Segment Reporting Disclosure [Text Block]

9 Months Ended

Sep. 30, 2020

Notes

Segment Reporting Disclosure

Note 14.Segment Reporting 

The Insurance Group principally engaged in underwriting, administering and/or distributing group and individual specialty benefit products, including disability, supplemental health, pet, and group life insurance.  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,
		2020		2019		2020		2019
Revenues:
Specialty Health (A)	$	60,069	$	48,237	$	160,254	$	149,419
Group disability, life, DBL and PFL		52,728		44,025		160,970		127,068
Individual life, annuities and other (B)		502		459		1,310		1,285
Corporate		(149)		1,514		1,055		4,787
		113,150		94,235		323,589		282,559
Net investment gains		70		930		933		2,556
Net impairment losses recognized in earnings		-		-		-		(646)
Total revenues	$	113,220	$	95,165	$	324,522	$	284,469
Income before income taxes
Specialty Health (A)(C)	$	4,897	$	1,127	$	1,173	$	13,608
Group disability, life, DBL and PFL		8,786		9,985		21,569		19,187
Individual life, annuities and other  (B)(D)		(184)		(640)		(466)		(1,122)
Corporate		(2,860)		(1,983)		(6,398)		(5,124)
		10,639		8,489		15,878		26,549
Net investment gains		70		930		933		2,556
Net impairment losses recognized in earnings		-		-		-		(646)
Income before income taxes	$	10,709	$	9,419	$	16,811	$	28,459

(A)For the three months and nine months ended September 30, 2020, the Specialty Health segment includes $5,641,000 of pretax income recognized upon the receipt of an arbitration award with a former TPA discussed in Note 13. 

(B)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.  

(C)The Specialty Health segment includes a charge of $0 and $3,660,000 for the three and nine months ended September 30, 2020 related to the MCE described in Note 13. 

(D)The Individual life, annuities and other segment includes amortization of deferred charges in connection with the assumptions of certain ceded life and annuity policies of $189,000 and $198,000, for the three months ended September 30, 2020 and 2019, respectively, and $553,000 and $600,000, for the nine months ended September 30, 2020 and 2019, respectively.