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Quarterly Results for 2014 and 2013
 12 Months Ended
Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Results for 2014 and 2013

NOTE 17 – QUARTERLY RESULTS FOR 2014 AND 2013 (UNAUDITED)

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

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

For the year ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

63,807

 

 

$

73,362

 

 

$

94,288

 

 

$

95,420

 

Investment income

 

 

518

 

 

 

412

 

 

 

644

 

 

 

801

 

Total revenues

 

 

74,305

 

 

 

86,989

 

 

 

103,500

 

 

 

104,482

 

Total expenses

 

 

51,188

 

 

 

56,580

 

 

 

66,348

 

 

 

67,556

 

Net income

 

 

13,549

 

 

 

17,126

 

 

 

21,341

 

 

 

20,972

 

Basic earnings per share

 

$

0.41

 

 

$

0.50

 

 

$

0.64

 

 

$

0.63

 

Diluted earnings per share

 

$

0.38

 

 

$

0.49

 

 

$

0.61

 

 

$

0.59

 

For the year ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

65,409

 

 

$

66,867

 

 

$

68,927

 

 

$

66,452

 

Investment income

 

 

12

 

 

 

137

 

 

 

382

 

 

 

1,397

 

Total revenues

 

 

67,455

 

 

 

77,756

 

 

 

78,368

 

 

 

77,580

 

Total expenses

 

 

47,693

 

 

 

48,068

 

 

 

53,255

 

 

 

51,587

 

Net income

 

 

11,959

 

 

 

17,029

 

 

 

14,407

 

 

 

15,582

 

Basic earnings per share

 

$

0.30

 

 

$

0.47

 

 

$

0.43

 

 

$

0.46

 

Diluted earnings per share

 

$

0.29

 

 

$

0.44

 

 

$

0.40

 

 

$

0.44

 

 

The improvement in the fourth quarter results for 2014 compared to 2013 includes an increase in revenues of $26.9 million offset by an increase in operating expenses of $16.0 million. The primary driver behind these increases was the reduction of the quota-share cession rate from 45% to 30% in June of 2014. The Company has also benefited from an overall decrease in the cost of certain reinsurance and operational initiatives to expedite the settlement of claims.  These initiatives have reduced both the severity of claims as well as the time to settle them, thereby reducing losses and loss adjustment expenses as a percent of earned premium.