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 and thank you for joining us today to discuss 21st Century Holding Company’s 2010 fourth quarter and full year financial results. I'd like to start the call off with the highlights of our results from both the quarter and for the year. I'll also discuss a few recent developments and provide you with an outlook as we head into 2011. Pete Prygelski, our Chief Financial Officer, is here with me. Following my remarks, we will open up the call and we'll be glad to answer your questions. Our results for the fourth quarter were primarily affected by our decision to take a more conservative approach to our reserves. The company reviews its reserve position on a monthly basis, however, annually we perform a more in-depth review of our reserves. And upon analyzing our position for the fourth quarter, we decided to take a $2.4 million charge to strengthen our reserves. For the three months ended December 31, 2010, the company reported a net loss of $3.5 million or $0.43 per share compared to a net loss of $7.4 million or $0.93 per share in the same three-month period in 2009. For the 12 months ended December 31, 2010, the company reported a net loss of $8 million or $1.01 per share compared to a net loss of $10.3 million or $1.29 per share in the same 12-month period the prior year. Net premiums earned increased $1.2 million or 12% to $11.5 million for the three months ended December 31, 2010 as compared to $10.3 million for the same three-month period the prior year. Net premiums earned decreased $2.9 million or 6.1% to $45.1 million for the 12 months ended December 31, 2010 as compared to $48 million for the same 12-month period in 2009. Gross premiums written decreased by $5.3 million or 18.1% to $24.1 million for the three months ended December 31, 2010 as compared to $29.4 million for the three months ended December 31, 2009.
Total revenues remained strong this quarter as we continued to see the results of our disciplined approach to underwriting and the rate improvement for the last 18 months take effect. Total revenues increased $1.4 million or 11.2% to $14.3 million for the three months ended December 31, 2010 as compared to $12.9 million for the same three months in 2009. Total revenues increased $1.7 million or 3% to $60.6 million for the 12 months ended December 31, 2010 as compared to $58.9 million for the same 12-month period in 2009.As we mentioned, 21st Century Holding Company recently merged its two wholly-owned insurance company subsidiaries, Federated National Insurance Company and American Vehicle Insurance Company, in January. As part of the merger, the company agreed with the Florida Office of Insurance Regulation to, among other things, better distribute its book of business throughout the entire state versus our current concentration in south Florida. The merger yields the benefits of scale and provides better use of our capital from a regulatory, rating agency and operations perspectives. We will benefit from the reduction of redundant regulatory filing administrative expenses. We will also have increased flexibility with our reinsurance program and anticipate more favorable terms on the company's upcoming reinsurance treaties. Read the rest of this transcript for free on seekingalpha.com