Note 2. Intangible Assets

12 Months Ended

Dec. 31, 2014

2. Intangible Assets

Intangible assets at December 31, 2014 and 2013 consist of the following (in thousands):

	December 31, 2014						December 31, 2013
	Definitive		Indefinite				Definitive		Indefinite
	Lives (a)		Lives		Total		Lives		Lives		Total
Gross Carrying Value
Balance beginning of period	$	7,442	$	7,500	$	14,942	$	7,625	$	7,500	$	15,125
Adjustment for contingent payment		-		-		-		(183)		-		(183)
Balance end of period		7,442		7,500		14,942		7,442		7,500		14,942

Accumulated Amortization
Balance beginning of period		(3,534)		-		(3,534)		(1,792)		-		(1,792)
Amortization expense		(1,493)		-		(1,493)		(1,742)		-		(1,742)
Balance end of period		(5,027)		-		(5,027)		(3,534)		-		(3,534)

Net intangible assets	$	2,415	$	7,500	$	9,915	$	3,908	$	7,500	$	11,408

Weighted average remaining life in years					2.76						4.23

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

		Year Ending
		December 31,
2015	$	843
2016		614
2017		434
2018		289
2019		203
2020 and thereafter		32

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 which was 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 accordance with the terms of the agreement, the fair value of the contingent liability was re-measured in the first quarter of 2013 resulting in a cash payment of $342,000 and a $183,000 decrease in the related intangible asset.

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. In accordance with the terms of the agreement, $300,000 of the contingent consideration was paid in the fourth quarter of 2013, and the remaining $300,000 was paid in the fourth quarter of 2014.