| Ticker: ASX | 500 North Meridian Street | |
| Exchange: New York Stock Exchange | Indianapolis, Indiana 46204 | |
| Industry: Financial | (317) 262-6262 |
| Type of Shares: | Common Shares | Filing Date: | 3/15/96 | |
| U.S. Shares: | 8,000,000 | Offer Date: | 5/22/96 | |
| Non-U.S. Shares: | 2,000,000 | Filing Range: | $23.00 - $25.00 | |
| Primary Shares: | 10,000,000 | Offer Price: | $23.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.30 | |
| Offering Amount: | $240,000,000 | Selling: | $0.77 | |
| Expenses: | $1,230,000 | Reallowance: | $0.10 | |
| Shares Out After: | 60,000,000 | |||
| Spin out parent firm: | Lincoln National Corporation | |||
| Manager | Tier | Phone |
| Merrill Lynch & Co. | Lead Manager | (212) 449-4600 |
| Goldman, Sachs & Co. | Co-manager | (212) 902-1172 |
| Auditor: Ernst & Young | |||||
| Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 3/31/96 | 3/31/95 | 3/31/96 | ||
| Revenue: | $2,025.60 | $513.40 | $532.40 | Assets: | $5,605.30 |
| Net Income: | $209.10 | $54.80 | $83.80 | Liabilities: | $3,997.60 |
| EPS: | $2.53 | $0.67 | Equity: | $1,607.70 | |
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year | |||||
| Business Description |
| The company, through its subsidiaries, underwrites property and casualty insurance, concentrating on providing commercial insurance to small to medium sized businesses and preferred personal lines coverages to individuals. Management believes that the company is the second largest writer of property and casualty insurance to businesses with fewer than 50 employees which, according to the latest statistics of the United States Bureau of the Census, comprise the fastest growing business segment in the United States economy. Geographically, the company focuses on those areas such as the Midwest and the Pacific Northwest which have relatively modest exposure to catastrophe losses and which management believes insurers generally have been permitted to manage risk selection and pricing without undue regulatory interference. To efficiently service its distribution network of over 4,800 independent agencies in this transaction-intensive target market, the company makes extensive use of technology. As a complement to its property and casualty operations, the company also markets life insurance through the same agency network that distributes its property and casualty products. |
| Use of Proceeds |
| Proceeds from the offering will be used to contribute to American States Insurance Company, a subsidiary of the company, to enable it to invest in taxable securities for its investment portfolio to replace the Dividend Assets distributed to Lincoln, which consist primarily of tax-exempt municipal securities. Proceeds also used for general corporate purposes. |
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