UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities and Exchange Act of 1934
Date of Report: June 29, 1996
ACORDIA, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
33-48691
(Commission File Number)
31-1278880
(IRS Employer Identification Number)
120 Monument Circle
Indianapolis, Indiana 46204
(Address of principal executive offices and zip code)
(317)488-6666
(Registrant's telephone number, including area code)
Page 1 of 16
AMENDMENT NO. 1
---------------
The undersigned registrant hereby amends the following items, financial
statements or other portions of its Annual Report on Form 10-K for the fiscal
year ended December 31, 1995, as set forth below:
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
------------------------------------------------------------------------
(c) Information required by Form 11-K for registrant's Retirement
Savings Plan.
Financial Statement and Exhibits
--------------------------------
(a) Financial Statements:
See Index to Financial Statements
(b) Exhibits:
1. Consent of Independent Auditors (See Index to
Financial Statements).
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereundo duly authorized.
Acordia, Inc.
-------------
(Registrant)
By: /S/ Robert S. Schneider
------------------------
Senior Vice President and Controller
ACORDIA 401(k) LONG TERM SAVINGS INVESTMENT PLAN
INDEX TO
--------
FINANCIAL STATEMENTS AND EXHIBITS
---------------------------------
Page
Reference
---------
REPORT OF INDEPENDENT AUDITORS 6
STATEMENTS OF NET ASSETS AVAILABLE FOR 7
BENEFITS DECEMBER 31, 1995 and 1994
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE 8
FOR BENEFITS DECEMBER 31, 1995
NOTES TO FINANCIAL STATEMENTS 10
CONSENT OF INDEPENDENT AUDITORS 16
[LETTERHEAD OF ERNST & YOUNG LLP]
Report of Independent Auditors
Board of Directors
Acordia, Inc.
We have audited the accompanying statements of net assets available for
benefits, with fund information, of the Acordia 401(k) Long Term Savings
Investment as of December 31, 1995 and 1994, and the related statements of
changes in net assets available for benefits, with fund information, for the
years then ended. 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 audit 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 benefits, with fund
information, of the Plan at December 31, 1995 and 1994 and the changes in its
net assets available for benefits, with fund information, for the years then
ended, in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The Fund Information in the statements of net
assets available for benefits and the statements of changes in net assets
available for benefits is presented for purposes of additional analysis rather
than to present the net assets available for benefits and changes in net assets
available for benefits of each fund. The Fund information has been subjected to
the auditing procedures applied in our audits of the financial statements and,
in our opinion, are fairly stated in all material respects in relation of the
financial statements taken as a whole.
June 14, 1996
/s/ Ernst & Young LLP
Financial Statements
Acordia 401(k) Long Term Savings
Investment Plan
Years Ended December 31, 1995 and 1994
With Report of Independent Auditors
Acordia 401(k) Long Term Savings Investment Plan
Financial Statements
Years Ended December 31, 1995 and 1994
Contents
Report of Independent Auditors............................................... 1
Audited Financial Statements
Statements of Net Assets Available for Benefits, With Fund Information....... 2
Statement of Changes in Net Assets Available for Benefits, With Fund
Information................................................................. 3
Notes to Financial Statements................................................ 5
Acordia 401(k) Long Term Savings Investment Plan
Statements of Net Assets Available for Benefits, With Fund Information
Fund Information
------------------------------------------------------------------
Vanguard
Investment Vanguard Vanguard Vanguard
Contract Wellington Extended Institutional
Trust Fund Fund Market Fund Index Fund
------------------------------------------------------------------
December 31, 1995
Assets
Investment in Master Trust $ 17,369,937 $ 18,170,964 $ 891,762 $ 17,430,312
Cash -- -- -- --
Contributions receivable (advance contributions) 11,705 109,682 14,143 4,534
-----------------------------------------------------------------
Total assets and net assets available for benefits $ 17,381,642 $ 18,280,646 $ 905,905 $ 17,434,846
=================================================================
December 31, 1994
Assets
Investment in Master Trust $ 13,035,271 $ 7,633,343 $ -- $ 7,591,726
Contributions receivable (advance contributions) (14,863) 51,155 -- (14,139)
-----------------------------------------------------------------
Total assets and net assets available for benefits $ 13,020,408 $ 7,684,498 $ -- $ 7,577,587
=================================================================
Fund Information
------------------------------------------------------------------
Templeton
Vanguard Fidelity Institutional
Bond Magellan Foreign Acordia, Inc.
Index Fund Fund Equity Fund Stock Fund
-----------------------------------------------------------------
December 31, 1995
Assets
Investment in Master Trust $ 218,720 $ 2,065,348 $ 250,762 $ 5,118,365
Cash -- -- -- --
Contributions receivable (advance contributions) 17,326 64,263 (5,940) 36,108
-----------------------------------------------------------------
Total assets and net assets available for benefits $ 236,046 $ 2,129,611 $ 244,822 $ 5,154,473
=================================================================
December 31, 1994
Assets
Investment in Master Trust $ -- $ -- $ -- $ 3,891,892
Contributions receivable (advance contributions) -- -- -- 76,512
-----------------------------------------------------------------
Total assets and net assets available for benefits $ -- $ -- $ -- $ 3,968,404
=================================================================
Fund Information
----------------
Loan Fund Cash Total
-------------------------------------------------
December 31, 1995
Assets
Investment in Master Trust $ 2,567,175 $ -- $ 64,083,345
Cash -- 309,876 309,876
Contributions receivable (advance contributions) -- -- 251,821
-------------------------------------------------
Total assets and net assets available for benefits $ 2,567,175 $ 309,876 $ 64,645,042
=================================================
December 31, 1994
Assets
Investment in Master Trust $ 1,653,653 $ -- $ 33,805,885
Contributions receivable (advance contributions) -- -- 98,665
-------------------------------------------------
Total assets and net assets available for benefits $ 1,653,653 $ -- $ 33,904,550
=================================================
See accompanying notes.
Acordia 401(k) Long Term Savings Investment Plan
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Year ended December 31, 1995
----------------------------------------------------------------------------------------------
Fund Information
----------------------------------------------------------------------------------------------
Vanguard Templeton
Investment Vanguard Vanguard Vanguard Vanguard Fidelity Instutional
Contract Wellington Extended Institutional Bond Magellan Foreign
Trust Fund Fund Market Fund Index Fund Index Fund Fund Equity Fund
----------------------------------------------------------------------------------------------
Additions:
Employee contributions $ 3,224,744 $ 4,013,058 $ 46,606 $ 3,575,266 $ 9,996 $ 135,873 $ 11,278
Employer contributions 834,345 802,990 9,701 790,582 3,744 41,065 3,586
Employee transfers from other plans 3,150,247 3,709,037 7,269 2,730,946 28,316 115,632 1,660
Equity in earnings of Master Trust 991,294 3,791,245 23,029 4,027,335 5,788 (19,970) (871)
----------------------------------------------------------------------------------------------
8,200,630 12,316,330 86,605 11,124,129 47,844 272,600 15,653
Deductions:
Benefit payments 1,829,225 1,160,414 -- 949,225 163 29,093 6,739
----------------------------------------------------------------------------------------------
6,371,405 11,155,916 86,605 10,174,904 47,681 243,507 8,914
Transfers between funds (2,010,171) (559,768) 819,300 (317,645) 188,365 1,886,104 235,908
----------------------------------------------------------------------------------------------
Net increases 4,361,234 10,596,148 905,905 9,857,259 236,046 2,129,611 244,822
Net assets available for benefits at
beginning of year 13,020,408 7,684,498 -- 7,577,587 -- -- --
----------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $ 17,381,642 $18,280,646 $ 905,905 $17,434,846 $ 236,046 $ 2,129,611 $ 244,822
==============================================================================================
------------------------------
------------------------------
Acordia, Inc.
Stock Fund Loan Fund Cash Total
--------------------------------------------------------
Additions:
Employee contributions $1,285,097 $ -- $ 9,428 $12,311,146
Employer contributions 302,463 -- -- 2,788,476
Employee transfers from other plans 827,586 454,777 -- 11,025,470
Equity in earnings of Master Trust (409,532) 145,876 -- 8,554,194
--------------------------------------------------------
2,005,614 600,653 9,428 34,679,486
Deductions:
Benefit payments 264,583 -- (300,448) 3,938,994
--------------------------------------------------------
1,741,031 600,653 (309,876) 30,740,492
Transfers between funds (554,962) 312,869 -- --
--------------------------------------------------------
Net increases 1,186,069 913,522 309,876 30,740,492
Net assets available for benefits at 3,968,404 1,653,653 -- 33,904,550
beginning of year
--------------------------------------------------------
Net assets available for benefits at
end of year $5,154,473 $2,567,175 $ 309,876 $64,645,042
========================================================
See accompanying notes.
Acordia 401(k) Long Term Savings Investment Plan
Statement of Changes in Net Assets Available for Benefits,
With Fund Information (continued)
Year Ended December 31, 1994
----------------------------------------------------------------------------------
Fund Information
----------------------------------------------------------------------------------
Vanguard
Investment Vanguard Vanguard Vanguard
Contract Wellington Index Institutional
Trust Fund Fund Trust Fund Index Fund
----------------------------------------------------------
Additions:
Employee contributions $ 1,801,695 $ 1,363,904 $ 1,291,747 $ 47,941
Employer contributions 636,484 413,310 417,349 13,209
Equity in earnings of Master Trust 724,396 (26,638) 10,434 82,293
----------------------------------------------------------
3,162,575 1,750,576 1,719,530 143,443
Deductions:
Benefit payments 1,374,686 397,705 436,851 10,756
----------------------------------------------------------
1,787,889 1,352,871 1,282,679 132,687
Transfers between funds (215,166) 38,351 (7,565,757) 7,444,900
----------------------------------------------------------
Net increases (decreases) 1,572,723 1,391,222 (6,283,078) 7,577,587
Net assets available for benefits at
beginning of year 11,447,685 6,293,276 6,283,078 --
----------------------------------------------------------
Net assets available for benefits at end of year $ 13,020,408 $ 7,684,498 $ -- $ 7,577,587
==========================================================
Acordia, Inc.
Stock Fund Loan Fund Total
--------------------------------------------
Additions:
Employee contributions $ 522,859 $ -- $ 5,028,146
Employer contributions 162,930 -- 1,643,282
Equity in earnings of Master Trust 921,046 70,586 1,782,117
--------------------------------------------
1,606,835 70,586 8,453,545
Deductions:
Benefit payments 170,287 -- 2,390,285
--------------------------------------------
1,436,548 70,586 6,063,260
Transfers between funds 106,230 191,442 --
--------------------------------------------
Net increases (decreases) 1,542,778 262,028 6,063,260
Net assets available for benefits at
beginning of year 2,425,626 1,391,625 27,841,290
--------------------------------------------
Net assets available for benefits at end of year $ 3,968,404 $ 1,653,653 $ 33,904,550
============================================
See accompanying notes.
Acordia 401(k) Long Term Savings Investment Plan
Notes to Financial Statements
December 31, 1995
1. Accounting Policies
Investments
The assets of the Acordia 401(k) Long Term Savings Investment Plan (the "Plan")
are held in common with plans of affiliates using a master trust arrangement
which is administered by the Bank of New York (the "Trustee"). Contributions
are invested in common stock of Acordia, Inc., five separate Vanguard Group
Mutual Funds, a Fidelity Magellan Fund and a Templeton Institutional Foreign
Equity Fund. The Acordia, Inc. common stock and the remaining funds are traded
on a national securities exchange and are valued at the last reported sales
price on the last business day of the plan year. Realized gains and losses on
investments sold or redeemed were determined on the basis of average cost.
The Plan also invests in group annuity contracts which are held in the Vanguard
Investment Contract Trust Fund. The group annuity contracts are carried at
cost, which approximates market, adjusted for interest credited and benefit
payments. Interest credited to these contracts have been at rates ranging from
8.48% to 9.25% for 1995 and 7.61% to 9.25% for 1994. At December 31, 1995, the
group annuity contract held has a maturity date of February 29, 1996 and has a
minimum interest guarantee of 8.48% compounded annually.
Contributions
Contributions are recorded as additions to net assets available for plan
benefits on a bi-weekly basis as the Plan sponsor authorizes and accrues such
contributions.
Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service
dated March 21, 1996 stating that the Plan is qualified as defined by Section
401(a) of the Internal Revenue Code of 1986 (the "Code") and, therefore, is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code and ERISA to maintain its tax-exempt status. The
administrator is not aware of any course of action or series of events that have
occurred that might adversely affect the Plans qualified status.
5
Acordia 401(k) Long Term Savings Investment Plan
Notes to Financial Statements (continued)
1. Accounting Policies (continued)
Cash
Cash is held by the trustee and represents investments which have been
liquidated for benefit distributions that have been processed and approved for
payment prior to December 31 but not paid, as well as cash contributions
received but not invested in funds as of December 31.
Use of Estimates
Preparation of the financial statements requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
Administration of the Plan
Trustees are appointed by the Plan sponsor to administer the Plan. The Plan
sponsor bears all costs associated with administering the Plan.
2. Description of the Plan
During 1995, due to certain changes in the corporate structure, employees of
Blue Cross Blue Shield of Kentucky, Inc. and AdminiStar Solutions, Inc., chose
to transfer participation from The Associated Group 401(k) Long Term Savings
Investment Plan to the Plan. Assets transferred were approximately $11 million
and are included in employee transfers from other plans.
The Plan is a defined contribution plan which was established to provide savings
opportunities for participants and their beneficiaries. Substantially all
employees of Acordia, Inc. meeting certain employment requirements are eligible
to participate. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
Employees may make voluntary pre-tax contributions of 1% to 16% of compensation,
as defined, through periodic payroll deductions. Maximum contributions are
limited by applicable IRS regulations. The Company will match up to 50% of the
first 6% of the participant's pre-tax contribution.
6
Acordia 401(k) Long Term Savings Investment Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
A participant may direct the investment of amounts held in his accounts in
percentages of ten percent, except for the Acordia, Inc. stock fund which is
limited to a maximum of 50%, in one or more of the following investment funds:
The Vanguard Investment Contract Trust and the Vanguard Bond Index Fund (fixed
income funds); The Vanguard Wellington Balanced Fund (a combination of common
stock and fixed income securities); The Vanguard Extended Market Fund, The
Vanguard Institutional Index Portfolio, The Fidelity Magellan Fund, and The
Templeton Foreign Equity Fund (equity securities funds); and The Acordia, Inc.
Stock Fund (common stock of Acordia, Inc.), Participants may elect to make
changes to their investment designation. However, participants can only make
changes to their investment designation once every month.
A participant in the Plan may make a complete or partial withdrawal of the
amounts held in the participant's account attributable to the participant's pre-
tax contributions, income allocated to the pre-tax contribution account prior to
January 1, 1989, and up to 100% of employer match and rollover account at any
time and will be paid as of the last valuation date. The withdrawal must be
necessary in light of immediate and heavy financial needs of the participant and
the participant shall have obtained all other withdrawals and nontaxable loans
provided by the Plan. Only two withdrawals are permitted during any plan year;
during the twelve months following a withdrawal, employee contributions are
suspended for withdrawals on the participants pre-tax account. A participant
may make a withdrawal of voluntary after-tax contributions at any time.
Additionally, at age 59 1/2, a participant may withdraw participant and employer
contributions for any reason subject to the two withdrawal per year limit.
A participant in the Plan may request a loan not in excess of the lesser of: (1)
50% of the vested account balance or (2) $50,000. A participant may have a
maximum of one loan outstanding at any time. Repayment of loans shall not exceed
five years except for loans used to acquire the participant's principal
residence which shall not exceed ten years. Each loan bears interest equal to
the prime lending rate of The Bank of New York and repayments are made by
payroll deduction.
Upon termination of employment, the participant is entitled to receive the full
vested current value of his account. If the current value of the vested account
is less than $3,500, the account is paid in a lump sum payment. If the vested
account value is more than $3,500, the participant may elect to keep savings in
the Plan. The account must be distributed by the year following attainment of
age 70 1/2.
7
Acordia 401(k) Long Term Savings Investment Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
Upon death, payments are made to the participant's beneficiary in the form of a
lump sum payment or in installments.
The Plan is sponsored by the participating employers. The Plan sponsor has the
right to terminate the Plan. In the event the Plan is terminated, each
participant's account shall be nonforfeitable with respect to both the
participant's and the Plan sponsor's contributions and the net assets are to be
set aside for the payment of withdrawals to the participants. The Plan sponsor
has the right to suspend contributions to the Plan at any time, either
permanently or temporarily for any length of time.
More detailed information concerning the Plan may be found by consulting the
Summary Plan Description, which is available from the Plan Administrator.
3. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of benefit payments per the 1995 financial
statements to the 1995 Form 5500:
Benefit payments per the financial statements $ 3,938,994
Amounts allocated to withdrawing participants at
end of year 300,448
---------------
Benefit payments per the Form 5500 $ 4,239,442
===============
Amounts allocated to withdrawing participants are recorded in the Form 5500 for
benefit distributions that have been processed and approved for payment prior to
December 31 but not paid. At December 31, 1994 there were no unpaid
distributions.
4. Investments
The Plan's investments are held in common with the investments of plans of
affiliates using a master trust (the "Trust") arrangement with the Trustee.
Summarized information relating to the Trust's investments and results of
operations is listed below.
8
Acordia 401(k) Long Term Savings Investment Plan
Notes to Financial Statements (continued)
4. Investments (continued)
The fair value of individual investments that represent 5% or more of the
Trust's assets are as follows:
December 31
1995 1994
----------------------------
Vanguard Investment Contract Trust Fund:
Vanguard Variable Rate Trust $ 61,072,432 $ 66,436,330
Vanguard Wellington Fund 51,462,550 35,611,769
Vanguard Institutional Index Fund 41,817,198 26,507,750
CIGNA Guaranteed Long-Term Fund 12,086,009 --
----------------------------
$166,438,189 $128,555,849
============================
The Trust's investments (including investments bought, sold, as well as held
during the year) appreciated in fair value by $21,881,939 during 1995 and
depreciated in fair value by $942,101 during 1994, as follows:
Net Appreciation
(Depreciation) Fair Value
in Fair Value at End
During the Year of Year
----------------------------
Year ended December 31, 1995:
Vanguard Investment Contract Trust Fund:
Vanguard Variable Rate Trust $ -- $ 61,072,432
Great-West Life Group Investment Contracts -- 164,535
----------------------------
-- 61,236,967
Vanguard Wellington Fund 8,654,007 51,462,550
Vanguard Extended Market Fund 1,754,408 10,740,628
Vanguard Institutional Index Trust 8,571,781 41,817,198
Vanguard Bond Index Fund 14,043 715,787
Fidelity Magellan Fund (345,250) 5,899,506
Templeton Institutional Foreign Equity Fund (6,498) 783,256
Acordia, Inc. Stock Fund (511,775) 5,384,842
Loan Fund -- 6,792,154
----------------------------
18,130,716 123,595,921
CIGNA Mutual Funds:
CIGNA Guaranteed Long-Term Fund 21,424 12,086,009
CIGNA Fidelity Growth Opportunities Fund 1,987,403 9,187,359
CIGNA Fidelity Income and Growth Fund 910,056 5,544,690
CIGNA Stock Market Index Fund 782,338 3,513,893
CIGNA International Equity Fund 50,002 1,576,755
----------------------------
3,751,223 31,908,706
----------------------------
$ 21,881,939 $216,741,594
============================
9
Acordia 401(k) Long Term Savings Investment Plan
Notes to Financial Statements (continued)
4. Investments (continued)
Net Appreciation
(Depreciation) Fair Value
in Fair Value at End
During the Year of Year
----------------------------
Year ended December 31, 1994:
Vanguard Investment Contract Trust Fund:
Vanguard Variable Rate Trust $ -- $ 66,436,330
Metropolitan Life Insurance Company Group
Annuity Contract -- 362,374
Great-West Life Group Investment Contracts -- 338,004
Lincoln National Life Group Investment Contract -- 190,237
Travelers Insurance Group Investment Contract -- 96,979
----------------------------
-- 67,423,924
Vanguard Wellington Fund (1,334,690) 35,611,769
Vanguard Index Trust Fund (201,923) --
Vanguard Institutional Index Trust (41,526) 26,507,570
Vanguard Extended Market Fund (225,667) 6,688,956
Acordia, Inc. Stock Fund 861,705 3,891,892
Loan Fund -- 7,994,503
----------------------------
$ (942,101) $148,118,614
============================
10
Acordia 401(k) Long Term Savings Investment Plan
Notes to Financial Statements (continued)
4. Investments (continued)
The Trust's net assets available for plan benefits and changes in net assets
available for benefits of each available investment account is presented
below:
Vanguard Vanguard
Investment Vanguard Vanguard Institutional Vanguard
Contract Wellington Extended Index Bond
Trust Fund Fund Market Fund Fund Index Fund
------------------------------------------------------------------------
December 31, 1995:
Investments $ 61,236,967 $ 51,462,550 $ 10,740,628 $ 41,817,198 $ 715,787
Equity interest of plans of affiliates in
Master Trust (deduction) (43,867,030) (33,291,586) (9,848,866) (24,386,886) (497,067)
------------------------------------------------------------------------
$ 17,369,937 $ 18,170,964 $ 891,762 $ 17,430,312 $ 218,720
========================================================================
Results of the Trust's operations for the
year ended December 31, 1995
Interest and dividend income $4,131,883 $1,963,825 $132,445 $896,311 $2,406
Net realized and unrealized appreciation
(depreciation) in fair value of investments 10,504,116 2,398,997 10,226,602 14,132
Equity interest of plans of affiliates in
Master Trust (deduction) (3,140,589) (8,676,696) (2,508,413) (7,095,578) (10,750)
------------------------------------------------------------------------
$991,294 $3,791,245 $23,029 $4,027,335 $5,788
========================================================================
Templeton
Fidelity Institutional CIGNA
Magellan Foreign Acordia, Inc. Mutual
Fund Equity Fund Stock Fund Funds Loan Fund Total
-----------------------------------------------------------------------------
December 31, 1995:
Investments $ 5,899,505 $ 783,256 $ 5,384,842 $ 31,908,708 $6,792,154 $216,741,595
Equity interest of plans of affiliates in
Master Trust (deduction) (3,834,157) (532,494) (266,477) (31,908,708) (4,224,979) (152,658,250)
-----------------------------------------------------------------------------
$ 2,065,348 $ 250,762 $ 5,118,365 $ -- $2,567,175 $ 64,083,345
=============================================================================
Results of the Trust's operations for the
year ended December 31, 1995
Interest and dividend income $ 315,146 $ 18,103 $128,296 $ 650,176 $ 480,011 $ 8,718,602
Net realized and unrealized appreciation
(depreciation) in fair value of investments (357,542) 1,007 (501,708) 4,063,501 -- 26,349,105
Equity interest of plans of affiliates in
Master Trust (deduction) 22,426 (19,981) (36,120) (4,713,677) (334,135) (26,513,513)
-----------------------------------------------------------------------------
$ (19,970) $ (871) ($409,532) $ -- $ 145,876 $ 8,554,194
=============================================================================
Acordia 401(k) Long Term Savings Investment Plan
Notes to Financial Statements (continued)
4. Investments (continued)
Vanguard Vanguard
Investment Vanguard Vanguard Vanguard Extended
Contract Wellington Index Institutional Market
Trust Fund Fund Trust Fund Index Fund Fund
-------------------------------------------------------------------------------
December 31, 1994:
Investments $ 67,423,924 $ 35,611,769 $ 6,688,956 $ 26,507,570 $ -
Equity interest of plans of affiliates in
Master Trust (deduction) (54,388,653) (27,978,426) (6,688,956) (18,915,844) -
-------------------------------------------------------------------------------
$ 13,035,271 $ 7,633,343 $ - $ 7,591,726 $ -
===============================================================================
Results of the Trust's operations for the
year ended December 31, 1994:
Interest and dividend income $ 3,263,514 $ 1,370,373 $ 331,463 $ 432,591 $ -
Net realized and unrealized appreciation
(depreciation) in fair value of invest - (1,334,690) (201,923) (41,526) (253,667)
Equity interest of plans of affiliates in
Master Trust (deduction) (2,539,118) (62,321) (119,106) (308,772) 255,667
-------------------------------------------------------------------------------
$ 724,396 $ (26,638) $ 10,434 $ 82,293 -
===============================================================================
Acordia, Inc.
Stock Fund Loan Fund Total
------------------------------------------------------
December 31, 1994:
Investments $ 3,891,892 $ 7,994,503 $ 148,118,614
Equity interest of plans of affiliates in
Master Trust (deduction) - (6,340,850) (114,312,729)
------------------------------------------------------
$ 3,891,892 $ 1,653,653 $ 33,805,885
======================================================
Results of the Trust's operations for the
year ended December 31, 1994:
Interest and dividend income $ 59,341 $ 299,072 $ 5,756,354
Net realized and unrealized appreciation
(depreciation) in fair value of invest 861,705 - (972,101)
Equity interest of plans of affiliates in
Master Trust (deduction) - (228,486) (3,002,136)
------------------------------------------------------
921,046 $ 70,586 $ 1,782,117
======================================================
12
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement
(Form S-8, No. 33-54242) pertaining to the Acordia 401(k) Long-term Savings
Investment Plan of Acordia, Inc. of our report dated June 14, 1996, with respect
to the financial statements of the Acordia 401(k) Long-Term Savings Investment
Plan included in this Report on Form 10K/A of Acordia, Inc. for the year ended
December 31, 1995.
/s/ Ernst & Young LLP
Indianapolis, Indiana
June 27, 1996