SEGMENTS

The Company’s property and casualty insurance operations comprise one business segment. The property and casualty insurance segment primarily underwrites home insurance coverage with primary lines of business consisting of: dwelling fire and extended coverage, homeowners (including mobile homeowners) and other liability. The Company has ceased writing ocean marine, private passenger auto liability, commercial auto liability and auto physical damage coverages over the past two years with no policies remaining in-force at December 31, 2013 in the lines of business.

Management organizes the business utilizing a niche strategy focusing on lower valued dwellings. Our chief decision makers (Chief Executive Officer, Chief Financial Officer and President) 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.

Total assets by industry segment for the years ended December 31, 2013 and 2012 are summarized below (dollars in thousands):



	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
December 31, 2013
	$	133,980	$	71,003	$	53,831	$	9,146
December 31, 2012
	$	135,716	$	71,447	$	53,760	$	10,509

Premium revenues and operating income by business segment for the years ended December 31, 2013 and 2012 are summarized below (dollars in thousands):



Year ended December 31, 2013	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	52,366	$	45,775	$	6,591	$	—
Net investment income	3,746		1,637		2,032		77
Net realized investment gains	4,439		1,020		111		3,308
Other income	609		604		5		—
	61,160		49,036		8,739		3,385
BENEFITS AND EXPENSES
Policyholder benefits paid	31,146		26,219		4,927		—
Amortization of deferred policy acquisition costs	3,613		2,576		1,037		—
Commissions	7,103		6,678		425		—
General and administrative expenses	8,443		5,683		2,034		726
Taxes, licenses and fees	1,846		1,614		232		—
Interest expense	1,686		—		77		1,609
	53,837		42,770		8,732		2,335
Income Before Income Taxes	$	7,323	$	6,266	$	7	$	1,050



Year ended December 31, 2012	Total			P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	51,815		$	45,206	$	6,609	$	—
Net investment income	4,191			2,107		1,993		91
Net realized investment gains	2,790			1,083		1,635		72
Other income	720			718		2		—
	59,516			49,114		10,239		163
BENEFITS AND EXPENSES
Policyholder benefits paid	34,105			28,811		5,294		—
Amortization of deferred policy acquisition costs	3,711			2,773		938		—
Commissions	7,556			7,088		468		—
General and administrative expenses	8,754			6,262		1,973		519
Litigation settlement and defense costs	13,328			—		—		13,328
Taxes, licenses and fees	1,846			1,628		218		—
Interest expense	1,280			—		53		1,227
	70,580			46,562		8,944		15,074
Income (Loss) Before Income Taxes	$	(11,064	)	$	2,552	$	1,295	$	(14,911	)

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, 2013 and 2012, respectively:



	Year ended December 31,
	2013			2012
Life, accident and health operations premiums written:
Traditional life insurance	$	4,756		$	4,936
Accident and health insurance	1,921			1,870
Gross life, accident and health	6,677			6,806
Reinsurance premium ceded	(66		)	(73		)
Net life, accident and health premiums written	$	6,611		$	6,733

Property and Casualty operations premiums written:
Dwelling fire & extended coverage	$	30,527		$	28,161
Homeowners (Including mobile homeowners)	23,367			22,867
Ocean marine	75			981
Other liability	1,690			1,471
Private passenger auto liability	—			37
Commercial auto liability	—			6
Auto physical damage	—			21
Gross property and casualty	55,659			53,544
Reinsurance premium ceded	(8,462		)	(8,263		)
Net property and casualty written	$	47,197		$	45,281

Gross premiums written	$	62,336		$	60,350
Reinsurance premium ceded	(8,528		)	(8,336		)
Net premiums written	$	53,808		$	52,014

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, 2013 and 2012, respectively:



	Year ended December 31,
	2013			2012
Life, accident and health operations premiums earned:
Traditional life insurance	$	4,718		$	4,818
Accident and health insurance	1,939			1,864
Gross life, accident and health	6,657			6,682
Reinsurance premium ceded	(66		)	(73		)
Net life, accident and health premiums earned	$	6,591		$	6,609

Property and Casualty operations premiums earned:
Dwelling fire & extended coverage	$	29,302		$	27,206
Homeowners (Including mobile homeowners)	22,830			23,287
Ocean marine	524			1,090
Other liability	1,593			1,412
Private passenger auto liability	—			319
Commercial auto liability	—			6
Auto physical damage	—			149
Gross property and casualty	54,249			53,469
Reinsurance premium ceded	(8,474		)	(8,263		)
Net property and casualty earned	$	45,775		$	45,206

Gross premiums earned	$	60,906		$	60,151
Reinsurance premium ceded	(8,540		)	(8,336		)
Net premiums earned	$	52,366		$	51,815