Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

13. SEGMENT INFORMATION

     The Company operates four business segments: Commercial Health, Insphere, Corporate, and Disposed Operations. Through our Commercial Health Division, we underwrite and administer a broad range of health and supplemental insurance products. Insphere includes net commission revenue, agent incentives, marketing costs and costs associated with the continuing development of Insphere. Corporate includes investment income not allocated to the other segments, realized gains or losses, interest expense on corporate debt, the Company’s student loan activity, general expenses relating to corporate operations and operations that do not constitute reportable operating segments. Disposed Operations includes the remaining run out of the Other Insurance Division as well as the residual operations from the disposition and wind down of other businesses prior to 2010.

     Allocations of investment income and certain general expenses are based on a number of assumptions and estimates, and the business segments reported operating results would change if different allocation methods were applied. Certain assets are not individually identifiable by segment and, accordingly, have been allocated by formulas. Segment revenues include premiums and other policy charges and considerations, net investment income, commission revenue, fees and other income. Management does not allocate income taxes to segments. Transactions between reportable segments are accounted for under respective agreements, which provide for such transactions generally at cost.

     Revenue from continuing operations, income from continuing operations before income taxes, and assets by operating segment are set forth in the tables below:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
				(In thousands)
Revenue from continuing operations:
Commercial Health Division:	$	141,867		$	192,151		$	448,538		$	620,755
Insphere:		18,423			11,511			52,687			24,524
Corporate:		5,572			4,762			21,639			17,173
Intersegment Eliminations:		(4,933	)		(3,027	)		(13,184	)		(7,116	)
Total revenues excluding disposed operations		160,929			205,397			509,680			655,336
Disposed Operations:		391			746			1,208			1,934
Total revenue from continuing operations	$	161,320		$	206,143		$	510,888		$	657,270

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
				(In thousands)
Income (loss) from continuing operations before federal income taxes:
Commercial Health Division:	$	30,343		$	89,474		$	75,923		$	187,883
Insphere:		(12,400	)		(23,341	)		(39,614	)		(69,862	)
Corporate:		(8,300	)		(33,088	)		(20,949	)		(65,326	)
Total operating income excluding disposed operations		9,643			33,045			15,360			52,695
Disposed Operations		667			1,149			1,293			2,008
Total income from continuing operations before federal income taxes	$	10,310		$	34,194		$	16,653		$	54,703

     Assets by operating segment at September 30, 2011 and December 31, 2010 are set forth in the table below:

	September 30,		December 31,
	2011		2010
	(In thousands)
Assets:
Commercial Health Division:	$	408,873	$	490,088
Insphere:		65,206		77,139
Corporate:		834,801		769,105
Total assets excluding assets of Disposed Operations		1,308,880		1,336,332
Disposed Operations		375,342		383,319
Total assets	$	1,684,222	$	1,719,651

     Disposed Operations assets at September 30, 2011 and December 31, 2010 primarily represent a reinsurance recoverable for the ceding of the former Life Insurance Division business as a result of coinsurance agreements entered into in 2008.