Quarterly Financial Information (Unaudited)

The following table presents summarized quarterly financial data for 2018 and 2017:



	Quarter Ended
	March 31			June 30		September 30			December 31
	(Amounts in thousands, except per share data)
2018
Net premiums earned	$	808,084		$	833,959	$	858,135		$	868,233
Change in fair value of financial instruments pursuant to the fair value option	(58,532		)	8,793		(12,907		)	(70,020		)
(Loss) income before income taxes	(59,699		)	73,246		70,286			(114,448		)
Net (loss) income	(42,607		)	60,180		58,578			(81,879		)
Basic (loss) earnings per share	(0.77		)	1.09		1.06			(1.48		)
Diluted (loss) earnings per share	(0.77		)	1.09		1.06			(1.48		)
Dividends paid per share	0.6250			0.6250		0.6250			0.6275

2017
Net premiums earned	$	789,770		$	797,666	$	801,205		$	806,796
Change in fair value of financial instruments pursuant to the fair value option	21,857			20,275		17,608			28,065
Income before income taxes	30,599			68,752		58,247			9,487
Net income	26,980			51,633		46,485			19,779
Basic earnings per share	0.49			0.93		0.84			0.36
Diluted earnings per share	0.49			0.93		0.84			0.36
Dividends paid per share	0.6225			0.6225		0.6225			0.6250

Net income for 2018 was primarily attributable to net premiums earned, net investment income and income tax benefit on pre-tax loss, partially offset by net realized investment losses, operating expenses and losses and loss adjustment expenses, including catastrophe losses and unfavorable development on prior accident years' loss and loss adjustment expense reserves. The primary causes of the net loss for the fourth quarter of 2018 were the decreases in the fair values of the Company’s fixed maturity and equity securities due to the rising market interest rates and the overall decline in the equity markets.

Net income for 2017 was primarily attributable to net premiums earned, net investment income and net realized investment gains, partially offset by operating expenses and losses and loss adjustment expenses, including catastrophe losses and unfavorable development on prior accident years' loss and loss adjustment expense reserves. The primary causes of the net income for the fourth quarter of 2017 were the increases in the fair values of the Company’s fixed maturity and equity securities due to the overall market improvement, net investment income, and a net tax benefit of $7.4 million due to the effect of the Act.