The following is a summary of quarterly results of operations for 2016 and 2015 (in thousands, except per share and ratio data). The fluctuations between periods and changes in reserves, as disclosed in Note 5, are due to the normal fluctuations in operations from quarter to quarter.



	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
2016:
Gross premiums written	$	25,393		29,725			28,497			31,308
Net premiums written	$	22,050		$	26,176		$	24,634		$	27,069
Net premiums earned	$	20,109		$	21,675		$	23,380		$	24,463
Net investment income	537			528			560			548
Net realized gains	(8		)	541			71			761
Other gains (losses)	—			—			—			(400		)
Other income	245			283			303			287
Losses and loss adjustment expenses, net	12,699			13,541			14,582			18,181
Policy acquisition costs	6,003			6,014			6,266			6,997
Operating expenses	4,139			4,536			4,710			4,211
Interest expense	157			143			168			179
Income tax (benefit) expense	—			(623		)	16			530
Equity earnings (losses) in affiliates, net of tax	87			71			(47		)	18
Net income (loss)	$	(2,028	)	$	(513	)	$	(1,475	)	$	(4,421	)
Net income (loss) allocable to common shareholders	$	(2,028	)	$	(513	)	$	(1,475	)	$	(4,421	)
Diluted earnings (loss) per common share (1)	$	(0.27	)	$	(0.07	)	$	(0.19	)	$	(0.58	)
Combined ratio (2)	112.2		%	109.7		%	107.9		%	118.7		%

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 (losses)	—			—			104			—
Other income	489			480			523			175
Losses and loss adjustment expenses, net	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		%

(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 earnings (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 premiums earned 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.