Note 3. Intangible Assets

12 Months Ended

Dec. 31, 2012

Notes

Note 3. Intangible Assets

3.  Intangible Assets

Intangible assets at December 31, 2012 and 2011 consist of the following (in thousands):

	December 31, 2012						December 31, 2011
	Definitive		Indefinite				Definitive		Indefinite
	Lives (a)		Lives		Total		Lives		Lives		Total
Gross Carrying Value
Balance beginning of period	$	9,373	$	100	$	9,473	$	9,373	$	100	$	9,473
Additions		2,925		-		2,925		-		-		-
Balance end of period		12,298		100		12,398		9,373		100		9,473
Accumulated Amortization
Balance beginning of period		(8,567)		-		(8,567)		(7,784)		-		(7,784)
Amortization expense		(452)		-		(452)		(783)		-		(783)
Balance end of period		(9,019)		-		(9,019)		(8,567)		-		(8,567)
Net intangible assets	$	3,279	$	100	$	3,379	$	806	$	100	$	906
Weighted average remaining life in years					2.11						0.96

Expected amortization expense for the next five years is as follows (in thousands):

		Year Ending
		December 31,
2013	$	937
2014		755
2015		570
2016		410
2017		285
2018 and thereafter		322

In July 2012, AMIC acquired the assets and renewal contract rights of a MGU of medical stop-loss business for an aggregate purchase price of $1,825,000.  The purchase price consisted of $1,300,000 in cash and $525,000 in contingent consideration expected to be paid in early 2013 based on expected growth in the acquired block of business.  AMIC recorded other intangible assets representing broker relationships, which will be amortized over a weighted average period of 7.0 years.

In November 2012, AMIC entered into a consulting agreement to continue writing certain medical stop-loss business for an aggregate fee of $1,100,000.  The fee consisted of $500,000 in cash and $600,000 in contingent consideration expected to be paid in 2013 and 2014 based on the expected block of business.  AMIC recorded other intangible assets representing broker relationships, which will be amortized over a weighted average period of 7.0 years.