Segment Information
9 Months Ended
Sep. 30, 2011
Segment Information [Abstract] 
Segment Information

11. Segment Information

The Company has three reportable business segments, which are defined based on the nature of the products and services offered: Individual Insurance, Group Insurance and Old American. The Individual Insurance segment consists of individual insurance products for both Kansas City Life and Sunset Life. The Individual Insurance segment is marketed through a nationwide sales force of independent general agents and third-party marketing arrangements. The Group segment consists of sales of group life, dental, vision and long-term and short-term disability products. This segment is marketed through a nationwide sales force of independent general agents, group brokers and third-party marketing arrangements. The Old American segment consists of individual insurance products designed largely as final expense products. These products are marketed through a nationwide general agency sales force with exclusive territories, using direct response marketing to supply agents with leads.

Separate investment portfolios are maintained for each of the three life insurance companies. However, investment assets and income are allocated to the Group Insurance segment based upon its cash flows and future policy benefit liabilities. Most home office functions are fully integrated for all segments in order to maximize economies of scale. Therefore, operating expenses are allocated to the segments based upon internal cost studies, which are consistent with industry cost methodologies.

Inter-segment revenues are not material. The Company operates solely in the United States and no individual customer accounts for 10% or more of the Company's revenue.

 

The following schedule provides the financial performance of each of the three reportable operating segments of the Company.

 

            Individual
Insurance		      Group
Insurance		     Old
American		      Intercompany
Eliminations 1 		    Consolidated  

Insurance revenues:

                

Third quarter:

      2011       $ 28,377       $ 12,613      $ 17,048       $ (135 )    $ 57,903   
     2010         34,617         11,525        16,420         (133 )      62,429   

Nine months:

      2011         84,651         37,413        50,655         (404 )      172,315   
     2010         99,957         36,728        48,630         (396 )      184,919   

Net investment income:

                

Third quarter:

      2011       $ 40,031       $ 133      $ 2,929       $ -      $ 43,093   
     2010         40,842         149        3,129         -        44,120   

Nine months:

      2011         123,798         420        9,159         -        133,377   
     2010         121,014         456        9,226         -        130,696   

Net income (loss):

                

Third quarter:

      2011       $ 3,083       $ 299      $ 1,084       $ -      $ 4,466   
     2010         4,413         (758 )      801         -        4,456   

Nine months:

      2011         20,333         (461 )      558         -        20,430   
     2010         15,651         (1,630 )      1,458         -        15,479   

 

1

Elimination entries to remove intercompany transactions for life and accident and health insurance that the Company purchases for its employees and agents were as follows: insurance revenues from the Group Insurance segment and operating expenses from the Individual Insurance segment to arrive at Consolidated Statements of Income.