XML 21 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
Reportable Segments
 9 Months Ended
Sep. 30, 2016
Reportable Segments [Abstract]  
Reportable Segments
(4) Reportable Segments:
The Company has two reportable business segments in its operations:  Property and Casualty Insurance and Reinsurance.

The Property and Casualty Insurance segment provides multiple line insurance coverage primarily to fleet transportation companies as well as to independent contractors who contract with fleet transportation companies.  In addition, the Company provides private passenger automobile products to individuals, workers' compensation coverage to small businesses and professional liability products on a selective basis.  In late 2015, the Company discontinued marketing private passenger automobile liability and physical damage coverages and all business for this product line will expire by the end of 2016.

The Reinsurance segment currently accepts professional liability cessions from other insurance companies from current in-force business.  From 1992 until July 1, 2014, the Reinsurance segment accepted property cessions from other insurance companies and retrocessions from reinsurance companies, principally reinsuring against catastrophes.  Final exposure to property catastrophe losses expired on June 30, 2015.

The following table provides certain revenue and profit and loss information for each reportable segment.  All amounts presented are computed based upon U.S. generally accepted accounting principles.  Segment profit for Property and Casualty Insurance includes the direct marketing agency operations conducted by the parent company for this segment and is computed after elimination of inter-company commissions.


  
2016
  
2015
 
  
Gross Premiums Written
  
Net Premiums Earned
  
Segment Underwriting Gain (Loss)
  
Gross Premiums Written
  
Net Premiums Earned
  
Segment Underwriting Gain
 
                   
Three months ended September 30:
                  
                   
Property and Casualty Insurance
 
$
100,467
  
$
68,828
  
$
2,009
  
$
92,584
  
$
60,837
  
$
10,446
 
Reinsurance
  
1,454
   
2,407
   
(6,854
)
  
3,368
   
4,608
   
86
 
                         
Totals
 
$
101,921
  
$
71,235
  
$
(4,845
)
 
$
95,952
  
$
65,445
  
$
10,532
 
                         
                         
Nine months ended September 30:
                        
                         
Property and Casualty Insurance
 
$
291,929
  
$
197,970
  
$
15,281
  
$
272,260
  
$
180,152
  
$
18,678
 
Reinsurance
  
6,191
   
8,900
   
(7,680
)
  
13,467
   
17,188
   
1,099
 
                         
Totals
 
$
298,120
  
$
206,870
  
$
7,601
  
$
285,727
  
$
197,340
  
$
19,777
 


 


Notes to Unaudited Condensed Consolidated Financial Statements (continued)

The following table reconciles reportable segment underwriting gain (loss) to income before federal income taxes included in the Company's consolidated statements of income for the three and nine months ended September 30, 2016.


  
Three Months Ended
  
Nine Months Ended
 
  
September 30
  
September 30
 
  
2016
  
2015
  
2016
  
2015
 
Profit:
            
Segment underwriting gain (loss)
 
$
(4,845
)
 
$
10,532
  
$
7,601
  
$
19,777
 
Net investment income
  
3,513
   
3,014
   
10,501
   
8,727
 
Net realized gains (losses) on investments
  
7,732
   
(2,086
)
  
17,024
   
491
 
Corporate expenses and other
  
(765
)
  
150
   
862
   
336
 
Income before federal income taxes
 
$
5,635
  
$
11,610
  
$
35,988
  
$
29,331
 


Management does not identify or allocate assets to reportable segments when evaluating segment performance and depreciation expense is not material for any of the reportable segments.