-----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, B8Q9zTxh9ACK2y/cjRrR4ny/ju44MHJ6drVxj47teT2e7DHp7G7yUNBOfQdKZCWb rQj1Wgw0bFRFR5X6vxaMGQ== 0000912057-97-017573.txt : 19970520 0000912057-97-017573.hdr.sgml : 19970520 ACCESSION NUMBER: 0000912057-97-017573 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970514 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED FIRE & CASUALTY CO CENTRAL INDEX KEY: 0000101199 STANDARD INDUSTRIAL CLASSIFICATION: 6331 IRS NUMBER: 420644327 STATE OF INCORPORATION: IA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 002-39621 FILM NUMBER: 97604490 BUSINESS ADDRESS: STREET 1: 118 SECOND AVE SE CITY: CEDAR RAPIDS STATE: IA ZIP: 52407 BUSINESS PHONE: 3193995700 MAIL ADDRESS: STREET 1: P O BOX 73909 CITY: CEDAR RAPIDS STATE: IA ZIP: 52407 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q /X/ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended MARCH 31, 1997 Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission File Number 2-39621 UNITED FIRE & CASUALTY COMPANY (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) IOWA 42-0644327 - - ------------------------ -------------------------------- (State of Incorporation) (IRS Employer Identification No.) 118 Second Avenue, S.E. CEDAR RAPIDS, IOWA 52407 - - -------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (319) 399-5700 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ----- ------- As of May 7, 1997, 10,727,322 shares of common stock were outstanding. UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES TABLE OF CONTENTS PART I: FINANCIAL INFORMATION Report of Independent Public Accountants 1 Consolidated Balance Sheets as of March 31, 1997 and December 31, 1996 2 Unaudited Consolidated Statements of Operations - Three-Month Periods Ended March 31, 1997 and 1996 3 Unaudited Consolidated Statements of Cash Flows - Three-Month Periods Ended March 31, 1997 and 1996 4 Notes to Unaudited Consolidated Financial Statements 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II: OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K Signatures 10 Exhibit 11. Computation of Net Income Per Common Share 11 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Stockholders and Board of Directors of United Fire & Casualty Company: We have reviewed the accompanying consolidated balance sheet of UNITED FIRE & CASUALTY COMPANY (an Iowa corporation) AND SUBSIDIARIES as of March 31, 1997, and the related consolidated statements of operations and cash flows for the three-month periods ended March 31, 1997 and 1996. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of United Fire & Casualty Company and Subsidiaries as of December 31, 1996, and, in our report dated February 20, 1997, we expressed an unqualified opinion on that statement. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 1996, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. /s/ Arthur Andersen LLP ------------------------------- ARTHUR ANDERSEN LLP Chicago, Illinois May 7, 1997 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 1997 AND DECEMBER 31, 1996 - - ------------------------------------------------------------------------------ (Dollars in Thousands) - - ------------------------------------------------------------------------------ ASSETS 1997 1996 UNAUDITED AUDITED - - ------------------------------------------------------------------------------ INVESTMENTS Fixed maturities Held-to-maturity, at amortized cost (market value $672,895 in 1997 and $668,541 in 1996) $ 666,752 $ 651,138 Available-for-sale, at market (cost $75,935 in 1997 and $69,317 in 1996) 72,793 67,902 Equity securities (cost $25,906 in 1997 and $25,898 in 1996) 93,848 91,314 Mortgage loans 2,937 2,959 Policy loans 7,685 7,591 Other long-term investments, at market (cost $8,682 in 1997 and $8,395 in 1996) 10,593 9,970 Short-term investments 15,682 29,330 - - ------------------------------------------------------------------------------ $ 870,290 $ 860,204 CASH AND CASH EQUIVALENTS 20,169 14,389 ACCRUED INVESTMENT INCOME 12,650 12,195 ACCOUNTS RECEIVABLE 46,097 43,433 DEFERRED POLICY ACQUISITION COSTS 57,825 56,083 PROPERTY AND EQUIPMENT 12,298 12,630 REINSURANCE RECEIVABLES 13,015 12,490 PREPAID REINSURANCE PREMIUMS 4,273 4,229 INTANGIBLES 1,272 1,335 INCOME TAXES RECEIVABLE -- 709 OTHER ASSETS 6,543 7,138 - - ------------------------------------------------------------------------------ TOTAL ASSETS $1,044,432 $1,024,835 - - ------------------------------------------------------------------------------ - - ------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Future policy benefits and losses, claims and settlement expenses Property and casualty insurance $ 223,699 $ 221,207 Life insurance 439,969 431,582 Unearned premiums 107,379 105,008 Accrued expenses and other liabilities 16,714 19,721 Employee benefit obligations 7,129 6,764 Income taxes payable 1,644 -- Deferred income taxes 13,503 12,694 - - ------------------------------------------------------------------------------ TOTAL LIABILITIES $ 810,037 $ 796,976 - - ------------------------------------------------------------------------------ STOCKHOLDERS' EQUITY Common stock $ 35,759 $ 35,759 Additional paid-in capital 9,342 9,342 Retained earnings 145,727 139,933 Net unrealized appreciation, net of applicable income taxes of $23,143 in 1997 and $22,750 in 1996 43,567 42,825 - - ------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY $ 234,395 $ 227,859 - - ------------------------------------------------------------------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,044,432 $1,024,835 - - ------------------------------------------------------------------------------ - - ------------------------------------------------------------------------------ The Notes to Unaudited Consolidated Financial Statements are an integral part of these statements. 2 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS THREE-MONTH PERIODS ENDED MARCH 31, 1997 AND 1996 - - ------------------------------------------------------------------------------ (Dollars in Thousands Except Per Share Data and Number of Shares) - - ------------------------------------------------------------------------------ 1997 1996 - - ------------------------------------------------------------------------------ Revenues Net premiums earned $ 59,256 $ 55,593 Investment income, net 15,037 14,020 Realized investment gains and other income 696 4,057 Commission and policy fee income 441 431 - - ------------------------------------------------------------------------------ 75,430 74,101 - - ------------------------------------------------------------------------------ Benefits, Losses and Expenses Losses and settlement expenses 36,965 35,737 Increase in liability for future policy benefits 1,263 1,053 Amortization of deferred policy acquisition costs 11,723 12,740 Other underwriting expenses 9,807 7,488 Interest on policyholders' accounts 5,499 5,115 - - ------------------------------------------------------------------------------ 65,257 62,133 - - ------------------------------------------------------------------------------ Income before income taxes 10,173 11,968 Federal income taxes 2,770 3,213 - - ------------------------------------------------------------------------------ Net Income $ 7,403 $ 8,755 - - ------------------------------------------------------------------------------ - - ------------------------------------------------------------------------------ Net Income per common share $ 0.69 $ 0.81 - - ------------------------------------------------------------------------------ - - ------------------------------------------------------------------------------ Weighted average common shares outstanding 10,727,712 10,829,448 - - ------------------------------------------------------------------------------ - - ------------------------------------------------------------------------------ Cash dividends declared per common share $ 0.15 $ 0.15 - - ------------------------------------------------------------------------------ - - ------------------------------------------------------------------------------ The Notes to Unaudited Consolidated Financial Statements are an integral part of these statements. 3 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE-MONTH PERIODS ENDED MARCH 31, 1997 AND 1996 - - ------------------------------------------------------------------------------- (Dollars in Thousands) - - ------------------------------------------------------------------------------- 1997 1996 - - ------------------------------------------------------------------------------- Cash Flows From Operating Activities Net income $ 7,403 $ 8,755 - - ------------------------------------------------------------------------------- Adjustments to reconcile net income to net cash provided by operating activities Net bond discount accretion (1) (199) Depreciation and amortization 712 597 Realized investment gains (696) (2,000) Changes in: Accrued investment income (455) 63 Accounts receivable (2,664) (5,611) Deferred policy acquisition costs (1,742) (423) Reinsurance receivables (525) (939) Prepaid reinsurance premiums (44) (183) Income taxes receivable/payable 2,353 3,741 Other assets 595 (1,756) Future policy benefits and losses, claims and settlement expenses 3,079 5,340 Unearned premiums 2,371 3,037 Accrued expenses and other liabilities (1,398) (3,915) Employee benefit obligations 365 177 Deferred income taxes 416 (265) - - ------------------------------------------------------------------------------- Total adjustments $ 2,366 $ (2,336) - - ------------------------------------------------------------------------------- Net cash provided by operating activities $ 9,769 $ 6,419 - - ------------------------------------------------------------------------------- Cash Flows From Investing Activities Proceeds from sale of available-for-sale investments $ 617 $ 9,169 Proceeds from call and maturity of held-to- maturity investments 10,101 17,364 Proceeds from call and maturity of available- for-sale investments 1,797 4,297 Proceeds from sale of other investments 22,983 15,359 Purchase of investments held-to-maturity (25,566) (34,888) Purchase of investments available-for-sale (8,491) (10,264) Purchase of other investments (9,695) (1,399) Proceeds from sale of property and equipment -- 91 Purchase of property and equipment (317) (502) - - ------------------------------------------------------------------------------- Net cash used in investing activities $(8,571) $ (773) - - ------------------------------------------------------------------------------- Cash Flows From Financing Activities Policyholders' account balances Deposits to investment and universal life type contracts $26,930 $ 23,385 Withdrawals from investment and universal life type contracts (19,130) (26,350) Purchase and retirement of common stock -- (2) Payment of cash dividends (3,218) (3,248) - - ------------------------------------------------------------------------------- Net cash provided by (used in) financing activities $ 4,582 $ (6,215) - - ------------------------------------------------------------------------------- Increase (Decrease) in Cash and Cash Equivalents $ 5,780 $ (569) Cash and Cash Equivalents at Beginning of Year 14,389 6,998 - - ------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 20,169 $ 6,429 - - ------------------------------------------------------------------------------- - - ------------------------------------------------------------------------------- The Notes to Unaudited Consolidated Financial Statements are an integral part of these statements. 4 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. In the opinion of the management of United Fire & Casualty Company and Subsidiaries (the "Company"), the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, the results of operations, and cash flows for the periods presented. The results for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The financial statements contained herein should be read in conjunction with the Company's annual report on Form 10-K for the year ended December 31, 1996. The review report of Arthur Andersen LLP accompanies the unaudited consolidated financial statements included in Item 1 of Part I. NOTE 2. The Company maintains its records in conformity with the accounting practices prescribed or permitted by the Insurance Department of the State of Iowa. To the extent that certain of these practices differ from generally accepted accounting principles ("GAAP"), adjustments have been made in order to present the accompanying financial statements on the basis of GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain amounts included in the financial statements for the previous year have been reclassified to conform with the financial statement presentation at March 31, 1997. NOTE 3. For purposes of reporting cash flows, cash and cash equivalents include cash and non-negotiable certificates of deposit with original maturities of three months or less. Income taxes paid, net of refunds for the three month periods ended March 31, 1997 and 1996 were $0, and $(263,000), respectively. There were no significant payments of interest through March 31, 1997 and 1996, other than interest credited to policyholders' accounts. NOTE 4. Included in realized gains and other income for the three month period ended March 31, 1996, is $2,057,000 in interest in connection with the settlement of a Federal income tax Revenue Agent Review for previous tax years. 5 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS NOTE 5. A reconciliation of the amortized cost to fair values of investments in held-to-maturity and available-for-sale fixed maturities, marketable equity securities and other long-term investments as of March 31, 1997 is as follows.
- - ----------------------------------------------------------------------------------------------------------------- (Dollars in Thousands) - - ----------------------------------------------------------------------------------------------------------------- MARCH 31, 1997 Gross Gross Amortized Unrealized Unrealized Fair TYPE OF INVESTMENT Cost Appreciation Depreciation Value - - ----------------------------------------------------------------------------------------------------------------- HELD-TO-MATURITY Fixed Maturities Bonds United States Government, government agencies and authorities Collateralized mortgage obligations $ 27,514 $ 282 $ 1,227 $ 26,569 Mortgage-backed securities 21,933 1,665 3 23,595 All others 3,358 232 51 3,539 States, municipalities and political subdivisions 206,090 7,001 1,496 211,595 Foreign 6,839 115 87 6,867 Public utilities 90,073 94 2,662 87,505 Corporate bonds Collateralized mortgage obligations 97,211 2,249 1,438 98,022 All other corporate bonds 213,734 4,586 3,117 215,203 - - ----------------------------------------------------------------------------------------------------------------- Total held-to-maturity $666,752 $16,224 $10,081 $672,895 - - ----------------------------------------------------------------------------------------------------------------- - - ----------------------------------------------------------------------------------------------------------------- AVAILABLE-FOR-SALE Fixed Maturities Bonds United States Government, government agencies and authorities Collateralized mortgage obligations $ 53,614 $ 370 $ 2,398 $ 51,586 Mortgage-backed securities 61 4 -- 65 All others 9,678 -- 146 9,532 Public utilities 206 -- 4 202 Corporate bonds Collateralized mortgage obligations 11,858 61 1,031 10,888 All other corporate bonds 518 9 7 520 - - ----------------------------------------------------------------------------------------------------------------- Total available-for-sale fixed maturities $ 75,935 $ 444 $ 3,586 $ 72,793 - - ----------------------------------------------------------------------------------------------------------------- Equity securities Common stocks Public utilities $ 3,525 $ 4,593 $ -- $ 8,118 Banks, trust and insurance companies 11,903 45,232 -- 57,135 All other common stocks 9,628 18,274 212 27,690 Nonredeemable preferred stocks 850 58 3 905 - - ----------------------------------------------------------------------------------------------------------------- Total equity securities $ 25,906 $68,157 $ 215 $ 93,848 - - ----------------------------------------------------------------------------------------------------------------- Total available-for-sale $101,841 $68,601 $ 3,801 $166,641 - - ----------------------------------------------------------------------------------------------------------------- - - ----------------------------------------------------------------------------------------------------------------- Other long-term investments $ 8,682 $ 1,921 $ 10 $ 10,593 - - ----------------------------------------------------------------------------------------------------------------- - - -----------------------------------------------------------------------------------------------------------------
6 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS The amortized cost and fair value of held-to-maturity and available-for-sale fixed maturities at March 31, 1997 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. - - -------------------------------------------------------------------------------- (Dollars in Thousands) - - -------------------------------------------------------------------------------- MARCH 31, 1997 Held-to-maturity Available-for-sale - - -------------------------------------------------------------------------------- Amortized Fair Amortized Fair Cost Value Cost Value - - -------------------------------------------------------------------------------- Due in one year or less $ 10,135 $ 10,274 $ 50 $ 50 Due after one year through five years 91,953 94,759 707 708 Due after five years through ten years 187,150 188,988 6,310 6,192 Due after ten years 230,856 230,688 3,335 3,304 Mortgage-backed securities 21,933 23,595 61 65 Collateralized mortgage obligations 124,725 124,591 65,472 62,474 - - -------------------------------------------------------------------------------- $666,752 $672,895 $75,935 $72,793 - - -------------------------------------------------------------------------------- - - -------------------------------------------------------------------------------- NOTE 6. In February, 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share." This statement is effective for both interim and annual periods ending after December 15, 1997. In management's opinion, the adoption of this statement will not have a material impact on the Consolidated Financial Statements. 7 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ASSETS The Company considers itself a long-term investor, and classifies a majority of its fixed maturity securities as held-to-maturity. Available-for-sale fixed maturities comprise 10% of the total fixed maturity portfolio, and the Company holds no trading securities. Between March 31, 1997 and December 31, 1996, total fixed income securities increased $20,505,000 or 3%. Those that were held as available-for-sale generated a net unrealized loss of $3,142,000, compared to a net unrealized loss at December 31, 1996 of $1,415,000. Approximately 25% of the current fixed maturities are collateralized mortgage obligations ("CMOs"), compared to 26% at December 31, 1996. The Company minimizes its prepayment risk by buying most issues priced at a slight discount. While buying at a discount does not prevent prepayment, the yield is not penalized as is the case when a premium is paid. In addition, although the stated maturity is longer than the average life of the issues, the Company is concentrating on buying issues with expected maturity in the seven-to-twelve-year range. The Company also invests in readily marketable common and preferred stocks, all of which are classified as available-for-sale. Other long-term investments are primarily holdings in limited partnership funds investing in banks. Net unrealized appreciation on stocks and other long-term investments increased between March 31, 1997 and December 31, 1996 by $2,862,000 or 4%. The Company's short-term investments, comprised of money market accounts, overnight repurchase agreements and fixed maturities are utilized to meet anticipated short-term cash requirements. In addition, the Company also maintains a $5 million line of credit with a local bank, which was not utilized through March 31, 1997, or during 1996. Short-term investments has decreased from $29,330,000 at December 31, 1996 to $15,682,000 in 1997, due to purchases of fixed maturity securities. Accounts receivable are balances due from property and casualty insurance agents and brokers for premiums written less commissions, and losses receivable from assumed brokers. In 1997, this asset grew by $2,664,000 or 6%, due to premium growth and the Company's deferred payment plan. The Company's deferred policy acquisition costs ("DAC") are expenses such as commissions, premium taxes and other costs associated with procuring insurance policies. The asset is established at the beginning of the policy periods and is then amortized over the lives of the respective policy terms to achieve a matching of expenses to revenue. The Company's premium growth has created a corresponding increase in deferred policy acquisition costs. Reinsurance receivables are losses, expenses and reserves that are due the Company from reinsurers. The balance in this asset increased by $525,000 or 4% through March 31, 1997, when compared to December 31, 1996. The Company does not anticipate collection problems with regard to any of its reinsurance receivables. 8 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIABILITIES The property and casualty segment's gross liability before reinsurance for losses and settlement expenses increased $2,492,000 or 1% between 1997 and 1996. Gross reserves remaining on the 1994 Northridge earthquake were $4,373,000 as of March 31, 1997, compared to $4,599,000 at December 31, 1996. The Company is not aware of any significant contingent liabilities as far as environmental issues are concerned. Because of the type of business the Company writes, i.e. property coverage, there exists the potential for exposure for environmental pollution and asbestos claims. The Company's underwriters are aware of these exposures and use limited riders or endorsements to limit exposure. The liability for future policy benefits and interest on policyholders' accounts saw an increase of $8,387,000 for 1997 due to the addition of new premiums and growth in existing account balances. MATERIAL CHANGES IN RESULTS OF OPERATIONS PROPERTY AND CASUALTY OPERATIONS Property and casualty premiums earned increased 7% or $3,373,000 in 1997 when compared to 1996. Our direct business has provided a majority of the growth, with much of the increase originating in Louisiana, Mississippi and in several midwestern states. Loss and settlement expenses incurred by the property and casualty segment for 1997 increased a moderate 4% or $1,406,000 over 1996. Through March, 1997, the Company has escaped severe weather related claims and the frequency of frozen pipe claims and fire losses has decreased from a year ago. An increase of $728,000 in property and casualty underwriting and acquisition expenses was primarily due to an increase in commissions, premium taxes and other policy issue expenses, associated with growth in premiums. LIFE OPERATIONS Premiums earned were relatively flat between the first quarters of 1997 and 1996. An 88% increase of $381,000 in A&H business was offset by a corresponding increase in unearned premiums. The change of $210,000 in increase in liability for future policy benefits is primarily due to the addition of interest to the larger annuity account balances which existed during the first quarter of 1997, compared to the same period in 1996. The increase of $374,000 in other underwriting expenses is due primarily to an increase in commission expense. INVESTMENT RESULTS Growth in the Company's fixed maturity portfolio contributed to the 7% increase in investment income. Included in realized gains and other income for the first quarter of 1996 is $2,057,000 in interest in connection with the settlement of a Federal income tax Revenue Agent Review for previous tax years. 9 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (A) Exhibits-Exhibit 11 - Computation of Net Income Per Common Share (Page 11). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. UNITED FIRE & CASUALTY COMPANY - - ---------------------------------------------------------------------------- (REGISTRANT) MAY 7, 1997 - - ---------------------------------------------------------------------------- (DATE) /s/ - - ---------------------------------------------------------------------------- K.G. BAKER, VICE PRESIDENT, CHIEF FINANCIAL OFFICER AND PRINCIPAL ACCOUNTING OFFICER, AUTHORIZED OFFICER OF THE REGISTRANT 10 EX-11 2 EXHIBIT 11 UNITED FIRE & CASUALTY COMPANY AND SUBSIDIARIES PART II - OTHER INFORMATION Exhibit 11. Computation of Net Income Per Common Share - - ------------------------------------------------------------------------------- (Dollars in Thousands Except Per Share Data) - - ------------------------------------------------------------------------------- Weighted Average Three-Month Periods Ended Number of Shares Net Earnings Per March 31, Outstanding Income Common Share - - ------------------------------------------------------------------------------- 1997 10,727,712 $ 7,403 $ 0.69 1996 10,829,448 8,755 0.81 - - ------------------------------------------------------------------------------- Computation of weighted average number of common and common equivalent shares: - - ------------------------------------------------------------------------------- Three-Month Periods Ended March 31, 1997 1996 - - ------------------------------------------------------------------------------- Common shares outstanding beginning of the period 10,727,712 10,829,461 Weighted average of the common shares purchased and retired or reissued -- (13) - - ------------------------------------------------------------------------------- Weighted average number of common shares 10,727,712 10,829,448 - - ------------------------------------------------------------------------------- - - ------------------------------------------------------------------------------- 11 EX-27 3 EXHIBIT 27; FDS
7 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 72,793 666,752 672,895 93,848 2,937 0 870,290 20,169 13,015 57,825 1,044,432 663,668 107,379 0 0 0 0 0 35,759 198,636 1,044,432 59,256 15,037 696 441 38,228 11,723 15,306 10,173 2,770 7,403 0 0 0 7,403 .69 .69 0 0 0 0 0 0 0
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