The following is a summary of quarterly results of operations for 2015 and 2014 (in thousands, except per share and ratio data):



	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
2015:
Gross premiums written	$	21,204		23,059			24,242			25,245
Net premiums written	$	13,666		$	15,942		$	28,599		$	21,467
Net premiums earned	$	14,493		$	15,115		$	17,883		$	19,274
Net investment income	486			469			505			442
Net realized gains	145			87			6			47
Other gains	—			—			104			—
Other income	489			480			523			175
Net losses and loss adjustment expenses	8,570			8,976			9,813			11,523
Policy acquisition costs	2,595			2,639			4,605			6,344
Operating expenses	3,692			3,619			3,325			4,170
Interest expense	244			239			181			105
Income tax (benefit) expense	—			48			(48		)	48
Equity losses in affiliates, net of tax	—			—			—			(52		)
Net income (loss)	$	512		$	630		$	1,145		$	(2,304	)
Net income (loss) allocable to common shareholders	$	250		$	366		$	1,212		$	(2,304	)
Diluted earnings (loss) per common share (1)	$	0.06		$	0.09		$	0.21		$	(0.30	)
Combined ratio (2)	99.2		%	97.7		%	96.4		%	113.3		%

2014:
Gross premiums written	$	17,667		19,001			18,912			28,267
Net premiums written	$	16,709		$	16,692		$	16,217		$	16,681
Net premiums earned	$	12,675		$	13,957		$	14,571		$	16,325
Net investment income	220			282			321			352
Net realized gains	91			81			94			151
Other income	532			505			387			385
Net losses and loss adjustment expenses	10,576			9,686			10,215			10,253
Policy acquisition costs	3,231			3,519			3,738			4,208
Operating expenses	2,894			3,213			3,433			2,599
Interest expense	129			123			108			224
Income tax (benefit) expense	(118		)	(191		)	131			(103		)
Net income (loss)	$	(3,194	)	$	(1,525	)	$	(2,252	)	$	32
Net income (loss) allocable to common shareholders	$	(3,240	)	$	(1,552	)	$	(2,250	)	$	(158	)
Diluted earnings (loss) per common share (1)	$	(1.51	)	$	(0.66	)	$	(0.89	)	$	(0.04	)
Combined ratio (2)	126.5		%	113.5		%	116.2		%	102.1		%

(1) Due to the changes in the equity structure of the Company (Note ~ 10 Shareholders' Equity) the weighted average common shares outstanding has fluctuated over the past two years and therefore the quarterly diluted earnings (loss) per common share does not total the full-year earning (loss) per common share stated on the face of the Consolidated Statements of Operations.

(2) The combined ratio is the sum of the loss ratio and the expense ratio. The loss ratio is the ratio, expressed as a percentage, of net losses and LAE to net earned premiums and other income. The expense ratio is the ratio, expressed as a percentage, of policy acquisition costs and operating expenses to net earned premiums and other income.