<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2(a)
(Amendment No. __)1/
-
Paula Financial
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
- -------------------------------------------------------------------------------
(Title of Class of Securities)
703588103
- -------------------------------------------------------------------------------
(CUSIP Number)
Philo Smith, 695 East Main Street
Stamford, Connecticut 06904 (203) 348-7365
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
July 1, 1998
-------------------------------
(Date of Event which Requires
Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
(Continued on following pages)
Page 1 of 15 Pages
- -------------------
1/ The remainder of this cover page shall be filled out for a reporting
- -
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 703588103 PAGE 2 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Philo Smith
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States citizen
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
None
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 525,100
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
None
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
525,100
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
599,700
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
9.5%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 703588103 PAGE 3 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Philo Smith & Co., Inc.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Connecticut
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
None
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 158,100
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
None
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
158,100
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
158,100
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
2.5%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON
14
CO
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 703588103 PAGE 4 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
PSCO Partners Limited Partnership - 06-0921598
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Connecticut
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
None
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 158,100
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
None
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
158,100
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
158,100
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
2.5%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 703588103 PAGE 5 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
PSCO Partners Limited Partnership Two
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Connecticut
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 60,100
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY None
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
60,100
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
None
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
60,100
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
.9%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON
14
PN
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
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CUSIP NO. 703588103 PAGE 6 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
PSCO Financial Services Fund
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Ireland
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
14,500
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY None
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
14,500
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
None
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
14,500
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
.2%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON
14
IV
- ------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 703588103 PAGE 7 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
PSCO Fund Limited
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Bermuda
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
None
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 367,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
None
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
367,000
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
367,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
5.8%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON
14
IV
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<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 703588103 PAGE 8 OF 15 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Philo Smith Capital Corporation
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Connecticut
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
74,600
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 367,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
74,600
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
367,000
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
441,600
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
7.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
<PAGE>
ITEM 1. SECURITY AND ISSUER.
--------------------
This Schedule 13D is filed with respect to the common stock of Paula
Financial ("Paula Financial"), 300 North Lake Avenue, Suite 300,
Pasadena, California 91101.
ITEM 2. IDENTITY AND BACKGROUND.
------------------------
This Schedule 13D is filed by Philo Smith, Philo Smith & Co., Inc.,
PSCO Partners Limited Partnership, PSCO Partners Limited Partnership
Two, PSCO Fund Limited, PSCO Financial Services Fund and Philo Smith
Capital Corporation.
PSCO Partners Limited Partnership ("PSCO Partners") is a Connecticut
limited partnership located at Financial Centre, 695 East Main Street,
Stamford, Connecticut 06901. It is an investment partnership. Its
General Partners are Philo Smith, an individual, and Philo Smith &
Co., Inc., a Connecticut corporation (the "Company"), both located at
Financial Centre, 695 East Main Street, Stamford, Connecticut 06901.
The principal occupation of Philo Smith is to provide financial
advisory services. The principal business of the Company is to engage
in corporate finance activities, to act as General Partner of PSCO
Partners, and to publish a monthly journal concerning the insurance
industry.
The directors of the Company are Philo Smith, James E. Inglis,
Financial Centre, 695 East Main Street, Stamford, Connecticut 06901,
whose principal occupation is acting as Vice President, Treasurer and
Secretary of the Company, James A. Amen, Financial Centre, 695 East
Main Street, Stamford, Connecticut 06901, whose principal occupation
is acting as Vice President of the Company, and George M. Whitmore,
Jr., 4 Cedarwood Drive, Greenwich, Connecticut 06830, a self-employed
management consultant. The officers are Philo Smith, President, James
E. Inglis, Vice President, Treasurer and Secretary, and James A. Amen,
Vice President.
PSCO Partners Limited Partnership Two ("PSCO Partners Two") is a
Connecticut limited partnership located at Financial Centre, 695 East
Main Street, Stamford, Connecticut 06901. It is an investment
partnership. Its General Partner is Philo Smith Capital Corporation,
a Connecticut corporation ("Capital"), located at 695 East Main
Street, Stamford, Connecticut 06901. The principal business of
Capital is investment management and corporate finance. Capital's
directors are Philo Smith, James E. Inglis, James A. Amen, and George
M. Whitmore, Jr. The officers of Capital are Philo Smith, President,
James E. Inglis, Vice President, Treasurer and Secretary, and James A.
Amen, Vice President.
Page 9 of 15
<PAGE>
PSCO Fund Limited is an open-end investment company incorporated in
Bermuda and located at 6 Front Street, Hamilton 11, Bermuda. The
principal business of PSCO Fund Limited is investment management. The
directors of PSCO Fund Limited are Philo Smith, Dr. Ernst Baumgartner,
employed by DUNA INVEST, 1010 Wien, Salztorgasse 512, Austria, Frank
N.C. Lochan, Senior Vice President, Trilon Financial Corporation, BCE
Place, 181 Bay Street, P. O. Box 171, Suite 4420, Toronto, Ontario,
Canada, M5J 2T3, John C.R. Collis, partner, Conyers, Dill & Pearman,
Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda, and David
T. Smith, Senior Manager, Corporate Trust, The Bank of Bermuda
Limited, Bank of Bermuda Building, 6 Front Street, Hamilton HM 11,
Bermuda. The officers of PSCO Fund Limited are Frank N.C. Lochan,
Chairman and President and David T. Smith, Vice President and
Secretary. The investment advisor for PSCO Fund Limited is Capital.
PSCO Financial Services Fund ("PSCO Financial")is an investment
company organized under the laws of Ireland as a public limited
company, located at First Floor, Europa House, Harcourt Centre,
Harcourt Street, Dublin 2, Ireland. The principal business of PSCO
Financial is investment management. The directors of PSCO Financial
are Frank N.C. Lochan, Dr. Ernst Baumgartner, David T. Smith, Gerald
J.P. Brady, Managing Director of Management International (Dublin)
Ltd., Europa House, Harcourt Centre, Harcourt Street, Dublin 2,
Ireland, and Carl O'Sullivan, a partner in the firm of Arthur Cox,
Arthur Cox Building, Earlsfort Terrace, Dublin 2, Ireland. The
officers of PSCO Financial are Frank N.C. Lochan, Chairman and Gerald
J.P. Brady, Secretary. The investment advisor for PSCO Financial is
Capital.
None of the reporting persons nor any of the other persons identified
in this item has been convicted, during the past five years, in a
criminal proceeding (excluding traffic violations or similar
misdemeanors). None, during the past five years, has been a party to
a civil proceeding resulting in a judgment, decree or final order
relating to securities laws. Each natural person identified above is a
U.S. citizen except for Frank N.C. Lochan, a Canadian citizen, Dr.
Ernst Baumgartner, an Austrian citizen, John C.R. Collis and David T.
Smith, both of whom are British citizens, and Gerald J.P. Brady and
Carl O'Sullivan, both of whom are Irish citizens.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
--------------------------------------------------
The amount of funds expended for the shares of common stock of Paula
Financial held by PSCO Partners was
Page 10 of 15
<PAGE>
approximately $2,389,234 (including commissions). PSCO Partners used
cash available to it for such purchases, and no borrowed funds were
involved.
The amount of funds expended for the shares of common stock of Paula
Financial held by PSCO Partners Two was approximately $1,157,967
(including commissions). PSCO Partners Two used cash available to it
for such purchases, and no borrowed funds were involved.
The amount of funds expended for the shares of common stock of Paula
Financial held by PSCO Fund Limited was approximately
$7,462,591(including commissions). PSCO Fund Limited used cash
available to it for such purchases, and no borrowed funds were
involved.
The amount of funds expended for the shares of common stock of Paula
Financial held by PSCO Financial was approximately $151,041(including
commissions). PSCO Financial used cash available to it for such
purchases, and no borrowed funds were involved.
ITEM 4. PURPOSE OF TRANSACTION.
-----------------------
The purpose of the purchases by the reporting persons has been to
acquire shares for investment. Philo Smith, the Company, PSCO
Partners, PSCO Partners Two, PSCO Fund Limited, PSCO Financial and
Capital may purchase additional shares of Paula Financial, from time
to time, depending upon price, market conditions, availability of
funds, evaluation of alternative investments and other factors.
Although none of these persons has a present intention to sell the
shares anticipated to be acquired, one or all of them might determine
to sell some or all of such shares based upon need for funds, price,
and similar factors.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
-------------------------------------
PSCO Partners owns 158,100 shares of Paula Financial common stock, or
approximately 2.5% of the outstanding shares of that class. PSCO
Partners Two owns 60,100 shares of Paula Financial common stock, or
approximately .9% of the outstanding shares of that class. PSCO Fund
Limited owns 367,100 shares of Paula Financial common stock, or
approximately 5.8% of the outstanding shares of that class. PSCO
Financial owns 14,500 shares of Paula Financial common stock, or
approximately .2% of the outstanding shares of that class.
Philo Smith and the Company share voting and investment power with
respect to shares held by PSCO Partners.
Page 11 of 15
<PAGE>
Capital has sole voting and investment power with respect to shares
held by PSCO Partners Two and PSCO Financial. Philo Smith and Capital
share voting and investment power with respect to shares held by PSCO
Fund Limited.
With respect to shares held by PSCO Partners, PSCO Partners Two, PSCO
Fund Limited and PSCO Financial, no person other than the holder has
the right or power to receive dividends from, or proceeds from the
sale of, shares of Paula Financial.
By virtue of the investment and voting arrangement described above,
Philo Smith and the Company beneficially own 158,100 shares of the
common stock of Paula Financial, or approximately 2.5% of the
outstanding, held by PSCO Partners, Capital beneficially owns 74,600
shares of the common stock of Paula Financial, or approximately 1.2%
of the outstanding, held by PSCO Partners Two and PSCO Financial, and
Philo Smith and Capital beneficially own 367,000 shares of the common
stock of Paula Financial, or approximately 5.8% of the outstanding,
held by PSCO Fund Limited.
In the past sixty days, neither PSCO Partners Two nor PSCO Fund
Limited has effected any transactions in the common stock of Paula
Financial.
In the past sixty days, PSCO Financial has effected the following
transactions in the common stock of
Paula Financial, each a purchase through a normal brokerage
transaction in the over-the-counter market:
<TABLE>
<CAPTION>
Trade Date Number of Shares Price
---------- ---------------- -----
<S> <C> <C>
8/26/98 2,000 9 3/4
9/15/98 1,500 7 1/8
</TABLE>
In the past sixty days, PSCO Partners has effected the following
transactions in the common stock of Paula Financial, each a purchase
through a normal brokerage transaction in the over-the-counter market:
<TABLE>
<CAPTION>
Trade Date Number of Shares Price
---------- ---------------- -----
<S> <C> <C>
9/01/98 25,000 6 3/8
9/03/98 25,000 7 5/16
</TABLE>
Page 12 of 15
<PAGE>
Each filing party disclaims membership with any other filing party in
a "group", as that term is used in Section 13(d)(3) of the Securities
Exchange Act of 1934 and the rules promulgated thereunder. PSCO
Partners owns its shares of Paula Financial separately from PSCO
Partners Two, PSCO Fund Limited and PSCO Financial, PSCO Financial
owns its shares of Paula Financial separately from PSCO Partners, PSCO
Partners Two and PSCO Fund Limited, and PSCO Partners Two and PSCO
Fund Limited own their respective shares of Paula Financial separately
from each other. Although they have a common investment advisor, from
whom each takes its name, and common investment goals, PSCO Partners,
PSCO Partners Two, PSCO Fund Limited and PSCO Financial have no
agreement or understanding for concerted action in acquiring, holding
or disposing of shares of the common stock of Paula Financial.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
---------------------------------------------------------------------
TO SECURITIES OF THE ISSUER.
---------------------------
Apart from the agreements and relationship described above in this
Schedule and the agreements between (a) the Company and PSCO Partners,
(b) Capital and PSCO Partners Two, (c) Capital and PSCO Fund Limited
and (d) Capital and PSCO Financial, there is no contract, arrangement,
understanding or relationship among Philo Smith, the Company, PSCO
Partners, PSCO Partners Two, PSCO Fund Limited, PSCO Financial and
Capital, nor between those parties collectively and any other person,
with respect to the common stock of Paula Financial.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
---------------------------------
Exhibit A: Consent to joint filing.
Page 13 of 15
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated this 27th day of October, 1998.
/s/ Philo Smith
Philo Smith
PHILO SMITH & CO., INC.
By: /s/ Philo Smith
Philo Smith, President
PSCO PARTNERS LIMITED PARTNERSHIP
By: /s/ Philo Smith
Philo Smith, General Partner
PSCO PARTNERS LIMITED PARTNERSHIP TWO
By: /s/ Philo Smith
Philo Smith, President of
Philo Smith Capital
Corporation, General Partner
PSCO FUND LIMITED
By: /s/ Philo Smith
Philo Smith, General Manager
PSCO FINANCIAL SERVICES FUND
By: /s/ Philo Smith
Philo Smith, General Manager
PHILO SMITH CAPITAL CORPORATION
By: /s/ Philo Smith
Philo Smith, President
Page 14 of 15
<PAGE>
EXHIBIT A
CONSENT TO JOINT FILING
The undersigned agree and confirm that the Schedule 13D with respect to the
common stock of Paula Financial to which this consent is attached as an exhibit
is, and subsequent amendments thereof will be, filed on behalf of each of the
undersigned.
Dated this 27th day of October, 1998.
/s/ Philo Smith
Philo Smith
PHILO SMITH & CO., INC.
By: /s/ Philo Smith
Philo Smith, President
PSCO PARTNERS LIMITED PARTNERSHIP
By: /s/ Philo Smith
Philo Smith, General Partner
PSCO PARTNERS LIMITED PARTNERSHIP TWO
By: /s/ Philo Smith
Philo Smith, President of
Philo Smith Capital
Corporation, General Partner
PSCO FUND LIMITED
By: /s/ Philo Smith
Philo Smith, General Manager
PSCO FINANCIAL SERVICES FUND
By: /s/ Philo Smith
Philo Smith, General Manager
PHILO SMITH CAPITAL CORPORATION
By: /s/ Philo Smith
Philo Smith, President
Page 15 of 15
