Note 14. Segment Reporting

6 Months Ended

Jun. 30, 2013

Notes

Note 14. Segment Reporting

Note 14.          Segment Reporting

The Insurance Group principally engages in the life and health insurance business. Information by business segment is presented below for the periods indicated (in thousands):

			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2013		2012		2013		2012
Revenues:
Medical Stop-Loss		$	43,668	$	34,298	$	85,790	$	69,558
Fully  Insured Health			68,435		40,009		132,118		78,676
Group disability, life, annuities and DBL			16,369		12,826		30,843		25,741
Individual life, annuities and other			11,673		13,061		24,620		26,851
Corporate			20		20		57		490
			140,165		100,214		273,428		201,316
Net realized investment gains			11,735		1,850		16,354		2,987
Other-than-temporary impairment losses			-		(621)		-		(704)
Total revenues		$	151,900	$	101,443	$	289,782	$	203,599
Income from operations
	before income taxes:
Medical Stop-Loss		$	3,416	$	3,849	$	6,432	$	9,934
Fully Insured Health(A)			191		2,006		(141)		3,158
Group disability, life, annuities and DBL			2,399		733		3,975		702
Individual life, annuities and other(B)			(9,549)		(172)		(9,167)		198
Corporate			(1,378)		(1,429)		(2,537)		(3,104)
			(4,921)		4,987		(1,438)		10,888
Net realized investment gains			11,735		1,850		16,354		2,987
Other-than-temporary impairment losses			-		(621)		-		(704)
Interest expense			(490)		(540)		(977)		(1,079)
Income from operations before
income taxes		$	6,324	$	5,676	$	13,939	$	12,092

(A)                The Fully Insured Health segment includes amortization of intangible assets. Total amortization expense was $607,000 and $610,000 for the three months ended June 30, 2013 and 2012, respectively, and was $1,209,000 and $1,205,000, respectively, for the six months ended June 30, 2013 and 2012. Amortization expense for the other segments is not material to their operating results.

(B)                 For the three months and six months ended June 30, 2013, the Individual life, annuities and other segment includes the write-off of $9,307,000 of deferred acquisition costs in connection with a coinsurance agreement. See Note 10 for more reinsurance information.