Note 15. Segment Reporting

9 Months Ended

Sep. 30, 2012

Notes

Note 15. Segment Reporting

Note 15.          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, 2012 and 2011 is presented below (in thousands):

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2012		2011		2012		2011
Revenues:
Medical Stop-Loss		$	38,286	$	32,668	$	107,844	$	93,448
Fully  Insured Health			45,357		42,388		124,033		129,706
Group disability, life, annuities and DBL			13,160		14,986		38,901		45,429
Individual life, annuities and other			13,666		13,924		40,517		43,884
Corporate			22		(1,124)		512		(994)
			110,491		102,842		311,807		311,473
Net realized investment gains			1,011		924		3,998		2,605
Other-than-temporary impairment losses			-		(107)		(704)		(575)
		$	111,502	$	103,659	$	315,101	$	313,503
Income from operations
	before income taxes:
Medical Stop-Loss		$	2,853	$	2,691	$	12,787	$	4,598
Fully Insured Health(A)			1,461		2,355		4,619		7,297
Group disability, life, annuities and DBL			3,590		3,285		4,292		4,873
Individual life, annuities and other			852		308		1,050		652
Corporate			(2,677)		(3,253)		(5,781)		(5,575)
			6,079		5,386		16,967		11,845
Net realized investment gains			1,011		924		3,998		2,605
Other-than-temporary impairment losses			-		(107)		(704)		(575)
Interest expense			(509)		(516)		(1,588)		(1,433)
		$	6,581	$	5,687	$	18,673	$	12,442

(A)                The Fully Insured Health segment includes amortization of intangible assets recorded as a result of acquisition accounting for the recent acquisitions. Total amortization expense was $624,000 and $592,000 for the three months ended September 30, 2012 and 2011, respectively, and was $1,829,000 and $1,804,000, respectively, for the nine months ended September 30, 2012 and 2011. Amortization expense for the other segments is insignificant.