Statements of Income and Comprehensive Income

YEAR ENDED DECEMBER 31,
19991998
REVENUES
Premiums earned$3,690,727$3,333,364
Net investment income 2,086,9241,977,816
Net realized (losses) gains on sales of investments(99,065)975,941
Ceding commission income181,301198,989
TOTAL REVENUES5,859,8876,486,110

EXPENSES
Losses and loss adjustment expenses3,063,164282,109
Management fees 278,360208,681
Amortization of policy acquisition costs195,862176,948
Professional fees141,869121,305
Other expenses1,006,217669,764
TOTAL EXPENSES4,685,4721,458,807

INCOME BEFORE DISTRIBUTION OF POLICYHOLDER DIVIDEND1,174,4155,027,303
Policyholder dividend--5,027,303
NET INCOME1,174,415--

Other Comprehensive Income
Net unrealized holding (losses) gains arising during the period(415,400)2,569,254
Less: reclassification adjustment for losses and (gains) included in net income 99,065(975,941)
Other Comprehensive (loss) Income(316,335)1,593,313
COMPREHENSIVE INCOME$ 858,080$1,593,313

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