Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information (Unaudited)

The following table presents summarized quarterly financial data for 2016 and 2015:



	Quarter Ended
	March 31			June 30			September 30			December 31
	(Amounts in thousands, except per share data)
2016
Net premiums earned	$	767,085		$	779,321		$	790,850		$	794,517
Change in fair value of investments pursuant to the fair value option	18,531			37,127			(21,132		)	(67,332		)
Income before income taxes	26,034			64,335			31,625			(51,270		)
Net income (loss)	23,323			48,873			26,930			(26,082		)
Basic earnings per share ⁽¹⁾	0.42			0.88			0.49			(0.47		)
Diluted earnings per share⁽¹⁾	0.42			0.88			0.49			(0.47		)
Dividends paid per share	0.6200			0.6200			0.6200			0.6225

2015
Net premiums earned	$	720,737		$	731,546		$	745,520		$	760,094
Change in fair value of investments pursuant to the fair value option	(4,884		)	(40,783		)	(18,538		)	2,474
Income before income taxes	29,859			4,511			12,267			23,930
Net income	26,165			9,639			15,270			23,405
Basic earnings per share ⁽¹⁾	0.47			0.17			0.28			0.42
Diluted earnings per share⁽¹⁾	0.47			0.17			0.28			0.42
Dividends paid per share	0.6175			0.6175			0.6175			0.6200

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⁽¹⁾	The basic and diluted earnings per share do not sum due to rounding.

Net income during 2016 was primarily affected by an increase in losses and loss adjustment expenses partially offset by an increase in net premiums earned, unfavorable development on prior accident years' loss and loss adjustment expense reserves, severe storms outside of California and rainstorms in California, and net realized investment losses. The primary cause of the net loss for the fourth quarter of 2016 was the declines in the fair value of the Company’s fixed maturity securities due to the rising market interest rates.

Net income for 2015 was primarily affected by net realized investment losses, and an increase in losses and loss adjustment expenses partially offset by an increase in net premiums earned. Net income for the fourth quarter of 2015 was affected by net realized investment losses of $8.2 million.