Reportable Segments

12 Months Ended

Dec. 31, 2016

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 as well as to independent contractors who contract with fleet transportation companies.  In addition, the Company provides workers' compensation coverage to small businesses.  In 2016, the Company discontinued its professional liability line of products.  Prior to that, the Company marketed a variety of professional liability products on a selective basis through wholesale and retail agents on both an admitted and surplus lines basis throughout the United States, specializing in smaller insureds.  In late 2015, the Company discontinued marketing private passenger automobile liability and physical damage coverages and all business for this product line had expired by the end of 2016.

In 2016, the reinsurance segment discontinued accepting  professional liability cessions from other insurance companies from current in-force business.  From 1992 until July 1, 2014, the reinsurance segment accepted property cessions from other insurance companies and retrocessions from reinsurance companies, principally reinsuring against catastrophes.  Final exposure to property catastrophe losses expired on June 30, 2015.

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 excludes revenue and expense from the Company's agency operations.  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:

	2016			2015			2014
Gross Premiums Written:
Property and casualty insurance	$	395,625		$	366,668		$	343,200
Reinsurance		7,379			16,885			39,188
Totals	$	403,004		$	383,553		$	382,388
Net Premiums Earned:
Property and casualty insurance	$	264,753		$	242,364		$	224,683
Reinsurance		11,258			20,971			36,944
Totals	$	276,011		$	263,335		$	261,627
Segment Underwriting Gain (Loss):
Property and casualty insurance	$	12,424		$	24,279		$	16,221
Reinsurance		(8,199	)		(1,504	)		2,147
Totals	$	4,225		$	22,775		$	18,368

The following table reconciles reportable segment underwriting gain (loss) to income before federal income taxes included in the Company's consolidated statements of income for the years ended December 31, 2016, 2015 and 2014:

	2016		2015			2014
Profit:
Segment underwriting gain	$	4,225	$	22,775		$	18,368
Net investment income		14,483		12,498			9,055
Net realized gains (losses) on investments		23,228		(1,261	)		14,930
Corporate and other income (expenses)		1,118		(60	)		2,045
Income before federal income taxes	$	43,054	$	33,952		$	44,398

One customer of the property and casualty insurance segment, FedEx Ground Systems, Inc. and certain of its subsidiaries and related entities ("FedEx") represents approximately $18,347, $17,773 and $18,951 of the Company's consolidated gross premiums written in 2016, 2015 and 2014, respectively.

An additional $202,205, $209,434 and $197,767 for 2016, 2015 and 2014, respectively, is placed with the Company by a non-affiliated broker on behalf of contracted service providers of FedExbut this business is not dependent upon the direct business with FedEx.