Reportable Segments

12 Months Ended

Dec. 31, 2014

Reportable Segments [Abstract]

Reportable Segments

Note J - Reportable Segments

The Company operates within two reportable business segments:  property and casualty insurance and reinsurance.  The property and casualty insurance segment provides multiple line insurance coverage primarily to fleet transportation companies and to independent contractors who contract with fleet transportation companies, as well as individual personal automobile coverage, professional liability coverages and business owners’ and commercial property policies.  The reinsurance segment accepts cessions from other insurance companies as well as retrocessions from selected reinsurance companies, providing property catastrophe and casualty reinsurance coverages.

The Company evaluates performance and allocates resources based on past or expected results from insurance underwriting operations before income taxes.  Underwriting gain or loss does not include net investment income or gains or losses on the Company's investment portfolio.  All investment-related revenues are managed at the corporate level.  Underwriting gain or loss for the property and casualty insurance segment includes revenue and expense from the Company's agency operations since the agency operations serve as a primary direct marketing facility for this segment.  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.  The accounting policies of each reportable segment are the same as those described in the summary of significant accounting policies.

The following table provides certain profit and loss information for each reportable segment for the years ended

December 31:

		2014		2013		2012
Direct and assumed premium written:
Property and casualty insurance		$	343,200	$	314,784	$	284,200
Reinsurance			39,188		54,692		57,086
	Totals	$	382,388	$	369,476	$	341,286
Net premium earned:
Property and casualty insurance		$	224,683	$	202,785	$	186,586
Reinsurance			36,944		49,958		50,875
	Totals	$	261,627	$	252,743	$	237,461
Underwriting gain:
Property and casualty insurance		$	32,663	$	25,558	$	23,491
Reinsurance			2,147		12,278		20,567
	Totals	$	34,810	$	37,836	$	44,058

The following table reconciles reportable segment profits to the Company’s consolidated income before federal income taxes:

		2014			2013			2012
Profit:
Underwriting gain		$	34,810		$	37,836		$	44,058
Net investment income			9,055			8,770			9,930
Net realized gains on investments			14,930			23,515			9,011
Corporate expenses			(14,397	)		(15,211	)		(16,393	)
	Income before federal income taxes	$	44,398		$	54,910		$	46,606

One customer of the property and casualty insurance segment, FedEx Ground Systems, Inc. and certain of its subsidiaries and related entities (“FedEx”) represents approximately $8,191, $15,615 and $19,052 of the Company’s consolidated direct and assumed premium written in 2014, 2013 and 2012, respectively.

An additional $208,580, $177,389 and $146,447 for 2014, 2013 and 2012, respectively, is placed with the Company by a non-affiliated broker on behalf of independent contractors of this same customerbut is not dependent upon the direct business with this customer.