Note 14. Segment Reporting

6 Months Ended

Jun. 30, 2016

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,
		2016		2015		2016		2015
Revenues:
Medical Stop-Loss (A)	$	8,114	$	52,139	$	15,964	$	106,990
Fully Insured Health		41,683		49,631		81,770		96,163
Group disability, life and DBL		25,677		20,727		51,213		41,475
Individual life, annuities and other (A)		585		8,375		1,336		17,300
Corporate		619		43		1,730		92
		76,678		130,915		152,013		262,020
Net realized investment gains		1,018		2,100		1,578		4,100
Total revenues	$	77,696	$	133,015	$	153,591	$	266,120
Income from continuing operations
before income taxes:
Medical Stop-Loss (A)	$	3,948	$	4,637	$	11,750	$	8,958
Fully Insured Health (B)		1,990		1,555		2,385		2,832
Group disability, life and DBL		1,509		3,159		8,210		6,374
Individual life, annuities and other (A)(C)		315		(1,333)		(1,478)		(2,385)
Corporate		(1,458)		(1,437)		(5,198)		(3,197)
		6,304		6,581		15,669		12,582
Net realized investment gains		1,018		2,100		1,578		4,100
Interest expense		(473)		(478)		(926)		(910)
Income from continuing operations
before income taxes	$	6,849	$	8,203	$	16,321	$	15,772

(A)                Substantially all of the business in the segment is coinsured. The current year’s activity primarily reflects income or expenses related to the coinsurance and the run-off of any remaining blocks that were not coinsured.

(B)                 The Fully Insured Health segment includes amortization of intangible assets. Total amortization expense was $351,000 and $382,000 for the three months ended June 30, 2016 and 2015, respectively, and was $691,000 and $645,000, respectively, for the six months ended June 30, 2016 and 2015. Amortization expense for the other segments is not material to their operating results.

(C)                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 $283,000 and $62,000 for the three months ended June 30, 2016 and 2015, respectively, and $1,653,000 and $416,000 for the six months ended June 30, 2016 and 2015, respectively.