Segment Reporting Disclosure [Text Block]

9 Months Ended

Sep. 30, 2017

Notes

Segment Reporting Disclosure

Note 15.    Segment Reporting 

The Insurance Group principally engages in the life and health insurance business. Interest expense, taxes, and general expenses associated with parent company activities are included in Corporate. Identifiable assets by segment are those assets that are utilized in each segment and are allocated based upon the mean reserves and liabilities of each such segment. Corporate assets are composed principally of cash equivalents, resale agreements, fixed maturities, equity securities, partnership interests and certain other investments.

Information by business segment is presented below for the periods indicated (in thousands):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2017		2016		2017		2016
Revenues:
Specialty Health	$	55,502	$	44,684	$	152,292	$	126,454
Group disability; life and DBL		26,112		26,196		78,985		77,409
Individual life, annuities and other (A)		455		717		1,494		2,053
Medical Stop-Loss (A)		576		5,433		2,549		21,397
Corporate		392		620		1,522		2,350
		83,037		77,650		236,842		229,663
Net realized investment gains		715		2,367		987		3,945
Net impairment losses recognized in earnings		-		(1,475)		-		(1,475)
Total revenues	$	83,752	$	78,542	$	237,829	$	232,133
Income from continuing operations
before income taxes:
Specialty Health (B)	$	5,238	$	1,369	$	9,412	$	3,754
Group disability; life and DBL		5,144		5,323		12,777		13,533
Individual life, annuities and other  (A) (C)		(385)		(410)		(532)		(1,888)
Medical Stop-Loss (A)		(538)		2,176		2,752		13,926
Corporate		(2,295)		(1,908)		(6,042)		(7,106)
		7,164		6,550		18,367		22,219
Net realized investment gains		715		2,367		987		3,945
Net impairment losses recognized in earnings		-		(1,475)		-		(1,475)
Interest expense		-		(440)		-		(1,366)
Income from continuing operations
before income taxes	$	7,879	$	7,002	$	19,354	$	23,323

(A)   Substantially all of the business in the segment is coinsured. Activity in this segment primarily reflects income or expenses related to the coinsurance and the run-off of any remaining blocks that were not coinsured.  

(B)   The Specialty Health segment includes amortization of intangible assets. Total amortization expense was $393,000 and $366,000 for the three months ended September 30, 2017 and 2016, respectively, and was $941,000 and $1,057,000, respectively, for the nine months ended September 30, 2017 and 2016. 

(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 $368,000 and $296,000 for the three months ended September 30, 2017 and 2016, respectively, and $937,000 and $1,949,000 for the nine months ended September 30, 2017 and 2016, respectively.