Note 8. Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2012

Notes

Note 8. Goodwill and Other Intangible Assets

Note 8.                        Goodwill and Other Intangible Assets

The change in the carrying amount of goodwill and other intangible assets (included in other assets in the Condensed Consolidated Balance Sheets) for the first nine months of 2012 is as follows (in thousands):

				Other Intangible Assets
								Total
								Other
				Definitive		Indefinite		Intangible
		Goodwill		Lives		Lives		Assets
Balance at December 31, 2011	$	50,318	$	9,738	$	7,977	$	17,715
Medical Stop-Loss:
Acquired broker relationships		-		1,825		-		1,825
Fully insured:
Acquired CPR		-		327		-		327
Capitalized software development		-		144		-		144
Amortization expense		-		(2,009)		-		(2,009)
Balance at September 30, 2012	$	50,318	$	10,025	$	7,977	$	18,002

In February 2012, the Company acquired the net assets of CPR Risk Management, Inc. (“CPR”) for an aggregate purchase price of $275,000. The Company recorded other intangible assets of $327,000 representing customer relationships, which is being amortized over a weighted average period of 5.0 years.

In July 2012, AMIC acquired the assets and renewal contract rights of a MGU of Medical Stop-Loss business for an aggregate purchase price of $1,825,000.  The purchase price consists of $1,300,000 in cash and $525,000 in contingent consideration expected to be paid in early 2013 based on expected growth in the acquired block of business. AMIC recorded other intangible assets representing broker relationships, which will be amortized over a weighted average period of 7.0 years.