Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Nov. 03, 2014 | Jun. 30, 2014 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Independence Holding Company | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000701869 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 17,371,040 | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Entity Public Float | ' | ' | $107,255 |
INDEPENDENCE_HOLDING_COMPANY_C
INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (September 30, 2014 Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Investments: | ' | ' | ||
Short-term investments | $50 | $50 | ||
Securities purchased under agreements to resell | 16,413 | 22,594 | ||
Trading securities | 11,370 | 7,125 | ||
Fixed maturities, available-for-sale | 566,612 | 542,287 | ||
Equity securities, available-for-sale | 13,121 | 11,803 | ||
Other investments | 26,406 | 25,123 | ||
Total investments | 633,972 | 608,982 | ||
Cash and cash equivalents | 18,215 | 24,229 | ||
Deferred acquisition costs | 30,302 | 29,777 | ||
Due and unpaid premiums | 61,820 | 59,435 | ||
Due from reinsurers | 280,023 | 380,229 | ||
Premium and claim funds | 39,509 | 37,353 | ||
Goodwill | 50,318 | 50,318 | ||
Other assets | 54,244 | 78,712 | ||
TOTAL ASSETS | 1,168,403 | 1,269,035 | ||
LIABILITIES: | ' | ' | ||
Policy benefits and claims | 227,877 | 237,754 | ||
Future policy benefits | 277,878 | 287,449 | ||
Funds on deposit | 194,140 | 274,826 | ||
Unearned premiums | 8,731 | 12,423 | ||
Other policyholders' funds | 19,244 | 25,129 | ||
Due to reinsurers | 37,999 | 37,113 | ||
Accounts payable, accruals and other liabilities | 66,274 | 71,889 | ||
Debt | 4,000 | 6,000 | ||
Junior subordinated debt securities | 38,146 | 38,146 | ||
TOTAL LIABILITIES | 874,289 | 990,729 | ||
IHC STOCKHOLDERS' EQUITY: | ' | ' | ||
Preferred stock | ' | [1] | ' | [1] |
Common Stock | 18,531 | [2],[3] | 18,524 | [2],[4] |
Paid-in capital | 126,999 | 126,239 | ||
Accumulated other comprehensive income (loss) | -3,195 | -10,472 | ||
Treasury stock, at cost | -12,141 | [5] | -8,169 | [6] |
Retained earnings | 154,256 | 142,669 | ||
TOTAL IHC STOCKHOLDERS' EQUITY | 284,450 | 268,791 | ||
NONCONTROLLING INTERESTS IN SUBSIDIARIES | 9,664 | 9,515 | ||
TOTAL EQUITY | 294,114 | 278,306 | ||
TOTAL LIABILITIES AND EQUITY | $1,168,403 | $1,269,035 | ||
[1] | None issued. | |||
[2] | $1.00 par value. | |||
[3] | 23,000,000 shares authorized, 18,531,158 shares issued and 17,371,040 shares outstanding. | |||
[4] | 23,000,000 shares authorized, 18,523,733 shares issued and 17,660,390 shares outstanding. | |||
[5] | 1,160,118 treasury shares | |||
[6] | 863,343 treasury shares |
INDEPENDENCE_HOLDING_COMPANY_C1
INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (September 30, 2014 Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
STATEMENT OF FINANCIAL POSITION | ' | ' |
Preferred Stock, shares issued | 0 | 0 |
Common Stock, par value | $1 | $1 |
Common Stock, shares authorized | 23,000,000 | 23,000,000 |
Common Stock, shares issued | 18,531,158 | 18,523,733 |
Common Stock, shares outstanding | 17,371,040 | 17,660,390 |
Treasury Stock, shares | 1,160,118 | 863,343 |
INDEPENDENCE_HOLDING_COMPANY_C2
INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
REVENUES: | ' | ' | ' | ' |
Premiums earned | $117,705 | $125,174 | $362,110 | $368,007 |
Net investment income | 5,439 | 6,841 | 16,674 | 21,844 |
Fee income | 4,813 | 6,290 | 18,013 | 18,871 |
Other income | 951 | 922 | 3,132 | 3,933 |
Net realized investment gains | 844 | 2,417 | 6,914 | 18,771 |
TOTAL REVENUES | 129,752 | 141,644 | 406,843 | 431,426 |
EXPENSES: | ' | ' | ' | ' |
Insurance benefits, claims and reserves | 74,916 | 88,177 | 243,488 | 262,913 |
Selling, general and administrative expenses | 44,916 | 45,597 | 137,998 | 133,339 |
Amortization of deferred acquisition costs | 1,416 | 1,404 | 3,887 | 13,792 |
Interest expense on debt | 539 | 470 | 1,357 | 1,447 |
TOTAL EXPENSES | 121,787 | 135,648 | 386,730 | 411,491 |
Income (loss) before income taxes | 7,965 | 5,996 | 20,113 | 19,935 |
Income taxes (benefits) | 3,141 | 2,080 | 7,404 | 6,821 |
Net income (loss) | 4,824 | 3,916 | 12,709 | 13,114 |
(Income) loss from noncontrolling interests in subsidiaries | -114 | -277 | -450 | -1,083 |
NET INCOME (LOSS) ATTRIBUTABLE TO IHC | $4,710 | $3,639 | $12,259 | $12,031 |
Basic income (loss) per common share | $0.27 | $0.21 | $0.70 | $0.68 |
WEIGHTED AVERAGE SHARES OUTSTANDING | 17,410 | 17,683 | 17,505 | 17,784 |
Diluted income (loss) per common share | $0.27 | $0.21 | $0.69 | $0.67 |
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING | 17,578 | 17,735 | 17,665 | 17,890 |
INDEPENDENCE_HOLDING_COMPANY_C3
INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
STATEMENT OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income (loss) | $4,824 | $3,916 | $12,709 | $13,114 |
Unrealized gains (losses) on available-for-sale securities | -2,348 | -3,969 | 10,672 | -31,965 |
Tax (benefit) on unrealized gains (losses) on available-for-sale securities | -550 | -1,454 | 3,327 | -10,359 |
Unrealized gains (losses) on available-for-sale securities, net of tax | -1,798 | -2,515 | 7,345 | -21,606 |
Unrealized gains (losses) on cash flow hedge, pre-tax | 69 | 97 | 107 | 142 |
Tax (benefit) on unrealized gains (losses) on cash flow hedge | 28 | 39 | 43 | 57 |
Unrealized gains (losses) on cash flow hedge, net of taxes | 41 | 58 | 64 | 85 |
Other comprehensive income (loss), net of tax | -1,757 | -2,457 | 7,409 | -21,521 |
Comprehensive income (loss), net of tax | 3,067 | 1,459 | 20,118 | -8,407 |
(Income) loss from noncontrolling interests in subsidiaries | -114 | -277 | -450 | -1,083 |
Net unrealized (gains) losses on available-for-sale securities, net of tax, attributable to noncontrolling interests | 81 | -6 | -132 | 550 |
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests | 81 | -6 | -132 | 550 |
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests | -33 | -283 | -582 | -533 |
Comprehensive income (loss), net of tax, attributable to IHC | $3,034 | $1,176 | $19,536 | ($8,940) |
INDEPENDENCE_HOLDING_COMPANY_C4
INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) | COMMON STOCK | PAID-IN CAPITAL | ACCUMULATED OTHER COMPREHENSIVE INCOME(LOSS) | TREASURY STOCK, AT COST | RETAINED EARNINGS | TOTAL IHC STOCKHOLDERS' EQUITY | NON-CONTROLLING INTERESTS | Total | |
In Thousands | |||||||||
Stockholders Equity at Dec. 31, 2013 | $18,524 | $126,239 | ($10,472) | ($8,169) | $142,669 | $268,791 | $9,515 | $278,306 | |
Net income (loss) | ' | ' | ' | ' | 12,259 | 12,259 | 450 | 12,709 | |
Other comprehensive income (loss), net of tax | ' | ' | 7,277 | ' | ' | 7,277 | 132 | 7,409 | |
Repurchases of common stock | ' | ' | ' | -3,972 | ' | -3,972 | ' | -3,972 | |
Common stock dividend | ' | ' | ' | ' | -613 | -613 | ' | -613 | [1] |
Share-based compensation and related tax effects | 7 | 669 | ' | ' | ' | 676 | ' | 676 | |
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | -472 | -472 | |
Other capital transactions | ' | 91 | ' | ' | -59 | 32 | 39 | 71 | |
Stockholders Equity at Sep. 30, 2014 | $18,531 | $126,999 | ($3,195) | ($12,141) | $154,256 | $284,450 | $9,664 | $294,114 | |
[1] | $0.035 per share |
INDEPENDENCE_HOLDING_COMPANY_C5
INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (Unaudited) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | ' |
Common stock dividends declared, per share | $0.04 |
INDEPENDENCE_HOLDING_COMPANY_C6
INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS PROVIDED BY (USED BY) OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $12,709 | $13,114 |
Adjustments to reconcile net income to net change in cash from operating activities: | ' | ' |
Amortization of deferred acquisition costs | 3,887 | 13,792 |
Net realized investment gains | -6,914 | -18,771 |
Equity income from equity method investments | -1,030 | -2,150 |
Depreciation and amortization | 2,971 | 3,483 |
Share-based compensation expense | 594 | 956 |
Deferred tax expense (benefits) | 4,146 | 3,891 |
Other adjustments to reconcile net income | 6,605 | 3,689 |
Changes in assets and liabilities: | ' | ' |
Net sales (purchases) of trading securities | -4,501 | 1,747 |
Change in insurance liabilities | -106,540 | 27,441 |
(Additions) reductions to deferred acquisition costs, net | -4,551 | -4,382 |
Change in amount due from reinsurers | 100,206 | -210,922 |
Change in premium and claim funds | -2,156 | -199 |
Change in current income tax liability | 5,110 | 2,761 |
Change in due and unpaid premiums | -2,385 | -8,913 |
Change in other assets | 3,842 | -196 |
Change in other liabilities | -6,344 | 1,326 |
Net change in cash from operating activities | 5,649 | -173,333 |
CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES: | ' | ' |
Net sales (purchases) of securities under resale and repurchase agreements | 6,181 | -80 |
Sales of equity securities | 288 | 10,029 |
Purchases of equity securities | -1,228 | ' |
Sales of fixed maturities | 295,964 | 518,399 |
Maturities and other repayments of fixed maturities | 32,993 | 44,692 |
Purchases of fixed maturities | -338,639 | -413,937 |
Other investing activites | 2,681 | 16,724 |
Net change in cash from investing activities | -1,760 | 175,827 |
CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES: | ' | ' |
Payments for repurchases of common stock | -3,953 | -2,898 |
Cash paid in acquisitions of noncontrolling interests | ' | -1,199 |
Proceeds (withdrawals) of investment-type insurance contracts | -2,286 | -2,342 |
Repayment of long-term debt | -2,000 | -2,000 |
Dividends paid | -1,233 | -620 |
Proceeds from exercise of stock options | ' | 400 |
Other financing activities | -431 | -945 |
Net change in cash from financing activities | -9,903 | -9,604 |
Net change in cash and cash equivalents | -6,014 | -7,110 |
Cash and cash equivalents, beginning of period | 24,229 | 23,945 |
Cash and cash equivalents, end of period | $18,215 | $16,835 |
Note_1_Organization_Consolidat
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Notes | ' |
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies | ' |
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies | |
(A) Business and Organization | |
Independence Holding Company, a Delaware corporation (“IHC”), is a holding company principally engaged in the life and health insurance business through: (i) its insurance companies, Standard Security Life Insurance Company of New York ("Standard Security Life"), Madison National Life Insurance Company, Inc. ("Madison National Life"), Independence American Insurance Company (“Independence American”); and (ii) its marketing and administrative companies, including IHC Risk Solutions, LLC, IHC Health Solutions, Inc., IHC Specialty Benefits Inc. and IHC Carrier Solutions, Inc. IHC also owns a significant equity interest in a managing general underwriter (“MGU”) that writes medical stop-loss. Standard Security Life, Madison National Life and Independence American are sometimes collectively referred to as the “Insurance Group”. IHC and its subsidiaries (including the Insurance Group) are sometimes collectively referred to as the "Company", or “IHC”, or are implicit in the terms “we”, “us” and “our”. | |
Geneve Corporation, a diversified financial holding company, and its affiliated entities, held 52.7% of IHC's outstanding common stock at September 30, 2014. | |
(B) Consolidation | |
American Independence Corp. | |
The Company owned approximately 90% of the outstanding common stock of American Independence Corp. ("AMIC") at both September 30, 2014 and December 31, 2013. AMIC is an insurance holding company engaged in the insurance and reinsurance business. | |
(C) Basis of Presentation | |
The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Financial Statements include the accounts of IHC and its consolidated subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect: (i) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (ii) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. IHC’s annual report on Form 10-K as filed with the Securities and Exchange Commission should be read in conjunction with the accompanying Condensed Consolidated Financial Statements. | |
In the opinion of management, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods have been included. The condensed consolidated results of operations for the three months and nine months ended September 30, 2014 are not necessarily indicative of the results to be anticipated for the entire year. | |
(D) Reclassifications | |
Certain amounts in prior year’s Condensed Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2014 presentation. | |
(E) Recent Accounting Pronouncements | |
Recently Adopted Accounting Standards | |
In July 2013, the Financial Accounting Standards Board (“FASB”), issued guidance for the presentation of unrecognized tax benefits to better reflect the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The adoption of this guidance, effective January 1, 2014, did not have an effect on the Company’s consolidated financial statements. | |
In July 2011, the FASB issued guidance specifying that the liability for the fees paid to the Federal Government by health insurers as a result of recent healthcare reform legislation should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense using a straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. The amendments in this Update became effective January 1, 2014 and in accordance with the provisions, IHC recorded the estimated gross liability for the mandated fees payable to the Federal Government of $1,500,000 and the corresponding deferred cost in the first quarter of 2014. The amounts were recorded in accounts payable, accruals and other liabilities and in other assets, respectively, on the Condensed Consolidated Balance Sheet. The deferred asset is being amortized ratably over the calendar year to selling, general and administrative expense in the Condensed Consolidated Statement of Income. Upon final assessment in June 2014, the Company increased its gross liability for the mandated fees payable to the Federal Government to $1,816,000. | |
Recently Issued Accounting Standards Not Yet Adopted | |
In June 2014, the FASB issued explicit guidance for entities that grant their employees share-based payments in which the terms of the award include a performance target that affects vesting and could be achieved after the requisite service period. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Earlier adoption is permitted. The guidance may be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued revenue recognition guidance for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards such as insurance contracts or lease contracts. The amendment provides specific steps that an entity should apply in order to achieve its main objective which is recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and requires one of two specified retrospective methods of application. Early application is prohibited. Management has not yet determined the impact that the adoption of this guidance will have on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued guidance: (i) improving the definition of discontinued operations by limiting the reporting of discontinued operations to disposals of components that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results; and (ii) requiring expanded disclosures for discontinued operations. Public entities are required to apply this guidance to: (i) all disposals (or classifications as held for sale) of components of the entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years; and (ii) to all businesses that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously issued financial statements. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. |
Note_2_Income_Per_Common_Share
Note 2. Income Per Common Share | 9 Months Ended |
Sep. 30, 2014 | |
Notes | ' |
Note 2. Income Per Common Share | ' |
Note 2. Income Per Common Share | |
Diluted earnings per share was computed using the treasury stock method and includes incremental common shares, primarily from the dilutive effect of share-based payment awards, amounting to 168,000 and 160,000 shares for the three months and nine months ended September 30, 2014, respectively, and 52,000 and 106,000 shares for the three months and nine months ended September 30, 2013, respectively. |
Note_3_Investment_Securities
Note 3. Investment Securities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Notes | ' | ||||||||||||||||
Note 3. Investment Securities | ' | ||||||||||||||||
Note 3. Investment Securities | |||||||||||||||||
The cost (amortized cost with respect to certain fixed maturities), gross unrealized gains, gross unrealized losses and fair value of investment securities are as follows for the periods indicated (in thousands): | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
GROSS | GROSS | ||||||||||||||||
AMORTIZED | UNREALIZED | UNREALIZED | FAIR | ||||||||||||||
COST | GAINS | LOSSES | VALUE | ||||||||||||||
FIXED MATURITIES | |||||||||||||||||
AVAILABLE-FOR-SALE: | |||||||||||||||||
Corporate securities | $ | 244,113 | $ | 410 | $ | (4,692) | $ | 239,831 | |||||||||
CMOs - residential (1) | 3,158 | 20 | (13) | 3,165 | |||||||||||||
CMOs - commercial | 975 | - | (51) | 924 | |||||||||||||
U.S. Government obligations | 22,760 | 25 | - | 22,785 | |||||||||||||
Agency MBS - residential (2) | 69 | 3 | - | 72 | |||||||||||||
GSEs (3) | 16,505 | 12 | (150) | 16,367 | |||||||||||||
States and political subdivisions | 234,610 | 2,560 | (3,017) | 234,153 | |||||||||||||
Foreign government obligations | 45,724 | 168 | (694) | 45,198 | |||||||||||||
Redeemable preferred stocks | 4,036 | 100 | (19) | 4,117 | |||||||||||||
Total fixed maturities | $ | 571,950 | $ | 3,298 | $ | (8,636) | $ | 566,612 | |||||||||
EQUITY SECURITIES | |||||||||||||||||
AVAILABLE-FOR-SALE: | |||||||||||||||||
Common stocks | $ | 8,452 | $ | 700 | $ | (145) | $ | 9,007 | |||||||||
Nonredeemable preferred stocks | 4,004 | 113 | (3) | 4,114 | |||||||||||||
Total equity securities | $ | 12,456 | $ | 813 | $ | (148) | $ | 13,121 | |||||||||
December 31, 2013 | |||||||||||||||||
GROSS | GROSS | ||||||||||||||||
AMORTIZED | UNREALIZED | UNREALIZED | FAIR | ||||||||||||||
COST | GAINS | LOSSES | VALUE | ||||||||||||||
FIXED MATURITIES | |||||||||||||||||
AVAILABLE-FOR-SALE: | |||||||||||||||||
Corporate securities | $ | 215,412 | $ | 1,315 | $ | (7,467) | $ | 209,260 | |||||||||
CMOs - residential (1) | 2,457 | 8 | (8) | 2,457 | |||||||||||||
CMOs - commercial | 975 | - | (382) | 593 | |||||||||||||
U.S. Government obligations | 15,596 | 271 | (6) | 15,861 | |||||||||||||
Agency MBS - residential (2) | 79 | 4 | - | 83 | |||||||||||||
GSEs (3) | 28,484 | 4 | (340) | 28,148 | |||||||||||||
States and political subdivisions | 256,645 | 2,435 | (9,377) | 249,703 | |||||||||||||
Foreign government obligations | 34,437 | 20 | (2,107) | 32,350 | |||||||||||||
Redeemable preferred stocks | 4,036 | 74 | (278) | 3,832 | |||||||||||||
Total fixed maturities | $ | 558,121 | $ | 4,131 | $ | (19,965) | $ | 542,287 | |||||||||
EQUITY SECURITIES | |||||||||||||||||
AVAILABLE-FOR-SALE: | |||||||||||||||||
Common stocks | $ | 7,517 | $ | 328 | $ | (70) | $ | 7,775 | |||||||||
Nonredeemable preferred stocks | 4,004 | 58 | (34) | 4,028 | |||||||||||||
Total equity securities | $ | 11,521 | $ | 386 | $ | (104) | $ | 11,803 | |||||||||
(1) Collateralized mortgage obligations (“CMOs”). | |||||||||||||||||
(2) Mortgage-backed securities (“MBS”). | |||||||||||||||||
(3) Government-sponsored enterprises (“GSEs”) are private enterprises established and chartered by the Federal Government or its various insurance and lease programs which carry the full faith and credit obligation of the U.S. Government. | |||||||||||||||||
The amortized cost and fair value of fixed maturities available-for-sale at September 30, 2014, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. CMOs and MBSs are shown separately, as they are not due at a single maturity. | |||||||||||||||||
AMORTIZED | FAIR | ||||||||||||||||
COST | VALUE | ||||||||||||||||
Due in one year or less | $ | 15,306 | $ | 15,162 | |||||||||||||
Due after one year through five years | 87,574 | 87,064 | |||||||||||||||
Due after five years through ten years | 219,861 | 217,224 | |||||||||||||||
Due after ten years | 229,530 | 227,660 | |||||||||||||||
CMOs and MBSs | 19,679 | 19,502 | |||||||||||||||
$ | 571,950 | $ | 566,612 | ||||||||||||||
The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and gross unrealized loss by length of time those securities that have continuously been in an unrealized loss position for the periods indicated (in thousands): | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||
Corporate securities | $ | 107,877 | $ | 1,754 | $ | 83,832 | $ | 2,938 | $ | 191,709 | $ | 4,692 | |||||
CMO’s - residential | 1,657 | 13 | - | - | 1,657 | 13 | |||||||||||
CMOs - commercial | - | - | 924 | 51 | 924 | 51 | |||||||||||
GSEs | 9,164 | 80 | 2,516 | 70 | 11,680 | 150 | |||||||||||
States and political subdivisions | 59,372 | 627 | 95,235 | 2,390 | 154,607 | 3,017 | |||||||||||
Foreign government obligations | 21,238 | 187 | 18,499 | 507 | 39,737 | 694 | |||||||||||
Redeemable preferred stocks | 3,743 | 19 | - | - | 3,743 | 19 | |||||||||||
Total fixed maturities | 203,051 | 2,680 | 201,006 | 5,956 | 404,057 | 8,636 | |||||||||||
Common stocks | 2,610 | 145 | - | - | 2,610 | 145 | |||||||||||
Nonredeemable preferred stocks | 1,407 | 3 | - | - | 1,407 | 3 | |||||||||||
Total equity securities | 4,017 | 148 | - | - | 4,017 | 148 | |||||||||||
Total temporarily impaired | |||||||||||||||||
securities | $ | 207,068 | $ | 2,828 | $ | 201,006 | $ | 5,956 | $ | 408,074 | $ | 8,784 | |||||
Number of securities in an | |||||||||||||||||
unrealized loss position | 76 | 65 | 141 | ||||||||||||||
31-Dec-13 | |||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||
Corporate securities | $ | 124,531 | $ | 5,340 | $ | 21,070 | $ | 2,127 | $ | 145,601 | $ | 7,467 | |||||
CMO’s - residential | 2,047 | 8 | - | - | 2,047 | 8 | |||||||||||
CMOs - commercial | - | - | 593 | 382 | 593 | 382 | |||||||||||
U.S. Government obligations | 493 | 6 | - | - | 493 | 6 | |||||||||||
GSEs | 22,731 | 123 | 5,360 | 217 | 28,091 | 340 | |||||||||||
States and political subdivisions | 149,704 | 7,312 | 32,983 | 2,065 | 182,687 | 9,377 | |||||||||||
Foreign government obligations | 27,587 | 1,766 | 3,523 | 341 | 31,110 | 2,107 | |||||||||||
Redeemable preferred stocks | 3,485 | 278 | - | - | 3,485 | 278 | |||||||||||
Total fixed maturities | 330,578 | 14,833 | 63,529 | 5,132 | 394,107 | 19,965 | |||||||||||
Common stocks | 2,589 | 70 | - | - | 2,589 | 70 | |||||||||||
Nonredeemable preferred stocks | 2,625 | 34 | - | - | 2,625 | 34 | |||||||||||
Total equity securities | 5,214 | 104 | - | - | 5,214 | 104 | |||||||||||
Total temporarily impaired | |||||||||||||||||
securities | $ | 335,792 | $ | 14,937 | $ | 63,529 | $ | 5,132 | $ | 399,321 | $ | 20,069 | |||||
Number of securities in an | |||||||||||||||||
unrealized loss position | 126 | 27 | 153 | ||||||||||||||
Substantially all of the unrealized losses on fixed maturities available-for-sale at September 30, 2014 and December 31, 2013 relate to investment grade securities and are attributable to changes in market interest rates. Because the Company does not intend to sell, nor is it more likely than not that the Company will have to sell such investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2014. | |||||||||||||||||
Net realized investment gains (losses) are as follows for periods indicated (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Sales of available-for-sale securities: | |||||||||||||||||
Fixed maturities | $ | 1,641 | $ | 2,045 | $ | 7,709 | $ | 18,321 | |||||||||
Preferred stocks | - | - | (5) | 177 | |||||||||||||
Total sales of available-for-sale securities | 1,641 | 2,045 | 7,704 | 18,498 | |||||||||||||
Sales of trading securities | 321 | 744 | 351 | 1,129 | |||||||||||||
Other gains (losses) | (108) | (199) | (683) | (853) | |||||||||||||
Total realized gains (losses) | 1,854 | 2,590 | 7,372 | 18,774 | |||||||||||||
Unrealized gains (losses) on trading securities: | |||||||||||||||||
Change in unrealized gains (losses) on trading securities | (1,010) | (173) | (458) | (3) | |||||||||||||
Total unrealized gains (losses) on trading securities | (1,010) | (173) | (458) | (3) | |||||||||||||
Net realized investment gains (losses) | $ | 844 | $ | 2,417 | $ | 6,914 | $ | 18,771 | |||||||||
For the three months and nine months ended September 30, 2014, proceeds from sales of available-for-sale securities were $71,845,000 and $297,372,000, respectively, and the Company realized gross gains of $1,794,000 and $8,398,000, respectively, and gross losses of $153,000 and $694,000, respectively, as a result of those sales. For the three months and nine months ended September 30, 2013, proceeds from sales of available-for-sale securities were $57,418,000 and $528,428,000, respectively, and the Company realized gross gains of $2,324,000 and $21,060,000, respectively, and gross losses of $279,000 and $2,562,000, respectively, as a result of those sales. | |||||||||||||||||
Other-Than-Temporary Impairment Evaluations | |||||||||||||||||
We recognize an other-than-temporary impairment loss in earnings in the period that we determine: 1) we intend to sell the security; 2) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or 3) the security has a credit loss. Any non-credit portion of the other-than-temporary impairment loss is recognized in other comprehensive income (loss). See Note 1G(vi) to the Consolidated Financial Statements in the 2013 Annual Report for further discussion of the factors considered by management in its regular review to identify and recognize other-than-temporary impairments on available-for-sale securities. The Company did not recognize any other-than-temporary impairments on available-for-sale securities in 2014 or 2013. | |||||||||||||||||
Credit losses were recognized on certain fixed maturities for which each security also had an impairment loss recognized in other comprehensive income (loss). The rollforward of these credit losses were as follows for the periods indicated (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of year | $ | 473 | $ | 563 | $ | 473 | $ | 1,976 | |||||||||
Additional credit losses for which an other-than- | |||||||||||||||||
temporary loss was previously recognized | - | - | - | - | |||||||||||||
Securities sold | - | - | - | (1,413) | |||||||||||||
Balance at end of period | $ | 473 | $ | 563 | $ | 473 | $ | 563 | |||||||||
The after-tax portion of other-than-temporary impairments included in accumulated other comprehensive income (loss) at both September 30, 2014 and December 31, 2013 consists of $335,000 related to CMO securities. |
Note_4_Cash_Flow_Hedge
Note 4. Cash Flow Hedge | 9 Months Ended |
Sep. 30, 2014 | |
Notes | ' |
Note 4. Cash Flow Hedge | ' |
Note 4. Cash Flow Hedge | |
In connection with its outstanding amortizing term loan, a subsidiary of IHC entered into an interest rate swap on July 1, 2011 with the commercial bank lender, for a notional amount equal to the debt principal amount ($4,000,000 and $6,000,000 at September 30, 2014 and December 31, 2013, repectively), under which the Company receives a variable rate equal to the rate on the debt and pays a fixed rate (1.60%) in order to manage the risk in overall changes in cash flows attributable to forecasted interest payments. As a result of the interest rate swap, interest payments on this debt are fixed at 4.95%. There was no hedge ineffectiveness on this interest rate swap which was accounted for as a cash flow hedge. At September 30, 2014 and December 31, 2013, the fair value of interest rate swap was $97,000 and $204,000, respectively, which is included in other liabilities on the accompanying Condensed Consolidated Balance Sheets. See Note 5 for further discussion on the valuation techniques utilized to determine the fair value of the interest rate swap. |
Note_5_Fair_Value_Disclosures
Note 5. Fair Value Disclosures | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Notes | ' | ||||||||||
Note 5. Fair Value Disclosures | ' | ||||||||||
Note 5. Fair Value Disclosures | |||||||||||
For all financial and non-financial assets and liabilities accounted for at fair value on a recurring basis, the Company utilizes valuation techniques based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market expectations. These two types of inputs create the following fair value hierarchy: | |||||||||||
Level 1 - Quoted prices for identical instruments in active markets. | |||||||||||
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |||||||||||
Level 3 - Instruments where significant value drivers are unobservable. | |||||||||||
The following section describes the valuation methodologies we use to measure different assets at fair value. | |||||||||||
Investments in fixed maturities and equity securities: | |||||||||||
Available-for-sale securities included in Level 1 are equities with quoted market prices. Level 2 is primarily comprised of our portfolio of government securities, agency mortgage-backed securities, corporate fixed income securities, collateralized mortgage obligations, municipals, GSEs and certain preferred stocks that were priced with observable market inputs. Level 3 securities consist primarily of CMO securities and municipal tax credit strips. For these securities, we use industry-standard pricing methodologies, including discounted cash flow models, whose inputs are based on management’s assumptions and available market information. Significant unobservable inputs used in the fair value measurement of CMO’s are prepayment rates, probability of default, and loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for loss severity and a directionally opposite change in the assumption used for prepayment rates. Further we retain independent pricing vendors to assist in valuing certain instruments. | |||||||||||
Trading securities: | |||||||||||
Trading securities included in Level 1 are equity securities with quoted market prices. | |||||||||||
Interest rate swap: | |||||||||||
The financial liability included in Level 2 consists of an interest rate swap on IHC debt. It is valued using market observable inputs including market price, interest rate, and volatility within a Black Scholes model. | |||||||||||
The following tables present our financial assets and liabilities measured at fair value on a recurring basis for the periods indicated (in thousands): | |||||||||||
30-Sep-14 | |||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||
FINANCIAL ASSETS: | |||||||||||
Fixed maturities available-for-sale: | |||||||||||
Corporate securities | $ | - | $ | 239,831 | $ | - | $ | 239,831 | |||
CMOs - residential | - | 3,165 | - | 3,165 | |||||||
CMOs - commercial | - | - | 924 | 924 | |||||||
US Government obligations | - | 22,785 | - | 22,785 | |||||||
Agency MBS - residential | - | 72 | - | 72 | |||||||
GSEs | - | 16,367 | - | 16,367 | |||||||
States and political subdivisions | - | 231,806 | 2,347 | 234,153 | |||||||
Foreign government obligations | - | 45,198 | - | 45,198 | |||||||
Redeemable preferred stocks | 4,117 | - | - | 4,117 | |||||||
Total fixed maturities | 4,117 | 559,224 | 3,271 | 566,612 | |||||||
Equity securities available-for-sale: | |||||||||||
Common stocks | 9,007 | - | - | 9,007 | |||||||
Nonredeemable preferred stocks | 4,114 | - | - | 4,114 | |||||||
Total equity securities | 13,121 | - | - | 13,121 | |||||||
Trading securities - equities | 11,370 | - | - | 11,370 | |||||||
Total trading securities | 11,370 | - | - | 11,370 | |||||||
Total Financial Assets | $ | 28,608 | $ | 559,224 | $ | 3,271 | $ | 591,103 | |||
FINANCIAL LIABILITIES: | |||||||||||
Interest rate swap | $ | - | $ | 97 | $ | - | $ | 97 | |||
31-Dec-13 | |||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||
FINANCIAL ASSETS: | |||||||||||
Fixed maturities available-for-sale: | |||||||||||
Corporate securities | $ | - | $ | 209,260 | $ | - | $ | 209,260 | |||
CMOs - residential | - | 2,457 | - | 2,457 | |||||||
CMOs - commercial | - | - | 593 | 593 | |||||||
US Government obligations | - | 15,861 | - | 15,861 | |||||||
Agency MBS - residential | - | 83 | - | 83 | |||||||
GSEs | - | 28,148 | - | 28,148 | |||||||
States and political subdivisions | - | 247,262 | 2,441 | 249,703 | |||||||
Foreign government obligations | - | 32,350 | - | 32,350 | |||||||
Redeemable preferred stocks | 3,832 | - | - | 3,832 | |||||||
Total fixed maturities | 3,832 | 535,421 | 3,034 | 542,287 | |||||||
Equity securities available-for-sale: | |||||||||||
Common stocks | 7,775 | - | - | 7,775 | |||||||
Nonredeemable preferred stocks | 4,028 | - | - | 4,028 | |||||||
Total equity securities | 11,803 | - | - | 11,803 | |||||||
Trading securities - equities | 7,125 | - | - | 7,125 | |||||||
Total trading securities | 7,125 | - | - | 7,125 | |||||||
Total Financial Assets | $ | 22,760 | $ | 535,421 | $ | 3,034 | $ | 561,215 | |||
FINANCIAL LIABILITIES: | |||||||||||
Interest rate swap | $ | - | $ | 204 | $ | - | $ | 204 | |||
It is the Company’s policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until such time as observable inputs become available and reliable or the range of available independent prices narrow. | |||||||||||
There were no securities transferred between Level 1, Level 2 or Level 3 in 2014 or 2013. The following table presents the changes in fair value of our Level 3 financial instruments for the periods indicated (in thousands): | |||||||||||
Three Months Ended September 30, 2014 | |||||||||||
States and | |||||||||||
CMOs | Political | ||||||||||
Commercial | Subdivisions | Total | |||||||||
Beginning balance | $ | 906 | $ | 2,379 | $ | 3,285 | |||||
Gains (losses) included in other comprehensive income (loss): | |||||||||||
Net unrealized gains (losses) | 18 | (14) | 4 | ||||||||
Repayments and amortization of fixed maturities | - | (18) | (18) | ||||||||
Balance at end of period | $ | 924 | $ | 2,347 | $ | 3,271 | |||||
Three Months Ended September 30, 2013 | |||||||||||
CMOs | States and | ||||||||||
Political | |||||||||||
Residential | Commercial | Subdivisions | Total | ||||||||
Beginning balance | $ | 4,370 | $ | 571 | $ | 2,501 | $ | 7,442 | |||
Gains (losses) included in earnings: | |||||||||||
Net realized investment gains | 1,882 | - | - | 1,882 | |||||||
Gains (losses) included in other comprehensive income (loss): | |||||||||||
Net unrealized gains (losses) | (2,140) | 1 | (18) | (2,157) | |||||||
Sales of securities | (2,343) | - | - | (2,343) | |||||||
Repayments and amortization of fixed maturities | (220) | - | (10) | (230) | |||||||
Balance at end of period | $ | 1,549 | $ | 572 | $ | 2,473 | $ | 4,594 | |||
Nine Months Ended September 30, 2014 | |||||||||||
States and | |||||||||||
CMOs | Political | ||||||||||
Commercial | Subdivisions | Total | |||||||||
Beginning balance | $ | 593 | $ | 2,441 | $ | 3,034 | |||||
Gains (losses) included in other comprehensive income (loss): | |||||||||||
Net unrealized gains (losses) | 331 | (45) | 286 | ||||||||
Repayments and amortization of fixed maturities | - | (49) | (49) | ||||||||
Balance at end of period | $ | 924 | $ | 2,347 | $ | 3,271 | |||||
Nine Months Ended September 30, 2013 | |||||||||||
CMOs | States and | ||||||||||
Political | |||||||||||
Residential | Commercial | Subdivisions | Total | ||||||||
Beginning balance | $ | 14,053 | $ | 570 | $ | 2,558 | $ | 17,181 | |||
Gains (losses) included in earnings: | |||||||||||
Net realized investment gains | 6,517 | - | - | 6,517 | |||||||
Gains (losses) included in other comprehensive income (loss): | |||||||||||
Net unrealized gains (losses) | (6,389) | 2 | (60) | (6,447) | |||||||
Sales of securities | (11,663) | - | - | (11,663) | |||||||
Repayments and amortization of fixed maturities | (969) | - | (25) | (994) | |||||||
Balance at end of period | $ | 1,549 | $ | 572 | $ | 2,473 | $ | 4,594 | |||
The following table provides carrying values, fair values and classification in the fair value hierarchy of the Company’s financial instruments, for the periods indicated, that are not carried at fair value but are subject to fair value disclosure requirements, for the periods indicated (in thousands): | |||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||
Level 2 | Level 2 | ||||||||||
Fair | Carrying | Fair | Carrying | ||||||||
Value | Value | Value | Value | ||||||||
FINANCIAL ASSETS: | |||||||||||
Policy loans | $ | 13,369 | $ | 10,680 | $ | 14,177 | $ | 11,328 | |||
FINANCIAL LIABILITIES: | |||||||||||
Funds on deposit | $ | 194,091 | $ | 194,140 | $ | 274,773 | $ | 274,826 | |||
Debt and junior subordinated | |||||||||||
debt securities | $ | 42,146 | $ | 42,146 | $ | 44,146 | $ | 44,146 | |||
The following methods and assumptions were used to estimate the fair value of the financial instruments that are not carried at fair value in the Condensed Consolidated Financial Statements: | |||||||||||
(A) Policy Loans | |||||||||||
The fair value of policy loans included in Level 2 of the fair value hierarchy is estimated by projecting aggregate loan cash flows to the end of the expected lifetime period of the life insurance business at the average policy loan rates, and discounting them at a current market interest rate. | |||||||||||
(B) Funds on Deposit | |||||||||||
The Company has two types of funds on deposit. The first type is credited with a current market interest rate, resulting in a fair value which approximates the carrying amount. The second type carries fixed interest rates which are higher than current market interest rates. The fair value of these deposits was estimated by discounting the payments using current market interest rates. The Company's universal life policies are also credited with current market interest rates, resulting in a fair value which approximates the carrying amount. Both types of funds on deposit are included in Level 2 of the fair value hierarchy. | |||||||||||
(C) Debt | |||||||||||
The fair value of debt with variable interest rates approximates its carrying amount and is included in Level 2 of the fair value hierarchy. |
Note_6_Goodwill_and_Other_Inta
Note 6. Goodwill and Other Intangible Assets | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes | ' | ||||||||
Note 6. Goodwill and Other Intangible Assets | ' | ||||||||
Note 6. Goodwill and Other Intangible Assets | |||||||||
The carrying amount of goodwill was $50,318,000 at September 30, 2014 and December 31, 2013. | |||||||||
The Company has net other intangible assets of $12,756,000 and $14,767,000 at September 30, 2014 and December 31, 2013, respectively, which are included in other assets in the Condensed Consolidated Balance Sheets. These intangible assets consist of: (i) finite-lived intangible assets, principally the fair value of acquired agent and broker relationships, which are subject to amortization; and (ii) indefinite-lived intangible assets which consist of the estimated fair value of insurance licenses that are not subject to amortization. The gross carrying amounts of these other intangible assets are as follows for the periods indicated (in thousands): | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Gross | Gross | ||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||
Amount | Amortization | Amount | Amortization | ||||||
Finite-lived Intangible Assets: | |||||||||
Agent and broker relationships | $ | 22,725 | $ | 17,946 | $ | 22,725 | $ | 15,935 | |
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Indefinite-lived Intangible Assets: | |||||||||
Insurance licenses | $ | 7,977 | $ | 7,977 | |||||
Amortization expense was $653,000 and $2,011,000 for the three months and nine months ended September 30, 2014, respectively, and was $807,000 and $2,443,000 for the three months and nine months ended September 30, 2013. |
Note_7_Debt
Note 7. Debt | 9 Months Ended |
Sep. 30, 2014 | |
Notes | ' |
Note 7. Debt | ' |
Note 7. Debt | |
In July 2014, the Company made a $2,000,000 principal debt repayment in accordance with the terms of its amortizing term note. |
Note_8_Income_Taxes
Note 8. Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Notes | ' |
Note 8. Income Taxes | ' |
Note 8. Income Taxes | |
The provisions for income taxes shown in the Condensed Consolidated Statements of Income were computed based on the Company's actual results, which approximate the effective tax rate expected to be applicable for the balance of the current fiscal year in accordance with consolidated life/non-life group income tax regulations. Such regulations adopt a subgroup method in determining consolidated taxable income, whereby taxable income is determined separately for the life insurance company group and the non-life insurance company group. | |
At September 30, 2014, AMIC had net operating loss carryforwards of approximately $261,691,000 for federal income tax purposes, expiring in varying amounts through the year 2028, with a significant portion expiring in 2020. The net deferred tax asset relative to AMIC included in other assets on IHC’s Condensed Consolidated Balance Sheets was $8,857,000 and $10,689,000 at September 30, 2014 and December 31, 2013, respectively. |
Note_9_Accumulated_Other_Compr
Note 9. Accumulated Other Comprehensive Income (loss) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes | ' | ||||||||
Note 9. Accumulated Other Comprehensive Income (loss) | ' | ||||||||
Note 9. Accumulated Other Comprehensive Income (Loss) | |||||||||
The components of other comprehensive income (loss) include (i) the after-tax net unrealized gains and losses on investment securities available-for-sale, including the subsequent increases and decreases in fair value of available-for-sale securities previously impaired and the non-credit related component of other-than-temporary impairments of fixed maturities and (ii) the after-tax unrealized gains and losses on a cash flow hedge. | |||||||||
Changes in the balances for each component of accumulated other comprehensive income (loss), shown net of taxes, for the periods indicated were as follows (in thousands): | |||||||||
Three Months Ended September 30, 2014 | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Available-for Sale | Cash Flow | ||||||||
Securities | Hedge | Total | |||||||
Beginning balance | $ | (1,420) | $ | (99) | $ | (1,519) | |||
Other comprehensive income (loss) before reclassifications | (587) | 41 | (546) | ||||||
Amounts reclassified from accumulated OCI | (1,211) | - | (1,211) | ||||||
Net other comprehensive income (loss) | (1,798) | 41 | (1,757) | ||||||
Other comprehensive (income) loss attributable | |||||||||
to noncontrolling interests | 81 | - | 81 | ||||||
Ending balance | $ | (3,137) | $ | (58) | $ | (3,195) | |||
Three Months Ended September 30, 2013 | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Available-for Sale | Cash Flow | ||||||||
Securities | Hedge | Total | |||||||
Beginning balance | $ | (3,268) | $ | (191) | $ | (3,459) | |||
Other comprehensive income (loss) before reclassifications | (1,364) | 58 | (1,306) | ||||||
Amounts reclassified from accumulated OCI | (1,151) | - | (1,151) | ||||||
Net other comprehensive income (loss) | (2,515) | 58 | (2,457) | ||||||
Other comprehensive (income) loss attributable | |||||||||
to noncontrolling interests | (6) | - | (6) | ||||||
Ending balance | $ | (5,789) | $ | (133) | $ | (5,922) | |||
Nine Months Ended September 30, 2014 | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Available-for Sale | Cash Flow | ||||||||
Securities | Hedge | Total | |||||||
Beginning balance | $ | (10,350) | $ | (122) | $ | (10,472) | |||
Other comprehensive income (loss) before reclassifications | 12,177 | 64 | 12,241 | ||||||
Amounts reclassified from accumulated OCI | (4,832) | - | (4,832) | ||||||
Net other comprehensive income (loss) | 7,345 | 64 | 7,409 | ||||||
Other comprehensive (income) loss attributable | |||||||||
to noncontrolling interests | (132) | - | (132) | ||||||
Ending balance | $ | (3,137) | $ | (58) | $ | (3,195) | |||
Nine Months Ended September 30, 2013 | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Available-for Sale | Cash Flow | ||||||||
Securities | Hedge | Total | |||||||
Beginning balance | $ | 15,231 | $ | (218) | $ | 15,013 | |||
Other comprehensive income (loss) before reclassifications | (9,908) | 85 | (9,823) | ||||||
Amounts reclassified from accumulated OCI | (11,698) | - | (11,698) | ||||||
Net other comprehensive income (loss) | (21,606) | 85 | (21,521) | ||||||
Other comprehensive (income) loss attributable | |||||||||
to noncontrolling interests | 550 | - | 550 | ||||||
Acquired from noncontrolling interests | 36 | - | 36 | ||||||
Ending balance | $ | (5,789) | $ | (133) | $ | (5,922) | |||
Presented below are the amounts reclassified out of accumulated other comprehensive income (loss) and recognized in earnings for each of the periods indicated (in thousands): | |||||||||
Three Months Ended | Nine months Ended | ||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Unrealized gains (losses) on available-for-sale securities | |||||||||
reclassified during the period to the following income | |||||||||
statement line items: | |||||||||
Net realized investment gains | $ | 1,535 | $ | 1,846 | $ | 7,022 | $ | 17,647 | |
Income before income tax | 1,535 | 1,846 | 7,022 | 17,647 | |||||
Tax effect | 324 | 695 | 2,190 | 5,949 | |||||
Net income | $ | 1,211 | $ | 1,151 | $ | 4,832 | $ | 11,698 | |
Note_10_Sharebased_Compensatio
Note 10. Share-based Compensation | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Notes | ' | |||||||||
Note 10. Share-based Compensation | ' | |||||||||
Note 10. Share-Based Compensation | ||||||||||
IHC and AMIC each have share-based compensation plans. The following is a summary of the activity pertaining to each of these plans. | ||||||||||
A) IHC Share-Based Compensation Plans | ||||||||||
Under the terms of IHC’s stock-based compensation plans, option exercise prices are more than or equal to the quoted market price of the shares at the date of grant; option terms are generally five years; and vesting periods are generally three years. The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. In addition to stock options, the Company has also granted restricted stock units, share appreciation rights (“SARs”) and share-based performance awards under the plans. Restricted share units are valued at the quoted market price of the shares at the date of grant and have a three year vesting period. Compensation costs for options and restricted share units are recognized over the stated vesting periods on a straight-line basis. Exercise prices of SARs are more than or equal to the quoted market price of IHC shares at the date of the grant and have three year vesting periods. The fair value of SARs is calculated using the Black-Scholes valuation model at the grant date and each subsequent reporting period until settlement. Compensation cost is based on the proportionate amount of the requisite service that has been rendered to date. Once fully vested, changes in fair value of the SARs continue to be recognized as compensation expense in the period of the change until settlement. | ||||||||||
At September 30, 2014, there were 377,286 shares available for future stock-based compensation grants under IHC’s stock incentive plans. The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income, applicable to the IHC plans by award type for each of the periods indicated (in thousands): | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
IHC’s Share-based Compensation Plan: | ||||||||||
Stock options | $ | 66 | $ | 53 | $ | 603 | $ | 143 | ||
Restricted stock units | 22 | 20 | 64 | 47 | ||||||
SARs | (190) | 363 | (113) | 741 | ||||||
Performance awards | - | - | - | (5) | ||||||
Share-based compensation expense, pre-tax | (102) | 436 | 554 | 926 | ||||||
Tax benefits | (41) | 174 | 221 | 369 | ||||||
Share-based compensation expense, net | $ | (61) | $ | 262 | $ | 333 | $ | 557 | ||
Stock Options | ||||||||||
The Company’s stock option activity during 2014 was as follows: | ||||||||||
Shares | Weighted- Average | |||||||||
Under Option | Exercise Price | |||||||||
31-Dec-13 | 616,858 | $ | 9.35 | |||||||
Expired | -2,178 | 14.75 | ||||||||
30-Sep-14 | 614,680 | $ | 9.33 | |||||||
In May 2014, option agreements affecting 15 employees were modified to extend the expirations of their terms from 2015 to 2017 and as a result, the Company recorded incremental compensation costs of $405,000. | ||||||||||
The following table summarizes information regarding outstanding and exercisable options: | ||||||||||
30-Sep-14 | ||||||||||
Outstanding | Exercisable | |||||||||
Number of options | 614,680 | 532,180 | ||||||||
Weighted average exercise price per share | $ | 9.33 | $ | 9.23 | ||||||
Aggregate intrinsic value for all options (in thousands) | $ | 2,469 | $ | 2,192 | ||||||
Weighted average contractual term remaining | 2.6 years | 2.4 years | ||||||||
As of September 30, 2014, the total unrecognized compensation expense related to non-vested stock options was $121,000, which is expected to be recognized over the remaining requisite weighted-average service period of .5 years. | ||||||||||
Restricted Stock | ||||||||||
The following table summarizes restricted stock activity for the nine months ended September 30, 2014: | ||||||||||
No. of | Weighted-Average | |||||||||
Non-vested | Grant-Date | |||||||||
Shares | Fair Value | |||||||||
31-Dec-13 | 14,850 | $ | 10.6 | |||||||
Granted | 7,425 | 13.27 | ||||||||
Vested | (7,425) | 10.3 | ||||||||
30-Sep-14 | 14,850 | $ | 12.09 | |||||||
IHC granted 7,425 shares of restricted stock awards during each of the nine months ended September 30, 2014 and 2013 with weighted average grant-date fair values of $13.27 and $11.66, respectively, per share. The total fair value of restricted stock that vested during each of the first nine months of 2014 and 2013 was $103,000 and $69,000, respectively. | ||||||||||
As of September 30, 2014, the total unrecognized compensation expense related to non-vested restricted stock unit awards was $152,000 which is expected to be recognized over the remaining requisite weighted-average service period of 2.0 years. | ||||||||||
SARs | ||||||||||
IHC had 247,950 and 251,800 of SAR awards outstanding at September 30, 2014 and December 31, 2013, respectively. Included in Other Liabilities in the Company’s Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013 are liabilities of $1,189,000 and $1,307,000, respectively, pertaining to SARs. | ||||||||||
B) AMIC Share-Based Compensation Plans | ||||||||||
Under the terms of the AMIC’s stock-based compensation plan, option exercise prices are equal to the quoted market price of the shares at the date of grant; option terms are ten years; and vesting periods range from three to four years. The Company may also grant shares of restricted stock, stock appreciation rights and share-based performance awards. Restricted shares are valued at the quoted market price of the shares at the date of grant, and have a three year vesting period. | ||||||||||
The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income, applicable to the AMIC share-based compensation plans, by award type for each of the periods indicated (in thousands): | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
AMIC’s Share-based Compensation Plans: | ||||||||||
Stock options | $ | 13 | $ | 13 | $ | 40 | $ | 30 | ||
Share-based compensation expense, pre-tax | 13 | 13 | 40 | 30 | ||||||
Tax benefits | 4 | 4 | 14 | 10 | ||||||
Share-based compensation expense, net | $ | 9 | $ | 9 | $ | 26 | $ | 20 | ||
Stock Options | ||||||||||
AMIC’s stock option activity for the nine months ended September 30, 2014 is as follows: | ||||||||||
Shares | Weighted- Average | |||||||||
Under Option | Exercise Price | |||||||||
31-Dec-13 | 222,285 | $ | 11.46 | |||||||
Granted | 13,334 | 10.8 | ||||||||
Exercised | (6,667) | 4.87 | ||||||||
Expired | (62,336) | 14.58 | ||||||||
30-Sep-14 | 166,616 | $ | 10.5 | |||||||
The following table summarizes information regarding AMIC’s outstanding and exercisable options as of September 30, 2014: | ||||||||||
30-Sep-14 | ||||||||||
Outstanding | Exercisable | |||||||||
Number of options | 166,616 | 144,393 | ||||||||
Weighted average exercise price per share | $ | 10.5 | $ | 10.69 | ||||||
Aggregate intrinsic value for all options (in thousands) | $ | 266 | $ | 227 | ||||||
Weighted average contractual term remaining | 3.44 years | 2.54 years | ||||||||
The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. The weighted average grant-date fair-value of options granted during the nine months ended September 30, 2014 and 2013 was $5.70 and $4.04 per share, respectfully. The assumptions set forth in the table below were used to value the stock options granted during the nine months ended September 30, 2014 and 2013: | ||||||||||
September 30, | ||||||||||
2014 | 2013 | |||||||||
Weighted-average risk-free interest rate | 2.72% | 2.30% | ||||||||
Annual dividend rate per share | - | - | ||||||||
Weighted-average volatility factor of the Company's common stock | 38.27% | 45.00% | ||||||||
Weighted-average expected term of options | 5 years | 5 years | ||||||||
As of September 30, 2014, the total unrecognized compensation expense related to AMIC’s non-vested options was $95,000 which will be recognized over the remaining requisite service periods. | ||||||||||
Note_11_Supplemental_Disclosur
Note 11. Supplemental Disclosures of Cash Flow Information | 9 Months Ended |
Sep. 30, 2014 | |
Notes | ' |
Note 11. Supplemental Disclosures of Cash Flow Information | ' |
Note 11. Supplemental Disclosures of Cash Flow Information | |
Net cash payments (receipts) for income taxes were $(2,598,000) and $(612,000) during the nine months ended September 30, 2014 and 2013. | |
Cash payments for interest were $1,366,000 and $1,458,000 during the nine months ended September 30, 2014 and 2013, respectively. |
Note_12_Commitments_and_Contin
Note 12. Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Notes | ' |
Note 12. Commitments and Contingencies | ' |
Note 12. Commitments and Contingencies | |
On September 1, 2013, Madison National Life entered into an agreement with a former policyholder and accrued for a return of premium in connection with health insurance business written during 2007. The agreement was entered into in response to a potential lawsuit. In April 2014, the Company fulfilled its obligation under the terms of the agreement with a payment of $1,541,000 representing return of premium reserves (net of recoveries). The Company terminated the MGU that produced this business in 2008. | |
Note_13_Segment_Reporting
Note 13. Segment Reporting | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes | ' | ||||||||
Note 13. Segment Reporting | ' | ||||||||
Note 13. Segment Reporting | |||||||||
The Insurance Group principally engages in the life and health insurance business. Information by business segment is presented below for the periods indicated (in thousands): | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | 30-Sep | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Revenues: | |||||||||
Medical Stop-Loss | $ | 45,734 | $ | 42,043 | $ | 138,821 | $ | 127,833 | |
Fully Insured Health(A) | 57,412 | 71,778 | 184,839 | 203,896 | |||||
Group disability, life, annuities and DBL | 16,948 | 15,842 | 50,091 | 46,685 | |||||
Individual life, annuities and other | 8,764 | 9,542 | 26,049 | 34,162 | |||||
Corporate | 50 | 22 | 129 | 79 | |||||
128,908 | 139,227 | 399,929 | 412,655 | ||||||
Net realized investment gains | 844 | 2,417 | 6,914 | 18,771 | |||||
Total revenues | $ | 129,752 | $ | 141,644 | $ | 406,843 | $ | 431,426 | |
Income before income taxes: | |||||||||
Medical Stop-Loss | $ | 6,339 | $ | 3,404 | $ | 15,730 | $ | 9,836 | |
Fully Insured Health (A) | 370 | 615 | 2,325 | 474 | |||||
Group disability, life, annuities and DBL | 4,057 | 2,555 | 7,237 | 6,530 | |||||
Individual life, annuities and other (B) | (1,683) | (40) | (4,903) | (9,207) | |||||
Corporate | (1,423) | (2,485) | (5,833) | (5,022) | |||||
7,660 | 4,049 | 14,556 | 2,611 | ||||||
Net realized investment gains | 844 | 2,417 | 6,914 | 18,771 | |||||
Interest expense | (539) | (470) | (1,357) | (1,447) | |||||
Income before income taxes | $ | 7,965 | $ | 5,996 | $ | 20,113 | $ | 19,935 | |
(A) The Fully Insured Health segment includes amortization of intangible assets. Total amortization expense was $493,000 and $602,000 for the three months ended September 30, 2014 and 2013, respectively, and was $1,477,000 and $1,810,000, respectively, for the nine months ended September 30, 2014 and 2013. Amortization expense for the other segments is not material to their operating results. | |||||||||
(B) For the three months and nine months ended September 30, 2014, the Individual life, annuities and other segment includes $1,699,000 and $2,938,000, respectively, of amortization of deferred charges in connection with the assumptions of certain cede life and annuity policies in 2014. For the nine months ended September 30, 2013, the Individual life, annuities and other segment includes the write-off of $9,307,000 of deferred acquisition costs in connection with a coinsurance agreement. |
Note_1_Organization_Consolidat1
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Policies | ' |
Basis of Presentation | ' |
The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Financial Statements include the accounts of IHC and its consolidated subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect: (i) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (ii) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. IHC’s annual report on Form 10-K as filed with the Securities and Exchange Commission should be read in conjunction with the accompanying Condensed Consolidated Financial Statements. |
Note_1_Organization_Consolidat2
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Reclassification Policy (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Policies | ' |
Reclassification Policy | ' |
Certain amounts in prior year’s Condensed Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2014 presentation. |
Note_1_Organization_Consolidat3
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Policies | ' |
New Accounting Pronouncements | ' |
Recently Adopted Accounting Standards | |
In July 2013, the Financial Accounting Standards Board (“FASB”), issued guidance for the presentation of unrecognized tax benefits to better reflect the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The adoption of this guidance, effective January 1, 2014, did not have an effect on the Company’s consolidated financial statements. | |
In July 2011, the FASB issued guidance specifying that the liability for the fees paid to the Federal Government by health insurers as a result of recent healthcare reform legislation should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense using a straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. The amendments in this Update became effective January 1, 2014 and in accordance with the provisions, IHC recorded the estimated gross liability for the mandated fees payable to the Federal Government of $1,500,000 and the corresponding deferred cost in the first quarter of 2014. The amounts were recorded in accounts payable, accruals and other liabilities and in other assets, respectively, on the Condensed Consolidated Balance Sheet. The deferred asset is being amortized ratably over the calendar year to selling, general and administrative expense in the Condensed Consolidated Statement of Income. Upon final assessment in June 2014, the Company increased its gross liability for the mandated fees payable to the Federal Government to $1,816,000. | |
Recently Issued Accounting Standards Not Yet Adopted | |
In June 2014, the FASB issued explicit guidance for entities that grant their employees share-based payments in which the terms of the award include a performance target that affects vesting and could be achieved after the requisite service period. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Earlier adoption is permitted. The guidance may be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued revenue recognition guidance for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards such as insurance contracts or lease contracts. The amendment provides specific steps that an entity should apply in order to achieve its main objective which is recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and requires one of two specified retrospective methods of application. Early application is prohibited. Management has not yet determined the impact that the adoption of this guidance will have on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued guidance: (i) improving the definition of discontinued operations by limiting the reporting of discontinued operations to disposals of components that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results; and (ii) requiring expanded disclosures for discontinued operations. Public entities are required to apply this guidance to: (i) all disposals (or classifications as held for sale) of components of the entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years; and (ii) to all businesses that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously issued financial statements. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. |
Note_5_Fair_Value_Disclosures_
Note 5. Fair Value Disclosures: Fair Value of Financial Instruments, Policy (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Policies | ' |
Fair Value of Financial Instruments, Policy | ' |
For all financial and non-financial assets and liabilities accounted for at fair value on a recurring basis, the Company utilizes valuation techniques based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market expectations. These two types of inputs create the following fair value hierarchy: | |
Level 1 - Quoted prices for identical instruments in active markets. | |
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |
Level 3 - Instruments where significant value drivers are unobservable. |
Note_5_Fair_Value_Disclosures_1
Note 5. Fair Value Disclosures: Fair Value Transfer, Policy (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Policies | ' |
Fair Value Transfer, Policy | ' |
It is the Company’s policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until such time as observable inputs become available and reliable or the range of available independent prices narrow. |
Note_10_Sharebased_Compensatio1
Note 10. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Independence Holding Company Share Based Plans Total Member | ' |
Share-based Compensation, Option and Incentive Plans Policy | ' |
Under the terms of IHC’s stock-based compensation plans, option exercise prices are more than or equal to the quoted market price of the shares at the date of grant; option terms are generally five years; and vesting periods are generally three years. The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. In addition to stock options, the Company has also granted restricted stock units, share appreciation rights (“SARs”) and share-based performance awards under the plans. Restricted share units are valued at the quoted market price of the shares at the date of grant and have a three year vesting period. Compensation costs for options and restricted share units are recognized over the stated vesting periods on a straight-line basis. Exercise prices of SARs are more than or equal to the quoted market price of IHC shares at the date of the grant and have three year vesting periods. The fair value of SARs is calculated using the Black-Scholes valuation model at the grant date and each subsequent reporting period until settlement. Compensation cost is based on the proportionate amount of the requisite service that has been rendered to date. Once fully vested, changes in fair value of the SARs continue to be recognized as compensation expense in the period of the change until settlement. | |
American Independence Corp Share Based Plans Total Member | ' |
Share-based Compensation, Option and Incentive Plans Policy | ' |
Under the terms of the AMIC’s stock-based compensation plan, option exercise prices are equal to the quoted market price of the shares at the date of grant; option terms are ten years; and vesting periods range from three to four years. The Company may also grant shares of restricted stock, stock appreciation rights and share-based performance awards. Restricted shares are valued at the quoted market price of the shares at the date of grant, and have a three year vesting period. |
Note_3_Investment_Securities_S
Note 3. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||||||
September 30, 2014 | |||||||||
GROSS | GROSS | ||||||||
AMORTIZED | UNREALIZED | UNREALIZED | FAIR | ||||||
COST | GAINS | LOSSES | VALUE | ||||||
FIXED MATURITIES | |||||||||
AVAILABLE-FOR-SALE: | |||||||||
Corporate securities | $ | 244,113 | $ | 410 | $ | (4,692) | $ | 239,831 | |
CMOs - residential (1) | 3,158 | 20 | (13) | 3,165 | |||||
CMOs - commercial | 975 | - | (51) | 924 | |||||
U.S. Government obligations | 22,760 | 25 | - | 22,785 | |||||
Agency MBS - residential (2) | 69 | 3 | - | 72 | |||||
GSEs (3) | 16,505 | 12 | (150) | 16,367 | |||||
States and political subdivisions | 234,610 | 2,560 | (3,017) | 234,153 | |||||
Foreign government obligations | 45,724 | 168 | (694) | 45,198 | |||||
Redeemable preferred stocks | 4,036 | 100 | (19) | 4,117 | |||||
Total fixed maturities | $ | 571,950 | $ | 3,298 | $ | (8,636) | $ | 566,612 | |
EQUITY SECURITIES | |||||||||
AVAILABLE-FOR-SALE: | |||||||||
Common stocks | $ | 8,452 | $ | 700 | $ | (145) | $ | 9,007 | |
Nonredeemable preferred stocks | 4,004 | 113 | (3) | 4,114 | |||||
Total equity securities | $ | 12,456 | $ | 813 | $ | (148) | $ | 13,121 | |
December 31, 2013 | |||||||||
GROSS | GROSS | ||||||||
AMORTIZED | UNREALIZED | UNREALIZED | FAIR | ||||||
COST | GAINS | LOSSES | VALUE | ||||||
FIXED MATURITIES | |||||||||
AVAILABLE-FOR-SALE: | |||||||||
Corporate securities | $ | 215,412 | $ | 1,315 | $ | (7,467) | $ | 209,260 | |
CMOs - residential (1) | 2,457 | 8 | (8) | 2,457 | |||||
CMOs - commercial | 975 | - | (382) | 593 | |||||
U.S. Government obligations | 15,596 | 271 | (6) | 15,861 | |||||
Agency MBS - residential (2) | 79 | 4 | - | 83 | |||||
GSEs (3) | 28,484 | 4 | (340) | 28,148 | |||||
States and political subdivisions | 256,645 | 2,435 | (9,377) | 249,703 | |||||
Foreign government obligations | 34,437 | 20 | (2,107) | 32,350 | |||||
Redeemable preferred stocks | 4,036 | 74 | (278) | 3,832 | |||||
Total fixed maturities | $ | 558,121 | $ | 4,131 | $ | (19,965) | $ | 542,287 | |
EQUITY SECURITIES | |||||||||
AVAILABLE-FOR-SALE: | |||||||||
Common stocks | $ | 7,517 | $ | 328 | $ | (70) | $ | 7,775 | |
Nonredeemable preferred stocks | 4,004 | 58 | (34) | 4,028 | |||||
Total equity securities | $ | 11,521 | $ | 386 | $ | (104) | $ | 11,803 | |
(1) Collateralized mortgage obligations (“CMOs”). | |||||||||
(2) Mortgage-backed securities (“MBS”). | |||||||||
(3) Government-sponsored enterprises (“GSEs”) are private enterprises established and chartered by the Federal Government or its various insurance and lease programs which carry the full faith and credit obligation of the U.S. Government. |
Note_3_Investment_Securities_I
Note 3. Investment Securities: Investments Classified by Contractual Maturity Date (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Tables/Schedules | ' | ||||||
Investments Classified by Contractual Maturity Date | ' | ||||||
AMORTIZED | FAIR | ||||||
COST | VALUE | ||||||
Due in one year or less | $ | 15,306 | $ | 15,162 | |||
Due after one year through five years | 87,574 | 87,064 | |||||
Due after five years through ten years | 219,861 | 217,224 | |||||
Due after ten years | 229,530 | 227,660 | |||||
CMOs and MBSs | 19,679 | 19,502 | |||||
$ | 571,950 | $ | 566,612 |
Note_3_Investment_Securities_A
Note 3. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Tables/Schedules | ' | ||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ||||||||||||||||
30-Sep-14 | |||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||
Corporate securities | $ | 107,877 | $ | 1,754 | $ | 83,832 | $ | 2,938 | $ | 191,709 | $ | 4,692 | |||||
CMO’s - residential | 1,657 | 13 | - | - | 1,657 | 13 | |||||||||||
CMOs - commercial | - | - | 924 | 51 | 924 | 51 | |||||||||||
GSEs | 9,164 | 80 | 2,516 | 70 | 11,680 | 150 | |||||||||||
States and political subdivisions | 59,372 | 627 | 95,235 | 2,390 | 154,607 | 3,017 | |||||||||||
Foreign government obligations | 21,238 | 187 | 18,499 | 507 | 39,737 | 694 | |||||||||||
Redeemable preferred stocks | 3,743 | 19 | - | - | 3,743 | 19 | |||||||||||
Total fixed maturities | 203,051 | 2,680 | 201,006 | 5,956 | 404,057 | 8,636 | |||||||||||
Common stocks | 2,610 | 145 | - | - | 2,610 | 145 | |||||||||||
Nonredeemable preferred stocks | 1,407 | 3 | - | - | 1,407 | 3 | |||||||||||
Total equity securities | 4,017 | 148 | - | - | 4,017 | 148 | |||||||||||
Total temporarily impaired | |||||||||||||||||
securities | $ | 207,068 | $ | 2,828 | $ | 201,006 | $ | 5,956 | $ | 408,074 | $ | 8,784 | |||||
Number of securities in an | |||||||||||||||||
unrealized loss position | 76 | 65 | 141 | ||||||||||||||
31-Dec-13 | |||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||
Corporate securities | $ | 124,531 | $ | 5,340 | $ | 21,070 | $ | 2,127 | $ | 145,601 | $ | 7,467 | |||||
CMO’s - residential | 2,047 | 8 | - | - | 2,047 | 8 | |||||||||||
CMOs - commercial | - | - | 593 | 382 | 593 | 382 | |||||||||||
U.S. Government obligations | 493 | 6 | - | - | 493 | 6 | |||||||||||
GSEs | 22,731 | 123 | 5,360 | 217 | 28,091 | 340 | |||||||||||
States and political subdivisions | 149,704 | 7,312 | 32,983 | 2,065 | 182,687 | 9,377 | |||||||||||
Foreign government obligations | 27,587 | 1,766 | 3,523 | 341 | 31,110 | 2,107 | |||||||||||
Redeemable preferred stocks | 3,485 | 278 | - | - | 3,485 | 278 | |||||||||||
Total fixed maturities | 330,578 | 14,833 | 63,529 | 5,132 | 394,107 | 19,965 | |||||||||||
Common stocks | 2,589 | 70 | - | - | 2,589 | 70 | |||||||||||
Nonredeemable preferred stocks | 2,625 | 34 | - | - | 2,625 | 34 | |||||||||||
Total equity securities | 5,214 | 104 | - | - | 5,214 | 104 | |||||||||||
Total temporarily impaired | |||||||||||||||||
securities | $ | 335,792 | $ | 14,937 | $ | 63,529 | $ | 5,132 | $ | 399,321 | $ | 20,069 | |||||
Number of securities in an | |||||||||||||||||
unrealized loss position | 126 | 27 | 153 | ||||||||||||||
Note_3_Investment_Securities_R
Note 3. Investment Securities: Realized Gain (Loss) on Investments (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Realized Gain (Loss) on Investments | ' | ||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Sales of available-for-sale securities: | |||||||||
Fixed maturities | $ | 1,641 | $ | 2,045 | $ | 7,709 | $ | 18,321 | |
Preferred stocks | - | - | (5) | 177 | |||||
Total sales of available-for-sale securities | 1,641 | 2,045 | 7,704 | 18,498 | |||||
Sales of trading securities | 321 | 744 | 351 | 1,129 | |||||
Other gains (losses) | (108) | (199) | (683) | (853) | |||||
Total realized gains (losses) | 1,854 | 2,590 | 7,372 | 18,774 | |||||
Unrealized gains (losses) on trading securities: | |||||||||
Change in unrealized gains (losses) on trading securities | (1,010) | (173) | (458) | (3) | |||||
Total unrealized gains (losses) on trading securities | (1,010) | (173) | (458) | (3) | |||||
Net realized investment gains (losses) | $ | 844 | $ | 2,417 | $ | 6,914 | $ | 18,771 |
Note_3_Investment_Securities_O
Note 3. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | ||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Balance at beginning of year | $ | 473 | $ | 563 | $ | 473 | $ | 1,976 | |
Additional credit losses for which an other-than- | |||||||||
temporary loss was previously recognized | - | - | - | - | |||||
Securities sold | - | - | - | (1,413) | |||||
Balance at end of period | $ | 473 | $ | 563 | $ | 473 | $ | 563 |
Note_5_Fair_Value_Disclosures_2
Note 5. Fair Value Disclosures: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Tables/Schedules | ' | |||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||
30-Sep-14 | ||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||
FINANCIAL ASSETS: | ||||||||||
Fixed maturities available-for-sale: | ||||||||||
Corporate securities | $ | - | $ | 239,831 | $ | - | $ | 239,831 | ||
CMOs - residential | - | 3,165 | - | 3,165 | ||||||
CMOs - commercial | - | - | 924 | 924 | ||||||
US Government obligations | - | 22,785 | - | 22,785 | ||||||
Agency MBS - residential | - | 72 | - | 72 | ||||||
GSEs | - | 16,367 | - | 16,367 | ||||||
States and political subdivisions | - | 231,806 | 2,347 | 234,153 | ||||||
Foreign government obligations | - | 45,198 | - | 45,198 | ||||||
Redeemable preferred stocks | 4,117 | - | - | 4,117 | ||||||
Total fixed maturities | 4,117 | 559,224 | 3,271 | 566,612 | ||||||
Equity securities available-for-sale: | ||||||||||
Common stocks | 9,007 | - | - | 9,007 | ||||||
Nonredeemable preferred stocks | 4,114 | - | - | 4,114 | ||||||
Total equity securities | 13,121 | - | - | 13,121 | ||||||
Trading securities - equities | 11,370 | - | - | 11,370 | ||||||
Total trading securities | 11,370 | - | - | 11,370 | ||||||
Total Financial Assets | $ | 28,608 | $ | 559,224 | $ | 3,271 | $ | 591,103 | ||
FINANCIAL LIABILITIES: | ||||||||||
Interest rate swap | $ | - | $ | 97 | $ | - | $ | 97 | ||
31-Dec-13 | ||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||
FINANCIAL ASSETS: | ||||||||||
Fixed maturities available-for-sale: | ||||||||||
Corporate securities | $ | - | $ | 209,260 | $ | - | $ | 209,260 | ||
CMOs - residential | - | 2,457 | - | 2,457 | ||||||
CMOs - commercial | - | - | 593 | 593 | ||||||
US Government obligations | - | 15,861 | - | 15,861 | ||||||
Agency MBS - residential | - | 83 | - | 83 | ||||||
GSEs | - | 28,148 | - | 28,148 | ||||||
States and political subdivisions | - | 247,262 | 2,441 | 249,703 | ||||||
Foreign government obligations | - | 32,350 | - | 32,350 | ||||||
Redeemable preferred stocks | 3,832 | - | - | 3,832 | ||||||
Total fixed maturities | 3,832 | 535,421 | 3,034 | 542,287 | ||||||
Equity securities available-for-sale: | ||||||||||
Common stocks | 7,775 | - | - | 7,775 | ||||||
Nonredeemable preferred stocks | 4,028 | - | - | 4,028 | ||||||
Total equity securities | 11,803 | - | - | 11,803 | ||||||
Trading securities - equities | 7,125 | - | - | 7,125 | ||||||
Total trading securities | 7,125 | - | - | 7,125 | ||||||
Total Financial Assets | $ | 22,760 | $ | 535,421 | $ | 3,034 | $ | 561,215 | ||
FINANCIAL LIABILITIES: | ||||||||||
Interest rate swap | $ | - | $ | 204 | $ | - | $ | 204 | ||
Note_5_Fair_Value_Disclosures_3
Note 5. Fair Value Disclosures: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||
Three Months Ended September 30, 2014 | |||||||||
States and | |||||||||
CMOs | Political | ||||||||
Commercial | Subdivisions | Total | |||||||
Beginning balance | $ | 906 | $ | 2,379 | $ | 3,285 | |||
Gains (losses) included in other comprehensive income (loss): | |||||||||
Net unrealized gains (losses) | 18 | (14) | 4 | ||||||
Repayments and amortization of fixed maturities | - | (18) | (18) | ||||||
Balance at end of period | $ | 924 | $ | 2,347 | $ | 3,271 | |||
Three Months Ended September 30, 2013 | |||||||||
CMOs | States and | ||||||||
Political | |||||||||
Residential | Commercial | Subdivisions | Total | ||||||
Beginning balance | $ | 4,370 | $ | 571 | $ | 2,501 | $ | 7,442 | |
Gains (losses) included in earnings: | |||||||||
Net realized investment gains | 1,882 | - | - | 1,882 | |||||
Gains (losses) included in other comprehensive income (loss): | |||||||||
Net unrealized gains (losses) | (2,140) | 1 | (18) | (2,157) | |||||
Sales of securities | (2,343) | - | - | (2,343) | |||||
Repayments and amortization of fixed maturities | (220) | - | (10) | (230) | |||||
Balance at end of period | $ | 1,549 | $ | 572 | $ | 2,473 | $ | 4,594 | |
Nine Months Ended September 30, 2014 | |||||||||
States and | |||||||||
CMOs | Political | ||||||||
Commercial | Subdivisions | Total | |||||||
Beginning balance | $ | 593 | $ | 2,441 | $ | 3,034 | |||
Gains (losses) included in other comprehensive income (loss): | |||||||||
Net unrealized gains (losses) | 331 | (45) | 286 | ||||||
Repayments and amortization of fixed maturities | - | (49) | (49) | ||||||
Balance at end of period | $ | 924 | $ | 2,347 | $ | 3,271 | |||
Nine Months Ended September 30, 2013 | |||||||||
CMOs | States and | ||||||||
Political | |||||||||
Residential | Commercial | Subdivisions | Total | ||||||
Beginning balance | $ | 14,053 | $ | 570 | $ | 2,558 | $ | 17,181 | |
Gains (losses) included in earnings: | |||||||||
Net realized investment gains | 6,517 | - | - | 6,517 | |||||
Gains (losses) included in other comprehensive income (loss): | |||||||||
Net unrealized gains (losses) | (6,389) | 2 | (60) | (6,447) | |||||
Sales of securities | (11,663) | - | - | (11,663) | |||||
Repayments and amortization of fixed maturities | (969) | - | (25) | (994) | |||||
Balance at end of period | $ | 1,549 | $ | 572 | $ | 2,473 | $ | 4,594 |
Note_5_Fair_Value_Disclosures_4
Note 5. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Tables/Schedules | ' | ||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||
Level 2 | Level 2 | ||||||||||
Fair | Carrying | Fair | Carrying | ||||||||
Value | Value | Value | Value | ||||||||
FINANCIAL ASSETS: | |||||||||||
Policy loans | $ | 13,369 | $ | 10,680 | $ | 14,177 | $ | 11,328 | |||
FINANCIAL LIABILITIES: | |||||||||||
Funds on deposit | $ | 194,091 | $ | 194,140 | $ | 274,773 | $ | 274,826 | |||
Debt and junior subordinated | |||||||||||
debt securities | $ | 42,146 | $ | 42,146 | $ | 44,146 | $ | 44,146 |
Note_6_Goodwill_and_Other_Inta1
Note 6. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of Finite-Lived Intangible Assets | ' | ||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Gross | Gross | ||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||
Amount | Amortization | Amount | Amortization | ||||||
Finite-lived Intangible Assets: | |||||||||
Agent and broker relationships | $ | 22,725 | $ | 17,946 | $ | 22,725 | $ | 15,935 |
Note_6_Goodwill_and_Other_Inta2
Note 6. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of Indefinite-Lived Intangible Assets | ' | ||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Indefinite-lived Intangible Assets: | |||||||||
Insurance licenses | $ | 7,977 | $ | 7,977 |
Note_9_Accumulated_Other_Compr1
Note 9. Accumulated Other Comprehensive Income (loss): Schedule of Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
Three Months Ended September 30, 2014 | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Available-for Sale | Cash Flow | ||||||||
Securities | Hedge | Total | |||||||
Beginning balance | $ | (1,420) | $ | (99) | $ | (1,519) | |||
Other comprehensive income (loss) before reclassifications | (587) | 41 | (546) | ||||||
Amounts reclassified from accumulated OCI | (1,211) | - | (1,211) | ||||||
Net other comprehensive income (loss) | (1,798) | 41 | (1,757) | ||||||
Other comprehensive (income) loss attributable | |||||||||
to noncontrolling interests | 81 | - | 81 | ||||||
Ending balance | $ | (3,137) | $ | (58) | $ | (3,195) | |||
Three Months Ended September 30, 2013 | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Available-for Sale | Cash Flow | ||||||||
Securities | Hedge | Total | |||||||
Beginning balance | $ | (3,268) | $ | (191) | $ | (3,459) | |||
Other comprehensive income (loss) before reclassifications | (1,364) | 58 | (1,306) | ||||||
Amounts reclassified from accumulated OCI | (1,151) | - | (1,151) | ||||||
Net other comprehensive income (loss) | (2,515) | 58 | (2,457) | ||||||
Other comprehensive (income) loss attributable | |||||||||
to noncontrolling interests | (6) | - | (6) | ||||||
Ending balance | $ | (5,789) | $ | (133) | $ | (5,922) | |||
Nine Months Ended September 30, 2014 | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Available-for Sale | Cash Flow | ||||||||
Securities | Hedge | Total | |||||||
Beginning balance | $ | (10,350) | $ | (122) | $ | (10,472) | |||
Other comprehensive income (loss) before reclassifications | 12,177 | 64 | 12,241 | ||||||
Amounts reclassified from accumulated OCI | (4,832) | - | (4,832) | ||||||
Net other comprehensive income (loss) | 7,345 | 64 | 7,409 | ||||||
Other comprehensive (income) loss attributable | |||||||||
to noncontrolling interests | (132) | - | (132) | ||||||
Ending balance | $ | (3,137) | $ | (58) | $ | (3,195) | |||
Nine Months Ended September 30, 2013 | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Available-for Sale | Cash Flow | ||||||||
Securities | Hedge | Total | |||||||
Beginning balance | $ | 15,231 | $ | (218) | $ | 15,013 | |||
Other comprehensive income (loss) before reclassifications | (9,908) | 85 | (9,823) | ||||||
Amounts reclassified from accumulated OCI | (11,698) | - | (11,698) | ||||||
Net other comprehensive income (loss) | (21,606) | 85 | (21,521) | ||||||
Other comprehensive (income) loss attributable | |||||||||
to noncontrolling interests | 550 | - | 550 | ||||||
Acquired from noncontrolling interests | 36 | - | 36 | ||||||
Ending balance | $ | (5,789) | $ | (133) | $ | (5,922) |
Note_9_Accumulated_Other_Compr2
Note 9. Accumulated Other Comprehensive Income (loss): Reclassification out of Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||
Three Months Ended | Nine months Ended | ||||||||
September 30, | September 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Unrealized gains (losses) on available-for-sale securities | |||||||||
reclassified during the period to the following income | |||||||||
statement line items: | |||||||||
Net realized investment gains | $ | 1,535 | $ | 1,846 | $ | 7,022 | $ | 17,647 | |
Income before income tax | 1,535 | 1,846 | 7,022 | 17,647 | |||||
Tax effect | 324 | 695 | 2,190 | 5,949 | |||||
Net income | $ | 1,211 | $ | 1,151 | $ | 4,832 | $ | 11,698 |
Note_10_Sharebased_Compensatio2
Note 10. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Independence Holding Company Share Based Plans Total Member | ' | |||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
IHC’s Share-based Compensation Plan: | ||||||||||
Stock options | $ | 66 | $ | 53 | $ | 603 | $ | 143 | ||
Restricted stock units | 22 | 20 | 64 | 47 | ||||||
SARs | (190) | 363 | (113) | 741 | ||||||
Performance awards | - | - | - | (5) | ||||||
Share-based compensation expense, pre-tax | (102) | 436 | 554 | 926 | ||||||
Tax benefits | (41) | 174 | 221 | 369 | ||||||
Share-based compensation expense, net | $ | (61) | $ | 262 | $ | 333 | $ | 557 | ||
American Independence Corp Share Based Plans Total Member | ' | |||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
AMIC’s Share-based Compensation Plans: | ||||||||||
Stock options | $ | 13 | $ | 13 | $ | 40 | $ | 30 | ||
Share-based compensation expense, pre-tax | 13 | 13 | 40 | 30 | ||||||
Tax benefits | 4 | 4 | 14 | 10 | ||||||
Share-based compensation expense, net | $ | 9 | $ | 9 | $ | 26 | $ | 20 |
Note_10_Sharebased_Compensatio3
Note 10. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Independence Holding Company Share Based Plans Total Member | ' | |||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||
Shares | Weighted- Average | |||||
Under Option | Exercise Price | |||||
31-Dec-13 | 616,858 | $ | 9.35 | |||
Expired | -2,178 | 14.75 | ||||
30-Sep-14 | 614,680 | $ | 9.33 | |||
American Independence Corp Share Based Plans Total Member | ' | |||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||
Shares | Weighted- Average | |||||
Under Option | Exercise Price | |||||
31-Dec-13 | 222,285 | $ | 11.46 | |||
Granted | 13,334 | 10.8 | ||||
Exercised | (6,667) | 4.87 | ||||
Expired | (62,336) | 14.58 | ||||
30-Sep-14 | 166,616 | $ | 10.5 |
Note_10_Sharebased_Compensatio4
Note 10. Share-based Compensation: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Independence Holding Company Share Based Plans Total Member | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | ' | ||||
30-Sep-14 | |||||
Outstanding | Exercisable | ||||
Number of options | 614,680 | 532,180 | |||
Weighted average exercise price per share | $ | 9.33 | $ | 9.23 | |
Aggregate intrinsic value for all options (in thousands) | $ | 2,469 | $ | 2,192 | |
Weighted average contractual term remaining | 2.6 years | 2.4 years | |||
American Independence Corp Share Based Plans Total Member | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | ' | ||||
30-Sep-14 | |||||
Outstanding | Exercisable | ||||
Number of options | 166,616 | 144,393 | |||
Weighted average exercise price per share | $ | 10.5 | $ | 10.69 | |
Aggregate intrinsic value for all options (in thousands) | $ | 266 | $ | 227 | |
Weighted average contractual term remaining | 3.44 years | 2.54 years |
Note_10_Sharebased_Compensatio5
Note 10. Share-based Compensation: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Tables) (Independence Holding Company Share Based Plans Total Member) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Independence Holding Company Share Based Plans Total Member | ' | ||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | ' | ||||||
No. of | Weighted-Average | ||||||
Non-vested | Grant-Date | ||||||
Shares | Fair Value | ||||||
31-Dec-13 | 14,850 | $ | 10.6 | ||||
Granted | 7,425 | 13.27 | |||||
Vested | (7,425) | 10.3 | |||||
30-Sep-14 | 14,850 | $ | 12.09 |
Note_10_Sharebased_Compensatio6
Note 10. Share-based Compensation: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) (American Independence Corp Share Based Plans Total Member) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
American Independence Corp Share Based Plans Total Member | ' | ||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||
September 30, | |||||
2014 | 2013 | ||||
Weighted-average risk-free interest rate | 2.72% | 2.30% | |||
Annual dividend rate per share | - | - | |||
Weighted-average volatility factor of the Company's common stock | 38.27% | 45.00% | |||
Weighted-average expected term of options | 5 years | 5 years |
Note_13_Segment_Reporting_Sche
Note 13. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | 30-Sep | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Revenues: | |||||||||
Medical Stop-Loss | $ | 45,734 | $ | 42,043 | $ | 138,821 | $ | 127,833 | |
Fully Insured Health(A) | 57,412 | 71,778 | 184,839 | 203,896 | |||||
Group disability, life, annuities and DBL | 16,948 | 15,842 | 50,091 | 46,685 | |||||
Individual life, annuities and other | 8,764 | 9,542 | 26,049 | 34,162 | |||||
Corporate | 50 | 22 | 129 | 79 | |||||
128,908 | 139,227 | 399,929 | 412,655 | ||||||
Net realized investment gains | 844 | 2,417 | 6,914 | 18,771 | |||||
Total revenues | $ | 129,752 | $ | 141,644 | $ | 406,843 | $ | 431,426 | |
Income before income taxes: | |||||||||
Medical Stop-Loss | $ | 6,339 | $ | 3,404 | $ | 15,730 | $ | 9,836 | |
Fully Insured Health (A) | 370 | 615 | 2,325 | 474 | |||||
Group disability, life, annuities and DBL | 4,057 | 2,555 | 7,237 | 6,530 | |||||
Individual life, annuities and other (B) | (1,683) | (40) | (4,903) | (9,207) | |||||
Corporate | (1,423) | (2,485) | (5,833) | (5,022) | |||||
7,660 | 4,049 | 14,556 | 2,611 | ||||||
Net realized investment gains | 844 | 2,417 | 6,914 | 18,771 | |||||
Interest expense | (539) | (470) | (1,357) | (1,447) | |||||
Income before income taxes | $ | 7,965 | $ | 5,996 | $ | 20,113 | $ | 19,935 |
Note_1_Organization_Consolidat4
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies (Details) | Sep. 30, 2014 |
AMICSubsidiariesMember | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 90.00% |
GeneveAffiliatedEntityMember | ' |
EntityCommonStockOutstandingOwnershipPercent | 52.70% |
Note_1_Organization_Consolidat5
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: New Accounting Pronouncements (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Deferred Cost of Mandatory Fees Under Affordable Care Act | ' | $1,500 |
Mandatory Fees Under Affordable Care Act | $1,816 | $1,500 |
Note_2_Income_Per_Common_Share1
Note 2. Income Per Common Share (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Details | ' | ' | ' | ' |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 168 | 52 | 160 | 106 |
Note_3_Investment_Securities_S1
Note 3. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Available For Sale Debt Securities Amortized Cost Basis | $571,950 | $558,121 |
Available-for-sale Debt Securities Gross Unrealized Gain | 3,298 | 4,131 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 8,636 | 19,965 |
Fixed maturities, available-for-sale | 566,612 | 542,287 |
Available For Sale Equity Securities Amortized Cost Basis | 12,456 | 11,521 |
Available-for-sale Equity Securities, Gross Unrealized Gain | 813 | 386 |
Available-for-sale Equity Securities, Gross Unrealized Loss | 148 | 104 |
Equity securities, available-for-sale | 13,121 | 11,803 |
Domestic Corporate Debt Securities | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 244,113 | 215,412 |
Available-for-sale Debt Securities Gross Unrealized Gain | 410 | 1,315 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 4,692 | 7,467 |
Fixed maturities, available-for-sale | 239,831 | 209,260 |
Residential Mortgage Backed Securities Member | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 3,158 | 2,457 |
Available-for-sale Debt Securities Gross Unrealized Gain | 20 | 8 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 13 | 8 |
Fixed maturities, available-for-sale | 3,165 | 2,457 |
Commercial Mortgage Backed Securities | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 975 | 975 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 51 | 382 |
Fixed maturities, available-for-sale | 924 | 593 |
US Treasury Securities | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 22,760 | 15,596 |
Available-for-sale Debt Securities Gross Unrealized Gain | 25 | 271 |
Available-for-sale Debt Securities, Gross Unrealized Loss | ' | 6 |
Fixed maturities, available-for-sale | 22,785 | 15,861 |
US Government Agencies Debt Securities | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 69 | 79 |
Available-for-sale Debt Securities Gross Unrealized Gain | 3 | 4 |
Fixed maturities, available-for-sale | 72 | 83 |
US Government-sponsored Enterprises Debt Securities | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 16,505 | 28,484 |
Available-for-sale Debt Securities Gross Unrealized Gain | 12 | 4 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 150 | 340 |
Fixed maturities, available-for-sale | 16,367 | 28,148 |
US States and Political Subdivisions Debt Securities | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 234,610 | 256,645 |
Available-for-sale Debt Securities Gross Unrealized Gain | 2,560 | 2,435 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 3,017 | 9,377 |
Fixed maturities, available-for-sale | 234,153 | 249,703 |
Foreign Government Debt | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 45,724 | 34,437 |
Available-for-sale Debt Securities Gross Unrealized Gain | 168 | 20 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 694 | 2,107 |
Fixed maturities, available-for-sale | 45,198 | 32,350 |
Redeemable Preferred Stock | ' | ' |
Available For Sale Debt Securities Amortized Cost Basis | 4,036 | 4,036 |
Available-for-sale Debt Securities Gross Unrealized Gain | 100 | 74 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 19 | 278 |
Fixed maturities, available-for-sale | 4,117 | 3,832 |
COMMON STOCK | ' | ' |
Available For Sale Equity Securities Amortized Cost Basis | 8,452 | 7,517 |
Available-for-sale Equity Securities, Gross Unrealized Gain | 700 | 328 |
Available-for-sale Equity Securities, Gross Unrealized Loss | 145 | 70 |
Equity securities, available-for-sale | 9,007 | 7,775 |
Nonredeemable Preferred Stock | ' | ' |
Available For Sale Equity Securities Amortized Cost Basis | 4,004 | 4,004 |
Available-for-sale Equity Securities, Gross Unrealized Gain | 113 | 58 |
Available-for-sale Equity Securities, Gross Unrealized Loss | 3 | 34 |
Equity securities, available-for-sale | $4,114 | $4,028 |
Note_3_Investment_Securities_I1
Note 3. Investment Securities: Investments Classified by Contractual Maturity Date (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis | $15,306 | ' |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 15,162 | ' |
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost Basis | 87,574 | ' |
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value | 87,064 | ' |
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Amortized Cost Basis | 219,861 | ' |
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Fair Value | 217,224 | ' |
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Amortized Cost Basis | 229,530 | ' |
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value | 227,660 | ' |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 19,679 | ' |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 19,502 | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 571,950 | ' |
Fixed maturities, available-for-sale | $566,612 | $542,287 |
Note_3_Investment_Securities_A1
Note 3. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | $207,068 | $335,792 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 2,828 | 14,937 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 201,006 | 63,529 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 5,956 | 5,132 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 408,074 | 399,321 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 8,784 | 20,069 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 76 | 126 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 65 | 27 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 141 | 153 |
Domestic Corporate Debt Securities | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 107,877 | 124,531 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 1,754 | 5,340 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 83,832 | 21,070 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 2,938 | 2,127 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 191,709 | 145,601 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 4,692 | 7,467 |
Residential Mortgage Backed Securities Member | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 1,657 | 2,047 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 13 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,657 | 2,047 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 13 | 8 |
Commercial Mortgage Backed Securities | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 924 | 593 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 51 | 382 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 924 | 593 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 51 | 382 |
US Government-sponsored Enterprises Debt Securities | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 9,164 | 22,731 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 80 | 123 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 2,516 | 5,360 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 70 | 217 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 11,680 | 28,091 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 150 | 340 |
US States and Political Subdivisions Debt Securities | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 59,372 | 149,704 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 627 | 7,312 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 95,235 | 32,983 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 2,390 | 2,065 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 154,607 | 182,687 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 3,017 | 9,377 |
Foreign Government Debt | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 21,238 | 27,587 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 187 | 1,766 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 18,499 | 3,523 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 507 | 341 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 39,737 | 31,110 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 694 | 2,107 |
Redeemable Preferred Stock | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 3,743 | 3,485 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 19 | 278 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,743 | 3,485 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 19 | 278 |
Debt Securities | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 203,051 | 330,578 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 2,680 | 14,833 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 201,006 | 63,529 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 5,956 | 5,132 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 404,057 | 394,107 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 8,636 | 19,965 |
COMMON STOCK | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 2,610 | 2,589 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 145 | 70 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,610 | 2,589 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 145 | 70 |
Nonredeemable Preferred Stock | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 1,407 | 2,625 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 3 | 34 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,407 | 2,625 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 3 | 34 |
Equity Securities | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 4,017 | 5,214 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 148 | 104 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,017 | 5,214 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 148 | 104 |
US Treasury Securities | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | ' | 493 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | ' | 6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | 493 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | ' | $6 |
Note_3_Investment_Securities_R1
Note 3. Investment Securities: Realized Gain (Loss) on Investments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments | $1,641 | $2,045 | $7,704 | $18,498 |
Trading Securities, Realized Gain (Loss) | 321 | 744 | 351 | 1,129 |
Other Realized Gain (Loss) Excluding Other Than Temporary Impairments | -108 | -199 | -683 | -853 |
Marketable Securities, Gain (Loss), Excluding Other than Temporary Impairments | 1,854 | 2,590 | 7,372 | 18,774 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | -1,010 | -173 | -458 | -3 |
Marketable Securities, Unrealized Gain (Loss), Excluding Other than Temporary Impairments | -1,010 | -173 | -458 | -3 |
Net realized investment gains | 844 | 2,417 | 6,914 | 18,771 |
Debt Securities | ' | ' | ' | ' |
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments | 1,641 | 2,045 | 7,709 | 18,321 |
Preferred Stock | ' | ' | ' | ' |
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments | ' | ' | ($5) | $177 |
Note_3_Investment_Securities_D
Note 3. Investment Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Collateralized Mortgage Backed Securities | Collateralized Mortgage Backed Securities | |||||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | $71,845 | $57,418 | $297,372 | $528,428 | ' | ' |
Available-for-sale Securities, Gross Realized Gains | 1,794 | 2,324 | 8,398 | 21,060 | ' | ' |
Available-for-sale Securities, Gross Realized Losses | 153 | 279 | 694 | 2,562 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities | ' | ' | ' | ' | $335 | $335 |
Note_3_Investment_Securities_O1
Note 3. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) (USD $) | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Details | ' | ' | ' | ' | ' |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $1,976 | $473 | $473 | $473 | $563 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold | 1,413 | ' | ' | ' | ' |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $563 | $473 | $473 | $473 | $563 |
Note_4_Cash_Flow_Hedge_Details
Note 4. Cash Flow Hedge (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Notes Payable to Banks | ' | ' |
Long Term Debt Percentage Bearing Fixed Interest Rate | 4.95% | 4.95% |
Interest Rate Swap | ' | ' |
Derivative Liability Notional Amount | 4,000 | 6,000 |
Derivative Fixed Interest Rate | 1.60% | 1.60% |
Derivative Liability, Fair Value, Gross Liability | 97 | 204 |
Interest Rate Swap | Accounts Payable and Accrued Liabilities | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 97 | 204 |
Note_5_Fair_Value_Disclosures_5
Note 5. Fair Value Disclosures: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed maturities, available-for-sale | $566,612 | $542,287 |
Equity securities, available-for-sale | 13,121 | 11,803 |
Trading securities | 11,370 | 7,125 |
Assets, Fair Value Disclosure | 591,103 | 561,215 |
Interest Rate Swap | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 97 | 204 |
Domestic Corporate Debt Securities | ' | ' |
Fixed maturities, available-for-sale | 239,831 | 209,260 |
Residential Mortgage Backed Securities Member | ' | ' |
Fixed maturities, available-for-sale | 3,165 | 2,457 |
Commercial Mortgage Backed Securities | ' | ' |
Fixed maturities, available-for-sale | 924 | 593 |
US Treasury Securities | ' | ' |
Fixed maturities, available-for-sale | 22,785 | 15,861 |
US Government Agencies Debt Securities | ' | ' |
Fixed maturities, available-for-sale | 72 | 83 |
US Government-sponsored Enterprises Debt Securities | ' | ' |
Fixed maturities, available-for-sale | 16,367 | 28,148 |
US States and Political Subdivisions Debt Securities | ' | ' |
Fixed maturities, available-for-sale | 234,153 | 249,703 |
Foreign Government Debt | ' | ' |
Fixed maturities, available-for-sale | 45,198 | 32,350 |
Redeemable Preferred Stock | ' | ' |
Fixed maturities, available-for-sale | 4,117 | 3,832 |
COMMON STOCK | ' | ' |
Equity securities, available-for-sale | 9,007 | 7,775 |
Nonredeemable Preferred Stock | ' | ' |
Equity securities, available-for-sale | 4,114 | 4,028 |
Equity Securities | ' | ' |
Trading Securities, Equity | 11,370 | 7,125 |
Fair Value, Inputs, Level 1 | ' | ' |
Fixed maturities, available-for-sale | 4,117 | 3,832 |
Equity securities, available-for-sale | 13,121 | 11,803 |
Trading securities | 11,370 | 7,125 |
Assets, Fair Value Disclosure | 28,608 | 22,760 |
Fair Value, Inputs, Level 1 | Redeemable Preferred Stock | ' | ' |
Fixed maturities, available-for-sale | 4,117 | 3,832 |
Fair Value, Inputs, Level 1 | COMMON STOCK | ' | ' |
Equity securities, available-for-sale | 9,007 | 7,775 |
Fair Value, Inputs, Level 1 | Nonredeemable Preferred Stock | ' | ' |
Equity securities, available-for-sale | 4,114 | 4,028 |
Fair Value, Inputs, Level 1 | Equity Securities | ' | ' |
Trading Securities, Equity | 11,370 | 7,125 |
Fair Value, Inputs, Level 2 | ' | ' |
Fixed maturities, available-for-sale | 559,224 | 535,421 |
Assets, Fair Value Disclosure | 559,224 | 535,421 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 97 | 204 |
Fair Value, Inputs, Level 2 | Domestic Corporate Debt Securities | ' | ' |
Fixed maturities, available-for-sale | 239,831 | 209,260 |
Fair Value, Inputs, Level 2 | Residential Mortgage Backed Securities Member | ' | ' |
Fixed maturities, available-for-sale | 3,165 | 2,457 |
Fair Value, Inputs, Level 2 | US Treasury Securities | ' | ' |
Fixed maturities, available-for-sale | 22,785 | 15,861 |
Fair Value, Inputs, Level 2 | US Government Agencies Debt Securities | ' | ' |
Fixed maturities, available-for-sale | 72 | 83 |
Fair Value, Inputs, Level 2 | US Government-sponsored Enterprises Debt Securities | ' | ' |
Fixed maturities, available-for-sale | 16,367 | 28,148 |
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities | ' | ' |
Fixed maturities, available-for-sale | 231,806 | 247,262 |
Fair Value, Inputs, Level 2 | Foreign Government Debt | ' | ' |
Fixed maturities, available-for-sale | 45,198 | 32,350 |
Fair Value, Inputs, Level 3 | ' | ' |
Fixed maturities, available-for-sale | 3,271 | 3,034 |
Assets, Fair Value Disclosure | 3,271 | 3,034 |
Fair Value, Inputs, Level 3 | Commercial Mortgage Backed Securities | ' | ' |
Fixed maturities, available-for-sale | 924 | 593 |
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities | ' | ' |
Fixed maturities, available-for-sale | $2,347 | $2,441 |
Note_5_Fair_Value_Disclosures_6
Note 5. Fair Value Disclosures: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $3,285 | $7,442 | $3,034 | $17,181 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 4 | -2,157 | 286 | -6,447 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 18 | 230 | 49 | 994 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 3,271 | 4,594 | 3,271 | 4,594 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | 2,343 | ' | 11,663 |
Net realized investment gains | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | ' | 1,882 | ' | 6,517 |
Commercial Mortgage Backed Securities | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 906 | 571 | 593 | 570 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 18 | 1 | 331 | 2 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 924 | 572 | 924 | 572 |
US States and Political Subdivisions Debt Securities | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 2,379 | 2,501 | 2,441 | 2,558 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | -14 | -18 | -45 | -60 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 18 | 10 | 49 | 25 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 2,347 | 2,473 | 2,347 | 2,473 |
Residential Mortgage Backed Securities Member | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | ' | 4,370 | ' | 14,053 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | ' | -2,140 | ' | -6,389 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | 220 | ' | 969 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | ' | 1,549 | ' | 1,549 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | 2,343 | ' | 11,663 |
Residential Mortgage Backed Securities Member | Net realized investment gains | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | ' | $1,882 | ' | $6,517 |
Note_5_Fair_Value_Disclosures_7
Note 5. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Funds on deposit | $194,140 | $274,826 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | ' | ' |
Policy Loans Receivable | 13,369 | 14,177 |
Funds on deposit | 194,091 | 274,773 |
Long-term Debt | 42,146 | 44,146 |
Carrying (Reported) Amount, Fair Value Disclosure | ' | ' |
Policy Loans Receivable | 10,680 | 11,328 |
Funds on deposit | 194,140 | 274,826 |
Long-term Debt | $42,146 | $44,146 |
Note_6_Goodwill_and_Other_Inta3
Note 6. Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Goodwill | $50,318 | ' | $50,318 | ' | $50,318 |
Amortization of Intangible Assets | 653 | 807 | 2,011 | 2,443 | ' |
Other Assets | ' | ' | ' | ' | ' |
Intangible Assets, Net (Excluding Goodwill) | $12,756 | ' | $12,756 | ' | $14,767 |
Note_6_Goodwill_and_Other_Inta4
Note 6. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) (Customer Relationships, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Customer Relationships | ' | ' |
Finite-Lived Intangible Assets, Gross | $22,725 | $22,725 |
Finite-Lived Intangible Assets, Accumulated Amortization | $17,946 | $15,935 |
Note_6_Goodwill_and_Other_Inta5
Note 6. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) (Licensing Agreements, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Licensing Agreements | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $7,977 | $7,977 |
Note_7_Debt_Details
Note 7. Debt (Details) (USD $) | 9 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 31, 2014 |
Notes Payable to Banks | |||
Repayment of long-term debt | $2,000 | $2,000 | $2,000 |
Note_8_Income_Taxes_Details
Note 8. Income Taxes (Details) (AMICSubsidiariesMember, USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Deferred Tax Assets, Net of Valuation Allowance | $8,857 | $10,689 | |
Domestic Tax Authority | ' | ' | |
Operating Loss Carryforwards | $261,691 | [1] | ' |
[1] | Which expire in varying amounts through the year 2028, a significant portion expires in 2020. |
Note_9_Accumulated_Other_Compr3
Note 9. Accumulated Other Comprehensive Income (loss): Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated other comprehensive income (loss) | ($1,519) | ($3,459) | ($10,472) | $15,013 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -546 | -1,306 | 12,241 | -9,823 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,211 | 1,151 | 4,832 | 11,698 |
Other comprehensive income (loss), net of tax | -1,757 | -2,457 | 7,409 | -21,521 |
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests | 81 | -6 | -132 | 550 |
Accumulated other comprehensive income (loss) | -3,195 | -5,922 | -3,195 | -5,922 |
Unrealized Gains/Losses Purchased from Noncontrolling Interests | ' | ' | ' | 36 |
Accumulated Net Unrealized Investment Gain (Loss) | ' | ' | ' | ' |
Accumulated other comprehensive income (loss) | -1,420 | -3,268 | -10,350 | 15,231 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -587 | -1,364 | 12,177 | -9,908 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,211 | 1,151 | 4,832 | 11,698 |
Other comprehensive income (loss), net of tax | -1,798 | -2,515 | 7,345 | -21,606 |
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests | 81 | -6 | -132 | 550 |
Accumulated other comprehensive income (loss) | -3,137 | -5,789 | -3,137 | -5,789 |
Unrealized Gains/Losses Purchased from Noncontrolling Interests | ' | ' | ' | 36 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' | ' |
Accumulated other comprehensive income (loss) | -99 | -191 | -122 | -218 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 41 | 58 | 64 | 85 |
Other comprehensive income (loss), net of tax | 41 | 58 | 64 | 85 |
Accumulated other comprehensive income (loss) | ($58) | ($133) | ($58) | ($133) |
Note_9_Accumulated_Other_Compr4
Note 9. Accumulated Other Comprehensive Income (loss): Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net realized investment gains | $844 | $2,417 | $6,914 | $18,771 |
Income (loss) from continuing operations before income taxes | 7,965 | 5,996 | 20,113 | 19,935 |
Income taxes (benefits) | 3,141 | 2,080 | 7,404 | 6,821 |
Net income (loss) | 4,824 | 3,916 | 12,709 | 13,114 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | ' | ' | ' | ' |
Net realized investment gains | 1,535 | 1,846 | 7,022 | 17,647 |
Income (loss) from continuing operations before income taxes | 1,535 | 1,846 | 7,022 | 17,647 |
Income taxes (benefits) | 324 | 695 | 2,190 | 5,949 |
Net income (loss) | $1,211 | $1,151 | $4,832 | $11,698 |
Note_10_Sharebased_Compensatio7
Note 10. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Independence Holding Company Share Based Plans Total Member | Employee Stock Option | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years |
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs) | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years |
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs) | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years |
American Independence Corp Share Based Plans Total Member | Employee Stock Option | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '10 years |
American Independence Corp Share Based Plans Total Member | Employee Stock Option | Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years |
American Independence Corp Share Based Plans Total Member | Employee Stock Option | Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years |
American Independence Corp Share Based Plans Total Member | Restricted Stock Units (RSUs) | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years |
Note_10_Sharebased_Compensatio8
Note 10. Share-based Compensation (Details) (USD $) | Sep. 30, 2014 | 31-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | Independence Holding Company Share Based Plans Total Member | Independence Holding Company Share Based Plans Total Member | Independence Holding Company Share Based Plans Total Member | Independence Holding Company Share Based Plans Total Member | Independence Holding Company Share Based Plans Total Member | Independence Holding Company Share Based Plans Total Member | Independence Holding Company Share Based Plans Total Member | Independence Holding Company Share Based Plans Total Member | Independence Holding Company Share Based Plans Total Member | American Independence Corp Share Based Plans Total Member | American Independence Corp Share Based Plans Total Member |
Employee Stock Option | Employee Stock Option | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Stock Appreciation Rights (SARs) | Stock Appreciation Rights (SARs) | Stock Appreciation Rights (SARs) | Stock Appreciation Rights (SARs) | Employee Stock Option | Employee Stock Option | ||
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 377,286 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Description and Terms | ' | 'In May 2014, option agreements affecting 15 employees were modified to extend the expirations of their terms from 2015 to 2017 and as a result, the Company recorded incremental compensation costs of $405,000. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | ' | $405 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options | ' | ' | 121 | ' | ' | ' | ' | ' | ' | 95 | ' |
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Period For Recognition 1 | ' | ' | '6 months | '2 years | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | 7,425 | 7,425 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | $13.27 | $11.66 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | ' | ' | ' | 103 | 69 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | ' | ' | ' | 152 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | ' | ' | ' | ' | ' | 247,950 | 251,800 | ' | ' | ' | ' |
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | ' | ' | ' | ' | ' | ' | ' | $1,189 | $1,307 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.70 | $4.04 |
Note_10_Sharebased_Compensatio9
Note 10. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Independence Holding Company Share Based Plans Total Member | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ($102) | $436 | $554 | $926 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | -41 | 174 | 221 | 369 |
Allocated Share-based Compensation Expense, Net of Tax | -61 | 262 | 333 | 557 |
Independence Holding Company Share Based Plans Total Member | Employee Stock Option | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 66 | 53 | 603 | 143 |
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs) | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 22 | 20 | 64 | 47 |
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs) | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | -190 | 363 | -113 | 741 |
Independence Holding Company Share Based Plans Total Member | Performance Shares | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | -5 |
American Independence Corp Share Based Plans Total Member | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 13 | 13 | 40 | 30 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 4 | 4 | 14 | 10 |
Allocated Share-based Compensation Expense, Net of Tax | 9 | 9 | 26 | 20 |
American Independence Corp Share Based Plans Total Member | Employee Stock Option | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $13 | $13 | $40 | $30 |
Recovered_Sheet1
Note 10. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Details) (Employee Stock Option, USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Independence Holding Company Share Based Plans Total Member | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | 616,858 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $9.33 | $9.35 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 2,178 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $14.75 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | 614,680 | ' |
American Independence Corp Share Based Plans Total Member | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | 222,285 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $10.50 | $11.46 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 62,336 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $14.58 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | 166,616 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 13,334 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $10.80 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 6,667 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $4.87 | ' |
Recovered_Sheet2
Note 10. Share-based Compensation: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details) (Employee Stock Option, USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
Independence Holding Company Share Based Plans Total Member | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 614,680 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 532,180 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $9.33 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $9.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $2,469 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | 2,192 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | '2 years 7 months 6 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | '2 years 4 months 24 days |
American Independence Corp Share Based Plans Total Member | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 166,616 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 144,393 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $10.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $10.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 266 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $227 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | '3 years 5 months 8 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | '2 years 6 months 14 days |
Recovered_Sheet3
Note 10. Share-based Compensation: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Details) (Independence Holding Company Share Based Plans Total Member, Restricted Stock Units (RSUs), USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 14,850 | ' | 14,850 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $12.09 | ' | $10.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 7,425 | 7,425 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $13.27 | $11.66 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 7,425 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $10.30 | ' | ' |
Recovered_Sheet4
Note 10. Share-based Compensation: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) (American Independence Corp Share Based Plans Total Member, Employee Stock Option) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
American Independence Corp Share Based Plans Total Member | Employee Stock Option | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.72% | 2.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 38.27% | 45.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '5 years | '5 years |
Note_11_Supplemental_Disclosur1
Note 11. Supplemental Disclosures of Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Details | ' | ' |
Income Taxes Paid (Refunds), Net | ($2,598) | ($612) |
Interest Paid | $1,366 | $1,458 |
Note_12_Commitments_and_Contin1
Note 12. Commitments and Contingencies (Details) (USD $) | 1 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Sep. 30, 2013 |
Details | ' | ' |
Loss Contingency, Settlement Agreement, Terms | ' | 'On September 1, 2013, Madison National Life entered into an agreement with a former policyholder and accrued for a return of premium in connection with health insurance business written during 2007. The agreement was entered into in response to a potential lawsuit. In April 2014, the Company fulfilled its obligation under the terms of the agreement with a payment of $1,541,000 representing return of premium reserves (net of recoveries). The Company terminated the MGU that produced this business in 2008. |
Loss Contingency Accrual, Payments | $1,541 | ' |
Note_13_Segment_Reporting_Sche1
Note 13. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
TOTAL REVENUES | $129,752 | $141,644 | $406,843 | $431,426 |
Income (loss) from continuing operations before income taxes | 7,965 | 5,996 | 20,113 | 19,935 |
Operating Segments | ' | ' | ' | ' |
TOTAL REVENUES | 128,908 | 139,227 | 399,929 | 412,655 |
Income (loss) from continuing operations before income taxes | 7,660 | 4,049 | 14,556 | 2,611 |
Segment Reconciling Items | Net realized investment gains | ' | ' | ' | ' |
TOTAL REVENUES | 844 | 2,417 | 6,914 | 18,771 |
Income (loss) from continuing operations before income taxes | 844 | 2,417 | 6,914 | 18,771 |
Segment Reconciling Items | Interest Expense | ' | ' | ' | ' |
Income (loss) from continuing operations before income taxes | -539 | -470 | -1,357 | -1,447 |
Medical Stop-Loss Segment Member | ' | ' | ' | ' |
TOTAL REVENUES | 45,734 | 42,043 | 138,821 | 127,833 |
Income (loss) from continuing operations before income taxes | 6,339 | 3,404 | 15,730 | 9,836 |
Fully Insured Segment Member | ' | ' | ' | ' |
TOTAL REVENUES | 57,412 | 71,778 | 184,839 | 203,896 |
Income (loss) from continuing operations before income taxes | 370 | 615 | 2,325 | 474 |
Group disability, life annuities and DBL Segment Member | ' | ' | ' | ' |
TOTAL REVENUES | 16,948 | 15,842 | 50,091 | 46,685 |
Income (loss) from continuing operations before income taxes | 4,057 | 2,555 | 7,237 | 6,530 |
Individual life annuities and other Segment Member | ' | ' | ' | ' |
TOTAL REVENUES | 8,764 | 9,542 | 26,049 | 34,162 |
Income (loss) from continuing operations before income taxes | -1,683 | -40 | -4,903 | -9,207 |
Corporate | ' | ' | ' | ' |
TOTAL REVENUES | 50 | 22 | 129 | 79 |
Income (loss) from continuing operations before income taxes | ($1,423) | ($2,485) | ($5,833) | ($5,022) |
Note_13_Segment_Reporting_Deta
Note 13. Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Amortization of Intangible Assets | $653 | $807 | $2,011 | $2,443 |
Fully Insured Segment Member | ' | ' | ' | ' |
Amortization of Intangible Assets | 493 | 602 | 1,477 | 1,810 |
Individual life annuities and other Segment Member | ' | ' | ' | ' |
Amortization of Other Deferred Charges | 1,699 | ' | 2,938 | ' |
Deferred Policy Acquisition Cost, Amortization Expense, Effect of Adjustments to Estimated Gross Profit | ' | ' | ' | $9,307 |