SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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, 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 0-22316
---------------------
Penn-America Group, Inc.
-----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2731409
- --------------------------------- ---------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
420 South York Road, Hatboro, Pennsylvania 19040
------------------------------------------------------------------------
(Address of principal executive offices, including zip code)
(215) 443-3600
------------------------------------------------------------------------
(Registrant's telephone number, including area code)
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 other 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 .
At November 10, 1997, 9,883,384 shares of the registrant's common stock, $.01
par value, were outstanding.
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Index
Page Number
Part I - Financial Information
Consolidated Unaudited Balance Sheets - September 30, 1997 and
December 31, 1996 .............................................3
Consolidated Unaudited Statements of Earnings - For the three
and nine month periods ended September 30, 1997 and 1996 ......4
Consolidated Unaudited Statement of Stockholders' Equity -
For the nine month period ended September 30, 1997 ............5
Consolidated Unaudited Statements of Cash Flows -
For the nine month periods ended September 30, 1997 and
1996 ..........................................................6
Notes to Unaudited Consolidated Financial Statements .................7
Management's Discussion and Analysis of Financial Condition
and Results of Operations .....................................8
Part II - Other Information ..................................................13
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share data)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
---------------- --------------
<S> <C> <C>
ASSETS
Investments:
Fixed Maturities:
Available for sale, at fair value
(amortized cost 1997 $85,214; 1996 $49,244) $ 85,596 $ 48,954
Held to maturity, at amortized cost
(fair value 1997 $43,008; 1996 $44,111) 42,988 44,227
Equity securities, at fair value
(cost 1997 $24,240; 1996 $10,597) 26,328 12,390
Short-term investments, at cost, which approximates fair value -- 7,000
--------- ---------
Total Investments 154,912 112,571
Cash 16,690 2,979
Receivables:
Accrued investment income 2,007 1,671
Premiums receivable, net 12,138 10,494
Reinsurance recoverable 17,057 15,719
Note receivable, affiliate -- 275
--------- ---------
Total receivables 31,202 28,159
Prepaid reinsurance premiums 2,955 2,668
Deferred policy acquisition costs 8,602 7,231
Capital leases 1,886 1,950
Deferred income tax 2,177 2,211
Income tax recoverable 552 249
Other assets 577 587
========= =========
Total assets $ 219,553 $ 158,605
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses $ 81,695 $ 70,728
Unearned premiums 36,037 30,865
Accounts payable and accrued expenses 2,004 1,773
Capitalized lease obligations 1,947 2,030
Notes payable, bank -- 9,000
Other liabilities 3,538 1,872
--------- ---------
Total liabilities 125,221 116,268
--------- ---------
Stockholders' equity:
Preferred stock, $.01 par value; authorized 2,000,000 shares;
none issued -- --
Common stock, $.01 par value, authorized 1997, 20,000,000 shares
and 1996, 10,000,000 shares; issued and outstanding
1997, 9,883,384 shares and 1996, 6,676,131 shares 99 67
Additional paid-in capital 68,221 21,844
Unrealized investment gains, net of tax 1,610 993
Retained earnings 24,956 19,533
--------- ---------
94,886 42,437
Unearned compensation from restricted stock awards (554) (100)
--------- ---------
Total stockholders' equity 94,332 42,337
--------- ---------
Total liabilities and stockholders' equity $ 219,553 $ 158,605
========= =========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
Page 3
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Consolidated Statements of Earnings
(Unaudited)
For the three and nine month periods
ended September 30, 1997 and 1996
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
----------------------- -------------------
1997 1996 1997 1996
------- ------ ------ ------
Revenues:
<S> <C> <C> <C> <C>
Premiums earned $23,950 $17,836 $67,883 $49,944
Net investment income 2,521 1,694 6,446 4,942
Net realized investment gains 479 227 588 330
------- ------- ------- -------
Total revenues 26,950 19,757 74,917 55,216
------- ------- ------- -------
Losses and expenses:
Losses and loss adjustment expenses 14,876 11,222 42,483 31,326
Amortization of deferred policy acquisition costs 6,425 4,574 18,396 12,785
Other underwriting expenses 1,639 1,017 4,254 3,267
Interest expense 91 227 477 665
------- ------- ------- -------
Total losses and expenses 23,031 17,040 65,610 48,043
------- ------- ------- -------
Earnings before income tax 3,919 2,717 9,307 7,173
Income tax 1,331 887 2,951 2,341
------- ------- ------- -------
Net earnings $ 2,588 $ 1,830 $ 6,356 $ 4,832
======= ======= ======= =======
Net earnings per share (note 1)
$ 0.28 $ 0.27 0.84 $ 0.73
======= ======= ======= =======
Weighted average number of shares outstanding (note 1) 9,134 6,669 7,534 6,661
Cash dividends per share (note 1) $ 0.04 $ 0.03 $ 0.12 $ 0.08
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
Page 4
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Consolidated Statement of Stockholders' Equity
(Unaudited)
For the nine months ended September 30, 1997
(Dollars in thousands)
<TABLE>
<CAPTION>
Unearned
Compensation
Unrealized From
Additional Investment Restricted
Common Stock Paid-In Gains Retained Stock
Shares Amount Capital (Losses), Net Earnings Awards Total
------- -------- ---------- ------------ -------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1996 6,676,131 $67 $21,844 $993 $19,533 $(100) $42,337
Net earnings 6,356 6,356
Issuance of common stock, net 3,207,253 32 46,377 46,409
Unearned compensation from
restricted stock awards (512) (512)
Amortization of unearned
compensation from
restricted stock awards 58 58
Unrealized investment gains, net 637 637
Unrealized loss, net of
accretion, on fixed
maturities transferred
to held to maturity (20) (20)
Cash dividends paid (933) (933)
---------------------------------------------------------------------------------------------
Balance at September 30, 1997 9,883,384 $ 99 $ 68,221 $ 1,610 $ 24,956 $ (554) $ 94,332
=============================================================================================
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
Page 5
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
For the nine months ended September 30, 1997 and 1996
(In thousands)
<TABLE>
<CAPTION>
Nine months ended September 30,
-------------------------------
1997 1996
Cash flows from operating activities: ------ ------
<S> <C> <C>
Net earnings $ 6,356 $ 4,832
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Amortization and depreciation expense 292 237
Net realized investment gains (588) (330)
Deferred income tax (295) (166)
Net decrease in premiums and notes receivable,
prepaid reinsurance premiums and unearned premiums 3,516 2,384
Net increase in unpaid losses and loss adjustment expenses
and reinsurance recoverable 9,629 6,018
(Increase) decrease in:
Accrued investment income (336) (217)
Deferred policy acquisition costs (1,371) (1,088)
Income tax recoverable (303) 147
Other assets (79) (410)
Increase (decrease) in:
Accounts payable and accrued expenses 231 (468)
Other liabilities 1,666 276
-------- --------
Net cash provided by operating activities 18,718 11,215
-------- --------
Cash flows from investing activities:
Purchases of equity securities (16,484) (5,732)
Purchases of fixed maturities available for sale (53,426) (15,050)
Purchases of fixed maturities held to maturity (2,027) (17,070)
Proceeds from sales of equity securities 3,412 4,840
Proceeds from sales and maturities of fixed maturities available for sale 9,046 11,181
Proceeds from maturities and calls of fixed maturities held to maturity 11,591 8,008
Change in short-term investments 7,000 6,000
-------- --------
Net cash used by investing activities (40,888) (7,823)
-------- --------
Cash flows from financing activities:
Issuance of common stock 45,897 214
Principal payment on note payable, bank (9,000) --
Principal payments on capital lease obligations (83) (72)
Dividends paid (933) (533)
Principal payment on note payable, affiliate -- (150)
-------- --------
Net cash provided (used) by financing activities 35,881 (541)
-------- --------
Increase in cash 13,711 2,851
Cash, beginning of period 2,979 5,204
======== ========
Cash, end of period $ 16,690 $ 8,055
======== ========
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income tax $ 3,196 $ 2,360
Interest 531 640
Supplemental non-cash disclosure:
Cost of securities transferred from available for sale to held to maturity $ 8,002 --
</TABLE>
See accompanying notes to unaudited financial statements.
Page 6
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Notes to Unaudited Consolidated Financial Statements
Note 1 - Organization and Basis of Presentation
Penn-America Group, Inc. ("PAGI") is an insurance holding company whose
principal asset is the common stock of Penn-America Insurance Company
("Penn-America"). Except where otherwise indicated, the "Company" refers to PAGI
and Penn-America, as well as to Penn-America's wholly-owned subsidiary,
Penn-Star Insurance Company. Penn Independent Corporation ("Penn Independent")
currently owns approximately 31.2% of the outstanding common stock of PAGI.
The accompanying unaudited consolidated financial statements should be
read in conjunction with the financial statements and notes for the year ended
December 31, 1996. In the opinion of management, the financial information
reflects all adjustments (consisting only of normal recurring adjustments) which
are necessary for a fair presentation of the Company's financial position,
results of operations, and cash flows for the interim periods. The Company's
results of operations for interim periods are not necessarily indicative of the
results to be expected for the entire year.
On March 7, 1997, PAGI effected a three-for-two split of its common
stock. All share amounts and per share information disclosed herein have been
adjusted to reflect this split.
On July 22, 1997, PAGI completed a secondary offering ("the
Offering") of 4,025,000 shares of its common stock of which 1,000,000 shares
were sold by Penn Independent
Note 2 - Reinsurance
Premiums earned are net of amounts ceded to reinsurers of $2.0 million
and $1.7 million for the three months ended September 30, 1997 and September 30,
1996, respectively. Losses and loss adjustment expenses are net of amounts ceded
to reinsurers of $1.5 million and $930 thousand for the three months ended
September 30, 1997 and September 30, 1996, respectively.
Premiums earned are net of amounts ceded to reinsurers of $ 5.7 million
and $5.0 million for the nine months ended September 30, 1997 and September 30,
1996, respectively. Losses and loss adjustment expenses are net of amounts ceded
to reinsurers of $5.2 million and $5.6 million for the nine months ended
September 30, 1997 and September 30, 1996, respectively.
Page 7
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
Three Months Ended September 30, 1997 and 1996
Gross written premiums increased 29.5% to $27.2 million for the three
months ended September 30, 1997 from $21.0 million for the three months ended
September 30, 1996. The increase resulted from 66.7% growth in personal
automobile lines gross written premiums to $9.5 million and 15.5% growth in
commercial lines gross written premiums to $17.7 million. These increases in
gross written premiums were primarily attributable to increased volume.
Net written premiums increased 30.9% to $25.2 million for the three
months ended September 30, 1997 from $19.2 million for the three months ended
September 30, 1996. During the same periods, net premiums earned increased 34.3%
to $24.0 million from $17.8 million. Net premiums earned increased due to the
increase in gross written premiums, partially offset by an increase in premiums
ceded to reinsurers.
Net investment income increased 48.8% to $2.5 million for the three
months ended September 30, 1997 from $1.7 million for the three months ended
September 30, 1996. This increase resulted principally from growth in invested
assets funded primarily from the proceeds of the Offering and cash flows from
operating activities. The investment yield of the fixed maturity portfolio for
the three months ended September 30, 1997 was 6.76%, compared to 6.87% for the
three months ended September 30, 1996. Net realized investment gains before
taxes were $479,000 for the three months ended September 30, 1997, as compared
to $227,000 for the three months ended September 30, 1996.
Losses and loss adjustment expenses increased 32.6% to $14.9 million
for the three months ended September 30, 1997 from $11.2 million for the three
months ended September 30, 1996, primarily due to an increase in net premiums
earned.
Amortization of deferred policy acquisition costs increased 40.5% to
$6.4 million for the three months ended September 30, 1997 from $4.6 million for
the three months ended September 30, 1996. The increase was attributable to the
increase in net premiums earned and to the higher percentage of net premiums
earned in personal automobile lines relative to commercial lines for the three
months ended September 30, 1997 as compared to the same period ended September
30, 1996. Commission rates for personal automobile lines are generally higher
than commission rates for commercial lines.
Other underwriting expenses increased 61.2% to $1.6 million for the
three months ended September 30, 1997 from $1.0 million for the three months
ended September 30, 1996, primarily due to the increase in gross written
premiums. The increase in other underwriting expenses for the three months ended
September 30, 1997 was disproportional to the comparative period in 1996 because
of various expense recoveries recognized in 1996.
Page 8
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Management's Discussion and Analysis of Financial Condition and
Results of Operations
(continued)
The loss and loss adjustment expense ratio (loss ratio) decreased
slightly to 62.1% for the three months ended September 30, 1997 from 62.9% for
the three months ended September 30, 1996. The statutory expense ratio increased
slightly to 32.1% for the three months ended September 30, 1997 from 31.6% for
the three months ended September 30, 1996. The statutory combined ratio
decreased slightly to 94.2% for the three months ended September 30, 1997 from
94.5% for the three months ended September 30, 1996.
As a result of the factors described above, the Company's net income
for the three months ended September 30, 1997 increased 41.4% to $2.6 million or
$0.28 per share, compared to $1.8 million or $0.27 per share for the three
months ended September 30, 1996. The disproportionate increase in net earnings
per share compared to net earnings for the three months ended September 30,1997
is due to the increase in the number of shares outstanding after the Offering.
Nine Months Ended September 30, 1997 and 1996
Gross written premiums increased 35.2% to $78.7 million for the nine
months ended September 30, 1997 from $58.2 million for the nine months ended
September 30, 1996. The increase resulted from 81.4% growth in personal
automobile lines gross written premiums to $28.3 million and 18.3% growth in
commercial lines gross written premiums to $50.4 million. These increases in
gross written premiums were primarily attributable to increased volume.
Net written premiums increased 37.1% to $72.8 million for the nine
months ended September 30, 1997 from $53.1 million for the nine months ended
September 30, 1996. During the same periods, net premiums earned increased 35.9%
to $67.9 million from $49.9 million. Net premiums earned increased due to the
increase in gross written premiums, partially offset by an increase in premiums
ceded to reinsurers.
Net investment income increased 30.4% to $6.4 million for the nine
months ended September 30, 1997 from $4.9 million for the nine months ended
September 30, 1996. This increase resulted principally from growth in invested
assets funded primarily by net proceeds of approximately $44.4 million from the
Offering and cash flows from operating activities. The average investment yield
of the fixed maturity portfolio for the nine months ended September 30 ,1997 was
6.81%, compared to 6.85% for the nine months ended September 30 ,1996. Net
realized investment gains before taxes were $588,000 for the nine months ended
September 30, 1997, as compared to $330,000 for the nine months ended
September 30, 1996.
Losses and loss adjustment expenses increased 35.6% to $42.5 million
for the nine months ended September 30, 1997 from $31.3 million for the nine
months ended September 30, 1996, primarily due to an increase in net premiums
earned.
Page 9
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Management's Discussion and Analysis of Financial Condition and
Results of Operations
(continued)
Amortization of deferred policy acquisition costs increased 43.9% to
$18.4 million for the nine months ended September 30, 1997 from $12.8 million
for the nine months ended September 30, 1996. The increase was attributable to
the increase in net premiums earned and to the higher percentage of net premiums
earned in personal automobile lines relative to commercial lines for the nine
months ended September 30, 1997 as compared to the same period ended September
30, 1996. Commission rates for personal automobile lines are generally higher
than commission rates for commercial lines.
Other underwriting expenses increased 30.2% to $4.3 million for the
nine months ended September 30, 1997 from $3.3 million for the nine months ended
September 30, 1996, primarily due to the increase in gross written premiums.
The loss ratio decreased slightly to 62.6% for the nine months ended
September 30, 1997 from 62.7% for the nine months ended September 30, 1996. The
statutory expense ratio increased to 32.1% for the nine months ended September
30, 1997 from 31.6% for the nine months ended September 30, 1996. The increase
in the statutory expense ratio was primarily due to the increase in the
percentage of net premiums written in personal automobile lines relative to
commercial lines. The statutory combined ratio increased to 94.7% for the nine
months ended September 30, 1997 from 94.3% for the nine months ended September
30, 1996.
As a result of the factors described above, the Company's net income
for the nine months ended September 30, 1997 increased 31.6% to $6.4 million or
$0.84 per share, from $4.8 million or $0.73 per share for the nine months ended
September 30, 1996. The disproportionate increase in net earnings per share
compared to net earnings for the nine months ended September 30, 1997 is due to
the increase in the number of shares outstanding after the Offering.
Liquidity and Capital Resources
PAGI is a holding company, the principal asset of which is the common
stock of Penn-America. PAGI's cash flows depend primarily on dividends and other
payments from Penn-America. PAGI uses these funds to pay (i) operating expenses,
(ii) taxes and other payments and (iii) dividends to PAGI stockholders.
Penn-America's sources of funds consist primarily of premiums, investment income
and proceeds from sales and redemptions of investments. Funds are used by
Penn-America principally to pay claims and operating expenses, to purchase
investments and to make dividend and other payments to PAGI.
Page 10
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Management's Discussion and Analysis of Financial Condition and
Results of Operations
(continued)
Net cash provided by operating activities increased 66.9% to $18.7
million for the nine months ended September 30, 1997 as compared to $11.2
million for the nine months ended September 30, 1996. The increase in net cash
provided by operations resulted principally from the increase in net written
premiums and investment income during the period.
Net cash used by investing activities increased 422.7% to $40.9 million
for the nine months ended September 30, 1997 from $7.8 million for the nine
months ended September 30, 1996. This increase was primarily due to the net cash
provided by the Offering and increased cash provided from operating activities
for the nine months ended September 30, 1997.
Net cash provided by financing activities was $35.9 for the nine months
ended September 30, 1997, as compared to $541,000 used for financing activities
for the same period in 1996. The cash provided by financing activities in 1997
resulted primarily from $45.9 million in proceeds from the Offering and exercise
of stock options, partially offset by the repayment of the $9.0 million term
loan and $933,000 of cash dividends paid to stockholders.
The Company believes that it has sufficient liquidity to meet its
anticipated insurance obligations and operating and capital expenditure needs.
The Company's investment strategy emphasizes quality, liquidity and
diversification, as well as total return. With respect to liquidity, the Company
considers liability durations, specifically related to loss reserves, when
determining desired investment maturities. In addition, maturities have been
staggered to produce cash flows for loss payments and reinvestment
opportunities. The average duration of the fixed maturity portfolio as of
September 30, 1997 was approximately 3.1 years.
The Company's fixed maturity portfolio represented $128.6 million or
83% of the total investment portfolio as of September 30, 1997. Approximately
99.1% of these securities were rated "A-" or better by Standard & Poor's or
Moody's. Equities, the majority of which consist of preferred stocks,
represented $26.3 million or 17.0% of total investments as of September 30,
1997.
As of September 30, 1997, the investment portfolio contained $17
million or 10.9% of mortgage-backed obligations. All of these securities are
"AAA" rated securities issued by government or government-related agencies, are
publicly traded, and have market values obtained from an independent pricing
service. Changes in estimated cash flows due to changes in prepayment
assumptions from the original purchase assumptions are revised based on current
interest rates and the economic environment. The Company had no other derivative
financial instruments, real estate or mortgages in the investment portfolio as
of September 30, 1997.
Page 11
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
Management's Discussion and Analysis of Financial Condition and
Results of Operations
(continued)
On July 25, 1997, the Company paid off the entire outstanding principle
balance of $9 million plus interest on its Term Loan. In November 1997, the
Company signed a commitment letter to increase the Revolving Credit Facility to
$20.0 million. The structure of the new credit facility will provide for the
repayment of the borrowed amount under the Revolving Credit Facility to be
extended over six years with interest on the loan at LIBOR plus a factor which
can vary from 100 to 225 basis points. Borrowing under this new credit facility
will be secured by the common stock of Penn-America.
The principal source of cash to use for the payment of dividends to
PAGI's stockholders is dividends from Penn-America. Penn-America is required by
law to maintain a certain minimum surplus on a statutory basis and is subject to
risk-based capital requirements and regulations under which payment of dividends
from statutory surplus may require prior approval of the Pennsylvania regulatory
authorities. The maximum dividend that may be paid in 1997 by Penn-America to
PAGI without prior approval of regulatory authorities is $6,262,000.
Penn-America's statutory surplus increased 94.5% to $81.0 million. This is
due primarily to the capital contribution of $35.0 million from the Offering
and statutory net income of $5.3 million.
Page 12
<PAGE>
PENN-AMERICA GROUP, INC. AND SUBSIDIARY
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Default Upon Senior Securities - None
Item 4. Submission of Matters to a Vote by Security Holders -None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K - None
Page 13
<PAGE>
SIGNATURE
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.
Penn-America Group, Inc.
Date: November 10, 1997 By: /s/ Jon S. Saltzman
--------------------------------- -------------------
Jon S. Saltzman
President and
Chief Executive Officer
By: /s/ Rosemary R. Ferrero
Rosemary R. Ferrero
Principal Finance and
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Sheet and statement of Earnings at September 30, 1997
(unaudited) and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000910110
<NAME>Penn-America Group, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-mos
<FISCAL-YEAR-END> dec-31-1997
<PERIOD-START> jan-01-1997
<PERIOD-END> sep-30-1997
<DEBT-HELD-FOR-SALE> 85,596
<DEBT-CARRYING-VALUE> 42,988
<DEBT-MARKET-VALUE> 0
<EQUITIES> 26,328
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 154,912
<CASH> 16,690
<RECOVER-REINSURE> 17,057
<DEFERRED-ACQUISITION> 8,602
<TOTAL-ASSETS> 219,553
<POLICY-LOSSES> 81,695
<UNEARNED-PREMIUMS> 36,037
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
0
0
<COMMON> 99
<OTHER-SE> 94,233
<TOTAL-LIABILITY-AND-EQUITY> 219,553
67,883
<INVESTMENT-INCOME> 6,446
<INVESTMENT-GAINS> 588
<OTHER-INCOME> 0
<BENEFITS> 42,483
<UNDERWRITING-AMORTIZATION> 18,396
<UNDERWRITING-OTHER> 4,254
<INCOME-PRETAX> 9,307
<INCOME-TAX> 2,951
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,356
<EPS-PRIMARY> 0.84
<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>
