FORM 10-Q
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended March 31, 1997
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 33-64820
AMERICO LIFE, INC.
(Exact name of registrant as specified in its charter)
MISSOURI
(State of other jurisdiction of incorporation or organization)
43-1627599
(I.R.S. Employer Identification No.)
1055 BROADWAY
KANSAS CITY, MISSOURI 64105
(Address of principal executive offices)
(816) 391-2000
(Registrant's telephone number, including area code)
NOT APPLICABLE
(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 practicable date.
Class and Title of Shares Outstanding
Capital Stock as of May 12, 1997
Common Stock, $1.00 Par Value 10,000
<PAGE>
AMERICO LIFE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands - unaudited)
<TABLE>
March 31, December 31,
1997 1996
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Held to maturity, at amortized cost
(market: $826,988 and $847,832) $ 861,841 $ 857,451
Available for sale, at market
(amortized cost: $573,620 and $671,792) 564,560 670,274
Equity securities, at market
(cost: $34,396 and $33,341) 48,978 48,262
Investment in equity subsidiaries 18,971 18,078
Mortgage loans on real estate, net 171,321 184,326
Investment real estate, net 17,091 22,417
Policy loans 202,746 204,607
Other invested assets 29,583 13,437
----------- ----------
Total investments 1,915,091 2,018,852
Cash and cash equivalents 139,518 96,069
Accrued investment income 24,533 25,287
Amounts receivable from reinsurers 389,115 375,150
Other receivables 25,666 13,969
Deferred policy acquisition costs 77,838 72,438
Cost of business acquired 196,558 200,710
Amounts due from affiliates 1,821 -
Other assets 28,598 28,235
----------- -----------
Total assets $ 2,798,738 $ 2,830,710
=========== ===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Policyholder account balances $ 1,483,240 $ 1,466,959
Reserves for future policy benefits 678,136 681,545
Unearned policy revenues 33,845 32,128
Policy and contract claims 28,812 30,959
Other policyholder funds 84,288 81,442
Notes payable 133,358 133,312
Amounts payable to reinsurers 64,581 67,348
Deferred income taxes 43,235 43,195
Due to broker 29 50,013
Amounts due to affiliates - 2,168
Other liabilities 44,552 34,619
----------- -----------
Total liabilities 2,594,076 2,623,688
Stockholder's equity:
Common stock ($1 par value; 30,000 shares authorized,
10,000 shares issued and outstanding) 10 10
Additional paid-in capital 3,745 3,745
Net unrealized investment gains 31,565 37,189
Retained earnings 169,342 166,078
----------- -----------
Total stockholder's equity 204,662 207,022
----------- -----------
Commitments and contingencies
Total liabilities and stockholder's equity $ 2,798,738 $ 2,830,710
=========== ===========
</TABLE>
See notes to consolidated financial statements
<PAGE>
AMERICO LIFE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts - unaudited)
<TABLE>
Three months
ended March 31,
1997 1996
------ ------
<S> <C> <C>
INCOME
Premiums and policy revenues $ 41,323 $ 41,192
Net investment income 49,608 43,668
Net realized investment gains (losses) 493 (765)
Other income 110 145
--------- --------
Total income 91,534 84,240
BENEFITS AND EXPENSES
Policyholder benefits:
Death benefits 26,111 23,430
Interest credited on universal life and
annuity policies 23,120 17,961
Other policyholder benefits 13,440 14,245
Change in reserves for future policy benefits (4,435) (3,475)
Commissions 2,929 2,504
Amortization expense 6,660 6,867
Interest expense 3,007 3,034
Other operating expenses 15,287 13,472
-------- --------
Total benefits and expenses 86,119 78,038
Income before provision for income taxes 5,415 6,202
Provision for income taxes 1,651 2,085
-------- --------
Net income $ 3,764 $ 4,117
========= ========
Net income per common share $ 376.40 $ 411.70
========= ========
</TABLE>
See notes to consolidated financial statements
<PAGE>
AMERICO LIFE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands - unaudited)
<TABLE>
Three months
ended March 31,
1997 1996
------ -------
<S> <C> <C>
Cash flows from operating activities
Net income $ 3,764 $ 4,117
Adjustments to reconcile net income to net cash
used by operating activities:
Depreciation and amortization 6,973 7,143
Deferred policy acquisition costs (4,346) (4,937)
Undistributed earnings of equity subsidiaries (893) (1,118)
Distribution of earnings from equity
subsidiaries - 6,000
Amortization of unrealized gains (1,485) (1,835)
(Increase) decrease in assets:
Accrued investment income 754 582
Amounts receivable from reinsurers (13,965) (19,027)
Other receivables (11,697) 154
Amounts due from affiliates (1,821) 6,637
Other assets, net of amortization expense (2,211) 652
Increase (decrease) in liabilities:
Policyholder account balances (3,397) (1,249)
Reserves for future policy benefits
and unearned policy revenues (2,616) (2,615)
Policy and contract claims (2,147) 5,854
Other policyholder funds 2,846 93
Amounts payable to reinsurers (2,767) (5,421)
Provision for deferred income taxes 3,067 1,566
Amounts due to affiliates (2,168) -
Other liabilities 9,930 1,296
Net realized (gains) losses on
investments sold (493) 765
Amortization on bonds and mortgage loans 1,279 (257)
Other changes (1,639) (679)
-------- -------
Total adjustments (26,796) (6,396)
-------- -------
Net cash used by operating activities (23,032) (2,279)
--------- --------
Cash flows from investing activities
Purchases of fixed maturity investments (31,826) (87,444)
Purchases of other investments (79,102) (5,973)
Mortgage loans originated - (73)
Maturities or redemptions of fixed
maturity investments 9,679 9,409
Sales of fixed maturity available for
sale investments 113,601 136,358
Sales of other investments 69,082 446
Repayments from mortgage loans 14,002 6,048
Change in due to broker (49,984) (42,965)
Change in policy loans 1,860 2,158
--------- ---------
Net cash provided by investing activities 47,312 17,964
Cash flows from financing activities
Receipts credited to policyholder
account balances 45,662 45,033
Return of policyholder account balances (25,983) (24,397)
Dividends paid (500) (500)
Repayments of notes payable (10) (21)
--------- ---------
Net cash provided by financing activities 19,169 20,115
--------- ---------
Net increase in cash and cash equivalents 43,449 35,800
Cash and cash equivalents at beginning
of period 96,069 58,996
--------- ----------
Cash and cash equivalents at end of period $ 139,518 $ 94,796
========= =========
</TABLE>
See notes to consolidated financial statements
<PAGE>
AMERICO LIFE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For Three Months Ended March 31, 1997 and 1996
(In thousands, except per share amounts - unaudited)
The following notes should be read in conjunction with the notes to the
consolidated financial statements contained in the Americo Life, Inc. (the
Company) December 31, 1996 Form 10-K as filed with the Securities and Exchange
Commission.
1.ACCOUNTING POLICIES
The unaudited consolidated financial statements as of March 31, 1997 and for
the three months ended March 31, 1997 and 1996 reflect all adjustments,
consisting of normal recurring adjustments, which are necessary for a fair
statement of financial position and results of operations on a basis
consistent with accounting principles described fully in Note 1 of the
Company's December 31, 1996 consolidated financial statements. The results of
operations for the three months ended March 31, 1997 and 1996 are not
necessarily indicative of the results experienced for the full year 1996, nor
the results to be expected for the full year 1997.
The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
In January 1997, the Company implemented Statement of Financial Accounting
Standards ("SFAS") No. 125 "Accounting for Transfers and Servicing of
Financial Assets and Extinguishment of Liabilities." SFAS No. 125 establishes
new criteria for determining whether a transfer of financial assets in
exchange for cash or other consideration should be accounted for as a sale or
as a pledge of collateral. The implementation of portions of this statement
with respect to accounting for pledged collateral, repurchase agreements and
similar transactions was deferred for one year by SFAS No. 127 "Deferral of
the Effective Date of Certain Provisions of the FASB Statement No. 125" issued
in December 1996. Implementation of these new accounting standards is not
expected to have a material impact on the consolidated financial statements of
the Company.
In February 1997, the Financial Accounting Standards Board (FASB) issued SFAS
No. 128, "Earnings per Share" and SFAS No. 129, "Disclosure of Information
about Capital Structure". SFAS No. 128 specifies the computation,
presentation and disclosure requirements for earnings per share. SFAS No. 129
does not establish new disclosure requirements, rather it codifies certain
disclosure requirements contained in other statements previously issued.
These statements are effective for financial statement periods ending after
December 15, 1997. The implementation of these statements is not expected to
have an impact on the consolidated financial statements of the Company.<PAGE>
<PAGE>
AMERICO LIFE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For Three Months Ended March 31, 1997 and 1996
(In thousands, except per share amounts - unaudited)
2.STOCKHOLDER'S EQUITY
Following are the components of net unrealized investment gains:
<TABLE>
Three Months
Ended
March 31, December 31, March 31,
1997 1996 1997
<S> <C> <C> <C>
Investment securities:
Fixed maturities available
for sale $ (9,060) $ (1,518) $ (7,542)
Fixed maturities reclassified
from available for sale to
held to maturity 51,530 53,426 (1,896)
Equity securities 14,582 14,922 (340)
--------- ---------- -----------
57,052 66,830 (9,778)
Effect on other balance sheet accounts (9,166) (11,123) 1,957
Deferred income taxes (16,321) (18,518) 2,197
--------- ---------- ----------
Net unrealized investment gains $31,565 $ 37,189 $ (5,624)
========= ========== ==========
</TABLE>
In March 1997, the Company paid a $500 dividend to Financial Holding
Corporation.
3.COMMITMENTS AND CONTINGENCIES
In May 1996, two policyholders of Great Southern Life Insurance Company
("Great Southern") filed a complaint in Louisiana state court against Great
Southern and an agent of Great Southern (Sharon K. Self and Johnnie W. Self,
et al v. Great Southern Life Insurance Company and A.A. Cohn) related to the
sale of an interest-sensitive whole life policy on a "vanishing premium" basis
and seeking unspecified damages. The plaintiffs have withdrawn their motion
for certification of the action as a class for trial purposes. The suit was
removed to the United States District Court for the Middle District of
Louisiana and is now proceeding in that court. In February 1997, Great
Southern was named a defendant in a lawsuit filed in the Circuit Court of Dade
County, Florida related to the sale of universal life policies and alleging
that policyholders were misled regarding the premiums payable for such
policies (Irwin Ginsberg v. Jack Goldberg and Great Southern Life Insurance
Company). The plaintiff in such lawsuit seeks to represent a class of Great
Southern policyholders and claims unspecified compensatory and punitive
damages. Because this lawsuit has only recently been served on Great
Southern, no responsive pleadings have been filed and the Company is still
investigating the matter. Great Southern intends to defend these cases
vigorously. The amount of any liability that may arise as a result of these
cases, if any, cannot be reasonably estimated at this time and no provision
for loss has been made in the accompanying financial statements.
<PAGE>
4.SUBSEQUENT EVENT
On April 15, 1997 (the "Closing Date"), Great Southern, acquired all of the
outstanding common stock of The Ohio State Life Insurance Company ("Ohio
State") and Investors Guaranty Life Insurance Company ("IGL") from Farmers
Group, Inc. ("Farmers") pursuant to a stock purchase agreement dated January
21, 1997. The purchase price was approximately $340,000.
Ohio State is an Ohio domiciled life insurance company and IGL is a California
domiciled life insurance company. Both companies operate from leased office
space in Columbus, Ohio. Ohio State and IGL had total combined assets of
approximately $1,100,000 at December 31, 1996. Ohio State and IGL had
combined revenues and income before income taxes for the year ended December
31, 1996 of approximately $154,000 and $30,000, respectively.
On April 16, 1997, Ohio State and IGL entered into separate coinsurance
agreements to reinsure 100% of their insurance liabilities to an unaffiliated
insurance company (the "Reinsurer") in exchange for a ceding commission of
$133,000. On the same day, the Reinsurer and Great Southern entered into a
modified coinsurance agreement under which the Reinsurer ceded certain risks
on a 70% quota share basis on the same insurance liabilities to Great
Southern. Under the coinsurance treaty, the assets supporting the insurance
liabilities are retained by the Reinsurer in an escrow account for the benefit
of Great Southern. The Reinsurer will receive 100% of the statutory profits
from the reinsured policies until the Reinsurer has recovered the initial
ceding commission. After that time, the Reinsurer will receive 30% of the
statutory profits from the reinsured policies.
The acquisition will be accounted for using the purchase method of accounting.
Pursuant to the reinsurance agreements, the assets retained by the Reinsurer
will be included on the Company's consolidated balance sheet as a receivable
from the Reinsurer. The Company will record 70% of the earnings which will
emerge from the reinsured business.
The acquisition of Ohio State and IGL was funded by internal funds and the
proceeds of a $240,000 repurchase agreement. Upon receipt of the $133,000
ceding commission from the Reinsurer, Ohio State and IGL paid dividends
totalling $200,000 to Great Southern. The repurchase agreement was
substantially closed out on April 18, 1997.
<PAGE>
AMERICO LIFE, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
In 1996, the Company entered into a transaction which affects the
comparability of the Company's results of operations for the three months
ended March 31, 1997 and 1996. In July 1996, in connection with
administrative agreements entered into with Fremont General Corporation and
Fremont Life Insurance Company ("Fremont Life"), an unaffiliated company
reinsured certain of the insurance liabilities of Fremont Life on a
coinsurance basis. The unaffiliated company reinsured certain risks on these
same liabilities to Great Southern on a modified coinsurance basis. The
invested assets related to the reinsured business are owned by the
unaffiliated company. The Company has offset the receivable from the
unaffiliated company against its liabilities under the modified coinsurance
agreement in the Company's consolidated financial statements at March 31,
1997. At March 31, 1997, the reinsured liabilities, consisting primarily of
annuities and universal life policies, totalled $402.2 million. The earnings
from this transaction are included in the Company's results of operations for
the three months ended March 31, 1997. This transaction will hereinafter be
referred to as the Acquisition.
The effects of the Acquisition on the individual income statement components
are as follows (in millions):
Premiums and policy revenues $3.2
Net investment income 6.7
Policyholder benefits 7.6
Commissions 0.1
Amortization expense 1.1
Other operating expenses 0.6
The other operating expenses in the above table include only the direct
expenses related to providing administration of the policies and assets of the
Acquisition. The other operating expenses shown do not include any allocation
of indirect or overhead expenses.
Three Months Ended March 31, 1997 Compared to the Three Months Ended March 31,
1996
Income before provision for income taxes decreased to $5.4 million for the
three months ended March 31, 1997 from $6.2 million for the three months ended
March 31, 1996. The primary reasons for the net decrease were (i) an increase
in death benefits, and (ii) an increase in other operating expenses, partially
offset by (iii) income from the Acquisition, (iv) an increase in realized
investment gains and (v) a decrease in amortization expense. These items and
other significant changes in individual income statement components are
discussed in more detail below.
Premiums and policy revenues. Premiums and policy revenues totalled $41.3
million for the three months ended March 31, 1997 compared to $41.2 million
for the three months ended March 31, 1996. Excluding the premiums and policy
revenues of the Acquisition, premiums and policy revenues decreased $3.1
million from 1996 to 1997, including a $2.5 million decrease in traditional
premiums.
<PAGE>
Because the Company currently writes little new traditional business,
traditional premiums will decrease as the amount of in-force business
decreases. Approximately $2.0 million of the decrease in traditional premiums
from 1996 to 1997 is offset by lower increases in benefit reserves in 1997.
Net investment income. Net investment income increased $5.9 million to $49.6
million for the three months ended March 31, 1997 from $43.7 million for the
same period in 1996. Excluding the investment income of the Acquisition, net
investment income decreased $0.8 million for the three months ended March 31,
1997 compared to the same period in 1996 due to a $0.9 million decrease
resulting from a reduction in invested assets associated with reinsured
business in which the reinsurer retains ownership of the assets. Investment
income was otherwise comparable from 1996 to 1997 as a 30 basis point decrease
in the average yield earned on invested assets was offset by a $91.4 million
increase in average invested assets.
Net realized investment gains. In the first three months of 1997, the Company
recorded $0.5 million of net realized investment gains compared to net
realized investment losses of $0.8 million for the same period in 1996. In
1997, the Company recorded gains of $1.8 million from the sale of two
properties received in the disposition of GSSW, Limited Partnership in
December 1996.
Policyholder benefits. Policyholder benefits increased $6.0 million to $58.2
million for the three months ended March 31, 1997 from to $52.2 million for
the three months ended March 31, 1996. Excluding policyholder benefits
related to the Acquisition, policyholder benefits decreased $1.6 million. For
the three months ended March 31, 1997, lower surrender benefits on traditional
products and lower benefit reserve increases associated with the lower
traditional premiums referred to above were offset by higher death benefits.
The Company's death benefits for the three months ended March 31, 1997 were
$2.0 million higher than the same period in 1996 and at a level above the
Company's assumptions used in computing the amortization of deferred policy
acquisition costs and the cost of business acquired asset. Although it is too
early to conclude that its mortality will continue at such a level, it has
been the Company's position to change cost of insurance charges on universal
life type policies when experience supports such a change in order to offset
the higher cost. Accordingly, the Company has begun to review the source of
the adverse experience to determine whether such an increase is warranted.
Amortization expense. Amortization expense decreased $0.2 million from $6.9
million in 1996 to $6.7 million in 1997. Excluding amortization expense
related to the Acquisition, amortization expense decreased $1.3 million from
1996 to 1997. The higher amortization expense in 1996 primarily resulted from
higher policy lapses and surrenders during that period.
Other operating expenses. Other operating expenses increased $1.8 million to
$15.3 million for the three months ended March 31, 1997 from $13.5 million in
1996. Excluding the other operating expenses related to the Acquisition,
other operating expenses increased $1.2 million. The primary reasons for the
increase in operating expenses from 1996 to 1997 are expenses associated with
a marketing office opened in California in September 1996 and increased
depreciation expense in 1997 resulting from purchases of computer equipment in
1996.
FINANCIAL RESOURCES AND LIQUIDITY
The changes occurring in the Company's consolidated balance sheet from
December 31, 1996 to March 31, 1997 primarily reflect the normal operations of
the Company's life insurance subsidiaries.
The quality of the Company's investment in fixed maturity investments at March
31, 1997 remained consistent with December 31, 1996. Non-investment grade
securities totalled less than 0.8% of the Company's total fixed maturity
investments at March 31, 1997. The Company has not made any significant
changes to its investment philosophy during 1997.
The Company had net unrealized investment losses of $5.6 million during the
first three months of 1997. The change in net unrealized investment gains
during this period resulted from increasing market interest rates which
decreased the market values of the Company's fixed maturity investment
securities. The components of the change during the three months ended March
31, 1997 were (in millions):
Gross unrealized investment losses $ (9.8)
Effect on insurance assets and liabilities 2.0
Deferred income tax effect 2.2
--------
$ (5.6)
========
Great Southern is a defendant in a lawsuit brought by two policyholders in
1996, claiming damages unspecified in amount, in connection with the sales of
certain life insurance policies. In February 1997, Great Southern was named
as a defendant in a purported class action lawsuit brought by a policyholder,
claiming damages unspecified in amount, in connection with the sale of certain
life insurance policies. For further discussion of these matters, see Note 3
to the March 31, 1997 consolidated financial statements contained elsewhere in
this Form 10-Q.
SUBSEQUENT EVENT
On April 15, 1997, the Company acquired all of the common stock of the Ohio
State Life Insurance Company ("Ohio State") and Investors Guaranty Life
Insurance Company ("IGL"). The purchase price was approximately $340.0
million and was funded by internal funds and the proceeds of a $240.0 million
repurchase agreement. Ohio State and IGL paid dividends totalling $200.0
million to Great Southern after the closing. The repurchase agreement was
substantially closed out on April 18, 1997. Approximately $100.0 million of
available for sale fixed maturity investments were sold in anticipation of the
acquisition of Ohio State and IGL. For further discussion of the acquisitions
and the effects of the acquisitions on the Company's financial resources and
liquidity, see Note 4 to the March 31, 1997 consolidated financial statements
contained elsewhere in this Form 10-Q.
<PAGE>
PART II. - OTHER INFORMATION
ITEM 2. Legal Proceedings
As previously disclosed in the Company's December 31, 1996 Form 10-K, in
February 1997, Great Southern was named a defendant in a lawsuit filed in the
Circuit Court of Dade County, Florida related to the sale of universal life
policies and alleging that policyholders were misled regarding the premiums
payable for such policies (Irwin Ginsberg v. Jack Goldberg and Great Southern
Life Insurance Company). The plaintiff in such lawsuit seeks to represent a
class of Great Southern policyholders and claims unspecified compensatory and
punitive damages. Because this lawsuit has only recently been served on Great
Southern, no responsive pleadings have been filed and the Company is still
investigating the matter. Great Southern intends to defend this case
vigorously.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Incorporated by
reference from:
2.1(a) (2) Stock Purchase Agreement dated January 21, 1997 between Great
Southern Life Insurance Company and Farmers Group, Inc.
2.1(b) (3) Amendment No. 1 to the Stock Purchase Agreement dated April 15,
1997 by and between Farmers Group, Inc. and Great Southern
Life Insurance Company.
2.1(c) (2) Form of Automatic Coinsurance Reinsurance Agreement entered
into between The Ohio State Life Insurance Company and
Employers Reassurance Corporation.
2.1(d) (2) Form of Automatic Coinsurance Reinsurance Agreement entered
into between Investors Guaranty Life Insurance Company and
Employers Reassurance Corporation.
2.1(e) (2) Modified Coinsurance Retrocession Agreement (Ohio State Life
Business) between Great Southern Life Insurance Company and
Employers Reassurance Corporation.
2.1(f) (2) Modified Coinsurance Retrocession Agreement (Investors Guaranty
Life Business) between Great Southern Life Insurance Company
and Employers Reassurance Corporation.
2.1(g) (2) Escrow Agreement (Ohio State Life/Investors Guaranty Life
Business) between Great Southern Life Insurance Company and
Employers Reassurance Corporation.
2.1(h) (2) Investment Management Agreement (Ohio State Life Business)
between the Registrant and Employers Reassurance Corporation.
<PAGE>
Item 6. (a) continued
2.1(i) (2) Investment Management Agreement (Investors Guaranty Life
Business) between the Registrant and Employers Reassurance
Corporation.
3.1 (1) Restated Articles of Incorporation, as amended, of the
Registrant.
3.2 (1) Bylaws, as amended, of the Registrant.
4.1 (2) Form of Amendment No. 1 to the Amended and Restated Credit
Agreement dated as of February 27, 1997, between the
Registrant and The Chase Manhattan Bank as administrative agent.
27 Financial Data Schedule.
(1)Registrant's Form S-4 (file No. 33-64820) filed June 22, 1993.
(2)Registrant's December 31, 1996 Form 10-K.
(3)Registrant's Form 8-K dated as of April 15, 1997.
(b) Reports on Form 8-K:
There were no reports on Form 8-K filed for the three months ended March 31,
1997.<PAGE>
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AMERICO LIFE, INC.
BY: /s/ Gary E. Jenkins
Name: Gary E. Jenkins
Title: Senior Vice President, Chief
Financial Officer and Treasurer
(Principal Financial Officer
and Principal Accounting Officer)
Date: May 14, 1997
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<DEBT-HELD-FOR-SALE> 564,560
<DEBT-CARRYING-VALUE> 861,841
<DEBT-MARKET-VALUE> 826,988
<EQUITIES> 48,978
<MORTGAGE> 171,321
<REAL-ESTATE> 17,091
<TOTAL-INVEST> 1,915,091
<CASH> 139,518
<RECOVER-REINSURE> 383,475
<DEFERRED-ACQUISITION> 77,838
<TOTAL-ASSETS> 2,798,738
<POLICY-LOSSES> 406,948
<UNEARNED-PREMIUMS> 33,845
<POLICY-OTHER> 84,288
<POLICY-HOLDER-FUNDS> 1,483,240
<NOTES-PAYABLE> 133,358
0
0
<COMMON> 10
<OTHER-SE> 204,652
<TOTAL-LIABILITY-AND-EQUITY> 2,798,738
41,323
<INVESTMENT-INCOME> 49,608
<INVESTMENT-GAINS> 493
<OTHER-INCOME> 110
<BENEFITS> 58,236
<UNDERWRITING-AMORTIZATION> 916
<UNDERWRITING-OTHER> 15,287
<INCOME-PRETAX> 5,415
<INCOME-TAX> 1,651
<INCOME-CONTINUING> 3,764
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,764
<EPS-PRIMARY> 376.40
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
