BALANCE SHEET
Dollars in Thousands Year Ended December 31
Assets	2006	2005
Bonds	$41,820	$37,839
Preferred Stocks	127	0
Policy Loans	$10,305	$8,789
Cash & short-term securities	980	1,513
Premiums deferred and uncollected	522	701
Other assets	3,095	2,243
TOTAL ADMITTED ASSETS	$56,850	$51,086

Dollars in Thousands Year Ended December 31
Liabilities	2006	2005
Policy reserves	$45,641	$40,885
Policy and contract claims	525	581
Other liabilities	1,898	1,719
TOTAL LIABILITIES	48,064	43,185
Stockholder's Equity	8,786	7,901
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY	$56,850	$51,086

STATEMENT OF OPERATIONS & SURPLUS
Dollars in Thousands Year Ended December 31
Income	2006	2005
Premiums	$10,846	$10,777
Net investment income	2,881	2,536
Other income	2,665	2,513
TOTAL INCOME	$16,392	$15,826
POLICYHOLDER BENEFITS & EXPENSES
Life insurance benefits	1,916	1,803
Accident & health benefits	554	585
Other policy benefits	1,658	1,368
Increase in reserves	4,730	4,829
Commissions	3,817	3,629
General expenses	1,695	1,625
Taxes other than federal income taxes	459	530
TOTAL BENEFITS & EXPENSES	14,829	14,369
GAIN FROM OPERATIONS	1,564	1,458
Federal Income Tax Expense (credit)	588	665
NET GAIN FROM OPERATIONS	976	793

ANALYSIS OF STOCKHOLDERS EQUITY
Dollars in Thousands Year Ended December 31
Stockholder's Equity	2006	2005
NET GAIN FROM OPERATIONS	$976	$793
Net realized Capital Gains trans. to IMR	(33)	0
Increase in Asset Valuation Reserve	(2)	(30)
Change in Non-admitted Assets	(139)	(116)
Deferred Federal Income Tax	82	157
Prior Year Service Fees*	0	(139)
Stockholder's Equity beginning of year	7,901	7,236
STOCKHOLDER'S EQUITY AT END OF YEAR	$8,785	$7,901