This article considers the special characteristics of life insurance companies reported earnings as related to reserves and first year policy acquisition expenses. It presents a new and more reliable technique for adjusting life insurance company earnings with modern computers. It further delineates the modus operandi of projecting earnings within closer tolerances. It concludes that “true” earnings may exhibit wide variances for individual companies, but are substantially greater than statutory results, while perceptibly less than those earnings as adjusted heretofore utilizing out-dated “rules of thumb”. The earnings of mature Southern “combination” companies are placed in a more favorable light than those of other types and/or regions.