Note 13. Segment Reporting

6 Months Ended

Jun. 30, 2015

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				Six Months Ended
		June 30,				June 30
		2015		2014		2015		2014
Revenues:
Medical Stop-Loss	$	52,228	$	45,499	$	108,240	$	93,087
Fully  Insured Health		49,631		60,888		96,163		127,427
Group disability, life, annuities and DBL		20,727		16,716		41,475		33,143
Individual life, annuities and other		8,376		8,347		17,300		17,285
Corporate		43		50		92		79
		131,005		131,500		263,270		271,021
Net realized investment gains		2,100		4,519		4,100		6,070
Total revenues	$	133,105	$	136,019	$	267,370	$	277,091
Income before income taxes:
Medical Stop-Loss	$	4,554	$	4,653	$	9,907	$	9,391
Fully Insured Health (A)		1,555		47		2,832		1,955
Group disability, life, annuities and DBL		3,159		2,003		6,374		3,180
Individual life, annuities and other (B)		(1,332)		(2,111)		(2,385)		(3,220)
Corporate		(1,437)		(2,491)		(3,197)		(4,410)
		6,499		2,101		13,531		6,896
Net realized investment gains		2,100		4,519		4,100		6,070
Interest expense		(478)		(337)		(910)		(818)
Income before income taxes	$	8,121	$	6,283	$	16,721	$	12,148

(A)                The Fully Insured Health segment includes amortization of intangible assets. Total amortization expense was $382,000 and $492,000 for the three months ended June 30, 2015 and 2014, respectively, and was $645,000 and $984,000, respectively, for the six months ended June 30, 2015 and 2014. Amortization expense for the other segments is not material to their operating results.

(B)                 The Individual life, annuities and other segment includes amortization of deferred charges in connection with the assumptions of certain ceded life and annuity policies amounting to $62,000 and $1,128,000 for the three months ended June 30, 2015 and 2014, respectively, and $416,000 and $1,239,000 for the six months ended June 30, 2015 and 2014, respectively.