SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

           [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1996

                         Commission file number 33-83116
                         ASSOCIATED BUSINESS & COMMERCE
                              INSURANCE CORPORATION
             (Exact name of Registrant as specified in its charter)

                     FLORIDA                               65-0496132
          ------------------------------               -------------------
         (State or other jurisdiction of                 (IRS Employer 
          incorporation of organization)               Identification No.)


         4700 NW BOCA RATON BOULEVARD, SUITE 400, BOCA RATON, FL      33431
         -------------------------------------------------------------------
         (Address of principal executive offices)                   (Zip Code)

         Registrant's telephone number,
         including area code                            (561) 997-0708


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(b) 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 such filing
requirements for the past 90 days.
 Yes [X]     No [ ]


The number of the outstanding Preferred Stock held by nonaffiliates of the
Registrant on November 7, 1996 was 249,716 shares.

<PAGE>
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                         ASSOCIATED BUSINESS & COMMERCE
                              INSURANCE CORPORATION

                                TABLE OF CONTENTS

<S>                                                                                                      <C>
Part I. Financial Information
   Statement of Operations (unaudited), three months and nine months ended September 30, 1996............3
   Balance Sheets, September 30, 1996 (unaudited) and December 31, 1995..................................4
   Statements of Changes in Stockholders' Equity, nine months ended
      September 30, 1996 (unaudited) and the year ended December 31, 1995................................6
   Statement of Cash Flows (unaudited), nine months ended September 30, 1996.............................7
   Notes to Financial Statements (unaudited) ............................................................8
   Management's Discussion and Analysis of Financial Condition and Results of Operations................13

Part II Other Information
      Item 1. Legal Proceedings.........................................................................15
      Item 2. Changes in Securities.....................................................................15
      Item 3. Defaults Upon Senior Securities...........................................................15
      Item 4.  Submission of Matters to a Vote of Security Holders......................................15
      Item 5. Other Information.........................................................................15
      Item 6.  Exhibits and Reports on Form 8-K.........................................................15

      Signatures........................................................................................16
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                          PART I FINANCIAL INFORMATION

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                          STATEMENT OF OPERATIONS FOR
               THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996
                                   UNAUDITED

                                                         THREE MONTHS      NINE MONTHS
                                                            ENDED             ENDED
                                                         SEPTEMBER 30,     SEPTEMBER 30,
                                                             1996               1996
                                                         ------------      ------------
<S>                                                      <C>               <C>
Revenues:
        Standard premium earned, net of discounts        $  7,946,489      $ 21,587,766
        Less premium ceded for reinsurance                  5,302,634        15,099,101
                                                         ------------        ----------
                Net premium earned                          2,643,855         6,488,665
                                                         ------------        ----------
       
       Less loss and loss adjustment expenses              1,402,347         3,842,383
                                                         ------------        ----------

                Premiums available for operations           1,241,508         2,646,282

        Earned premium LPT transaction                         79,477           324,513
        Interest earnings                                     180,082           649,861
                                                         -----------         ----------
                                                            1,501,067         3,620,656
                                                         ------------        ----------

Policy acquisition and other underwriting expenses          1,333,250         3,169,839
                                                         ------------        ----------
                        Income before income taxes            167,817           450,817

Income tax expense                                            138,297           234,297
                                                         ------------        ----------

                Net income                               $     29,520       $   216,520
                                                         ============       ===========
                Earnings per common share and
                        common share equivalent          $       0.29       $      1.68
                                                         ============       ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                      -3-
<PAGE>
<TABLE>
<CAPTION>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                                  BALANCE SHEET
              SEPTEMBER 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995



                                     ASSETS
                                     ------
                                                                   SEPTEMBER 30,  DECEMBER 31,
                                                                       1996          1995
                                                                  --------------  ------------
                                                                    (UNAUDITED)

<S>                                                               <C>             <C>
Investments with fixed maturities                                 $  9,751,896     $ 14,439,231
Cash and cash equivalents                                            2,311,149        2,242,245
Premiums receivable, less allowance for
        doubtful accounts 1996 $1,033,059; 1995 $613,125             5,599,393        4,849,556
Reinsurance and related recoverables:
        Paid loss recoverable                                          403,700           94,598
        Loss and loss adjustment expenses                           18,258,957       14,471,111
        Prepaid reinsurance premiums                                        -           530,957
Advances receivable                                                    344,692          175,832
Accrued investment income                                              114,336          211,277
Prepaid expenses                                                       260,846        1,821,000
Deferred income taxes                                                  930,000        1,084,000
Deferred policy acquisition costs                                      412,544          389,737
Equipment, less accumulated depreciation
        1996 $66,294; 1995 $4,837                                      632,684          289,871
Other assets, net                                                       78,461          101,202
                                                                  ------------     ------------
                                                                  $ 39,098,658     $ 40,700,617
                                                                  ============     ============
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                      - 4 -
<PAGE>
<TABLE>
<CAPTION>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                           BALANCE SHEET - CONTINUED
                SEPTEMBER 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995


                 RESERVES, LIABILITIES AND STOCKHOLDERS' EQUITY

                                                                            SEPTEMBER 30,   December 31,
                                                                                1996           1995
                                                                           --------------  -------------
                                                                            (Unaudited)
<S>                                                                        <C>             <C>
Reserves for losses and loss adjustment expenses                           $ 25,612,542     $ 28,306,416
Liabilities:
        Accounts payable and accrued expenses                                 4,071,218        2,709,469
        Unearned and return premium payable                                   3,056,013        2,346,983
        Deferred gain on loss portfolio transfer                                436,365          760,878
        Accrued income taxes and special tax deposits                                --        1,078,200
                                                                            -----------        ---------
                                                                              7,563,596        6,895,530
Commitments and contingencies
        Total reserves and liabilities                                       33,176,138       35,201,946
Stockholders' equity:
        Convertible preferred stock series A, 6% cumulative,
                $1 par value, authorized shares 1,900,000; issued and
                outstanding 246,935 shares (aggregate liquidation
                preference of $2,469,350 at September 30, 1996)                 246,935          221,805
        Additional paid - in capital, preferred series A                      2,222,415        1,996,245
        Convertible preferred stock series B, $1 par value,
                authorized, issued and outstanding 3,200,000 shares           3,200,000        3,200,000
        Common stock, $1 par value, authorized 15,000,000
                shares; 102,501 shares issued and outstanding                   102,501          102,501
        Retained earnings (deficit)                                             150,669          (21,880)
                                                                           ------------      ------------
                                                                              5,922,520         5,498,671
                                                                           ------------      ------------
                                                                           $ 39,098,658      $ 40,700,617
                                                                           ============      ============
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                      - 5 -
<PAGE>

<TABLE>
<CAPTION>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                 STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                   FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND
                        THE YEAR ENDED DECEMBER 31, 1995


                                                                      ADDITIONAL
                                                                       PAID-IN             
                                                PREFERRED STOCK        CAPITAL                RETAINED 
                                                ---------------       PREFERRED     COMMON    EARNINGS   
                                           SERIES A      SERIES B      SERIES A     STOCK     (DEFICIT)
                                           --------      --------      --------    --------    ---------

<S>                                        <C>          <C>           <C>          <C>        <C>
Balance, beginning of period               $    --      $      --     $     --     $102,501   $ (10,245)

        Preferred stock issued
                for cash                     221,805    3,200,000      1,996,845

        Net (loss)                                                                              (11,635)
                                            --------    ---------      ---------   --------     -------
Balance, December 31, 1995                   221,805    3,200,000      1,996,845    102,501     (21,880)

        Preferred stock issued
                for cash (Unaudited)          25,130                    225,570

        Dividends to preferred
                stockholders (Unaudited)                                                       (43,971)

        Net income (Unaudited)                                                                 216,520
                                           ---------    -----------   ----------   --------   ---------

Balance September 30,
        1996 (Unaudited)                   $ 246,935    $3,200,000   $2,222,415   $102,501   $ 150,669
                                           =========    ===========   ==========   ========   =========
</TABLE>

   The accompanying notes are an integral part of these financial statements

                                       -6-

<PAGE>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                            STATEMENTS OF CASH FLOWS
                     FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
                                  (UNAUDITED)


OPERATING ACTIVITIES

        Net income                                                 $  216,520
        Adjustments:
                Change in net insurance reserves                   (6,790,822)
                Change in premiums receivable                        (749,837)
                Accrued income taxes                               (1,078,200)
                Other                                               4,188,224
                                                                   ----------
                        Net cash and cash equivalents
                        (used in) operating activities             (4,214,115)
                                                                   ----------

INVESTING ACTIVITIES

        Proceeds from investment maturities and sales               4,630,620
        Payments for other assets, net                                 (1,800)
        Purchase of equipment                                        (384,270)
        Payments of advances, net                                    (168,860)
                                                                    ----------
                        Net cash and cash equivalents
                        provided by investing activities            4,075,690
                                                                    ----------
FINANCING ACTIVITIES

        Payment of preferred dividends                                (43,971)
        Proceeds from issuance of preferred stock                     251,300
                                                                    ----------
                Net cash and cash equivalents provided
                        by financing activities                       207,329
                                                                    ---------
Net increase in cash and cash equivalents                              68,904

Cash and cash equivalents, beginning of period                      2,242,245
                                                                  -----------
Cash and cash equivalents, end of period                          $ 2,311,149
                                                                  ===========

The accompanying notes are an integral part of these financial statements.

                                      - 7 -

<PAGE>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                         NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   UNAUDITED

NOTES 1 - BASIS OF PRESENTATION

         The financial information presented as of any date other than December
         31 has been prepared from the books and records without audit.
         Financial information as of December 31 has been derived from the
         audited financial statements of the Company, but does not include all
         disclosures required by generally accepted accounting principles.

         The accompanying financial statements have been prepared in conformity
         with generally accepted accounting principles.

         These financial statements rely, in part, on estimates. In the opinion
         of management, all necessary adjustments have been reflected for a fair
         presentation of the results of operations, financial position and cash
         flows in the accompanying unaudited financial statements. The results
         for the period are not necessarily indicative of the results to be
         expected for the entire year.

         Reference should be made to the "Notes to Financial Statements" on
         pages F - 8 through F - 22 of the registrant's Form 10 - K for the year
         ended December 31, 1995. The amounts in those notes have not changed
         except as a result of transactions in the ordinary course of business
         or as otherwise disclosed in these notes.

         Some figures in the 1995 financial statements have been reclassified to
         conform with the 1996 presentation. These reclassifications have no
         effect on net income or stockholders' equity, as previously reported.

         Comparative results of operations and cash flow information is not
         presented because the registrant did not begin insurance operations
         until December 1995. Activity until that time was limited to
         organizational activities.

NOTE 2 - INVESTMENTS

         Investment activity for the period ending September 30, 1996 consisted
         of the collection of maturities, early call proceeds and proceeds from
         the sale of certain available for sale fixed maturity securities, which
         totaled $4,630,620. The market value of the Company's available for
         sale fixed maturity securities continued to approximate amortized cost;
         accordingly no provision for appreciation or depreciation in
         investments is recorded in stockholders' equity.

                                      -8-

<PAGE>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                         NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   UNAUDITED

NOTE 3 - EARNINGS PER SHARE

         Earnings per common share were calculated by dividing net income by the
         adjusted average number of common shares outstanding. Net income was
         adjusted by preferred dividends declared and paid during April 1996.
         There was no change in the average number of outstanding common shares
         from December 31, 1995, and there was no dilution of common stock
         because the preferred stock is not convertible to common stock before
         January 1, 2000. The calculation of earnings per share for the three
         and nine month periods ended September 30, 1996 is based upon the
         following information:


                                            Three Months           Nine Months
                                                Ended                Ended
                                             September 30,        September 30,
                                                 1996                 1996
                                             -------------        ------------
                                             $     29,520         $    216,520
         Net income                                        
         Dividends applicable to Convertible 
         Series A,     
         6% cumulative preferred stock                  -              (43,971)
                                             -------------        ------------
                                             $     29,520         $    172,549
                                             ============         ============

NOTE 4 - INCOME TAXES

         The provision for income taxes for the period ended September 30, 1996
         is as follows:

         Federal income taxes currently payable (refundable)      $    176,297
         Deferred federal income taxes                                  58,000
                                                                  ------------
                                                                  $    234,297
                                                                  ============

NOTE 5 - REINSURANCE

         The Company's financial statements reflect the effects of ceded
         reinsurance transactions. The Company does not assume reinsurance in
         the ordinary course of business. However, effective November 30, 1995,
         the Company, in a transaction approved by the Florida Department of
         Insurance, assumed the insurance assets and liabilities of Associated
         Business & Commerce Workers' Compensation Self - Insurance Fund, the
         Company's predecessor (the "Fund"), by virtue of a loss portfolio
         ("LPT") transaction. The excess of premium received over losses assumed
         was treated as deferred LPT premium on the balance sheet.

         The deferred LPT premium is earned in the ratio of assumed losses paid
         to total assumed losses. Deferred LPT premium earned for the period
         ended September 30, 1996 totaled $324,513.

                                      -9-

<PAGE>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                         NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   UNAUDITED

NOTE 5 - REINSURANCE (CONTINUED)

         Ceded reinsurance involves transferring certain risks the Company has
         underwritten to other insurance companies who agree to share these
         risks. The primary purpose of ceded reinsurance is to protect the
         Company from potential losses in excess of the amount it is prepared to
         accept.

         The Company expects those with whom it has ceded reinsurance to honor
         their obligations. In the event these companies are unable to honor
         their obligations, the Company will pay the shortfall.

         The following table summarizes the effect of reinsurance on premiums
         earned and insurance losses and loss adjustment expenses for the period
         ended September 30, 1996:

         Premiums earned:
            Direct                                      $  21,587,766
            Ceded                                         (15,099,101)
                                                        ------------- 
            Net premiums earned                         $   6,488,665
                                                        =============
   
         Insurance losses and loss adjustment expenses:
            Direct                                      $  12,789,849
            Ceded                                          (8,947,466)
                                                        -------------
            Net insurance losses                        $   3,842,383
                                                        =============

NOTE 6 - LEGAL PROCEEDINGS

         From time to time, the Company may be involved in workers' compensation
         proceedings relating to claims arising out of its operations in the
         normal course of business. As of the filing date of this report, the
         Company is not party to any legal proceedings outside of its ordinary
         workers compensation settlement business which management believes
         would materially affect the financial position or operations of the
         Company with the exception of the matter described below.

                                  -10-
<PAGE>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                         NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   UNAUDITED


NOTE 6 - LEGAL PROCEEDINGS (CONTINUED)

         In July, 1992, the Fund filed a lawsuit in the State Circuit Court of
         Palm Beach County, Florida, for breach of contract against Advanced
         Risk Management Incorporated ("ARMI") claiming damages for excess fees
         and advances collected by ARMI, the former service company of the Fund.
         A counterclaim was filed by ARMI alleging breach of contract, breach of
         fiduciary duty and fraud. On January 2, 1994, the court granted summary
         judgment in favor of the Fund with respect to all of the counterclaims
         made by ARMI. The summary judgment was appealed by ARMI and reversed by
         the Fourth District Court of Appeal, which remanded the matter back to
         the trial court to resolve specific issues. On December 15, 1995 the
         trial court granted the Fund's renewed motion for summary judgment.
         ARMI has filed an appeal as to this judgment as well. The Fund intends
         to continue to pursue and defend this claim on its own behalf. There
         can be no assurance however, that, in the event of an unfavorable
         ruling against the Fund, recovery would not be sought from the Company.
         In the event there is an unfavorable outcome, which management believes
         to be unlikely, the Fund's liability is estimated at less than
         $1,000,000.

NOTE 7 - RELATED PARTY TRANSACTIONS

         All of the Company's outstanding common stock as well as all of the
         outstanding Series B preferred stock are owned by the Company's parent,
         Associated Business & Commerce Holdings, Inc. ("Holdings"). Holdings
         was organized in March 1995 for the purpose of providing financing and
         performing certain management services for the Company under a
         management agreement. All common stock and Series B preferred stock
         have been pledged as collateral against a note payable issued by
         Holdings.

         The note payable of Holdings was issued to the Company's quota share
         reinsurer, Underwriters Reinsurance Company ("Underwriters"). The loan
         bears interest at 12.75% per annum, and, if not prepaid, is due on
         December 31, 2001. Holdings expects to repay the loan from fees paid by
         the Company under a management agreement.

         Holdings renegotiated the loan agreement with Underwriters during the
         second quarter of 1996 to eliminate any debt service payment
         requirements for the balance of 1996 and through March of 1997. In
         addition, Underwriters agreed to re-loan all then paid principal on the
         note of approximately $162,400. As a result of these arrangements,
         Holdings reduced the management fee charged the Company, dollar for
         dollar, and agreed to refund $162,400 of such fees paid through the
         first quarter when received by Holdings.

                                      -11

<PAGE>

              ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
                         NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   UNAUDITED

NOTE 7 - RELATED PARTY TRANSACTIONS (CONTINUED)

         The terms of the management agreement call for a fee of 14.1% of the
         Company's written premium to be paid to Holdings in return for Holdings
         performing certain administrative functions and for paying certain
         costs on behalf of the Company. Through September 30, 1996, management
         fees payable pursuant to the agreement would have approximated
         $3,045,000. The effect of the temporary revision described above,
         through September 30, reduced management fees payable to $2,751,000.

         Policy acquisition and other underwriting expenses reflected in the
         statement of operations for the period ended September 30, 1996 are net
         of $3,734,463 in ceding commissions paid to the Company by
         Underwriters.

         The advances receivable at September 30, 1996 of $344,692 represents
         working capital advances to Holdings and are non - interest bearing.
         $162,400 of the advance is attributable to the reduced management fee
         to Holdings, which will be repaid upon Holdings receipt of the
         principal refund from Underwriters.

NOTE 8 - STOCKHOLDERS' EQUITY

         On May 2, 1996, the Company's Board of Directors adopted an amendment
         to its articles of incorporation to increase the number of authorized
         shares of 6% Cumulative Convertible Preferred Stock, Series A, from
         900,000 to 1,900,000.

                                      -12-

<PAGE>


                         ASSOCIATED BUSINESS & COMMERCE
                              INSURANCE CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1996


RESULTS OF  OPERATIONS
The Company is reporting income before taxes for the first three quarters of
1996 of $216,000 based on gross premium volume of $21,600,000. Annualized
premium as of September 30, 1996 amounts to approximately $28,800,000 or a
slight increase in the calendar year 1995 amount of $27,900,000. As discussed in
the Company's Form 10-K for 1995, certain insureds elected not to renew their
coverage with the Company effective January 1, 1996, which management perceived
as being the result of increased competition generated by favorable 1993
legislative changes and also the late date in 1995 that the Company completed
its plan to announce the availability of non-assessable insurance coverage.
Since the Form 10-K was prepared and filed, the Company has written new business
which has resulted in a restoration to 1995 writing levels. The adjustments to
premium pricing and availability factors as discussed in the Form 10-K have
resulted in a greater portion of submissions being accepted by potential
customers. Although writings have been restored to 1995 levels, leading
management to be optimistic regarding the Company's 1996 writings, the
adjustments to budgeted expenditures made by management in response to the
reduction of January 1, 1996 renewals remain in place, to be modified only to
the extent required by increasing premium volume.

As a result of the full absorption of the Company's 70% quota-share
arrangements, earned premiums ceded for reinsurance (including excess loss
re-insurance) amounts to 69.9% of earned premium. Loss and operating expense
ratios are effected somewhat by the ceding of premium in comparison to 1995's
ratios during which the quota-share treaty was only in effect for the last
quarter of the year.

For the first three quarters of 1996, the loss and loss expense ratio is 59.2%
and the expense ratio is 43.9% or a combined ratio of 103.1%. The investment
ratio (interest and investment earnings divided by net earned premium) amounted
to 10.0% through the third quarter resulting in an overall operating ratio of
93.1%. Included within the statement of operations is recognition of deferred
gain on the loss portfolio transfer transaction between the Company and the Fund
of approximately $325,000. Without the recognition of this gain, the Company
would have recorded operating income before income taxes of approximately
$126,000.

For the nine months ended September 30, 1995, the Fund reported earned premium
of approximately $20,600,000 and income before taxes of approximately $187,000
in its unaudited financial statements. The Fund was not a party to any
quota-share reinsurance treaty during that period nor was any management
agreement in effect as is the case with the Company for 1996. Policy acquisition
and other underwriting expenses for the Company for the first quarter included
approximately $144,000 of amounts paid to Holdings which were utilized by
Holdings for debt service on its loan from Underwriters. However, based upon
Holdings renegotiating the terms of its note payable to Underwriters, no amount
of the management fee was used for debt service during the second or third
quarters.

As discussed above and in Note 7 to the financial statements, management fees
payable by the Company to Holdings through September 30, 1996 have been reduced
by approximately $300,000 attributable to Holdings reduced debt service payment
requirements on its loan from Underwriters.

<PAGE>

                         ASSOCIATED BUSINESS & COMMERCE
                              INSURANCE CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               SEPTEMBER 30, 1996


LIQUIDITY AND CAPITAL RESOURCES
As was anticipated and described in the Company's Form 10-K, cash flows from
operating activities for the first three quarters were a negative $4,200,000.
This was anticipated because of the Company's quota-share arrangements with
Underwriters. Such negative cash flows from operations were offset by proceeds
from investment maturities, sales and other investment activities realizing cash
flows of approximately $4,600,000 and from proceeds from the issuance of
additional Series A preferred stock of approximately $251,000 resulting in an
overall increase in cash and cash equivalents for the nine months ended
September 30, 1996 of approximately $69,000.

Invested assets reduced from $14,400,000 at the end of 1995 to $9,800,000 as of
September 30, 1996 with an increase in cash of approximately $69,000. Negative
cash flows from operations are expected to continue throughout 1996 as funding
of the quota-share recoverables continues by virtue of the transfer of premium
to the quota-share reinsurer pursuant to the quota-share treaty. As claims are
settled and paid in the future, management anticipates that such negative flows
will eventually reverse or stabilize as reimbursements due from the reinsurer
for claims paid and other reimbursements for operating expenses equal or exceed
premiums due pursuant to the treaty.

On a statutory basis, the Company is reporting statutory surplus of
approximately $5,400,000 and statutory net income of $750,000 for the nine
months ended September 30, 1996. Based upon the Company's current writings,
required statutory surplus is the minimum of $4,000,000, pursuant to Florida's
Insurance Code.

<PAGE>


                         ASSOCIATED BUSINESS & COMMERCE
                              INSURANCE CORPORATION
                            PART II OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS
There have been no significant developments in those matters discussed in Item 3
of the Company's Form 10-K for 1995.

ITEM 2.  CHANGES IN SECURITIES
Not Applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 
The board of directors of the Company declared the dividend of $.30 payable on
October 1, 1996 on the 6% Cumulative Preferred Stock, Series A. The total amount
of such arrearage on the date of filing of this report is $74,080. However, the
dividend remains unpaid as of November 14, 1996 pending approval by the Florida
Department of Insurance. If the Department of Insurance does not approve the
October 1 dividend, it will accrue.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable.

ITEM 5.  OTHER INFORMATION
Not Applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.
a)   EXHIBIT INDEX Exhibit 27 Financial Data Schedule
b)   Reports on Form 8-K - The Company filed no reports on Form 8-K during the
     quarter ended September 30, 1996.

<PAGE>


                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                    ASSOCIATED BUSINESS & COMMERCE INSURANCE
                                    CORPORATION REGISTRANT

Date:    November 14, 1996          /s/ JAMES R. NAU

                                    --------------------------------
                                    James R. Nau
                                    President

Date:    November 14, 1996          /s/ CLIFFORD G. MERRITT
                                    ----------------------------------
                                    Clifford G. Merritt
                                    Vice President, Finance
                                    (Principal Financial and Accounting Officer)