FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended June 30, 1998
Commission file number 33-27665
NYMAGIC, INC.
(Exact name of registrant as specified in its charter)
New York 13-3534162
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
330 Madison Avenue, New York, New York
10017 (Address of principal executive offices) (zip
code)
(212) 551-0600
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal
years, 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 practicable date.
On July 1, 1998 there were 9,682,092 shares of common stock, $1.00 par value
outstanding.
<PAGE>
NYMAGIC, INC.
INDEX
Part I. FINANCIAL INFORMATION: PAGE NO.
Consolidated Balance Sheets
June 30, 1998 and December 31, 1997 2
Consolidated Statements of Income
June 30, 1998 and June 30, 1997 3
Consolidated Statements of Cash Flows
June 30, 1998 and June 30, 1997 5
Notes to Consolidated Financial Statements 6
Management's Discussion And Analysis of Financial
Condition and Results of Operations 8
Part II. OTHER INFORMATION 12
1
<PAGE>
NYMAGIC, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30, December 31,
1998 1997
---- ----
ASSETS
Investments:
Fixed maturities available for sale,
at fair value (amortized cost
$332,987,736 and $352,696,745) $340,690,587 $361,249,758
Equity securities at fair value (cost
$53,461,097 and $47,925,798) 68,039,142 59,258,608
Short-term investments 41,805,497 18,082,540
------------- -------------
Total investments 450,535,226 438,590,906
------------ ------------
Cash 1,712,544 1,042,310
Accrued investment income 6,179,638 6,322,370
Premiums and other receivables, net 33,307,755 40,635,164
Reinsurance receivables 185,451,842 175,657,952
Deferred policy acquisition costs 4,751,796 5,567,488
Prepaid reinsurance premiums 16,653,287 24,414,620
Deferred income taxes 7,575,600 8,436,768
Property, improvements and equipment, net 2,615,566 2,365,653
Other assets 5,646,931 4,869,609
--------- ---------------
Total assets $714,430,185 $707,902,840
============ ============
LIABILITIES & SHAREHOLDERS' EQUITY
Unpaid losses and loss adjustment expenses $404,282,320 $388,401,548
Reserve for unearned premiums 44,651,812 55,188,281
Ceded reinsurance payable 17,152,573 27,307,129
Notes payable 19,958,413 22,458,413
Other liabilities 10,254,370 7,062,095
Dividends payable 968,209 966,031
------- -----------
Total liabilities 497,267,697 501,383,497
------------- -----------
Common stock 15,014,492 14,991,992
Paid-in capital 27,965,504 27,529,877
Accumulated other comprehensive income 14,521,672 12,931,785
Retained earnings 202,163,050 193,547,346
----------- -------------
259,664,718 249,001,000
Treasury stock, at cost, 5,332,400 and
5,331,686 shares (42,502,230) (42,481,657)
----------------- ----------------
Total shareholders' equity 217,162,488 206,519,343
------------- -------------
Total liabilities and shareholders'equity$714,430,185 $707,902,840
============ ============
The accompanying notes are an integral part of these consolidated financial
statements.
2
NYMAGIC, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Six months ended
June 30,
1998 1997
---- ----
Revenues:
Net premiums earned $52,810,800 $41,769,085
Net investment income 10,478,373 10,680,660
Realized investment gains 6,937,630 3,523,370
Commission and other incom 723,893 165,240
----------------- ---------------
Total revenues 70,950,696 56,138,355
------------ ------------
Expenses:
Losses and loss adjustment expenses incurred 39,749,740 22,663,291
Policy acquisition expenses 5,462,701 9,140,748
General and administrative expenses 11,351,202 8,324,890
Interest expense 731,362 599,823
----------- ------------
Total expenses 57,295,005 40,728,752
----------- ----------
Income before income taxes 13,655,691 15,409,603
---------- ----------
Income taxes:
Current 3,081,546 4,053,075
Deferred 22,892 (229,998)
---------- --------------
Total income taxes 3,104,438 3,823,077
----------- ------------
Net income $ 10,551,253 $11,586,526
============ ===========
Weighted average shares of common
stock outstanding-basic 9,673,130 10,049,809
Basic earnings per share $ 1.09 $ 1.15
================ ==============
Weighted average shares of common
stock outstanding-diluted 9,702,965 10,071,332
Diluted earnings per share $ 1.09 $ 1.15
================ ==============
Dividends declared per share $ .20 $ .20
================= ===============
The accompanying notes are an integral part of these consolidated financial
statements.
3
NYMAGIC, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three months ended
June 30,
1998 1997
---- ----
Revenues:
Net premiums earned $25,309,308 $20,360,067
Net investment income 5,094,010 5,304,363
Realized investment gains 3,207,066 1,513,092
Commission and other income 383,111 73,430
---------------- ----------------
Total revenues 33,993,495 27,250,952
------------ ------------
Expenses:
Losses and loss adjustment expenses incurred 18,870,085 10,615,193
Policy acquisition expenses 2,588,587 4,475,362
General and administrative expenses 5,477,940 4,289,953
Interest expense 353,551 341,696
------------- ------------
Total expenses 27,290,163 19,722,204
------------ ----------
Income before income taxes 6,703,332 7,528,748
------------- -----------
Income taxes:
Current 1,374,158 1,837,685
Deferred 154,396 (24,367)
-------------- -----------
Total income taxes 1,528,554 1,813,318
------------ -----------
Net income $ 5,174,778 $5,715,430
============ ==========
Weighted average shares of common
stock outstanding-basic 9,677,114 9,957,590
Basic earnings per share $ .53 $ .57
=============== =============
Weighted average shares of common
stock outstanding-diluted 9,707,742 9,979,113
Diluted earnings per share $ .53 $ .57
=============== =============
Dividends declared per share $ .10 $ .10
================ ==============
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
NYMAGIC, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six months ended
June 30,
1998 1997
---- ----
Cash flows from operating activities:
Net income 10,551,253 $ 11,586,526
------------ -------------
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for deferred taxes 22,892 (229,998)
Realized investment gains (6,937,630) (3,523,370)
Net bond amortization 1,080,306 850,420
Depreciation and other, net 309,730 255,723
Changes in:
Premiums and other receivables 7,327,409 21,252,857
Reinsurance receivables (9,793,890) 18,227,380
Ceded reinsurance payable (10,154,556) (2,572,910)
Accrued investment income 142,732 130,486
Deferred policy acquisition costs 815,692 2,072,498
Prepaid reinsurance premiums 7,761,333 2,401,775
Other assets (777,322) (1,645,406)
Unpaid losses and loss adjustment expenses 15,880,772 (18,511,687)
Reserve for unearned premiums (10,536,469) (12,780,682)
Other liabilities 3,192,275 (1,569,418)
Other 33,090 ----
------ ---------
Total adjustments (1,633,636) 4,357,668
----------- --------------
Net cash provided by operating activities 8,917,617 15,944,194
--------- -------------
Cash flows from investing activities:
Fixed maturities acquired (47,651,361) (134,252,424)
Equity securities acquired (24,790,478) (23,986,060)
Fixed maturities matured 16,417,078 8,439,232
Fixed maturities sold 50,747,197 120,185,360
Equity securities sold 25,307,468 24,724,881
Net purchase of short-term investments (23,721,827) (3,750,555)
Acquisition of property & equipment, net (559,643) (600,150)
-------------- -------------
Net cash used in investing activities (4,251,566) (9,239,716)
------------- ------------
Cash flows from financing activities:
Proceeds from stock issuance 458,127 710,369
Cash dividends paid to stockholders (1,933,371) (2,028,610)
Net repurchase of common stock (20,573) (10,315,804)
Proceeds from borrowings 5,000,000 9,520,000
Loan principal repayments (7,500,000) (5,000,000)
------------- -------------
Net cash used in financing activities (3,995,817) (7,114,045)
------------- -------------
Net increase (decrease) in cash 670,234 (409,567)
Cash at beginning of period 1,042,310 701,086
------------ ---------------
Cash at end of period $ 1,712,544 $ 291,519
=========== ==============
The accompanying notes are an integral part of these consolidated financial
statements.
5
NYMAGIC, INC.
Notes to Consolidated financial Statements
1) The interim consolidated financial statements are unaudited but, in the
opinion of management, reflect all material adjustments necessary for a
fair presentation of results for such periods. Adjustments to financial
statements consist of normal recurring items. The results of operations
for any interim period are not necessarily indicative of results for the
full year. These financial statements should be read in conjunction with
the financial statements and notes thereto contained in the Company'
Annual Report on Form 10-K for the year ended December 31, 1997.
2) Statement of Financial Accounting Standard No. 130, "Reporting
Comprehensive Income", ("SFAS 130"), became effective for fiscal years
beginning after December 15, 1997. SFAS 130 establishes standards for the
reporting and presentation of comprehensive income and its components.
Comprehensive income encompasses all changes in shareholders' equity,
except for those arising from transactions with owners, and includes net
income, net unrealized capital gains or losses on securities and foreign
currency translation adjustments.
The Company's comparative comprehensive income follows:
Six months ended Three months ended
June 30, June 30,
---------------- -----------------
1998 1997 1998 1997
---- ---- ---- ----
(in thousands)
Net income $10,551 $11,587 $5,175 $5,716
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities
($2,395, $2,586 and ($1,639), $9,221 pretax) 1,557 1,681 (1,065) 5,994
Foreign currency translation adjustment 33 --- --- ---
------ ----- ------ -----
Other comprehensive income (loss) 1,590 1,681 (1,065) 5,994
------ ----- ------- -----
Total comprehensive income $12,141 $13,268 $4,110 $11,710
======= ======= ====== =======
Amounts reported in net income and other comprehensive income:
Six months ended
June 30,
1998 1997
(in thousands)
Net change in unrealized gain 1,557 $1,681
Net change in foreign currency translation adjustment 33 ---
Realized gains, net of tax 4,509 2,290
---------- -----------
Holding gains arising during period, net of tax 6,099 3,971
Reclassification adjustment for realized gains, net of tax
recorded in income statement (4,509) (2,290)
---------- ----------
Other comprehensive income for the period,
net of reclassification adjustment $1,590 $1,681
========= =========
6
NYMAGIC, INC.
Notes to Consolidated financial Statements
Earnings per share data for 1997 have been restated to reflect the changes
required by Statement of Financial Accounting Standards No. 128, "Earnings per
Share", ("SFAS 128"). SFAS 128 requires presentation of both basic earnings per
share and diluted earnings per share in the financial statements.
Statement of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities ", ("SFAS 133") was issued by the
Financial Accounting Standards Board in June 1998. SFAS 133 requires
derivatives to be recorded on the balance sheet at fair value. Derivatives
not considered as hedges must be recorded at fair value with adjustments
recorded in the income statement. For derivatives that qualify as a hedge,
changes in the fair value of the derivative are offset against changes in
the fair value of the hedged assets or liabilities and be recognized in the
income statement or in other comprehensive income depending on the nature
of the hedge. SFAS 133 is effective for years beginning after June 15,
1999.
The Company uses derivatives, primarily interest rate swaps, for hedging
purposes as part of its interest rate management. The Company has not yet
determined the effect of SFAS 133 on its financial statements.
7
NYMAGIC, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Net premiums earned were $25,309,308 in the second quarter ended June 30,
1998 or an increase of approximately 24% when compared to the second quarter of
1997. For the six months ended June 30, 1998, net premiums earned increased 26%
when compared to the prior year's period. The increase in premiums earned
resulted mainly from two transactions involving the assumption of premiums. The
first transaction occurred in the first quarter of 1998 included a one time
assumption of premiums, of approximately $14,200,000 of ocean marine business,
that emanated from the Company's Lloyd's of London syndicate which commenced
operations in the current year. The second transaction occurred in the second
quarter of 1998 and also included a one time assumption of net premiums, of
approximately $10,500,000, of miscellaneous casualty business. The domestic
insurance companies recorded reductions in premiums earned in all major lines of
business. A 6% decline in ocean marine premiums earned was recorded as
competition remains intense and adversely affected premium rates. Aviation
premiums earned decreased by 73% in 1998 mainly due to the effects of purchasing
additional reinsurance protection. This is consistent with the Company's
strategy of minimizing risk, as the underwriting climate for gross premiums
remains soft. The other liability line decreased 22% as a result of the soft
casualty market which allowed for a decline in premium production.
Losses and loss adjustment expenses incurred as a percentage of net premiums
earned were 74.6% for the three months ended June 30, 1998 as compared to 52.1%
for the second quarter of 1997. For the six months ended June 30, 1998, such
ratio was 75.3% as compared to 54.3% for the same period of the prior year. The
loss ratio for the two assumption of premiums in 1998 was approximately 100% and
had the effect of increasing this ratio significantly. Absent such business, the
loss ratios would have been approximately 56.3% and 53.5% for the second quarter
and six months ended June 30 1998, respectively. The domestic insurance
companies recorded favorable net loss experience in the Company's core ocean
marine line largely due to lower retention levels per loss. This benefit was
offset by increases in the aviation loss ratio which was brought by premium rate
reductions.
Commission and other income for the six months ended June 30, 1998 were
$723,893 as compared to $165,240 for the same period of 1997 and was $383,111
for the second quarter of 1998 as compared to $73,430 for the same period of the
prior year. Contingent profit commissions from reinsurance transactions in our
aviation and ocean marine line accounted for most of the increase.
Interest expense increased to $731,362 for the six months ended June 30, 1998
from $599,823 for the same period of the prior year primarily as a result of an
increase in loan principal outstanding.
Net investment income for the six months and quarter ended June 30, 1998
decreased by 2% and 4%, respectively, from the same periods of 1997 as a result
of a larger invested asset base offset slightly by a decrease in investment
yield in the Company's fixed maturity portfolio resulting from additional
purchases of tax-exempt securities and lower overall interest rates.
8
NYMAGIC, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS CONTINUED
Policy acquisition costs as a percentage of net premiums earned for the six
months ended June 30, 1998 were 10.3% as compared with 21.9% for the same period
of the prior year. The same ratio was 10.2% and 22.0% for the three months ended
June 30, 1998 and 1997, respectively. The reduction in the ratios is due in
large part to the two transactions involving assumptions of premiums in 1998.
Absent such business, the ratios would have been approximately 19.4% and 17.6%
for the six months and second quarter ended June 30 1998, respectively.
Contributing to the overall decline in the ratios were ceded override
commissions in our aviation line. This resulted in reducing net commissions at a
greater rate than the decline in premiums.
General and administrative expenses increased by 36% in 1998 over the first
six months of 1997. The increase included operating expenses from our recently
acquired Lloyd's of London agency and syndicate. Also, certain one time expenses
were incurred in connection with the assumption of premiums and the formation of
our Lloyd's syndicate. Lastly, contributing to the overall increase were
expenses associated with two employee benefit plans adopted by the Board of
Directors in the first quarter of 1998.
Realized investment gains of $6,937,630 for the six months ended June 30,
1998 mainly resulted from the sale of appreciated equity securities.
The Company reported net income of $10,551,253 or $1.09 diluted income per
share for the six months ended June 30, 1998 as compared to net income of
$11,586,526 or $1.15 diluted income per share for the same period of 1997. Net
income was $5,174,778 or $.53 diluted income per share for the three months
ended June 30, 1998 as compared with $5,715,430 or $.57 diluted income per share
for the same period of the prior year.
Premiums and other receivables, net decreased to $33,307,755 as of June 30,
1998. Declines in premium writings in the domestic insurance companies
contributed to the overall reduction in receivables.
The increase in accumulated other comprehensive income at June 30, 1998
is mainly attributable to increases in unrealized appreciation of investments,
net of deferred income taxes. The favorable stock market in 1998 accounted for
most of the increase.
The Company believes that short-term investments of $41,805,497 together with
its available line of credit will enable the Company to meet its current
cash requirements.
The Company borrowed $5,000,000 in the second quarter of 1998 to assist in
the payment of gross losses and reinsurance premium payments. The amount
was fully repaid during the second quarter.
The Company adheres to investment guidelines as prescribed by the finance
committee of the board of directors. Such guidelines were conservatively
designed to provide the Company with adequate capital growth and sufficient
liquidity to meet existing obligations. In addition, the guidelines provide
for a portfolio of investment grade securities.
9
NYMAGIC, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS CONTINUED
The Company repurchased 3,900 shares of common stock, pursuant to the
Company's common stock repurchase plan, during the first quarter of 1998, at a
market price of approximately $28.81. In addition, 3,186 treasury shares were
issued to various members of the Board of Directors.
In the first quarter of 1998, the Company entered into an interest rate swap
agreement (the "agreement") with a bank for purposes of hedging its interest
rate risk on its existing bank loan. The agreement requires the Company to pay
interest to the bank at a rate of 6.50% on the notional amount outstanding of
$22,500,000 which is adjusted quarterly by notional reductions of $1,250,000.
The bank is required to pay the Company, on the same notional amounts
outstanding, an amount equal to the three month US Dollar London Interbank
Offered Rate plus .65% which is reset on a quarterly basis.
The insurance pools participated in the issuance of umbrella casualty
insurance for various Fortune 1,000 companies in the period from 1978 to 1983.
Depending on the accident year, the insurance pools' maximum net retention per
occurrence ranged from $250,000 to $500,000. The Company's effective pool
participation on such risks varied from 11% in 1978 to 30% in 1983. At June 30,
1998 and December 31, 1997, the Company's net loss and loss adjustment expense
reserves for Asbestos/Pollution policies amounted to $9.0 million for each
period, respectively. As of June 30, 1998, the Company had approximately 400
policies which had at least one claim relating to Asbestos/Pollution exposures.
Net loss and loss adjustment expense payments on Asbestos/Pollution policies
amounted to $555,000 and $190,000 for the six month periods ended June 30, 1998
and June 30, 1997, respectively. The Company believes that the uncertainty
surrounding Asbestos/Pollution exposures, including issues as to insureds'
liabilities, ascertainment of loss date, definitions of occurrence, scope of
coverage, policy limits and application and interpretation of policy terms,
including exclusions, all affect the estimation of ultimate losses. Under such
circumstances, it is difficult to determine the ultimate loss for
Asbestos/Pollution related claims. Given the uncertainty in this area, losses
from Asbestos/Pollution related claims are likely to adversely impact the
Company's results from operations in future years and may vary materially from
such reserves reported as of June 30, 1998. However, the Company believes that,
in aggregate, the unpaid loss and loss adjustment expense reserves as of June
30, 1998, allow for an adequate provision and that the ultimate resolution of
Asbestos/Pollution claims will not have a material impact on the Company's
financial position.
The Company is currently modifying its existing computer operating systems in
order to be Year 2000 compliant. This problem arises from computers recognizing
only the last two digits of the year and may result in errors in processing
information. The Company expects to complete all modifications to existing
systems by December 31, 1998. The cost of this modification is not expected to
be material to the financial statements, liquidity and capital resources of the
Company.
The Company is in the process of communicating with its various business
vendors to determine the extent of their Year 2000 compliance. The results of
this process will serve to reduce the Company's overall exposure to the Year
2000 problem.
The Company is also in the process of evaluating the insurance risk in
connection with the potential for losses arising from Year 2000 failures.
Losses resulting from Year 2000 failures may be determined to be covered
under insurance contracts depending upon contract wording and specific
circumstances. However, the extent of such losses , which the Company may
incur, cannot be determined currently.
10
NYMAGIC, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS CONTINUED
The Company can make no assurances at this time regarding the ultimate
outcome of the efforts described herein nor can it guarantee that the systems
of external companies which may impact the Company will be year 2000 compliant.
A failure to comply by such external companies could have a material adverse
impact on the Company's financial statements.
This Form 10-Q contains certain forward-looking statements concerning the
Company's operations, economic performance and financial condition, including,
in particular the likelihood of the Company's success in developing and
expanding its business. These statements are based upon a number of assumptions
and estimates which are inherently subject to significant uncertainties and
contingencies, many of which are beyond the control of the Company, and reflect
future business decisions which are subject to change. Some of these assumptions
inevitably will not materialize, and unanticipated events will occur which will
affect the Company's results.
Such statements may include, but are not limited to, projections of premium
revenue, investment income, other revenue, losses, expenses, earnings, cash
flows, plans for future operations, common stockholders' equity, investments,
capital plans, dividends, plans relating to products or services of and
estimates concerning the effects of litigation or other disputes, as well as
assumptions of any of the foregoing and are generally expressed with the words
such as "believes," "estimates," "anticipates," plans," "projects," "forecasts,"
"goals," "could have," "may have" and similar expressions.
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<PAGE>
PART II - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the three months ended June
30, 1998.
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.
NYMAGIC, INC.
(Registrant)
Date: August 12, 1998 /s/ Mark W. Blackman
---------------------------- ------------------------
Mark W. Blackman
(Chief Executive Officer)
/s/ Thomas J. Iacopelli
------------------------
Thomas J. Iacopelli
(Chief Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<DEBT-HELD-FOR-SALE> 340,294
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 68,039
<MORTGAGE> 397
<REAL-ESTATE> 0
<TOTAL-INVEST> 450,535
<CASH> 1,713
<RECOVER-REINSURE> 185,452
<DEFERRED-ACQUISITION> 4,752
<TOTAL-ASSETS> 714,430
<POLICY-LOSSES> 0
<UNEARNED-PREMIUMS> 44,652
<POLICY-OTHER> 404,282
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 19,958
0
0
<COMMON> 15,014
<OTHER-SE> 202,148
<TOTAL-LIABILITY-AND-EQUITY> 714,842
52,811
<INVESTMENT-INCOME> 10,478
<INVESTMENT-GAINS> 6,938
<OTHER-INCOME> 724
<BENEFITS> 39,750
<UNDERWRITING-AMORTIZATION> 5,463
<UNDERWRITING-OTHER> 11,351
<INCOME-PRETAX> 13,656
<INCOME-TAX> 3,104
<INCOME-CONTINUING> 10,551
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,551
<EPS-PRIMARY> 1.09
<EPS-DILUTED> 1.09
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
