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Quarterly Results for 2012 and 2011 (Unaudited)
 12 Months Ended
Dec. 31, 2012
Quarterly Results for 2012 and 2011 (Unaudited) [Abstract]  
QUARTERLY RESULTS FOR 2012 AND 2011 (UNAUDITED)

NOTE 17 – QUARTERLY RESULTS FOR 2012 AND 2011 (UNAUDITED)

The following table provides a summary of quarterly results for the periods presented (in thousands except per share data):

 

                                 
    First
Quarter		     Second
Quarter		     Third
Quarter		     Fourth
Quarter		  

For the year ended December 31, 2012

                        

Net premiums earned

   $ 48,640     $ 55,694     $ 59,512     $ 67,274  

Investment income

     (36 )      (16 )      215     $ 278  

Total revenues

     60,247       59,928       74,537     $ 75,227  

Total expenses

     44,018       46,936       60,563     $ 65,863  

Net income

     9,873       7,777       8,256     $ 4,406  

Basic earnings per share

     0.24       0.20       0.21     $ 0.11  

Diluted earnings per share

     0.24       0.19       0.20     $ 0.11  
         

For the year ended December 31, 2011

                        

Net premiums earned

   $ 48,004     $ 49,524     $ 49,634     $ 51,823  

Investment income

     257       (21 )      122       430  

Total revenues

     64,333       53,672       49,413       58,443  

Total expenses

     41,257       40,551       48,170       62,165  

Net income

     13,898       7,549       975       (2,313 ) 

Basic earnings per share

     0.35       0.19       0.02       (0.06 ) 

Diluted earnings per share

     0.34       0.19       0.02       (0.06 ) 

The improvement of $6.7 million in the fourth quarter results of 2012 compared to 2011 is attributable to several factors including an increase in revenues of $16.8 million comprised mostly of improvements in net earned premiums of $15.5 million. The increase in revenues also includes improved performance of the investment trading portfolio of $1.9 million. The improvement in net earned premiums reflects a reduction in the amount of ceded premiums under the quota-share reinsurance contract for the 2012-2103 reinsurance program as well as the benefit of premium rate increases over the past 12 months. There was also a benefit to earnings from the reduction in losses and loss adjustment expenses of $8.7 million. These improvements were partially offset by an increase in general and administrative expenses of $12.4 million, including a $6.3 million FIGA assessment which will be recovered over a 12-month period beginning February 1, 2013 and an increase in charges of $2.3 million related to policy acquisition costs. There were also increases in compensation, insurance and legal fees of $ 1.7 million, $1.0 million and $398 thousand, respectively. The effective tax rate increased to 52.9% compared to 37.8% due to a relative increase in the amount of non-deductible compensation recorded in the fourth quarter of 2012 compared to 2011.