Note 8 Net Realized Investment Gains (Losses)

12 Months Ended

Dec. 31, 2011

Net Realized Investment Gains (Losses)

Net Realized Investment Gains (Losses)

Note 8.                        Net Realized Investment Gains and Losses

            Net realized investment gains (losses) for the years ended December 31, 2011, 2010 and 2009 are as follows:

			2011		2010		2009
			(In thousands)
Net realized investment gains (losses):
	Fixed maturities	$	9,086	$	8,407	$	8,253
	Common stocks		(874)		654		43
	Preferred stocks		749		413		493
			8,961		9,474		8,789
Sales of trading securities			-		(1,619)		-
Other gains (losses)			(291)		63		-
Other trading account losses, net			-		(3,272)		-
Net realized investment gains (losses)		$	8,670	$	4,646	$	8,789

For the years ended December 31, 2011, 2010 and 2009, the company realized gross gains of $18,661,000, $14,848,000 and $11,785,000, respectively, and gross losses of $9,700,000, $5,374,000 and $2,996,000, respectively, on sales of available-for-sale securities.

In the fourth quarter of 2008, the Company became aware of certain activities engaged in by the non-affiliate broker-dealer that managed the trading accounts of the Company. The broker-dealer is now in bankruptcy.  The Company filed a claim to recover the $500,000 maximum amount available from the Securities Investor Protection Corporation (“SIPC”). Based on discussions with the trustee in bankruptcy in the fourth quarter of 2010 pertaining to the resolution of these claims, the Company recorded an additional $3,272,000 of pre-tax losses consisting of: (i) the reversal of $500,000 of anticipated SIPC recoveries initially recorded by a subsidiary of IHC; (ii) the reversal of $500,000 of anticipated SIPC recoveries initially recorded by AMIC; and (iii) an additional $2,272,000 of withdrawals by IHC and AMIC deemed subject to return. A settlement agreement was entered into with the trustee in the first quarter of 2011 and payment by the Company was made in July 2011.