By engaging in several selected businesses which are geographically diverse the Company believes it can achieve greater stability in its operating results. Since the year ended December 31, 1993 to the year ended December 31, 1997, the Company's income before taxes grew at a compound annual rate of approximately 25% to $159 million for 1997. The Company's book value increased from $272 million at December 31, 1992 to $833 million at December 31, 1997.
The Company generated revenues of $974 million for 1997, as compared to revenues of $796 million and $924 million for 1996 and 1995, respectively. The acquisition of Industrial resulted in higher revenues in the property and casualty insurance segment in 1997 as compared to 1996. (See "Property and Casualty
Consolidated Financial Statements.) The average loan portfolio grew in 1997 to $1.9 billion from $1.6 billion and $1.5 billion in 1996 and 1995, respectively.
The property and casualty insurance operations have exposure to changes in long-term interest rates due mainly to the significant investment in the available-for-sale investment portfolio. Fluctuations in these interest rates affect the carrying value of the fixed rate investments resulting in fluctuations in unrealized gains and losses on investments, which also affects the Company's stockholders' equity. For an investment in a fixed rate bond, a rise in market interest rates for bonds with a similar remaining term and face amount will result in a decline in the fair value of the fixed rate bond. The converse situation applies as well.
Net cash provided by (used in) financing activities was $420.8 million, $(118.0) million and $483.0 million in 1997, 1996 and 1995, respectively. Net cash provided by (used in) financing activities increased in 1997 as compared to 1996, due primarily to an increase in long-term debt proceeds, net of short-term and long-term repayments; an increase in thrift deposits; a decrease in the funding of certain deferred compensation plans, net of stock options exercised; and the payment in 1996 of $363.4 million in the settlement of certain reinsurance and assumption agreements within the Company's life insurance operations. (See "Results of Operations -- Financial Services Operations.") The increase in long-term debt proceeds, net of repayments, is due mainly to $140 million in net additional borrowings used in conjunction with the acquisition of Industrial. (See "General.") Partially offsetting these increases in financing activities were decreases in annuity receipts, net of contract withdrawals, which is consistent with the Company's substantial reduction in life insurance operations in 1996. Additionally, the Company's financing activities in 1996 were significantly impacted by the proceeds of $100 million from the sale of the Preferred Securities, which were issued on March 1, 1996. Net cash provided by (used in) financing activities decreased in 1996 as compared to 1995, due primarily to lower long-term and short-term debt proceeds, net of repayments; the previously mentioned settlement of certain reinsurance and assumption agreements within the life insurance operation; a decrease in annuity contract receipts, net of contract withdrawals; and an increase in deferred compensation plans. These conditions were partially offset by the proceeds from the sale of the Preferred Securities. The increase in deferred compensation plans is due primarily to the repurchase by the Company of its Common Stock in 1996 pursuant to certain deferred compensation programs.
As of December 31, 1997, significant Year 2000 compliance issues remain only within the Company's workers' compensation operation. The Company's financial services Systems, administrative Systems (personnel, payroll and accounting) and treasury Systems (cash management and investment portfolio management) have all been rendered substantially Year 2000 compliant. The Company also has initiated discussions with its significant policyholders, agents, suppliers, borrowers and financial institutions to ensure that those parties have appropriate plans to remediate Year 2000 issues where their computer systems interface with the Company's Systems or otherwise impact its operations.