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SEGMENTS
 3 Months Ended
Mar. 31, 2020
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 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 subsidiary 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 March 31, 2020 and December 31, 2019 are summarized below:

($ in thousands)

Assets by industry segment
 
Total
 
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
 
 
 
 
 
 
 
 
 
March 31, 2020
 
$
150,486

 
$
83,614

 
$
62,001

 
$
4,871

 
 


 
 
 
 
 
 
December 31, 2019
 
$
153,934

 
$
83,917

 
$
65,605

 
$
4,412

Net income by business segment for the three months ended March 31, 2020 and 2019 is summarized below:
($ in thousands)
 
Three months ended March 31, 2020
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
 
Inter- company Eliminations
 
Total
REVENUE
 
 
 
 
 
 
 
 
 
Net premiums earned
$
13,522

 
$
1,433

 
$
—

 
$
—

 
$
14,955

Net investment income
425

 
663

 
11

 
(135
)
 
964

Investment losses
(438
)
 
(527
)
 
(25
)
 
—

 
(990
)
Other income
145

 
258

 
231

 
(489
)
 
145

 
13,654

 
1,827

 
217

 
(624
)
 
15,074

BENEFITS AND EXPENSES
 

 
 

 
 

 
 
 
 

Policyholder benefits paid
9,591

 
1,138

 
—

 
(146
)
 
10,583

Amortization of deferred policy acquisition costs
681

 
384

 
—

 
—

 
1,065

Commissions
1,990

 
85

 
—

 
—

 
2,075

General and administrative expenses
1,821

 
400

 
(349
)
 
(478
)
 
1,394

Taxes, licenses and fees
619

 
102

 
—

 
—

 
721

Interest expense
—

 
9

 
252

 
—

 
261

 
14,702

 
2,118

 
(97
)
 
(624
)
 
16,099

Income (Loss) Before Income Taxes
(1,048
)
 
(291
)
 
314

 
—

 
(1,025
)
INCOME TAX EXPENSE (BENEFIT)
(168
)
 
(62
)
 
65

 
—

 
(165
)
Net Income (Loss)
$
(880
)
 
$
(229
)
 
$
249

 
$
—

 
$
(860
)


($ in thousands)
 
Three months ended March 31, 2019
 
P&C Insurance Operations
 
Life Insurance Operations
 
Non-Insurance Operations
 
Inter-company
Eliminations
 
Total
REVENUE
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
13,261

 
$
1,457

 
$
—

 
$
—

 
$
14,718

Net investment income
 
409

 
675

 
13

 
(135
)
 
962

Investment gains
 
2,023

 
94

 
3

 
—

 
2,120

Other income
 
136

 
246

 
235

 
(471
)
 
146

 
 
15,829

 
2,472

 
251

 
(606
)
 
17,946

BENEFITS AND EXPENSES
 
 

 
 

 
 

 
 
 
 

Policyholder benefits paid
 
7,982

 
1,165

 
—

 
(124
)
 
9,023

Amortization of deferred policy acquisition costs
 
681

 
299

 
—

 
—

 
980

Commissions
 
1,956

 
77

 
—

 
—

 
2,033

General and administrative expenses
 
1,934

 
473

 
407

 
(482
)
 
2,332

Taxes, licenses and fees
 
592

 
95

 
—

 
—

 
687

Interest expense
 
—

 
10

 
285

 
—

 
295

 
 
13,145

 
2,119

 
692

 
(606
)
 
15,350

Income (Loss) Before Income Taxes
 
2,684

 
353

 
(441
)
 
—

 
2,596

INCOME TAX EXPENSE (BENEFIT)
 
149

 
96

 
(92
)
 
—

 
153

Net Income (Loss)
 
$
2,535

 
$
257

 
$
(349
)
 
$
—

 
$
2,443




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, 2020 and 2019, respectively:
($ in thousands)
 
Three months ended
March 31,
 
 
2020

2019
Life, accident and health operations premiums written:
 

 
 

Traditional life insurance
 
$
1,058

 
$
1,057

Accident and health insurance
 
407

 
405

Gross life, accident and health
 
1,465

 
1,462

Reinsurance premium ceded
 
(35
)
 
(38
)
Net life, accident and health premiums written
 
$
1,430

 
$
1,424

Property and Casualty operations premiums written:
 

 
 

Dwelling fire & extended coverage
 
$
10,252

 
$
9,928

Homeowners (Including mobile homeowners)
 
4,835

 
4,971

Other liability
 
579

 
575

Gross property and casualty
 
15,666

 
15,474

Reinsurance premium ceded
 
(1,765
)
 
(1,298
)
Net property and casualty written
 
$
13,901

 
$
14,176

Consolidated gross premiums written
 
$
17,131

 
$
16,936

Reinsurance premium ceded
 
(1,800
)
 
(1,336
)
Consolidated net premiums written
 
$
15,331

 
$
15,600



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, 2020 and 2019, respectively:
($ in thousands)

Three months ended
March 31,
 

2020
 
2019
Life, accident and health operations premiums earned:
 

 
Traditional life insurance

$
1,066

 
$
1,090

Accident and health insurance

402

 
405

Gross life, accident and health

1,468

 
1,495

Reinsurance premium ceded

(35
)
 
(38
)
Net life, accident and health premiums earned

$
1,433

 
$
1,457

Property and Casualty operations premiums earned:





Dwelling fire & extended coverage

$
9,652

 
$
9,280

Homeowners (Including mobile homeowners)

5,081

 
5,196

Other liability

554

 
541

Gross property and casualty

15,287

 
15,017

Reinsurance premium ceded

(1,765
)
 
(1,756
)
Net property and casualty earned

$
13,522

 
$
13,261

Consolidated gross premiums earned

$
16,755

 
$
16,512

Reinsurance premium ceded

(1,800
)
 
(1,794
)
Consolidated net premiums earned

$
14,955

 
$
14,718