Other expense of $51.0 million increased $27.2 million from $23.8 million in the fourth quarter of 2011.

Full Year 2012 Results

For 2012, total revenue was $1.87 billion, an increase of $507 million, or 37.4%, from $1.36 billion a year ago. Gross written premium of $2.75 billion rose $599 million, or 27.8%, from $2.15 billion a year ago. Net written premium was $1.65 billion, an increase of $371 million, or 29.1%, from $1.28 billion a year ago. Net earned premium of $1.42 billion increased $382.0 million, or 36.8%, from $1.04 billion in 2011.

Commission and other revenues of $446.3 million, an increase of $125.4 million, or 39.1%, from $320.9 million for 2012 compared to 2011 and represented 23.9% of total revenue. The combined ratio totaled 89.5% compared with 89.0% in 2011.

Ceding commissions, primarily related to the reinsurance agreements with Maiden, totaled $197.0 million, up 27.9% from $154.0 million a year ago. During 2012, AmTrust ceded $846.5 million of gross written premium and $730.3 million of earned premium to Maiden compared to $703.2 million of gross written premium and $559.6 million of earned premium ceded in 2011.

Total service and fee income of $172.2 million increased $63.5 million, or 58.5%, from $108.7 million in 2011 and included $29.0 million from related parties compared with $16.7 million in 2011.

Investment income, excluding net realized gains and losses, totaled $68.2 million, an increase of 22.8% from $55.5 million in 2011. In addition, 2012 results included net realized investment gains of $9.0 million, or $5.8 million after-tax, on certain fixed income and equity investments compared with gains of $2.8 million, or $1.8 million after-tax, in 2011.

In 2012, net gain on life settlements including non-controlling interest was $13.8 million. Operating earnings (1) included gain on life settlement contracts of $6.7 million, net of non-controlling interest.

Loss and loss adjustment expense totaled $922.7 million in 2012, an increase of $244.4 million from $678.3 million in 2011 and resulted in a loss ratio of 65.0% compared with 65.4% for 2011.

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