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 and older homes that can be difficult to insure in the standard insurance market. 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 supplemental accident and health insurance.

Total assets by industry segment at June 30, 2018 and at December 31, 2017 are summarized below (dollars in thousands):



Assets by industry segment	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations

June 30, 2018	$	146,299	$	82,255	$	59,508	$	4,536

December 31, 2017	$	146,438	$	80,241	$	60,709	$	5,488

Premium revenues and operating income by business segment for the three and six months ended June 30, 2018 and 2017 are summarized below (dollars in thousands):



Three months ended June 30, 2018	Total			P&C Insurance Operations			Life Insurance Operations			Non-Insurance Operations
REVENUE
Net premiums earned	$	15,260		$	13,711		$	1,549		$	—
Net investment income	998			438			546			14
Net realized investment gains (losses)	(203		)	(61		)	(142		)	—
Other income	148			148			—			—
	16,203			14,236			1,953			14
BENEFITS AND EXPENSES
Policyholder benefits paid	9,772			8,249			1,523			—
Amortization of deferred policy acquisition costs	787			690			97			—
Commissions	1,732			1,665			67			—
General and administrative expenses	2,668			1,954			445			269
Taxes, licenses and fees	349			313			36			—
Interest expense	309			—			13			296
	15,617			12,871			2,181			565
Income (Loss) Before Income Taxes	$	586		$	1,365		$	(228	)	$	(551	)



Three months ended June 30, 2017	Total			P&C Insurance Operations			Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	15,331		$	13,749		$	1,582	$	—
Net investment income	930			386			527		17
Net realized investment gains	77			60			17		—
Other income	145			145			—		—
	16,483			14,340			2,126		17
BENEFITS AND EXPENSES
Policyholder benefits paid	12,581			11,274			1,307		—
Amortization of deferred policy acquisition costs	819			695			124		—
Commissions	1,758			1,689			69		—
General and administrative expenses	2,215			1,602			339		274
Taxes, licenses and fees	517			475			42		—
Interest expense	326			—			20		306
	18,216			15,735			1,901		580
Income (Loss) Before Income Taxes	$	(1,733	)	$	(1,395	)	$	225	$	(563	)



Six months ended June 30, 2018	Total			P&C Insurance Operations			Life Insurance Operations			Non-Insurance Operations
REVENUE
Net premiums earned	$	30,319		$	27,242		$	3,077		$	—
Net investment income	1,779			689			1,062			28
Net realized investment gains (losses)	(328		)	(235		)	(93		)	—
Other income	309			308			1			—
	32,079			28,004			4,047			28
BENEFITS AND EXPENSES
Policyholder benefits paid	19,199			16,227			2,972			—
Amortization of deferred policy acquisition costs	1,590			1,380			210			—
Commissions	3,792			3,677			115			—
General and administrative expenses	4,671			3,406			952			313
Taxes, licenses and fees	998			866			132			—
Interest expense	611			—			25			586
	30,861			25,556			4,406			899
Income (Loss) Before Income Taxes	$	1,218		$	2,448		$	(359	)	$	(871	)



Six months ended June 30, 2017	Total			P&C Insurance Operations			Life Insurance Operations		Non-Insurance Operations
REVENUE
Net premiums earned	$	30,371		$	27,238		$	3,133	$	—
Net investment income	1,856			778			1,046		32
Net realized investment gains	237			60			177		—
Other income	297			295			2		—
	32,761			28,371			4,358		32
BENEFITS AND EXPENSES
Policyholder benefits paid	23,727			21,192			2,535		—
Amortization of deferred policy acquisition costs	1,764			1,389			375		—
Commissions	3,851			3,713			138		—
General and administrative expenses	4,012			2,877			618		517
Taxes, licenses and fees	1,206			1,067			139		—
Interest expense	649			—			39		610
	35,209			30,238			3,844		1,127
Income (Loss) Before Income Taxes	$	(2,448	)	$	(1,867	)	$	514	$	(1,095	)

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, 2018 and 2017, respectively:



	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Life, accident and health operations premiums written:
Traditional life insurance	$	1,077		$	1,093		$	2,197		$	2,238
Accident and health insurance	396			406			811			829
Gross life, accident and health	1,473			1,499			3,008			3,067
Reinsurance premium ceded	(28		)	(13		)	(59		)	(42		)
Net life, accident and health premiums written	$	1,445		$	1,486		$	2,949		$	3,025
Property and Casualty operations premiums written:
Dwelling fire & extended coverage	$	10,113		$	10,040		$	19,666		$	19,471
Homeowners (Including mobile homeowners)	6,064			6,409			11,376			12,036
Other liability	594			590			1,159			1,133
Gross property and casualty	16,771			17,039			32,201			32,640
Reinsurance premium ceded	(1,735		)	(1,707		)	(2,889		)	(2,809		)
Net property and casualty written	$	15,036		$	15,332		$	29,312		$	29,831
Consolidated gross premiums written	$	18,244		$	18,538		$	35,209		$	35,707
Reinsurance premium ceded	(1,763		)	(1,720		)	(2,948		)	(2,851		)
Consolidated net premiums written	$	16,481		$	16,818		$	32,261		$	32,856

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, 2018 and 2017, respectively:



	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Life, accident and health operations premiums earned:
Traditional life insurance	$	1,182		$	1,188		$	2,326		$	2,346
Accident and health insurance	395			408			810			830
Gross life, accident and health	1,577			1,596			3,136			3,176
Reinsurance premium ceded	(28		)	(14		)	(59		)	(43		)
Net life, accident and health premiums earned	$	1,549		$	1,582		$	3,077		$	3,133
Property and Casualty operations premiums earned:
Dwelling fire & extended coverage	$	9,273		$	9,032		$	18,389		$	17,848
Homeowners (Including mobile homeowners)	5,474			5,744			10,971			11,464
Other liability	546			527			1,076			1,040
Gross property and casualty	15,293			15,303			30,436			30,352
Reinsurance premium ceded	(1,582		)	(1,554		)	(3,194		)	(3,114		)
Net property and casualty earned	$	13,711		$	13,749		$	27,242		$	27,238
Consolidated gross premiums earned	$	16,870		$	16,899		$	33,572		$	33,528
Reinsurance premium ceded	(1,610		)	(1,568		)	(3,253		)	(3,157		)
Consolidated net premiums earned	$	15,260		$	15,331		$	30,319		$	30,371