The following is a summary of quarterly results of operations for 2017 and 2016 (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
2017:
Gross written premiums	$	26,474		$	26,981		$	29,581		$	31,247
Net written premiums	$	22,324		$	23,082		$	18,395		$	27,439
Net earned premiums	$	24,140		$	24,497		$	17,659		$	25,433
Net investment income	577			663			768			720
Net realized gains	(8		)	—			39			39
Other gains (losses)	—			750			—			—
Other income	354			372			477			357
Losses and loss adjustment expenses, net	15,733			16,674			26,468			15,042
Policy acquisition costs	6,472			6,428			6,655			6,690
Operating expenses	4,530			4,370			4,474			3,993
Interest expense	224			219			303			616
Income tax (benefit) expense	6			(282		)	(135		)	(36		)
Equity earnings (losses) in affiliates, net of tax	104			60			(76		)	(23		)
Net income (loss)	$	(1,798	)	$	(1,067	)	$	(18,898	)	$	221
Diluted earnings (loss) per common share (1)	$	(0.24	)	$	(0.14	)	$	(2.46	)	$	0.03
Combined ratio (2)	109.1		%	110.4		%	207.3		%	99.7		%

2016:
Gross written premiums	$	25,393		$	29,725		$	28,497		$	31,308
Net written premiums	$	22,050		$	26,176		$	24,634		$	27,069
Net earned premiums	$	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 losses in affiliates, net of tax	87			71			(47		)	18
Net income (loss)	$	(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		%

(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.