SEGMENTS

3 Months Ended

Mar. 31, 2022

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

The Company’s property and casualty insurance operations comprise one business segment. The property and casualty insurance segment primarily underwrites home insurance coverage with primary lines of business consisting of dwelling fire and extended coverage, homeowners (including mobile homeowners) and other liability.

Management organizes the business utilizing a niche strategy focusing on lower valued dwellings and older homes that can be difficult to insure in the standard insurance market. Our chief decision makers (Chief Executive Officer, Chief Financial Officer and subsidiary President) review results and operating plans making decisions on resource allocations on a company-wide basis. The Company’s products are primarily produced through independent agents within the states in which we operate.

The Company’s life and accident and health operations comprise the second business segment. The life and accident and health insurance segment consists of two lines of business: traditional life insurance and supplemental accident and health insurance.

Total assets by industry segment at March 31, 2022 and December 31, 2021 are summarized below:


($ in thousands) Assets by industry segment	Total		P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations

March 31, 2022	$	149,339	$	87,515	$	57,437	$	4,387

December 31, 2021	$	151,683	$	87,657	$	59,278	$	4,748

Net income (loss) by business segment for the three months ended March 31, 2022 and 2021 is summarized below:


($ in thousands) Three months ended March 31, 2022	P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations		Inter- company Eliminations		Total
REVENUES
Net premiums earned	$	14,161	$	1,354	$	—	$	—	$	15,515
Net investment income	346		653		4		(135)		868
Investment gains (losses)	(368)		109		(13)		—		(272)

Other income	122		198		249		(447)		122
	14,261		2,314		240		(582)		16,233
BENEFITS AND EXPENSES
Policyholder benefits paid	7,742		1,147		—		(97)		8,792
Amortization of deferred policy acquisition costs	702		288		—		—		990
Commissions	2,034		66		—		—		2,100
General and administrative expenses	2,005		398		201		(485)		2,119

Taxes, licenses and fees	680		90		—		—		770
Interest expense	—		9		138		—		147
	13,163		1,998		339		(582)		14,918
Income (Loss) Before Income Taxes	1,098		316		(99)		—		1,315
INCOME TAX EXPENSE (BENEFIT)	309		64		(21)		—		352
Net Income (Loss)	$	789	$	252	$	(78)	$	—	$	963


($ in thousands) Three months ended March 31, 2021	P&C Insurance Operations		Life Insurance Operations		Non-Insurance Operations		Inter-company Eliminations		Total
REVENUES
Net premiums earned	$	13,672	$	1,390	$	—	$	—	$	15,062
Net investment income	305		622		12		(135)		804
Investment gains	101		203		6		—		310

Other income	136		204		240		(444)		136
	14,214		2,419		258		(579)		16,312
BENEFITS AND EXPENSES
Policyholder benefits paid	7,956		1,447		—		(100)		9,303
Amortization of deferred policy acquisition costs	687		284		—		—		971
Commissions	2,059		77		—		—		2,136
General and administrative expenses	2,071		402		310		(479)		2,304

Taxes, licenses and fees	449		87		—		—		536
Interest expense	—		10		128		—		138
	13,222		2,307		438		(579)		15,388
Income (Loss) Before Income Taxes	992		112		(180)		—		924
INCOME TAX EXPENSE (BENEFIT)	220		23		(41)		—		202
Net Income (Loss)	$	772	$	89	$	(139)	$	—	$	722

The following table presents the Company’s gross and net premiums written for the property and casualty segment and the life and accident and health segment for the three months ended March 31, 2022 and 2021, respectively:


($ in thousands)	Three months ended March 31,
		2022		2021
Life, accident and health operations premiums written:
Traditional life insurance		$	1,010	$	1,018
Accident and health insurance		380		392
Gross life, accident and health		1,390		1,410
Reinsurance premium ceded		(53)		(43)
Net life, accident and health premiums written		$	1,337	$	1,367
Property and Casualty operations premiums written:
Dwelling fire & extended coverage		$	12,376	$	11,863
Homeowners (Including mobile homeowners)		4,392		5,027

Other liability		481		534



Gross property and casualty		17,249		17,424
Reinsurance premium ceded		(2,551)		(2,405)
Net property and casualty written		$	14,698	$	15,019
Consolidated gross premiums written		$	18,639	$	18,834
Reinsurance premium ceded		(2,604)		(2,448)
Consolidated net premiums written		$	16,035	$	16,386

The following table presents the Company’s gross and net premiums earned for the property and casualty segment and the life and accident and health segment for the three months ended March 31, 2022 and 2021, respectively:


($ in thousands)	Three months ended March 31,
		2022		2021
Life, accident and health operations premiums earned:
Traditional life insurance		$	1,030	$	1,042
Accident and health insurance		377		391
Gross life, accident and health		1,407		1,433
Reinsurance premium ceded		(53)		(43)
Net life, accident and health premiums earned		$	1,354	$	1,390
Property and Casualty operations premiums earned:
Dwelling fire & extended coverage		$	11,512	$	10,178
Homeowners (Including mobile homeowners)		4,724		5,362

Other liability		476		537



Gross property and casualty		16,712		16,077
Reinsurance premium ceded		(2,551)		(2,405)
Net property and casualty earned		$	14,161	$	13,672
Consolidated gross premiums earned		$	18,119	$	17,510
Reinsurance premium ceded		(2,604)		(2,448)
Consolidated net premiums earned		$	15,515	$	15,062

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

NATIONAL SECURITY GROUP INC 10-Q