Note 13. Segment Reporting

9 Months Ended

Sep. 30, 2014

Notes

Note 13. Segment Reporting

Note 13.          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
		2014		2013		2014		2013
Revenues:
Medical Stop-Loss	$	45,734	$	42,043	$	138,821	$	127,833
Fully  Insured Health(A)		57,412		71,778		184,839		203,896
Group disability, life, annuities and DBL		16,948		15,842		50,091		46,685
Individual life, annuities and other		8,764		9,542		26,049		34,162
Corporate		50		22		129		79
		128,908		139,227		399,929		412,655
Net realized investment gains		844		2,417		6,914		18,771
Total revenues	$	129,752	$	141,644	$	406,843	$	431,426
Income before income taxes:
Medical Stop-Loss	$	6,339	$	3,404	$	15,730	$	9,836
Fully Insured Health (A)		370		615		2,325		474
Group disability, life, annuities and DBL		4,057		2,555		7,237		6,530
Individual life, annuities and other (B)		(1,683)		(40)		(4,903)		(9,207)
Corporate		(1,423)		(2,485)		(5,833)		(5,022)
		7,660		4,049		14,556		2,611
Net realized investment gains		844		2,417		6,914		18,771
Interest expense		(539)		(470)		(1,357)		(1,447)
Income before income taxes	$	7,965	$	5,996	$	20,113	$	19,935

(A)                The Fully Insured Health segment includes amortization of intangible assets. Total amortization expense was $493,000 and $602,000 for the three months ended September 30, 2014 and 2013, respectively, and was $1,477,000 and $1,810,000, respectively, for the nine months ended September 30, 2014 and 2013. Amortization expense for the other segments is not material to their operating results.

(B)                 For the three months and nine months ended September 30, 2014, the Individual life, annuities and other segment includes $1,699,000 and $2,938,000, respectively, of amortization of deferred charges in connection with the assumptions of certain cede life and annuity policies in 2014. 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.