Accounting Pronouncements

3 Months Ended

Mar. 31, 2012

Accounting Pronouncements [Abstract]

Accounting Pronouncements

(2)  Accounting Pronouncements

Accounting Standards Recently Adopted

Effective January 1, 2012, the Company retrospectively adopted the Financial Accounting Standards Board's ("FASB") guidance modifying the definition of the types of costs incurred by insurance entities that can be capitalized in the acquisition of new and renewal contracts.  The guidance specified that the costs must be based on successful efforts.  The guidance also specifies that advertising costs should be included as deferred acquisition costs only when the direct-response advertising accounting criteria are met.  The retrospective effect of the change in our deferred acquisition costs decreased the December 31, 2011 stockholders' equity balance by $7.6 million, the DAC asset and deferred taxes decreased by $11.8 million and $4.1 million, respectively.

The following table provides the balance sheet and income statement accounts that were impacted by the change in accounting principle.

	As Previously Reported			Impact of Change in Accounting Principle			As Adjusted
	(In thousands, except per share data)
Balance Sheet Accounts:
As of December 31, 2011
Deferred acquisition costs	$	136,300			(11,758	)		124,542
Deferred federal income taxes		18,055			(4,115	)		13,940
Accumulated deficit		(14,208	)		(7,643	)		(21,851	)
Statement of Operations:
As of March 31, 2011
Capitalization of deferred policy acquisition costs	$	(7,165	)		524			(6,641	)
Amortization of deferred policy acquisition costs		4,520			(282	)		4,238
Federal income tax expense		953			(84	)		869
Net income		1,780			(158	)		1,622
Per share of Class A common stock:
Basic earnings per share	$	0.04			(0.01	)		0.03
Diluted earnings per share	$	0.03			-			0.03

In June 2011, the FASB amended its guidance on the presentation of comprehensive income in financial statements to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items that are recorded in other comprehensive income. The new accounting guidance requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. The provisions of this new guidance are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this guidance did not have any impact on our financial statements.

Accounting Standards Update ("ASU") 2011-04, "FairValue Measurement ("Topic 820") - Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRSs." ASU 2011-04 amends Topic 820, "Fair Value Measurements and Disclosures," to converge the fair value measurement guidance in U.S. GAAP and International Financial Reporting Standards ("IFRS"). ASU 2011-04 clarifies the application of existing fair value measurement requirements, changes certain principles in Topic 820 and requires additional fair value disclosures. ASU 2011-04 is effective for annual periods beginning after December 15, 2011, and did not have any impact on the Company's financial statements.