-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A2XjO/QkBGeFAgm814k5kGk1j3H5S4OOVbtszhcKFJklGycKvLVSNARQUeKVUN9c Vm5bqiGoZo2J4gCOg+GMiA== 0000898430-98-003725.txt : 19981029 0000898430-98-003725.hdr.sgml : 19981029 ACCESSION NUMBER: 0000898430-98-003725 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19981028 SROS: NASD GROUP MEMBERS: PHILO SMITH GROUP MEMBERS: PHILO SMITH CAPITAL CORPORATION GROUP MEMBERS: PSCO FINANCIAL SERVICES FUND GROUP MEMBERS: PSCO FUND LIMITED GROUP MEMBERS: PSCO PARTNERS LIMITED PARTNERSHIP - 06-0921598 GROUP MEMBERS: PSCO PARTNERS LIMITED PARTNERSHIP TWO GROUP MEMBERS: SMITH PHILO & CO INC /CT/ SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: PAULA FINANCIAL CENTRAL INDEX KEY: 0000929031 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 954640368 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: SEC FILE NUMBER: 005-52261 FILM NUMBER: 98732299 BUSINESS ADDRESS: STREET 1: 300 NORTH LAKE AVE CITY: PASADENA STATE: CA ZIP: 91101 BUSINESS PHONE: 6263040401 MAIL ADDRESS: STREET 1: 300 NORTH LAKE AVE CITY: PASADENA STATE: CA ZIP: 91101 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SMITH PHILO & CO INC /CT/ CENTRAL INDEX KEY: 0001011590 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 066057725 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: MUNGER TOLLES & OLSON STREET 2: 355 SOUTH GRAND AVENUE SUITE 3500 CITY: LOS ANGELES STATE: CA ZIP: 90071-1560 BUSINESS PHONE: 213-683-9520 MAIL ADDRESS: STREET 1: 2950 SUMMER STREET CITY: STAMFORD STATE: CT ZIP: 06905 SC 13D 1 SCHEDULE 13D 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). 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 - ------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------ SCHEDULE 13D - ----------------------- --------------------- 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 - ------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------------ 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 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 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 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:
Trade Date Number of Shares Price ---------- ---------------- ----- 8/26/98 2,000 9 3/4 9/15/98 1,500 7 1/8
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:
Trade Date Number of Shares Price ---------- ---------------- ----- 9/01/98 25,000 6 3/8 9/03/98 25,000 7 5/16
Page 12 of 15 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 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 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 -----END PRIVACY-ENHANCED MESSAGE-----