Note 15. Segment Reporting

9 Months Ended

Sep. 30, 2013

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 is presented below for the periods indicated (in thousands):

			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			2013		2012		2013		2012
Revenues:
Medical Stop-Loss		$	42,043	$	38,286	$	127,833	$	107,844
Fully  Insured Health			71,778		45,357		203,896		124,033
Group disability, life, annuities and DBL			15,842		13,160		46,685		38,901
Individual life, annuities and other			9,542		13,666		34,162		40,517
Corporate			22		22		79		512
			139,227		110,491		412,655		311,807
Net realized investment gains			2,417		1,011		18,771		3,998
Other-than-temporary impairment losses			-		-		-		(704)
Total revenues		$	141,644	$	111,502	$	431,426	$	315,101
Income from operations
	before income taxes:
Medical Stop-Loss		$	3,404	$	2,853	$	9,836	$	12,787
Fully Insured Health(A)			615		1,461		474		4,619
Group disability, life, annuities and DBL			2,555		3,590		6,530		4,292
Individual life, annuities and other(B)			(40)		852		(9,207)		1,050
Corporate			(2,485)		(2,677)		(5,022)		(5,781)
			4,049		6,079		2,611		16,967
Net realized investment gains			2,417		1,011		18,771		3,998
Other-than-temporary impairment losses			-		-		-		(704)
Interest expense			(470)		(509)		(1,447)		(1,588)
Income from operations before
income taxes		$	5,996	$	6,581	$	19,935	$	18,673

(A)                The Fully Insured Health segment includes amortization of intangible assets. Total amortization expense was $602,000 and $624,000 for the three months ended September 30, 2013 and 2012, respectively, and was $1,810,000 and $1,829,000, respectively, for the nine months ended September 30, 2013 and 2012. Amortization expense for the other segments is not material to their operating results.

(B)                 For the nine months ended September 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 11 for more reinsurance information.