-----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, QBuW2gy08LckmvzMOGqMCobhpUx8bbD+VByutr7Pi3QFqfpwirtqSc2yD7yHhduX /2u9w59cHwBeuIWsiDi6mQ== 0000109747-99-000012.txt : 19991122 0000109747-99-000012.hdr.sgml : 19991122 ACCESSION NUMBER: 0000109747-99-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN SECURITY LIFE INSURANCE CO CENTRAL INDEX KEY: 0000109747 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 591231733 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 002-35669 FILM NUMBER: 99760677 BUSINESS ADDRESS: STREET 1: 755 RINEHART RD STREET 2: P O BOX 958402 CITY: LAKE MARY STATE: FL ZIP: 32746 BUSINESS PHONE: 4073217113 MAIL ADDRESS: STREET 1: P O BOX 958402 STREET 2: 755 RINEHART ROAD CITY: LAKE MARY STATE: FL ZIP: 32746 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA LIFE INSURANCE CO OF FLORIDA DATE OF NAME CHANGE: 19790501 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 1999 Commission File Number: 2-35669 SOUTHERN SECURITY LIFE INSURANCE COMPANY Exact Name of Registrant. FLORIDA 59-1231733 - ------------------------------- ------------------------- (State or other jurisdiction of IRS Identification Number incorporation or organization 755 Rinehart Road, Lake Mary, Florida 32746 - -------------------------------------- ------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including Area Code (407) 321-7113 -------------- 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 XX NO Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class A Common Stock, $1.00 par value 1,907,989 - ------------------------------------- -------------- Title of Class Number of Shares Outstanding as of September 30, 1999 SOUTHERN SECURITY LIFE INSURANCE COMPANY FORM 10Q QUARTER ENDED SEPTEMBER 30, 1999 TABLE OF CONTENTS PART I - FINANCIAL INFORMATION Item 1 Financial Statements Page No. Statements of Income - Nine and Three Months ended September 30, 1999 and 1998. . . . . . . . . . 3 Balance Sheets - September 30, 1999 and December 31, 1998. . . . . . . . . . . . . . . 4-5 Statements of Cash Flows - Nine months ended September 30, 1999 and 1998. . . . 6 Notes to Condensed Financial Statements. . . . . . . 7 Item 2 Management's Discussion and Analysis. . . . 8-11 Item 3 Quantitative and Qualitative Disclosure of Market Risk. . . . . . . . . . . . . . . . .11 PART II - OTHER INFORMATION Other Information. . . . . . . . . . . . . . . . 12-13 Signature Page . . . . . . . . . . . . . . . . . . .14
SOUTHERN SECURITY LIFE INSURANCE COMPANY Statements of Income (Unaudited) Nine Months Ended Three Months Ended September 30, September 30, 1999 1998 1999 1998 ---------- ---------- --------- ---------- Revenues: Net insurance revenues $5,224,546 5,807,306 2,048,276 1,926,348 Net investment income 2,072,294 2,782,706 344,292 914,719 Net investment income with related parties 638,150 -- 242,514 -- Realized gain on investments -- 414,184 -- -- Other 760,143 -- 38,239 -- ---------- --------- --------- ---------- Total revenues 8,695,133 9,004,196 2,673,321 2,841,067 Benefits, losses and expenses: Annuity, death, surrender and other policy benefits 3,269,224 3,333,074 638,841 1,015,375 Increase in future policy benefits 179,228 358,928 40,722 131,975 Amortization of deferred policy acquisition costs 2,189,984 2,377,017 715,578 650,294 Commissions and operating expenses 2,312,005 2,600,743 832,948 775,581 Interest expense with related party 67,500 67,500 22,500 22,500 ---------- ---------- ---------- ---------- Total benefits and expenses 8,017,941 8,737,262 2,250,589 2,595,725 ---------- ---------- ---------- ---------- Income (loss) before income taxes 677,192 266,934 422,732 245,342 Income tax expense (benefit) 261,396 100,100 162,920 93,051 ---------- ---------- ---------- ---------- Net income (loss) $ 415,796 $ 166,834 $ 259,812 $ 152,291 ========== ========== ========== =========== Basic net income (loss) per share of common stock $.22 $0.08 $.14 $0.08 ==== ===== ==== ===== Diluted net income (loss) per share of common stock $.22 $0.08 $.14 $0.08 ==== ===== ==== =====
See accompanying notes to condensed financial statements.
SOUTHERN SECURITY LIFE INSURANCE COMPANY BALANCE SHEETS September 30, 1999 December 31, (Unaudited) 1998 ------------------- ------------- Assets: Investments: Fixed maturities held-to maturity at amortized cost $ 4,808,074 $ 4,956,910 Securities available for sale, at fair value: Fixed maturities 24,495,071 28,479,161 Equity securities 273,971 250,232 Equity securities of related party 405,349 -- Policy and student loans 8,251,654 8,462,438 Short-term investments 6,252,491 11,434,983 Short-term investments with related party 4,346,908 -- ----------- ------------ Total investments 48,833,518 53,583,724 Cash and cash equivalents 3,081,465 682,389 Accrued investment income 770,545 564,118 Deferred policy acquisition costs 12,913,351 13,583,956 Policyholders' account balances on deposit with reinsurer 8,319,761 8,518,571 Reinsurance receivable 305,090 306,258 Receivables: Agent balances 1,256,690 994,493 Other 566,204 351,478 Refundable income taxes 34,951 34,951 Property and equipment, net, at cost 2,468,776 2,585,255 ------------ ----------- Total assets $78,550,351 $81,205,193 =========== ===========
See accompanying notes to condensed financial statements.
SOUTHERN SECURITY LIFE INSURANCE COMPANY BALANCE SHEETS (Continued) September 30, 1999 December 31, (Unaudited) 1998 ------------------ ------------ Liabilities and Shareholders' Equity: - ------------------------------------ Liabilities: Policy liabilities and accruals $ 1,906,528 $ 1,727,300 Future policy benefits: Policyholders' account balances 51,172,887 52,520,300 Unearned revenue 5,189,749 6,023,399 Other policy claims and benefits payable 866,943 540,789 Other Policyholders' funds, dividend and endowment accumulations 68,061 64,738 Funds held related to reinsurance treaties 1,434,831 1,419,357 Note payable to related party 1,000,000 1,000,000 Due to affiliated insurance agency 188,927 22,871 General expenses accrued 193,478 747,148 Unearned investment income 334,484 340,622 Other liabilities (28,830) 90,489 Deferred income taxes 615,880 796,074 ----------- ----------- Total liabilities 62,942,938 65,293,087 Shareholders' Equity: Common stock, $1 par, authorized 3,000,000 shares; issued and outstanding 1,907,989 shares 1,907,989 1,907,989 Capital in excess of par 4,011,519 4,011,519 Accumulated other comprehensive income (loss) (290,328) 430,161 Retained earnings 9,978,233 9,562,437 ----------- --------- Total common stock 15,607,413 15,912,106 ----------- ----------- Total liabilities and stockholders' equity $78,550,351 $81,205,193 =========== ===========
See accompanying notes to condensed financial statements.
SOUTHERN SECURITY LIFE INSURANCE COMPANY STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 1999 1998 ---------- -------- Net cash provided by (used in) operating activities $(1,266,923) $ 2,495,351 ----------- ----------- Cash flows provided by (used in) investing activities: Purchase of investments available for sale (equity and fixed maturity) (405,349) (6,782,600) Proceeds from maturity of held to maturity securities 130,301 4,066,507 Proceeds from maturity of available for sale securities 2,833,129 299,281 Proceeds from sale of available for sale securities (equity and fixed maturity) -- 6,779,007 Net change in short-term investments 835,584 100,000 Net change in policy and student loans 210,784 (238,688) Acquisition of property and equipment -- (69,125) ----------- ----------- Net cash provided by investing activities 3,474,148 4,154,382 ----------- ----------- Cash flows provided by (used in) financing activities: Receipts from universal life and certain annuity policies credited to policyholder account balances 5,030,285 2,070,140 Return of policyholder account balances on universal life and certain annuity policies (4,968,735) (3,479,934) ----------- ----------- Net cash used in financing activities 61,550 (1,409,794) ----------- ----------- Increase in cash and cash equivalents 2,399,076 5,239,939 Cash and cash equivalents at beginning of period 682,389 2,448,994 ----------- ----------- Cash and cash equivalents at end of period $ 3,081,465 $ 7,688,933 =========== ===========
See accompanying notes to condensed financial statements. SOUTHERN SECURITY LIFE INSURANCE COMPANY Notes to Condensed Financial Statements September 30, 1999 (Unaudited) 1. Basis of Presentation --------------------- The accompanying unaudited condensed financial statements have been prepared by management in conformity with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by generally accepted accounting principles for complete financial statements. All adjustments and accruals considered necessary for fair presentation of financial information have been included in the opinion of management, and are of a normal recurring nature. Quarterly results of operations are not necessarily indicative of annual results. These statements should be read in conjunction with the financial statements and the notes thereto included in the Southern Security Life Insurance Company 1998 Annual Report on Form 10-K for the fiscal year ended December 31, 1998 (file number 2-35669). The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The estimates susceptible to significant change are those used in determining the liability for future policy benefits and claims. Although some variability is inherent in these estimates, management believes the amounts provided are adequate. 2. Comprehensive Income -------------------- For the nine months ended September 30, 1999 and 1998, total comprehensive income (loss) was $(305,000) and $438,000, respectively. For the three months ended September 30, 1999 and 1998, total comprehensive income was $227,000 and $419,000, respectively. 3. Management Fees --------------- Effective December 17, 1998, the Company entered into an Administrative Services Agreement with Security National Financial Corporation ("SNFC"). Under the terms of the agreement, SNFC has agreed to provide the Company with certain defined administrative and financial services, including accounting services, financial reports and statements, actuarial, policyholder services, underwriting, data processing, legal, building management, marketing advisory services and investment services. In consideration for the services to be provided by SNFC, the Company shall pay SNFC an administrative services fee of $250,000 per month, provided, however, that such fee shall be reduced to zero for so long as the capital and surplus of the Company is less than or equal to $6,000,000 unless the Company and SNFC otherwise agree in writing and such agreement is approved by the Florida Department of Insurance. The administrative services fee may be increased, beginning on January 1, 2001, to reflect increases in the Consumer Price Index, over the index amount as of January 1, 2000. The Administrative Services Agreement shall remain in effect for an initial term expiring on December 16, 2003. The term of the agreement may be automatically extended for additional one- year terms unless either the Company or SNFC shall deliver a written notice on or before September 30 of any year stating to the other its desire not to extend the term of the Agreement. However, in no event can the Agreement be terminated prior to December 16, 2003. It is anticipated that the Company will realize a reduced level of general and administrative costs in the future as a result of the Administrative Services Agreement. Item 2. Management's Discussion and Analysis ------------------------------------ Overview This analysis of the results of operations and financial condition of Southern Security Life should be read in conjunction with the Condensed Financial Statements and Notes to the Condensed Financial Statements included in this report. In recent years, the Company has primarily issued two types of insurance products: universal life and final expense products. Universal life provides insurance coverage with flexible premiums, within limits, which allow policyholders to accumulate cash values. The accumulated cash values are credited with tax-deferred interest, as adjusted by the Company on a periodic basis. Deducted from the cash accumulations are administrative charges and mortality costs. Should a policy surrender in its early years, the Company assesses a surrender fee against the cash value accumulations based on a graded formula. Final expense products are traditional endowment type insurance policies written for the senior market. Because the products are written to a senior market they are designed to accommodate adverse health conditions. Because of the size of the policies, the products are usually issued with only limited underwriting. The coverage size of the policy is roughly equivalent to the insured's anticipated funeral costs. An additional source of income to the Company is investment revenue. The Company invests those funds deposited by policyholders of universal life and annuity products in debt and equity securities in order to earn interest and dividend income, a portion of which is credited back to the policyholders. Interest rates and maturities of the Company's investment portfolio play an important part in determining the interest rates credited to policyholders. Product profitability is affected by several different factors, such as mortality experience (actual versus expected), interest rate spreads (excess interest earned over interest credited to policyholders) and controlling policy acquisition costs and other costs of operation. The results of any one reporting period may be significantly affected by the level of death claims or other policyholder benefits incurred due to the Company's relatively small size. Results of Operations Third Quarter of 1999 Compared to Third Quarter of 1998 Total revenues decreased by $168,000, or 5.9%, to $2,673,000 for the three months ended September 30, 1999, from $2,841,000 for the three months ended September 30, 1998. Contributing to this decrease was a $38,000 increase in other revenues, a $122,000 increase in net insurance revenue, and a $329,000 decrease in net investment income. Net insurance revenues increased $122,000, or 6.3%, to $2,048,000 for the three months ended September 30, 1999, from $1,926,000 for the three months ended September 30, 1998. This increase was primarily the result of additional income for assumed group insurance. Net investment income decreased by $329,000, or 36.0%, to $586,000 for the three months ended September 30, 1999, from $915,000 for the three months ended September 30, 1998. This decrease was primarily the result of a reduction to policy loan interest and additional investment expenses. Other revenues totaled $38,000 for the three months ended September 30, 1999, as compared to none for the same period in 1998. This amount was the result of a settlement from insurance claims filed for the recovery of the costs to litigate a case against a former officer of the Company. Annuity, death, surrender, and other policy benefits and increase in future policy benefits decreased by $468,000, or 40.8%, to $679,000 for the three months ended September 30, 1999, from $1,147,000 for the comparable period in 1998. The decrease was a result of lower policyholder benefits for universal life products. The amortization of deferred policy acquisition costs increased by $65,000, or 10.0%, to $715,000, for the three months ended September 30, 1999, from $650,000 for the comparable period in 1998. The increase in amortization expenses was primarily due to the change in net insurance revenues. Commissions and operating expenses increased by $57,000, or 6.8%, to $833,000 for the three months ended September 30, 1999, from $776,000 for the same period in 1998. The increase was primarily due to the change in insurance revenues, which resulted in higher commission expense. This increase in commission expense was offset by lower operating expenses due to the Company entering into an Administrative Services Agreement with Security National Financial Corporation, an affiliated company, to provide administrative services for a fixed fee. See Note 3 to Condensed Financial Statements. Nine Months Ended September 30, 1999, Compared to Nine Months Ended September 30, 1998. Total revenues decreased by $310,000, or 3.4%, to $8,694,000 for the nine months ended September 30, 1999, from $9,004,000 for the nine months ended September 30, 1998. Contributing to this reduction in total revenues was a $583,000 decrease in net insurance revenues, a $72,000 decrease in net investment income and a $414,000 decrease in realized gain on investments. In addition there was a $760,000 increase in other revenues. Net insurance revenues decreased by $583,000, or 10.0%, to $5,224,000 for the nine months ended September 30, 1999, from $5,807,000 for the nine months ended September 30, 1998. This decrease was primarily the result of a change in the sales mix of the Company's insurance products. Since March 1998, the sales of the Company's funeral plan products have been greater than the universal life products. The universal life products were for greater face amounts than the funeral plan products. Consequently, the insurance revenues from final expense products were less than those from universal life products. The Company's decision in 1998 to reduce its mutual fund holdings resulted in $414,000 in realized gains on investments for the nine months ended September 30, 1998, as compared to no realized gains on investments for the same period in 1999. Net investment income decreased by $73,000, or 2.6%, to $2,710,000 for the nine months ended September 30, 1999, from $2,783,000 for the nine months ended September 30, 1998. This decrease was primarily due to a reduction in invested assets. The reduction in invested assets was a result of lower policyholder account balances due to a change in the Company's sales mix. Other revenues totaled $760,000 for the nine months ended September 30, 1999, as compared to none for the same period in 1998. This amount was the result of a settlement from insurance claims filed for the recovery of the costs to litigate a case against a former officer of the Company. Annuity, death, surrender, and other policy benefits and increase in future policy benefits decreased by $243,000, or 6.6%, to $3,448,000 for the nine months ended September 30, 1999, from $3,691,000 for the comparable period in 1998. The decrease was primarily due to a reduction in interest credited for policyholder funds. The amortization of deferred policy acquisition costs decreased by $187,000, or 7.9%, to $2,190,000, for the nine months ended September 30, 1999, from $2,377,000 for the comparable period in 1998. The decrease in amortization expenses was primarily due to the change in net insurance revenues. Commissions and operating expenses decreased by $289,000, or 11.1% to $2,312,000 for the nine months ended September 30, 1999 from $2,601,000 for the same period in 1998. This reduction was primarily due to the Company entering into an Administrative Services Agreement with Security National Financial Corporation, an affiliated company, to provide administrative services for a fixed fee. See Note 3 to Condensed Financial Statements. Liquidity and Capital Resources The Company attempts to match the duration of invested assets with its policyholder liabilities. The Company may sell investments other than those held-to-maturity in the portfolio to help in this timing; however, to date, that has not been necessary. The Company purchases short-term investments on a temporary basis to meet the expectations of short-term requirements of the Company's products. The Company's investment philosophy is intended to provide a rate of return which will persist during the expected duration of policyholder liabilities regardless of future interest rate movements. The Company's investment policy is to invest predominantly in fixed maturity securities, mortgage loans, and warehouse mortgage loans on a short-term basis before selling the loans to investors in accordance with the requirements and laws governing life insurance companies. Bonds owned by the Company amounted to $29,303,000 as of September 30, 1999 as compared to $33,436,000 as of December 31, 1998. This represents 60.5% and 62.4% of the total investments as of September 30, 1999 and December 31, 1998, respectively. Generally, all bonds owned by the Company are rated by the National Association of Insurance Commissioners. Under this rating system, there are nine categories used for rating bonds. At September 30, 1999, and at December 31, 1998, the Company did not have investments in bonds in rating categories three through nine, which are considered non-investment grade. The Company has classified certain of its fixed income securities as available for sale, with the remainder classified as held to maturity. However, in accordance with Company policy, any such securities purchased in the future will be classified as held to maturity. Business conditions, however, may develop in the future which may indicate a need for a higher level of liquidity in the investment portfolio. In that event the Company believes it could sell short-term investment grade securities before liquidating higher-yielding longer term securities. The Company is subject to risk based capital guidelines established by statutory regulators requiring minimum capital levels based on the perceived risk of assets, liabilities, disintermediation, and business risk. At September 30, 1999 and December 31, 1998, the Company exceeded the regulatory criteria. Lapse rates measure the amount of insurance terminated during a particular period. The Company's lapse rate for life insurance in 1998 was 17.4% as compared to a rate of 20.0% for 1997. The 1999 lapse rate is approximately the same as 1998. At September 30, 1999, $8,886,000 of the Company's consolidated stock- holders' equity represented the statutory stockholders' equity. The Company cannot pay a dividend to its parent company without the approval of insurance regulatory authorities. The Company has no material commitments for capital expenditures. Year 2000 Issues The Company has completed its efforts to resolve the potential impact of the Year 2000 on the processing of information by the Company's insurance systems. The Year 2000 problem is the result of computer programs being written using two digits (rather than four) to define the applicable year. Any of the Company's systems that have time-sensitive software may recognize a date using "00" as the year 1900 rather than 2000, which could result in miscalculations or system failures. The Company has substantially completed the necessary system upgrades and compliance testing. The Company's most significant operational system was replaced through conversion pursuant to an Administrative Services Agreement. Under the Administrative Services Agreement entered into by the Company effective December 17, 1998, Security National made available a new LifePro Administrative system. LifePro is a subsidiary of IBM. Since May of 1998, SNFC has invested in excess of $1.0 million to implement a system conversion for the Company. For further discussion on the Administrative Services Agreement, see the Notes to Condensed Financial Statements. The anticipated future costs of addressing potential Year 2000 problems are not currently expected to have a material adverse impact on the Company's financial position, results of operations or cash flows in future periods. However, if the Company, its customers or vendors are unable to resolve such processing issues in a timely manner, it could result in a material financial risk. Management believes that manual policy and claims administration could be performed in the unlikely event that one or more of its systems did not function. The Company plans to devote the necessary resources to test and remediate all remaining Year 2000 issues in a timely manner. The cost that has been incurred and paid in achieving Year 2000 compliance is approximately $1.0 million as discussed above. As of September 30, 1999, management does not anticipate any other significant costs to be incurred associated with its Year 2000 initiatives. Item 3. Quantitative and Qualitative Disclosure of Market Risk There have been no significant changes since the annual report Form 10-K filed for the year ended December 31, 1998. Part II Other Information: Item 1. Legal Proceedings The Company has been named as a party in an action brought in the Circuit Court, Eighteenth Judicial District, Seminole County, Florida. The action was commenced in December 1998 with an amended complaint filed in April 1999. On three occasions in the past, the Company has been involved in litigation with the plaintiff, William Thomas. In the pending action, Thomas asserts a claim for malicious prosecution and a claim for abuse of process purportedly arising out of a prior action involving him and the Company. In each of the claims, Thomas seeks compensatory damages of $1.0 million plus costs of the action. Thomas has undertaken formal discovery. The Company filed a motion for summary judgment on the claims which is scheduled to be heard on November 23, 1999. Whatever the outcome of the motion, the Company intends to vigorously defend the action. Should the motion be denied, the Company will likely engage in formal discovery. An action was brought against the Company in July 1999 by Dorothy Ruth Campbell in the Circuit Court of Escambia County, Alabama. The action arises out of a denial of coverage for a policy with coverage for $10,000. The claims are for breach of contract, bad faith and fraudulent misrepresentation. In the action, Campbell seeks compensatory and punitive damages plus interest. The case is in the early stage as settlement was not reached. The Company has filed its response to the complaint and intends to defend the matter. The Company is not a party to any other legal proceedings outside the ordinary course the Company's business or to any other legal proceedings which, if adversely determined, would have a material adverse effect on the Company or its business. Item 2. Changes in Securities NONE Item 3. Defaults Upon Senior Securities NONE Item 4. Submission of Matters to a Vote of Security Holders NONE Item 5. Other Information NONE Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 3. A. Articles of Incorporation, as amended, and By-laws, as amended (without exhibits), dated September 1994, incorporated by reference herein from Exhibit 3(1) of the Annual Report of the Company filed on Form 10-K for the fiscal year ended December 31, 1994. 10. A. Executive Compensation Agreement between the Company and George Pihakis (without exhibits) incorporated by reference herein from Exhibit 10(B) of the Annual Report of the Company filed on Form 10-K for the fiscal year ended December 31, 1984. Revolving Financing Agreement between the Company and the Student Loan Marketing Association, dated as of September 19, 1996, incorporated by reference herein from Exhibit 10(A) of the Annual Report of the Company filed on Form 10-K for the fiscal year ended December 31, 1996. C. Reinsurance Agreement between the Company and United Group Insurance Company, dated as of December 31, 1992 incorporated by reference herein from Exhibit 10(B) of the Annual Report of the Company filed on Form 10-K for the fiscal year ended December 31, 1992. D. Agency Agreement between the Company and Insuradyne Corporation incorporated by reference herein from Exhibit 10(C) of the Annual Report of the Company filed on Form 10-K for the fiscal year ended December 31, 1993. E. Administrative Services Agreement between the Company and Security National Financial Corporation effective December 17, 1998, incorporated by reference herein from Exhibit 10(E) of the Annual Report of the Company filed on Form 10-K for the fiscal year ending December 31, 1998. 27. Financial Data Schedule (b) Reports on Form 8-K: NONE 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. REGISTRANT SOUTHERN SECURITY LIFE INSURANCE COMPANY Registrant DATED: November 19, 1999 By: George R. Quist, ----------------- --------------- President and Chief Executive Officer (Principal Executive Officer) DATED: November 19, 1999 By: Scott M. Quist ----------------- --------------- First Vice President, General Counsel and Treasurer (Principal Financial and Accounting Officer) EX-27 2
7 9-MOS DEC-31-1998 SEP-30-1999 24,495,071 24,495,071 24,495,071 679,320 0 0 48,833,518 3,081,465 0 12,913,351 78,550,351 866,943 5,189,749 1,974,589 51,172,887 1,000,000 0 13,699,424 1,907,989 0 78,550,351 5,224,546 2,072,294 0 760,143 3,269,224 0 0 677,192 261,396 0 0 0 0 415,796 .22 .22 0 0 0 0 0 0 0
-----END PRIVACY-ENHANCED MESSAGE-----