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.

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 independent 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 June 30, 2016 and at December 31, 2015 are summarized below (dollars in thousands):



	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations

June 30, 2016	$	152,021	$	86,167	$	59,199	$	6,655

December 31, 2015	$	147,841	$	84,435	$	57,067	$	6,339

Premium revenues and operating income by business segment for the three and six months ended June 30, 2016 and 2015 are summarized below (dollars in thousands):



Three months ended June 30, 2016	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	15,227	$	13,646	$	1,581	$	—
Net investment income	1,029		455		559		15
Net realized investment gains (losses)	242		185		57		—
Other income	150		150		—		—
	16,648		14,436		2,197		15
BENEFITS AND EXPENSES
Policyholder benefits paid	8,862		7,577		1,285		—
Amortization of deferred policy acquisition costs	906		695		211		—
Commissions	2,117		2,020		97		—
General and administrative expenses	2,158		1,704		310		144
Taxes, licenses and fees	574		529		45		—
Interest expense	333		—		20		313
	14,950		12,525		1,968		457
Income (Loss) Before Income Taxes	$	1,698	$	1,911	$	229	$	(442	)



Three months ended June 30, 2015	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	14,880	$	13,276	$	1,604	$	—
Net investment income	813		336		458		19
Net realized investment gains	245		99		146		—
Other income	156		156		—		—
	16,094		13,867		2,208		19
BENEFITS AND EXPENSES
Policyholder benefits paid	9,435		8,534		901		—
Amortization of deferred policy acquisition costs	918		675		243		—
Commissions	2,089		1,997		92		—
General and administrative expenses	2,119		1,619		353		147
Taxes, licenses and fees	518		472		46		—
Interest expense	348		—		13		335
	15,427		13,297		1,648		482
Income (Loss) Before Income Taxes	$	667	$	570	$	560	$	(463	)



Six months ended June 30, 2016	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	30,392	$	27,247	$	3,145	$	—
Net investment income	2,020		908		1,080		32
Net realized investment gains (losses)	249		185		64		—
Other income	304		303		1		—
	32,965		28,643		4,290		32
BENEFITS AND EXPENSES
Policyholder benefits paid	17,909		15,439		2,470		—
Amortization of deferred policy acquisition costs	1,693		1,391		302		—
Commissions	4,225		4,036		189		—
General and administrative expenses	4,287		3,125		815		347
Taxes, licenses and fees	1,174		1,064		110		—
Interest expense	678		—		38		640
	29,966		25,055		3,924		987
Income (Loss) Before Income Taxes	$	2,999	$	3,588	$	366	$	(955	)



Six months ended June 30, 2015	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	29,586	$	26,398	$	3,188	$	—
Net investment income	1,815		826		951		38
Net realized investment gains	387		130		257		—
Other income	314		313		1		—
	32,102		27,667		4,397		38
BENEFITS AND EXPENSES
Policyholder benefits paid	17,697		15,311		2,386		—
Amortization of deferred policy acquisition costs	1,817		1,350		467		—
Commissions	4,144		3,965		179		—
General and administrative expenses	4,150		3,159		690		301
Taxes, licenses and fees	1,173		1,016		157		—
Interest expense	668		—		23		645
	29,649		24,801		3,902		946
Income (Loss) Before Income Taxes	$	2,453	$	2,866	$	495	$	(908	)

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 and six months ended June 30, 2016 and 2015, respectively:



	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Life, accident and health operations premiums written:
Traditional life insurance	$	1,124		$	1,104		$	2,243		$	2,241
Accident and health insurance	409			422			827			841
Gross life, accident and health	1,533			1,526			3,070			3,082
Reinsurance premium ceded	(23		)	(15		)	(48		)	(30		)
Net life, accident and health premiums written	$	1,510		$	1,511		$	3,022		$	3,052
Property and Casualty operations premiums written:
Dwelling fire & extended coverage	$	9,716		$	9,454		$	18,908		$	18,182
Homeowners (Including mobile homeowners)	6,674			6,715			12,386			12,466
Other liability	570			549			1,093			1,054
Gross property and casualty	16,960			16,718			32,387			31,702
Reinsurance premium ceded	(1,697		)	(1,229		)	(2,699		)	(2,720		)
Net property and casualty written	$	15,263		$	15,489		$	29,688		$	28,982
Consolidated gross premiums written	$	18,493		$	18,244		$	35,457		$	34,784
Reinsurance premium ceded	(1,720		)	(1,244		)	(2,747		)	(2,750		)
Consolidated net premiums written	$	16,773		$	17,000		$	32,710		$	32,034

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 and six months ended June 30, 2016 and 2015, respectively:



	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Life, accident and health operations premiums earned:
Traditional life insurance	$	1,194		$	1,199		$	2,367		$	2,377
Accident and health insurance	410			420			826			841
Gross life, accident and health	1,604			1,619			3,193			3,218
Reinsurance premium ceded	(23		)	(15		)	(48		)	(30		)
Net life, accident and health premiums earned	$	1,581		$	1,604		$	3,145		$	3,188
Property and Casualty operations premiums earned:
Dwelling fire & extended coverage	$	8,807		$	8,403		$	17,469		$	16,603
Homeowners (Including mobile homeowners)	5,881			5,955			11,787			11,903
Other liability	503			480			996			945
Gross property and casualty	15,191			14,838			30,252			29,451
Reinsurance premium ceded	(1,545		)	(1,562		)	(3,005		)	(3,053		)
Net property and casualty earned	$	13,646		$	13,276		$	27,247		$	26,398
Consolidated gross premiums earned	$	16,795		$	16,457		$	33,445		$	32,669
Reinsurance premium ceded	(1,568		)	(1,577		)	(3,053		)	(3,083		)
Consolidated net premiums earned	$	15,227		$	14,880		$	30,392		$	29,586