Effective November 5, 2013, we assumed approximately 34,000 policies upon completion of our tenth assumption transaction with Citizens representing approximately $78,000 in additional annualized premiums.
Other Operating Expenses for the years ended December 31, 2013 and 2012 were $34,286 and $21,084, respectively. The $13,202 increase is primarily attributable to a $9,296 increase in compensation and related expenses of which $7,183 relates to an increase in stock-based compensation and cash bonus expense. The remaining increase of $3,906 relates to charitable contributions of $1,066 and other administrative costs, which include a variety of professional service fees, corporate insurances, information system expense, and other general expenses of $2,840. As of December 31, 2013, we had 177 employees located at our offices in Florida compared with 145 employees as of December 31, 2012. We also had 67 employees located in Noida, India at December 31, 2013 versus 62 at December 31, 2012.
Gross Premiums Earned for the year ended December 31, 2012 were $233,607 and reflect the revenue from policies acquired from HomeWise in November 2011 and policies originally assumed from Citizens and subsequent renewals, including approximately 60,000 policies assumed in November 2012. Gross premiums earned for the year ended December 31, 2011 were $143,606 and principally reflect the revenue from policies assumed from Citizens and subsequent renewals.
The Company reviews all securities for other-than-temporary impairment (“OTTI”) on a quarterly basis and more frequently when economic or market conditions warrant such review. When the fair value of any investment is lower than its cost, an assessment is made to determine whether the decline is temporary or other-than-temporary. If the decline is determined to be other-than-temporary, the investment is written down to fair value and an impairment charge is recognized in income in the period in which the Company makes such determination. For a debt security that the Company does not
The Company recognized compensation expense, which is included in other operating expenses, of $5,346 and $776, respectively, for the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, there was approximately $13,757 and $2,805, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 27 months. The following table summarizes information about deferred tax benefits recognized related to restricted stock awards and the fair value of vested restricted stock for the years ended December 31, 2013 and 2012.
The Company also maintains benefit plans for its employees in India including a statutory post-employment benefit plan, or gratuity plan, providing defined, lump-sum benefits. The Company’s liability for the gratuity plan reflects the undiscounted benefit obligation payable as of the balance sheet date, which was based upon the employees’ salary and years of service. As of December 31, 2013, the amount accrued under the gratuity plan was $6. In addition, the Company provides matching contributions with respect to two defined contribution plans; the Provident Fund and the Employees State Insurance Fund, both of which are available to qualifying employees in India. Expense recognized by the Company for all benefit plans in India was $7 for the year ended December 31, 2013. No expense was recognized for any benefit plan in India for the years ended December 31, 2012 and 2011.