BUSINESS COMBINATIONS

12 Months Ended

Dec. 31, 2016

BUSINESS COMBINATIONS [Abstract]

BUSINESS COMBINATIONS

(2)  BUSINESS COMBINATIONS

During 2016, the Company had two insurance agency acquisitions which were not material to the operations of the Company.  An insurance agency, headquarters in Metairie, LA, and an insurance agency, headquarters in Baton Rouge, LA, were acquired in May and December 2016, respectively.   No acquisitions were made during the year ended December 31, 2015.

On April 10, 2014, the Company purchased certain assets of Knox Insurance Group, LLC (“Knox”), an independent insurance agency located in Lafayette, Louisiana.  Consideration paid to complete this transaction consisted of cash paid to Knox shareholders in the aggregate amount of $7.0 million. The provisions of the related purchase agreement also provide for additional aggregate consideration of up to $2.4 million in cash to be paid in three annual installments if certain performance criteria are met.  As of December 31, 2016, the Company has paid approximately $352,000 in cash under this agreement.  This acquisition was not material to the financial position or results of operations of the Company.

On December 18, 2013, the Company announced the purchase of certain assets of GEM Insurance Agencies, LP (“GEM”), an independent insurance agency located in Houston, Texas.  Consideration paid to complete this transaction consisted of cash paid to GEM in the aggregate amount of $20.7 million.  The provisions of the related purchase agreement also provide for additional aggregate consideration of up to $6.2 million in cash to be paid in three annual installments if certain performance criteria are met.  As of December 31, 2016, the Company has paid $4.6 million in cash under this agreement.  This acquisition was not material to the financial position or results of operations of the Company.