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



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

September 30, 2016	$	154,165	$	88,569	$	60,152	$	5,444

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

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



Three months ended September 30, 2016	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	15,675	$	14,016	$	1,659	$	—
Net investment income	1,005		449		540		16
Net realized investment gains (losses)	287		81		206		—
Other income	152		151		1		—
	17,119		14,697		2,406		16
BENEFITS AND EXPENSES
Policyholder benefits paid	10,082		8,466		1,616		—
Amortization of deferred policy acquisition costs	758		696		62		—
Commissions	2,088		1,999		89		—
General and administrative expenses	2,026		1,428		400		198
Taxes, licenses and fees	529		482		47		—
Interest expense	339		—		19		320
	15,822		13,071		2,233		518
Income (Loss) Before Income Taxes	$	1,297	$	1,626	$	173	$	(502	)



Three months ended September 30, 2015	Total		P&C Insurance Operations		Life Insurance Operations			Non-Insurance Operations
REVENUE
Net premiums earned	$	15,104	$	13,414	$	1,690		$	—
Net investment income	737		237		481			19
Net realized investment gains	130		51		79			—
Other income	154		153		1			—
	16,125		13,855		2,251			19
BENEFITS AND EXPENSES
Policyholder benefits paid	8,170		6,440		1,730			—
Amortization of deferred policy acquisition costs	905		676		229			—
Commissions	2,086		1,988		98			—
General and administrative expenses	1,726		1,445		346			(65		)
Taxes, licenses and fees	468		426		42			—
Interest expense	350		—		21			329
	13,705		10,975		2,466			264
Income (Loss) Before Income Taxes	$	2,420	$	2,880	$	(215	)	$	(245	)



Nine months ended September 30, 2016	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	46,067	$	41,263	$	4,804	$	—
Net investment income	3,025		1,357		1,620		48
Net realized investment gains (losses)	536		266		270		—
Other income	456		454		2		—
	50,084		43,340		6,696		48
BENEFITS AND EXPENSES
Policyholder benefits paid	27,991		23,905		4,086		—
Amortization of deferred policy acquisition costs	2,451		2,087		364		—
Commissions	6,313		6,035		278		—
General and administrative expenses	6,313		4,553		1,215		545
Taxes, licenses and fees	1,703		1,546		157		—
Interest expense	1,017		—		57		960
	45,788		38,126		6,157		1,505
Income (Loss) Before Income Taxes	$	4,296	$	5,214	$	539	$	(1,457	)



Nine months ended September 30, 2015	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	44,690	$	39,812	$	4,878	$	—
Net investment income	2,552		1,063		1,432		57
Net realized investment gains	517		181		336		—
Other income	468		466		2		—
	48,227		41,522		6,648		57
BENEFITS AND EXPENSES
Policyholder benefits paid	25,867		21,751		4,116		—
Amortization of deferred policy acquisition costs	2,722		2,026		696		—
Commissions	6,230		5,953		277		—
General and administrative expenses	5,876		4,604		1,036		236
Taxes, licenses and fees	1,641		1,442		199		—
Interest expense	1,018		—		44		974
	43,354		35,776		6,368		1,210
Income (Loss) Before Income Taxes	$	4,873	$	5,746	$	280	$	(1,153	)

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 nine months ended September 30, 2016 and 2015, respectively:



	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Life, accident and health operations premiums written:
Traditional life insurance	$	1,112		$	1,140		$	3,355		$	3,381
Accident and health insurance	562			600			1,389			1,441
Gross life, accident and health	1,674			1,740			4,744			4,822
Reinsurance premium ceded	(10		)	(19		)	(58		)	(49		)
Net life, accident and health premiums written	$	1,664		$	1,721		$	4,686		$	4,773
Property and Casualty operations premiums written:
Dwelling fire & extended coverage	$	8,947		$	8,793		$	27,855		$	26,975
Homeowners (Including mobile homeowners)	6,017			6,220			18,403			18,686
Other liability	528			500			1,621			1,554
Gross property and casualty	15,492			15,513			47,879			47,215
Reinsurance premium ceded	(1,516		)	(1,745		)	(4,215		)	(4,465		)
Net property and casualty written	$	13,976		$	13,768		$	43,664		$	42,750
Consolidated gross premiums written	$	17,166		$	17,253		$	52,623		$	52,037
Reinsurance premium ceded	(1,526		)	(1,764		)	(4,273		)	(4,514		)
Consolidated net premiums written	$	15,640		$	15,489		$	48,350		$	47,523

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 nine months ended September 30, 2016 and 2015, respectively:



	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Life, accident and health operations premiums earned:
Traditional life insurance	$	1,108		$	1,111		$	3,475		$	3,488
Accident and health insurance	561			598			1,387			1,439
Gross life, accident and health	1,669			1,709			4,862			4,927
Reinsurance premium ceded	(10		)	(19		)	(58		)	(49		)
Net life, accident and health premiums earned	$	1,659		$	1,690		$	4,804		$	4,878
Property and Casualty operations premiums earned:
Dwelling fire & extended coverage	$	8,941		$	8,547		$	26,410		$	25,150
Homeowners (Including mobile homeowners)	5,923			5,957			17,710			17,860
Other liability	515			488			1,511			1,433
Gross property and casualty	15,379			14,992			45,631			44,443
Reinsurance premium ceded	(1,363		)	(1,578		)	(4,368		)	(4,631		)
Net property and casualty earned	$	14,016		$	13,414		$	41,263		$	39,812
Consolidated gross premiums earned	$	17,048		$	16,701		$	50,493		$	49,370
Reinsurance premium ceded	(1,373		)	(1,597		)	(4,426		)	(4,680		)
Consolidated net premiums earned	$	15,675		$	15,104		$	46,067		$	44,690