-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, YfRdSTmXDsfxnPmXCzo0zyGhnEhL9Kdx5kGBwoeVaMCWEbEneEV7lwTjNJcpa20w zYs721j0cZhgQ4/JMjnUhg== 0000310823-94-000027.txt : 19941128 0000310823-94-000027.hdr.sgml : 19941128 ACCESSION NUMBER: 0000310823-94-000027 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD STEAM BOILER INSPECTION & INSURANCE CO CENTRAL INDEX KEY: 0000310823 STANDARD INDUSTRIAL CLASSIFICATION: 6331 IRS NUMBER: 060384680 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10527 FILM NUMBER: 94559392 BUSINESS ADDRESS: STREET 1: ONE STATE ST CITY: HARTFORD STATE: CT ZIP: 06102 BUSINESS PHONE: 2037221866 MAIL ADDRESS: STREET 1: ONE STATE ST CITY: HARTFORD STATE: CT ZIP: 06102 10-Q 1 PAGES 1 AND 2 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 September 30, 1994 OR / / 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 0-13300 THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY (Exact name of registrant as specified in its charter) CONNECTICUT 06-0384680 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) ONE STATE STREET, HARTFORD, CONNECTICUT 06102 (Address of principal executive offices) (Zip Code) (203) 722-1866 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since the last report.) 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 No The number of shares outstanding of the registrant's common stock without par value, as of October 31, 1994: 20,459,595 THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY INDEX PART I FINANCIAL INFORMATION PAGE Consolidated Statements of Operations for the Quarters and Nine Months Ended September 30, 1994 and 1993 (unaudited)............................ 3 Consolidated Statements of Financial Position as of September 30, 1994 (unaudited) and December 31, 1993............................................ 4 Consolidated Statements of Cash Flow for the Nine Months Ended September 30, 1994 and 1993 (unaudited)...................................... 5 Notes to Consolidated Financial Statements....... 6 Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations.................................... 7 PART II OTHER INFORMATION Item 6 - Exhibits and Reports on Form 8-K........ 13 SIGNATURES................................................. 14 2 EX-1 2 INCOME STATEMENT PART I - FINANCIAL INFORMATION Item 1. Financial Statements THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY Consolidated Statements of Operations Unaudited (In millions, except per share data)
Quarter Nine Months Ended September 30, Ended September 30, 1994 1993 1994 1993 ------- ------- ------- ------- Revenues: Insurance premiums $ 85.8 $ 86.3 $ 255.4 $ 262.0 Net engineering services 57.5 59.3 172.0 174.1 Net investment income 6.4 7.3 19.1 22.6 Realized investment gains 1.8 6.5 8.2 21.9 ------- ------- ------- ------- Total revenues 151.5 159.4 454.7 480.6 ------- ------- ------- ------- Expenses: Claims and adjustment 33.8 69.1 111.0 160.7 Policy acquisition 16.4 16.0 48.0 48.4 Underwriting and inspection 28.1 27.9 80.1 82.1 Net engineering services 52.6 55.9 158.8 166.6 Interest 0.4 0.6 1.2 1.5 Restructuring - 20.0 - 20.0 Charge for Proposition 103 2.9 - 2.9 - ------- ------- ------- ------- Total expenses 134.2 189.5 402.0 479.3 ------- ------- ------- ------- Equity in operations of insurance association 0.4 0.4 1.1 (0.9) ------- ------- ------- ------- Income (loss) before taxes and cumulative effect of change in accounting principle 17.7 (29.7) 53.8 0.4 Income taxes (benefit): Current 3.8 (2.9) 12.7 3.6 Deferred 1.6 (4.2) 2.6 (3.9) ------- ------- ------- ------- Total income taxes 5.4 (7.1) 15.3 (0.3) Income (loss) before cumulative effect of change in accounting principles 12.3 (22.6) 38.5 0.7 Cumulative effect of change in accounting principle (net of income taxes of $1.9) - - - (3.6)* ------- ------- ------- ------- Net income (loss) $ 12.3 $ (22.6) $ 38.5 $ (2.9) ======= ======= ======= ======= Net income (loss) per share: Income (loss) before accounting change $ 0.60 $ (1.09) $ 1.88 $ 0.03 Cumulative effect of accounting change - - - (0.17)* ------- ------- ------- ------- Net income (loss) $ 0.60 $ (1.09) $ 1.88 $ (0.14) ======= ======= ======= ======= Dividends declared per share $ 0.55 $ 0.53 $ 1.61 $ 1.59 Average shares outstanding 20.5 20.8 20.5 20.8 *Reflects adoption of FAS 112. See Notes to Consolidated Financial Statements.
3 EX-2 3 BALANCE SHEET THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY Consolidated Statements of Financial Position (In millions, except per share data) September 30 December 31, 1994 1993 Unaudited Assets: Cash $ 6.7 $ 7.3 Short-term investments, at cost 66.8 53.8 Fixed maturities, at fair value (cost - $164.0; $146.7) 161.6 154.9 Equity securities, at fair value (cost - $183.0; $236.8) 213.0 290.0 --------- --------- Total cash and invested assets 448.1 506.0 Insurance premiums receivable 62.8 68.5 Engineering services receivable 72.3 79.0 Fixed assets 60.9 64.3 Participation in pools and associations 8.6 8.4 Prepaid acquisition costs 30.6 30.0 Capital lease 17.7 18.3 Reinsurance recoverable 37.4 44.5 Other assets 74.0 58.9 --------- --------- Total assets $ 812.4 $ 877.9 ========= ========= Liabilities: Unearned insurance premiums $ 165.6 $ 169.3 Claims and adjustment expenses 187.1 214.4 Short-term borrowings 31.1 42.7 Long-term borrowings 0.6 0.7 Capital lease 27.8 27.7 Deferred income taxes (3.0) 6.9 Dividends payable 11.3 10.9 Employee stock ownership plan 2.2 3.7 Other liabilities 85.9 76.9 --------- --------- Total liabilities 508.6 553.2 ========= ========= Shareholders' equity: Common Stock (stated value; shares authorized 50.0; shares issued 21.3; shares outstanding 20.5; 20.5) 10.0 10.0 Additional paid-in capital 34.0 33.9 Unrealized investment gains, net of tax 20.6 44.2 Retained earnings 285.9 280.4 Treasury stock, at cost; (shares .8; .8) (40.2) (35.7) Benefit plans (6.5) (8.1) --------- --------- Total shareholders' equity 303.8 324.7 --------- --------- Total liabilities and shareholders' equity $ 812.4 $ 877.9 ========= ========= Shareholders' equity per share $14.85 $15.80 See Notes to Consolidated Financial Statements.
4 EX-3 4 CASH FLOW STATEMENT The Hartford Steam Boiler Inspection and Insurance Company Consolidated Statements of Cash Flows Unaudited (In Millions)
Nine Months Ended September 30, 1994 1993 Operating Activities: Net income (loss) $ 38.5 $ (2.9) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 15.8 16.2 Deferred income taxes 2.6 (3.9) Realized investment gains (8.2) (21.9) Change in: Insurance premiums receivable 5.7 7.0 Engineering services receivable 6.7 (8.1) Prepaid acquisition costs (0.6) 0.6 Reinsurance recoverable 7.1 (18.2) Unearned insurance premiums (3.7) (4.5) Claims and adjustment expenses (27.3) 60.9 Other (5.5) 33.8 -------- -------- Cash provided by operating activities 31.1 59.0 -------- -------- Investing Activities: Fixed asset additions (9.8) (10.2) Investments: Purchase of short-term investments, net (13.1) (4.9) Purchase of fixed maturities (33.1) (20.9) Proceeds from sale of fixed maturities 3.8 4.9 Redemption of fixed maturities 12.4 20.5 Purchase of equity securities (119.7) (402.7) Proceeds from sale of equity securities 178.6 390.5 -------- -------- Cash provided by (used in) investment activities 19.1 (22.8) -------- -------- Financing Activities: Dividends paid to shareholders (32.6) (33.2) Decrease in short-term borrowings, net (11.6) (3.1) Repayment of long-term debt (0.1) (0.1) Repayment of employee stock ownership plan debt (1.5) (1.4) Purchase of treasury stock (5.0) (4.9) -------- -------- Cash used in financing activities (50.8) (42.7) -------- -------- Net decrease in cash (0.6) (6.5) Cash at beginning of period 7.3 8.7 -------- -------- Cash at end of period $ 6.7 $ 2.2 ======== ======== Interest paid $ 1.2 $ 1.3 Federal income tax paid $ 4.8 $ 2.0 See Notes to Consolidated Financial Statements.
5 EX-4 5 MANAGEMENT DISCUSSION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. General The interim financial statements in this report include adjustments based on management's best estimates and judgments, including estimates of future loss payments, which are necessary to present a fair statement of the results for the interim periods reported. These adjustments are of a normal, recurring nature. These financial statements are prepared on the basis of generally accepted accounting principles and should be read in conjunction with the financial statements and related notes in the 1993 Annual Report. Certain prior year amounts have been reclassified to conform with the 1994 presentation. 2. Participation in Pools and Associations Participation in pools and associations includes the Company's equity in Engineering Insurance Group ("EIG"). In September of 1994, the Company announced an agreement to purchase from General Reinsurance Corporation its 50 percent interest in EIG for $20 million. A closing prior to December 31, 1994 is anticipated. The Company's investment in EIG will be consolidated at the time of acquisition. 6 MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED RESULTS OF OPERATIONS AND FINANCIAL CONDITION SEPTEMBER 30, 1994 RESULTS OF OPERATIONS - - --------------------- Overview - - -------- Income after taxes and before accounting changes for the third quarter of 1994 was $12.3 million or $0.60 per share compared to a prior year third quarter loss of $22.6 million or $1.09 per share. Income after taxes and before accounting changes for the first nine months of 1994 and 1993 was $38.5 million or $1.88 per share and $0.7 million or $0.03 per share, respectively. Third quarter 1993 results included a $20.0 million restructuring charge, reserve strengthening of $19.0 million and a $7.8 million expense for losses related to the Midwest floods. Third quarter 1994 results included a pre-tax charge of $2.9 million for California Proposition 103. The improvements in results for the third quarter and first nine months of 1994 compared to the corresponding periods in 1993 reflect continued improvement in both insurance and engineering services operating gains, offset, in part, by a reduced level of realized investment gains and net investment income. In November 1988, California voters passed Proposition 103 requiring premium rollbacks on certain policies then in effect to 20 percent below the rates that were in effect in November 1987. Upon challenge in the courts, the California Supreme Court, in 1989, held that insurers could not be deprived of a fair and reasonable return and subsequently, in 1991, emergency regulations were issued by the regulators which, among other things, defined a "fair and reasonable rate of return". The Company and a number of other insurers successfully challenged the regulations in Los Angeles Superior Court and, in February 1993, the Court issued a decision enjoining the enforcement of the emergency regulations. This decision was appealed to the California Supreme Court, which, in August 1994, ruled in favor of the California Insurance Department and upheld the regulations. The Company continues to maintain its position that the rollback formula is constitutionally defective and that a fair rate of return cannot arbitrarily be capped at 10 percent; however, based upon this most recent ruling, the Company established a reserve in the third quarter of $2.9 million. Total revenues declined 5.0 percent in the third quarter of 1994 to $151.5 million and 5.4 percent for the first nine months of 1994 to $454.7 million compared to prior year amounts. The decline in the third quarter was primarily due to lower realized gains while the decline in the first nine months of 1994 reflected lower insurance premiums and lower realized gains. Total expenses were 29.2 percent lower in the third quarter of 1994, and 16.1 percent lower for the first nine months of 1994 compared to the same periods for 1993. The most significant contributing factors were the decrease in claims and adjustment expenses and the restructuring charge taken in 1993. 7 The effective tax rate for the third quarter of 1994 was 31.0 percent compared to 24.0 percent for the comparable prior year period. The tax rate for the first nine months of 1994 was 28.0 percent compared to 75.0 percent for the first nine months of 1993. Tax rate fluctuations in the third quarter and first nine months of 1994 compared to 1993 resulted from significant improvement in insurance and engineering services operating results. This changed the mix of pre-tax income between fully taxable earnings and tax preferred investment income. Business Developments - - --------------------- In September of 1994, the Company announced an agreement to purchase, by year's end, the remaining 50 percent interest for $20.0 million in Engineering Insurance Group (EIG) from General Reinsurance Corporation. The results of the Company's participation in EIG for the third quarter of 1994 compared with the third quarter of 1993 were constant while results for the first nine months of 1994 showed improvement over the comparable prior period. This improvement was attributed primarily to increased growth in this book of business. On September 26, 1994, the Board of Directors approved an increase in the quarterly dividend from $0.53 to $0.55 per share. Recent Accounting Developments - - ------------------------------ In October 1994, the Financial Accounting Standards Board (the Board) issued Statement of Financial Accounting Standards No. 119 (SFAS 119) "Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments". SFAS 119, which is effective for the Company's calendar-year 1994 financial statements, requires more complete disclosure about derivative financial instruments such as forwards, futures, swap, and option contracts. The Company has limited exposure to such instruments. In October 1994, the Board also issued Statement of Financial Accounting Standards No. 118 (SFAS 118) "Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosures" effective for fiscal years beginning after December 15, 1994. Implementation of SFAS 118 is not expected to have an impact on the Company's financial results. In June 1993, the Board issued Statement of Financial Accounting Standards No. 116 (SFAS 116) "Accounting for Contributions Received and Contributions Made" effective for fiscal years beginning after December 15, 1994. Implementation of SFAS 116 is not expected to have an impact on the Company's financial results. 8 Insurance Operations - - -------------------- Insurance operations include the insurance results of Hartford Steam Boiler Inspection and Insurance Company and the Boiler Inspection and Insurance Company of Canada. EIG's results will be included in insurance operations after the acquisition is completed. The components of net earned insurance premiums were as follows (in millions): Quarter Ended Nine Months Ended September 30 September 30 ------------ ------------ 1994 1993 1994 1993 ---- ---- ---- ---- Gross Earned Premium $ 97.1 $ 95.4 $ 286.4 $ 285.6 Ceded Premium 11.3 9.1 31.0 23.6 ------ ------ ------ ------ Insurance Premium $ 85.8 $ 86.3 $ 255.4 $ 262.0 ====== ====== ====== ====== Insurance premiums in the third quarter of 1994 were flat compared to the third quarter of 1993. Insurance premiums for the first nine months of 1994 decreased 2.5 percent compared to the first nine months of 1993. The decline in insurance premiums resulted, in part, from the Company's major reunderwriting program, which began in early 1993, to improve the insurance business through better risk selection. The Company acknowledged that it would likely experience lower volume in order to achieve improved profitability. Volume reductions were offset partially by price increases, changes in deductibles and risk selection. Reductions in net insurance premiums for the third quarter and first nine months of 1994 also reflect increases in reinsurance costs due to higher facultative placements and renewed treaties. Higher retention, which could affect future claim levels, allowed for modest increases in the cost of existing treaties renewed. The components of the combined ratio, excluding the charge for Proposition 103 recognized in the third quarter of 1994 and the 1993 restructuring charge, were as follows: Quarter Ended Nine Months Ended September 30 September 30 ------------- ------------- 1994 1993 1994 1993 ---- ---- ---- ---- Loss ratio 39.4% 80.0% 43.4% 61.3% Expense ratio 51.9% 50.9% 50.2% 49.8% ---- ---- ---- ---- Combined ratio 91.3% 130.9% 93.6% 111.1% ==== ===== ==== ===== 9 The improvement in loss ratios compared with the same periods in 1993 was primarily due to better underwriting results. Third quarter 1993 results also included reserve strengthening for adverse development of estimated 1992 year-end reserves and losses related to the Midwest floods. The expense ratio for the third quarter and first nine months of 1994 compared to comparable 1993 periods increased slightly due to the impact of higher reinsurance costs on net premiums while expenses were relatively consistent from period to period. Engineering Services Operations - - ------------------------------- Net engineering services revenues for the third quarter and first nine months of 1994 decreased 3.0 percent and 1.2 percent, respectively, compared to the same periods in 1993. Although revenue decreased, profit margins improved substantially during the third quarter and the first nine months of 1994 as the Company continued to focus on higher margin business and reduce expenses. Net engineering services profit margin increased to 8.5 percent from 5.7 percent in the third quarter of 1994 and to 7.7 percent from 4.3 percent during the first nine months of 1994 compared to the same periods in 1993. Radian Corporation, the Company's environmental services subsidiary, has continued to improve its results over the previous year. The increase in Radian's operating margin for the first nine months of 1994 compared to the same period in 1993 accounted for the majority of the change in engineering services. Investment Operations - - --------------------- The Company's investment strategy continues to be to maximize total return on the investment portfolio over the long-term -- through investment income and capital appreciation. Investment income decreased 12.3 percent for the third quarter of 1994 compared to the third quarter of 1993 and 15.5 percent for the first nine months of 1994 compared to the first nine months of 1993. Realized investment gains decreased 72.3 percent in the third quarter of 1994 and 62.6 percent for the first nine months of 1994 compared to the same periods in 1993. The decrease in investment income resulted primarily from declines in rates of return and a decrease in average invested assets. The decrease in average invested assets resulted from cash used to pay dividends, repurchase Company stock and purchase fixed assets. Since the second quarter of 1994 the Company experienced improvement in net unrealized gains in its investment portfolio, despite the fact that average invested assets decreased. The improvement in net unrealized gains is representative of the rebound the equity market experienced in the third quarter following an overall market decline in the first half of 1994. While this rebound contributed favorably to the Company's ability to generate investment income and improve shareholders' equity, to date, net unrealized gains have not yet been restored to 10 December 31, 1993 levels. As a defensive move to anticipated increases in interest rates, the Company continues to shorten the maturity of its fixed income portfolio and has reduced the mix of its equity holdings in relation to total invested assets. The Company's investment portfolio continues to consist of high grade investments. Equity securities, including non-redeemable preferreds, and fixed maturities, including redeemable preferreds, are carried at fair value and are classified as available for sale. The market value of the portfolio at September 30, 1994 decreased to $448.1 million from $506.0 million at December 31, 1993. The $57.9 million decline was the result of both the decrease in average invested assets and lower unrealized investment gains. FINANCIAL CONDITION - - ------------------- Capital Resources - - ----------------- Capital resources consist of shareholders' equity and debt outstanding representing those funds deployed or available to be deployed to support business operations. Shareholders' equity of $303.8 million at September 30, 1994 decreased by $20.9 million since December 31, 1993, representing a decrease in book value per share of $0.95 to $14.85 from $15.80. The decrease in book value per share relates primarily to the decrease in unrealized gains, net of tax, of $23.6 million during the first nine months of 1994, and share repurchases. Dividends paid by the Company are limited by state insurance regulations. The current restriction is the greater of 10 percent of statutory surplus or prior year's net income as reported to the regulatory agencies. Due to the Company's strong financial position, regulatory approval was received for the payment of dividends declared through September 30, 1994. At September 30, 1994, the Company had significant short-term and long-term borrowing capacity. The Company is currently authorized to issue up to $75 million of commercial paper. Commercial paper outstanding at September 30, 1994 and December 31, 1993 was $31.1 and $42.7 million, respectively. During 1994, approximately $43.0 million of debt of EIG matured and was repaid through reductions in EIG's investments. Other than the anticipated acquisition of EIG, the Company currently has no significant capital commitments planned for the remainder of 1994 and beyond. Liquidity - - --------- Liquidity refers to the Company's ability to generate sufficient funds to meet the cash requirements of its business operations. 11 The Company receives a regular inflow of cash from maturing investments, engineering and insurance operations and maintains a highly liquid investment portfolio. The Company manages its cash and short-term investment position to meet its operating expense and claim payment needs. Cash provided from operations for the first nine months of 1994 was $31.1 million compared to $59.0 million for the first nine months of 1993. The decrease in cash provided from operations was primarily related to claims settlement for losses incurred in 1993 and severance payments related to restructuring. These were offset by stronger operating results and changes in reinsurance recoverable and receivables. Cash provided by operations and investment activities was used to pay dividends, repay short-term borrowings, purchase fixed assets and repurchase Company stock. 12 EX-5 6 PAGES 13 AND 14 PART II - OTHER INFORMATION Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits - None. (b) Reports on Form 8-K - Form 8-K filed to report Registrant's purchase from General Reinsurance Corporation its 50 percent interest in Engineering Insurance Group (EIG), a joint partnership of the Registrant and General Reinsurance Corporation formed in 1988. 13 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. THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY Date: November 11, 1994 By: Robert W. Trainer Senior Vice President, Treasurer and Chief Financial Officer Date: November 11, 1994 By: Robert C. Walker Senior Vice President 14 EX-6 7 FINANCIAL DATA SCHEDULE [ARTICLE] 7 [MULTIPLIER] 1,000,000 [PERIOD-TYPE] QTR-3 [FISCAL-YEAR-END] DEC-31-1994 [PERIOD-END] SEP-30-1994 [DEBT-HELD-FOR-SALE] 151 [DEBT-CARRYING-VALUE] 0 [DEBT-MARKET-VALUE] 0 [EQUITIES] 213 [MORTGAGE] 11 [REAL-ESTATE] 0 [TOTAL-INVEST] 441 [CASH] 7 [RECOVER-REINSURE] 37 [DEFERRED-ACQUISITION] 31 [TOTAL-ASSETS] 812 [POLICY-LOSSES] 187 [UNEARNED-PREMIUMS] 166 [POLICY-OTHER] 0 [POLICY-HOLDER-FUNDS] 0 [NOTES-PAYABLE] 32 [COMMON] 10 [PREFERRED-MANDATORY] 0 [PREFERRED] 0 [OTHER-SE] 294 [TOTAL-LIABILITY-AND-EQUITY] 812 [PREMIUMS] 255 [INVESTMENT-INCOME] 19 [INVESTMENT-GAINS] 8 [OTHER-INCOME] 173 [BENEFITS] 111 [UNDERWRITING-AMORTIZATION] 48 [UNDERWRITING-OTHER] 242 [INCOME-PRETAX] 54 [INCOME-TAX] 15 [INCOME-CONTINUING] 39 [DISCONTINUED] 0 [EXTRAORDINARY] 0 [CHANGES] 0 [NET-INCOME] 39 [EPS-PRIMARY] 1.88 [EPS-DILUTED] 0 [RESERVE-OPEN] 0 [PROVISION-CURRENT] 0 [PROVISION-PRIOR] 0 [PAYMENTS-CURRENT] 0 [PAYMENTS-PRIOR] 0 [RESERVE-CLOSE] 0 [CUMULATIVE-DEFICIENCY] 0
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