Note 14. Segment Reporting

9 Months Ended

Sep. 30, 2015

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				Nine Months Ended
		September 30,				September 30
		2015		2014		2015		2014
Revenues:
Medical Stop-Loss	$	53,965	$	45,734	$	162,205	$	138,821
Fully  Insured Health		45,193		57,412		141,356		184,839
Group disability, life, annuities and DBL		24,404		16,948		65,879		50,091
Individual life, annuities and other		7,987		8,764		25,287		26,049
Corporate		45		50		137		129
		131,594		128,908		394,864		399,929
Gain on sale of subsidiary to joint venture		10,161		-		10,161		-
Net realized investment gains (losses)		(1,109)		844		2,991		6,914
Net impairment losses recognized in earnings		(228)		-		(228)		-
Total revenues	$	140,418	$	129,752	$	407,788	$	406,843
Income before income taxes:
Medical Stop-Loss	$	6,523	$	6,339	$	16,430	$	15,730
Fully Insured Health (A)		2,399		370		5,231		2,325
Group disability, life, annuities and DBL		4,400		4,057		10,774		7,237
Individual life, annuities and other (B)		3,623		(1,683)		1,238		(4,903)
Corporate		(2,111)		(1,423)		(5,308)		(5,833)
		14,834		7,660		28,365		14,556
Gain on sale of subsidiary to joint venture		10,161		-		10,161		-
Net realized investment gains (losses)		(1,109)		844		2,991		6,914
Net impairment losses recognized in earnings		(228)		-		(228)		-
Interest expense		(444)		(539)		(1,354)		(1,357)
Income before income taxes	$	23,214	$	7,965	$	39,935	$	20,113

(A)                The Fully Insured Health segment includes amortization of intangible assets. Total amortization expense was $425,000 and $493,000 for the three months ended September 30, 2015 and 2014, respectively, and was $1,070,000 and $1,477,000, respectively, for the nine months ended September 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 $213,000 and $1,699,000 for the three months ended September 30, 2015 and 2014, respectively, and $629,000 and $2,938,000 for the nine months ended September 30, 2015 and 2014, respectively.