Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Management has evaluated subsequent events and their potential effects on these condensed consolidated financial statements through the filing date of this Form 10-Q. There were no events that impacted the accompanying condensed consolidated financial statements. However, from October 7, 2016 to October 9, 2016, Hurricane Matthew moved up the Atlantic Coast impacting policyholders in Georgia and South Carolina. Insured property in the path of Matthew was exposed to category 1 hurricane and tropical storm force winds. Losses from Hurricane Matthew will materially impact net income for the three months and year ended December 31, 2016. No provision for losses from Hurricane Matthew has been made in the accompanying condensed consolidated financial statements.

Net of re-insurance, Hurricane Matthew will reduce fourth quarter and full year pre-tax income by $4,000,000. Hurricane Matthew will reduce fourth quarter and full year net income by $2,640,000. Management estimates ultimate gross losses from Hurricane Matthew (before re-insurance recoveries) to be within a range of $7,000,000 to $8,000,000. Under catastrophe reinsurance coverage, the Company retains 100% of losses up to $4,000,000 from a single event with losses above the retention being 100% reinsured up to $72,500,000. For additional details of reinsurance coverage see Note 8.