Note 14 Segment Reporting

3 Months Ended

Sep. 30, 2011

Segment Reporting

Note 14 Segment Reporting

Note 14.          Segment Reporting

The Insurance Group principally engages in the life and health insurance business. Information by business segment for the three months and nine months ended September 30, 2011 and 2010 is presented below (in thousands):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Revenues:
Medical Stop-Loss (A)	$	32,668	$	34,187	$	93,448	$	99,533
Fully Insured Health (B)		42,388		37,629		129,706		105,981
Group disability, life, annuities and DBL (C)		14,986		16,626		45,429		50,416
Individual life, annuities and other		13,924		15,858		43,884		44,027
Corporate		(1,124)		(323)		(994)		27,483
		102,842		103,977		311,473		327,440
Net realized investment gains		924		4,030		2,605		6,013
Net impairment losses recognized in earnings		(107)		(132)		(575)		(2,797)
	$	103,659	$	107,875	$	313,503	$	330,656
Income Before Income Taxes:
Medical Stop-Loss (A)	$	2,691	$	955	$	4,598	$	3,407
Fully Insured Health(B) (D)		2,355		888		7,297		1,967
Group disability, life, annuities and DBL (C)		3,285		3,704		4,873		5,018
Individual life, annuities and other		308		754		652		1,648
Corporate		(3,253)		(2,504)		(5,575)		22,850
		5,386		3,797		11,845		34,890
Net realized investment gains		924		4,030		2,605		6,013
Net impairment losses recognized in earnings		(107)		(132)		(575)		(2,797)
Interest expense		(516)		(499)		(1,433)		(1,447)
	$	5,687	$	7,196	$	12,442	$	36,659

(A)The amount includes equity income from AMIC (prior to its acquisition) of $14,000 for the nine months ended September 30, 2010.

(B)The amount includes equity income from AMIC (prior to its acquisition) of $244,000 for the nine months ended September 30, 2010.

(C)The amount includes equity income from AMIC (prior to its acquisition) of $22,000 for the nine months ended September 30, 2010.

(D)The Fully Insured Health segment includes amortization of intangible assets recorded as a result of purchase accounting for the recent acquisitions. Total amortization expense was $592,000 and $611,000 for the three months ended September 30, 2011 and 2010, respectively, and $1,804,000 and $1,771,000 for the nine months ended September 30, 2011 and 2010, respectively. Amortization expense for the other segments is insignificant.