Goodwill and Intangible Assets Disclosure [Text Block]

3 Months Ended

Mar. 31, 2020

Notes

Goodwill and Intangible Assets Disclosure

Note 8.Goodwill and Other Intangible Assets 

The carrying amount of goodwill is $64,827,000 and $60,165,000 at March 31, 2020 and December 31, 2019, respectively, of which $60,165,000 is attributable to the Specialty Health Segment at both March 31, 2020 and December 31, 2019, and $4,662,000 and $0, is attributable to the Group disability, life, DBL and PFL segment for the same periods, respectively.

The Company has net other intangible assets of $13,091,000 and $13,379,000 at March 31, 2020 and December 31, 2019, respectively, which are included in other assets in the Condensed Consolidated Balance Sheets. These intangible assets consist of: (i) finite-lived intangible assets, principally the fair value of acquired agent and broker relationships, which are subject to amortization; and (ii) indefinite-lived intangible assets which consist of the estimated fair value of insurance licenses that are not subject to amortization.

The gross carrying amounts of these other intangible assets are as follows for the periods indicated (in thousands):

		March 31, 2020				December 31, 2019
		Gross				Gross
		Carrying		Accumulated		Carrying		Accumulated
		Amount		Amortization		Amount		Amortization
Finite-lived Intangible Assets:
Agent and broker relationships	$	11,753	$	7,704	$	18,753	$	14,474
Domain		1,000		350		1,000		325
Software systems		780		365		780		332
Total finite-lived	$	13,533	$	8,419	$	20,533	$	15,131

		March 31,		December 31,
		2020		2019
Indefinite-lived Intangible Assets:
Insurance licenses	$	7,977	$	7,977
Total indefinite-lived	$	7,977	$	7,977

As discussed in Note 7, in connection with the acquisition of Abacus in the first quarter of 2020, the Company recorded $4,662,000 of goodwill associated with the Group disability, life, DBL and PFL segment.

Amortization expense is $288,000 and $359,000 for the three months ended March 31, 2020 and 2019, respectively.