<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                    FORM 10-K

(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934
    For the fiscal year ended December 31, 1999

         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>
<CAPTION>
                                                                       Name of Each Exchange on Which
                            Title of Each Class                                  Registered
--------------------------------------------------------------------   ------------------------------
<S>                                                                    <C>
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 15, 2000:

         Common Stock, No Par Value                   $654,814,937.

The number of shares outstanding of each of Registrant's classes of common stock
as of March 15, 2000:

         Common Stock, No Par Value                      19,366,061

DOCUMENTS INCORPORATED BY REFERENCE

     Portions of The Liberty Corporation Annual Report to Shareholders for the
year ended December 31, 1999 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 2, 2000 are incorporated into Part III, Items 10, 11, 12,
and 13 by reference.

    This report is comprised of pages 1 through 74. The exhibit index is on page
34.


<PAGE>   2

                                     PART I

ITEM 1.       BUSINESS

GENERAL

     The Registrant, The Liberty Corporation ("Liberty" or "the Company") is a
holding company incorporated under the laws of the state of South Carolina with
broad powers to engage in business. Currently the Company's subsidiaries are
operating in the television broadcasting, life insurance, and life insurance
policy administration businesses. The Company's principal executive offices are
in Greenville, South Carolina.

     The Company's broadcasting subsidiary, Cosmos Broadcasting Corporation,
("Cosmos") consists of twelve network-affiliated stations principally located in
the Southeast and Midwest, and a cable advertising company. The Company markets
insurance products through Liberty Life Insurance Company ("Liberty Life"),
which was founded in 1905. Additionally, through Liberty Insurance Services
Corporation ("LIS"), the Company is one of the nation's largest life insurance
third-party administrators.

     Additional information concerning Liberty's subsidiaries and divisions is
included in "Management's Discussion and Analysis" in the Company's 1999 Annual
Report to Shareholders, which is incorporated herein by reference.

RECENT DEVELOPMENTS

    In February 1999, the Company announced that it was considering a variety of
restructuring alternatives that would more actively support the business
objectives of its operating subsidiaries and enhance value for shareholders. The
Company is currently seeking a restructure alternative that best suits Liberty's
unique business mix. Recent deregulation both in the financial and broadcasting
industries have encouraged the Company to broaden its search for the optimal
solution.

     On November 3, 1999 the Company announced that it had reached a definitive
agreement to acquire KCBD-TV, the NBC affiliate in Lubbock, Texas in a cash
transaction for $59.8 million. The Company completed this transaction in
February of 2000. The purchase was funded with borrowings from the Company's
credit facility.

     During the third quarter of 1999 the Company settled an outstanding lawsuit
it had brought against a software development company in 1996. The gain from the
settlement of the lawsuit was partially offset by one-time costs related to the
implementation by Liberty Life's Agency division of its Agency 2000 initiative.
As part of this initiative the Company consolidated a number of field offices,
made strategic reductions in its sales management group, and began lowering
agent counts in certain markets. The net impact of the litigation settlement and
the one-time Agency costs on operating earnings was an after-tax $4.5 million
gain.

     On May 25, 1999 ("the redemption date") the Company completed the
redemption of all of the outstanding shares of its 1994-A Series voting
cumulative preferred stock, and its 1994-B Series voting cumulative preferred
stock. Shares were to be redeemed at $35.00 per share and $37.50 per share for
the 1994-A and 1994-B preferred stock, respectively, plus accrued interest from
April 1, 1999 through the redemption date. Prior to the redemption date, all
shares of the 1994-A Series were converted into common stock, and all but 8,170
shares of the 1994-B Series were converted into common stock.

     During 1998, the Company completed the acquisition of three television
stations. In July 1998, the Company completed the acquisition of WALB
television, a NBC affiliate, located in Albany, Georgia for a cash purchase
price of $78.6 million. In November 1998, the Company completed the acquisition
of KGBT television, a CBS affiliate, located in Harlingen, Texas for a cash
purchase price of $42.9 million. In December 1998, the Company completed the
acquisition of WWAY television, an ABC affiliate, located in Wilmington, North
Carolina for a cash purchase price of $35.4 million. Funds for the acquisitions
were obtained from the Company's credit facility.

    On April 8, 1998, the Company completed the sale of Pierce National Life
Insurance Company ("Pierce") to Fortis, Inc. The Company received cash totaling
approximately $139 million at closing. On December 31, 1997, Fortis, Inc. had
purchased 2,660 newly issued shares of Pierce common stock for $37.2 million in
cash. Subsequent to this stock purchase,



                                       2
<PAGE>   3

Fortis, Inc. maintained a twenty-one percent ownership interest in the common
stock of Pierce through the completion of the sale. LIS continues to administer
the Pierce block of business and also began to provide similar administrative
services to another subsidiary of Fortis, Inc. during 1998.

     In March 1998, the Company completed a tender offer program to repurchased
2,400,000 shares of its common stock at $52 per share. In addition, the Company
repurchased 138,000 shares in the open market during 1998. The stock repurchases
were funded with borrowings from Company's credit facility.

     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.


                                       3
<PAGE>   4

TELEVISION BROADCASTING AND RELATED OPERATIONS



The following table shows data on the stations owned by us as of March 15, 2000:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                 NETWORK            PERCENTAGE
                                                                 CONTRACT             OF U.S.
                                  MARKET              NETWORK   EXPIRATION STATION  TELEVISION    DATE     DATE
  MARKET               STATION    RANK(1)  CHANNEL  AFFILIATION   (2)      RANK(3) HOUSEHOLDS(4) FORMED  ACQUIRED
-----------------------------------------------------------------------------------------------------------------
<S>                    <C>            <C>       <C>      <C>        <C>       <C>      <C>        <C>      <C>
Louisville, KY         WAVE-TV         48       3        NBC        2004      2        0.58%      1948     1981
Toledo, OH             WTOL-TV         66       11       CBS        2003      1        0.41       1958     1965
Columbia, SC           WIS-TV          86       10       NBC        2004      1        0.32       1953     1953
Evansville, IN         WFIE-TV         96       14       NBC        2004      1        0.28       1953     1981
Harlingen, TX          KGBT-TV        102       4        CBS        2003      3        0.25       1955     1998
Montgomery, AL         WSFA-TV        113       12       NBC        2004      1        0.23       1959     1959
Lubbock, TX            KCBD-TV        117       11       NBC        2006      1        0.15       1953     2000
Albany, GA             WALB-TV        148       10       NBC        2002      1        0.14       1954     1998
Wilmington, NC         WWAY-TV        152       3        ABC        2005      2        0.14       1964     1998
Biloxi, MS             WLOX-TV        158       13       ABC        2004      1        0.12       1962     1995
Jonesboro, AK          KAIT-TV        178       8        ABC        2004      1        0.08       1963     1986
Lake Charles, LA       KPLC-TV        179       7        NBC        2004      1        0.08       1954     1986
</TABLE>

(1)  Market rank is based on the relative size of the designated market areas
     among the 211 generally recognized designated market areas in the U.S.,
     based on Nielsen estimates for the 1998-99 season.
(2)  Contracts may be subject to renewal provisions that effectively extend the
     expiration date.
(3)  Station rank in its market area based on Nielsen November 1999 ratings
     (from sign-on to sign-off).
(4)  Based on Nielsen estimates for the 1998-1999 season.

     Cosmos is a broadcasting company that currently owns and operates twelve
network-affiliated television stations in the Southeast and Midwest, eleven of
which were ranked No. 1 or No. 2 in their markets by the May 1999 Nielsen
ratings from sign-on to sign-off. Seven of its stations are affiliated with NBC,
three with ABC, and two with CBS. The twelve stations cover approximately 2.78%
of U.S. households.

     All of the Company's stations are located in geographically diverse and
growing markets. Eleven of the twelve stations are located in university
centers.

     Many of the stations are also located in markets that are home to a mixture
of large manufacturing plants, state capitals, transportation hubs and United
States military bases.

     o    Harlingen-McAllen-Brownsville, in the Rio Grande Valley area of Texas,
          is the second largest growing region in the state and is the focal
          point of the NAFTA trade agreement.

     o    The Biloxi-Gulfport, Mississippi area includes a major gulfport
          facility and is the third most visited gaming site after Las Vegas and
          Atlantic City.

     o    Louisville, Kentucky is home to the largest GE appliance plant in the
          world.

     o    Evansville, Indiana is the site of a new Toyota truck plant and new
          A.K. plant.



                                       4
<PAGE>   5

     o    Toledo, Ohio is developing into a mid-west transportation hub, which
          includes the Great Lake port facility.

     o    Jonesboro, Arkansas is projected to be Arkansas' second largest city
          by 2005.

     o    Lake Charles, Louisiana is one of two cities that has experienced the
          fastest economic growth in Louisiana.

     o    Wilmington, North Carolina was ranked as the second fastest growing
          metro area in the United States during 1997 and 1998.

     o    Columbia, South Carolina; Montgomery, Alabama; and Albany, Georgia are
          all home to military bases, commands or training centers.

     The twelve stations operate in designated market areas ranked 48 to 179.
None of the TV markets represented more than 15% of the revenues or 16% of
broadcast cash flow for the fiscal year ending December 31, 1999. The Company
believes that it generates one of the best broadcast cash flow per households
covered ratios of any broadcast group in the industry. It also believes that
nine of the twelve stations generate substantially greater broadcast cash flow
and earnings than the average station of comparable market size.

     The Company also operates a cable advertising company, CableVantage Inc.
and a direct-mail coupon company, SuperCoups USA. Through CableVantage, it
represents seven independent cable operators that, in combination, reach over
$430,000 subscribers. Through SuperCoups USA the Company has acquired the
direct-mail franchise rights to a number of southeastern cities.

NETWORK AFFILIATIONS

     Each of the stations is affiliated with a major network. The affiliation
contracts provide that the network will offer to the affiliated station a
variety of network programs, for which the station has the right of first
refusal against any other television station located in its community. The
network typically retains the rights to sell a substantial majority of the
advertising time during such broadcasts. For airing network programming the
network pays the stations according to terms in its network affiliation
contract. This is called network compensation. The major networks typically
provide programming for approximately 90 hours of the average 135 hours per week
broadcast by their affiliated stations.

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

     Each network has the right to terminate its affiliation agreement in the
event of a material breach of such agreement by a station and in certain other
circumstances. Although the Company does not expect that its network affiliation
agreements will be terminated and expects to continue to be able to renew its
network affiliation agreements, it cannot offer assurance that such agreements
will not be terminated or that renewals will be obtained on as favorable terms
or at all.

     All of the twelve stations have long-term affiliation agreements, the
earliest of which is not due to expire until January 1, 2002. During 1999 the
Company renegotiated its CBS affiliation agreements, which were due to expire on
December 31, 1999.

SOURCES OF 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, 1999:

----------------------------------------------------------------------
                                       1999      1998        1997

Local and regional advertising           58%       56%         62%
National spot advertising                32        28          29
Network compensation                      7         7           8
Political advertising                     3         9           1
----------------------------------------------------------------------


                                       5
<PAGE>   6

     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 the amount paid by the network to its affiliated
stations for broadcasting network programs. Political advertising is generated
by national and local elections, which can vary greatly from both market to
market and year to year.

     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 those homes is based on the 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. Because television stations rely on advertising revenues, they are
sensitive to cyclical changes in the national and local economy. The size of
advertisers' budgets, which are affected by broad economic trends, affect the
broadcast industry in general. The strength of the local economy in each
station's market also significantly impacts revenues. The advertising revenues
of the stations are generally highest in the second and fourth quarters of each
year, due in part to increases in consumer advertising in the spring and retail
advertising in the period leading up to and including the holiday season.
Additionally, advertising revenues in even-numbered years can benefit from
demand for advertising time in Olympic broadcasts and advertising placed by
candidates for political offices. A station's local market strength is the
primary factor that buyers use when placing political advertising. From time to
time, proposals have been advanced in Congress to require television broadcast
stations to provide some advertising time to political candidates at no charge,
which would potentially reduce advertising revenues from political candidates.

     Cosmos also has ancillary operations in cable advertising sales, a video
production company, and a direct mail coupon company. Revenues from these
operations amount to $14.3 million, $10.4 million and $7.5 million for calendar
years 1999, 1998 and 1997, respectively. The cable advertising sales are
generated by CableVantage Inc., a marketing company designed to assist local
cable operators in the sale of commercial time available in cable network
programs. CableVantage was formed in 1994 to create business opportunities with
cable operators and build revenues from programs and services specifically
produced for cable.


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.

     The stations compete for television viewers against other local network
affiliated and independent stations, as well as against cable and alternate
methods of television transmission. The primary basis of this competition is
program popularity. A majority of daily programming is supplied by the network
with which each station is affiliated. In time periods in which the network
provides programming, stations are primarily dependent upon the performance of
the network programs in attracting viewers. Stations compete in non-network time
periods based on the performance of its programming during such time periods,
using a combination of self-produced news, public affairs and other
entertainment programming, including syndicated programs, that the station
believes will be attractive to viewers. The Company believes that the stations
have strong competitive positions in their local markets, enabling them to
deliver a high percentage of the local television audience to advertisers. The
Company's commitment to local news programming is an important element in
maintaining its current market positions.

     The competition includes 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. Other
sources of competition include home entertainment systems (including video
cassette recorder and playback systems, videodiscs and television game devices),
the Internet, multichannel multipoint distribution systems, wireless cable,
satellite master antenna television systems and some low power in-home satellite
services. Stations also face competition from high-powered direct broadcast



                                       6
<PAGE>   7

satellite services, such as PrimeStar and DIRECTV, which transmit programming
directly to homes equipped with special receiving antennas. Stations compete
with these services both on the basis of service and product performance
(quality of reception and number of channels that may be offered) and price (the
relative cost to utilize these systems compared to broadcast television
viewing).

     Further advances in technology and further consolidation in the broadcast
industry may increase competition for household audiences and advertisers. Video
compression techniques, now in use with direct broadcast satellites and in
development for cable and wireless cable, are expected to permit greater numbers
of channels to be carried within existing bandwidth. These technological
developments, which are applicable to all video delivery systems including
over-the-air broadcasting, have the potential to allow additional programming to
highly targeted audiences. The ability to reach narrowly defined audiences may
further fragment viewers and influence advertising spending. The television
broadcasting industry is continually faced with such technological change and
innovation. The Company is unable to predict the effect that technological
changes will have on the broadcast television industry in general, or more
specifically to its own operations. Consolidation in the broadcast television
industry introduces new, large competitors. Many of the current and potential
competitors have greater financial, marketing, programming and broadcasting
resources than us. The Company plans to meet the challenge of a consolidating
industry by continuing its growth strategy and pursuing new synergistic
opportunities.

MANDATED CONVERSION TO DIGITAL TECHNOLOGY

     In accordance with FCC regulations, all station affiliates of ABC, CBS and
NBC in the top ten designated market areas were required to transmit a digital
signal by May 1, 1999. Affiliates of those networks in designated market areas
ranked eleven through thirty were required to transmit a digital signal by
November 1, 1999. All remaining commercial broadcasters will be required to
transmit a digital signal by May 1, 2002. The Company is not actively seeking to
be the first in its markets to offer digital television, but rather the Company
intends to benefit from the learning of early adapters and to take advantage of
lower equipment costs later in the process. It intends to choose the digital
technology format that best combines quality for consumers with feasible
business applications.

      As it develops the digital technology, given its dominant presence in its
markets, the Company believes it will be attractively positioned as a potential
partner for new digital or data stream businesses that wish to develop in its
markets. The Company has thus far invested $1.0 million in preparation for the
transition to digital television, and estimates that an additional $25 to $35
million may be required over the next three years for towers, antenna systems,
transmitters, and transmitter buildings. This investment will establish basic
digital television pass through at our twelve stations, including simulcasting
existing analog programming. It is anticipated that an additional $10 million
above normal recurring capital expenditures will be spent over the next six
years to enable the existing twelve stations to convert their news gathering,
news production, and other programming equipment to full digital.

Federal Regulation of Broadcasting

     The following is a brief discussion of certain provisions of the
Communications Act of 1934, as amended (the "Communications Act"), and of FCC
regulations and policies that affect the business operations of Cosmos.
Reference should be made to the Communications Act, FCC rules and the public
notices and rulings of the FCC, on which this discussion is based, for further
information concerning the nature and extent of FCC regulation of television
broadcasting stations.


                                       7
<PAGE>   8

     FCC REGULATION. The ownership, operation and sale of television stations,
are subject to the jurisdiction of the FCC by authority granted it under the
Communications Act. The FCC has the power to impose penalties, including fines
or license revocations, upon a licensee of a television station for violations
of the FCC's rules and regulations. Matters subject to FCC oversight include,
but are not limited to:

     o    the assignment of frequency bands of broadcast television;

     o    the approval of a television station's frequency, location and
          operating power;

     o    the issuance, renewal, revocation or modification of a television
          station's FCC license;

     o    the approval of changes in the ownership or control of a television
          station's licensee;

     o    the regulation of equipment used by television stations; and

     o    the adoption and implementation of regulations and policies concerning
          the ownership and operation of television stations.

     LICENSE RENEWAL, ASSIGNMENTS AND TRANSFERS. Television broadcast licenses
are granted for a maximum term of eight years (five years prior to 1996) and are
subject to renewal upon application to the FCC. The FCC prohibits the assignment
of a license or the transfer of control of a broadcasting licensee without prior
FCC approval. In determining whether to grant or renew a broadcasting license,
the FCC considers a number of factors pertaining to the applicant, including
compliance with a variety of ownership limitations and compliance with character
and technical standards. During certain limited periods when a renewal
application is pending, petitions to deny a license renewal may be filed by
interested parties, including members of the public. Such petitions may raise
various issues before the FCC. The FCC is required to hold evidentiary,
trial-type hearings on renewal applications if a petition to deny renewal of
such license raises a "substantial and material question of fact" as to whether
the grant of the renewal application would be inconsistent with public interest,
convenience and necessity. The FCC must grant the renewal application if, after
notice and opportunity for a hearing, it finds that the incumbent has served the
public interest and has not committed any serious violation of FCC requirements.
If the incumbent fails to meet that standard, and if it does not show other
mitigating factors warranting a lesser sanction, the FCC has authority to deny
the renewal application and consider a competing application.

     The renewal applications have always been granted without hearing for the
full term. To date the loosening of the ownership provisions, as well as the
other provisions included in the 1996 Act, have not had any significant direct
impact on the Company's operations.

     MULTIPLE AND CROSS-OWNERSHIP RULES. On a national level, the FCC rules
generally prevent an entity or individual from having an attributable interest
in television stations with an aggregate audience reach in excess of 35% of all
U.S. households. On a local level, the "duopoly" rule prohibits or restricts
attributable interests in two or more television stations with overlapping
service areas and the "one-to-a-market" rule restricts such interests in
television and radio stations serving the same market. The FCC has recently
relaxed the "duopoly" rule to allow broadcasters to own, under certain
circumstances, more than one television station in the same local area. The FCC
has also initiated rulemaking looking towards relaxation of the 35% aggregate
audience reach rule. Additional cross-ownership restrictions generally prohibit
broadcast/daily newspaper or television/cable combinations in the same market.

     The FCC generally applies its ownership limits only to "attributable"
interests held by an individual, corporation, partnership or other association.
In the case of corporations holding broadcast licenses, the interest of
officers, directors and those who, directly or indirectly, have the right to
vote 5% or more of the corporation's voting stock (or 10% or more of such stock
in the case of insurance companies, mutual funds, bank trust departments and
certain other passive investors that are holding stock for investment purposes
only) are generally deemed to be attributable, as are positions as an officer or
director of a corporate parent of a broadcast licensee. The FCC is considering
proposals to amend the ownership attribution rules including the general
"attributable interest" threshold to 10% of the outstanding voting stock of a
broadcast licensee and increasing the threshold for passive institutional
investors to 20%.

     The FCC recently relaxed its national television station multiple ownership
rules. Specifically, a single entity may hold "attributable interests" in an
unlimited number of U.S. television stations provided that those stations
operate in markets containing cumulatively no more than 35% of the television
homes in the U.S. For this purpose, only 50% of the television households in a
market are counted towards the 35% national restriction if the owned station is
a UHF station. An FCC rulemaking is under way to address how to measure audience
reach, including the "UHF discount," as part of the FCC's



                                       8
<PAGE>   9

biennial review of the broadcast rules mandated by the Telecom Act. The
television homes that the stations reach is well below the 35% national limit.

     Because of these multiple and cross-ownership rules, a purchaser of the
common stock who acquires an attributable interest in the Company may violate
the FCC's rules if that purchaser also has an attributable interest in other
television or radio stations, or in daily newspapers or cable systems, depending
on the number and location of those radio or television stations or daily
newspapers or cable systems. Such a purchaser also may be restricted in the
companies in which it may invest to the extent that those investments give rise
to an attributable interest. If an attributable stockholder of Cosmos violates
any of these ownership rules or if a proposed acquisition by Cosmos would cause
such a violation, Cosmos may be unable to obtain from the FCC one or more
authorizations needed to conduct its television station business and may be
unable to obtain FCC consents for certain future acquisitions.

     ALIEN OWNERSHIP. Under the Communications Act, broadcast licenses may not
be granted to or held by any corporation having more than one-fifth of its
capital stock owned of record or voted by non-U.S. citizens (including a
non-U.S. corporation), foreign governments or their representatives
(collectively, "Aliens") or having an Alien as an officer or director. The
Communications Act also prohibits a corporation, without an FCC public interest
finding, from holding a broadcast license if that corporation is controlled,
directly or indirectly, by another corporation, any officer of which is an
Alien, or more than one-fourth of the directors of which are Aliens, or more
than one-fourth of the capital stock of which is owned of record or voted by
Aliens, unless the FCC finds that such ownership would be in the public
interest. The FCC has issued interpretations of existing law under which these
restrictions in modified form apply to other forms of business organizations,
including general and limited partnerships. As a result of these provisions,
since the Company serves as a holding company for the various television station
licensee subsidiaries, it cannot have more than 25% of the capital stock owned
of record or voted by Aliens, cannot have an officer who is an Alien, and cannot
have more than one fourth of its Board of Directors consisting of Aliens

     RESTRICTIONS ON BROADCAST ADVERTISING. The advertising of cigarettes on
broadcast stations has been banned for many years. The broadcast advertising of
smokeless tobacco products has more recently been banned by Congress. Certain
Congressional committees have examined legislative proposals to eliminate or
severely restrict the advertising of beer and wine. The Company cannot predict
whether any or all of the present proposals will be enacted into law and, if so,
what the final form of such law might be. The elimination of all beer and wine
advertising could have a material adverse effect on the stations' revenues and
operating profits as well as the revenues and operating profits of other
stations that carry beer and wine advertising. In recent years, some television
stations have begun airing hard liquor advertising. In the past, this group of
advertisers had a self-imposed ban on TV advertising. None of the stations have
aired this type of advertising. The Company cannot predict the effect, if any,
that the airing of these advertisements on competing stations will have on the
operating results.

     The FCC has recently lifted its prohibition of broadcast advertising by
casinos in markets where the state does not have its own prohibition. The
Company has several stations in states where casino gambling is legal and no
such state prohibition exists.

     CABLE "MUST-CARRY" OR "RETRANSMISSION CONSENT" RIGHTS. The 1992 Cable Act,
enacted in October 1992, requires television broadcasters to make an election to
exercise either certain "must-carry" or "retransmission consent" rights in
connection with their carriage by cable television systems in the station's
local market. If a broadcaster chooses to exercise its must-carry rights, it may
demand carriage on a specified channel on cable systems within its designated
market area. Must-carry rights are not absolute, and their exercise is dependent
on variables such as the number of activated channels on, and the location and
size of, the cable system, and the amount of duplicative programming on a
broadcast station. Under certain circumstances, a cable system may decline to
carry a given station. If a broadcaster chooses to exercise its retransmission
consent rights, it may prohibit cable systems from carrying its signal, or
permit carriage under a negotiated compensation arrangement. Generally, the
stations have negotiated retransmission consent agreements with cable television
systems in their markets, with terms generally ranging from three to ten years,
which provide for carriage of the station's signal.

ADVANCED TELEVISION TECHNOLOGY.

At present, U.S. television stations broadcast signals using the "NTSC" system,
an analog transmission system named for the National Television Systems
Committee, an industry group established in 1940 to develop the first U.S.
television technical broadcast standards. The FCC in late 1996 approved a new
digital television ("DTV") technical standard to be used by



                                       9
<PAGE>   10

television broadcasters, television set manufacturers, the computer industry and
the motion picture industry. This DTV standard will allow the simultaneous
transmission of multiple streams of video programming and data on the bandwidth
presently used by a single normal analog channel.

     The FCC presently plans for the DTV transition period to end by 2006. At
that time, broadcasters will be required to discontinue analog operations and to
return their present channels to the FCC. The FCC has already begun issuing
construction permits to build DTV stations. The FCC has recently issued
regulations with respect to DTV allocations and interference criteria which are
not yet final, and other aspects of the DTV regulatory framework have not yet
been established. The FCC is expected to apply to DTV certain of the rules
applicable to analogous services in other contexts, including certain rules that
require broadcasters to serve the public interest and may seek to impose
additional programming or other requirements on DTV service. The Telecom Act
requires the FCC to impose fees upon broadcasters if they choose to use the DTV
channel to provide paid subscription services to the public. The FCC recently
determined that broadcasters should pay a fee of 5% of gross revenues received
for such subscription services should the broadcaster provide subscription
services on their DTV channels. The FCC has also recently initiated a rulemaking
proceeding to determine whether and to what extent cable systems will be
required to carry broadcast DTV signals.

     In some cases, conversion to DTV operations may reduce a station's
geographical coverage area. In addition, the FCC's current implementation plan
would maintain the secondary status of low-power stations in connection with its
allotment of DTV channels. The DTV channel allotment will result in displacement
of a substantial number of existing low-power stations, particularly in major
television markets. Accordingly, the low-power broadcast stations may be
materially adversely affected.


RECENT DEVELOPMENT, PROPOSED LEGISLATION AND REGULATION

       Congress and the FCC currently have under consideration, and may in the
future adopt, new laws, regulations and policies regarding a wide variety of
matters that could affect, directly or indirectly, the operation and ownership
of the Company's broadcast properties. In addition to the changes and proposed
changes noted above, these matters include, for example, additional spectrum use
fees, political advertising rates, potential restrictions on the advertising of
certain products like hard liquor, beer and wine, and revised rules and policies
governing equal employment opportunity. Other matters that could affect its
broadcast properties include technological innovations and development generally
affecting competition in the mass communications industry.

     The foregoing does not purport to be a complete summary of all the
provisions of the Communications Act, the Telecom Act, or of the regulations and
policies of the FCC under either act. Proposals for additional or revised
regulations and requirements are pending before and are being considered by
Congress and federal regulatory agencies from time to time. Management is unable
at this time to predict the outcome of any of the pending FCC rulemaking
proceedings referenced above, the outcome of any reconsideration or appellate
proceedings concerning any changes in FCC rules or policies noted above, the
possible outcome of any proposed or pending Congressional legislation, or the
impact of any of those changes on its broadcast operations.


                                       10
<PAGE>   11

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. In 1999, the
largest percentages of its premium income were from South Carolina (23%), North
Carolina (17%), and Louisiana (8%). The Company believes that Liberty Life's
Agency division is the largest provider of home service business in the
Carolinas and its LibertyDirect division is the second largest provider of
optional mortgage insurance in the life insurance industry.

     Life insurance and annuity premiums contributed 64% of Liberty Life's total
premiums in 1999, 67% in 1998, and 72% in 1997. Accident and health insurance
premiums contributed the remainder.

     AGENCY DIVISION. The Agency Division is Liberty Life's largest division,
contributing 53% of Liberty Life's premiums in 1999. Agents supporting this
division operate out of 40 district offices selling primarily individual life
insurance, including universal life and interest-sensitive whole life products,
as well as health insurance. Historically much of the activity of the agents in
this division (which was formerly referred to as Home Service) has focused on
periodically visiting homes to sell policies and collect premiums, hence the
name Home Service. Liberty Life's strategy in recent years has been to move
Agency from a traditional home service life insurance model to one that is
focused on being a competitive provider of financial security to the moderate
income market. In November 1997, Liberty completed the rollout of a hand-held,
pen-based computer (the "PriorityPad") to its entire Agency sales force. Loaded
on the PriorityPad is Liberty's proprietary needs assessment methodology, the
Priority Profile. This technology, combined with the Priority Profile
methodology, allows the agent to go through an interactive sales presentation
with the prospective customer. The PriorityPad also provides access to policy
rates, and interacts with the home office policy database to update records
necessary for the agent to better manage his or her customer base. Ultimately,
this technology may be used for application entry or to automate other
administrative processes.

      In the fall of 1998, Agency introduced a comprehensive set of processes
(known as "Agency of the Future") that focus on improving the ability of the
agents to serve the moderate income market, deliver better value to customers,
generate greater career opportunities for agents, and improve financial
performance. During 1999 the company continued the implementation of its "Agency
of the Future" reengineering efforts, now known as "Agency 2000". Throughout
this program Agency has continually sought to improve processes for serving its
customers and agents wile continuing to build a stronger, more competitive
market presence. As part of this initiative, a number of field sales offices
were consolidated, strategic reductions in the sales management group were made,
and agent counts in certain markets were lowered. It is anticipated that these
actions will result in a more productive and efficient field operation.

      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.

     LIBERTYDIRECT. The LibertyDirect division contributed 46% of Liberty Life's
premiums in 1999. Historically this division has primarily sold decreasing term
life, accident and disability insurance designed to fund the outstanding balance
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 and has relationships with 12 of the top 15 mortgage servicing firms. The
Company supports the marketing of these products through direct mail and phone
solicitations. In addition to products related to the mortgage insurance, 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. Until April, 1998 the Company provided life insurance sold
to pre-fund funerals through Pierce. As previously mentioned, the Company sold
Pierce in April, 1998. The decision to sell Pierce was based on an assessment
that Pierce would not be able to satisfactorily meet long term financial and
marketing goals.



                                       11
<PAGE>   12

     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.

(In 000's)                     1999          1998         1997
---------------------------------------------------------------------

 Liberty Life
   Agency                     $133,218      $133,796     $135,305
  LibertyDirect                116,016       119,483      102,995
  Other                          3,167         7,405        6,978
---------------------------------------------------------------------
     Total Liberty Life        252,401       260,684      245,278

 Pierce National                   ---        24,247      105,414
---------------------------------------------------------------------

 Total                        $252,401      $284,931     $350,692
---------------------------------------------------------------------

     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 LibertyDirect division is usually
written without medical examination.

     REINSURANCE. Liberty Life uses reinsurance as a risk management tool in the
normal course of business and, in isolated strategic transactions, to
effectively buy or sell blocks of in force business. The Company has ceded $3.2
billion (17%) of its $18.7 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, 1999, 1998, and 1997 Liberty had ceded
life insurance premiums of $28.3 million, $23.2 million, and $25.6 million,
respectively. Accident and health premiums ceded made up the remainder of ceded
premiums which were $9.9 million, $9.1 million, and $8.6 million for the years
ended December 31, 1999, 1998 and 1997, 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. 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 also has coverage for
catastrophic accidents. Liberty Life cedes, in the normal course of business,
portions of its risks to a number of other insurance companies.


                                       12
<PAGE>   13

     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, 1999 was $2.1
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 assets equal to
the reserves reinsured, as determined under statutory accounting principles, be
held in escrow for the benefit of this block of business.

     OPERATIONS. The administrative functions of underwriting and issuing new
policies, and the ongoing servicing and claims settlement of in force policies,
are provided by an affiliate, Liberty Insurance Services Corporation, at the
home office in Greenville, South Carolina. The Company's strategy is to allow
LIS to manage the administrative functions of its operations in order to take
advantage of the expertise that LIS has developed to provide administrative
services to the life insurance industry. LIS provides administrative support
services for Liberty's approximately 2.0 million policies representing $18.8
billion of life insurance in force. The Company intends to continue its focus on
reducing the unit costs of administrative services by increasing the volume of
business through internal growth in those businesses, potentially through
acquisitions of blocks of business similar in nature to its existing business,
and by investing in technology to further improve efficiency in its operations.

     EMPLOYEES. At December 31, 1999 Liberty Life had approximately 870
employees. Approximately 630 of the employees are agents whose primary source of
compensation is commissions on products sold, with the majority of the agents
working for Liberty Life's Agency division.

     INSURANCE COMPETITION AND RATINGS. Liberty Life competes with numerous
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 Liberty Life for sales of life
insurance products, and Liberty Life competes 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. While Liberty is de-emphasizing the home collection
of premiums, Liberty believes it is important for agents to continue to meet
with their customers regularly in order to adequately serve their insurance
needs.

     The Company currently believes that it ranks second nationally in optional
mortgage insurance (provided through its LibertyDirect division) with an
estimated 24% market share. 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). Liberty Life's current A.M. Best rating is "A" (Excellent).
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 rating be
downgraded, sales of their products and persistency of the existing 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.



                                       13
<PAGE>   14

     INSURANCE REGULATION. Like other insurance companies, Liberty Life is
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 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
accounting principles generally accepted in the United States. 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 Liberty Life's surplus nor its 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 Liberty Life indicate that Liberty Life's capital significantly
exceeds the minimum capital requirements at December 31, 1999.

     Another NAIC Model Act limits dividends that may be paid in any calendar
year without regulatory approval to the lesser of 10% of the insurer's statutory
surplus at the prior year-end, or the statutory net gain from operations of the
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 2000 by
Liberty Life without approval from the South Carolina Insurance Commissioner is
$24.6 million. Actual dividends and distributions paid by Liberty Life were
$22.0 million in both 1999 and 1998 and $21.0 million in 1997. 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



                                       14
<PAGE>   15

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.

     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. The most recent examination of
Liberty Life, for the three years ended December 31, 1994 has been completed,
and the report issued did not indicate any significant areas of concern.

     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 is 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.


                                       15
<PAGE>   16

INSURANCE OPERATIONS - LIBERTY INSURANCE SERVICES CORPORATION

     LIS provides a wide range of administrative support services, on a fee
basis, to unaffiliated life and health insurance companies as well as for the
Company's insurance subsidiaries. These services include underwriting, issuance
of policies, accounting, customer service and claims processing and
adjudication. The services are tailored to support the special features of
insurance products offered by the companies that desire these services. In
addition LIS offers consulting services related to acquisition integration and
planning. LIS believes that its offers services that will permit its customers
to reduce their home office support costs and focus resources on marketing their
insurance products.

     In marketing to unaffiliated life and health insurance companies the
Company's strategy is to target three potential markets:

     o    Insurance companies acquired by financial investors that either do not
          want to manage the back office administrative functions or lack
          experience in providing the required support.

     o    Insurance companies that have closed blocks of business that are
          expensive to administer or are not core to their businesses.

     o    Insurance companies that prefer to focus management resources on
          marketing

     At December 31, 1999, LIS had approximately 4.5 million policies under
management. Approximately 2.0 million of those policies are administered for
Liberty Life, with the remaining administered for five unaffiliated clients.

     COMPETITION. Outsourcing, or third party administration of insurance
administrative support services, is a relatively new and emerging business. Most
of LIS's competition for business opportunities is from vendors whose primary
business is in insurance systems and software. LIS believes it can successfully
compete with these companies because of its focus on the core business process
of insurance administration and its experience and proven ability to provide a
full range of insurance administrative services.

     EMPLOYEES. At December 31, 1999, LIS had approximately 630 employees.
Substantially all of the employees are located at LIS headquarters in
Greenville, South Carolina.


                                       16
<PAGE>   17

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 60
   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 September, 1989 to December 31,
   1997

ROBERT E. EVANS, Age 45
   President of Liberty Life since March, 1999
   Managing Director, Insurance Services of Fleet Financial Group from 1995 to
   December 1998
   Senior Vice President, Travelers Life and Annuity Business, Travelers
   Insurance Co. from 1993 to 1995
   Vice President, Travelers Insurance Co. from 1986 to 1993

JENNIE M. JOHNSON, Age 52
   President of Liberty Insurance Services Corporation since May, 1997
   President of Pierce National Life Insurance Company from August, 1995 to
   April 1998
   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 42
   Corporate Controller of Liberty since May, 1997
   Treasurer of Liberty Life since May, 1997
   Assistant Controller of Liberty from September, 1994 to May, 1997

JAMES M. KEELOR, Age 57
   President of Cosmos since February, 1992
   Vice President, Operations, of Cosmos from December, 1989 to February, 1992

MARTHA G. WILLIAMS, Age 57
   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


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 the
Notes to the Consolidated Financial Statements beginning on pages 24-27 of The
Liberty Corporation Annual Report to Shareholders and is filed as Exhibit 13 on
pages 68-71 of this report and is incorporated in this Item 1 by reference.


                                       17
<PAGE>   18

ITEM 2.       PROPERTIES

     MAIN OFFICES. The main office of the Company, Liberty Life, Liberty
Insurance Services Corporation, 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; Biloxi, MS; Albany, GA;
Harlingen; TX, Lubbock TX, and Wilmington, NC.


ITEM 3.       LEGAL PROCEEDINGS

         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.

ITEM 4.       SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

     None.



                                       18
<PAGE>   19

                                     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 35
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 30 of The
Liberty Corporation Annual Report to Shareholders and is filed as Exhibit 13 on
page 36 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 31-40 of The Liberty Corporation Annual Report
to Shareholders and is filed as Exhibit 13 on pages 40-48 of this report and is
incorporated in this Item 7 by reference.


ITEM 7A.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Information related to quantitative and qualitative disclosures about
market risk is contained on pages 37-38 of The Liberty Corporation Annual Report
to Shareholders and is included in Exhibit 13 on pages 43-44 of this report and
is incorporated in this Item 7A by reference.


ITEM 8.       FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

     The Company's Consolidated Financial Statements and Report of Independent
Auditors are contained on pages 5-29 of The Liberty Corporation Annual Report to
Shareholders and is filed as Exhibit 13 on pages 47-73 of this report and are
incorporated in this Item 8 by reference. Quarterly Results of Operations are
contained on page 22 of The Liberty Corporation Annual Report to Shareholders
and is included in Exhibit 13 on page 66 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.



                                       19
<PAGE>   20

                                    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 2, 2000 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 17 and is incorporated
in this Item 10 by reference.


ITEM 11.      EXECUTIVE COMPENSATION

     Information concerning Executive Compensation and transactions is contained
in The Liberty Corporation Proxy Statement for the May 2, 2000 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
2, 2000 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 2, 2000 Annual
Meeting of Shareholders and is incorporated in this Item 13 by reference.



                                       20
<PAGE>   21

                                     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, 1999, filed as Exhibit 13 to this report and
incorporated in Item 8 by reference:

         Consolidated Statements of Income - For the three years ended December
         31, 1999
         Consolidated Balance Sheets - December 31, 1999 and 1998
         Consolidated Statements of Cash Flows - For the three years ended
         December 31, 1999
         Consolidated Statements of Shareholders' Equity - For the three years
         ended December 31, 1999
         Notes to Consolidated Financial Statements - December 31, 1999
         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.


                                       21
<PAGE>   22

(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 August 3, 1999, filed as Exhibit 3.2 to the
          Registrant's Form 10-Q for the quarter ended June 30, 1999, and
          incorporated herein by reference.

     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 May 1, 1998 (filed as Exhibit 10 to the
          Registrant's Quarterly Report on Form 10Q for the quarter ended March
          31, 1998 and incorporated herein by reference).

     10.1 See Credit Agreement dated May 1, 1998 (filed as Exhibit 4.3).

     10.2 The Liberty Corporation Performance Incentive Compensation Program, as
          amended and restated on November 2, 1999, filed as Exhibit 10.2 to the
          Registrant's Form 10-Q for the quarter ended September 30, 1999, 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 pages 19-20 of The
          Liberty Corporation Annual Report to Shareholders for the year ended
          December 31, 1999) filed on page 63 of this report.

     13.  Portions of The Liberty Corporation Annual Report to Shareholders for
          the year ended December 31, 1999:
          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 Statements of Income - For the three years ended
            December 31, 1999
            Consolidated Balance Sheets - December 31, 1999 and 1998
            Consolidated Statements of Cash Flows - For the three years ended
            December 31, 1999
            Consolidated Statements of Shareholders' Equity - For the three
            years ended December 31, 1999
          Notes to Consolidated Financial Statements - December 31, 1999
          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 years ended
          December 31, 1983, 1985, 1989, 1994, 1995, 1996, 1997 and 1998.

     27.  Financial Data Schedule (Electronic Filing Only)


(b).      REPORTS ON FORM 8-K



                                       22
<PAGE>   23

          There were no reports on Form 8-K filed after September 30, 1999.


(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 pages 19-20 of The
          Liberty Corporation Annual Report to Shareholders for the year ended
          December 31, 1999) filed on page 62 of this report.

     13.  Portions of The Liberty Corporation Annual Report to Shareholders for
          the year ended December 31, 1999:
          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 Statements of Income - For the three years ended
            December 31, 1999
            Consolidated Balance Sheets - December 31, 1999 and 1998
            Consolidated Statements of Cash Flows - For the three years ended
            December 31, 1999
            Consolidated Statements of Shareholders' Equity - For the three
            years ended December 31, 1999
          Notes to Consolidated Financial Statements - December 31, 1999
          Report of Independent Auditors

     21.  The Liberty Corporation and Subsidiaries, List of Subsidiaries

     23.  Consent of Independent Auditors

     27.  Financial Data Schedule (Electronic Filing Only)


                                       23
<PAGE>   24

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


              I-    Summary of Investments - December 31, 1999
              II-   Condensed Financial Statements of The Liberty Corporation
                    (Parent Company) December 31, 1999 and 1998
              III-  Supplementary Insurance Information - For the Three Years
                    Ended December 31, 1999
              IV-   Reinsurance - For the Three Years Ended December 31, 1999
              V-    Valuation and Qualifying Accounts and Reserves - For the
                    Three Years Ended December 31, 1999


                                       24
<PAGE>   25

                                                                      Schedule I

                    THE LIBERTY CORPORATION AND SUBSIDIARIES
                             SUMMARY OF INVESTMENTS
                                DECEMBER 31, 1999
                                   (In 000's)

<TABLE>
<CAPTION>
                                                                                                            Amount at
                                                                                                           Which Shown
                                                                                                            on Balance
                      Type of Investment                             Cost                 Value                Sheet
---------------------------------------------------------------------------------   ------------------   ------------------
<S>                                                                   <C>                 <C>                  <C>

Fixed maturity securities, available for sale Bonds:
     United States Government and government agencies and
       authorities                                                    $92,665             $93,598              $93,598
     States, municipalities, and political subdivisions                   ---                 ---                  ---
     Foreign governments                                                  ---                 ---                  ---
     Foreign corporate and other                                       33,694              32,334               32,334
     Public utilities                                                  87,484              88,927               88,927
     Convertibles and bonds with warrants attached                        ---                 ---                  ---
     All other corporate bonds                                        643,613             610,944              610,944
   Redeemable preferred stocks                                         33,443              33,493               33,493
                                                               ------------------   ------------------   ------------------
   Total                                                              890,899             859,296              859,296
                                                               ==================   ==================   ==================

Equity securities, available for sale Common stocks:
     Public utilities                                                     ---                                      ---
     Banks, trusts and insurance companies                             $6,644              $9,011               $9,011
     Foreign other                                                        626                 719                  719
     Industrial, miscellaneous, and all other                          47,938              64,542               64,542
   Nonredeemable preferred stocks                                       6,524               7,018                7,018
                                                               ------------------   ------------------   ------------------
   Total                                                              $61,732             $81,290              $81,290
                                                               ==================   ==================   ==================


Mortgage loans on real estate                                         230,497                                   230,497
Investment real estate                                                 25,692                                    25,692
Policy loans                                                           91,964                                    91,964
Other long-term investments                                            20,680                                    20,680
Short-term investments                                                  1,930                                     1,930
                                                               ------------------                        ------------------

Total investments                                                  $1,323,394                                $1,311,349
                                                               ==================                        ==================
</TABLE>


                                       25
<PAGE>   26

                                                                     Schedule II

                    THE LIBERTY CORPORATION (PARENT COMPANY)
                            CONDENSED BALANCE SHEETS
                           DECEMBER 31, 1999 and 1998
                         (In $000's, except share data)

<TABLE>
<CAPTION>
              ASSETS                                            1999              1998
              ------                                          ---------         ---------
<S>                                                           <C>               <C>

Cash                                                          $   5,816         $   4,062
Fixed maturity securities                                           639             3,386
Equity securities                                                 3,638            13,408
Loans, notes and other receivables                                6,903             9,202
Investment properties, at cost less
    accumulated depreciation of
    $2,602 in 1999 and $1,495 in 1998                            25,690            19,218
Other long-term investments                                       7,116             7,037
Buildings and equipment, at cost less
    accumulated depreciation of
    $17,572 in 1999 and $15,813 in 1998                          14,683            16,150
Investment in affiliated companies*                             511,345           524,223
Intercompany debt and advances*                                 211,730           236,816
Income taxes recoverable                                         16,875             9,719
Deferred income tax benefits (liabilities)                       (1,605)           (3,020)
Other assets                                                      2,917             7,053
                                                              ---------         ---------

      Total Assets                                            $ 805,747         $ 847,254
                                                              =========         =========

LIABILITIES, REDEEMABLE PREFERRED
      STOCK AND SHAREHOLDERS' EQUITY

Liabilities:
  Notes, mortgages and other debt                             $ 234,000         $ 283,000
  Accounts payable and accrued expenses                          15,952            12,334
  Other liabilities                                                 719               595
                                                              ---------         ---------
      Total Liabilities                                         250,671           295,929

Redeemable Preferred Stock:
  1994-A Series, $35.00 redemption value, -0-
     and 198,259 shares issued and outstanding
     in 1999 and 1998, respectively                                  --             6,939
  1994-B Series, $37.50 redemption value, -0-
     and 374,509 shares issued and outstanding
     in 1999 and 1998, respectively                                  --            14,028
                                                              ---------         ---------
      Total Redeemable Preferred Stock                               --            20,967

Shareholders' Equity:
  Common stock
    Authorized - 50,000,000 shares, no par value
       Issued and outstanding - 19,507,551 in 1999
          and 18,684,172 in 1998                                100,111            70,565
  Convertible Preferred Stock, 1995-A Series, 429,485
     and 599,985 shares issued and outstanding in 1999
     and 1998, respectively                                      15,032            20,999
  Unearned stock compensation                                    (5,056)           (7,596)
  Accumulated other comprehensive income                         (1,191)           26,749
  Retained earnings                                             446,180           419,641
                                                              ---------         ---------
      Total Shareholders' Equity                                555,076           530,358
                                                              ---------         ---------

      Total Liabilities, Redeemable Preferred Stock
         and Shareholders' Equity                             $ 805,747         $ 847,254
                                                              =========         =========
</TABLE>

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



                                       26
<PAGE>   27

                                                                     Schedule II

                    THE LIBERTY CORPORATION (PARENT COMPANY)
                         CONDENSED STATEMENTS OF INCOME
                   FOR THE THREE YEARS ENDED DECEMBER 31, 1999
                                   (In $000's)

<TABLE>
<CAPTION>

                                                      1999            1998             1997
                                                     -------        --------         ---------
<S>                                                  <C>            <C>              <C>
REVENUES
  Dividends from subsidiaries*                       $22,000        $ 22,000         $  74,814
  Interest-unaffiliated                                1,072           1,816               561
  Intercompany interest*                              19,180          11,679             8,157
  Realized investment gains (losses)                     143            (373)            5,504
  Other                                               25,161          13,620            18,318
                                                     -------        --------         ---------
     Total Revenues                                   67,556          48,742           107,354

EXPENSES
  Salaries and wages                                   5,346           7,035            17,507
  Interest-unaffiliated                               14,904          12,403            13,021
  Intercompany interest*                               1,696           1,753             2,193
  Taxes and licenses                                     824           1,163             2,069
  Depreciation and amortization                        1,609           2,949             7,373
  Loss from sale of subsidiary                            --          13,811                --
  Other                                               12,902          12,993             6,298
                                                     -------        --------         ---------
     Total Expenses                                   37,281          52,107            48,461
                                                     -------        --------         ---------

Income (loss) before income taxes                     30,275          (3,365)           58,893
Income tax expense (benefit)                           2,445           1,132            (5,746)
                                                     -------        --------         ---------

Income (loss) before earnings of subsidiaries         27,830          (4,497)           64,639

Earnings of subsidiaries
  net of dividends paid to parent*                    16,739          22,741             7,385
                                                     -------        --------         ---------

    NET INCOME                                       $44,569        $ 18,244***      $  72,024**
                                                     =======        ========         =========
</TABLE>

*       Eliminated in consolidation.
**      Differs from consolidated net income by $2,927 in 1997 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 $483 in 1998 due to gains
        deferred on a consolidated basis until completion of the earnings
        process.

See notes to condensed financial statements.


                                       27
<PAGE>   28

                                                                     Schedule II

                    THE LIBERTY CORPORATION (PARENT COMPANY)
                       CONDENSED STATEMENTS OF CASH FLOWS
                   FOR THE THREE YEARS ENDED DECEMBER 31, 1999
                                   (In $000's)

<TABLE>
<CAPTION>
                                                            1999                1998               1997
                                                         -----------        -----------        -----------
<S>                                                      <C>                <C>                <C>
OPERATING ACTIVITIES
Net income                                               $    44,569        $    18,244        $    72,024
Adjustments to reconcile net income to net cash
provided by operating activities:
   Depreciation and amortization                               1,609              2,949              7,373
   Provision for deferred income taxes                        (2,263)                94              1,556
   Earnings from subsidiary operations, net of
     dividends paid to parent                                (16,739)           (22,741)            (7,385)
   Non-cash dividends paid to parent                              --                 --            (39,370)
   Gain on disposal of assets                                   (944)            (1,826)            (2,011)
   Realized investment (gains) losses                           (143)               373             (5,504)
   Loss on sale of subsidiary                                     --             13,811                 --
Change in operating assets and liabilities:
   Decrease (increase) in intercompany debt and
     advances*                                                25,086             14,299              2,748
   (Increase) decrease in accounts and notes                   2,299              1,170             (2,482)
     receivable
   (Decrease) increase in accounts payable and
     accrued expenses                                          3,618             (1,496)            (2,996)
   Decrease (increase) in other assets                         4,136                855              1,065
   Increase (decrease) in other liabilities, and
     accrued income taxes                                     (7,032)            (3,369)             4,847
   Other                                                       2,002               (966)                53
                                                         -----------        -----------        -----------
NET CASH PROVIDED BY
     OPERATING ACTIVITIES                                     56,198             21,397             29,918

INVESTING ACTIVITIES
Investment securities sold, matured, or redeemed              17,891             44,866                349
Cost of investment securities acquired                        (1,435)            (1,275)                --
Purchase of investment properties                            (13,533)            (3,545)            (7,563)
Sale of investment properties                                  6,417              9,112             49,601
Net cash received on sale of subsidiary                                         133,060                 --
Net cash paid on purchase of broadcasting business                             (156,942)                --
Other                                                                             6,175                923
                                                         -----------        -----------        -----------
NET CASH PROVIDED BY (USED IN)
     INVESTING ACTIVITIES                                      9,340             31,451             43,310

FINANCING ACTIVITIES
Proceeds from borrowings                                   2,625,000          3,265,000          2,505,000
Principal payments on debt                                (2,674,000)        (3,171,214)        (2,559,007)
Dividends paid                                               (18,030)           (18,447)           (19,540)
Repurchase of common stock                                        --           (131,114)                --
Redemption of preferred stock                                   (306)                --                 --
Stock issued for employee benefit and performance
   incentive compensation programs                             3,552              1,974              3,884
                                                         -----------        -----------        -----------
NET CASH (USED IN) FINANCING ACTIVITIES                      (63,784)           (53,801)           (69,663)

INCREASE (DECREASE) IN CASH                                    1,754               (953)             3,565
Cash at beginning of year                                      4,062              5,015              1,450
                                                         -----------        -----------        -----------

CASH AT END OF YEAR                                      $     5,816        $     4,062        $     5,015
                                                         ===========        ===========        ===========
</TABLE>

*Eliminated in consolidation
See notes to condensed financial statements.



                                       28
<PAGE>   29

                                                                     Schedule II

                    THE LIBERTY CORPORATION (PARENT COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                DECEMBER 31, 1999



1.   NOTES, MORTGAGES AND OTHER DEBT

     The general debt obligations at December 31, 1999 are as follows:


            (In 000's)                              Interest Rate      Amount
            ----------                              --------------------------
            Notes due to banks, maturing in 2003            6.4%      $234,000


    In May 1998, the Parent Company refinanced its credit facility into a $300
million revolving credit facility maturing in April, 2003. The Parent Company
may request up to an additional $150 million under the new facility subject to
approval by the bank group. Borrowings under the facility were used to refinance
indebtedness, as well as to provide funds to meet working capital requirements.
See Note 5 of The Liberty Corporation and Subsidiaries Consolidated Financial
Statements which provides additional information as to this agreement.


2.   DIVIDENDS TO PARENT COMPANY

     During 1999, the Parent Company received dividends from its subsidiaries of
     approximately $22 million.


3.   RETAINED EARNINGS

     As of December 31, 1999 and 1998, retained earnings of $446,180,000 and
     $419,641,000 respectively, in The Liberty Corporation (Parent Company)
     financial statements differs from The Liberty Corporation and Subsidiaries
     consolidated financial statements. The difference of $851,000 at December
     31, 1999 and 1998 relates to the elimination of gains on intercompany
     transactions on a consolidated basis.


                                       29
<PAGE>   30

                                                                    Schedule III

                    THE LIBERTY CORPORATION AND SUBSIDIARIES
                       SUPPLEMENTARY INSURANCE INFORMATION
                   FOR THE THREE YEARS ENDED DECEMBER 31, 1999
                                   (In 000's)

<TABLE>
<CAPTION>
                                                              Future Policy
                              Deferred                           Benefits,                       Other Policy
                               Policy                         Losses, Claims                       Claims &
                             Acquisition    Cost of Business    and Loss         Unearned          Benefits
        Segment                 Costs           Acquired        Expenses         Premiums          Payable
        -------              ----------       ----------       ----------       ----------       ----------
<S>                          <C>              <C>              <C>              <C>              <C>

December 31, 1999
     Agency                  $  229,861       $   31,037       $  875,981       $    2,212       $   20,027
     LibertyDirect               27,890            1,795           24,825              903           23,246
     Corporate & Other           12,365            1,471          374,311               --           15,502
                             ----------       ----------       ----------       ----------       ----------
         Total               $  270,116       $   34,303       $1,275,117       $    3,115       $   58,775
                             ==========       ==========       ==========       ==========       ==========

December 31, 1998
     Agency                  $  213,473       $   34,433       $  863,138       $    1,960       $   18,741
     LibertyDirect               22,034            2,368           32,994              561           19,711
     Corporate & Other            9,593            2,465          381,277               --           16,150
                             ----------       ----------       ----------       ----------       ----------
         Total               $  245,100       $   39,266       $1,277,408       $    2,521       $   54,602
                             ==========       ==========       ==========       ==========       ==========

December 31, 1997
     Agency                  $  206,502       $   37,388       $  849,676       $    1,868       $   19,374
     LibertyDirect               17,958            3,168           31,187              678           21,547
     Pre-need                    34,494           22,687          620,861            1,518            6,248
     Corporate & Other           12,997            2,647          384,998               --           17,976
                             ----------       ----------       ----------       ----------       ----------
         Total               $  271,951       $   65,890       $1,886,722       $    4,064       $   65,145
                             ==========       ==========       ==========       ==========       ==========
</TABLE>


<TABLE>
<CAPTION>
                                                         Benefits                                       Accident &
                                           Net         Claims, Losses                     Other          Health
                         Premium        Investment     & Settlement    Amortization     Operating        Premiums
          Segment        Revenue          Income         Benefits        Expense         Expenses        Written
          -------        --------        --------        --------        --------        --------        --------
<S>                      <C>             <C>             <C>             <C>             <C>             <C>

1999
     Agency              $133,218        $ 71,179        $ 98,868        $ 31,467        $ 58,371        $ 12,805
     LibertyDirect        116,016           1,864          22,848          10,472          75,274          77,692
     Corporate & Other      3,167          25,401          10,025           1,169          13,991              58
                         --------        --------        --------        --------        --------        --------
         Total           $252,401        $ 98,444        $131,741        $ 43,108        $147,636        $ 90,555
                         ========        ========        ========        ========        ========        ========

1998
     Agency              $133,796        $ 72,935        $ 95,856        $ 31,160        $ 58,811        $ 13,248
     LibertyDirect        119,483           1,323          23,053           7,366          75,129          80,174
     Pre-need              24,247          14,774          23,914           3,126           5,861              88
     Corporate & Other      7,405          28,755          11,838           9,366          32,105              62
                         --------        --------        --------        --------        --------        --------
         Total           $284,931        $117,787        $154,661        $ 51,018        $171,906        $ 93,572
                         ========        ========        ========        ========        ========        ========

1997
     Agency              $135,305        $ 69,572        $ 95,548        $ 27,872        $ 43,360        $ 13,679
     LibertyDirect        102,995           1,989          23,112           5,681          62,339          64,525
     Pre-need             105,414          56,078          97,860          10,513          26,079             338
     Corporate & Other      6,978          29,202          11,407           1,498          27,721             172
                         --------        --------        --------        --------        --------        --------
         Total           $350,692        $156,841        $227,927        $ 45,564        $159,499        $ 78,714
                         ========        ========        ========        ========        ========        ========
</TABLE>


                                       30
<PAGE>   31

                                                                     Schedule IV

             THE LIBERTY CORPORATION AND SUBSIDIARIES -- REINSURANCE
                   FOR THE THREE YEARS ENDED DECEMBER 31, 1999

<TABLE>
<CAPTION>

 (In 000's)                                                                          Amount                          % of
                                                                                  Assumed From                      Amount
                                                    Gross       Ceded to Other       Other             Net         Assumed
                                                   Amount          Companies       Companies         Amount         to Net
<S>                                              <C>               <C>                <C>          <C>               <C>
Year ended December 31, 1999
----------------------------------------------
Life Insurance in Force
   Agency                                         $9,709,063         $244,445                       $9,464,618         --
   LibertyDirect                                   5,308,867           33,999         $13,934        5,288,802        0.3%
   Corporate & Other                               3,740,747        2,943,768                          796,979         --
                                               ---------------- ---------------- --------------- ----------------
                Total life insurance in force    $18,758,677       $3,222,212         $13,934      $15,550,399        0.1%
                                               ================ ================ =============== ================

Insurance premiums and policy charges:
   Life, annuity and other considerations
     Agency                                         $120,368           $1,388                         $118,980         --
     LibertyDirect                                    36,484             (190)           $324           36,998        0.9%
     Corporate & Other                                33,233           27,109                            6,124         --
                                               ---------------- ---------------- --------------- ----------------
Total life, annuity and other considerations         190,084           28,306             324          162,102        0.2%
   Accident and health
     Agency                                           12,830               11                           12,819         --
     LibertyDirect                                    87,433            9,910              88           77,611        0.1%
     Corporate & Other                                  (131)                                             (131)        --
                                               ---------------- ---------------- --------------- ----------------
Total accident and health                            100,132            9,921              88           90,299        0.1%
                                               ---------------- ---------------- --------------- ----------------
  Total Insurance Premiums and Policy Charges       $290,216          $38,227            $412         $252,401        0.2%
                                               ================ ================ =============== ================

Year ended December 31, 1998
----------------------------------------------
Life Insurance in Force
   Agency                                         $9,744,011         $239,508                       $9,504,503         --
   LibertyDirect                                   5,148,397            2,090         $15,100        5,161,407        0.3%
   Corporate & Other                               3,973,020        3,120,946                          852,074         --
                                               ---------------- ---------------- --------------- ----------------
                Total life insurance in force    $18,865,428       $3,362,544         $15,100      $15,517,984        0.1%
                                               ================ ================ =============== ================

Insurance premiums and policy charges:
   Life, annuity and other considerations
     Agency                                         $122,101           $1,736            $164         $120,528        0.1%
     LibertyDirect                                    38,744             (456)                          39,200         --
     Pre-need                                         24,183               27                           24,156         --
     Corporate & Other                                29,492           21,907                            7,585         --
                                               ---------------- ---------------- --------------- ----------------
Total life, annuity and other considerations         214,519           23,214             164          191,469        0.1%
   Accident and health
     Agency                                           13,279               11                           13,268         --
     LibertyDirect                                    89,323            9,109              69           80,283        0.1%
     Pre-need                                             86                                5               91        5.0%
     Corporate & Other                                  (180)                                             (180)        --
                                               ---------------- ---------------- --------------- ----------------
Total accident and health                            102,508            9,120              74           93,462        0.1%
                                               ---------------- ---------------- --------------- ----------------
  Total Insurance Premiums and Policy Charges       $317,027          $32,334            $238         $284,931        0.1%
                                               ================ ================ =============== ================

Year ended December 31, 1997
----------------------------------------------
Life Insurance in Force
   Agency                                         $9,708,545         $252,926                       $9,455,619         --
   LibertyDirect                                   5,200,591            3,859         $17,172        5,213,904        0.3%
   Pre-need                                        1,550,497           19,930              19        1,530,586         --
   Corporate & Other                               4,328,103        3,422,197                          905,906
                                               ---------------- ---------------- --------------- ----------------
                Total 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
     Agency                                         $123,346           $1,725                         $121,621         --
     LibertyDirect                                    38,418               14            $315           38,719        0.8%
     Pre-need                                        105,783              745                          105,038         --
     Corporate & Other                                30,085           23,091                            6,994         --
                                               ---------------- ---------------- --------------- ----------------
Total life, annuity and other considerations         297,632           25,575             315          272,372        0.1%
   Accident and health
     Agency                                           13,684                2               2           13,684
     LibertyDirect                                    72,369            8,613             520           64,276        0.8%
     Pre-need                                            341                1              36              376       10.0%
     Corporate & Other                                   (16)                                              (16)        --
                                               ---------------- ---------------- --------------- ----------------
Total accident and health                             86,378            8,616             558           78,320        0.7%
                                               ---------------- ---------------- --------------- ----------------
  Total Insurance Premiums and Policy Charges       $384,010          $34,191            $873         $350,692        0.3%
                                               ================ ================ =============== ================
</TABLE>


                                       31
<PAGE>   32

                                                                      Schedule V

                    THE LIBERTY CORPORATION AND SUBSIDIARIES
                 VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
                   FOR THE THREE YEARS ENDED DECEMBER 31, 1999
                                   (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, 1999

 Accounts receivable -
    reserve for bad debts                $      1,163    $        573     $         --       $      417(a)       $       1,319
                                         ------------    ------------     ------------       -------------       -------------


Year Ended December 31, 1998
                                                                                                    679(c)
 Accounts receivable -                                                                                2(b)
    reserve for bad debts                $      1,441    $        837     $         10       $      444(a)      $        1,163
                                         ------------    ------------     ------------       -------------      --------------


Year Ended December 31, 1997

 Accounts receivable -                                                                              227(b)
    reserve for bad debts                $      2,310    $        429     $         --       $    1,071(a)      $        1,441
                                         ------------    ------------     ------------       -------------      --------------
</TABLE>

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


                                       32
<PAGE>   33

                                   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 21st day of
March, 2000.

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 21st day of March, 2000.


By:   /s/ Kenneth W. Jones                 *By:   /s/ John H. Mullin III
      ----------------------------                --------------------------
      Kenneth W. Jones                            John H. Mullin III
      Corporate Controller                        Director

*By:    /s/  Rufus C. Barkley, Jr.         *By:   /s/ Benjamin F. Payton
      ----------------------------                --------------------------
      Rufus C. Barkley, Jr.                       Benjamin F. Payton
      Director                                    Director

*By:  /s/ Edward E. Crutchfield            *By:   /s/ J. Thurston Roach
      ----------------------------                --------------------------
      Edward E. Crutchfield                       J. Thurston Roach
      Director                                    Director

*By:  /s/ John R. Farmer                   *By:   /s/ Eugene E. Stone, IV
      ----------------------------                --------------------------
      John R. Farmer                              Eugene E. Stone, IV
      Director                                    Director

By:   /s/ Hayne Hipp                       *By:   /s/ William B. Timmerman
      ----------------------------                --------------------------
      Hayne Hipp                                  William B. Timmerman
      Director                                    Director

*By:  /s/ W. W. Johnson                    *By:   /s/ Martha G. Williams
      ----------------------------                --------------------------
      W. W. Johnson                               *Martha G. Williams, as
      Director                                    Special Attorney in Fact

*By:  /s/ William O. McCoy
      ----------------------------
      William O. McCoy
      Director


                                       33
<PAGE>   34

                           Annual Report on Form 10-K
                             The Liberty Corporation
                                December 31, 1998


                                Index to Exhibits

<TABLE>
<CAPTION>
                                                                                        PAGE
           EXHIBITS                                                                    NUMBER
<S>        <C>                                                                         <C>

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 pages 19-20
               of The Liberty Corporation Annual Report to Shareholders for the
               year ended December 31, 1999).                                              62

13.        Portions of The Liberty Corporation Annual Report to Shareholders for
               the year ended December 31, 1999:

           Market for the Registrant's Common Stock and Related Security
               Stockholder Matters                                                         35
           Selected Financial Data                                                         36
           Management's Discussion and Analysis of Financial Condition and
                Results of Operations                                                   40-46
           Quantitative and Qualitative Disclosures About Market Risk                   43-44
           Financial Statements and Supplementary Information:
             Consolidated Statements of Income - For the three years ended
               December 31, 1999                                                           47
             Consolidated Balance Sheets - December 31, 1999 and 1998                   48-49
             Consolidated Statements of Cash Flows - For the three years ended
                December 31, 1999                                                          50
             Consolidated Shareholders' Equity - For the three years ended
                December 31, 1999                                                          51
             Notes to Consolidated Financial Statements - December 31, 1999             52-71
             Report of Independent Auditors                                                72

21.        The Liberty Corporation and Subsidiaries, List of Significant
                Subsidiaries                                                               73

23.        Consent of Independent Auditors                                                 74

27.        Financial Data Schedule
</TABLE>


                                       34