Iowa		42-0644327
(State of Incorporation)		(IRS Employer Identification No.)

118 Second Avenue, S.E.
Cedar Rapids, Iowa		52407
(Address of principal executive offices)		(Zip Code)

Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets as of September 30, 2002 (unaudited) and December 31, 2001		2
Unaudited Consolidated Statements of Income for the three-month periods ended September 30, 2002 and 2001		3
Unaudited Consolidated Statements of Income for the nine-month periods ended September 30, 2002 and 2001		4
Unaudited Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2002 and 2001		5
Notes to Unaudited Consolidated Financial Statements		6
Report of Independent Public Accountants		11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		12
Item 3. Quantitative and Qualitative Disclosures about Market Risk		18
Part II. Other Information
Item 2. Change in Securities		19
Item 4. Submission of Matters to a Vote of Security Holders		19
Item 6. Exhibits and Reports on Form 8-K		19

		September 30, 2002 Unaudited			December 31, 2001 Audited
ASSETS
Investments
Fixed maturities
Held-to-maturity, at amortized cost (market value $214,430 in 2002 and $252,481 in 2001)		$	199,649		$	241,616
Available-for-sale, at market (amortized cost $1,337,408 in 2002 and $1,142,669 in 2001)			1,384,915			1,142,614
Trading, at market (amortized cost $2,688)			2,265			—
Equity securities, at market (cost $38,330 in 2002 and $35,151 in 2001)			97,094			110,357
Policy loans			8,151			8,201
Other long-term investments, at market (cost $10,096 in 2002 and $10,002 in 2001)			10,370			10,166
Short-term investments			24,999			48,008
		$	1,727,443		$	1,560,962
Cash and Cash Equivalents		$	85,628		$	150
Accrued Investment Income			26,302			25,723
Accounts Receivable			112,808			88,380
Deferred Policy Acquisition Costs			98,241			102,703
Property and Equipment			14,046			15,233
Reinsurance Receivables			39,195			45,656
Prepaid Reinsurance Premiums			6,534			4,050
Intangibles			2,065			3,177
Income Taxes Receivable			635			368
Other Assets			11,402			5,437
TOTAL ASSETS		$	2,124,299		$	1,851,839
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future policy benefits and losses, claims and settlement expenses
Property and casualty insurance		$	377,980		$	366,519
Life insurance			1,095,058			956,797
Unearned premiums			224,199			187,787
Accrued expenses and other liabilities			39,543			35,139
Employee benefit obligations			13,655			13,950
Deferred income taxes			14,484			12,659
TOTAL LIABILITIES		$	1,764,919		$	1,572,851
Redeemable Preferred Stock
6.375% cumulative convertible preferred stock – Series A, no par value		$	65,029		$	—
Stockholders’ Equity
Common stock		$	33,458		$	33,453
Additional paid-in capital			6,943			6,912
Retained earnings			199,625			189,214
Accumulated other comprehensive income, net of tax			54,325			49,409
TOTAL STOCKHOLDERS’ EQUITY		$	294,351		$	278,988
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	2,124,299		$	1,851,839

		Three months ended September 30,
		2002				2001
Revenues
Net premiums earned		$	107,333			$	97,373
Investment income, net			27,085				25,321
Realized investment losses and other income			(2,942	)			(1,637	)
Commission and policy fee income			422				549
			131,898				121,606
Benefits, Losses and Expenses
Losses and settlement expenses			80,734				76,296
Increase in liability for future policy benefits			1,097				1,298
Amortization of deferred policy acquisition costs			21,907				17,327
Other underwriting expenses			11,832				13,509
Interest on policyholders’ accounts			13,330				12,168
			128,900				120,598
Income before income taxes			2,998				1,008
Federal income tax (benefit)			178				(495	)
Net income		$	2,820			$	1,503
Less preferred stock dividends and accretions			1,239				—
Earnings available to common shareholders		$	1,581			$	1,503
Weighted average common shares outstanding			10,037,344				10,035,819
Basic and diluted earnings per common share		$	0.16			$	0.15
Cash dividends declared per common share		$	0.18			$	0.18

		Nine months ended September 30,
		2002				2001
Revenues
Net premiums earned		$	306,787			$	275,112
Investment income, net			77,865				73,596
Realized investment losses and other income			(11,030	)			(139	)
Commission and policy fee income			1,331				1,630
			374,953				350,199
Benefits, Losses and Expenses
Losses and settlement expenses			213,207				204,958
Increase in liability for future policy benefits			4,472				4,101
Amortization of deferred policy acquisition costs			59,791				48,427
Other underwriting expenses			36,042				43,259
Interest on policyholders’ accounts			38,463				35,496
			351,975				336,241
Income before income taxes			22,978				13,958
Federal income tax			5,248				2,023
Net income		$	17,730			$	11,935
Less preferred stock dividends and accretions			1,899				—
Earnings available to common shareholders		$	15,831			$	11,935
Weighted average common shares outstanding			10,036,953				10,035,819
Basic and diluted earnings per common share		$	1.58			$	1.19
Cash dividends declared per common share		$	0.54			$	0.54

		Nine months ended September 30,
		2002				2001
Cash Flows From Operating Activities
Net income		$	17,730			$	11,935
Adjustments to reconcile net income to net cash provided by operating activities
Net bond discount accretion		$	(678	)		$	(667	)
Depreciation and amortization			2,709				3,602
Realized investment losses			11,116				139
Changes in:
Accrued investment income			(579	)			(1,264	)
Accounts receivable			(24,428	)			(21,750	)
Deferred policy acquisition costs			4,462				7,025
Reinsurance receivables			6,461				(1,542	)
Prepaid reinsurance premiums			(2,484	)			(716	)
Income taxes receivable			(267	)			(1,903	)
Other assets			(5,965	)			310
Future policy benefits and losses, claims and settlement expenses