Note 12.

Statutory Reporting

The assets, liabilities and results of operations have been reported on the basis of GAAP, which varies from statutory accounting practices (“SAP”) prescribed or permitted by insurance regulatory authorities. The principal differences between SAP and GAAP are that under SAP: (i) certain assets that are non-admitted assets are eliminated from the balance sheet; (ii) acquisition costs for policies are expensed as incurred, while they are deferred and amortized over the estimated life of the policies under GAAP; (iii) the provision that is made for deferred income taxes is different than under GAAP; (iv) the timing of establishing certain reserves is different than under GAAP; and (v) valuation allowances are established against investments.

The amount of reported statutory net income and surplus (shareholders' equity) for the Parent's insurance subsidiaries for the years ended December 31 was as follows:

	2011		2010
Life and Health, net income	$	3,621	$	2,999
Property and Casualty, net income		3,814		3,787
Statutory net income	$	7,435	$	6,786

Life and Health, surplus	$	32,087	$	31,874
Property and Casualty, surplus		37,988		38,717
Statutory surplus	$	70,075	$	70,591

Under the insurance code of the state of jurisdiction in which each insurance subsidiary is domiciled, dividend payments to the Parent by its insurance subsidiaries are subject to certain limitations without the prior approval of the applicable state's Insurance Commissioner. The Parent received dividends of $6,535 and $6,493 in 2011 and 2010, respectively, from its subsidiaries. In 2012, dividend payments by insurance subsidiaries in excess of $7,833 would require prior approval.