UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
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 0-23430
South Dakota State Medical Holding Company, Incorporated
(Exact name of registrant as specified in its charter)
South Dakota 46-0401087
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1323 South Minnesota Avenue, Sioux Falls, South Dakota 57105
(Address of principal executive office)
(Zip Code)
(605) 334-4000
(Registrant's telephone number, including area code)
______________________________
(Former name, former address, and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports) and (2) has been subject to such filing requirements
for the past 90 days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at May 03, 2000
Class C Common Stock 1,432,948
<PAGE>
SOUTH DAKOTA STATE MEDICAL HOLDING COMPANY, INCORPORATED
FORM 10-Q
INDEX
<TABLE>
<S> <C>
Page Number
Part 1. Financial Information (unaudited)
Item 1. Financial Statements
Consolidated Balance Sheets at
March 31, 2000 and December 31, 1999 2
Consolidated Statements of Operations for
the Three Months Ended March 31, 2000 and 1999 3
Consolidated Statement of Stockholders' Equity
for the Three Months Ended March 31, 2000 4
Consolidated Statements of Cash Flows
for the Three Months Ended March 31, 2000 and 1999 5
Notes to Consolidated Financial Statements 6-7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 7-10
Item 3. Quantitative and Qualitative Disclosures
about Market Risk 10
Part II. Other Information 10
Item 1. Legal Proceedings 10
Item 2. Changes in Securities 10
Item 3. Default Upon Senior Securities 10
Item 4. Submission of Matters to a Vote
of Security Holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
</TABLE>
1
<PAGE>
PART 1: FINANCIAL INFORMATION
Item 1. Financial Statements
SOUTH DAKOTA STATE MEDICAL HOLDING
COMPANY, INCORPORATED d/b/a DAKOTACARE
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<S> <C> <C>
March 31, December 31,
ASSETS 2000 1999
Cash and cash equivalents $ 7,656,310 $ 5,494,336
Investments in securities held to maturity 148,036 431,570
Certificates of deposit 500,000 500,000
Receivables 842,102 929,028
Prepaids and other assets 114,797 140,513
Deferred income taxes 665,000 639,000
------------- -------------
Total current assets $ 9,926,245 $ 8,134,447
------------- -------------
Investment in securities held to maturity $ 3,088,706 $ 3,055,769
Investments in securities available for sale 115,100 286,400
Pledged certificates of deposit 500,000 500,000
Certificate of deposit 50,000 50,000
Contracts with life insurance companies 105,079 107,089
------------- -------------
Total long-term investments $ 3,858,885 $ 3,999,258
------------- -------------
Property and equipment, net of accum. depreciation $ 1,064,307 $ 1,110,477
------------- -------------
Deferred income taxes $ 410,500 $ 409,600
------------- -------------
$ 15,259,937 $ 13,653,782
============= =============
LIABILITIES
Reported and unreported claims payable $ 4,718,278 $ 4,667,253
Unearned premiums and administration fees 1,198,648 849,777
Accounts payable and accrued expenses 1,026,969 818,401
Contingency reserves payable 1,300,000 1,300,000
------------- -------------
Total current liabilities $ 8,243,895 $ 7,635,431
Contingency reserves payable 1,711,714 1,423,351
------------- -------------
Total liabilities $ 10,206,859 $ 9,058,782
------------- -------------
Minority interest in subsidiary $ 355,746 $ 355,001
------------- -------------
STOCKHOLDERS' EQUITY
Class A preferred stock, issued 1,163 shares $ 11,630 $ 11,480
Class B preferred stock, issued 1,300 shares 1,300 1,300
Class C common stock, issued 1,505,760 shares 15,058 15,058
Additional paid-in capital 3,749,342 3,749,342
Retained earnings 1,756,146 1,076,912
Accumulated other comprehensive income (5,715) (34,914)
Treasury Stock, Class C common stock (579,179) (579,179)
------------- -------------
$ 4,948,582 $ 4,239,999
------------- -------------
$ 15,259,937 $ 13,653,782
============= =============
</TABLE>
See Notes to Consolidated Financial Statements. 2
<PAGE>
SOUTH DAKOTA STATE MEDICAL HOLDING
COMPANY, INCORPORATED d/b/a DAKOTACARE
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<S> <C> <C>
Three Months Ended March 31,
2000 1999
Revenues:
Premiums, net of reins. ceded $ 9,696,608 $ 8,281,038
Third party administration fees 826,684 772,650
Investment income 125,411 125,310
Other income 163,934 139,511
------------- -------------
Total revenues $ 10,812,637 $ 9,318,509
------------- -------------
Operating expenses:
Claims incurred,
net of reins. recoveries $ 7,380,452 $ 7,656,802
Personnel expense 1,009,817 1,024,092
Commissions 441,231 361,084
Professional fees expense 275,285 259,164
Office expense 108,256 175,807
Advertising 87,720 109,578
Occupancy expense 196,999 175,998
State insurance taxes 108,700 92,271
Other general and
administrative expenses 167,512 92,918
------------- -------------
Total operating expenses $ 9,775,972 $ 9,947,714
------------- -------------
Income (loss) before income taxes
and minority interest $ 1,036,665 $ (629,205)
Income taxes (benefit) 356,685 (251,000)
------------- -------------
Income (loss) before minority
interest $ 679,980 $ (378,205)
Minority interest in income
(loss) of subsidiary 746 1,480
------------- -------------
Net income (loss) $ 679,234 $ (379,685)
============= =============
Earnings (loss) per common share $ 0.47 $ (0.26)
============= =============
Weighted average number of
common shares outstanding 1,432,948 1,465,345
============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE>
SOUTH DAKOTA STATE MEDICAL HOLDING
COMPANY, INCORPORATED d/b/a DAKOTACARE
CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
THREE MONTHS ENDED MARCH 31, 2000
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
Accumulated
Additional Other
Capital Paid-In Retained Comprehensive Treasury
Stock Capital Earnings Income(Loss) Stock Total
Balance,
December 31, 1999 $27,838 $3,749,342 $1,076,912 $(34,914) $(579,179) $4,239,999
Issuance of Class A
preferred stock 150 -- -- -- -- 150
Redemption of Class A
preferred stock -- -- -- -- -- --
Treasury stock
purchased at cost -- -- -- -- -- --
Dividends paid on
Class C common
stock -- -- -- -- -- --
Comprehensive income:
Net income -- -- 679,234 -- --
Net change in un-
realized loss on
securities avail-
able for sale -- -- -- 29,199 --
Comprehensive income -- -- -- -- -- 708,433
-------- ----------- ----------- --------- ---------- -----------
Balance,March 31, 2000 $27,988 $3,749,342 $1,756,146 $ (5,715) $(579,179) $4,948,582
======== =========== =========== ========= ========== ===========
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE>
SOUTH DAKOTA STATE MEDICAL HOLDING
COMPANY, INCORPORATED d/b/a DAKOTACARE
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<S> <C> <C>
Three Months Ended March 31,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 679,234 $ (379,685)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation 82,164 76,539
Minority interest in income (loss)
of subsidiary 746 1,480
Amortization of discounts and premiums
on investments, net (37,495) (34,856)
Loss on disposal of equipment 11,659 --
Loss on sale of investments 27,437 --
Decrease in receivables 86,176 167,827
Decrease in prepaids and other assets 25,716 32,206
(Increase) in deferred income taxes (26,900) (33,000)
Increase (decrease) in reported and
unreported claims payable 51,025 (137,498)
Increase in unearned premiums and
administration fees 348,871 258,545
Increase in accounts payable and accrued expenses 209,318 216,444
Increase in contingency reserve payable 288,363 330,099
------------- -------------
Net cash provided by (used in) operating activities $ 1,746,314 $ 498,101
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of securities available for sale $ (6,081) $ (1,595)
Held to maturity securities:
Matured 291,461 --
Purchased -- --
Repayments on collateralized mortgage obligations 841 25,824
Proceeds from maturities of certificates of deposit 400,000 475,000
Proceeds from sale of securities available for sale 174,932 --
Purchase of certificates of deposit (400,000) (400,000)
(Increase) decrease in contracts with life
insurance companies 2,010 (6,000)
Purchase of property and equipment (47,653) (175,930)
Proceeds from the sale of property and equipment -- --
------------- -------------
Net cash provided by(used in) investing activities $ 415,510 $ (82,701)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of capital stock $ 150 $ 160
Redemption of capital stock -- --
Payment of dividends -- (73,267)
Purchase of treasury stock -- --
------------- -------------
Net cash provided by(used in) financing activities $ 150 $ (73,107)
------------- -------------
Increase (decrease) in cash and cash equivalents $ 2,161,974 $ 342,293
CASH AND CASH EQUIVALENTS
Beginning 5,494,336 5,372,457
------------- -------------
Ending $ 7,656,310 $ 5,714,750
============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
5
<PAGE>
SOUTH DAKOTA STATE MEDICAL HOLDING COMPANY, INCORPORATED
D/B/A DAKOTACARE
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The consolidated financial statements of South Dakota State Medical Holding
Company, Incorporated, d/b/a DAKOTACARE, (the "Company") and its
wholly-owned subsidiaries, DAKOTACARE Administrative Services, Incorporated
(DAS), and DAKOTACARE Insurance Ltd. (DIL), and its 50.11% owned subsidiary,
Dakota Health Plans, Incorporated (DHP), contained in this report are
unaudited but reflect all adjustments, consisting only of normal recurring
adjustments, which, in the opinion of management, are necessary for a fair
presentation of the financial information for the periods presented and are
not necessarily indicative of the results to be expected for the full year.
2. EARNINGS PER COMMON SHARE
Earnings per common share is calculated by dividing net income by the weighted
average number of Class C common shares outstanding during the period.
3. TREASURY STOCK
As a service to the Company's shareholders to facilitate liquidity for Class
C common stock (Common Stock) in the event of death, disability, or retirement
of a shareholder, the Company's Board of Directors adopted a Stock Repurchase
Program (Program) in February 1998. Participation in the Program is
voluntary. No shareholder is required to sell his or her shares of Common
Stock under the Program nor is the Company required to purchase any Common
Stock under the Program. The purchase and sale of Common Stock under the
Program is subject to repurchase conditions as described in the Program. The
Board of Directors of the Company may, at any time, modify or terminate the
Program. The Company may also, at its discretion, offer to repurchase shares
of Common Stock outside the Program in compliance with applicable laws.
4. SEGMENT INFORMATION
The Company has three reportable segments: Health Maintenance Organization
(HMO), Third Party Administration (TPA) and Reinsurance. The HMO segment
consists of the operations of the Company. The Company is a South Dakota
licensed HMO engaged in the development of comprehensive health care delivery
systems. The TPA segment consists of the operations of DAS and DHP. DAS and
DHP are TPA's of health care plans for independent employer companies. The
reinsurance segment consists of the operations of DIL. DIL's primary
activity is in providing reinsurance quota share excess medical stop loss
coverage to DAS's self funded customers.
The Company evaluates performance and allocates resources based on net income
determined under generally accepted accounting principles. The accounting
policies of the reportable segments are the same as those described in the
summary of significant accounting policies as indicated in the Company's 1999
Annual Consolidated Financial Statements. The Company allocates payroll
costs incurred based on the activities of admitting new enrollees and in
adjudicating claims. The HMO segment profit includes the equity in earnings
(loss) of the TPA and reinsurance segments. Intersegment revenues primarily
relate to equipment rental charges which are based on the depreciation on the
underlying assets.
6
<PAGE>
The Company's reportable segments are derived from the operations of the
Company and subsidiaries that offer different products. The reportable
segments are managed separately because they provide distinct services.
Period Ended March 31, 2000
<TABLE>
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
HMO TPA Reinsurance Totals
----------------------------------------------------------
Revenues from external sources $ 9,744,232 $ 874,146 $ 194,259 $ 10,812,637
Intersegment revenues -- 63,343 -- 63,343
Segment profit (loss) 679,234 57,283 (21,409) 715,108
Segment assets 13,260,721 1,789,571 460,895 15,511,187
The total segment profit is greater than the consolidated net income by
$35,874 because the equity in net income of subsidiaries has not been
eliminated from the individual segment amounts.
Period Ended March 31, 1999
- ---------------------------------------------------------------------------------------
HMO TPA Reinsurance Totals
----------------------------------------------------------
Revenues from external sources $ 8,332,448 $ 815,481 $ 170,580 $ 9,318,509
Intersegment revenues -- 53,804 -- 53,804
Segment profit (loss) (379,685) (63,464) (7,722) (450,871)
Segment assets 13,772,000 1,934,471 494,896 16,201,367
The total segment loss is less than the consolidated net loss by
$71,186 because the equity in net loss of subsidiaries has not been
eliminated from the individual segment amounts.
</TABLE>
5. LITIGATION
During 1998, a substantial claim was filed against the Company in circuit
court which alleges wrongful non-renewal of a sales agency contract and seeks
compensatory and punitive damages. As of May 2000, the lawsuit is in the
discovery stage. Management believes the lawsuit is without merit and the
Company will vigorously defend itself in this matter.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
The South Dakota State Medical Holding Company, Incorporated, markets its
products under the tradename of DAKOTACARE. Its products include group
managed health care products such as HMO products and cafeteria plan
administration and workers compensation managed care services. Its
subsidiaries' (DAS and DHP) products are managed care and claims
administration services for self-insured employer groups. Its subsidiary,
DIL, accepts reinsurance risk on some of DAS's self-funded and insured
customers' life and stop-loss insurance policies. The Company and its
subsidiary DAS, market their products through a network of independent
insurance agents throughout South Dakota.
The Company contracts with over 98% of the physicians in the state of South
Dakota, 100% of the hospitals in the state of South Dakota, and many other
health care providers to provide medical services to its enrollees. At March
31, 2000, the Company's HMO enrollment is approximately 24,900 enrollees,
while its subsidiary DAS has enrollment of approximately 56,600 enrollees under
their Administrative Services Only (ASO) business. DHP currently has no
enrollees and is in the process of formally dissolving.
7
<PAGE>
This discussion and analysis contains certain forward-looking terminology such
as "believes," "anticipates," "will," and "intends," or comparable terminology.
Such statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those projected. Potential
purchasers of the Company's securities are cautioned not to place undue
reliance on such forward-looking statements which are qualified in their
entirety by the cautions and risks described herein and in other reports filed
by the Company with the Securities and Exchange Commission.
COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2000 AND MARCH 31, 1999
General
The Company's net income increased $1,058,919 to net income of $679,234 for the
three months ended March 31, 2000, as compared to a net loss of $379,685 for
the three months ended March 31, 1999. This increase was primarily due to an
increase in total revenues of $1,494,128, which was offset by a net increase
of $435,943 in operating expenses and income taxes.
Revenues
Total revenues increased $1,494,128, or 16.03%, for the three months ended
March 31, 2000, as compared to March 31, 1999. The revenues from the net
premiums generated by the health maintenance organization increased
$1,389,405, or 17.13%. This increase is attributable to a 9.38% increase
in the number of enrollees and a 7.07% increase in the premiums earned per
enrollee for the three months ended March 31, 2000, as compared to March
31, 1999. Revenues from the third party administration(TPA) fees increased by
$54,034 due to the net increase in enrollment.
Operating Expenses
Total operating expenses decreased $171,742, or 1.73%, for the three months
ended March 31, 2000, as compared to March 31, 1999. This was due to a
decrease in claims incurred, personnel, advertising and office expense, but was
offset by an increase in commissions, professional fees, state insurance taxes,
occupancy, and other general and administrative expenses.
Net claims expense decreased by $276,350, or 3.61%. Average claims per
enrollee decreased by 11.99% for the three months ended March 31, 2000, as
compared to March 31, 1999, while the number of enrollees increased by 9.38%.
This led to an overall net claims expense reduction. Personnel and advertising
decreased a total of $36,133, or 3.19% due mostly to the reduced advertising as
compared to the prior year at this time. Office expense decreased $67,551, or
38.42%, due primarily to reduced postage costs. In the 4th quarter of 1999,
heavy mailings were sent and thus reduced the need for any major mailings in
the 1st quarter of 2000. Commissions and state insurance taxes increased
$96,576, or 21.30%, for the three months ended March 31, 2000, as compared to
March 31, 1999. These expenses are directly related to premiums received and
thus increased because of the increased revenues. Professional fees, occupancy,
and other general and administrative expenses increased $111,716, or 21.16%,
due to increased consulting, Division of Insurance fees and short-term computer
data fee arrangements.
Income Taxes
Income tax expense (benefit) represents 34.41% and 39.89% of income before
income taxes and minority interest for the three months ended March 31, 2000
and 1999, respectively. The Company does not anticipate income to surpass
the top income tax bracket. The Company has recorded a valuation allowance
against deferred income taxes due to the question of recovery of taxes from
losses generated by a foreign subsidiary. The allowance recorded at March
31, 2000 is $113,500. This increased by $5,100 since December 31, 1999. At
March 31, 1999, there was no allowance recorded related to this foreign
subsidiary. As a result of previous levels of pretax earnings and the
availability of recoverable income taxes paid in recent years, no valuation
allowance is required for any other of the recorded deferred tax assets.
8
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company's principal sources of cash have been premium and fee revenue,
collection of premiums in advance of the claims costs associated with them, and
an agreement with participating physicians in which a percentage of fees for
services is withheld for cash flows of the Company. The Company in the past has
had borrowings from banks and affiliated companies, but currently does not need
to borrow for liquidity purposes.
Net cash provided by operating activities increased by $1,248,213 to $1,746,314
for the three months ended March 31, 2000, as compared to March 31, 1999. The
increase in cash provided by operations was mainly attributable to net income,
an increase in accounts payable and accrued expenses, an increase in unearned
premiums and administration fees, and an increase in contingency reserves
payable for the three months ended March 31, 2000 as compared to March 31, 1999.
There was no payment of contingency reserves payable to physicians for the
three months ended March 31, 2000, which caused the increase in the balance
for contingency reserves payable. The other accounts which changed are all a
factor of billing and payment cycles which fluctuate, but are not unusual in
nature. Cash flows have been provided from proceeds on the maturities of
securities and certificates of deposits. All of the certificates of deposits
which matured were reinvested into new certificates of deposits, which offset
the cash flow received on the maturities. The purchase of property and
equipment also reduced the cash flows.
The Company is not contractually obligated to pay out the contingency reserves
withheld but has historically elected to pay out a majority of the amounts
withheld. There were no dividends paid on Class C stock for the three months
ended March 31, 2000. Future dividend payment is dependent on operations and
liquidity of the Company. The Company believes that cash flows generated by
operations, withholding of contingency reserves payable, cash on hand, and
short-term investment balances will be sufficient to fund operations, pay out
the projected contingency reserves payable, and pay dividends on the Class C
common stock.
INFLATION
A substantial portion of the Company's operating expenses consist of health
care costs, which, in the general economy, have been rising at a rate greater
than that of the overall Consumer Price Index. The Company believes that its
cost control measures and risk sharing arrangements reduce the effect of
inflation on such costs. Historically, market conditions and the regulatory
environment in which the Company operates have permitted the Company to offset
a portion or all of the impact of inflation on the cost of health care
benefits through premium increases. If the Company was not able to continue to
increase premiums, a material adverse impact on the Company's operations could
result. Inflation does not have a material effect on the remainder of the
Company's operating expenses.
TRENDS, EVENTS, OR UNCERTAINTIES
In recent years, there has been a trend by clients to switch to plans with
higher employee cost-sharing levels in order to maintain lower premiums. As a
provider of cost effective managed care plans for medium and small employers,
the Company believes it is delivering products and services that address
current health care reform issues. The Company will continue to evaluate its
business strategy as necessary to maximize its ability to adapt to the
changing health care marketplace.
9
<PAGE>
YEAR 2000
There were no adverse problems with the computer systems, data systems or any
other items which rely on using computer dates, during the conversion from
1999 to 2000. No additional costs were incurred or are expected to be
incurred in the future.
LITIGATION
During 1998, a substantial claim was filed against the Company in circuit
court which alleges wrongful non-renewal of a sales agency contract and seeks
compensatory and punitive damages. As of May 2000, the lawsuit is in the
discovery stage. Management believes the lawsuit is without merit and the
Company will vigorously defend itself in this matter.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
The Company does not have any material risk as defined by Item 305 of
Regulation S-K. The Company has market risk with its cash and investments, but
due to the conservative nature of the invested assets, management feels that
the market risk is limited.
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 of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) No exhibits are attached.
(b) No reports on Form 8-K have been filed during the quarter for
which this report is filed.
10
<PAGE>
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.
South Dakota State Medical Holding Company, Incorporated
(Registrant)
Date:_04/12/2000___ By: /s/L. Paul Jensen______
L. Paul Jensen
Chief Executive Officer
(Duly Authorized Officer)
Date:_04/12/2000___ By: _/s/Kirk J. Zimmer_____
Kirk J. Zimmer
Senior Vice President
(Principal Financial Officer)
11
<PAGE>
[ARTICLE] 7
<TABLE>
<S> <C>
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-2000
[PERIOD-END] MAR-31-2000
[DEBT-HELD-FOR-SALE] 0
[DEBT-CARRYING-VALUE] 4,286,742
[DEBT-MARKET-VALUE] 4,277,701
[EQUITIES] 115,100
[MORTGAGE] 0
[REAL-ESTATE] 0
[TOTAL-INVEST] 4,401,842
[CASH] 7,656,310
[RECOVER-REINSURE] 0
[DEFERRED-ACQUISITION] 0
[TOTAL-ASSETS] 15,511,187
[POLICY-LOSSES] 4,718,278
[UNEARNED-PREMIUMS] 1,198,648
[POLICY-OTHER] 0
[POLICY-HOLDER-FUNDS] 0
[NOTES-PAYABLE] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 12,930
[COMMON] 15,058
[OTHER-SE] 4,920,594
[TOTAL-LIABILITY-AND-EQUITY] 15,511,187
[PREMIUMS] 9,696,608
[INVESTMENT-INCOME] 152,848
[INVESTMENT-GAINS] -27,437
[OTHER-INCOME] 990,618
[BENEFITS] 7,380,452
[UNDERWRITING-AMORTIZATION] 0
[UNDERWRITING-OTHER] 441,231
[INCOME-PRETAX] 1,036,665
[INCOME-TAX] 356,685
[INCOME-CONTINUING] 679,234
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 679,234
[EPS-BASIC] .47
[EPS-DILUTED] .47
[RESERVE-OPEN] 4,667,253
[PROVISION-CURRENT] 8,022,403
[PROVISION-PRIOR] -611,335
[PAYMENTS-CURRENT] 3,304,125
[PAYMENTS-PRIOR] 4,055,918
[RESERVE-CLOSE] 4,718,278
[CUMULATIVE-DEFICIENCY] -611,335
</TABLE>
