2,148) (314) (584.1)
--------- --------- --------- ---------
Net income (loss) $(4,336) $ (994) (336.2) (4,565) (681) (570.3)
========= ========= ========= =========
Net income (loss) per share $ (.93) $ (.20) (365.0) $ (.98) $ (.14) (600.0)
========= ========= ========= =========
Weighted average shares
outstanding 4,678,729 4,908,169 (4.7) 4,678,729 4,908,169 (4.7)
========= ========= ========= =========
</TABLE>
6
<PAGE> 9
NATIONAL INSURANCE GROUP AND SUBSIDIARIES
Management's Discussion and Analysis of
Financial Condition and Operating Results
Item 2
Results of Operations
SECOND QUARTER OF 1995 COMPARED WITH SECOND QUARTER OF 1994:
REVENUE
Total revenue for the second quarter decreased from $8.6 million in 1994 to
$8.5 million in 1995, a decrease of $100,000 or 1.6%.
Net premiums written decreased from $4.9 million in 1994 to $3.0 million in
1995, a decrease of $1.9 million or 37.9%. The decrease in net premiums
written for the second quarter of 1995 was principally due to three factors:
(1) heavy cancellations by one of the Company's larger customers accounted for
approximately $675,000 of the decrease; (2) 1994 premiums written included
approximately $400,000 from a significant customer whose loan processing
portfolio was sold by the RTC in late 1994 and therefore, this customer did not
contribute to premiums in the second quarter of 1995, and; (3) an increase in
reserves for premium cancellations accounted for approximately $560,000 of the
decrease.
Net premiums earned for the second quarter decreased from $5.3 million in 1994
to $3.9 million in 1995, a decrease of $1.4 million or 25.2% due primarily to
the same factors which caused the decline in net premiums written during the
period.
Flood inquiry fees for the second quarter increased from $2.0 million in 1994
to $2.5 million in 1995, an increase of $500,000 or 25.4%. During the second
quarter of 1994 the Federal Reserve began a series of interest rate increases
which reduced mortgage loan origination volumes and therefore, Flood Inquiry
fee revenue. During the second quarter of 1995, interest rates declined and
loan origination volumes have generally increased. In addition, the Company
has added new customers and converted customers to its higher priced
life-of-loan product as the industry complies with recent regulations issued by
Freddie Mac.
Tracking fees for the second quarter increased from $729,000 in 1994 to
$1,232,000 in 1995, an increase of 503,000 or 69.0%. The increase is due
primarily to the addition of new outsourcing customers.
Net commission income for the second quarter of 1995 increased from $197,000 in
1994 to $309,000 in 1995, an increase of $112,000 or 56.9%. The increase was
primarily generated by placing premiums with a non-affiliated insurance company
from which the Company receives a commission.
Net investment income remained relatively unchanged at $432,000 for 1994 and
$506,000 for 1995.
7
<PAGE> 10
EXPENSES
Loss and loss expenses incurred decreased in total from $2.2 million (41.2% of
net premiums earned) for the second quarter in 1994 to $1.7 million (42.7% of
premiums earned) for the same period in 1995. Losses as a percentage of
premiums earned is consistent with normal fluctuations around the Company's
historical loss ratio.
Commissions paid to non-affiliates increased from $1.1 million (21.4% of
premiums earned) in the second quarter of 1994 to $1.3 million (33.4% of
premiums earned) in the second quarter of 1995 an increase of $193,000 or
17.2%. The increase between quarters is due primarily to the refunds received
from a non-affiliated insurance company which significantly reduced ceded
commission expense in the second quarter of 1994 when the Company cancelled a
large book of assumed premiums.
Personnel expenses increased from $3.4 million in the second quarter of 1994 to
$4.2 million in the second quarter of 1995, an increase of $800,000 or 24.6%.
The increase is due to staff additions in response to the volume increases in
the Flood Inquiry and Tracking fee based business and staff additions in the
information systems departments as the Company invests in improved information
systems technology.
All other expenses decreased from $2.3 million in the second quarter 1994 to
$2.2 million for the second quarter in 1995, a decrease of $100,000 or 6.7%.
The Company incurred expenses of a non-recurring nature in the amount of $5.4
million during the second quarter of 1995. On June 13, 1995, the California
Department of Insurance notified the Company its application for adjustment of
its Proposition 103 return premium liability had been denied and the Company
accrued an additional $4.1 million for the constitutionally mandated roll-back
of insurance premiums under the Proposition. Although the Company does not
believe that it will ultimately be liable for the entire assessment, the
Company has decided to accrue for the assessment as calculated by the
California Department of Insurance. In addition, the Company realized an
expense of $817,000 in connection with the retirement of Howard Herman who was
the Company's President and recognized an accrual of $500,000 for the
write-off of software used to provide its information services products.
As a result of the above factors, operating loss before provision for income
taxes for the second quarter of 1995 increased $4.9 million from a loss of $1.5
in the second quarter of 1994 to a loss of $6.4 million in second quarter of
1995. The net loss for the second quarter of 1994 was $1.0 million or $.20 per
share compared with a net loss of $4.3 million or $.93 for the second quarter
of 1995. The weighted average number of shares for the second quarter of 1994
and 1995 is the same as the actual number of shares outstanding, or 4,908,169
and 4,678,729, respectively.
8
<PAGE> 11
SIX MONTHS ENDED JUNE 30, 1995 COMPARED WITH THE SIX MONTHS ENDED JUNE 30,
1994:
REVENUE
Total revenue for the six-month period decreased from $18.6 million in 1994 to
$16.3 million in 1995, a decrease of $2.3 million or 12.1%.
Net premiums written decreased from $10.3 million in 1994 to $6.7 million in
1995, a decrease of $3.6 million or 35.0%. The decrease in net premiums
written for the second quarter of 1995 was principally due to three factors:
(1) heavy cancellations by one of the Company's larger customers accounted for
approximately $1.1 million of the decrease; (2) 1994 premiums written included
approximately $840,000 from a significant customer whose loan processing
portfolio was sold by the RTC in late 1994 and therefore, this customer did not
contribute to premiums in the six-month period of 1995, and; (3) an increase in
reserves for premium cancellations accounted for approximately $1.2 million of
the decrease.
Net premiums earned for the six-month period decreased from $11.1 million in
1994 to $8.4 million in 1995, a decrease of $2.7 million or 24.4% due primarily
to the same factors which caused the decline in net premiums written during the
period.
Flood inquiry fees for the six-month period decreased from $4.9 million in 1994
to $4.2 million in 1995, a decrease of $700,000 or 14.2%. During the six-month
period 1994 the Federal Reserve began a series of interest rate increases which
reduced mortgage loan origination volumes and therefore, Flood Inquiry fee
revenue during the balance of 1994 and into the first quarter of 1995. In the
second quarter of 1995, interest rates declined and therefore, loan origination
volumes Flood Inquiry revenues have generally increased. In addition, during
1995 the Company has added new customers and converted customers to its higher
priced life-of-loan product as the industry complies with recent regulations
issued by Freddie Mac.
Tracking fees for the six-month period increased from $1.4 million in 1994 to
$2.2 million in 1995, an increase of $795,000 or 55.4%. The increase is due
primarily to the addition of new outsourcing customers.
Net commission income for the six-month period 1995 increased from $259,000 in
1994 to $507,000 in 1995, an increase of $248,000 or 95.8%. The increase was
primarily generated by placing premiums with a non-affiliated insurance company
from which the Company receives a commission.
Net investment income remained relatively unchanged at $916,000 for 1994 and
$1.0 million for 1995.
9
<PAGE> 12
EXPENSES
Loss and loss expenses incurred decreased in total from $4.8 million (42.8% of
net premiums earned) for the six-month period in 1994 to $3.6 million (42.3% of
premiums earned) for the same period in 1995. Losses as a percentage of
premiums earned is consistent with normal fluctuations around the Company's
historical loss ratio.
Commissions paid to non-affiliates decreased from $2.5 million (22.1% of
premiums earned) in the six-month period 1994 to $2.0 million (23.8% of
premiums earned) in the six-month period 1995 a decrease of $500,000 or 18.7%.
The decrease between periods is consistent with normal fluctuations around the
Company's historical commission ratio.
Personnel expenses increased from $7.0 million in the six-month period of 1994
to $7.6 million in the six-month period of 1995, an increase of $600,000 or
8.3%. The increase is due to staff additions in response to the volume
increases in the Flood Inquiry and Tracking fee based business and staff
additions in the information systems departments as the Company invests in
improved information systems technology.
All other expenses increased from $4.4 million in the six-month period of 1994
to $4.5 million for the six-month period in 1995, a decrease of $100,000 or
3.4%.
The Company incurred expenses of a non-recurring nature in the amount of $5.4
million during the second quarter of 1995. On June 13, 1995, the California
Department of Insurance notified the Company its application for adjustment of
its Proposition 103 return premium liability had been denied and the Company
accrued an additional $4.1 million for the constitutionally mandated roll-back
of insurance premiums under the Proposition. Although the Company does not
believe that it will ultimately be liable for the entire assessment, the
Company has decided to accrue for the assessment as calculated by the
California Department of Insurance. In addition, the Company realized an
expense of $817,000 in connection with the retirement of Howard Herman who was
the Company's President and recognized an accrual of $500,000 for the
write-off of software used to provide its information services products.
As a result of the above factors, operating loss before provision for income
taxes for the six-month period 1995 increased $5.7 million from a loss of $1.0
in the six-month period 1994 to a loss of $6.7 million in six-month period
1995. The net loss for the six-month period in 1994 was $681,000 or $.14 per
share compared with a net loss of $4.6 million or $.98 for the six-month period
in 1995. The weighted average number of shares for the six-month period of 1994
and 1995 is the same as the actual number of shares outstanding, or 4,908,169
and 4,678,729, respectively.
10
<PAGE> 13
Item 4. Submission of Matters to a Vote of Security Holders
The Company held its annual meeting of shareholders on May 23, 1995. At the
annual meeting, the shareholders elected Mark A. Speizer, Howard L. Herman,
Kenneth Ross, and Mel Croner to serve as directors of the Company for the
ensuing year, amended the Company's 1986 Stock Option Plan, amended the 1991
Director Option Plan, and ratified the selection of Coopers & Lybrand as the
Company's independent accountants for the year ending December 31, 1995.
The vote for each of the proposals at the annual meeting were as follows:
<TABLE>
<CAPTION>
BROKER
PROPOSAL FOR AGAINST WITHHELD NON-VOTES
-------- --- ------- -------- ---------
<S> <C> <C> <C> <C>
1. Election of Directors:
Mark A. Speizer 3,695,082 - 8,600 -
Howard L. Herman 3,695,082 - 9,100 -
Kenneth Ross 3,697,082 - 7,100 -
Mel Croner 3,697,082 - 7,100 -
2. Amendment to 1986 Stock Option Plan:
3,592,678 78,872 5,600 27,032
3. Amendment to 1991 Director Option Plan:
3,345,278 323,972 7,900 27,032
4. Appointment of Coopers & Lybrand:
3,702,282 1,700 200 -
</TABLE>
No other matters were submitted to a vote of security holders of the Company at
the annual meeting or otherwise during the quarter.
11
<PAGE> 14
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.
NATIONAL INSURANCE GROUP
-----------------------------
(REGISTRANT)
/S/ MARK A. SPEIZER
----------------------- -----------------------------
DATE: AUGUST 14, 1995 (SIGNATURE)
Mark A. Speizer, Chairman
of the Board and Chief
Executive Officer
(Principal Executive Officer)
/S/ KEVIN C. EICHLER
----------------------- -----------------------------
DATE: AUGUST 14, 1995 (SIGNATURE)
Kevin C. Eichler,
Executive Vice President
and Chief Financial
Officer (Principal
Financial and Accounting
Officer)
12
<PAGE> 15
EXHIBIT INDEX
Ex 11 Computation of weighted average shares outstanding and earnings
per share
Ex 27 Financial Data Schedule
<PAGE> 1
NATIONAL INSURANCE GROUP AND SUBSIDIARIES
EXHIBIT 11
COMPUTATION OF WEIGHTED AVERAGE SHARES
OUTSTANDING AND EARNINGS PER SHARE
(in thousands of dollars except share amounts)
(Unaudited)
In both 1994 and 1995 the Company had a loss per share, for which earnings per
share is calculated based upon the number of shares outstanding.
<TABLE>
<CAPTION>
Second Quarter Six Months
-------------- ----------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Actual common shares
outstanding 4,678,729 4,908,169 4,678,729 4,908,169
--------- --------- --------- ---------
Total weighted average
shares outstanding 4,678,729 4,908,169 4,678,729 4,908,169
========= ========= ========= =========
Net income (loss) per share $ (.26) $ (.20) $ (.31) $ (.14)
========= ========= ========= =========
</TABLE>
13
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A) GREAT
PACIFIC INS. CO. QUARTERLY P&C FINANCIAL STATEMENT - STATUTORY BANK ACCOUNTING
PRINCIPAL - FOR THE PERIOD ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH (B) JUNE 30, 1995 SEC FORM 10Q
</LEGEND>
<CIK> 0000815555
<NAME> NATIONAL INSURANCE GROUP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<DEBT-HELD-FOR-SALE> 0
<DEBT-CARRYING-VALUE> 17,020
<DEBT-MARKET-VALUE> 0
<EQUITIES> 2,174
<MORTGAGE> 36
<REAL-ESTATE> 0
<TOTAL-INVEST> 36,667
<CASH> 378
<RECOVER-REINSURE> 11
<DEFERRED-ACQUISITION> 2,789
<TOTAL-ASSETS> 53,183
<POLICY-LOSSES> 2,989
<UNEARNED-PREMIUMS> 6,063
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
<COMMON> 23,066
0
0
<OTHER-SE> 9,798
<TOTAL-LIABILITY-AND-EQUITY> 53,183
8,398
<INVESTMENT-INCOME> 1,016
<INVESTMENT-GAINS> 0
<OTHER-INCOME> 6,912
<BENEFITS> 3,550
<UNDERWRITING-AMORTIZATION> 5,393
<UNDERWRITING-OTHER> 14,096
<INCOME-PRETAX> (6,713)
<INCOME-TAX> (2,148)
<INCOME-CONTINUING> (4,565)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,565)
<EPS-PRIMARY> (0.98)
<EPS-DILUTED> (0.98)
<RESERVE-OPEN> 3,155
<PROVISION-CURRENT> 3,011
<PROVISION-PRIOR> (125)
<PAYMENTS-CURRENT> 1,615
<PAYMENTS-PRIOR> 1,642
<RESERVE-CLOSE> 2,784
<CUMULATIVE-DEFICIENCY> (125)
</TABLE>
