FIRST COLONY CORPORATION
SECOND QUARTER 1996
FINANCIAL SUPPLEMENT
TABLE OF CONTENTS
Quarterly Sales and Financial Summary 3&4
Per Share Analysis 5
Segment Summary 6
Operating Segment Data:
Annual Life Insurance 7
SPIA 8
Accumulation Products 9
Segment Analysis 10
Balance Sheet 11
Income Statement 12
Shareholders Equity Statement 13
Cash Flow Statement 14
Investment Summary 15, 16, 17, &
18
Analyst Coverage 19
Common Stock Data 19
Ratings 19
Questions regarding this financial report
should be referred to:
April A. Keesee, CMA
Assistant Vice President
Director - Investor Relations
Phone: (804) 948-5709
Fax: (804) 948-5749
Interim results are unaudited
First Colony Corporation
Quarterly Sales and Financial Summary
(In millions of dollars)
1996
% Change % Change
From 6 Mos. From
1st Qtr. 2nd
Qtr. Q295 1996 YTD 6 Mos 95
Life insurance sales volume: $12,135.3
$10,647.2 1% $22,782.5 7%
Premium sales:
Annual Life insurance 35.8
32.3 0% $68.1 3%
SPIA 143.8
155.8 -12% 299.6 -4%
Accumulation products 12.0
39.2 -69% 51.2 -73%
Selected Income Statement Data
Premium Revenue - Life insurance 92.1
96.9 14% 189.0 15%
- SPIA 85.4
78.8 -26% 164.2 -12%
Total premium revenue 177.5
175.7 -8% 353.2 1%
Net investment income 196.2
199.0 8% 395.2 9%
Mortality, surrender and admin. charges 27.7
29.2 14% 56.9 10%
Total revenues excluding realized gains 401.4
403.9 1% 805.3 5%
Debt service costs 3.1
3.0 0% 6.1 2%
Benefits, claims and expenses 348.1
348.2 -2% 696.3 3%
Guaranty Fund Provision 0.0
0.0 - 0.0
Pretax operating income (a) 50.2
52.7 21% 102.9 24%
Income tax on operations 17.8
18.6 22% 36.4 25%
Tax effect on Guaranty Fund Provision 0.0
0.0 - 0.0
After-tax Operating income 32.4
34.1 21% 66.5 23%
Realized gains on investments 10.3
11.0 -47% 21.3 -34%
Amortization effect related to realized gains -0.3
0.8 - 0.5 -
Income tax on realized gains 3.5
4.2 -44% 7.7 -33%
Net realized gains 6.5
7.6 -44% 14.1 -32%
Net income 38.9
41.7 0% 80.6 8%
Preferred dividends 0.9
0.9 -10% 1.8 6%
Net income avail. to common 38.0
40.8 0% 78.8 8%
Total income taxes incurred 21.3
22.8 44.1
Effective tax rate - Operations 35.3%
35.3% 35.3%
Total revenues including realized gains 411.7
414.9 -2% 826.6 4%
<FN>
(a) Excludes net realized investment gains (losses) and the effect of
related amortization.
</FN>
First Colony Corporation
Quarterly Sales and Financial Summary
(In millions of dollars)
1995
1st Qtr. 2nd
Qtr. 3rd Qtr. 4th Qtr. Year
Life insurance sales volume: $10,716.8
$10,498.7 $9,884.7 $10,380.0 $41,480.2
Premium sales:
Annual Life insurance 33.7
32.4 31.4 31.3 128.8
SPIA 135.1
177.3 168.6 186.6 667.6
Accumulation products 66.0
125.9 28.5 11.2 231.6
Selected Income Statement Data
Premium Revenue - Life insurance 79.0
85.0 85.9 94.2 344.1
- SPIA 80.7
106.1 100.2 115.5 402.5
Total premium revenue 159.7
191.1 186.1 209.7 746.6
Net investment income 179.5
184.0 191.5 192.0 747.0
Mortality, surrender and admin. charges 25.9
25.6 26.9 27.5 105.9
Total revenues excluding realized gains 365.1
400.7 404.5 429.2 1,599.5
Debt service costs 3.0
3.0 3.1 3.0 12.1
Benefits, claims and expenses 322.5
354.2 354.0 378.2 1,408.9
Guaranty Fund Provision 0.0
0.0 0.0 4.0 4.0
Pretax operating income (a) 39.6
43.5 47.4 48.0 (b) 178.5 (b)
Income tax on operations 13.9
15.3 16.6 15.5 61.3
Tax effect on Guaranty Fund Provision 0.0
0.0 0.0 1.4 1.4
After-tax Operating income 25.7
28.2 30.8 31.1 (b) 115.8 (b)
Realized gains on investments 11.5
20.9 4.6 21.9 58.9
Amortization effect related to realized gains -0.3
0.2 0.7 -0.3 0.3
Income tax on realized gains 4.0
7.5 1.8 7.7 21.0
Net realized gains 7.2
13.6 3.5 13.9 38.2
Net income 32.9
41.8 34.3 45.0 154.0
Preferred dividends 0.7
1.0 0.7 1.0 3.4
Net income avail. to common 32.2
40.8 33.6 44.0 150.6
Total income taxes incurred 17.9
22.8 18.4 23.2 82.3
Effective tax rate - Operations 35.0%
35.3% 34.9% 35.2% 35.1%
Total revenues including realized gains 376.6
421.6 409.1 451.1 1,658.4
<FN>
(a) Excludes net realized investment gains (losses) and the effect of
related amortization.
(b) Excludes $4.0 pretax ($2.6 after-tax), or $0.05 pre share guaranty fund
provision.
</FN>
First Colony Corporation
Quarterly Sales and Financial Summary
(In millions of dollars except per share data)
Actual 1996
% Change
%
CHG from
1st 2nd
FROM 6 Mos. 6 Mos.
Qtr. Qtr.
Q295 1996 YTD YTD 1995
Earnings per share ( based on 49.4 million shares):
Operating income $0.64 $0.67
22% $1.31 24%
Net realized gains and losses $0.13 $0.15
-46% $0.28 -33%
Net income available to common shareholders $0.77 $0.82
-1% $1.59 7%
%
Change % Change
from from
12/95 6/95
Selected Balance Sheet and In-Force Data:
Amounts including FASB 115
Total investments $9,305 $9,384
0% 6%
Total assets 10,718 10,841
1% 7%
Shareholders' equity 1,354 1,346
-9% 4%
Book value per common share $25.81 $25.61
-10% 4%
Amounts excluding FASB 115
Total investments $9,206 $9,353
4% 8%
Total assets 10,635 10,820
4% 9%
Shareholders' equity 1,300 1,332
4% 10%
Book value per common share $24.71 $25.33
5% 10%
Long-term debt 175 175
0% 0%
Pfd. Stock 80 80
0% 0%
Life insurance in force 185,160 191,608
8% 20%
First Colony Corporation
Quarterly Sales and Financial Summary
(In millions of dollars except per share data)
Actual 1995
1st 2nd
3rd 4th
Qtr. Qtr.
Qtr. Qtr. Year
Earnings per share ( based on 49.4 million shares):
Operating income $0.51 $0.55
$0.61 $0.61 (a) $2.28 (a)
Net realized gains and losses $0.14 $0.28
$0.07 $0.28 $0.77
Net income available to common shareholders $0.65 $0.83
$0.68 $0.84 $3.00
<FN>
(a) Excludes $0.05 per share guaranty fund provision.
</FN>
Selected Balance Sheet and In-Force Data:
Amounts including FASB 115
Total investments $8,322 $8,848
$9,033 $9,386 $9,386
Total assets 9,529 10,085
10,318 10,721 10,721
Shareholders' equity 1,139 1,299
1,340 1,484 1,484
Book value per common share $21.47 $24.69
$25.50 $28.44 $28.44
Amounts excluding FASB 115
Total investments $8,379 $8,694
$8,860 $9,017 $9,017
Total assets 9,584 9,956
10,171 10,400 10,400
Shareholders' equity 1,175 1,215
1,245 1,276 1,276
Book value per common share $22.19 $23.00
$23.57 $24.22 $24.22
Long-term debt 175 175
175 175 175
Pfd. Stock 80 80
80 80 80
Life insurance in force 152,758 160,243
166,881 176,919 176,919
PER SHARE ANALYSIS
% Change from
1Q96 2Q96 2Q95
1Q95 2Q95 3Q95 4Q95 1995
Operating Income $0.64 $0.67 22%
$0.51 $0.55 $0.61 $0.61 (a) $2.28 (a)
Net Realized Investment Gains/Losses 0.13 0.15 -46%
0.14 0.28 0.07 0.28 0.77
Net Income 0.77 0.82 -1%
0.65 0.83 0.68 0.84 3.00
Book Value per
Common Share: Including FASB 115 25.81 25.61 4%
21.47 24.69 25.50 28.44 28.44
Excluding FASB 115 24.71 25.33 10%
22.19 23.00 23.57 24.22 24.22
Shares used in
computations (000) 49,372 49,429
49,354 49,361 49,414 49,388 49,377
<FN>
(a) Excludes $0.05 per share guaranty fund provision.
</FN>
SEGMENT SUMMARY
% Change from
1Q96 2Q96 2Q95
1Q95 2Q95 3Q95 4Q95 1995
Revenues (millions)
Excluding Realized Investment Gains
and Losses:
Annual Life Insurance $ 143.0 150.4 16%
126.5 129.9 135.1 143.3 534.8
SPIA 201.5 196.7 -8%
185.2 214.7 212.7 229.6 842.2
Accumulation Products 56.9 56.8 1%
53.4 56.1 56.7 56.3 222.5
TOTAL $ 401.4 403.9 1%
365.1 400.7 404.5 429.2 1,599.5
Operating Earnings (millions)
Excluding Realized Investment Gains
and Losses:
Annual Life Insurance $ 23.9 28.6 26%
19.1 22.7 25.9 22.7 (a) 90.4 (a)
SPIA 14.1 10.2 -1%
11.0 10.3 11.0 12.6 (a) 44.9 (a)
Accumulation Products 12.2 13.9 32%
9.5 10.5 10.5 12.7 (a) 43.2 (a)
TOTAL $ 50.2 52.7 21%
39.6 43.5 47.4 48.0 (a) 178.5 (a)
Assets (including FASB 115)
Annual Life Insurance $ 2,224.9 2,301.3 17%
1,887.6 1,963.6 2,018.5 2,129.3 2,129.3
SPIA 5,806.3 5,856.8 9%
5,071.7 5,368.2 5,538.5 5,822.8 5,822.8
Accumulation Products 2,686.8 2,683.0 -3%
2,569.3 2,753.2 2,760.6 2,768.5 2,768.5
$10,718.0 10,841.1 7%
9,528.6 10,085.0 10,317.6 10,720.6 10,720.6
Assets (excluding FASB 115)
Annual Life Insurance $ 2,227.5 2,277.1 16%
1,899.4 1,956.0 2,007.7 2,107.4 2,107.4
SPIA 5,761.4 5,882.4 11%
5,112.9 5,305.9 5,460.7 5,631.8 5,631.8
Accumulation Products 2,645.7 2,660.1 -1%
2,571.3 2,694.5 2,702.2 2,661.0 2,661.0
$10,634.6 10,819.6 9%
9,583.6 9,956.4 10,170.6 10,400.2 10,400.2
<FN>
(a) Excluding $4.0 pretax ($2.6 after-tax), or $0.05 per share guaranty fund
provision.
</FN>
OPERATING SEGMENT DATA
ANNUAL LIFE INSURANCE
Dollars in millions. % Change from
1Q96 2Q96 2Q95
1Q95 2Q95 3Q95 4Q95 1995
Ordinary Life Insurance Sales:
Volume $ 12,126.0 10,632.1 2%
10,679.0 10,401.5 9,844.8 10,367.7 41,293.0
Premium $ 35.8 32.3 0%
33.7 32.4 31.4 31.3 128.8
# Policies 43,889 37,740 -9%
40,010 41,307 38,595 39,623 159,535
Life Insurance in Force
by Face Amount $ 185,160 191,608 20%
152,758 160,243 166,881 176,919 176,919
Revenues:
Operating $ 143.0 150.4 16%
126.5 129.9 135.1 143.3 534.8
Realized Investment Gains
and Losses (net) $ 0.2 2.6 -72%
5.7 9.4 1.3 0.6 17.0
Income Before Income Taxes:
Operating $ 23.9 28.6 26%
19.1 22.7 25.9 22.7 (a) 90.4 (a)
Realized Investment Gains
and Losses (net) $ 0.2 2.6 -72%
5.7 9.4 1.3 0.6 17.0
DAC Amortization $ 0.0 0.2 -33%
0.0 0.3 (0.2) 0.0 0.1
Assets (including FASB 115) $ 2,224.9 2,301.3 17%
1,887.6 1,963.6 2,018.5 2,129.3 2,129.3
(excluding FASB 115) $ 2,227.5 2,277.1 16%
1,899.4 1,956.0 2,007.7 2,107.4 2,107.4
<FN>
(a) Excluding $1.1 pretax ($0.7 after-tax), or $0.01 per share guaranty fund
provision.
</FN>
OPERATING SEGMENT DATA
SINGLE PREMIUM IMMEDIATE
ANNUITIES
Dollars in millions.
% Change from
1Q96 2Q96 2Q95
1Q95 2Q95 3Q95 4Q95 1995
Premium Sales: $ 143.8 155.8 -12%
135.1 177.3 168.6 186.6 667.6
# Contracts Sold: 1,356 1,643 -10%
1,674 1,824 1,708 1,813 7,019
Revenues:
Operating $ 201.5 196.7 -8%
185.2 214.7 212.7 229.6 842.2
Realized Investment Gains
and Losses (net) $ 12.5 9.3 -6%
4.4 9.9 5.2 19.4 38.9
Income Before Income Taxes:
Operating $ 14.1 10.2 -1%
11.0 10.3 11.0 12.6 (a) 44.9 (a)
Realized Investment Gains
and Losses (net) $ 12.5 9.3 -6%
4.4 9.9 5.2 19.4 38.9
DAC Amortization $ 0.0 0.0 0%
0.0 0.0 0.0 0.0 0.0
Assets (including FASB 115) $ 5,806.3 5,856.8 9%
5,071.7 5,368.2 5,538.5 5,822.8 5,822.8
(excluding FASB 115) $ 5,761.4 5,882.4 11%
5,112.9 5,305.9 5,460.7 5,631.8 5,631.8
<FN>
(a) Excluding $2.3 pretax ($1.5 after-tax), or $0.03 per share guaranty fund
provision.
</FN>
OPERATING SEGMENT DATA
ACCUMULATION PRODUCTS*
Dollars in millions.
% Change from
1Q96 2Q96 2Q95
1Q95 2Q95 3Q95 4Q95 1995
Premium Sales: $ 12.0 39.2 -69%
66.0 125.9 28.5 11.2 231.6
# Contracts Sold: 296 762 -58%
1,442 1,794 1,005 245 4,486
Revenues:
Operating $ 56.9 56.8 1%
53.4 56.1 56.7 56.3 222.5
Realized Investment Gains
and Losses (net) $ (2.4) (0.9) -156%
1.4 1.6 (1.9) 1.9 3.0
Income Before Income Taxes:
Operating $ 12.2 13.9 32%
9.5 10.5 10.5 12.7 (a) 43.2 (a)
Realized Investment Gains
and Losses (net) $ (2.4) (0.9) -156%
1.4 1.6 (1.9) 1.9 3.0
DAC Amortization $ (0.3) 0.6
(0.3) (0.1) 0.9 (0.3) 0.2
Assets (including FASB 115) $ 2,686.8 2,683.0 -3%
2,569.3 2,753.2 2,760.6 2,768.5 2,768.5
(excluding FASB 115) $ 2,645.7 2,660.1 -1%
2,571.3 2,694.5 2,702.2 2,661.0 2,661.0
<FN>
* Accumulation Products include Single Premium Deferred Annuities and
Single Premium Whole Life Insurance.
</FN>
<FN>
(a) Excluding $0.6 pretax ($0.4 after-tax), or $0.01 per share guaranty fund
provision.
</FN>
SEGMENT ANALYSIS
Reserves (billions)
At June 30, 1995 At June 30,
1996
Total Reserves $8.1 Total Reserves
$8.8
% of
% of
Segment Reserves Total Segment
Reserves Total
Life $1.3 16.0% Life
$1.4 15.9%
Accumulation Products $2.5 30.9%
Accumulation Products $2.5 28.4%
Immediate Annuities $4.3 53.1% Individual
Annuities $4.9 55.7%
Operating Earnings
Six Months YTD Six Months YTD
At June 30, 1995 At June 30, 1996
% of %
of
Segment Total Segment
Total
Life 50.3% Life
51.0%
Accumulation Products 24.1% Accumulation Products
25.4%
Immediate Annuities 25.6% Immediate Annuities
23.6%
FIRST COLONY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(1996 Unaudited)
June 30 December 31
1996 1995
Investments:
Fixed maturities held to maturity, at
amortized cost:
Bonds (Fair value: 1996, $4,223,121;
1995, $4,660,947) $ 4,032,551 $ 4,070,476
Fixed maturities available for sale,
at fair value:
Bonds (Amortized cost: 1996, $4,678,704;
1995, $4,242,361) 4,709,322 4,602,319
Preferred stock, redeemable (Amortized
cost: 1996, $73,698; 1995, $77,465) 81,748 96,479
Equity securities, at market value
Preferred stock, nonredeemable (cost: 1996,
$230,933; 1995, $274,328) 256,721 321,118
Common stock (cost: 1996, $29,594;
1995, $28,476) 37,125 32,935
Other invested assets 267,002 262,651
Total investments 9,384,469 9,385,978
Cash and cash equivalents 42,456 46,125
Accrued investment income 165,478 161,689
Deferred policy acquisition costs 977,361 874,586
Reinsurance receivable 126,106 115,344
Other assets and goodwill 145,213 136,887
Total assets $10,841,083 $10,720,609
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Policy liabilities and policyholder funds 8,989,095 8,639,242
Other liabilities 117,233 93,881
Long-term debt 174,852 174,843
Deferred income taxes 214,010 328,238
Total liabilities 9,495,190 9,236,204
Shareholders' equity:
Preferred stock 80,000 80,000
Common stock 312,917 312,888
Net unrealized appreciation
of fixed maturities 13,937 208,288
Net unrealized appreciation
of equity securities 22,989 34,644
Retained earnings unappropriated 916,050 848,585
Total shareholders' equity 1,345,893 1,484,405
Total liabilities and shareholders' equity $10,841,083 $10,720,609
FIRST COLONY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
Three months ended Six
months ended
June 30
June 30
1996 1995 1996
1995
Revenues:
Life insurance premiums $ 96,862 $ 84,978 $ 188,968
$ 163,988
Life contingent annuity premiums 78,879 106,069 164,239
186,791
Total premiums 175,741 191,047 353,207
350,779
Net investment income 198,925 184,055 395,156
363,522
Mortality, surrender &
administrative charges 29,172 25,619 56,897
51,484
Realized gains on investments 11,008 20,909 21,309
32,377
Total revenues 414,846 421,630 826,569
798,162
Benefits:
Life and annuity benefits paid 131,353 123,003 264,841
240,356
Increase in reserves 175,098 196,269 349,756
366,433
Total benefits 306,451 319,272 614,597
606,789
Expenses:
Commissions 8,648 9,103 16,625
17,852
General and administrative and
other expenses 17,942 16,492 35,382
32,281
Amortization of intangible assets 14,248 9,128 29,140
19,823
Debt service cost 3,052 3,024 6,121
6,049
Total expenses 43,890 37,747 87,268
76,005
Total benefits and expenses 350,341 357,019 701,865
682,794
Income before income taxes 64,505 64,611 124,704
115,368
Income taxes 22,800 22,850 44,076
40,672
Net income 41,705 41,761 80,628
74,696
Dividends on preferred stock 935 997 1,823
1,746
Earnings available for common
shareholders $ 40,770 $ 40,764 $ 78,805
$ 72,950
Net income per share of common
stock $ 0.82 $ 0.83 $ 1.59
$ 1.48
Cash dividends paid per share of
common stock $ 0.115 $ 0.100 $ 0.230
$ 0.200
Shares used to compute net income
per share of common stock 49,429 49,361 49,429
49,361
FIRST COLONY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In Thousands)
(Unaudited)
Six Months Ended
June 30
1996 1995
Shares Amounts Shares
Amounts
Preferred Stock, no par value
(authorized 15,000 shares
issued and outstanding 3,200)
Beginning and ending balance 3,200 $ 80,000 3,200 $
80,000
Common Stock, no par value
(authorized 150,000 shares issued
and outstanding 49,303 in 1996
and 49,302 in 1995)
Beginning balance 49,302 $ 312,888 49,301 $
312,879
Exercise of stock options 1 29 1
9
Ending balance 49,303 312,917 49,302
312,888
Net unrealized appreciation
(depreciation) of fixed maturities:
Beginning balance 208,288
(114,937)
Net change in unrealized gains
(losses) net of (i) deferred
taxes (benefit) of ($104,650) in 1996
and $106,924 in 1995; (ii) deferred
policy acquisition costs of
($38,800) in 1996 and $52,500 in
1995. (194,351)
198,575
Ending balance, net of (i)
deferred taxes (benefit) of $7,505 in
1996 and $45,035 in 1995; (ii)
deferred policy acquisition
costs of $10,000 in 1996 and
$25,500 in 1995. 13,937
83,638
Net unrealized appreciation of
equity securities:
Beginning balance 34,644
16,293
Net change in unrealized gains
(losses) net of deferred taxes (benefit)
of ($6,275) in 1996 and $12,085
in 1995. (11,655)
22,443
Ending balance, net of deferred
taxes of $10,330 in 1996 and
$18,809 in 1995. 22,989
38,736
Retained earnings:
Beginning balance 848,585
720,307
Net income 80,628
74,696
Cash dividends to shareholders:
Preferred stock (1,823)
(1,746)
Common stock (11,340)
(9,860)
Ending balance 916,050
783,397
Total shareholders' equity $1,345,893
$1,298,659
FIRST COLONY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Six Months Ended
June 30
1996 1995
Cash and cash equivalents at beginning of period $ 46,125 $ 54,817
Cash flows from operating activities:
Net income 80,628 74,696
Adjustments to reconcile net income to cash
provided from operating activities:
Increase in policy liabilities
and accruals 193,853 263,517
Depreciation, depletion and amortization 31,997 22,546
Federal income taxes (6,224) 23,316
Accrual of discounts on fixed maturities (52,833) (49,389)
Deferred policy acquisition costs (92,121) (101,418)
Realized gains on investments (21,309) (32,377)
Other (3,188) (15,802)
Net cash provided from
operating activities 130,803 185,089
Cash flows used in investing activities
Fixed maturities available-for-sale:
Purchases (674,849) (606,635)
Sales 105,909 224,507
Maturities, calls and redemptions 155,462 60,244
Fixed maturities held-to-maturity:
Purchases (72,034) (297,815)
Maturities, calls and redemptions 152,958 56,704
Purchase of other investments (3,325) (31,558)
Sale or maturity of other investments 54,783 72,971
Other (9,640) (24,443)
Net cash used by
investing activities (290,736) (546,025)
Cash flows from financing activities:
Investment contracts 104,147 245,597
Universal life contracts 42,505 83,003
Dividend to shareholders (7,488) (11,653)
Other 17,100 9
Net cash provided from
financing activities 156,264 316,956
Decrease in cash and cash equivalents (3,669) (43,980)
Cash and cash equivalents at end of period $ 42,456 $ 10,837
INVESTMENT SUMMARY
Bond and Note Portfolio
Quality Ratings by Par Value
At June 30, 1996 At December 31, 1995
Quality % of Quality % of
Rating Portfolio Rating
Portfolio
Aaa 23% Aaa 26%
Aa 9% Aa 7%
A 37% A 37%
Baa 29% Baa 28%
below Baa 2% below Baa 2%
Bond Portfolio Composition
by Par Value
At June 30, 1996 At December 31,
1995
% of % of
Type Portfolio Type
Portfolio
Public Bonds 58% Public Bonds
56%
Private Placements 26% Private Placements
27%
CMOs 16% CMOs
17%
INVESTMENT SUMMARY
Book Value of Securities Called/Prepaid
($ millions)
Bonds CMO's
Period Book Value Period Book
Value
1Q94 $ 107 1Q94 $ 185
2Q94 $ 64 2Q94 $ 58
3Q94 $ 25 3Q94 $ 23
4Q94 $ 12 4Q94 $ 24
1Q95 $ 19 1Q95 $ 10
2Q95 $ 35 2Q95 $ 22
3Q95 $ 30 3Q95 $ 23
4Q95 $ 99 4Q95 $ 27
1Q96 $ 61 1Q96 $ 50
2Q96 $ 84 2Q96 $ 67
Bonds Currently Callable in 1996
Book Value:
- $767 million - Total
- $396 million - With Coupons in Excess of 8.00%
- $168 million - With Coupons in Excess of 9.00%
Portfolio at June 30, 1996
($ millions)
Carrying % of
Value Total
Bonds $8,741.9 92.7
Preferred Stock 338.5 3.6
Common Stock 37.1 0.4
Mortgage Loans 0.2 0.0
Real Estate 4.5 0.0
Policy Loans 216.9 2.3
Other 33.5 0.4
Cash and Short Term 54.3 0.6
$9,426.9 100.0
INVESTMENT SUMMARY
QUARTERLY PRE-TAX REALIZED GAINS/LOSSES
Gains/Losses
Period (in millions)
1Q94 $ 24.3
2Q94 $ 1.7
3Q94 $ (3.1)
4Q94 $ (35.0)
1Q95 $ 11.5
2Q95 $ 20.9
3Q95 $ 4.6
4Q95 $ 21.9
1Q96 $ 10.3
2Q96 $ 11.0
PORTFOLIO YIELD
(excluding FASB 115)
Period Yield
88 11.3%
89 11.2%
90 10.7%
91 10.4%
92 10.3%
93 9.8%
94 8.9%
95 8.9%
1Q96 8.8%
2Q96 8.8%
INVESTMENT SUMMARY
Bond Portfolio Par Value by Coupon
6/30/96 (000,000)
Total CMO/Mtg Cum
Public Private Bonds Backed Total % %
> 11% $ 35 $ 297 $ 332 $ 1 $ 333 3.4 % 3.4 %
10% 82 257 339 21 360 3.7 % 7.1 %
9% 417 757 1,174 188 1,362 13.9 % 21.0 %
8% 1,258 455 1,713 399 2,112 21.5 % 42.5 %
7% 2,274 363 2,637 625 3,262 33.2 % 75.7 %
< 6% 650 241 891 342 1,233 12.5 % 88.2 %
0% 949 215 1,164 0 1,164 11.8 % 100.0 %
$ 5,665 $ 2,585 $ 8,250 $ 1,576 $ 9,826 100.0 %
Bond Portfolio Par Value by Coupon
12/31/95
Total CMO/Mtg Cum
Public Private Bonds Backed Total % %
> 11% $ 35 $ 292 $ 327 $ 1 $ 328 3.5 % 3.5 %
10% 88 291 379 33 412 4.4 % 7.9 %
9% 493 765 1,258 215 1,473 15.6 % 23.5 %
8% 1,276 424 1,700 467 2,167 23.0 % 46.5 %
7% 1,917 339 2,256 607 2,863 30.3 % 76.8 %
< 6% 548 203 751 280 1,031 10.9 % 87.7 %
0% 953 214 1,167 0 1,167 12.3 % 100.0 %
$ 5,310 $ 2,528 $ 7,838 $ 1,603 $ 9,441 100.0 %
CMO Portfolio by Underlying Collateral Rate
6/30/96
Book Par
< 7.5% $ 284.3 $ 308.6
7.5 - 8.5 441.5 463.0
8.5 - 9.5 441.5 456.1
> 9.5% 308.3 320.5
$ 1,475.6 $ 1,548.2
CMO Portfolio by Underlying Collateral Rate
12/31/95
Book Par
< 7.5% $ 246.3 $ 266.4
7.5 - 8.5 457.2 478.0
8.5 - 9.5 467.6 484.6
> 9.5% 334.7 348.2
$ 1,505.8 $ 1,577.2
ANALYST COVERAGE
A. G. Edwards Jeffrey Hopson
Conning & Company Paul Goulekas
CS First Boston Vanessa Wilson
Davenport & Company David West
Fox-Pitt, Kelton Ronald McIntosh
Lehman Brothers Edward Spehar
Merrill Lynch Margaret Alexandre
Morgan Stanley Michael Blumstein
Oppenheimer & Company Eric Berg
Robinson-Humphrey Thomas Rosencrants
Sanford Bernstein Sallie Krawcheck
Schroder Wertheim Andrew Kligerman
Scott & Stringfellow Neal Kaplan
COMMON STOCK DATA
1Q96 2Q96 1Q95 2Q95 3Q95
4Q95
High 26 1/4 32 23 24 7/8 27
3/4 28 7/8
Low 23 5/8 23 3/4 20 3/4 21 23
5/8 24
Closing 23 7/8 31 22 5/8 24 27
1/8 25 3/8
Avg. Daily Volume 74,935 155,254 64,862 100,379
56,349 72,498
Dividends per share .115 .115 .10 .10 .10
.10
Shares Outstanding (millions)49.4 49.4 49.3 49.4 49.4
49.4
FINANCIAL STRENGTH RATINGS
A. M. Best A++
Duff & Phelps AA+
Moody's Aa3
S&P AA-