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Now, at this time, I would like to turn the conference over to Mr. Michael Braun, Chief Executive Officer and President of 21st Century Holding Company. Please go ahead, sir.Michael Braun Thank you. Good afternoon. Pete and I would like to thank everyone for joining us today to discuss 21st Century Holding Company’s second quarter 2010 earnings results. I would like to review the highlights of our financial results as well as provide our outlook on the second half of the year. Following my remarks, we will open up the call to your questions. Our second quarter results continue to reflect the challenging rate environment quota, not just for 21st Century but for the entire industry. However, we expect our performance to improve in the second half of this year as a result of both improved conditions and the actions that we have taken to position the company for success. Let me begin with the financial highlights of the quarter. For the three months ending June 30, 2010, the company reported net loss of $2.3 million or $0.30 per share on 7.9 million average undiluted and diluted shares outstanding, compared with net income of $0.8 million or $0.10 per share on 8.01 million undiluted and diluted shares outstanding in the same three month period last year. For the six months ending June 30, the company reported a net loss of $3.3 million or $0.42 per share on 7.95 million average undiluted and diluted shares outstanding, compared with a net income of $1.1 million or $0.14 per share on 8.01 million average undiluted and diluted. Net premiums earned decreased $3.4 million or 23.7% to $10.9 million for the three months ending June 30, compared with $14.3 million for the same three month period last year. Net premiums earned decreased $6.3 million, or 22.2% to $21.9 million for the six months ending June 30, 2010, compared with $28.2 million for the same six month period last year.
Total revenues decreased $2.3 million or 13.2% to $15 million for the three months ending June 30, 2010, compared with $17.3 million for the same three month period last year. Total revenues decreased $2.2 million, or 6.6% to $30.8 million for the six months ending June 30, 2010, as compared to $33 million for the same six month period last year.As I mentioned, we continue to operate in a challenging rate environment. As a result, we have maintained a disciplined approach to our underwriting in the quarter, by writing and renewing only those policies that match our underwriting guidelines and turning down business that is not profitable. This discipline while appropriate in building long-term value for our shareholders has had and impact on our revenues and net premiums earned in this quarter. During the last 12 months, we have taken steps to position the company to return to profitable growth as the environment improves and we are confident about our outlook, as we head into the second half of the year. The reinsurance costs have decreased as expected, due to better exposure management and more favorable terms on our private reinsurance program versus the prior year. The total cost of our property reinsurance program has dropped from about $52 million to $43 million. We will see the benefit of this savings flow through our financials starting with the third quarter. Read the rest of this transcript for free on seekingalpha.com