SEGMENTS

The Company and its subsidiaries operate primarily in the insurance industry. The Company’s property and casualty insurance operations comprise one business segment. The property and casualty insurance segment consists of seven lines of business: dwelling fire and extended coverage, homeowners (including mobile homeowners), ocean marine, other liability, private passenger auto liability, commercial auto liability and auto physical damage. Management organizes the business utilizing a niche strategy focusing on lower valued dwellings as well as non-standard automobile products. Our chief decision makers (President, Chief Financial Officer and Chief Executive Officer) review results and operating plans making decisions on resource allocations on a company-wide basis. The Company’s products are primarily produced through agents within the states in which we operate. The Company’s life and accident and health operations comprise the second business segment. The life and accident and health insurance segment consists of two lines of business: traditional life insurance and accident and health insurance.

Selected balance sheet information by industry segment for the years ended December 31, 2011 and 2010 is summarized below (dollars in thousands):



December 31, 2011	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
Selected Assets
Investments	$	101,972	$	56,154	$	44,860	$	958
Reinsurance recoverable	$	2,778	$	2,778	$	—	$	—
Deferred policy acquisition costs	$	9,558	$	3,327	$	6,231	$	—
Total Assets	$	132,454	$	74,786	$	54,871	$	2,797
Total Liabilities	$	94,439	$	42,165	$	37,406	$	14,868



December 31, 2010	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
Selected Assets
Investments	$	109,682	$	64,923	$	43,232	$	1,527
Reinsurance recoverable	$	1,699	$	1,699	$	—	$	—
Deferred policy acquisition costs	$	10,189	$	3,806	$	6,383	$	—
Total Assets	$	136,867	$	81,414	$	52,167	$	3,286
Total Liabilities	$	93,157	$	43,193	$	35,822	$	14,142

Premium revenues and operating income by industry segment for the years ended December 31, 2011 and 2010 are summarized below (dollars in thousands):



Year ended December 31, 2011	Total			P&C Insurance Operations			Life Insurance Operations			Non-Insurance Operations
REVENUE
Net premiums earned	$	56,243		$	49,373		$	6,870		$	—
Net investment income	4,261			2,246			1,939			76
Net realized investment gains	669			666			43			(40		)
Other income	919			916			3			—
	62,092			53,201			8,855			36
BENEFITS AND EXPENSES
Policyholder benefits paid	44,025			38,836			5,189			—
Amortization of deferred policy acquisition costs	4,020			3,246			774			—
Commissions	8,148			7,615			533			—
General and administrative expenses	10,460			6,322			2,081			2,057
Taxes, licenses and fees	1,885			1,569			316			—
Interest expense	1,153			2			60			1,091
	69,691			57,590			8,953			3,148
Loss Before Income Taxes	$	(7,599	)	$	(4,389	)	$	(98	)	$	(3,112	)



Year ended December 31, 2010	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	61,263	$	54,236	$	7,027	$	—
Net investment income	5,089		2,900		2,116		73
Net realized investment gains	1,879		1,352		420		107
Other income	1,161		1,158		3		—
	69,392		59,646		9,566		180
BENEFITS AND EXPENSES
Policyholder benefits paid	39,031		33,745		5,286		—
Amortization of deferred policy acquisition costs	3,944		3,354		590		—
Commissions	7,871		7,319		552		—
General and administrative expenses	10,672		6,203		2,166		2,303
Taxes, licenses and fees	2,081		1,694		387		—
Interest expense	1,156		—		65		1,091
	64,755		52,315		9,046		3,394
Income (Loss) Before Income Taxes	$	4,637	$	7,331	$	520	$	(3,214	)

The following table presents the Company’s gross and net premiums written for the property and casualty segment and the life and accident and health segment for the years ended December 31, 2011 and 2010, respectively:



	Year Ended December 31,
	2011			2010
Premiums written:
Life, accident and health operations:
Traditional life insurance	$	5,034		$	5,209
Accident and health insurance	1,915			1,979
Total life, accident and health	6,949			7,188
Property and Casualty operations:
Dwelling fire & extended coverage	26,209			26,585
Homeowners (Including mobile homeowners)	24,268			25,534
Ocean marine	1,218			1,266
Other liability	1,312			1,292
Private passenger auto liability	1,713			3,438
Commercial auto liability	363			501
Auto physical damage	692			1,356
Total property and casualty	55,775			59,972
Gross premiums written	$	62,724		$	67,160
Reinsurance premium ceded	(7,654		)	(6,218		)
Net premiums written	$	55,070		$	60,942

The following table presents the Company’s gross and net premiums earned for the property and casualty segment and the life and accident and health segment for the years ended December 31, 2011 and 2010, respectively:



	Year Ended December 31,
	2011			2010
Premiums earned:
Life, accident and health operations:
Traditional life insurance	$	5,008		$	5,116
Accident and health insurance	1,918			1,970
Total life, accident and health	6,926			7,086
Property and Casualty operations:
Dwelling fire & extended coverage	26,250			25,944
Homeowners (Including mobile homeowners)	24,910			26,854
Ocean marine	1,205			1,270
Other liability	1,257			1,289
Private passenger auto liability	2,154			3,210
Commercial auto liability	363			501
Auto physical damage	839			1,322
Total property and casualty	56,978			60,390
Gross premiums earned	63,904			67,476
Reinsurance premium ceded	(7,661		)	(6,213		)
Net premiums earned	$	56,243		$	61,263