Schedule II. Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]

Schedule II. Condensed Financial Information of Registrant

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
BALANCE SHEETS
(Dollars in thousands)
	December 31,
	2012		2011
Assets
Fixed maturities available-for-sale, at estimated fair value	$	1,557	$	877
Investment real estate, at book value	1,457		—
Cash	58		1,074
Investment in subsidiaries (equity method) eliminated upon consolidation	49,407		50,162
Deferred income tax asset	6,706		1,901
Other assets	723		770
Total Assets	$	59,908	$	54,784
Liabilities and Shareholders' Equity
Liabilities
Accrued general expenses	$	1,529	$	2,716
Interest rate swaps	1,521		1,196
Notes payable	26,631		12,857
Total Liabilities	29,681		16,769
Total Shareholders' Equity	30,227		38,015
Total Liabilities and Shareholders' Equity	$	59,908	$	54,784

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
STATEMENTS OF INCOME (LOSS)
(Dollars in thousands)
	Years Ended December 31,
	2012			2011
Income
Dividends (eliminated upon consolidation)	$	1,800		$	2,100
Property transfer from subsidiary	1,473			—
Net realized investment gains (losses)	72			(39		)
Holding company management service fees	906			994
Other income	91			76
	4,342			3,131
Expenses
State taxes	42			43
Litigation settlement and defense costs	13,328			1,626
Interest	1,229			1,091
Other expenses	477			388
	15,076			3,148
Loss before income taxes and equity in undistributed earnings of subsidiaries	(10,734		)	(17		)
Income tax benefit	(4,697		)	(784		)
Income (loss) before equity in undistributed earnings of subsidiaries	(6,037		)	767
Equity in undistributed earnings of subsidiaries	(634		)	(5,723		)
Net loss	$	(6,671	)	$	(4,956	)

THE NATIONAL SECURITY GROUP, INC. (PARENT COMPANY)
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
	Years Ended
	December 31,
	2012			2011
Cash Flows from Operating Activities:
Net (loss) income	$	(6,671	)	$	(4,956	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Equity in undistributed earnings of subsidiaries	634			5,723
Net realized investment (gains) losses	(72		)	39
Deferred income tax expense	(4,697		)	(719		)
Property transfer from subsidiary	(1,473		)	—
Other, net	(1,142		)	1,439
Net cash (used in) provided by operating activities	(13,421		)	1,526
Cash Flows from Investing Activities:
Net purchases of investments	(567		)	—
Net cash used in investing activities	(567		)	—
Cash Flows from Financing Activities:
Proceeds (repayments) from debt	13,774			(15		)
Cash dividends	(802		)	(1,357		)
Net cash provided by (used in) financing activities	12,972			(1,372		)
Net increase (decrease) in cash and cash equivalents	(1,016		)	154
Cash, at beginning of year	1,074			920
Cash, at end of year	$	58		$	1,074

Notes to Condensed Financial Information of Registrant

Note 1 - Basis of Presentation

Pursuant to the rules and regulations of the Securities and Exchange Commission, the Condensed Financial Information of the Registrant does not include all of the information and notes normally included with financial statements prepared in accordance with generally accepted accounting principles.  It is, therefore, suggested that this Condensed Financial Information be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Registrant’s Annual Report as referenced in Form 10-K, Part II, Item 8, page 40.

Note 2 - Cash Dividends and Asset Transfers from Insurance Subsidiaries

In 2012, cash dividends of $1.8 million were paid to the Registrant by its subsidiaries ($2.1 million in 2011). Also in 2012, timber property with a carrying value of $1.5 million was transferred to the Registrant from an insurance subsidiary.