ITEM 1.	Business. Incorporated by reference from the inside cover and pages 2 through 11 and 28 (Note 17) of the Registrant's 1997 Annual Report to Shareholders. The number of persons employed by the Registrant was approximately 805 at December 31, 1997.
Property and Casualty Loss Reserves The Company's consolidated financial statements include the estimated liability (reserves) for unpaid losses and loss adjustment expenses (LAE) of its property and casualty insurance subsidiaries. The liability is presented net of amounts recoverable from salvage and subrogation and includes amounts recoverable from reinsurance for which receivalbes are recognized.
The Company establishes reserves for losses that have been reported to the Company and certain legal expenses on the "case basis" method. The Company estimates claims incurred but not reported ("IBNR") and other adjustment expenses using statistical procedures. The Company accrues salvage and subrogation recoveries using the "case basis" method for large claims and statistical procedures for smaller claims.
The Company's objective is to set reserves that are adequate; that is, the amounts originally recorded as reserves should at least equal the amounts ultimately expected to be required to settle losses. The Company's reserves aggregate its best estimates of the total ultimate cost of claims that have been incurred but have not yet been paid. The estimates are based on past claims experience and reflect current claims trends as well as social, legal and economic conditions, including inflation. The reserves are not discounted.
The Company reviews its loss and loss adjustment expense reserve development on a regular basis to determine whether the reserving assumptions and methods are appropriate. Reserves initially determined are compared to the amounts ultimately paid. The Company regularly makes statistical estimates of the projected amounts necessary to settle outstanding claims, compares these estimates to the recorded reserves and adjusts the reserves as necessary. The adjustments are reflected in current operations. 		 There are no material differences between the loss and LAE liability reported in the accompanying consolidated financial statements in accordance with generally accepted accounting principles ("GAAP") and that reported in the annual statements filed with state insurance departments in accordance with statutory accounting practices ("SAP").
The following table provides an analysis of changes in loss and LAE reserves for 1997, 1996 and 1995 (net of reinsurance amounts) for the Company. Based on the information available during and at the end of each of the respective years, operations were charged $5,230,000 in 1997 and $3,771,000 in 1996 as a result of an increase in the estimated amounts needed to settle prior years' claims. Operations were credited $7,347,000 in 1995 for such estimates. Such reserve adjustments, which affected current operations during each of the years, resulted from developed losses from prior years being different than were anticipated when the liability for losses and loss adjustment expense were originally estimated. These development trends have been considered in establishing the current year liabilities.
(Amounts in 000's) --------------------------------------- 1997 1996 1995 ---------------------------------------
Balance at January 1 $ 88,992 $ 61,497 $ 52,078 Less reinsurance recoverables 24,208 13,785 14,597 --------------------------------------- Net balance at January 1 64,784 47,712 37,481 ---------------------------------------
Incurred related to: Current year 163,035 166,554 141,887 Prior years 5,230 3,771 (7,347) --------------------------------------- Total incurred 168,265 170,325 134,540 ---------------------------------------
Paid related to: Current year 113,841 121,782 105,269 Prior years 37,307 31,471 19,040 --------------------------------------- Total paid 151,148 153,253 124,309 ---------------------------------------
Net balance at December 31 81,901 64,784 47,712 Plus reinsurance recoverables 26,433 24,208 13,785 --------------------------------------- Balance at December 31 $108,334 $ 88,992 $ 61,497 ---------------------------------------
Analysis of Loss and LAE Reserve Development The next table presents the development of the estimated liability for the ten years prior to 1997. The top line of the table illustrates the estimated liability for unpaid losses and LAE recorded at the balance sheet date for each of the indicated years. This liability represents the estimated amount of losses and LAE for claims arising in all prior years that were unpaid at the balance sheet date, including losses that had been incurred but not yet reported to the Company.
The upper portion of the table shows the re-estimated amount of the previously recorded liability based on experience as of the end of each succeeding year. The estimate was increased or decreased as more information became known about the frequency and severity of claims for individual years. Conditions and trends that have affected development of the liability in the past may not necessarily occur in the future. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on this table.
The "Net Reserve Re-estimated" section of the table shows the cumulative redundancy (deficiency) developed with respect to the previously recorded liability for all years as of the end of 1997. For example, the Company's 1990 reserve of $16,570,000 has been re-estimated as of year-end 1997 to be $13,589,000, indicating a redundancy of $2,981,000.
The lower section of the table shows the cumulative amount paid with respect to the previously recorded liability as of the end of each succeeding year. For example, as of December 31, 1997, the Company had paid $13,550,000 of the currently estimated $13,589,000 of losses and LAE that have been incurred as of the end of 1990; thus an estimated $39,000 of losses incurred as of the end of 1990 remain unpaid as of the current financial statement date.
The Company's reserve development has been unfavorable beginning in 1995 due to the Company's expansion into certain areas of commercial lines insurance. These developments have been considered in establishing the current year liabilities.
Reinsurance The Company reinsures certain levels of risk with other insurance companies and cedes varying portions of its written premiums to such reinsurers. In addition, the Company pays a percentage of earned premiums to reinsurers in return for coverage against catastrophic losses. To the Company's knowledge, none of its reinsurers are experiencing financial difficulties. Furthermore, the Company monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The composition of its reinsurers has not changed significantly in recent years. The Company has not experienced any uncollectible reinsurance amounts or coverage disputes with its reinsurers in over ten years.
ITEM 2.
ITEM 2. Properties. Incorporated by reference to the inside front cover and pages 2 through 11 of the Registrant's 1997 Annual Report to Shareholders.
ITEM 3.
ITEM 3. Legal Proceedings. Reference is made to Item 3 of the December 31, 1995 Registrant's Form 10-K concerning criminal litigation against M/G Transport Services, Inc., a subsidiary of the Registrant. Upon Motion, the Court dismissed six of the remaining eight counts against M/G, four of the six remaining counts against one former employee and all of the remaining counts against two former employees. The United States has appealed. On October 31, 1997, M/G was fined $250,000 and placed on two years' probation on the two remaining counts. The Company does not expect any additional fines unless the United States is successful in its appeal.
ITEM 4.
ITEM 4. Submission of Matters to a Vote of Security Holders. None during the fourth quarter.
PART II
ITEM 5.
ITEM 5. Market for the Registrant's Common Stock and Related Security Holder Matters. Incorporated by reference to pages 12, 28 (Note 18) and 32 of the Registrant's 1997 Annual Report to Shareholders. The number of holders of the Company's common stock at December 31, 1997 was approximately 1,340. The Company's common stock is registered on the American Stock Exchange (MLA).
ITEM 6.
ITEM 6. Selected Financial Data. Incorporated by reference to page 13 of the Registrant's 1997 Annual Report to Shareholders.
ITEM 7.
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Incorporated by reference to pages 14 through 16 of the Registrant's 1997 Annual Report to Shareholders.
ITEM 8.
ITEM 8. Financial Statements and Supplementary Data. Incorporated by reference to pages 12 and 17 through 30 of the Registrant's 1997 Annual Report to Shareholders.
ITEM 9.
ITEM 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosures. None.
PART III
ITEM 10.
ITEM 10. Directors and Executive Officers of the Registrant. Incorporated by reference to the Registrant's Proxy Statement dated March 6, 1998.
Executive Officers of the Company -
J. P. Hayden, Jr. - Age 68 - Chairman and Chief Executive Officer Michael J. Conaton - Age 64 - President and Chief Operating Officer J. P. Hayden, III - Age 45 - Senior Executive Vice President John W. Hayden - Age 40 - Senior Executive Vice President John R. LaBar - Age 66 - Vice President and Secretary Robert W. Hayden - Age 59 - Vice President John I. Von Lehman - Age 45 - Executive Vice President and Chief Financial Officer W. Todd Gray - Age 30 - Treasurer
J. P. Hayden, Jr. and Robert W. Hayden are brothers. J. P. Hayden, III and John W. Hayden are sons of J. P. Hayden, Jr.
The Board of Directors of The Midland Company voted at their regular meeting on March 5, 1998 to elect the following new executive officers effective with the Company's Annual Shareholders' Meeting on April 9, 1998. Mr. J. P. Hayden, III was elected Chairman and Chief Operating Officer of The Midland Company. Mr. John W. Hayden was elected President and Chief Executive Officer of The Midland Company. Mr. J. P. Hayden, Jr. was elected Chairman of the Executive Committee of the Board. Mr. Michael J. Conaton was elected Vice Chairman of the Board.
During 1997, W. Todd Gray was elected Treasurer. Mr. Gray joined Midland in 1994 and served as Internal Audit Manager and, more recently, Assistant Treasurer. Prior to that he was with a national accounting firm.
During 1996, J. P. Hayden, III and John W. Hayden (formerly Vice Presidents) were elected Senior Executive Vice Presidents. Also in 1996, John I. Von Lehman (formerly Vice President, Treasurer and Chief Financial Officer) was elected Executive Vice President and Chief Financial Officer.
The officers listed above have served in the positions indicated for the past five years (except as noted above).
ITEM 11.
ITEM 11. Executive Compensation. Incorporated by reference to the Registrant's Proxy Statement dated March 6, 1998.
ITEM 12.
ITEM 12. Security Ownership of Certain Beneficial Owners and Management. Incorporated by reference to the Registrant's Proxy Statement dated March 6, 1998.
ITEM 13.
ITEM 13. Certain Relationships and Related Transactions. Incorporated by reference to the Registrant's Proxy Statement dated March 6, 1998.
PART IV
ITEM 14.
ITEM 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
(a) 1. Financial Statements.
Incorporated by reference in Part II of this report: Data pertaining to The Midland Company and Subsidiaries - Report of Independent Public Accountants. Consolidated Balance Sheets, December 31, 1997 and 1996. Consolidated Statements of Income for the Years Ended December 31, 1997, 1996 and 1995. Consolidated Statements of Cash Flows for the Years Ended December 31, 1997, 1996 and 1995. Notes to Consolidated Financial Statements.
(a) 2. Financial Statement Schedules.
Included in Part IV of this report: Data pertaining to The Midland Company and Subsidiaries - Page Independent Auditors' Consent and Report on Schedules. 12 Schedule I - Summary of Investments - Other Than Investments in Related Parties - December 31, 1997 13 Schedule II - Condensed Financial Information of Registrant 14-18 Schedule III - Supplementary Insurance Information for the Years Ended December 31, 1997, 1996 and 1995 19 Schedule IV - Reinsurance for the Years Ended December 31, 1997, 1996 and 1995 20 Schedule V - Valuation and Qualifying Accounts for the Years Ended December 31, 1997, 1996 and 1995 21 Schedule VI - Supplemental Information Concerning Property- Casualty Insurance Operations for the Years Ended December 31, 1997, 1996 and 1995 22
All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted.
(a) 3. Exhibits.
3. Articles of Incorporation and Code of Regulations - Filed as Exhibit 3 to the Registrant's 1980 Annual Report on Form 10-K, and incorporated herein by reference. 10.1 The Midland Company 1992 Employee Incentive Stock Plan and The Midland Company Stock Option Plan for Non-Employee Directors and The Midland Company 1972 Stock Options Plan- Incorporated by reference to Registrant's Statement 33-48511 on Form S-8.
PART IV (Continued)
10.2 A description of the Company's Profit Sharing Plan, Salaried Employees' Non-Qualified Savings Plan and the Supplemental Retirement Plan - Incorporated by reference to the Registrant's Proxy Statement dated March 6, 1998.
11. Computation of Consolidated Net Income Per Share for the years ended December 31, 1997, 1996 and 1995. 23
13. Annual Report to security holders - Incorporated by reference to the Registrant's 1997 Annual Report to Shareholders. 	 21. Subsidiaries of the Registrant. 24
22. Published Report Regarding Matters Submitted to Vote of Security Holders - Incorporated by Reference to the Registrant's Proxy Statement dated March 6, 1998.
23. Independent Auditors' Consent - Included in Consent and Report on Schedules referred to under Item 14(a)2 above.
27. Financial Data Schedule
(b) Reports on Form 8-K - A Form 8-K was filed on October 14, 1997 in connection with the September 29, 1997 sale of the Company's Sportswear operation.
SIGNATURES
	Pursuant to the requirements of Section 13 or 15(d) 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.
			 	 THE MIDLAND COMPANY
Signature Title Date
S/ J. P. Hayden, Jr. Chairman and March 5, 1998 (J. P. Hayden, Jr.) Chief Executive Officer
S/ John I. Von Lehman Executive Vice President March 5, 1998 (John I. Von Lehman) and Chief Financial, Accounting Officer
SIGNATURES
	Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. 			 THE MIDLAND COMPANY
Signature Title Date
S/ George R. Baker Director March 5, 1998 (George R. Baker)
S/ James E. Bushman Director and Member March 5, 1998 (James E. Bushman) of Audit Committee
S/ James H. Carey Director and Member March 5, 1998 (James H. Carey) of Audit Committee
S/ Michael J. Conaton President, Chief Operating March 5, 1998 (Michael J. Conaton) Officer and Director
S/ J. P. Hayden, Jr. Chairman, Chief Executive March 5, 1998 (J. P. Hayden, Jr.) Officer and Director
S/ J. P. Hayden, III Senior Executive Vice March 5, 1998 (J. P. Hayden, III) Presidnet and Director
S/ John W. Hayden Senior Executive Vice March 5, 1998 (John W. Hayden) President and Director
S/ Robert W. Hayden Vice President and Director March 5, 1998 (Robert W. Hayden)
S/ William T. Hayden Director March 5, 1998 (William T. Hayden)
S/ William J. Keating Director March 5, 1998 (William J. Keating)
S/ William McD. Kite Director March 5, 1998 (William McD. Kite)
S/ John R. LaBar Vice President, Secretary March 5, 1998 (John R. LaBar) and Director
S/ John M. O'Mara Director and Member March 5, 1998 (John M. O'Mara) of Audit Committee
S/ John R. Orther Director and Member March 5, 1998 (John R. Orther) of Audit Committee
S/ William F. Plettner Director March 5, 1998 (William F. Plettner)
S/ Glenn E. Schembechler Director and Member March 5, 1998 (Glenn E. Schembechler) of Audit Committee
S/ John I. Von Lehman Executive Vice President, March 5, 1998 (John I. Von Lehman) Chief Financial, Accounting Officer and Director
INDEPENDENT AUDITORS' CONSENT AND REPORT ON SCHEDULES
To the Shareholders of The Midland Company:
We consent to the incorporation by reference in Registration Statements No. 33-64821 on Form S-3 and No. 33-48511 on Form S-8 of The Midland Company of our report dated February 12, 1998, incorporated by reference in this Annual Report on Form 10-K, and our report (appearing below) on the financial statement schedules of The Midland Company for the year ended December 31, 1997.
Our audits of the consolidated financial statements referred to in our aforementioned report also included the financial statement schedules of The Midland Company and its subsidiaries, listed in Item 14(a)2. These financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits. In our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly in all material respects the information set forth therein.
S/Deloitte & Touche, LLP Deloitte & Touche, LLP Cincinnati, Ohio
March 23, 1998
THE MIDLAND COMPANY AND SUBSIDIARIES
Schedule I - Summary of Investments - Other than Investments in Related Parties December 31, 1997
Column A Column B Column C Column D - -------------------------------------------------------------------------------- Amount at which shown in the balance Type of Investment Cost Value sheet - --------------------------------------------------------------------------------
Fixed maturity securities, available-for-sale: Bonds: United States Government and government agencies and authorities $195,066,000 $197,864,000 $197,864,000 States, municipalities and political subdivisions 83,997,000 86,877,000 86,877,000 Mortgage-backed securities 7,902,000 7,948,000 7,948,000 Foreign governments 511,000 510,000 510,000 Public utilities 1,407,000 1,403,000 1,403,000 All other corporate bonds 67,150,000 68,436,000 68,436,000 -------------------------------------------
Total 356,033,000 363,038,000 363,038,000 -------------------------------------------
Equity securities, available-for-sale: Common stocks: Public utilities 1,149,000 1,452,000 1,452,000 Banks, trusts and insurance companies 5,126,000 52,157,000 52,157,000 Industrial, miscellaneous and all other 25,179,000 38,696,000 38,696,000 Nonredeemable preferred stocks 2,257,000 2,269,000 2,269,000 ------------------------------------------- Total 33,711,000 94,574,000 94,574,000 -------------------------------------------
Accrued interest and dividends 5,685,000 5,685,000 5,685,000 -------------------------------------------
Short-term investments 35,532,000 35,532,000 35,532,000 -------------------------------------------
Total investments $430,961,000 $498,829,000 $498,829,000 ===========================================
THE MIDLAND COMPANY (Parent Only)
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet Information December 31, 1997 and 1996
ASSETS 1997 1996 ----------------------------- Cash $ 236,000 $ 267,000 ----------------------------- Marketable Securities (at market value): Fixed Income (cost, $2,427,000 in 1997 and $427,000 in 1996) 2,427,000 427,000 Equity (cost, $354,000 in 1997 and $362,000 in 1996) 2,456,000 1,343,000 ----------------------------- Total 4,883,000 1,770,000 ----------------------------- Receivables - Net 7,010,000 6,801,000 ----------------------------- Intercompany Receivables -- 6,822,000 -----------------------------
Property, Plant and Equipment (at cost) 35,878,000 33,635,000 Less Accumulated Depreciation 3,552,000 2,090,000 ----------------------------- Net 32,326,000 31,545,000 -----------------------------
Investments in Real Estate 14,779,000 18,868,000 -----------------------------
Other Assets 3,720,000 2,434,000 -----------------------------
Investment in Subsidiaries (at equity) 197,206,000 153,965,000 -----------------------------
Total $ 260,160,000 $ 222,472,000 =============================
THE MIDLAND COMPANY (Parent Only)
Schedule II - Condensed Financial Information of Registrant Condensed Balance Sheet Information December 31, 1997 and 1996
LIABILITIES AND SHAREHOLDERS' EQUITY 1997 1996 ----------------------------- Notes Payable within One Year: Banks (including current portion of long-term debt) $ 25,425,000 $ 28,824,000 Commercial Paper 5,791,000 4,700,000 ----------------------------- Total 31,216,000 33,524,000 -----------------------------
Other Payables and Accruals 3,403,000 1,593,000 -----------------------------
Intercompany Payables 501,000 -- -----------------------------
Long-Term Debt 28,014,000 27,667,000 ----------------------------- Shareholders' Equity: Common Stock - No Par (issued and outstanding: 3,111,000 shares at December 31, 1997 and 3,042,000 shares at December 31, 1996 after deducting treasury stock of 532,000 shares and 601,000 shares, respectively) 911,000 911,000 Additional Paid-In Capital 15,359,000 14,846,000 Retained Earnings 153,797,000 138,423,000 Net Unrealized Gain on Marketable Securities 44,123,000 23,587,000 Treasury Stock (at cost) (14,704,000) (16,621,000) Unvested Restricted Stock Awards (2,460,000) (1,458,000) ----------------------------- Total 197,026,000 159,688,000 ----------------------------- Total Liabilities and Shareholders' Equity $ 260,160,000 $ 222,472,000 =============================
THE MIDLAND COMPANY (Parent Only)
Schedule II - Condensed Financial Information of Registrant Condensed Statements of Income Information For the Years Ended December 31, 1997, 1996 and 1995
1997 1996 1995 ----------------------------------------- Revenues: Dividends from Subsidiaries $ 8,900,000 $ 20,500,000 $ 35,117,000 All Other Income, Primarily Charges to Subsidiaries 7,746,000 7,876,000 9,434,000 ----------------------------------------- Total Revenues 16,646,000 28,376,000 44,551,000 ----------------------------------------- Expenses: Interest Expense 4,775,000 5,101,000 5,248,000 Depreciation, Amortization and Impairment 6,195,000 2,548,000 4,884,000 All Other Expenses 833,000 2,033,000 1,727,000 ----------------------------------------- Total Expenses 11,803,000 9,682,000 11,859,000 -----------------------------------------
Income Before Federal Income Tax 4,843,000 18,694,000 32,692,000 Provision (Credit) for Federal Income Tax (1,599,000) (654,000) (902,000) ----------------------------------------- Income Before Change in Undistributed Income of Subsidiaries 6,442,000 19,348,000 33,594,000 Change in Undistributed Income of Subsidiaries: From Continuing Operations 17,925,000 (15,605,000) (17,546,000) From Discontinued Operations (6,817,000) (2,675,000) (6,496,000) ----------------------------------------- Net Income $ 17,550,000 $ 1,068,000 $ 9,552,000 =========================================
THE MIDLAND COMPANY (Parent Only)
Schedule II - Condensed Financial Information of Registrant Condensed Statements of Cash Flows Information For the Years Ended December 31, 1997, 1996 and 1995
1997 1996 1995 ----------------------------------------- Cash Flows from Operating Activities: Net Income $ 17,550,000 $ 1,068,000 $ 9,552,000 Loss from discontinued operations 6,817,000 2,675,000 6,496,000 ----------------------------------------- Income from continuing operations 24,367,000 3,743,000 16,048,000 Adjustments to reconcile net income to net cash provided by operating activities: Decrease (increase) in undistributed income of subsidiaries (17,925,000) 15,605,000 17,546,000 Depreciation, amortization and impairment 6,195,000 2,548,000 4,884,000 Increase in other assets (1,286,000) (1,359,000) (1,044,000) Decrease (increase) in receivables 134,000 689,000 (3,995,000) Increase in other payables & accruals 1,575,000 90,000 871,000 Other - net 36,000 28,000 166,000 ----------------------------------------- Net cash provided by operating activities 13,096,000 21,344,000 34,476,000 -----------------------------------------
Cash Flows from Investing Activities: Acquisition of property, plant & equipment (2,617,000) (1,516,000) (28,060,000) Capital contributions to subsidiaries (12,326,000) -- (2,999,000) Sale of property, plant & equipment 535,000 66,000 599,000 Change in investments (excluding unrealized appreciation/depreciation) (1,991,000) 7,690,000 5,379,000 ----------------------------------------- Net cash provided by (used in) investing activities (16,399,000) 6,240,000 (25,081,000) -----------------------------------------
Cash Flows from Financing Activities: Net change in intercompany accounts 7,323,000 (21,363,000) (35,029,000) Increase (decrease) in long-term debt 948,000 (767,000) 20,551,000 Increase (decrease) in short-term borrowings (2,909,000) (2,920,000) 8,074,000 Dividends paid (2,677,000) (1,962,000) (1,844,000) Net issuance (purchase) of treasury stock 587,000 (545,000) (1,091,000) ----------------------------------------- Net cash provided by (used in) financing activities 3,272,000 (27,557,000) (9,339,000) -----------------------------------------
Net Increase (Decrease) in Cash (31,000) 27,000 56,000
Cash at Beginning of Year 267,000 240,000 184,000 ----------------------------------------- Cash at End of Year $ 236,000 $ 267,000 $ 240,000 =========================================
THE MIDLAND COMPANY (Parent Only)
Schedule II - Condensed Financial Information of Registrant Notes to Condensed Financial Information For the Years Ended December 31, 1997 and 1996
The accompanying condensed financial information should be read in conjunction with the consolidated financial statements and notes included in the Registrant's 1997 Annual Report to shareholders.
Total debt of the Registrant (parent only) consists of the following:
DECEMBER 31, --------------------------- 1997 1996 --------------------------- Short-Term Bank Borrowings $ 24,000,000 $ 28,000,000 Commercial Paper 5,791,000 4,700,000 Mortgage Notes: 7.20% - Due January 1, 2001 1,773,000 -- 6.92% - Due December 20, 2005 19,768,000 20,304,000 5.82% - Due December 1, 2003 7,898,000 8,187,000 ---------------------------
Total Debt $ 59,230,000 $ 61,191,000 ===========================
See Note 9 to the consolidated financial statements included in the 1997 Annual Report to Shareholders for further information on the Company's outstanding debt at December 31, 1997.
The amount of debt that becomes due during each of the next five years is as follows: 1998 - $1,425,000; 1999 - $1,524,000; 2000 - $1,639,000; 2001 - $1,070,000; 2002 - $1,142,000.
THE MIDLAND COMPANY AND SUBSIDIARIES
Schedule V - Valuation and Qualifying Accounts for the Years Ended December 31, 1997, 1996 and 1995
ADDITIONS CHARGED BALANCE AT (CREDITED) TO BALANCE BEGINNING COSTS AND DEDUCTIONS AT END DESCRIPTION OF PERIOD EXPENSES (ADDITIONS) OF PERIOD - -------------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, 1997:
Allowance For Losses $ 799,000 $ 184,000 $ 230,000 (1) $ 753,000
YEAR ENDED DECEMBER 31, 1996:
Allowance For Losses $ 863,000 $ (50,000) $ 14,000 (1) $ 799,000
YEAR ENDED DECEMBER 31, 1995:
Allowance For Losses $ 1,014,000 $ 443,000 $ 594,000 (1) $ 863,000
NOTES: (1) Accounts written off are net of recoveries. (2) 1996 and 1995 amounts have been changed from amounts previously reported. Amounts related to the disposal in 1997 of one of the Company's business segments have been excluded.