<PAGE>
DRAFT
-----
6/5/96
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 11-K
( X ) Annual Report Pursuant to Secton 15(d) of the
Securities Exchange Act of 1934
For the Fiscal Year Ended December 31, 1996
Commission File No. 1-12338
-------------------------
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
(Full Title of the Plan)
VESTA INSURANCE GROUP, INC.
3760 River Run Drive
Birmingham, Alabama 35243
(Name of Issuer of the Securities Held
Pursuant to the Plan and the Address
of its Principal Executive Office)
<PAGE>
REQUIRED INFORMATION
(a) Financial Statements for the J. Gordon Gaines, Inc. Retirement Savings Plan
<TABLE>
<CAPTION>
Page
----------
<S> <C>
(i) Report of Independent Auditors F-1
(ii) Audited statements of net assets available for plan F-2
benefits as of December 31, 1996 and 1995
(iii) Audited statements of changes in net assets available F-3
for plan benefits for the years ended December 31, 1996,
1995 and 1994.
</TABLE>
(b) Exhibits
The following exhibit is filed herewith as a part of this annual report:
Exhibit Number Description of Exhibit
------------------------ --------------------------
23.1 Consent of Independent
Certified Public Accountants
-2-
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Administrative Committee
J. Gordon Gaines, Inc. Retirement Savings Plan:
We have audited the accompanying statements of net assets available for
plan benefits of the J. Gordon Gaines, Inc. Retirement Savings Plan (Plan)
as of December 31, 1996 and 1995 and the related statements of changes in
net assets available for plan benefits for the years ended December 31,
1996, 1995 and 1994. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for plan benefits of the
Plan as of December 31, 1996 and 1995, and the changes in net assets
available for plan benefits for the years ended December 31, 1996, 1995 and
1994 ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information
included in Schedules 1 and 2 is presented for purposes of additional
analysis and is not a required part of the basic financial statements but
is supplementary information required by the Department of Labor's Rules
and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974. Such information has been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation
to the basic financial statements taken as a whole.
/s/ KPMG Peat Marwick LLP
Birmingham, Alabama
May 9, 1997
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
--------- ---------
<S> <C> <C>
Assets:
Investments at fair value:
Vesta Insurance Group, Inc. common stock
(cost: 1996 - $606,045, 1995 - $396,370) $ 738,097 676,182
Mutual fund investments:
Vanguard Index Trust (cost: 1996 - $276,265,
1995 - $155,193) 334,266 190,032
Fidelity Balanced Fund (cost: 1996 - $154,950,
1995 - $93,867) 164,713 97,606
Biltmore Fixed Income Fund (cost: 1996 - $78,023,
1995 - $49,574) 78,882 52,134
Biltmore Prime Cash Management (cost: 1996 - $162,382,
1995 - $146,760) 162,382 146,760
--------- ---------
Total investments 1,478,340 1,162,714
Cash 773 655
Employee contributions receivable 15,866 6,280
Employer contributions receivable -- 1,054
--------- ---------
Total assets 1,494,979 1,170,703
Liabilities:
Payable to broker -- 31,410
Other 1,611 2,705
--------- ---------
Total liabilities 1,611 34,115
--------- ---------
Net assets available for plan benefits $ 1,493,368 1,136,588
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
For the Years Ended December 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
1996 1995 1994
---------- --------- -------
<S> <C> <C> <C>
Dividend income (includes dividends from
sponsor's stock of $3,080, $2,393, and $430 in
1996, 1995, and 1994, respectively) $ 28,338 17,014 7,826
Net appreciation (depreciation) of investments
(61,707) 327,845 (5,044)
---------- --------- -------
(33,369) 344,859 2,782
---------- --------- -------
Contributions:
Employee 364,049 306,017 270,256
Employer 150,601 123,273 123,102
---------- --------- -------
514,650 429,290 393,358
---------- --------- -------
Rollovers 63,151 6,835 13,782
Distributions to participants (187,652) (67,542) (42,904)
---------- --------- -------
Net increase 356,780 713,442 367,018
Net assets available for plan benefits:
Beginning of year 1,136,588 423,146 56,128
---------- --------- -------
End of year $1,493,368 1,136,588 423,146
========== ========= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1996, 1995 and 1994
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------
(A) BASIS OF PRESENTATION
---------------------
The accompanying financial statements of J. Gordon Gaines, Inc.
Retirement Savings Plan (the Plan) have been prepared on an accrual basis
in accordance with generally accepted accounting principles. J. Gordon
Gaines (the Company or Sponsor) is a wholly-owned subsidiary of Vesta
Insurance Group, Inc. (Vesta).
(B) USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS
-----------------------------------------------------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan administrators 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 the
components of changes in net assets during the reporting period. Actual
results could differ from those estimates.
(C) INVESTMENTS VALUATION
---------------------
Investments in mutual funds and in Vesta common stock are stated at fair
value, based on quotations obtained from national securities exchanges.
Purchase and sales of securities are recorded on a trade-date basis.
Realized gains and losses are calculated using the average cost method.
For cash, receivables and payables, the carrying amounts approximate fair
value because of the short-term nature of these instruments.
(D) PLAN EXPENSES
-------------
Wachovia Services, Inc. (the Trustee) is trustee for the Plan.
Administration fees paid to the Trustee and all other administrative
expenses are paid by the Sponsor.
(E) FEDERAL INCOME TAXES
--------------------
A determination letter has been received from the Internal Revenue
Service stating that the Plan qualifies under Section 401 of the Internal
Revenue Code and that the Plan is exempt from federal income tax. Amounts
contributed by the employer, Plan earnings and appreciation in the value
of investments will not be taxable to the employee until a distribution
is received from the Plan, except for appreciation in the value of Vesta
Insurance Group, Inc. common stock which will not be taxed until the
participant disposes of that stock.
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(2) ORGANIZATION
------------
The Plan was adopted on November 15, 1993. The Plan includes a salary
reduction feature which permits employees who participate (Participants) in
the Plan to defer and save part of their compensation, as provided for under
Section 401(k) of the Internal Revenue Code. The Plan is subject to the
applicable provisions of the Employee Retirement Income Security Act of 1974,
as amended (ERISA).
(3) DESCRIPTION OF PLAN
-------------------
(A) PARTICIPANT CONTRIBUTIONS
-------------------------
Employees become eligible to participate in the Plan on the first day of
January, April, July, or October following completion of one year of
service. Participants may elect to have from 1 to 10 percent of their
compensation deferred and contributed to the Plan. There were 152
participants and 130 participants as of December 31, 1996 and 1995,
respectively.
Participants may allocate their contributions, in multiples of 10
percent, to the following investments:
(i) Money Market Fund: Invested primarily in the Biltmore Prime Cash
Management Fund which invests in commercial paper and other money
market instruments maturing in one year or less;
(ii) Bond Fund: Invested primarily in the Biltmore Fixed Income Fund
which invests in direct obligations of the United States or
agencies;
(iii) Balanced Fund: Invested primarily in the Fidelity Balanced
Fund which invests in common or preferred stock, and securities
convertible into common stock, direct obligations of the United
States Government and its agencies, corporate bonds, debentures,
notes, and certificates of indebtedness;
(iv) Equity Fund: Invested primarily in the Vanguard Index Trust which
invests in common or capital stock and convertible bonds,
convertible notes, debentures or preferred stocks which are
convertible into common or capital stocks;
(v) Vesta Insurance Group, Inc. common stock.
(B) EMPLOYER MATCHING CONTRIBUTIONS
-------------------------------
The Employer, in its sole discretion, may make matching contributions in
an amount determined by the board of directors of the Company. For 1996
and 1995, these matching contributions were 50 percent of employee
contributions up to a maximum of 6 percent of the employeeOs
compensation. The Employer may also make additional discretionary
contributions. However, there were no additional discretionary
contributions in 1996 or 1995.
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(3) DESCRIPTION OF PLAN, CONTINUED
------------------------------
(C) VESTING
-------
Participants have a fully-vested and nonforfeitable interest in
the portion of their accounts attributable to their contributions. A
Participant acquires a vested interest in the portion of their accounts
attributable to Employer matching and additional discretionary
contributions based on length of employment, as follows:
Years of Service Vesting Percentage
---------------- ------------------
Less than 3 0%
3 20%
4 40%
5 60%
6 80%
7 100%
(D) FORFEITURES
-----------
If a Participant incurs a "break in service," as defined in the
Plan, for any reason other than permanent disability, death or normal
retirement, and is not 100 percent vested in the employer discretionary
contributions, the nonvested portion is forfeited. Forfeited amounts are
applied to the Company's contributions.
(E) WITHDRAWAL PROVISIONS
---------------------
Participants may request that all or part of their accounts
attributable to elective contributions be paid to them to meet an
immediate and heavy financial hardship for which funds are not reasonably
available to them from other sources. The amount paid to a Participant
in this fashion will be taxable and may not be repaid to the Plan.
(F) PRIORITIES UPON TERMINATION
---------------------------
Upon termination of the Plan, all Participants' funds shall become
fully vested. The trust will continue until the Plan benefits of each
Participant has been distributed.
(G) ROLLOVERS
---------
During 1996 and 1995, assets were rolled into the Plan from the
qualified plans of previous employers of employees of the Company.
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(4) INVESTMENTS
-----------
The investments of the Plan as of December 31, 1996 and 1995 are
summarized as follows:
<TABLE>
<CAPTION>
December 31, 1996
-----------------------------------------------------------
Number of Fair value per Fair
shares/units Cost share or unit value
------------ ---------- -------------- ---------
<S> <C> <C> <C> <C>
Vesta Insurance Group, Inc. 23,525 $ 606,045 31.38 738,097
Vanguard Index Trust 4,833 276,265 69.16 334,266
Fidelity Balanced Fund 11,698 154,950 14.08 164,713
Biltmore Fixed Income Fund 8,166 78,023 9.66 78,882
Biltmore Prime Cash Management 162,382 162,382 1.00 162,382
---------- ---------
$1,273,665 1,478,340
========== =========
December 31, 1995
-----------------------------------------------------------
Number of Fair value per Fair
shares/units Cost share or unit value
------------ ---------- -------------- ---------
<S> <C> <C> <C> <C>
Vesta Insurance Group, Inc. 12,407 $ 396,370 54.50 676,182
Vanguard Index Trust 3,299 155,193 57.60 190,032
Fidelity Balanced Fund 7,219 93,867 13.52 97,606
Biltmore Fixed Income Fund 5,224 49,574 9.98 52,134
Biltmore Prime Cash Management 146,760 146,760 1.00 146,760
--------- ----- ---------
$ 841,764 1,162,714
========= =========
</TABLE>
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(4) INVESTMENTS, CONTINUED
----------------------
Allocation of Net Assets Available for Plan Benefits to Investment Programs
December 31, 1996
<TABLE>
<CAPTION>
Money Company
Market Bond Balanced Equity Stock Combined
Fund Fund Fund Fund Fund Funds
------- ------- -------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value $ 161,744 78,882 164,713 334,266 738,735 1,478,340
Cash 746 8 6 9 4 773
Employee contributions
receivable 1,968 805 2,361 3,906 6,826 15,866
------- ------ ------- ------- ------- ---------
Total assets 164,458 79,695 167,080 338,181 745,565 1,494,979
------- ------ ------- ------- ------- ---------
Liabilities:
Other (449) (30) 1,133 286 671 1,611
------ ----- ------- ------- ------- ---------
(449) (30) 1,133 286 671 1,611
------ ------ ------- ------- ------- ---------
Net assets available
for plan benefits $ 164,907 79,725 165,947 337,895 744,894 1,493,368
======= ====== ======= ======= ======= =========
</TABLE>
Allocation of Net Assets Available for Plan Benefits to Investment Programs
December 31, 1995
<TABLE>
<CAPTION>
Money Company
Market Bond Balanced Equity Stock Combined
Fund Fund Fund Fund Fund Funds
------- ------ -------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at fair value $ 99,194 53,258 100,199 194,147 715,916 1,162,714
Cash 466 6 14 25 144 655
Employee contributions
receivable 628 398 921 1,453 2,880 6,280
Employer contributions
receivable -- -- -- -- 1,054 1,054
------- ------ ------- ------- ------- ---------
Total assets 100,288 53,662 101,134 195,625 719,994 1,170,703
------- ------ ------- ------- ------- ---------
Liabilities:
Payable to broker -- -- -- -- 31,410 31,410
Other 219 409 612 1,465 -- 2,705
---- ------ ------- ------- ------- ---------
219 409 612 1,465 31,410 34,115
---- ------ ------- ------- ------- ---------
Net assets available
for plan benefits $ 100,069 53,253 100,522 194,160 688,584 1,136,588
======= ====== ======= ======= ======= =========
</TABLE>
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(4) INVESTMENTS, CONTINUED
----------------------
Allocation of Changes in Net Assets Available for Plan Benefits to Investment
Programs
For the Year Ended December 31, 1996
<TABLE>
<CAPTION>
Money Company
Market Bond Balanced Equity Stock Combined
Fund Fund Fund Fund Fund Funds
--------- -------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income $ 7,743 4,212 6,274 7,029 3,080 28,338
Net appreciation (depreciation)
of investments -- (1,623) 6,394 48,612 (115,090) (61,707)
-------- ------- ------- -------- -------- ---------
7,743 2,589 12,668 55,641 (112,010) (33,369)
-------- ------- ------- -------- -------- ---------
Contributions:
Employee 40,422 17,732 42,481 74,617 188,797 364,049
Employer 18,416 7,081 16,102 29,494 79,508 150,601
-------- ------- ------- -------- -------- ---------
58,838 24,813 58,583 104,111 268,305 514,650
-------- ------- ------- -------- -------- ---------
Rollovers 9,428 6,581 7,532 30,952 8,658 63,151
Distributions to participants (6,415) (13,297) (20,214) (120,172) (27,554) (187,652)
Transfers (4,222) 5,786 6,856 73,203 (81,623) --
-------- ------- ------- -------- -------- ---------
Net increase 65,372 26,472 65,425 143,735 55,776 356,780
Net assets available for
plan benefits:
Beginning of year 100,069 53,253 100,522 194,160 688,584 1,136,588
-------- ------- ------- -------- -------- ---------
End of year $165,441 79,725 165,947 337,895 744,360 1,493,368
======== ======= ======= ======== ======== =========
</TABLE>
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(4) INVESTMENTS, CONTINUED
----------------------
Allocation of Changes in Net Assets Available for Plan Benefits to Investment
Programs
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Money Company
Market Bond Balanced Equity Stock Combined
Fund Fund Fund Fund Fund Funds
-------- ------- --------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income $ 4,364 2,530 3,660 4,067 2,393 17,014
Net appreciation
of investments -- 4,116 7,626 38,667 277,436 327,845
------- ------ ------- ------- ------- ---------
4,364 6,646 11,286 42,734 279,829 344,859
------- ------ ------- ------- ------- ---------
Contributions:
Employee 37,271 17,833 39,784 59,446 151,683 306,017
Employer 14,296 6,076 13,694 23,203 66,004 123,273
------- ------ ------- ------- ------- ---------
51,567 23,909 53,478 82,649 217,687 429,290
------- ------ ------- ------- ------- ---------
Rollovers 954 -- -- 1,827 4,054 6,835
Distributions to participants (8,778) (9,179) (14,897) (11,056) (23,632) (67,542)
Transfers (4,300) 261 (15,065) (9,136) 28,240 --
------- ------ ------- ------- ------- ---------
Net increase 43,807 21,637 34,802 107,018 506,178 713,442
Net assets available for
plan benefits:
Beginning of year 56,262 31,616 65,720 87,142 182,406 423,146
------- ------ ------- ------- ------- ---------
End of year $ 100,069 53,253 100,522 194,160 688,584 1,136,588
======= ====== ======= ======= ======= =========
</TABLE>
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(4) INVESTMENTS, CONTINUED
----------------------
Allocation of Changes in Net Assets Available for Plan Benefits to Investment
Programs
For the Year Ended December 31, 1994
<TABLE>
<CAPTION>
Money Company
Market Bond Balanced Equity Stock Combined
Fund Fund Fund Fund Fund Funds
--------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Dividend income $ 1,495 1,404 1,959 2,538 430 7,826
Net appreciation (depreciation)
of investments -- (1,977) (4,404) (1,588) 2,925 (5,044)
------ ------- ------- ------- ------- -------
1,495 (573) (2,445) 950 3,355 2,782
------ ------- ------- ------- ------- -------
Contributions:
Employee 35,611 27,120 62,606 81,018 63,901 270,256
Employer 18,742 12,156 28,167 33,988 30,049 123,102
------ ------- ------- ------- ------- -------
54,353 39,276 90,773 115,006 93,950 393,358
------ ------- ------- ------- ------- -------
Rollovers 1,038 1,037 2,478 4,029 5,200 13,782
Distributions to participants (3,443) (3,246) (15,792) (14,591) (5,832) (42,904)
Transfers (5,209) (11,442) (28,161) (40,921) 85,733 -
------ ------- ------- ------- ------- -------
Net increase 48,234 25,052 46,853 64,473 182,406 367,018
Net assets available for
plan benefits:
Beginning of year 8,028 6,564 18,867 22,669 - 56,128
------ ------- ------- ------- ------- -------
End of year $ 56,262 31,616 65,720 87,142 182,406 423,146
====== ======= ======= ======= ======= =======
</TABLE>
<PAGE>
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(5) RELATED PARTY TRANSACTIONS
--------------------------
The Sponsor paid all of the Plan's administrative expenses in 1996, 1995
and 1994. During 1996, 1995 and 1994, the Plan acquired and sold Vesta
Insurance Group, Inc. common stock as follows:
<TABLE>
<CAPTION>
Selling price/
Shares Cost fair value
-------------- -------- ----------
<S> <C> <C> <C>
1996:
Acquired 7,973 $280,052 280,052
Sold 1,208 29,668 38,612
Balance at year-end 19,172 606,045 738,097
1995:
Acquired 6,309 $227,602 227,602
Sold 67 2,024 2,574
Balance at year-end 12,407 396,370 676,182
1994:
Acquired 6,503 $182,410 182,410
Balance at year-end 6,503 182,410 182,410
</TABLE>
<PAGE>
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act
of 1934, the Administrator of the J. Gordon Gaines, Inc. Retirement Savings Plan
has duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
By: J. Gordon Gaines, Inc.,
Administrator of the Plan
By: /s/ Donald W. Thornton
-------------------------------------
Donald W. Thornton
Its: Senior Vice President, General
Counsel and Secretary
Date: June 27, 1997
-15-
<PAGE>
Schedule 1
----------
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
As of December 31, 1996
<TABLE>
<CAPTION>
December 31, 1996
----------------------------------
Number of Fair
shares/units Cost value
------------ --------- ---------
<S> <C> <C> <C>
Vesta Insurance Group, Inc. common stock * 19,172 606,045 738,097
Vanguard Index Trust 4,834 276,265 334,266
Fidelity Balanced Fund 12,495 154,950 164,713
Biltmore Fixed Income Fund 5,304 78,023 78,882
Biltmore Prime Cash Management 162,382 162,382 162,382
--------- ---------
$1,277,665 1,478,340
========= =========
</TABLE>
* Vesta Insurance Group, Inc. owns 100 percent of the common stock of the
Sponsor making Vesta a party-in-interest.
<PAGE>
Schedule 2
----------
J. GORDON GAINES, INC.
RETIREMENT SAVINGS PLAN
Item 27d - Schedule of Reportable Transactions
For the Year Ended December 31, 1996
<TABLE>
<CAPTION>
1996
-----------------------------------------------------------
Current
Purchase value of
Number price and asset on
of aggregate Selling transaction Net
shares cost price date gain
--------- --------- ------- ----------- ------
<S> <C> <C> <C> <C> <C>
Purchase of investments:
* Vesta Insurance Group,
Inc. common stock 7,973 280,052 -- 280,052 --
Vanguard Index Trust 3,649 229,945 -- 229,945 --
Fidelity Balanced Fund 6,025 81,331 -- 81,331 --
Biltmore Fixed Income Fund 4,534 43,666 -- 43,666 --
Biltmore Prime
Cash Management Fund 771,034 771,034 -- 771,034 --
Sale of investments:
* Vesta Insurance Group, Inc.
common stock 1,208 29,668 38,612 38,612 8,944
Vanguard Index Trust 749 20,249 20,618 20,618 369
Fidelity Balanced Fund 2,114 108,873 134,325 134,325 25,452
Biltmore Fixed Income Fund 1,596 15,693 15,772 15,772 79
Biltmore Prime Cash
Management Fund 755,412 755,412 755,412 755,412 --
</TABLE>
* Vesta Insurance Group, Inc. owns 100 percent of the common stock of the
Sponsor making Vesta a party-in-interest.
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Page
Number Description of Exhibit Number
------------ --------------------------------------------------- ----------
<C> <S> <C>
23.1 Consent of Independent Certified Public Accountants
</TABLE>
-18-
<PAGE>
EXHIBIT 23.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Administrative Committee
J. Gordon Gaines, Inc. Retirement Savings Plan
We consent to incorporation by reference in the registration statement on Form
S-8 of J. Gordon Gaines, Inc. Retirement Savings Plan of our report dated May 9,
1997, relating to the statements of net assets available for plan benefits of J.
Gordon Gaines, Inc. Retirement Savings Plan as of December 31, 1996 and 1995,
and the related statements of changes in net assets available for plan benefits
and related schedules for the years ended December 31, 1996, 1995 and 1994 which
report appears in the December 31, 1996, Annual Report on Form 11-K of J. Gordon
Gaines, Inc. Retirement Savings Plan.
/s/ KPMG Peat Marwick LLP
Birmingham, Alabama
June 25, 1997
