Michael H. BraunThank you for joining us to discuss 21 st Century Holding Company’s fourth quarter and full year 2011 financial results. I am joined on the call by Pete Prygelski, our Chief Financial Officer. Our full financial results for the quarter can be found in our earnings press release on our website. I will go over some brief highlights from the quarter and then Pete and I will open up the line for questions. Our disciplined focus on underwriting, risk management, and expense control continues to translate into earnings results. We are pleased to report our second consecutive profitable quarter which included an underwriting profit for our insurance subsidiary. We reported fourth quarter net income of $2 million or $0.25 per share. Our loss ratio improved to 52.9% for the fourth quarter 2011 compared with 105.4% for the fourth quarter 2010 and 63.7% for the full year 2011 compared with 89% for the full year 2010. We are very encouraged by our results and the continued improvements we are seeing in our book of business and feel we are well positioned as we head into 2012. We also announced that we have been granted a 14% rate increase from the Florida Office of Insurance Regulation on our homeowner’s assumption policies which account for about 10% of our total property book effective April 5 th. As these rate increases take effect and flow through our book of business we expect to see continued benefits. During 2012 we expect to receive a single digit rate increase on our voluntary book. While we continue to see great demand in the market to write a lot of business, we are being prudent in our decision making process and are focused on making sure that we’re adding profitable policies to our book of business. We continue to keep a watchful eye on our expenses, which are down year-over-year. We have moved our corporate headquarters to a better and more efficient space for the company at a significant cost reduction and we continue to look for other ways to be prudent and conservative in our spending. We anticipate a successful renewal of our reinsurance program in July as our disciplined approach to underwriting has improved the quality of our book of business.
One final note before we open it up to questions, based on your feedback from some of our investors we will be changing our earnings release to four o’clock on our next earnings call and subsequent calls thereafter instead of at two o’clock and then we’ll be having the earnings calls at 4:30. Before we open it up to questions as well, there’s a few questions that were emailed in. I just want to take a moment to answer those.The first one is a question about our homeowner’s book of business and if we’re going to continue to write policies through the wind seasons and if we expect to grow it through 2012. The homeowner’s book of business is doing much better. It’s doing very well. We continue to have policies that we have non-renewed like we had in 2010 and ’11 but the quantity of policies we’re non-renewing is much lower than it has been in years past. In terms of writing policies, we were prudent with what we were writing, however, we’re seeing a significant increase in demand in 2012 and we think that the business in 2012 could increase by our projection is 10% but it could be more than that depending on how we do with our reinsurance and a couple other variables. But, there is significantly more demand out there for us to write more business but we’re writing it in a very managed manner. Read the rest of this transcript for free on seekingalpha.com