• Filing Date: 2014-03-12
  • Form Type: 10-K
  • Description: Annual report
v2.4.0.8
Deferred Policy Acquisition Costs
12 Months Ended
Dec. 31, 2013
Insurance [Abstract]  
Deferred Policy Acquisition Costs

Note 7 — Deferred Policy Acquisition Costs

The following table summarizes the activity with respect to deferred policy acquisition costs:

 

     December 31,  
     2013     2012  

Beginning balance

   $ 10,032      $ 12,321   

Policy acquisition costs deferred

     31,097        15,984   

Amortization

     (27,058     (18,273
  

 

 

   

 

 

 

Ending balance

   $ 14,071      $ 10,032   
  

 

 

   

 

 

 

Effective January 1, 2012, the Company adopted, on a prospective basis, the accounting standards update related to DAC. As such, the Company recognized additional amortization expense of $1,210 with a corresponding decrease in deferred acquisition costs as of the date of adoption. This one-time adjustment reduced our net income for the year ended December 31, 2012 by approximately $741, or $0.08 earnings per diluted common share. In addition, certain direct marketing, compensation, and other administrative costs are no longer deferred. Rather, such costs are expensed as incurred beginning January 1, 2012.

The amount of policy acquisition costs amortized and included in policy acquisition and other underwriting expenses for the years ended December 31, 2013, 2012 and 2011 was $27,058, $18,273, and $19,450, respectively.