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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 Good afternoon and thank you for joining us today to discuss 21st Century Holding Company’s third quarter 2010 financial results. I’d like to review the highlights of our financial results as well as provide our outlook for the company. Following my remarks, Pete and I will open up the call to your questions. While we experienced a loss in the quarter, our net earned premiums and total revenue grew at double-digit rates and we experienced lower losses on our property book than we experienced during the same quarter last year. We also incurred a lower reinsurance expense as a result of negotiating coverage at more favorable terms. Looking forward, we are encouraged by the consistent positive trends that we are seeing and the solid momentum that we have built over the last few quarters and we see continuing into 2011. Now for the financial highlights, for the three months ended September 30, 2010 the company reported a net loss of 1.3 million compared with a net loss of 4 million in the same three month period last year. For the nine months ended September 30, 2010, the company reported a net loss of 4.5 million compared to a net loss of 2.9 million in the same nine month period last year. Year-over-year, third quarter results improved due to a more disciplined underwriting and the positive effects of the 19% rate increase that went into effect on our voluntary book last November. Net – net premiums increased to 2.1 million or 22.2% to 11.6 million for the three months ended September 30, 2010 compared with 9.5 million for the same three months period last year.
Net premiums earned decreased 4.2 or 11% to 33.5 million for the nine months ended September 30, 2010 compared with 37.7 million for the same nine months period last year. We continue to see very high demand in the foreign market for our homeowners’ product. We typically write few policies in the third quarter during the active wind season. While we continue to measure – maintain a measured and disciplined approach, we are significantly increased writing business in the fourth quarter.Total revenues increased 2.5 million or 19.1% to 15.5 million for the three months ended September 30, 2010 compared with 13 million for the same three months period last year. Total revenue increased 300,000 or 0.7% to 46.3 million for the nine months ended September 30, 2010 compared with 46 million for the same nine months period last year. While we are pleased with the momentum and the positive trends that we are seeing in our third quarter results, we continue to operate in a challenging rate environment. And as our more disciplined and measured approach to underwriting – and as such our disciplined and more measured approach to underwriting is even more important. On the reinsurance side, while the costs were lower this quarter, due to more favorable terms we tend to take a more risk as risk approach to buying reinsurance than some of our competitors. We currently retain 5 million per catastrophic event which represents a conservative 8% of the company’s capital. While no hurricanes hit the state of Florida this year, it was a third most active hurricane season on record. Read the rest of this transcript for free on seekingalpha.com