Statutory Accounting Practices

12 Months Ended

Dec. 31, 2011

STATUTORY ACCOUNTING PRACTICES [Abstract]

Statutory Accounting Practices Disclosure [Table Text Block]

STATUTORY ACCOUNTING PRACTICES

The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) which vary in certain respects from reporting practices prescribed or permitted by insurance regulatory authorities. The significant differences for statutory reporting include: (a) acquisition costs of acquiring new business are charged to operations as incurred, (b) life policy liabilities are established utilizing interest and mortality factors specified by regulatory authorities, (c) the Asset Valuation Reserve (AVR) and the Interest Maintenance Reserve (IMR) are recorded as liabilities, and (d) non-admitted assets (furniture and equipment, agents' debit balances and prepaid expenses) are charged directly to surplus.

Statutory net gains (losses) from operations and capital and surplus, excluding intercompany transactions, are summarized as follows:

	2011			2010
NSIC - including realized capital gains of $441 and $333, respectively	$	747		$	819
NSFC - including realized capital gains of $474 and $1,294, respectively	$	(2,036	)	$	5,394
Omega - including realized capital gains of $192 and $58, respectively	$	(1,408	)	$	(582	)
Statutory risk-based adjusted capital:
NSIC - including AVR of $1,075 and $954, respectively	$	11,467		$	10,973
NSFC - including investment in Omega of $3,937 and 5,465, respectively	$	25,459		$	30,521
Omega	$	7,437		$	8,965

The above amounts exclude allocation of overhead from the Company. NSIC, NSFC and Omega are in compliance with statutory restrictions with regard to minimum amounts of surplus and capital.