Segment Reporting

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Segment Reporting

NOTE 7 – SEGMENT REPORTING

ASC Topic 280, “Segment Reporting,” establishes standards for the way information about operating segments is reported in financial statements. The Company has identified its insurance company operation as its primary reporting segment. Revenues from this segment comprised 92% of total revenues for the three and nine months ended September 30, 2016, compared to 92% and 91% of total revenues for the three and nine months ended September 30, 2015, respectively. The Company’s remaining operations constitute a variety of specialty insurance services, each with unique characteristics and individually insignificant to total revenues.

Revenues, income (loss) before income taxes, and assets by segment are as follows:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2016			2015			2016			2015
Revenues
Insurance company operation	$	8,281,572		$	7,761,310		$	24,130,282		$	22,480,580
Other insurance operations		3,367,469			3,191,814			10,108,721			9,715,760
Intersegment eliminations (1)		(2,650,699	)		(2,501,621	)		(7,988,351	)		(7,598,947	)
Total other insurance operations		716,770			690,193			2,120,370			2,116,813
Total revenues	$	8,998,342		$	8,451,503		$	26,250,652		$	24,597,393
Income (Loss) Before Income Taxes
Insurance company operation	$	(2,414,571	)	$	863,488		$	(1,856,083	)	$	861,422
Other insurance operations		(552,151	)		(1,831,128	)		(1,172,071	)		(2,237,426	)
Total loss before income taxes	$	(2,966,722	)	$	(967,640	)	$	(3,028,154	)	$	(1,376,004	)

	September 30			December 31
	2016			2015
Assets
Insurance company operation	$	126,009,223		$	126,406,439
Intersegment eliminations (2)		(1,907,685	)		(1,409,797	)
Total insurance company operation		124,101,538			124,996,642
Other insurance operations		16,708,428			15,173,793
Total assets	$	140,809,966		$	140,170,435

(1) Intersegment revenue eliminations reflect rents paid by Unico to Crusader for space leased in the Calabasas building and commissions paid by Crusader to Unifax Insurance Systems, Inc. (“Unifax”), a wholly owned subsidiary of Unico.

(2) Intersegment asset eliminations reflect the elimination of Crusader receivables from Unifax and Unifax payables to Crusader.