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Segments
 3 Months Ended
Mar. 31, 2014
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Segments
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 at March 31, 2014 and at December 31, 2013 are summarized below (dollars in thousands):

 
 
Total
 
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
March 31, 2014
 
 
 
 
 
 
 
 
 
 
$
137,478

 
$
75,439

 
$
54,926

 
$
7,113

December 31, 2013
 


 
 
 
 
 
 
 
 
$
133,980

 
$
71,003

 
$
53,831

 
$
9,146


Premium revenues and operating income by business segment for the three months ended March 31, 2014 and 2013 are summarized below (dollars in thousands):
Three months ended March 31, 2014
Total
 
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
REVENUE
 
 
 
 
 
 
 
Net premiums earned
$
13,824

 
$
12,173

 
$
1,651

 
$
—

Net investment income
948

 
455

 
474

 
19

Net realized investment gains
88

 
48

 
40

 
—

Other income
154

 
153

 
1

 
—

 
15,014

 
12,829

 
2,166

 
19

BENEFITS, LOSSES AND EXPENSES
 

 
 

 
 

 
 

Policyholder benefits paid
7,864

 
6,664

 
1,200

 
—

Amortization of deferred policy acquisition costs
898

 
641

 
257

 
—

Commissions
2,027

 
1,945

 
82

 
—

General and administrative expenses
2,026

 
1,457

 
460

 
109

Taxes, licenses and fees
530

 
464

 
66

 
—

Interest expense
386

 
—

 
17

 
369

 
13,731

 
11,171

 
2,082

 
478

Income (Loss) Before Income Taxes
$
1,283

 
$
1,658

 
$
84

 
$
(459
)


Three months ended March 31, 2013
Total
 
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
REVENUE
 
 
 
 
 
 
 
Net premiums earned
$
12,934

 
$
11,188

 
$
1,746

 
$
—

Net investment income
1,045

 
477

 
549

 
19

Net realized investment gains
27

 
2

 
25

 
—

Other income
172

 
170

 
2

 
—

 
14,178

 
11,837

 
2,322

 
19

BENEFITS, LOSSES AND EXPENSES
 

 
 

 
 

 
 

Policyholder benefits paid
9,551

 
8,553

 
998

 
—

Amortization of deferred policy acquisition costs
942

 
661

 
281

 
—

Commissions
1,982

 
1,886

 
96

 
—

General and administrative expenses
1,803

 
1,245

 
402

 
156

Taxes, licenses and fees
486

 
412

 
74

 
—

Interest expense
442

 
—

 
21

 
421

 
15,206

 
12,757

 
1,872

 
577

Income (Loss) Before Income Taxes
$
(1,028
)
 
$
(920
)
 
$
450

 
$
(558
)


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 three months ended March 31, 2014 and 2013, respectively:
 
 
 
Three months ended
March 31,
 
 
2014
 
2013
Life, accident and health operations premiums written:
 
 

 
 

Traditional life insurance
 
$
1,179

 
$
1,218

Accident and health insurance
 
444

 
444

Gross life, accident and health
 
1,623

 
1,662

Reinsurance premium ceded
 
(23
)
 
(19
)
Net life, accident and health premiums written
 
$
1,600

 
$
1,643

 
 
 
 
 
Property and Casualty operations premiums written:
 
 

 
 

Dwelling fire & extended coverage
 
$
8,329

 
$
7,559

Homeowners (Including mobile homeowners)
 
5,749

 
5,421

Ocean marine
 
—

 
92

Other liability
 
469

 
408

Private passenger auto liability
 
—

 
—

Commercial auto liability
 
—

 
—

Auto physical damage
 
—

 
—

Gross property and casualty
 
14,547

 
13,480

Reinsurance premium ceded
 
(1,755
)
 
(2,132
)
Net property and casualty written
 
$
12,792

 
$
11,348

 
 
 
 
 
Gross premiums written
 
$
16,170

 
$
15,142

Reinsurance premium ceded
 
(1,778
)
 
(2,151
)
Net premiums written
 
$
14,392

 
$
12,991



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 three months ended March 31, 2014 and 2013, respectively:
 


Three months ended
March 31,
 

2014

2013
Life, accident and health operations premiums earned:

 

 
Traditional life insurance

$
1,243


$
1,316

Accident and health insurance

431


449

Gross life, accident and health

1,674


1,765

Reinsurance premium ceded

(23
)

(19
)
Net life, accident and health premiums earned

$
1,651


$
1,746








Property and Casualty operations premiums earned:






Dwelling fire & extended coverage

$
7,670


$
7,018

Homeowners (Including mobile homeowners)

5,831


5,681

Ocean marine

—


256

Other liability

427


373

Private passenger auto liability

—


—

Commercial auto liability

—


—

Auto physical damage

—


—

Gross property and casualty

13,928


13,328

Reinsurance premium ceded

(1,755
)

(2,140
)
Net property and casualty earned

$
12,173


$
11,188






Gross premiums earned

$
15,602


$
15,093

Reinsurance premium ceded

(1,778
)

(2,159
)
Net premiums earned

$
13,824


$
12,934