<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C.  20549

                                   FORM 10-K

(Mark One)
[XX]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
                 For the fiscal year ended December 31, 1997
                                       OR
[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
                 For the transition period from              to
                                                ------------    ------------
Commission File Number  1-5846
                        ------

                            THE LIBERTY CORPORATION
--------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

        South Carolina                                    57-0507055
-------------------------------                     -----------------------
(State or other jurisdiction of                        (I.R.S. Employer
incorporation or organization)                        Identification No.)

    Post Office Box 789, Wade Hampton Boulevard, Greenville, S. C. 29602
--------------------------------------------------------------------------------
        (Address of principal executive offices)              (Zip Code)

  Registrant's telephone number, including area code  (864) 609-8256
                                                     --------------------

Securities registered pursuant to Section 12(b) of the Act:

<TABLE>
<S>                                                                                  <C>
                                                                                       Name of Each Exchange
         Title of Each Class                                                           on Which Registered
------------------------------------                                                 -----------------------
Common Stock, no par value per share                                                 New York Stock Exchange
Rights to Purchase Series A Participating Cumulative Preferred Stock                 New York Stock Exchange
</TABLE>

         Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to the
filing requirements for the past 90 days.
   Yes   X      No
              ------

         Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.    X

         The aggregate market value of the voting stock held by non-affiliates
of the Registrant as of March 16, 1998:

                Common Stock, No Par Value                         $ 966,457,052
                --------------------------                         -------------

         The number of shares outstanding of each of Registrant's classes of
common stock as of March 16, 1998:

                Common Stock, No Par Value                            18,608,078
                --------------------------                            ----------

DOCUMENTS INCORPORATED BY REFERENCE

         Portions of The Liberty Corporation Annual Report to Shareholders for
the year ended December 31, 1997 are incorporated into Part II, Items 5, 6, 7,
and 8 by reference.

         Portions of The Liberty Corporation Proxy Statement for the Annual
Meeting of Shareholders on May 5, 1998 are incorporated into Part III, Items
10, 11, 12, and 13 by reference.

        This report is comprised of pages 1 through 65.  The exhibit index is on
page 27.
<PAGE>   2

                                     PART I

ITEM 1.      BUSINESS

GENERAL

    The Registrant, The Liberty Corporation ("Liberty" or "the Company") is a
holding company with subsidiaries operating in the life insurance, policy
administration, and television broadcasting industries.

    The Company's primary insurance subsidiaries are Liberty Life Insurance
Company ("Liberty Life") and Pierce National Life Insurance Company ("Pierce
National").  In November, 1997, the Company announced that it had agreed to
sell Pierce National to Fortis, Inc..  Under the agreement Fortis will acquire
Pierce for $180 million cash, subject to certain adjustments.  The sale is
expected to close in April 1998.  In addition to Liberty Life and Pierce
National, Liberty Insurance Services Corporation ("Liberty Insurance Services")
is one of the nation's largest life insurance third-party administrators,
providing administrative services for over 4.5 million policies.  Other
subsidiaries of the Company provide investment advisory services to the
Company's insurance subsidiaries and unaffiliated insurance companies, and
property development and management services to the Company.

    The Company's television broadcasting subsidiary, Cosmos Broadcasting
Corporation ("Cosmos"), currently owns and operates eight network affiliated
television stations.

    Additional information concerning Liberty's subsidiaries and divisions is
included in "Management's Discussion and Analysis" in the Company's 1997 Annual
Report to Shareholders, which is incorporated herein by reference.

STRATEGY; RECENT DEVELOPMENTS

    On March 11, 1998, the Company completed a tender offer whereby it
repurchased 2.4 million shares of its outstanding common stock for $52.00 per
share.  The tender offer was funded through the Company's credit facility.

    As previously mentioned, during November 1997, the Company announced an
agreement to sell Pierce National for $180 million.  The Company completed an
in-depth analysis of the Pierce National business and determined that it would
not be able to meet the Company's profit and sales objectives, and as a result
the decision was made to divest this business.  The proceeds from the sale will
be used to repay debt under the Company's credit facility.  The current
estimate of the loss on the sale is between $14 million and $18 million.  On
December 31, 1997, Fortis purchased 2,660 newly issued shares of Pierce common
stock for $37.2 million.  Subsequent to this stock purchase, Fortis maintained
a twenty-one percent ownership interest in the common stock of Pierce as of
December 31, 1997.

    In May, 1997 Liberty completed the sale of its business rental properties
and the majority of its business park land developments to a partnership in
which the general partner is a publicly-traded real estate investment trust
("REIT").  Liberty received cash, a note receivable, and partnership units
(which are convertible into shares of the REIT) in exchange for the properties.

    The Company's principal strategy is to grow internally and through
selective acquisitions, while maintaining its emphasis on cost controls.  The
Company's operations are generally focused in niche markets where Liberty
believes it has the products and expertise to serve the market better than its
competitors.

    Prior to 1995, the Company had an aggressive acquisition policy focused on
both its Agency and pre-need businesses.  While the Company has not completed
any insurance acquisitions since 1994, Liberty will continue to consider
acquisitions that complement or fit with the Company's on-going marketing
divisions and product lines.

    Management's philosophy regarding broadcasting acquisitions is to make
selective acquisitions in local markets where it can be among the dominant
television stations. On February 28, 1995, the Company completed the
acquisition of WLOX-TV in Biloxi, Mississippi, bringing to eight the total
number of television stations in Cosmos.  The purchase price of $40.1 million
was funded with a combination of redeemable preferred stock, cash and a note
payable.  WLOX is an ABC affiliate that carries strong local news and is the
top station in its market.


                                      2
<PAGE>   3


INSURANCE OPERATIONS

    LIBERTY LIFE.  Liberty Life is a stock life insurance company engaged in
the business of writing a broad range of individual life insurance policies and
accident and health insurance policies.  While Liberty Life is licensed in
forty- nine states, and the District of Columbia, its focus has been the
Southeast.  For 1997, the largest percentages of its premium income were from
South Carolina (25%), North Carolina (18%), Louisiana (9%) and Texas and
California (each at 5%).  The Company believes that Liberty Life is the largest
provider of home service business in the Carolinas.

    Life insurance and annuity premiums contributed 72% of Liberty Life's total
premiums in 1997, 77% in 1996, and 84% in 1995.  Accident and health insurance
premiums contributed the remainder.

    Liberty Life markets its insurance products through its Agency and
Specialized Marketing divisions.  At December 31, 1997, Liberty Life had
approximately 470 employees in its home office in Greenville.

    AGENCY DIVISION.  The Agency Division is Liberty Life's largest division,
contributing 55% of Liberty Life's premiums in 1997.  Agents supporting this
division sell primarily individual life, including universal life and
interest-sensitive whole life products, as well as health insurance.  As of
December 1997, the Company had approximately 1,370 agents, managers and support
staff in this division operating out of 50 district offices.  These agents
periodically visit the insureds' homes and businesses to sell policies and
collect premiums.  In November 1997, Liberty completed the rollout of a
hand-held, pen-based computer to its entire Agency sales force.  This
technology allows the agent to go through an interactive sales presentation
with the prospective customer, provides access to policy rates, and interacts
with the home office policy database to update customer records. Ultimately,
this technology will also be used for application entry, among other things.
This state-of-art technology is expected to greatly increase the efficiencies
of Liberty's agent's in producing new policies. Liberty is de-emphasizing the
home collection component of the agent's job by encouraging premium payment
through electronic funds transfer or mail-in payment. Although the Company has
broadened this division's area of concentration beyond the Carolinas,
principally through strategic acquisitions, the Company has maintained a
regional focus for its Agency business in the Southeast.

    SPECIALIZED MARKETING DIVISION.  The Specialized Marketing Division
contributed 42% of Liberty Life's premiums in 1997.  This division primarily
sells decreasing term life, accident and disability insurance designed to
extinguish the unpaid portion of a residential mortgage upon the death or
disability of the insured.  A staff of full-time representatives and
independent brokers offer these products through more than 1,000 financial
institutions located throughout the United States.  The Company supports the
marketing of these products through direct mail and phone solicitations.  In
addition to the products mentioned above, this division focuses on the
development of new insurance or non-insurance products to market through direct
response or point of sale marketing channels.  Liberty will continue to seek
new opportunities and new products to market through this division.

    PIERCE NATIONAL.  Pierce National (doing business as FamilySide) provides
life insurance products which pre-fund funeral services, referred to as
pre-need policies.  Pierce National, a stock life insurance company acquired in
July 1992, is domiciled in California, but its principal executive and
administrative offices are in Greenville, South Carolina.  Pre-need policies
consist primarily of ordinary life insurance policies for which the premiums
are paid in a single payment at the outset or primarily over a three, five or
ten-year period.  Pierce National is currently licensed in forty-three states,
the District of Columbia, and all of the Canadian provinces and territories.
The largest percentages of premium income for 1997 came from Canada (17%),
Mississippi (10%) and California (10%). As previously mentioned, the Company
reached an agreement to sell Pierce National for $180 million.  This sale is
expected to close in April 1998.





                                       3
<PAGE>   4


         PREMIUM BREAKDOWN.  The following table sets forth the insurance
premiums and policy charges for Liberty Life's marketing and distribution
divisions and Pierce National for the years ended December 31.

<TABLE>
<CAPTION>
(In 000's)                                                    1997             1996             1995
------------------------------------------------------------------------------------------------------
 <S>                                                        <C>              <C>              <C>
 Liberty Life
    Home Service                                            $135,506         $137,930         $138,714
    Mortgage Protection                                      102,995           70,316           53,105
    General Agency Marketing                                   4,349            4,881            5,966
    Other                                                      2,428            3,591            3,235
------------------------------------------------------------------------------------------------------
                                                             245,278          216,718          201,020

 Pierce National                                             105,414          104,653          130,350
------------------------------------------------------------------------------------------------------
 Total                                                      $350,692         $321,371         $331,370
------------------------------------------------------------------------------------------------------
</TABLE>


    UNDERWRITING PRACTICES.  Liberty Life's underwriting practices for ordinary
life insurance require medical examinations for applicants over age 60 or for
policies in excess of certain prescribed face amounts.  In accordance with the
general practice in the life insurance industry, Liberty Life writes life
insurance on substandard risks at increased premium rates.  Generally,
traditional life insurance for non-universal life products is written for
amounts under $5,000 and typically no medical examination is required.
Mortgage protection life insurance written through the Specialized Marketing
division is usually written without medical examination.  Substantially all
pre-need policies are written for amounts under $5,000, and no medical
examination is required unless the applicant requests a preferred rate.

    REINSURANCE.  The Company's insurance subsidiaries use reinsurance in two
distinct ways:  first, as a risk management tool in the normal course of
business and second, in isolated strategic transactions to effectively buy or
sell blocks of in force business.  The Company has ceded $3.7 billion (18%) of
its $20.8 billion insurance in force to other companies; however, the Company's
insurance subsidiaries remain liable with respect to reinsurance ceded should
any reinsurer be unable to meet the obligations it has or will assume.

    For the years ended December 31, 1997, 1996, and 1995 Liberty had ceded
life insurance premiums of $25.6 million, $27.3 million, and $27.8 million,
respectively.  Accident and health premiums ceded made up the remainder of
ceded premiums which were $8.6 million, $9.2 million, and $6.9 million for the
years ended December 31, 1997, 1996 and 1995, respectively.

    RISK MANAGEMENT REINSURANCE TRANSACTIONS.  Liberty Life reinsures with
other insurance companies portions of the life insurance it writes in order to
limit its exposure on large or substandard risks.  The maximum amount of life
insurance that Liberty Life will retain on any life is $300,000, plus an
additional $50,000 in the event of accidental death. This maximum is reduced
for higher ages and for special classes of risks.  The maximum amount of life
insurance Pierce National will retain on any life is $50,000.  Insurance in
excess of the retention limit is either automatically ceded under reinsurance
agreements or is reinsured on an individually agreed basis with other insurance
companies.  Liberty Life has ceded a significant portion of its risks on
accidental death and disability coverage to other insurance companies.  Liberty
Life and Pierce National also have coverage for catastrophic accidents.  At
December 31, 1997, Liberty Life and Pierce National had ceded, in the normal
course of business, portions of their risks to a number of other insurance
companies.

    STRATEGIC REINSURANCE TRANSACTIONS.  In 1991, 80% or $3.2 billion face
amount of Liberty Life's General Agency Marketing Division net insurance in
force was coinsured with Life Reassurance Corporation ("Life Re").  The
original agreement with Life Re provided for the coinsurance of 50% of this
division's insurance in force issued after 1991.  Effective July 1, 1995, the
amount coinsured on policies written after December 31, 1991, was increased to
80%.  The total face value of amounts ceded to Life Re at December 31, 1997 was
$2.4 billion.  Under terms of the agreement, assets supporting the business
ceded are required to be held in escrow.

    In order to facilitate the 1991 acquisition through reinsurance of a block
of business from Kentucky Central Life Insurance Company, Liberty Life
coinsured 50% of its Agency traditional life insurance business with Lincoln
National Life Reinsurance Company.  The Lincoln National reinsurance has been
accounted for under generally accepted accounting principles as financial
reinsurance.  The reinsurance contract contains an escrow agreement that
requires





                                       4
<PAGE>   5


assets equal to the reserves reinsured, as determined under statutory
accounting principles, be held in escrow for the benefit of this block of
business.

    The Company uses assumption reinsurance to effectively acquire blocks of in
force business by acting as the "reinsurer" for other insurance companies.  For
instance, the Company acquired the Kentucky Central and Estate Assurance blocks
in this manner.

    OPERATIONS.  The administrative functions of underwriting and issuing new
policies, and the ongoing servicing and claims settlement of in force policies,
are provided by Liberty Insurance Services at the home office in Greenville,
South Carolina.  The Company's strategy is to consolidate the administrative
functions of its operations in order to have a unified service platform across
the business units and improve operating leverage through productivity
improvements.

    Liberty Insurance Services provides administrative support services for
Liberty's approximately 2.5 million policies representing $20.8 billion of life
insurance in force, of which $3.7 billion of insurance in force has been ceded
to other companies. Approximately 155,000 policies representing $3.5 billion of
life insurance in force were issued during 1997. The Company intends to
continue its focus on reducing the unit costs of administrative services by
increasing the volume of business through acquisitions of blocks of business
similar in nature to its existing business, by internal growth in those
businesses, and by investing in technology to further improve efficiency in its
operations.

    LIBERTY INSURANCE SERVICES.  Liberty Insurance Services provides a wide
range of home office support services to the Company's insurance subsidiaries,
as well as for unaffiliated life and health insurance companies on a fee basis.
These services include underwriting, issuance of policies, accounting, customer
service and claims processing and adjudication and can be tailored to support
the special features of insurance products offered by other companies that
desire these services. In marketing to unaffiliated life and health insurance
companies the Company's strategy is to target (i) insurance companies that have
closed blocks of business that are expensive to administer, (ii) insurance
companies that have start-up or new product lines requiring new support levels,
(iii) small to midsize insurance companies that cannot justify large
investments in home office technology, and (iv) insurance companies acquired by
financial investors lacking experience in providing home office support.
Liberty Insurance Services believes that its economies of scale will permit its
customers to reduce their home office support costs and focus resources on
marketing their insurance products. In connection with the sale of Pierce
National Life, Liberty Insurance Services negotiated a five-year, $51 million
servicing contract whereby it will administer all of the Fortis preneed
business, including the Pierce business being sold.  With the addition of this
contract, Liberty Insurance Services has approximately 4.5 million policies
under management.

    INSURANCE COMPETITION AND RATINGS  The Company's insurance subsidiaries
compete with numerous United States and Canadian insurance companies, some of
which have greater financial resources, broader product lines and larger
staffs.  In addition, banks and savings and loan associations in some
jurisdictions compete with the Company's insurance subsidiaries for sales of
life insurance products, and the insurance subsidiaries compete with banks,
investment advisors, mutual funds and other financial entities to attract
investment funds generally.

    Competition in the Agency business is largely regional or local, highly
dependent on the quality of the local management, and is less price competitive
than other insurance markets.  The Agency business involves frequent contacts
by agents with their customers.  Liberty emphasizes to its agents the
importance of taking advantage of these contacts to establish personal
relationships which the Company believes add stability to its Agency business.

    The Company currently believes that it ranks second nationally in mortgage
protection insurance (provided through its Specialized Marketing division) with
an estimated 21% market share.  Approximately 85% of the mortgage protection
market share is believed to be held by four companies and approximately 32% of
the market is believed to be held by the market leader.

    Various independent companies issue ratings assessing the ability of
insurance companies to meet their policyholder and other contractual
obligations, as well as assessing the overall financial performance and
strength of companies.  The most widely used ratings are those prepared and
published by A.M. Best Company, Inc.  Ratings by A.M. Best range from "A++"
(Superior) to "F" (In Liquidation).  In the Best Week published December 23,
1996, Liberty Life was rated "A" (Excellent).  In the Best Week published
November 24, 1997, Pierce National's rating of "B++" (Very Good) was placed
under review as a result of the announcement of the sale of Pierce to Fortis.
Liberty Life also has a current





                                       5
<PAGE>   6


claims-paying rating of "AA-" (Very High) by Duff & Phelps Credit Rating Co.
The rating agencies base their ratings on information provided by the insurer
and their own analysis, studies and assumptions.  The ratings apply only to the
specific company rated and do not extend to The Liberty Corporation as a whole,
nor are the ratings a recommendation to buy, sell or hold securities.  The
agencies can change or withdraw their published ratings at any time the agency
deems circumstances warrant a change.  Should Liberty Life's or Pierce
National's rating be downgraded, sales of their products and persistency of the
existing in-force business could be adversely affected.  Insurance company
ratings are generally considered to be more important in the annuity and
general agency markets, neither of which are major markets for Liberty Life or
Pierce National.

    INSURANCE REGULATION.  Like other insurance companies, the Company's
insurance subsidiaries are subject to regulation and supervision by the state
or other insurance department of each jurisdiction in which they are licensed
to do business.  These supervisory agencies have broad administrative powers
relating to the granting and revocation of licenses to transact business, the
licensing of agents, the approval of policy forms, reserve requirements and the
form and content of required statutory basis financial statements.  As to its
investments, each of the Company's insurance subsidiaries must meet the
standards and tests established by the National Association of Insurance
Commissioners (the "NAIC") and, in particular, the investment laws and
regulations of the states in which each subsidiary is domiciled.  All states
and jurisdictions (including the Canadian provinces where Pierce National is
also licensed) have their own statutes and regulations, which vary in certain
respects.  However, the NAIC Model Act and regulations have tended to make the
various states' regulation more uniform.  The insurance companies are also
subject to laws in most states that require solvent life insurance companies to
pay guaranty fund assessments to protect the interests of policyholders of
insolvent life insurance companies.

    The  NAIC and state regulatory authorities require the Asset Valuation
Reserve or "AVR" and the Interest Maintenance Reserve or "IMR" to be
established as a liability on a life insurer's statutory basis financial
statements, but do not affect financial statements of the Company prepared in
accordance with generally accepted accounting principles.  AVR establishes a
statutory reserve for mortgage loans, equity real estate and joint ventures, as
well as for fixed maturities and common and preferred stock.  AVR generally
captures all realized and unrealized gains and losses on such assets, other
than those resulting from changes in interest rates. IMR captures the net gains
or losses that are realized upon the sale of fixed income securities (bonds,
preferred stocks, mortgage-backed securities and mortgage loans) and that
result from changes in the overall level of interest rates, and amortizes these
net realized gains or losses into income over the remaining life of each
investment sold, thus limiting the ability of an insurer to enhance statutory
surplus by taking gains on fixed income securities.  The IMR and AVR
requirements have not had a material impact on the Company's insurance
subsidiaries' surplus nor the insurance subsidiaries' ability to pay dividends
to the parent company.

    In recent years the NAIC has approved and recommended to the states for
adoption and implementation several regulatory initiatives designed to decrease
the risk of insolvency of insurance companies in general.  These initiatives
include the implementation of a risk-based capital ("RBC") formula for
determining adequate levels of capital and surplus and further restrictions on
an insurance company's payment of  dividends to its shareholders.  To date,
South Carolina has not adopted the NAIC risk-based capital model act; however,
it does require prior notice to the South Carolina Commissioner of Insurance of
dividend distributions to shareholders, and permits the Commissioner to
disapprove or limit the dividend within 30 days of notice if the dividend or
distribution is deemed an unreasonable strain on surplus.  The NAIC risk-based
capital model act or similar initiatives may be adopted by South Carolina or
the various states in which Liberty Life and the Company's other insurance
subsidiaries are licensed, but the ultimate content and timing of any statutes
and regulations adopted by the states cannot be determined at this time.

    Under the NAIC's risk-based capital requirements, insurance companies must
calculate and report information under a risk-based capital formula in their
annual statutory financial statement.  This information is intended to permit
insurance regulators to identify and require remedial action for inadequately
capitalized insurance companies, but is not designed to rank adequately
capitalized companies.  The NAIC requirements provide for four levels of
potential involvement by state regulators for inadequately capitalized
insurance companies, ranging from a requirement for the insurance company to
submit a plan to improve its capital, to regulatory control of the insurance
company.  The RBC ratios for the Company's insurance subsidiaries significantly
exceed the minimum capital requirements at December 31, 1997.

    Another NAIC Model Act limits dividends that may be paid in any calendar
year without regulatory approval to the lesser of (i) 10% of the insurer's
statutory surplus at the prior year-end, or (ii) the statutory net gain from
operations of the





                                       6
<PAGE>   7




insurer (excluding realized capital gains and losses) for the prior calendar
year.  The current South Carolina statutes applicable to Liberty Life do not
conform to the NAIC Model Act (South Carolina limits dividends to the greater
of 10% of statutory surplus or gain from operations).  Under current South
Carolina law, without prior approval from the South Carolina Commissioner of
Insurance, dividend payments from Liberty Life to the Company are limited to
the greater of the prior year's statutory gain from operations or 10% of the
prior year's statutory surplus.  The maximum allowable dividend that can be
paid in 1998 by Liberty Life without approval from the South Carolina Insurance
Commissioner is $36.4 million. Actual dividends and distributions paid by
Liberty Life were $21.0 million in 1997, $21.0 million in 1996, and $20.0
million in 1995.  Under regulations effective July 1, 1995, the South Carolina
Insurance Department must be notified of all dividends and distributions to
shareholders within five days following the declaration, and at least ten days
prior to the payment of the dividend or distribution, and will have the
authority to limit the amount of any dividends or distributions.  Extraordinary
dividends, defined as distributions that, together with all other distributions
within a 12 month period, exceed the greater of the net gain from operations or
10% of statutory surplus, cannot be made without the approval of the South
Carolina Insurance Department, unless the department has not disapproved the
payment within 30 days following the notice of the declaration.  The current
California statutes applicable to Pierce National limit dividend payments to
the Company to the greater of 10% of statutory surplus or the prior year's net
gain from operations (excluding realized capital gains and losses).  Pierce
National paid dividends to Liberty in 1997 of $40.3 million, of which $10.3
million represented an allowable dividend under the California statutes.  The
balance of $30 million represented an extraordinary dividend that was approved
by the California Insurance Commissioner.  Pierce did not pay any dividends to
Liberty in 1996 and paid $2.7 million in dividends in 1995.

    In accordance with the rules and practices of the NAIC and in accordance
with state law, every insurance company is generally examined once every three
years by examiners from its state of domicile and from several of the other
states where it is licensed to do business.  Examinations of Liberty Life and
Pierce National for the three years ended December 31, 1994 have been completed
and the reports issued did not indicate any significant areas of concern.

    The Office of the Superintendent of Financial Institutions - Canada, and
the Canadian provinces regulate and supervise the Canadian operations of Pierce
National in the same manner as the NAIC and the states.  Separate financial
statements are required to meet the Canadian regulatory requirements and a
separate examination is conducted by the Canadian regulatory agencies.

    The Company's insurance subsidiaries are also subject to regulation as an
insurance holding company system under statutes which have been enacted in
their states of domicile and other states in which they are licensed to do
business.  Pursuant to these statutes, Liberty Life and Pierce National are
required to file an annual registration statement with the Office of the
Commissioner of Insurance and to report all material changes or transactions.
In addition, these statutes restrict the ability of any person to acquire
control (generally presumed at 10% or more) of the outstanding voting
securities of the Company without prior regulatory approval.





                                      7
<PAGE>   8


BROADCASTING OPERATIONS

    Cosmos currently owns and operates the following television stations, seven
of which were ranked No. 1 in their market by the November 1997 Nielsen ratings
(sign-on to sign-off).

<TABLE>
<CAPTION>
          Station              Primary Market                        Affiliation      VHF/UHF
          -------              --------------                        -----------      -------
          <S>                  <C>                                   <C>              <C>
          WAVE-TV              Louisville, Kentucky                  NBC              VHF
          WIS-TV               Columbia, South Carolina              NBC              VHF
          WSFA-TV              Montgomery, Alabama                   NBC              VHF
          KPLC-TV              Lake Charles, Louisiana               NBC              VHF
          WTOL-TV              Toledo, Ohio                          CBS              VHF
          KAIT-TV              Jonesboro, Arkansas                   ABC              VHF
          WFIE-TV              Evansville, Indiana                   NBC              UHF
          WLOX-TV              Biloxi, Mississippi                   ABC              VHF
</TABLE>

    Cosmos has 830 full-time employees and 105 part-time employees, including
its cable sales operations in Aiken, SC, Columbia, SC, Florence, SC, Greenwood,
SC, Horry County, SC, Sumter, SC, Montgomery, AL and Frankfort, KY.

    NETWORK AFFILIATES.  Each Cosmos station is affiliated with one of the
major networks - NBC, ABC, CBS.  The affiliation contracts provide that the
network will offer to the affiliated station a variety of network programs,
both sponsored and unsponsored, for which the station has the right of first
refusal against any other television station located in its community.  The
station has the right to reject or accept the programs offered by the network
and also has the right to broadcast programs either produced by the station or
acquired from other sources.  The major networks provide their affiliated
stations with programming and sell the programs, or commercial time during the
programs, to national advertisers. The major networks typically provide
programming for approximately 90 hours of the approximately 135 hours per week
broadcast by their affiliated stations.

    The NBC affiliation contracts with each of Cosmos' NBC affiliated stations
have been continuously in effect for over forty years.  Cosmos' CBS and ABC
affiliation contracts have each been continuously in effect for approximately
thirty years.

    SOURCES OF COSMOS' TELEVISION OPERATING REVENUES.  The following table
shows the approximate percentage of Cosmos' gross television operating revenues
by source excluding other income for the three years ended December 31, 1997:


<TABLE>
<CAPTION>
Year ended December 31                                               1997          1996          1995
-------------------------------------------------------------------------------------------------------
<S>                                                                  <C>           <C>           <C>
Local and Regional Advertising                                         62%           60%           60%
National Spot Advertising                                              29            26            28
Network Compensation                                                    8             8             9
Political Advertising                                                   1             6             3
</TABLE>

    Local and regional advertising is sold by each station's own sales
representatives to local and other non-national advertisers or agencies.
Generally these contracts are short-term, although occasionally longer-term
packages will be sold.  National spot advertising (generally a series of spot
announcements between programs or within the station's own programs) is sold by
the station or its sales representatives directly to agencies representing
national advertisers.  Most of these national sales contracts are also
short-term, often covering spot campaigns running for thirteen weeks or less.
Network compensation is paid by the network to its affiliated stations for
broadcasting network programs that include advertising sold by the network to
agencies representing national advertisers.  Political advertising is generated
by national and local elections, which is by definition very cyclical.

    A television station's rates are primarily determined by the estimated
number of television homes it can provide for an advertiser's message.  The
estimates of the total number of television homes in the market and of the
station's share of





                                       8
<PAGE>   9

those homes is based on the AC Nielsen industry-wide television rating service.
The demographic make-up of the viewing audience is equally important to
advertisers.  A station's rate card for national and local advertisers takes
into account, in addition to audience delivered, such variables as the length
of the commercial announcements and the quantity purchased.  The payments by a
network to an affiliated station are largely determined by the total homes
delivered and is based on the local market rating strength of the affiliate and
the audience it helps bring to the network programs.

    TELEVISION BROADCASTING COMPETITION.  The television broadcasting industry
competes with other leisure time activities for the time of viewers and with
all other advertising media for advertising dollars.  Within its coverage area
a television station competes with other stations and with other advertising
media serving the same area.  The outcome of the competition among stations for
advertising dollars in a market depends principally on share of audience,
advertising rates and the effectiveness of the sales effort.

    Cosmos believes that each of its stations has a strong competitive position
in its local market, enabling it to deliver a high percentage of the local
television audience to local advertisers.  Cosmos' commitment to local news
programming, combined with syndicated programming, are important elements in
maintaining Cosmos' current market positions.

    Another source of competition is cable television, which brings additional
television programming, including pay cable (HBO, Showtime, Movie Channel,
etc.), into subscribers' homes in a television station's service area.  Cable
television competes for the station's viewing audience and, on a more modest
scale, its advertising.

    Federal law now requires that cable operators negotiate with television
operators for the right to carry a station's signal (programs) on cable
systems.  Cosmos recently used this "retransmission consent" negotiation to
forge long-term partnerships with cable operators with the purpose of
developing secondary revenue streams from programs and services specifically
produced for cable.  In 1994 Cosmos formed CableVantage Inc., a marketing
company designed to assist local cable operators in the sale of commercial time
available in cable network programs.

    Subscription Television, an over-the-air pay television service, and
Multipoint Distribution Service, a microwave- distributed pay television
service, also compete for television audiences.  In addition, licenses are now
being granted for Multichannel Multipoint Distribution Service.  None of these
services has yet significantly fractionalized the audiences of commercial
television stations.

    Two other television broadcast services are providing consumers with
additional technical delivery/programming opportunities.  Low power television,
sometimes referred to as "neighborhood TV," is authorized to operate in a
limited coverage area.  Authorizations are being granted by the Federal
Communication Commission ("FCC") on a lottery basis.  Direct Broadcast
Satellite, which transmits television signals from satellite transponders to
parabolic home antennae, is now being actively marketed.

    DIGITAL TELEVISION.   Digital television is expected to become increasingly
available to consumers over the next several years.  During 1997, the FCC
outlined the rollout plan for digital television, which is expected to bring
digital television signals to over 50 million homes in the top 30 television
markets by the year 2000.  All other markets must provide digital broadcasts by
May, 2002.  The rollout of digital television has created much debate from
television operators as they must assess the cost to upgrade their current
equipment to transmit the digital signal, when to begin the upgrade and when to
begin the subsequent broadcasting of the digital signal.  There is much
uncertainty surrounding this because (i.) much of the new technology and
hardware is experimental and untested, and many operators may be inclined to
postpone the conversions as long as possible to allow refinement of this new
technology, and (ii.) the television sets required to view the digital signal
are expected to initially be cost prohibitive for most viewers to purchase.
Liberty is currently assessing the impact of the conversion to digital
television, and plans, to the extent possible, to integrate as much of its
upgrades as possible into its scheduled capital expenditure plan that would be
undertaken without regard to digital television.

    FEDERAL REGULATION OF BROADCASTING.  Cosmos' broadcasting operations are
subject to the jurisdiction of the FCC under the Communications Act.  The
Communications Act empowers the FCC, among other things, to issue, revoke or
modify broadcasting licenses; to assign frequency bands; to determine the
location of stations; to regulate the apparatus used by stations; to establish
areas to be served; to adopt such regulations as may be necessary to carry out
the provisions





                                       9
<PAGE>   10


of the Communications Act and to impose certain penalties for violation of such
regulations. The Communications Act prohibits the transfer of a license or the
transfer of control or other change in control of a licensee without prior
approval of the FCC.  The Hipp family is considered by the FCC to have de facto
control over Cosmos, and any action that would change such control would
require prior approval of the FCC.

    The Telecommunications Act signed into law in 1996 (the "1996 Act") changed
many existing regulations concerning, among other things, the ownership of
television stations.  Under previous regulations governing multiple ownership,
a license to operate a television station generally would not be granted to any
person (or persons under common control) if such person directly or indirectly
held a significant interest in more than 12 television stations or less than 12
television stations if their audience coverage exceeded 25% of total United
States households.  The 1996 Act allows for unlimited ownership of stations as
long as the audience coverage does not exceed 35% of total households.
Previous FCC regulations also limited ownership of television stations by those
having interests in cable television systems and daily newspapers serving the
same service area as the television stations.  The 1996 Act dropped the
station/cable same market ownership prohibition.  The 1996 Act also lengthened
the term for which television broadcasting licenses may be granted from a
maximum term of five years to a maximum term of eight years.  In the absence of
adverse findings by the FCC as to the licensee's qualification, licenses are
usually renewed without hearing by the FCC for additional eight year terms.
Cosmos' renewal applications have always been granted without hearing for the
full term.  The loosening of the ownership provisions, as well as the other
provisions included in the 1996 Act, are not expected to have any immediate
impact on the operations of Cosmos.

    There are additional FCC Regulations and Policies, and regulations and
policies of other federal agencies, principally the Federal Trade Commission,
regulating network/affiliate relations, political broadcasts, children's
programming, advertising practices, equal employment opportunity, carriage of
television signals by CATV systems, application and reporting procedures and
other areas affecting the business and operations of television stations.





                                       10
<PAGE>   11

EXECUTIVE OFFICERS

    The following is a list of the Executive Officers of the Registrant
indicating their age and certain biographical data.

W. HAYNE HIPP, Age 58
  Chairman of the Board of Liberty since May, 1995
  Chairman of the Board of Cosmos since May, 1995
  President and Chief Executive Officer of Liberty since September, 1981
  Chairman of the Board of Liberty Life from January, 1979 - February, 1988;
    September, 1989 - December 31, 1997
  Chairman of the Board of Cosmos - May , 1989 - February, 1992

JENNIE M. JOHNSON, Age 50
  President of Pierce National Life Insurance Company since August, 1995
  Vice President, Administration of Liberty from February, 1994 to August, 1995
  Vice President, Planning of Liberty from February, 1986 to December, 1994

KENNETH W. JONES, Age 40
  Corporate Controller of Liberty since May, 1997
  Assistant Controller of Liberty from September, 1994 to May, 1997
  Treasurer of Liberty Life since May, 1997

JAMES M. KEELOR, Age 55
  President of Cosmos since February, 1992
  Vice President, Operations, of Cosmos from December, 1989 to February, 1992

RONALD F. LOEWEN, Age 50
  President of Liberty Life since January, 1997
  General Manager of WIS-TV from April, 1990 to December, 1996

MARTHA G. WILLIAMS, Age 55
  Vice President, General Counsel & Secretary of Liberty since January, 1982
  Vice President, General Counsel & Secretary of Liberty Life since January,
  1982
  Secretary and Counsel of Cosmos since February, 1982





                                       11
<PAGE>   12

OTHER BUSINESS

    In addition to the operating subsidiaries, the Company has other minor
organizations.  These include the Company's administrative staff, an investment
advisory company, a property development & management company and
transportation operations.


INDUSTRY SEGMENT DATA

    Information concerning the Company's industry segments is contained in
Selected Financial Data on page 27 of The Liberty Corporation Annual Report to
Shareholders and is filed as Exhibit 13 on page 30 of this report and is
incorporated in this Item 1 by reference.


ITEM 2.      PROPERTIES

    MAIN OFFICES.  The main office of the Company, Liberty Life, Pierce
National, Liberty Insurance Services, and Cosmos is located on a 30-acre tract
in Greenville, SC, and consists of three buildings totaling approximately
360,000 square feet plus parking.  The main office facilities are owned by the
Company and Liberty Life.  Liberty Life leases branch office space in various
cities.  Leases are normally made for terms of one to ten years.

    Cosmos owns its television broadcast studios, office buildings and
transmitter sites in Columbia, SC; Montgomery, AL; Toledo, OH; Louisville, KY;
Evansville, IN; Jonesboro, AR; Lake Charles, LA; and Biloxi, Mississippi.


ITEM 3.      LEGAL PROCEEDINGS

    In January 1996, a lawsuit was filed by the Company against a software
development company alleging breach of contract in connection with an agreement
to develop a state-of-art software system to administer the Company's insurance
operations.  The suit seeks to recover amounts paid to the software developer
and other costs incurred by the Company in the attempt to develop the system.
In  1997, the software developer filed a counterclaim against the Company
alleging breach of contract.  Management, after consultation with legal
counsel, believes this counterclaim is without merit and is a response to the
suit filed by the Company.  The Company intends to contest the counterclaim
vigorously.  The Company believes its lawsuit is meritorious; however, no
estimated recovery is included in the accompanying financial statements.

    In December 1995, a lawsuit was filed against the Company alleging breach
of contract.  The lawsuit relates to a transaction in which the Company was
unsuccessful in acquiring certain entities partially owned by the plaintiff.
Management, after consultation with legal counsel, believes the lawsuit is
without merit and intends to contest the suit vigorously.

    Other than the suits mentioned above, the Company is not currently engaged
in legal proceedings of material consequence other  than ordinary routine
litigation incidental to its business.  Any proceedings reported in prior
filings have been settled or otherwise satisfied.





                                       12
<PAGE>   13

ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

    None


                                    PART II

ITEM 5.      MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SECURITY
             STOCKHOLDER MATTERS

    Information concerning the market for the Company's Common Stock and
related stockholder matters is contained on the inside back cover of The
Liberty Corporation Annual Report to Shareholders and is filed as Exhibit 13 on
page 28 of this report and is incorporated in this Item 5 by reference.


ITEM 6.      SELECTED FINANCIAL DATA

    Selected Financial Data for the Company is contained on page 27 of The
Liberty Corporation Annual Report to Shareholders and is filed as Exhibit 13 on
page 29 of this report and is incorporated in this Item 6 by reference.



ITEM 7.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS

    Management's Discussion and Analysis of Financial Condition and Results of
Operations is contained on pages 28-36 of The Liberty Corporation Annual Report
to Shareholders and is filed as Exhibit 13 on pages 30-39 of this report and is
incorporated in this Item 7 by reference.


ITEM 8.      FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

    The Company's Consolidated Financial Statements and Report of Independent
Auditors are contained on pages 6-26 of The Liberty Corporation Annual Report
to Shareholders and is filed as Exhibit 13 on pages 40-61 of this report and
are incorporated in this Item 8 by reference.


ITEM 9.      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
             FINANCIAL DISCLOSURE

    None


                                    PART III

ITEM 10.     DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

    Information concerning Directors of the Company is contained in The Liberty
Corporation Proxy Statement for the May 5, 1998 Annual Meeting of Shareholders
and is incorporated in this Item 10 by reference.

    Information concerning Executive Officers of the Company is submitted in a
separate section of this report in Part I, Item 1 on page 11 and is
incorporated in this Item 10 by reference.





                                       13
<PAGE>   14

ITEM 11.     EXECUTIVE COMPENSATION

             Information concerning Executive Compensation and transactions is
contained in The Liberty Corporation Proxy Statement for the May 5, 1998 Annual
Meeting of Shareholders and is incorporated in this Item 11 by reference.


ITEM 12.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

    Information concerning Security Ownership of Certain Beneficial Owners and
Management is contained in The Liberty Corporation Proxy Statement for the May
5, 1998 Annual Meeting of Shareholders and is incorporated in this Item 12 by
reference.


ITEM 13.     CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

    Information concerning Certain Relationships and Related Transactions is
contained in The Liberty Corporation Proxy Statement for the May 5, 1998 Annual
Meeting of Shareholders and is incorporated in this Item 13 by reference.


                                    PART IV

ITEM 14.     EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(A)      (1) AND (2).   LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT
SCHEDULES

   The following consolidated financial statements of The Liberty Corporation
and Subsidiaries are included in the Company's Annual Report to Shareholders
for the year ended December 31, 1997, filed as Exhibit 13 to this report and
incorporated in Item 8 by reference:

         Consolidated Balance Sheets - December 31, 1997 and 1996
         Consolidated Statements of Income - For the three years ended December
         31, 1997
         Consolidated Statements of Cash Flows - For  the three years ended
         December 31, 1997
         Consolidated Statements of Shareholders' Equity - For the three years
         ended December 31, 1997
         Notes to Consolidated Financial Statements - December 31, 1997
         Report of Independent Auditors


         The following consolidated financial statement schedules of The
         Liberty Corporation and Subsidiaries are included in Item 14(d):

           I-    Summary of Investments
           II-   Condensed Financial Statements of The Liberty Corporation
                 (Parent Company)
           III-  Supplementary Insurance Information
           IV -  Reinsurance
           V -   Valuation and Qualifying Accounts and Reserves

         All schedules for which provision is made in the applicable accounting
         regulation of the Securities and Exchange Commission, but which are
         excluded from this report, are not required under the related
         instructions or are inapplicable, and therefore have been omitted.





                                       14
<PAGE>   15


         (A)(3). LIST OF EXHIBITS

    3.1      Restated Articles of Incorporation, as amended through May 6, 1997
             (filed with the Registrant's Quarterly Report on Form 10Q/A for
             the period ended March 31, 1997 and incorporated herein by
             reference)

    3.2      Bylaws, as amended through November 5, 1996

    4.1      See Articles 4, 5, 7 and 9 of the Company's Restated Articles of
             Incorporation (filed as Exhibit 3.1) and Articles I, II and VI of
             the Company's Bylaws (filed as Exhibit 3.2).

    4.2      See the Form of Rights Agreement dated as of August 7, 1990
             between The Liberty Corporation and The Bank of New York, as
             Rights Agent, which includes as Exhibit B thereto the form of
             Right Certificate (filed as Exhibits 1 and 2 to the Registrant's
             Form 8-A, dated August 10, 1990, and incorporated herein by
             reference) with respect to the Rights to purchase Series A
             Participating Cumulative Preferred Stock.

    4.3      See Credit Agreement dated March 21, 1995 (filed as Exhibit 10 to
             the Registrant's Quarterly Report on Form 10Q for the quarter
             ended June 30, 1995 and incorporated herein by reference).

    10.1     See Credit Agreement dated March 21, 1995 (filed as Exhibit 4.3).

    10.2     The Liberty Corporation Performance Incentive Compensation
             Program, as amended and restated on    February 4, 1997, filed as
             Exhibit B to the Registrant's Proxy Statement dated March 27,
             1997, and incorporated herein by reference.

    11.      The Liberty Corporation and Subsidiaries Consolidated Earnings Per
             Share Computation (incorporated herein by reference to Note 11 of
             the "Notes to Consolidated Financial Statements" on page 22 of The
             Liberty Corporation Annual Report to Shareholders for the year
             ended December 31, 1997) filed on page 56 of this report.

    13.      Portions of The Liberty Corporation Annual Report to Shareholders
             for the year ended December 31, 1997: Market for the Registrant's
             Common Stock and Related Security Stockholder Matters Selected
             Financial Data
             Management's Discussion and Analysis of Financial Condition and
             Results of Operations
             Financial Statements and Supplementary Information:
               Consolidated Balance Sheets - December 31, 1997 and 1996
               Consolidated Statements of Income - For the three years ended
               December 31, 1997
               Consolidated Statements of Cash Flows - For the three years
               ended December 31, 1997
               Consolidated Statements of Shareholders' Equity - For the three
               years ended December 31, 1997
             Notes to Consolidated Financial Statements - December 31, 1997
             Report of Independent Auditors

    21.      The Liberty Corporation and Subsidiaries, List of Subsidiaries

    23.      Consent of Independent Auditors

    24.      Powers of Attorney applicable for certain signatures of members of
             the Board of Directors in Registrant's10-K filed for the years
             ended December 31, 1983, 1985, 1989, 1994, 1995, 1996, and 1997.

    27.      Financial Data Schedule (Electronic Filing Only)





                                       15
<PAGE>   16

(B).         REPORTS ON FORM 8-K

             The following reports on Form 8-K were filed after September 30,
1997:

             (1) A Current Report on Form 8-K dated November 13, 1997 was filed
                 with respect to the agreement to sell Pierce National Life
                 Insurance Company to Fortis, Inc. for $180 million cash.
             (2) A Current Report on Form 8-K dated February 2, 1998 was filed
                 with respect to the news release announcing the fourth quarter
                 1997 and 1997 annual results of The Liberty Corporation
             (3) A Current Report on Form 8-K/A dated November 13, 1997 was
                 filed with respect to the restatement and amendment of the Pro
                 Forma Condensed Financial Statements of The Liberty
                 Corporation and Subsidiaries originally filed with the Current
                 Report on Form 8-K dated November 13, 1997

(C).             EXHIBITS FILED WITH THIS REPORT


    11.      The Liberty Corporation and Subsidiaries Consolidated Earnings Per
             Share Computation (incorporated herein by reference to Note 11 of
             the "Notes to Consolidated Financial Statements" on page 22 of The
             Liberty Corporation Annual Report to Shareholders for the year
             ended December 31, 1997).

    13.      Portions of The Liberty Corporation Annual Report to Shareholders
             for the year ended December 31, 1997: Market for the Registrant's
             Common Stock and Related Security Stockholder Matters Selected
             Financial Data Management's Discussion and Analysis of Financial
             Condition and Results of Operations Financial Statements and
             Supplementary Information:
               Consolidated Balance Sheets - December 31, 1997 and 1996
               Consolidated Statements of Income - For the three years ended
               December 31, 1997 Consolidated Statements of Cash Flows - For
               the three years ended December 31, 1997 Consolidated Statements
               of Shareholders' Equity - For the three years ended December 31,
               1997
             Notes to Consolidated Financial Statements - December 31, 1997
             Report of Independent Auditors

    21.      The Liberty Corporation and Subsidiaries, List of Subsidiaries

    23.      Consent of Independent Auditors

    24.      Powers of Attorney applicable for certain signatures of members of
             the Board of Directors in Registrant's 10-K filed for the year
             ended December 31, 1997.

    27.      Financial Data Schedule (Electronic Filing Only)





                                       16
<PAGE>   17


(D).     CONSOLIDATED FINANCIAL STATEMENT SCHEDULES FILED WITH THIS REPORT

             I-    Summary of Investments - December 31, 1997
             II-   Condensed Financial Statements of The Liberty Corporation
                      (Parent Company) December 31, 1997 and 1996
             III-  Supplementary Insurance Information - For the Three Years
                   Ended December 31, 1997
             IV-   Reinsurance - For the Three Years Ended December 31, 1997
             V-    Valuation and Qualifying Accounts and Reserves - For the
                   Three Years Ended December 31, 1997





                                       17
<PAGE>   18

                                                                      Schedule I
                    THE LIBERTY CORPORATION AND SUBSIDIARIES
                             SUMMARY OF INVESTMENTS
                               DECEMBER 31, 1997
                                   (In 000's)



<TABLE>
<CAPTION>
                                                                                                      Amount at Which
                                                                                                          Shown on
                      Type of Investment                           Cost                Value           Balance Sheet
--------------------------------------------------------------------------           ---------        ---------------
<S>                                                             <C>                 <C>               <C>
Fixed maturity securities, available for sale
 Bonds:
    United States Government and government agencies and
      authorities                                               $  393,459          $  414,767          $  414,767
    States, municipalities, and political subdivisions                 ---                 ---                 ---
    Foreign governments                                              7,537               7,563               7,563
    Foreign corporate and other                                    104,607             112,259             112,259
    Public utilities                                               138,977             151,819             151,819
    Convertibles and bonds with warrants attached                      ---                 ---                 ---
    All other corporate bonds                                      903,406             946,218             946,218
 Redeemable preferred stocks                                        39,601              41,262              41,262
                                                                ----------          ----------          ----------
 Total                                                           1,587,587           1,673,888           1,673,888
                                                                ----------          ==========          ----------

Equity securities, available for sale
 Common stocks:
   Public utilities                                                    ---                                     ---
   Banks, trusts and insurance companies                        $    3,289          $    8,997          $    8,997
   Industrial, miscellaneous, and all other                         42,952              54,443              54,443
 Nonredeemable preferred stocks                                      9,751              11,128              11,128
                                                                ----------          ----------          ----------
 Total                                                              55,992          $   74,568              74,568
                                                                ----------          ==========          ----------

Mortgage loans on real estate                                      244,821                                 244,821
Investment real estate                                              49,169                                  49,169
Policy loans                                                       100,322                                 100,322
Other long-term investments                                         18,459                                  18,459
Short-term investments                                                 250                                     250
                                                                ----------                              ----------

Total investments                                               $2,056,600                              $2,161,477
                                                                ==========                              ==========
</TABLE>





                                      18


<PAGE>   19

                                                                     Schedule II


                    THE LIBERTY CORPORATION (PARENT COMPANY)
                            CONDENSED BALANCE SHEETS
                           DECEMBER 31, 1997 and 1996
                         (In $000's, except share data)

<TABLE>
<CAPTION>
        ASSETS                                                                    1997                 1996
        ------                                                                 -----------          ----------
  <S>                                                                          <C>                  <C>
  Cash                                                                         $     5,015          $    1,450
  Fixed maturity securities                                                         36,045                 598
  Equity securities                                                                 30,033                   2
  Loans, notes and other receivables                                                10,372               7,890
  Investment properties, at cost less accumulated depreciation of
      $1,319 in 1997 and $10,118 in 1996                                            23,955              79,941
  Other long-term investments                                                        6,167               6,139
  Buildings and equipment, at cost less accumulated depreciation of
      $13,868 in 1997 and $11,919 in 1996                                           18,077              19,066
  Investment in affiliated companies*                                              683,472             657,194
  Intercompany debt and advances*                                                   94,173              96,921
  Income taxes recoverable                                                           6,360              10,823
  Deferred income tax benefits (liabilities)                                        (5,744)              1,026
  Other assets                                                                       7,908               8,973
                                                                               -----------          ----------
        Total Assets                                                           $   915,833          $  890,023
                                                                               ===========          ==========

  LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY
  ----------------------------------------------------------------

  Liabilities:
    Notes, mortgages and other debt                                            $   189,214          $  243,221
    Accounts payable and accrued expenses                                           13,830              16,826
    Other liabilities                                                                  605                 221
                                                                               -----------          ----------
        Total Liabilities                                                          203,649             260,268

  Redeemable Preferred Stock:
    1994-A Series, $35.00 redemption value, 504,168 and 668,207
       shares issued and outstanding in 1997 and 1996, respectively                 17,646              23,387
    1994-B Series, $37.50 redemption value, 525,948 and 592,334
       shares issued and outstanding in 1997 and 1996, respectively                 19,723              22,212
                                                                               -----------          ----------
        Total Redeemable Preferred Stock                                            37,369              45,599

  Shareholders' Equity:
    Common stock
      Authorized - 50,000,000 shares, no par value
         Issued and outstanding - 20,712,686 in 1997 and 20,214,738 in 1996        182,994             163,443
    Convertible Preferred Stock, 1995-A Series,
       599,985 shares issued and outstanding                                        20,999              20,999
    Unearned stock compensation                                                    (10,872)             (7,168)
    Unrealized appreciation on fixed maturity securities
       available for sale and equity securities of subsidiaries                     61,515              39,726
    Cumulative foreign currency translation adjustment                                 335                (204)
    Retained earnings                                                              419,844             367,360
                                                                               -----------          ----------
        Total Shareholders' Equity                                                 674,815             584,156
                                                                               -----------          ----------
        Total Liabilities, Redeemable Preferred Stock and Shareholders'
          Equity                                                               $   915,833          $  890,023
                                                                               ===========          ==========
</TABLE>

 *Eliminated in consolidation.
  See notes to condensed financial statements.





                                      19
<PAGE>   20

                                                                     Schedule II




                    THE LIBERTY CORPORATION (PARENT COMPANY)
                         CONDENSED STATEMENTS OF INCOME
                  FOR THE THREE YEARS ENDED DECEMBER 31, 1997
                                  (In $000's)


<TABLE>
<CAPTION>
                                                          1997                 1996                 1995
                                                       ----------          -----------          -----------
  <S>                                                  <C>                 <C>                  <C>
  REVENUES
    Dividends from subsidiaries*                         $ 74,814             $ 33,250             $ 45,331
    Interest-unaffiliated                                     561                  676                1,151
    Intercompany interest*                                  8,157                8,519                8,303
    Realized investment gains (losses)                      5,504               (5,407)              (3,195)
    Other                                                  18,318               27,123               30,059
                                                         --------             --------             --------
       Total Revenues                                     107,354               64,161               81,649

  EXPENSES
    Salaries and wages                                     17,507               18,240                9,803
    Interest-unaffiliated                                  13,021               15,007               14,867
    Intercompany interest*                                  2,193                2,471                4,072
    Taxes and licenses                                      2,069                2,250                1,508
    Depreciation and amortization                           7,373                8,645                5,275
    Other                                                   6,298               10,621               20,874
                                                         --------             --------             --------
       Total Expenses                                      48,461               57,234               56,399

  Income before income taxes                               58,893                6,927               25,250
  Income tax benefits                                      (5,746)              (9,786)              (7,359)
                                                         --------             --------             --------
  Income before earnings of subsidiaries                   64,639               16,713               32,609

  Earnings of subsidiaries
    net of dividends paid to parent*                        7,385               21,230               27,928
                                                         --------             --------             --------
      NET INCOME                                         $ 72,024**           $ 37,943***          $ 60,537***
                                                         ========             ========             ========
</TABLE>

*   Eliminated in consolidation.
**  Differs from consolidated net income by $2,927 due to gains recognized on a
    consolidated basis previously recognized by subsidiaries on intercompany
    transactions.  Gains were deferred on a consolidated basis until completion
    of the earnings process.
*** Differs from consolidated net income by $603 and $1,184 in 1996 and 1995,
    respectively, due to gains deferred on a consolidated basis until
    completion of the earnings process.

See notes to condensed financial statements.





                                       20
<PAGE>   21

                                                                     Schedule II



                    THE LIBERTY CORPORATION (PARENT COMPANY)
                       CONDENSED STATEMENTS OF CASH FLOWS
                  FOR THE THREE YEARS ENDED DECEMBER 31, 1997
                                  (In $000's)

<TABLE>
<CAPTION>
                                                            1997                1996                 1995
                                                        -----------         -----------         -----------
  <S>                                                   <C>                 <C>                 <C>
  OPERATING ACTIVITIES
  Net income                                            $    72,024         $    37,943         $    60,537
  Adjustments to reconcile net income to net cash
  provided by operating activities:
     Depreciation and amortization                            7,373               8,645               5,275
     Provision for deferred income taxes                      1,556              (1,143)              2,740
     Earnings from subsidiary operations, net of
       dividends paid to parent                              (7,385)            (21,230)            (27,928)
     Non-cash dividends paid to parent                      (39,370)                ---                 ---
     Gain on disposal of assets                              (2,011)             (3,172)             (3,231)
     Realized investment (gains) losses                      (5,504)              5,407               3,195
     Change in operating assets and liabilities:
       Decrease (increase) in intercompany debt and
          advances*                                           2,748                 (79)            (27,434)
       (Increase) decrease in accounts and notes
        receivable                                           (2,482)              2,063              (1,209)
       (Decrease) increase in accounts payable and
        accrued expenses                                     (2,996)              5,189               2,478
       Decrease (increase) in other assets                    1,065                 892              (1,250)
       Increase (decrease) in other liabilities,
        and accrued income taxes                              4,847               1,164              (5,927)
       Other                                                     53              (2,083)              1,144
                                                        -----------         -----------         -----------
  NET CASH PROVIDED BY OPERATING ACTIVITIES                  29,918              33,596               8,390


  INVESTING ACTIVITIES
  Reduction in investment in subsidiaries*                                          ---               4,048
  Investment securities sold                                    349
  Purchase of investment properties                          (7,563)            (22,556)            (34,177)
  Sale of investment properties                              49,601              13,982              31,997
  Net cash paid on purchase of broadcasting
  business                                                      ---                 ---              (5,638)
  Other                                                         923               1,270              (9,264)
                                                        -----------         -----------         -----------
  NET CASH PROVIDED BY (USED IN) INVESTING
  ACTIVITIES                                                 43,310              (7,304)            (13,034)

  FINANCING ACTIVITIES
  Proceeds from borrowings                                2,505,000           2,957,704           1,901,001
  Principal payments on debt                             (2,559,007)         (2,966,087)         (1,888,820)
  Dividends paid                                            (19,540)            (18,366)            (16,814)
  Stock issued for employee benefit and performance
    incentive compensation programs                           3,884               1,441               2,908
                                                        -----------         -----------         -----------
  NET CASH USED IN FINANCING ACTIVITIES                     (69,663)            (25,308)             (1,725)


  INCREASE (DECREASE) IN CASH                                 3,565                 984              (6,369)
  Cash at beginning of year                                   1,450                 466               6,835
                                                        -----------         -----------         -----------
  CASH AT END OF YEAR                                   $     5,015         $     1,450         $       466
                                                        ===========         ===========         ===========
</TABLE>

*Eliminated in consolidation.
See notes to condensed financial statements.




                                       21
<PAGE>   22

                                                                     Schedule II


                    THE LIBERTY CORPORATION (PARENT COMPANY)
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                               DECEMBER 31, 1997


1.       NOTES, MORTGAGES AND OTHER DEBT

         The general debt obligations at December 31, 1997, are as follows:


<TABLE>
<CAPTION>
                                                                              Average
    (In 000's)                                                             Interest Rate    Amount
    ---------                                                              -------------  ---------
    <S>                                                                    <C>            <C>
    Notes due to banks                                                          6.2%      $188,000
    Mortgage loans on investment property                                       8.0          1,214
                                                                                          --------
                                                                                          $189,214
                                                                                          ========
</TABLE>

                 On March 21, 1995, the Parent Company completed the
         restructuring of its $325 million revolving credit facility into a new
         $375 million, multi-tranche credit facility which will mature on
         various dates beginning in March 1999.  Borrowings under the new
         facility were used to refinance indebtedness under the $325 million
         facility, as well as to provide funds to meet working capital
         requirements.  During 1997 the Company terminated the convertible loan
         commitment and reduced the amount available under the revolving
         facility by $50 million.  See Note 5 of The Liberty Corporation and
         Subsidiaries Consolidated Financial Statements provides additional
         information as to this agreement. The maturities of the general debt
         obligations at December 31, 1997 are as follows:

<TABLE>
<CAPTION>
    (In 000's)                                                                             Amount
    ----------                                                                            --------
    <S>                                                                                   <C>
    1998                                                                                   $41,214
    1999                                                                                   148,000
    2000                                                                                       ---
    2001                                                                                       ---
    2002                                                                                       ---
    Thereafter                                                                                 ---
                                                                                          --------
                                                                                          $189,214
                                                                                          ========
</TABLE>

2.       COMMITMENTS AND CONTINGENT LIABILITIES

                 The Parent Company has guaranteed a $7 million letter of
         credit for an unaffiliated marketing company.  As of December 31,
         1997, $20 thousand was outstanding under the letter of credit.  In
         connection with the sale of the Company's business rental property and
         business park land developments during May, 1997, the Company has
         guaranteed approximately $37 million of debt of the Purchaser of the
         properties.


3.       DIVIDENDS TO PARENT COMPANY

                 During 1997, the Parent Company received dividends from its
         subsidiaries of approximately $74.8 million.  Of this total,
         approximately $39.4 million was in the form of securities that were
         transferred to the Parent Company.


4.       RETAINED EARNINGS

                 As of December 31, 1997 and 1996, retained earnings of
         $419,844,000 and $367,360,000 respectively, in The Liberty Corporation
         (Parent Company) financial statements differs from The Liberty
         Corporation and Subsidiaries consolidated financial statements.  The
         difference of $368,000 and $3,295,000 at December 31, 1997 and 1996,
         respectively, relates to the elimination of gains on intercompany
         transactions on a consolidated basis.





                                       22
<PAGE>   23


                                                                    Schedule III
                    THE LIBERTY CORPORATION AND SUBSIDIARIES
                      SUPPLEMENTARY INSURANCE INFORMATION
                  FOR THE THREE YEARS ENDED DECEMBER 31, 1997
                                  (In $000's)


<TABLE>
<CAPTION>

                                   Deferred                                       Future Policy                         Other Policy
                                    Policy                     Cost of              Benefits,                             Claims &
                                  Acquisition                 Business           Losses, Claims        Unearned          Benefits
             Segment                 Costs                    Acquired           and Loss Expenses     Premiums           Payable
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                         <C>                <C>                   <C>              <C>
December 31, 1997
-----------------
Life/Health Insurance               $275,615                  $62,226                $1,886,722          $4,064           $65,145
December 31, 1996
------------------------------------------------------------------------------------------------------------------------------------

-----------------
Life/Health Insurance               $262,182                  $70,764                $1,848,762          $4,411           $59,938

December 31, 1995
-----------------
Life/Health Insurance               $265,188                  $86,925                $1,807,339          $4,078           $51,442
</TABLE>

<TABLE>
<CAPTION>
                                                                                   Amortization
                                                                                   of Deferred
                                                            Benefits               Acquisition                    Accident &
                                            Net          Claims, Losses             Costs and        Other          Health
                            Premium      Investment      & Settlement            Cost of Business  Operating       Premiums
         Segment            Revenue        Income          Benefits                  Acquired       Expenses       Written
----------------------------------------------------------------------------------------------------------------------------
 <S>                        <C>          <C>             <C>                     <C>               <C>            <C>
 1997
 ----
 Life/Health Insurance      $350,692       $155,007          $227,927                  $45,564       $146,206       $78,714

 1996
 ----
 Life/Health Insurance      $321,371       $150,413          $218,751                  $73,967       $140,294       $50,523

 1995
 ----
 Life/Health Insurance      $331,370       $144,483          $236,774                  $43,780       $122,400       $33,867
</TABLE>





                                      23
<PAGE>   24



                                                                     Schedule IV
                    THE LIBERTY CORPORATION AND SUBSIDIARIES
                                  REINSURANCE
                  FOR THE THREE YEARS ENDED DECEMBER 31, 1997
                                  (In $000's)

<TABLE>
<CAPTION>
                                                                                                           Percentage of
                                                                Ceded to         Amount                       Amount
                                               Gross              Other       Assumed From         Net       Assumed to
                                               Amount          Companies       Companies         Amount         Net
                                            ----------------------------------------------------------------------------
  <S>                                       <C>               <C>             <C>             <C>             <C>
  Year ended December 31, 1997
  ----------------------------

  Life insurance in force                   $ 20,787,736      $ 3,698,912       $ 17,191      $ 17,106,015       0.1%
                                            ==============================================================

  Insurance premiums and policy charges:
    Life, annuity and other considerations  $    297,632      $    25,575       $    315      $    272,372       0.1%
    Accident and health                           86,378            8,616            558            78,320       0.7%
                                            --------------------------------------------------------------
      TOTAL                                 $    384,010      $    34,191       $    873      $    350,692
                                            ==============================================================

  Year ended December 31, 1996
  ----------------------------

  Life insurance in force                   $ 20,696,527      $ 4,087,097       $ 13,099      $ 16,622,529       0.1%
                                            ==============================================================

  Insurance premiums and policy charges:
    Life, annuity and other considerations  $    298,327      $    27,293       $    234      $    271,268       0.1%
    Accident and health                           58,333            9,205            975            50,103       1.9%
                                            --------------------------------------------------------------
      TOTAL                                 $    356,660      $    36,498       $  1,209      $    321,371
                                            ==============================================================

  Year ended December 31, 1995
  ----------------------------

  Life insurance in force                   $ 21,334,019      $ 4,554,569       $ 17,578      $ 16,797,028       0.1%
                                            ==============================================================

  Insurance premiums and policy charges:
    Life, annuity and other considerations  $    325,571      $    27,843       $    169      $    297,897       0.1%
    Accident and health                           39,226            6,898          1,145            33,473       3.4%
                                            --------------------------------------------------------------
      TOTAL                                 $    364,797      $    34,741       $  1,314      $    331,370
                                            ==============================================================
</TABLE>





                                      24
<PAGE>   25



                                                                      Schedule V
                    THE LIBERTY CORPORATION AND SUBSIDIARIES
                 VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
                  FOR THE THREE YEARS ENDED DECEMBER 31, 1997
                                   (In 000's)

<TABLE>
<CAPTION>
                                                               Additions
                                                      ---------------------------
                                        Balance at     Charged to     Charged to                             Balance at
                                        Beginning      Costs and         Other                                  End
  Deducted From Asset Accounts          of Period      Expenses        Accounts         Deductions           of Period
  ----------------------------          ----------    -----------     -----------     -------------        --------------
  <S>                                   <C>           <C>            <C>              <C>                  <C>
  Year Ended December 31, 1997


   Accounts receivable -                                                                        227(b)
      reserve for bad debts             $   2,310     $       429    $        ---     $       1,071(a)     $        1,441
                                        ---------     -----------    ------------     -------------        --------------
    Notes and other loans receivable -
      discounts                         $     ---     $       ---    $        ---     $         ---        $          ---
                                        ---------     -----------    ------------     -------------        --------------
    Investment properties -
      valuation reserves                $     ---     $       ---    $        ---     $         ---        $          ---
                                        ---------     -----------    ------------     -------------        --------------

  Year Ended December 31, 1996


   Accounts receivable -                                                                         20(b)
      reserve for bad debts             $   1,975     $       567    $        101     $         313(a)     $        2,310
                                        ---------     -----------    ------------     -------------        --------------
    Notes and other loans receivable -
      discounts                         $     ---     $       ---    $        ---     $         ---        $          ---
                                        ---------     -----------    ------------     -------------        --------------
    Investment properties -
      valuation reserves                $     ---     $       ---    $        ---     $         ---        $          ---
                                        ---------     -----------    ------------     -------------        --------------

  Year Ended December 31, 1995


   Accounts receivable -                                                                        334(b)
      reserve for bad debts             $   1,493     $       858    $         48     $          90(a)     $        1,975
                                        ---------     -----------    ------------     -------------        --------------
    Notes and other loans receivable -
      discounts                         $     ---     $       ---    $        ---     $         ---        $          ---
                                        ---------     -----------    ------------     -------------        --------------
    Investment properties -
      valuation reserves                $     ---     $       ---    $        ---     $         ---        $          ---
                                        ---------     -----------    ------------     -------------        --------------
</TABLE>

Notes:
  (a) Uncollectible accounts written off, net of recoveries.
  (b) Reversal of reserves no longer required.





                                      25
<PAGE>   26




                                   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 hereunto duly
       authorized, as of the 30th day of  March, 1998

THE LIBERTY CORPORATION                     By:   /s/  Hayne Hipp
-----------------------                          -------------------------
      Registrant                                       Hayne Hipp
                                                       President and Chief
                                                       Executive Officer

                 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 indicated, as of the 30th day of March,
1998.


<TABLE>
 <S>                                                      <C>
 By:    /s/ Ken W. Jones                                  *By:     /s/ Buck Mickel
        -----------------                                          ---------------
        Ken W. Jones                                               Buck Mickel
        Corporate Controller                                       Director

 *By:     /s/  Rufus C. Barkley, Jr.                      *By:     /s/ John H. Mullin III
         -----------------------------                             ----------------------
        Rufus C. Barkley, Jr.                                      John H. Mullin III
        Director                                                   Director

 *By:   /s/ Edward E. Crutchfield                         *By:     /s/ Benjamin F. Payton
        -------------------------                                  ----------------------
        Edward E. Crutchfield                                      Benjamin F. Payton
        Director                                                   Director

 *By:   /s/ John R. Farmer                                *By:     /s/ J. Thurston Roach
        ------------------                                         ---------------------
        John R. Farmer                                             J. Thurston Roach
        Director                                                   Director

 By:    /s/ Hayne Hipp                                    *By:     /s/ Eugene E. Stone, IV
        --------------                                             -----------------------
        Hayne Hipp                                                 Eugene E. Stone, IV
        Director                                                   Director

 *By:   /s/ W. W. Johnson                                 *By:     /s/ William B. Timmerman
        -----------------                                          ------------------------
        W. W. Johnson                                              William B. Timmerman
        Director                                                   Director

 *By:   /s/ William O. McCoy                              *By:     /s/ Martha G. Williams
        --------------------                                       ----------------------
        William O. McCoy                                           *Martha G. Williams, as
        Director                                                   Special Attorney in Fact
</TABLE>





                                       26
<PAGE>   27





                          Annual Report on Form 10-K


                           The Liberty Corporation


                              December 31, 1997



                              Index to Exhibits

<TABLE>
<CAPTION>
               Exhibits                                                                                         Page Number
             ------------                                                                                      -------------
 <S>         <C>                                                                                               <C>
 11.         The Liberty Corporation and Subsidiaries Consolidated Earnings Per Share                                 56
                 Computation (incorporated herein by reference to Note 11 of the "Notes to
                 Consolidated Financial Statements" on page 22 of The Liberty Corporation
                 Annual Report to Shareholders for the year ended December 31, 1997).

 13.         Portions of The Liberty Corporation Annual Report to Shareholders for the year
                 ended December 31, 1997:

             Market for the Registrant's Common Stock and Related Security Stockholder                                28
                 Matters
             Selected Financial Data                                                                                  29
             Management's Discussion and Analysis of Financial Condition and Results of                            30-39
                 Operations
             Financial Statements and Supplementary Information:
               Consolidated Balance Sheets - December 31, 1997 and 1996                                            40-41
               Consolidated Statements of Income - For the three years ended December 31, 1997                        42
               Consolidated Statements of Cash Flows - For the three years ended December 31,                         43
                 1997
               Consolidated Shareholders' Equity - For the three years ended December 31, 1997                        44
               Notes to Consolidated Financial Statements - December 31, 1997                                      45-61
               Report of Independent Auditors                                                                         62

 21.         The Liberty Corporation and Subsidiaries, List of Significant Subsidiaries                               63

 23.         Consent of Independent Auditors                                                                          64

 24.         Powers of Attorney applicable for certain signatures of members of the Board of
             Directors in Registrant's 10-K filed for the year ended December 31, 1997.                               65

 27.         Financial Data Schedule (for SEC use only).
</TABLE>





                                      27