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Segments
 3 Months Ended
Mar. 31, 2017
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. 

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 March 31, 2017 and at December 31, 2016 are summarized below (dollars in thousands):

 
 
Total
 
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
 
 
 
 
 
 
 
 
 
March 31, 2017
 
$
148,942

 
$
82,821

 
$
59,563

 
$
6,558

 
 


 
 
 
 
 
 
December 31, 2016
 
$
148,579

 
$
82,647

 
$
58,689

 
$
7,243


Premium revenues and operating income by business segment for the three months ended March 31, 2017 and 2016 are summarized below (dollars in thousands):

Three months ended March 31, 2017
Total
 
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
REVENUE
 
 
 
 
 
 
 
Net premiums earned
$
15,040

 
$
13,489

 
$
1,551

 
$
—

Net investment income
926

 
392

 
519

 
15

Net realized investment gains (losses)
160

 
—

 
160

 
—

Other income
152

 
150

 
2

 
—

 
16,278

 
14,031

 
2,232

 
15

BENEFITS AND EXPENSES
 

 
 

 
 

 
 

Policyholder benefits paid
11,146

 
9,918

 
1,228

 
—

Amortization of deferred policy acquisition costs
945

 
694

 
251

 
—

Commissions
2,093

 
2,024

 
69

 
—

General and administrative expenses
1,797

 
1,275

 
279

 
243

Taxes, licenses and fees
689

 
592

 
97

 
—

Interest expense
323

 
—

 
19

 
304

 
16,993

 
14,503

 
1,943

 
547

Income (Loss) Before Income Taxes
$
(715
)
 
$
(472
)
 
$
289

 
$
(532
)




Three months ended March 31, 2016
Total
 
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
REVENUE
 
 
 
 
 
 
 
Net premiums earned
$
15,165

 
$
13,601

 
$
1,564

 
$
—

Net investment income
991

 
453

 
521

 
17

Net realized investment gains
7

 
—

 
7

 
—

Other income
154

 
153

 
1

 
—

 
16,317

 
14,207

 
2,093

 
17

BENEFITS AND EXPENSES
 

 
 

 
 

 
 

Policyholder benefits paid
9,047

 
7,862

 
1,185

 
—

Amortization of deferred policy acquisition costs
787

 
696

 
91

 
—

Commissions
2,108

 
2,016

 
92

 
—

General and administrative expenses
2,129

 
1,421

 
505

 
203

Taxes, licenses and fees
600

 
535

 
65

 
—

Interest expense
345

 
—

 
18

 
327

 
15,016

 
12,530

 
1,956

 
530

Income (Loss) Before Income Taxes
$
1,301

 
$
1,677

 
$
137

 
$
(513
)


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, 2017 and 2016, respectively:
 
Three months ended
March 31,
 
2017
 
2016
Life, accident and health operations premiums written:
 

 
 

Traditional life insurance
$
1,145

 
$
1,119

Accident and health insurance
423

 
418

Gross life, accident and health
1,568

 
1,537

Reinsurance premium ceded
(29
)
 
(25
)
Net life, accident and health premiums written
$
1,539

 
$
1,512

Property and Casualty operations premiums written:
 

 
 

Dwelling fire & extended coverage
$
9,431

 
$
9,192

Homeowners (Including mobile homeowners)
5,627

 
5,712

Other liability
543

 
523

Gross property and casualty
15,601

 
15,427

Reinsurance premium ceded
(1,102
)
 
(1,002
)
Net property and casualty written
$
14,499

 
$
14,425

Consolidated gross premiums written
$
17,169

 
$
16,964

Reinsurance premium ceded
(1,131
)
 
(1,027
)
Consolidated net premiums written
$
16,038

 
$
15,937



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, 2017 and 2016, respectively:


Three months ended
March 31,
 
2017
 
2016
Life, accident and health operations premiums earned:
 

 
Traditional life insurance
$
1,158

 
$
1,173

Accident and health insurance
422

 
416

Gross life, accident and health
1,580

 
1,589

Reinsurance premium ceded
(29
)
 
(25
)
Net life, accident and health premiums earned
$
1,551

 
$
1,564

Property and Casualty operations premiums earned:





Dwelling fire & extended coverage
$
8,816

 
$
8,662

Homeowners (Including mobile homeowners)
5,720

 
5,906

Other liability
513

 
493

Gross property and casualty
15,049

 
15,061

Reinsurance premium ceded
(1,560
)
 
(1,460
)
Net property and casualty earned
$
13,489

 
$
13,601

Consolidated gross premiums earned
$
16,629

 
$
16,650

Reinsurance premium ceded
(1,589
)
 
(1,485
)
Consolidated net premiums earned
$
15,040

 
$
15,165