XML 127 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 8. Net Realized Investment Gains and Losses
 12 Months Ended
Dec. 31, 2012
Notes  
Note 8. Net Realized Investment Gains and Losses

Note 8.                        Net Realized Investment Gains and Losses

 

            Net realized investment gains (losses) for the years ended December 31, 2012, 2011 and 2010 are as follows (in thousands):

 

 

 

2012

 

 

2011

 

 

2010

 

 

 

 

 

 

 

 

 

Sales of available-for-sale securities:

 

 

 

 

 

 

 

 

   Fixed maturities

$

   6,837 

 

$

    9,086 

 

$

     8,407 

   Common stocks

 

      419 

 

 

      (874)

 

 

        654 

   Preferred stocks

 

     (495)

 

 

        749 

 

 

        413 

      Total sales of available-for-sale securities

 

   6,761 

 

 

    8,961 

 

 

     9,474 

 

 

 

 

 

 

 

 

 

Sales of trading securities

 

         79 

 

 

             - 

 

 

   (1,619)

Other trading losses, net

 

            - 

 

 

             - 

 

 

   (3,272)

Other gains (losses)

 

(1,409)

 

 

             - 

 

 

           63 

      Total realized gains (losses) on securities

 

   5,431 

 

 

    8,961 

 

 

     4,646 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on trading securities:

 

 

 

 

 

 

 

 

   Available-for-sale securities transferred

 

 

 

 

 

 

 

 

      to trading category

 

      138 

 

 

             - 

 

 

              - 

   Change in unrealized gains (losses) on trading securities

 

       (26)

 

 

             - 

 

 

              - 

      Total unrealized gains (losses) on trading securities

 

      112 

 

 

             - 

 

 

              - 

 

 

 

 

 

 

 

 

 

Loss on other investment

 

     (444)

 

 

      (291)

 

 

              - 

 

 

 

 

 

 

 

 

 

Net realized investment gains (losses)

$

   5,099 

 

$

    8,670 

 

$

     4,646 

 

For the years ended December 31, 2012, 2011 and 2010, the company realized gross gains of $10,629,000, $18,661,000 and $14,848,000, respectively, and gross losses of $3,868,000, $9,700,000 and $5,374,000, respectively, on sales of available-for-sale securities.

 

On January 1, 2012, the Company transferred equity securities previously classified as available-for-sale into the trading category and, as a result, recognized $287,000 of gross gains and $149,000 of gross losses in net realized investment gains on the accompanying Consolidated Statement of Operations. These gains and losses were previously included in accumulated other comprehensive income on the accompanying Consolidated Balance Sheet at December 31, 2011.

 

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 went into bankruptcy.  The Company filed a claim to recover the maximum amount available from the Securities Investor Protection Corporation. 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. A settlement agreement was entered into with the trustee in the first quarter of 2011 and payment was made by the Company in July 2011.