UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 1998
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 0-16267
WALSHIRE ASSURANCE COMPANY
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2023240
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification Number)
3350 Whiteford Road, P. O. Box 3849, York, PA 17402-0138
(Address of principal executive offices) (Zip code)
(717)757-0000
(Registrant s telephone number, including area code)
(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.
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.
Class: Outstanding at October 31, 1998:
Common stock - $.01 Par Value 4,493,778 shares
WALSHIRE ASSURANCE COMPANY
AND SUBSIDIARIES
INDEX
PAGE
NUMBER
Part I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of September 30, 1998
(unaudited) and December 31, 1997. . . . . . . . . . . 2
Consolidated Statements of Income for the three
months ended September 30, 1998 and 1997 (unaudited) . 4
Consolidated Statements of Income for the nine months
months ended September 30, 1998 and 1997 (unaudited) . 5
Consolidated Statements of Cash Flows for the nine
months ended September 30, 1998 and 1997 (unaudited) . 6
Notes to Consolidated Financial Statements
(unaudited) . . . . . . . . . . . . . . . . . . . . . 7
Item 2. Management s Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . 8
Part II OTHER INFORMATION . . . . . . . . . . . . . . . . . . 11
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . 11
Item 2. Changes in Securities . . . . . . . . . . . . . . . . 11
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . 11
Item 4. Submission of Matters to Vote of Security Holders. . . 11
Item 5. Other Information . . . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 11
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1
WALSHIRE ASSURANCE COMPANY
AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands,
except per share data)
September 30, December 31,
Assets 1998 1997
(Unaudited)
Investments:
Held to maturity, at amortized cost:
Fixed maturities (fair value $15,234 and
$17,754) . . . . . . . . . . . . . . . . $ 14,455 $ 17,228
Available for sale, at fair value:
Fixed maturities (cost $45,776 and
$37,722) . . . . . . . . . . . . . . . . 46,609 38,182
Equity securities (cost $8,523 and $8,268). 7,401 8,205
Short-term investments . . . . . . . . . . . . 2,902 7,531
Other investments. . . . . . . . . . . . . . . 1,171 2,656
Total investments . . . . . . . . . . . . . 72,538 73,802
Cash. . . . . . . . . . . . . . . . . . . . . . . 302 254
Accrued investment income receivable. . . . . . . 855 800
Amounts receivable from reinsurers. . . . . . . . 1,210 3,698
Amounts receivable from reinsured company . . . . 521 542
Agents balances (net of allowance for doubtful
accounts of $120). . . . . . . . . . . . . . . 6,397 7,411
Installment premiums receivable . . . . . . . . . 5,586 7,681
Agents balances and installment premiums
receivable from related parties. . . . . . . . 1,351 1,897
Premium finance receivables (net of unearned
finance charges and allowance for credit
losses of $102 and $84). . . . . . . . . . . . 3,443 4,283
Reinsurance receivable. . . . . . . . . . . . . . 25,779 24,370
Deferred acquisition costs. . . . . . . . . . . . 3,879 4,778
Property and equipment, (net of accumulated
depreciation of $2,378 and $2,194) . . . . . . 2,475 3,462
Other assets. . . . . . . . . . . . . . . . . . . 3,820 1,464
Total assets. . . . . . . . . . . . . . . . $128,156 $134,442
See accompanying notes to consolidated financial statements.
2
WALSHIRE ASSURANCE COMPANY
AND SUBSIDIARIES
Consolidated Balance Sheets, Continued
(In thousands,
except per share data)
September 30, December 31,
Liabilities and Shareholders Equity 1998 1997
(Unaudited)
Liabilities:
Unpaid claims and claim settlement expenses. $ 55,483 $ 48,964
Unearned premiums. . . . . . . . . . . . . . 22,183 27,384
Short-term notes payable . . . . . . . . . . 5,583 5,015
Long-term notes payable. . . . . . . . . . . 9 558
Deposits by insureds . . . . . . . . . . . . 1,933 2,445
Commissions payable to agents. . . . . . . . 1,188 1,442
Commissions payable to related parties . . . 118 163
Other liabilities. . . . . . . . . . . . . . _ 1,410 980
Total liabilities . . . . . . . . . . . . 87,907 86,951
Shareholders equity:
Preferred stock, par value $.01 per share;
2,000 shares authorized; 128 and 123
shares issued and outstanding . . . . . . 1 1
Common stock, par value $.01 per share;
10,000 shares authorized; 4,692 and
4,710 shares issued; 4,443 and 4,710
shares outstanding. . . . . . . . . . . . 47 47
Additional paid-in capital . . . . . . . . . 38,827 38,812
Unrealized gain (loss) on investments
available for sale (net of deferred taxes
of $(98) and $135). . . . . . . . . . . . ( 191) 262
Retained earnings. . . . . . . . . . . . . . 3,549 8,369
42,233 47,491
Treasury stock (249 shares in 1998). . . . . ( 1,984) -___
Shareholders' equity. . . . . . . . . . . 40,249 47,491
Total liabilities and shareholders equity . $ 128,156 $134,442
See accompanying notes to consolidated financial statements.
3
WALSHIRE ASSURANCE COMPANY
AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands,
except per share data)
Three Months Ended
September 30,_____
1998 1997
(Unaudited)(Unaudited)
Revenues:
Premiums earned . . . . . . . . . . . . . . . . . $ 12,230 $ 16,464
Premiums ceded. . . . . . . . . . . . . . . . . . ( 2,131) ( 7,091)
Net premiums earned . . . . . . . . . . . . . . . 10,099 9,373
Net investment income . . . . . . . . . . . . . . 1,090 1,110
Net realized gains on investments . . . . . . . . 208 842
Other . . . . . . . . . . . . . . . . . . . . . . 156 261
Total revenues . . . . . . . . . . . . . . . . 11,553 11,586
Expenses:
Claims and claim settlement expenses. . . . . . . 13,207 12,120
Reinsurance recoveries. . . . . . . . . . . . . . ( 4,043) ( 5,484)
Net claims and claim settlement expenses. . . . . 9,164 6,636
Amortization of deferred acquisition costs. . . . 1,687 1,257
Underwriting, general and administrative
expenses. . . . . . . . . . . . . . . . . . . . 2,026 1,889
Dividends to policyholders. . . . . . . . . . . . - 213
Interest. . . . . . . . . . . . . . . . . . . . . 124 178
Total expenses . . . . . . . . . . . . . . . . 13,001 10,173
Income (loss) before income taxes. . . . . . . . . . ( 1,448) 1,413
Provision for income taxes (benefit) . . . . . . . . ( 434) 366
Net income (loss). . . . . . . . . . . . . . . . . . ( 1,014) 1,047
Dividends on convertible preferred stock . . . . . . 104 104
Net income (loss) applicable to common stock . . . . $( 1,118) $ 943
Net income (loss) per common share:
Basic and diluted:
Net income (loss). . . . . . . . . . . . . . . $( .25) $ .20
Weighted average shares outstanding. . . . . . 4,443 4,680
See accompanying notes to consolidated financial statements.
4
WALSHIRE ASSURANCE COMPANY
AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands,
except per share data)
Nine Months Ended
September 30, _
1998 1997
(Unaudited)(Unaudited)
Revenues:
Premiums earned . . . . . . . . . . . . . . . . . $ 38,887 $ 48,014
Premiums ceded. . . . . . . . . . . . . . . . . . ( 6,679) (15,316)
Net premiums earned . . . . . . . . . . . . . . . 32,208 32,698
Net investment income . . . . . . . . . . . . . . 3,251 3,161
Net realized gains on investments . . . . . . . . 748 2,235
Other . . . . . . . . . . . . . . . . . . . . . . 371 593
Total revenues . . . . . . . . . . . . . . . . 36,578 38,687
Expenses:
Claims and claim settlement expenses. . . . . . . 39,998 34,812
Reinsurance recoveries. . . . . . . . . . . . . . ( 8,693) (10,483)
Net claims and claim settlement expenses. . . . . 31,305 24,329
Amortization of deferred acquisition costs. . . . 5,678 4,585
Underwriting, general and administrative
expenses. . . . . . . . . . . . . . . . . . . . 5,195 6,246
Dividends to policyholders. . . . . . . . . . . . - 213
Interest. . . . . . . . . . . . . . . . . . . . . 324 543
Total expenses . . . . . . . . . . . . . . . . 42,502 35,916
Income (loss) before income taxes. . . . . . . . . . ( 5,924) 2,771
Provision for income taxes (benefit) . . . . . . . . ( 2,015) 600
Net income (loss). . . . . . . . . . . . . . . . . . ( 3,909) 2,171
Dividends on convertible preferred stock . . . . . . 316 312
Net income (loss) applicable to common stock . . . . $( 4,225) $ 1,859
Net income (loss) per common share:
Basic and diluted:
Net income (loss). . . . . . . . . . . . . . . $( .93) $ .40
Weighted average shares outstanding. . . . . . 4,561 4,670
See accompanying notes to consolidated financial statements.
5
WALSHIRE ASSURANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
except per share data)
Nine Months Ended
September 30, ____
1998 1997
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income (loss). . . . . . . . . . . . . . . . . $( 3,909) $ 2,171
Adjustments to reconcile net income to net
cash provided by operating activities
Net realized gains on investments. . . . . . . ( 748) ( 2,235)
Decrease (increase) in assets:
Accrued investment income receivable. . . . . ( 55) 18
Amounts receivable from reinsurers. . . . . . 2,488 1,837
Amounts receivable from reinsured company . . 21 17
Agents balances and installment premiums
receivable . . . . . . . . . . . . . . . . . 3,109 2,795
Agents balances and installment premiums
receivable from related parties. . . . . . . 546 1,050
Premium finance receivables . . . . . . . . . 840 289
Reinsurance receivables . . . . . . . . . . . ( 1,409) ( 7,865)
Deferred acquisition costs. . . . . . . . . . 899 561
Other, net. . . . . . . . . . . . . . . . . . ( 1,970) 204
(Decrease) increase in liabilities:
Unpaid claims, claim settlement expenses. . . 6,519 6,016
Unearned premiums . . . . . . . . . . . . . . ( 5,201) ( 5,343)
Amounts payable to reinsurers . . . . . . . . - 3,902
Deposits by insureds. . . . . . . . . . . . . ( 512) ( 196)
Other, net. . . . . . . . . . . . . . . . . . 156 ( 38)
Net cash provided by operating activities. . . . . 774 3,183
Cash flows from investing activities:
Purchase of investments:
Held to maturity . . . . . . . . . . . . . . . . --- ( 2,338)
Available for sale . . . . . . . . . . . . . . . (24,075) (27,784)
Sale of investments:
Available for sale . . . . . . . . . . . . . . . 14,957 24,273
Maturity of investments. . . . . . . . . . . . . . 4,179 4,010
Net (purchase) sale of short term and other
investments. . . . . . . . . . . . . . . . . . . 6,207 1,801
Purchase of property and equipment . . . . . . . . ( 73) ( 216)
Sale of property and equipment . . . . . . . . . . 672 616
Other, net . . . . . . . . . . . . . . . . . . . . 267 ( 137)
Net cash provided by investing activities. . . . 2,134 225
Cash flows from financing activities:
Cash dividends paid. . . . . . . . . . . . . . . . ( 909) ( 1,223)
Issuance of common stock . . . . . . . . . . . . . 14 148
Purchase of treasury stock . . . . . . . . . . . . ( 1,984) -
Proceeds from notes payable . . . . . . . . . . . 608 -
Payment of notes payable . . . . . . . . . . . . . ( 589) ( 2,476)
Net cash (used in) financing activities. . . . . ( 2,860) ( 3,551)
Net increase (decrease) in cash . . . . . . . . . . 48 ( 143)
Cash at beginning of the period. . . . . . . . . . . 254 637
Cash at end of the period. . . . . . . . . . . . . . $ 302 $ 494
See accompanying notes to consolidated financial statements.
6
WALSHIRE ASSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. The consolidated balance sheet as of September 30, 1998, the consolidated
statements of income for the three and nine months ended September 30, 1998 and
1997, and the consolidated statements of cash flows for the nine months then
ended have been prepared by Walshire Assurance Company ( the Company ) without
audit. In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flows at September 30, 1998 and for all periods
presented, have been made.
2. Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these unaudited consolidated financial
statements be read in conjunction with the financial statements and notes
thereto
included in the Company s 1997 Annual Report. The results of operations for the
period ended September 30, 1998 are not necessarily indicative of the results of
operations for the full year.
3. Basic net income per share is computed by dividing net income applicable for
common stock by the weighted average number of common shares outstanding during
the year. Diluted earnings per share includes the additional shares that would
have been outstanding had the 6 1/2% Convertible Preferred Stock been converted
to common, if dilutive, as well as the diluted effect of the Company's stock
option and stock purchase plans.
4. Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting
Comprehensive Income", was issued by the Financial Accounting Standards Board
(FASB) in 1997. As defined in SFAS 130, comprehensive income is composed of net
income, as well as other revenues, expenses, gains and losses that are currently
excluded from net income, but are accounted for separately in the shareholders'
equity section of the balance sheet. SFAS 130 requires that all items of
comprehensive income be reported in a financial statement. Total comprehensive
income (loss) is as follows:
(In thousands)
Nine Months Ended
September 30, _____
1998 1997
(Unaudited) (Unaudited)
Net income (loss) . . . . . . . . . . . . . . . . . $(3,909) 2,171
Other comprehensive income (loss):
Unrealized gain (loss) on securities, net of tax:
Unrealized holding gains arising during period. 41 1,904
Less: reclassification adjustment for gains
realized in net income. . . . . . . . . . . . 494 1,475
Net unrealized gain (loss). . . . . . . . . . . ( 453) 429
Other comprehensive income (loss) . . . . . . . . . ( 453) 429
Total comprehensive income (loss) . . . . . . . . . $(4,362) $ 2,600
5. Forward Looking Statements. The information contained in this Quarterly
Report contains forward looking statements (as such term is defined in the
Securities Exchange Act of 1934 and the regulations thereunder), including
without limitation, statements as to the allowances for doubtful accounts and
7
credit losses, reserves for unpaid claims and claim settlement expenses, the
classification of the Company's investment portfolio and other statements as to
management's beliefs, expectations or opinions. Such forward looking statements
are subject to risks and uncertainties and may be affected by various factors
which may cause actual results to differ materially from those in the forward
looking statements. Certain of these risks, uncertainties and other factors are
discussed in this Quarterly Report or in the Company's Annual Report on
Form 10-K
for the year ended December 31, 1997, a copy of which may be obtained from the
Company upon request and without charge (except for the exhibits thereto).
6. Investment Considerations. In analyzing whether to make, or to continue,
an investment in the Company, investors should consider, among other factors,
certain investment considerations more particularly described in the Company's
Annual Report on Form 10-K for the year ended December 31, 1997.
7. Subsequent Event. On August 12, 1998, the Company announced that it had
entered into a definitive Merger Agreement, pursuant to which Kingsway Financial
Services Inc. will acquire all outstanding shares of Walshire common stock for
$8.25 per share in cash and all outstanding shares of Walshire preferred stock
for $50.00 per share, plus all accrued and unpaid dividends through the
Effective
Date of the Merger (an amount equal to the redemption price for such shares).
The closing of the transaction is subject to obtaining all necessary shareholder
and regulatory approvals and the satisfaction of certain other closing
conditions.
Item 2. Management s Discussion and Analysis of Financial Condition and
Results of Operations
Revenues for the three month period ended September 30, 1998 decreased $33,000
or .3%, from revenues for the three month period ended September 30, 1997. This
decrease was primarily the result of a decrease in net realized gains on
investments, offset, in part, by an increase in net premiums earned. Net
premiums
earned in the third quarter of 1998 increased $.7 million, or 7.7%, over
premiums earned in the same period in 1997. The increase in net premiums earned
is a result of the Company ceding less premiums to reinsurers in the current
year
than it did in 1997. Direct premiums written decreased $1.4 million, or 13.0%,
in the three month period ended September 30, 1998 when compared to the same
period in 1997. The following table sets forth the direct premiums written by
the Company for the three month periods ended September 30, 1998 and 1997 by
line
of business.
(In thousands)
Three months ended September 30,
1998 1997 %Change
Auto liability $3,677 $ 4,282 (14.1%)
Auto physical damage 2,759 3,192 (13.6%)
Homeowners 654 793 (17.5%)
Inland marine 637 606 5.1%
Workers compensation 541 858 (36.9%)
Other 1,267 1,223 3.6%
Total $9,535 $10,954 (13.0%)
Expenses for the three month period ended September 30, 1998 increased $2.8
million, or 27.8%, over expenses for the three month period ended September 30,
1997. The increase was primarily the result of an increase in net claims and
claim settlement expenses and amortization of deferred acquisition costs.
8
The increase in net claims and claim settlement expenses was the result of an
increase in net premiums earned as well as an increase in the statutory loss
ratio from 72.1% in 1997 to 92.1% in 1998. The increase in the loss ratio was
due primarily to adverse development in prior years loss reserves of $.8 million
(predominantly workers' compensation) and an increase in the loss ratio of the
Company's auto liability business. The increase in the amortization of deferred
acquisition costs was primarily the result of the increase in net premiums
earned
and a decrease in ceding commission income. The statutory combined ratio for the
three month period ended September 30, 1998 was 130.5%, an increase from 108.1%
for the three month period ended September 30, 1997.
Revenues for the nine month period ended September 30, 1998 decreased $2.1
million, or 5.5%, from revenues for the nine month period ended September 30,
1997. This decrease was primarily the result of a decrease in net realized
gains
on investments. Even though premiums earned decreased by $9.1 million, net
premiums earned in the first nine months of 1998 decreased only $.5 million, or
1.5%, from premiums earned in the same period in 1997. The minor decrease in
net
premiums earned is a result of the Company ceding less premiums to reinsurers in
the current year than it did in 1997. Direct premiums written decreased $8.4
million, or 20.0%, in the nine month period ended September 30, 1998 when
compared to the same period in 1997. The following table sets forth the direct
premiums written by the Company for the nine month periods ended September 30,
1998 and 1997 by line of business.
(In thousands)
Nine months ended September 30,
1998 1997 %Change
Auto liability $14,950 $18,540 (19.4%)
Auto physical damage 9,369 12,727 (26.4%)
Inland marine 2,148 2,365 ( 9.2%)
Homeowners 1,844 2,132 (13.5%)
Workers compensation 1,708 2,813 (39.3%)
Other 3,643 3,488 4.4%
Total $33,662 $42,065 (20.0%)
Expenses for the nine month period ended September 30, 1998 increased $6.6
million, or 18.3%, over expenses for the nine month period ended September 30,
1997. The increase was primarily the result of increases in net claims and
claim
settlement expenses and amortization of deferred acquisition costs, offset, in
part, by a decrease in underwriting, general and administrative expenses.
Increases in net claims and claim settlement expenses were the result of an
increase in the statutory loss ratio from 75.8% in 1997 to 98.4.% in 1998. The
increase in the loss ratio was due primarily to adverse development in prior
year
auto liability and workers' compensation loss reserves totaling $6.2 million as
well as a higher loss ratio in the Company's auto liability business. The
increase in the amortization of deferred acquisition costs was primarily the
result of decreases in ceding commission income. The decrease in underwriting,
general and administrative expenses were primarily the result of the reduction
in operating expenses due to decreases in direct premium written. The statutory
combined ratio for the nine month period ended September 30, 1998 was 131.8%, an
increase from 110.1% for the nine month period ended September 30, 1997.
9
Liquidity and Capital Resources
Historically, the Company has generated funds sufficient to support its
operations and has maintained a high degree of liquidity in its investment
portfolio. The primary sources of funds to meet the demands of claim
settlements
and operating expenses are premiums, ceding commissions, investment income and
existing lines of credit. The Company s funds generally are invested in
securities with maturities intended to provide adequate funds to pay claims and
expenses without the forced sale of investments. The Company believes that its
current cash and short term investments, together with funds generated from
operations, will be sufficient to meet its operating and capital requirements
for
the foreseeable future.
The Year 2000
Many computer systems in use today were designed and developed using two digits,
rather than four, to specify the year. As a result, such systems will recognize
the year 2000 as "00". This could cause many computer applications to fail
completely or to create erroneous results unless corrective measures are taken.
The Company utilizes software and related computer technologies essential to its
operations that will be affected by the Year 2000 issue. The Company also
relies
on certain critical non-information technology systems ("non-IT systems"), such
as electricity, telephones, facsimile machines, heating and air-conditioning and
fire protection systems. Any disruption in the operation of the IT and non-IT
systems of either the Company or any of its critical customers, vendors or
suppliers could have a material adverse effect on the Company's business,
results
of operations or financial condition.
The Company has completed plans to ensure year 2000 compliance and started
conversions of applications beginning in 1995. The Company has also completed
much of the work necessary to make its computer systems Year 2000 compliant.
These modifications and replacements are expected to be completed by mid year
1999. The additional expense associated with these actions cannot presently be
determined, but it is not anticipated to be material.
Despite all the procedures the Company has in place, there can be no guarantee
that its systems or the systems of other companies on which the Company's
business relies will be timely converted, or that failure to convert by another
company or a conversion that is incompatible with the Company's systems, will
not have a materially adverse effect on the Company and its operations.
10
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 Matter to a Vote of Security Holders
None
Item 5. Other Information
Pursuant to recent amendments to the proxy rules under the
Securities Exchange Act of 1934, as amended, (the "Exchange Act"),
the Company's stockholders are notified that the deadline for
providing the Company timely notice of any stockholder proposal to
be submitted outside of the Rule 14a-8 process for consideration at
the Company's 1999 Annual Meeting of Stockholders (the "Annual
Meeting") will be March 12, 1999. As to all such matters which the
Company does not have notice on or prior to March 12, 1999,
discretionary authority shall be granted to the persons designated
in the Company's proxy related to the Meeting to vote on such
proposal. This change in procedure does not affect the Rule 14a-8
requirements applicable to inclusion of stockholder proposal in the
Company's proxy materials related to the Meeting. A stockholder
proposal regarding the Meeting must be submitted to the Company at
its office located at 3350 Whiteford Road, York, PA 17402 by
December 28, 1998, to receive consideration for inclusion in the
Company's 1999 proxy materials. Any such proposal must also comply
with the proxy rules under the Exchange Act, including Rule 14a-8.
Item 6. Exhibits and Reports on Form 8-K
Exhibits
(a) Exhibit 27.1 Financial data schedule
Reports on Form 8-K
None
11
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WALSHIRE ASSURANCE COMPANY
(Registrant)
DATE: November 13, 1998 /s/ Kenneth R. Taylor
Kenneth R. Taylor
President and Chief
Executive Officer
DATE: November 13, 1998 /s/ Gary J. Orndorff
Gary J. Orndorff
Vice President/Treasurer
and Chief Financial Officer
12
<PAGE>
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WALSHIRE ASSURANCE COMPANY
(Registrant)
DATE: November 13, 1998 __________________________
Kenneth R. Taylor
President and Chief
Executive Officer
DATE: November 13, 1998 __________________________
Gary J. Orndorff
Vice President/Treasurer
and Chief Financial Officer
12
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<ARTICLE> 7
<S> <C>
<PERIOD-TYPE> 09-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
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