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Now at this time, I’d 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, operator. Good afternoon and thank you for joining us today to discuss 21st Century Holding Company’s first quarter 2011 financial results. I'd like to start the call off the call with the highlights of our results this quarter and a general outlook for 2011. Pete Prygelski, our Chief Financial Officer, is here with me. Following my remarks, we will open up the call and Pete and I will be glad to answer your questions. For the three months ended March 31, 2011, we reported a net loss of $2 million or $0.25 per share, and $7.9 million average undiluted and diluted shares outstanding compared with a net loss of $900,000 million or $0.12 per share on $7.9 million average undiluted and diluted shares outstanding in the same three-month period in last year. For the three months ended March 31, 2010, the company would have reported a net loss of $2.3 million or $0.29 per share on $7.9 million average undiluted and diluted shares outstanding, if we had not realized a $2.2 million of net realized investment gains. Gross premiums written increased $100,000 or 0.5% to $27.1 million for the three months ended March 31, 2011, compared with $27 million for the same three-month period last year. Homeowners gross premiums written increased $1.3 million or 6.1% to $22.4 million for the three months ended March 31, 2011, compared with $21.1 million for the same three month period last year. Unearned premium increased $3 million or 6.3%, to $50.1 million as of March 31, 2011, compared with $47.1 million as of December 31, 2010. Net premiums earned increased $100,000 or 1.2% to $11.1 million for the three months ended March 31, 2011, compared with $11 million for the same three-month period last year. Total revenue decreased $2.7 million or 16.8% to $13.1 million for the three months ended March 31, 2011, compared with $15.8 million for the same three months period last year.
Total expenses decreased $1 million or 5.9% to $16.3 million for the three months ended March 31, 2011, compared with $17.3 million for the same three-month period last year.Our improved performance this quarter in written premium and earned, as a result of both in improved book of business as we continue to be more calculative in our risk management and continued discipline in our underwriting in which we only pursue business as profitable for the long-term benefit of the company. We expect to see continued performance improvements for the remainder of 2011 driven by the following First, continued underwriting discipline and exposure management, which has improved our property book of business over the past few years, while we see a very strong demand in the market, we are focused on writing only the business that will have long-term benefits to the company and our shareholders versus taking on less profitable business for short-term bump in our performance. Second, we continue to see the positive effect of the rate increases we have received over the past few years. Our latest increase which was granted by the Florida Office of Insurance Regulation on February 16 2011, called for a 20% average of statewide increase on our voluntary homeowners program. This increase became effective on March 23 for new business and April 14 for renewals. As the year progresses we should see an increasing benefit from the rate increases as rates return to a more adequate and normalized level. Third, as we mentioned last quarter, we continue to realize benefits from the merger of our two insurance subsidiaries, which should also help improve our performances we continue through 2011. And as part of the effect, as we negotiate our reinsurance due to our improved capital structure and lastly the Florida Legislative Session has recently approved and formed a new legislation that would allow insurance companies to withhold full payment on certain Claims until repairs have actually been made, shorten the length of time that Claims can be reported and narrow the definition of what is covered in a single plan. We are optimistic that Florida’s new Governor will sign this into law. With that, we are glad to open up the call to your questions. Read the rest of this transcript for free on seekingalpha.com