-----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, FcIhyj4uOgVSj7AnsGwJkpiV/3/MDAwlLauhCzrqk7hDmL1ACp7Hv0cOk7zVB1wZ M5Zfddj4lmGFGeE+Nc0M4g== 0000950170-96-001024.txt : 19961118 0000950170-96-001024.hdr.sgml : 19961118 ACCESSION NUMBER: 0000950170-96-001024 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASSOCIATED BUSINESS & COMMERCE INSURANCE CORP CENTRAL INDEX KEY: 0000928775 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 650496132 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 033-83116 FILM NUMBER: 96665657 BUSINESS ADDRESS: STREET 1: 4700 NW BOCA RATON BLVD STREET 2: STE 400 CITY: BOCA RATON STATE: FL ZIP: 33431 BUSINESS PHONE: 4079970708 MAIL ADDRESS: STREET 1: 4700 NW BOCA RATON BLVD STREET 2: STE 400 CITY: BOCA RATON STATE: FL ZIP: 33431 10-Q 1 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, 1996 Commission file number 33-83116 ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION (Exact name of Registrant as specified in its charter) FLORIDA 65-0496132 ------------------------------ ------------------- (State or other jurisdiction of (IRS Employer incorporation of organization) Identification No.) 4700 NW BOCA RATON BOULEVARD, SUITE 400, BOCA RATON, FL 33431 ------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (561) 997-0708 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(b) 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 [ ] The number of the outstanding Preferred Stock held by nonaffiliates of the Registrant on November 7, 1996 was 249,716 shares.
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION TABLE OF CONTENTS Part I. Financial Information Statement of Operations (unaudited), three months and nine months ended September 30, 1996............3 Balance Sheets, September 30, 1996 (unaudited) and December 31, 1995..................................4 Statements of Changes in Stockholders' Equity, nine months ended September 30, 1996 (unaudited) and the year ended December 31, 1995................................6 Statement of Cash Flows (unaudited), nine months ended September 30, 1996.............................7 Notes to Financial Statements (unaudited) ............................................................8 Management's Discussion and Analysis of Financial Condition and Results of Operations................13 Part II Other Information Item 1. Legal Proceedings.........................................................................15 Item 2. Changes in Securities.....................................................................15 Item 3. Defaults Upon Senior Securities...........................................................15 Item 4. Submission of Matters to a Vote of Security Holders......................................15 Item 5. Other Information.........................................................................15 Item 6. Exhibits and Reports on Form 8-K.........................................................15 Signatures........................................................................................16
PART I FINANCIAL INFORMATION ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION STATEMENT OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996 UNAUDITED THREE MONTHS NINE MONTHS ENDED ENDED SEPTEMBER 30, SEPTEMBER 30, 1996 1996 ------------ ------------ Revenues: Standard premium earned, net of discounts $ 7,946,489 $ 21,587,766 Less premium ceded for reinsurance 5,302,634 15,099,101 ------------ ---------- Net premium earned 2,643,855 6,488,665 ------------ ---------- Less loss and loss adjustment expenses 1,402,347 3,842,383 ------------ ---------- Premiums available for operations 1,241,508 2,646,282 Earned premium LPT transaction 79,477 324,513 Interest earnings 180,082 649,861 ----------- ---------- 1,501,067 3,620,656 ------------ ---------- Policy acquisition and other underwriting expenses 1,333,250 3,169,839 ------------ ---------- Income before income taxes 167,817 450,817 Income tax expense 138,297 234,297 ------------ ---------- Net income $ 29,520 $ 216,520 ============ =========== Earnings per common share and common share equivalent $ 0.29 $ 1.68 ============ ===========
The accompanying notes are an integral part of these financial statements. -3-
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION BALANCE SHEET SEPTEMBER 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995 ASSETS ------ SEPTEMBER 30, DECEMBER 31, 1996 1995 -------------- ------------ (UNAUDITED) Investments with fixed maturities $ 9,751,896 $ 14,439,231 Cash and cash equivalents 2,311,149 2,242,245 Premiums receivable, less allowance for doubtful accounts 1996 $1,033,059; 1995 $613,125 5,599,393 4,849,556 Reinsurance and related recoverables: Paid loss recoverable 403,700 94,598 Loss and loss adjustment expenses 18,258,957 14,471,111 Prepaid reinsurance premiums - 530,957 Advances receivable 344,692 175,832 Accrued investment income 114,336 211,277 Prepaid expenses 260,846 1,821,000 Deferred income taxes 930,000 1,084,000 Deferred policy acquisition costs 412,544 389,737 Equipment, less accumulated depreciation 1996 $66,294; 1995 $4,837 632,684 289,871 Other assets, net 78,461 101,202 ------------ ------------ $ 39,098,658 $ 40,700,617 ============ ============
The accompanying notes are an integral part of these financial statements. - 4 -
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION BALANCE SHEET - CONTINUED SEPTEMBER 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995 RESERVES, LIABILITIES AND STOCKHOLDERS' EQUITY SEPTEMBER 30, December 31, 1996 1995 -------------- ------------- (Unaudited) Reserves for losses and loss adjustment expenses $ 25,612,542 $ 28,306,416 Liabilities: Accounts payable and accrued expenses 4,071,218 2,709,469 Unearned and return premium payable 3,056,013 2,346,983 Deferred gain on loss portfolio transfer 436,365 760,878 Accrued income taxes and special tax deposits -- 1,078,200 ----------- --------- 7,563,596 6,895,530 Commitments and contingencies Total reserves and liabilities 33,176,138 35,201,946 Stockholders' equity: Convertible preferred stock series A, 6% cumulative, $1 par value, authorized shares 1,900,000; issued and outstanding 246,935 shares (aggregate liquidation preference of $2,469,350 at September 30, 1996) 246,935 221,805 Additional paid - in capital, preferred series A 2,222,415 1,996,245 Convertible preferred stock series B, $1 par value, authorized, issued and outstanding 3,200,000 shares 3,200,000 3,200,000 Common stock, $1 par value, authorized 15,000,000 shares; 102,501 shares issued and outstanding 102,501 102,501 Retained earnings (deficit) 150,669 (21,880) ------------ ------------ 5,922,520 5,498,671 ------------ ------------ $ 39,098,658 $ 40,700,617 ============ ============
The accompanying notes are an integral part of these financial statements. - 5 -
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND THE YEAR ENDED DECEMBER 31, 1995 ADDITIONAL PAID-IN PREFERRED STOCK CAPITAL RETAINED --------------- PREFERRED COMMON EARNINGS SERIES A SERIES B SERIES A STOCK (DEFICIT) -------- -------- -------- -------- --------- Balance, beginning of period $ -- $ -- $ -- $102,501 $ (10,245) Preferred stock issued for cash 221,805 3,200,000 1,996,845 Net (loss) (11,635) -------- --------- --------- -------- ------- Balance, December 31, 1995 221,805 3,200,000 1,996,845 102,501 (21,880) Preferred stock issued for cash (Unaudited) 25,130 225,570 Dividends to preferred stockholders (Unaudited) (43,971) Net income (Unaudited) 216,520 --------- ----------- ---------- -------- --------- Balance September 30, 1996 (Unaudited) $ 246,935 $3,200,000 $2,222,415 $102,501 $ 150,669 ========= =========== ========== ======== =========
The accompanying notes are an integral part of these financial statements -6- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED) OPERATING ACTIVITIES Net income $ 216,520 Adjustments: Change in net insurance reserves (6,790,822) Change in premiums receivable (749,837) Accrued income taxes (1,078,200) Other 4,188,224 ---------- Net cash and cash equivalents (used in) operating activities (4,214,115) ---------- INVESTING ACTIVITIES Proceeds from investment maturities and sales 4,630,620 Payments for other assets, net (1,800) Purchase of equipment (384,270) Payments of advances, net (168,860) ---------- Net cash and cash equivalents provided by investing activities 4,075,690 ---------- FINANCING ACTIVITIES Payment of preferred dividends (43,971) Proceeds from issuance of preferred stock 251,300 ---------- Net cash and cash equivalents provided by financing activities 207,329 --------- Net increase in cash and cash equivalents 68,904 Cash and cash equivalents, beginning of period 2,242,245 ----------- Cash and cash equivalents, end of period $ 2,311,149 =========== The accompanying notes are an integral part of these financial statements. - 7 - ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 UNAUDITED NOTES 1 - BASIS OF PRESENTATION The financial information presented as of any date other than December 31 has been prepared from the books and records without audit. Financial information as of December 31 has been derived from the audited financial statements of the Company, but does not include all disclosures required by generally accepted accounting principles. The accompanying financial statements have been prepared in conformity with generally accepted accounting principles. These financial statements rely, in part, on estimates. In the opinion of management, all necessary adjustments have been reflected for a fair presentation of the results of operations, financial position and cash flows in the accompanying unaudited financial statements. The results for the period are not necessarily indicative of the results to be expected for the entire year. Reference should be made to the "Notes to Financial Statements" on pages F - 8 through F - 22 of the registrant's Form 10 - K for the year ended December 31, 1995. The amounts in those notes have not changed except as a result of transactions in the ordinary course of business or as otherwise disclosed in these notes. Some figures in the 1995 financial statements have been reclassified to conform with the 1996 presentation. These reclassifications have no effect on net income or stockholders' equity, as previously reported. Comparative results of operations and cash flow information is not presented because the registrant did not begin insurance operations until December 1995. Activity until that time was limited to organizational activities. NOTE 2 - INVESTMENTS Investment activity for the period ending September 30, 1996 consisted of the collection of maturities, early call proceeds and proceeds from the sale of certain available for sale fixed maturity securities, which totaled $4,630,620. The market value of the Company's available for sale fixed maturity securities continued to approximate amortized cost; accordingly no provision for appreciation or depreciation in investments is recorded in stockholders' equity. -8- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 UNAUDITED NOTE 3 - EARNINGS PER SHARE Earnings per common share were calculated by dividing net income by the adjusted average number of common shares outstanding. Net income was adjusted by preferred dividends declared and paid during April 1996. There was no change in the average number of outstanding common shares from December 31, 1995, and there was no dilution of common stock because the preferred stock is not convertible to common stock before January 1, 2000. The calculation of earnings per share for the three and nine month periods ended September 30, 1996 is based upon the following information: Three Months Nine Months Ended Ended September 30, September 30, 1996 1996 ------------- ------------ $ 29,520 $ 216,520 Net income Dividends applicable to Convertible Series A, 6% cumulative preferred stock - (43,971) ------------- ------------ $ 29,520 $ 172,549 ============ ============ NOTE 4 - INCOME TAXES The provision for income taxes for the period ended September 30, 1996 is as follows: Federal income taxes currently payable (refundable) $ 176,297 Deferred federal income taxes 58,000 ------------ $ 234,297 ============ NOTE 5 - REINSURANCE The Company's financial statements reflect the effects of ceded reinsurance transactions. The Company does not assume reinsurance in the ordinary course of business. However, effective November 30, 1995, the Company, in a transaction approved by the Florida Department of Insurance, assumed the insurance assets and liabilities of Associated Business & Commerce Workers' Compensation Self - Insurance Fund, the Company's predecessor (the "Fund"), by virtue of a loss portfolio ("LPT") transaction. The excess of premium received over losses assumed was treated as deferred LPT premium on the balance sheet. The deferred LPT premium is earned in the ratio of assumed losses paid to total assumed losses. Deferred LPT premium earned for the period ended September 30, 1996 totaled $324,513. -9- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 UNAUDITED NOTE 5 - REINSURANCE (CONTINUED) Ceded reinsurance involves transferring certain risks the Company has underwritten to other insurance companies who agree to share these risks. The primary purpose of ceded reinsurance is to protect the Company from potential losses in excess of the amount it is prepared to accept. The Company expects those with whom it has ceded reinsurance to honor their obligations. In the event these companies are unable to honor their obligations, the Company will pay the shortfall. The following table summarizes the effect of reinsurance on premiums earned and insurance losses and loss adjustment expenses for the period ended September 30, 1996: Premiums earned: Direct $ 21,587,766 Ceded (15,099,101) ------------- Net premiums earned $ 6,488,665 ============= Insurance losses and loss adjustment expenses: Direct $ 12,789,849 Ceded (8,947,466) ------------- Net insurance losses $ 3,842,383 ============= NOTE 6 - LEGAL PROCEEDINGS From time to time, the Company may be involved in workers' compensation proceedings relating to claims arising out of its operations in the normal course of business. As of the filing date of this report, the Company is not party to any legal proceedings outside of its ordinary workers compensation settlement business which management believes would materially affect the financial position or operations of the Company with the exception of the matter described below. -10- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 UNAUDITED NOTE 6 - LEGAL PROCEEDINGS (CONTINUED) In July, 1992, the Fund filed a lawsuit in the State Circuit Court of Palm Beach County, Florida, for breach of contract against Advanced Risk Management Incorporated ("ARMI") claiming damages for excess fees and advances collected by ARMI, the former service company of the Fund. A counterclaim was filed by ARMI alleging breach of contract, breach of fiduciary duty and fraud. On January 2, 1994, the court granted summary judgment in favor of the Fund with respect to all of the counterclaims made by ARMI. The summary judgment was appealed by ARMI and reversed by the Fourth District Court of Appeal, which remanded the matter back to the trial court to resolve specific issues. On December 15, 1995 the trial court granted the Fund's renewed motion for summary judgment. ARMI has filed an appeal as to this judgment as well. The Fund intends to continue to pursue and defend this claim on its own behalf. There can be no assurance however, that, in the event of an unfavorable ruling against the Fund, recovery would not be sought from the Company. In the event there is an unfavorable outcome, which management believes to be unlikely, the Fund's liability is estimated at less than $1,000,000. NOTE 7 - RELATED PARTY TRANSACTIONS All of the Company's outstanding common stock as well as all of the outstanding Series B preferred stock are owned by the Company's parent, Associated Business & Commerce Holdings, Inc. ("Holdings"). Holdings was organized in March 1995 for the purpose of providing financing and performing certain management services for the Company under a management agreement. All common stock and Series B preferred stock have been pledged as collateral against a note payable issued by Holdings. The note payable of Holdings was issued to the Company's quota share reinsurer, Underwriters Reinsurance Company ("Underwriters"). The loan bears interest at 12.75% per annum, and, if not prepaid, is due on December 31, 2001. Holdings expects to repay the loan from fees paid by the Company under a management agreement. Holdings renegotiated the loan agreement with Underwriters during the second quarter of 1996 to eliminate any debt service payment requirements for the balance of 1996 and through March of 1997. In addition, Underwriters agreed to re-loan all then paid principal on the note of approximately $162,400. As a result of these arrangements, Holdings reduced the management fee charged the Company, dollar for dollar, and agreed to refund $162,400 of such fees paid through the first quarter when received by Holdings. -11 ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 UNAUDITED NOTE 7 - RELATED PARTY TRANSACTIONS (CONTINUED) The terms of the management agreement call for a fee of 14.1% of the Company's written premium to be paid to Holdings in return for Holdings performing certain administrative functions and for paying certain costs on behalf of the Company. Through September 30, 1996, management fees payable pursuant to the agreement would have approximated $3,045,000. The effect of the temporary revision described above, through September 30, reduced management fees payable to $2,751,000. Policy acquisition and other underwriting expenses reflected in the statement of operations for the period ended September 30, 1996 are net of $3,734,463 in ceding commissions paid to the Company by Underwriters. The advances receivable at September 30, 1996 of $344,692 represents working capital advances to Holdings and are non - interest bearing. $162,400 of the advance is attributable to the reduced management fee to Holdings, which will be repaid upon Holdings receipt of the principal refund from Underwriters. NOTE 8 - STOCKHOLDERS' EQUITY On May 2, 1996, the Company's Board of Directors adopted an amendment to its articles of incorporation to increase the number of authorized shares of 6% Cumulative Convertible Preferred Stock, Series A, from 900,000 to 1,900,000. -12- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SEPTEMBER 30, 1996 RESULTS OF OPERATIONS The Company is reporting income before taxes for the first three quarters of 1996 of $216,000 based on gross premium volume of $21,600,000. Annualized premium as of September 30, 1996 amounts to approximately $28,800,000 or a slight increase in the calendar year 1995 amount of $27,900,000. As discussed in the Company's Form 10-K for 1995, certain insureds elected not to renew their coverage with the Company effective January 1, 1996, which management perceived as being the result of increased competition generated by favorable 1993 legislative changes and also the late date in 1995 that the Company completed its plan to announce the availability of non-assessable insurance coverage. Since the Form 10-K was prepared and filed, the Company has written new business which has resulted in a restoration to 1995 writing levels. The adjustments to premium pricing and availability factors as discussed in the Form 10-K have resulted in a greater portion of submissions being accepted by potential customers. Although writings have been restored to 1995 levels, leading management to be optimistic regarding the Company's 1996 writings, the adjustments to budgeted expenditures made by management in response to the reduction of January 1, 1996 renewals remain in place, to be modified only to the extent required by increasing premium volume. As a result of the full absorption of the Company's 70% quota-share arrangements, earned premiums ceded for reinsurance (including excess loss re-insurance) amounts to 69.9% of earned premium. Loss and operating expense ratios are effected somewhat by the ceding of premium in comparison to 1995's ratios during which the quota-share treaty was only in effect for the last quarter of the year. For the first three quarters of 1996, the loss and loss expense ratio is 59.2% and the expense ratio is 43.9% or a combined ratio of 103.1%. The investment ratio (interest and investment earnings divided by net earned premium) amounted to 10.0% through the third quarter resulting in an overall operating ratio of 93.1%. Included within the statement of operations is recognition of deferred gain on the loss portfolio transfer transaction between the Company and the Fund of approximately $325,000. Without the recognition of this gain, the Company would have recorded operating income before income taxes of approximately $126,000. For the nine months ended September 30, 1995, the Fund reported earned premium of approximately $20,600,000 and income before taxes of approximately $187,000 in its unaudited financial statements. The Fund was not a party to any quota-share reinsurance treaty during that period nor was any management agreement in effect as is the case with the Company for 1996. Policy acquisition and other underwriting expenses for the Company for the first quarter included approximately $144,000 of amounts paid to Holdings which were utilized by Holdings for debt service on its loan from Underwriters. However, based upon Holdings renegotiating the terms of its note payable to Underwriters, no amount of the management fee was used for debt service during the second or third quarters. As discussed above and in Note 7 to the financial statements, management fees payable by the Company to Holdings through September 30, 1996 have been reduced by approximately $300,000 attributable to Holdings reduced debt service payment requirements on its loan from Underwriters. ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SEPTEMBER 30, 1996 LIQUIDITY AND CAPITAL RESOURCES As was anticipated and described in the Company's Form 10-K, cash flows from operating activities for the first three quarters were a negative $4,200,000. This was anticipated because of the Company's quota-share arrangements with Underwriters. Such negative cash flows from operations were offset by proceeds from investment maturities, sales and other investment activities realizing cash flows of approximately $4,600,000 and from proceeds from the issuance of additional Series A preferred stock of approximately $251,000 resulting in an overall increase in cash and cash equivalents for the nine months ended September 30, 1996 of approximately $69,000. Invested assets reduced from $14,400,000 at the end of 1995 to $9,800,000 as of September 30, 1996 with an increase in cash of approximately $69,000. Negative cash flows from operations are expected to continue throughout 1996 as funding of the quota-share recoverables continues by virtue of the transfer of premium to the quota-share reinsurer pursuant to the quota-share treaty. As claims are settled and paid in the future, management anticipates that such negative flows will eventually reverse or stabilize as reimbursements due from the reinsurer for claims paid and other reimbursements for operating expenses equal or exceed premiums due pursuant to the treaty. On a statutory basis, the Company is reporting statutory surplus of approximately $5,400,000 and statutory net income of $750,000 for the nine months ended September 30, 1996. Based upon the Company's current writings, required statutory surplus is the minimum of $4,000,000, pursuant to Florida's Insurance Code. ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS There have been no significant developments in those matters discussed in Item 3 of the Company's Form 10-K for 1995. ITEM 2. CHANGES IN SECURITIES Not Applicable. ITEM 3. DEFAULTS UPON SENIOR SECURITIES The board of directors of the Company declared the dividend of $.30 payable on October 1, 1996 on the 6% Cumulative Preferred Stock, Series A. The total amount of such arrearage on the date of filing of this report is $74,080. However, the dividend remains unpaid as of November 14, 1996 pending approval by the Florida Department of Insurance. If the Department of Insurance does not approve the October 1 dividend, it will accrue. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not Applicable. ITEM 5. OTHER INFORMATION Not Applicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. a) EXHIBIT INDEX Exhibit 27 Financial Data Schedule b) Reports on Form 8-K - The Company filed no reports on Form 8-K during the quarter ended September 30, 1996. 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. ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION REGISTRANT Date: November 14, 1996 /s/ JAMES R. NAU -------------------------------- James R. Nau President Date: November 14, 1996 /s/ CLIFFORD G. MERRITT ---------------------------------- Clifford G. Merritt Vice President, Finance (Principal Financial and Accounting Officer) EX-27 2
7 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND THE UANUDITED BALANCE SHEET AS OF SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 2,358,739 7,393,157 7,081,413 0 0 0 9,751,896 2,311,149 403,700 412,544 39,098,658 25,612,542 3,056,013 0 0 0 0 5,669,350 102,501 0 39,098,658 6,488,665 625,476 (24,385) 324,513 3,842,383 1,540,712 1,629,127 450,817 234,297 216,520 0 0 0 216,520 1.68 1.68 28,306,416 3,842,383 0 712,280 9,209,925 25,612,542 0
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