Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company has various routine related party transactions in conjunction with our holding company structure, such as a management service agreement related to costs incurred, a tax sharing agreement between entities, and inter-company dividends and capital contributions.  There were no changes related to these relationships during the nine months ended September 30, 2012 except as identified below.  See our Annual Report on Form 10-K as of December 31, 2011 for a comprehensive discussion of these transactions.

During the quarter ended September 30, 2012, CICA paid a cash dividend to it's parent Citizens in the amount of $5.4 million and SPLIC paid a cash dividend to CICA totaling $2.3 million. These payments do not impact the consolidated results of the Company.

On October 2, 2012, a reinsurance agreement was executed between CICA and CNLIC where CICA assumes insurance risk relative to claims over $35,000 and up to a maximum of $100,000. This agreement is effective for business written beginning January 1, 2012. This reinsurance agreement has no impact on the consolidated financial statements of the Company.