Segment Results

9 Months Ended

Sep. 30, 2011

Segment Results [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Results

The Company conducts its business through three business segments: (i) Payment Protection; (ii) BPO; and (iii) Brokerage. The revenue for each segment is presented to reflect the operating characteristics of the segment. The Company allocates certain revenues and costs to the segments. These items primarily consist of corporate-related income, transaction related costs, executive stock compensation and other overhead expenses. The Company measures the profitability of its business segments with the allocation of Corporate income and expenses and without taking into account amortization, depreciation, interest expense and income taxes. The Company refers to these performance measures as segment EBITDA (earnings before interest, taxes, depreciation and amortization) and segment EBITDA margin (segment EBITDA divided by segment net revenues).

The following table reconciles segment information to the Company's consolidated results of operations and provides a summary of other key financial information for each of the Company's segments:

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010
Segment Net Revenue
Payment Protection
Service and administrative fees	$	5,695		$	3,449		$	14,704		$	8,572
Ceding commission	7,027			9,455			21,428			22,468
Net investment income	801			865			2,636			2,799
Net realized gains	1,196			107			2,423			156
Other income	18			(62		)	138			64
Net earned premium	28,673			28,255			84,646			83,417
Net losses and loss adjustment expenses	(9,714		)	(10,993		)	(28,338		)	(27,086		)
Commissions	(17,926		)	(16,432		)	(53,766		)	(53,631		)
Total Payment Protection	15,770			14,644			43,871			36,759
BPO	3,833			4,715			11,088			13,605
Brokerage
Brokerage commissions and fees	8,611			6,031			25,686			19,163
Service and administrative fees	597			1,124			2,249			3,931
Total Brokerage	9,208			7,155			27,935			23,094
Total	28,811			26,514			82,894			73,458
Operating Expenses
Payment Protection	8,349			6,435			25,409			17,720
BPO	2,717			2,588			8,164			7,997
Brokerage (1)	7,491			5,783			21,837			17,687
Corporate	36			1,220			1,763			2,062
Total	18,593			16,026			57,173			45,466
EBITDA
Payment Protection	7,421			8,209			18,462			19,039
BPO	1,116			2,127			2,924			5,608
Brokerage (1)	1,717			1,372			6,098			5,407
Corporate	(36		)	(1,220		)	(1,763		)	(2,062		)
Total	10,218			10,488			25,721			27,992
Depreciation and Amortization
Payment Protection	927			327			3,204			1,382
BPO	307			457			824			711
Brokerage	650			435			1,683			1,243
Total	1,884			1,219			5,711			3,336
Interest
Payment Protection	1,053			1,873			3,622			5,238
BPO	96			126			258			324
Brokerage	757			247			1,982			560
Total	1,906			2,246			5,862			6,122
Income before income taxes and non-controlling interest
Payment Protection	5,441			6,009			11,636			12,419
BPO	713			1,544			1,842			4,573
Brokerage (1)	310			690			2,433			3,604
Corporate	(36		)	(1,220		)	(1,763		)	(2,062		)
Total income before income taxes and non-controlling interest	6,428			7,023			14,148			18,534
Income Taxes	2,292			2,576			5,003			6,872
Less: net income (loss) attributable to non-controlling interest	1			—			(171		)	(31		)
Net income	$	4,135		$	4,447		$	9,316		$	11,693
(1) - Includes loss on sale of subsidiary of $477 for the three and nine months ended September 30, 2011, respectively.

As of January 1, 2011, certain BPO and Brokerage distribution channels were re-aligned to better reflect the segments business focus. The distribution channel results for the three months and nine months ended September 30, 2010 have been reclassified from their prior period segment presentation. The impact of these 2010 reclassifications were $0.9 million in revenues and $0.8 million in expenses being moved from the BPO segment into the Brokerage segment in order to conform to the presentation for the three months ended September 30, 2011 and $3.3 million in revenues and $2.9 million in expenses being moved from the BPO segment into the Brokerage segment in order to conform to the presentation for the nine months ended September 30, 2011.

Reconciliation of Segment Net Revenue and EBITDA to Total Revenue and Net Income

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010
Revenue
Payment Protection	$	15,770		$	14,644		$	43,871		$	36,759
BPO	3,833			4,715			11,088			13,605
Brokerage	9,208			7,155			27,935			23,094
Segment revenue	28,811			26,514			82,894			73,458
Net losses and loss adjustment expenses	9,714			10,993			28,338			27,086
Commissions	17,926			16,432			53,766			53,631
Total revenue	56,451			53,939			164,998			154,175
Operating Expenses
Payment Protection	8,349			6,435			25,409			17,720
BPO	2,717			2,588			8,164			7,997
Brokerage (1)	7,491			5,783			21,837			17,687
Corporate	36			1,220			1,763			2,062
Total Operating Expenses	18,593			16,026			57,173			45,466
Net losses and loss adjustment expenses	9,714			10,993			28,338			27,086
Commissions	17,926			16,432			53,766			53,631
Total expenses before depreciation, amortization and interest	46,233			43,451			139,277			126,183
EBITDA
Payment Protection	7,421			8,209			18,462			19,039
BPO	1,116			2,127			2,924			5,608
Brokerage (1)	1,717			1,372			6,098			5,407
Corporate	(36		)	(1,220		)	(1,763		)	(2,062		)
Total	10,218			10,488			25,721			27,992
Depreciation and amortization
Payment Protection	927			327			3,204			1,382
BPO	307			457			824			711
Brokerage	650			435			1,683			1,243
Total	1,884			1,219			5,711			3,336
Interest
Payment Protection	1,053			1,873			3,622			5,238
BPO	96			126			258			324
Brokerage	757			247			1,982			560
Total	1,906			2,246			5,862			6,122
Income before income taxes and non-controlling interest
Payment Protection	5,441			6,009			11,636			12,419
BPO	713			1,544			1,842			4,573
Brokerage (1)	310			690			2,433			3,604
Corporate	(36		)	(1,220		)	(1,763		)	(2,062		)
Total Income before income taxes and non-controlling interest	6,428			7,023			14,148			18,534
Income taxes	2,292			2,576			5,003			6,872
Less: net income (loss) attributable to non-controlling interest	1			—			(171		)	(31		)
Net income	$	4,135		$	4,447		$	9,316		$	11,693
(1) - Includes loss on sale of subsidiary of $477 for the three and nine months ended September 30, 2011, respectively.