Premiums-in-force were
$1.43 billion as of fourth quarter 2024, an increase of 5.7% compared to $1.36 billion as of fourth quarter 2023. The fourth quarter of 2024 represents our twelfth consecutive quarter of driving higher
in-force premium despite reductions in policy count.
Gross premiums written of $338.7 million were up 3.7%
from $326.7 million in the prior year quarter, reflecting organic growth of our commercial residential and surplus lines business and rate actions throughout the book of business. The use of inflation guard, which ensures appropriate property
values, also contributed to higher gross premiums written over the prior year quarter. Our intentional targeted exposure management actions taken over the last several years are expected to level out in 2025 as the Company continues its controlled
growth strategy, which includes growing our personal lines policy count.
Gross premiums earned were $360.5 million, up 6.1% from $339.6 million
in the prior year quarter, reflecting higher gross premiums written over the last twelve months as described above.
Net premiums earned were
$199.3 million, up 12.2% from $177.7 million in the prior year quarter, reflecting higher gross premiums earned, coupled with flat ceded premiums from the prior year quarter.
Ceded premium ratio was 44.7%, down 3.0 points from 47.7% in the prior year quarter driven by growth in gross premiums earned and flat ceded premium,
resultant from a reduction in reinsurance ceded on the Northeast net quota share program, which was offset by higher catastrophe excess of loss ceded premium and reinstatement premium associated with Hurricane Milton.
Net loss ratio was 54.7%, a 3.7 point increase from 51.0% in the same quarter last year reflecting higher net losses and LAE driven by Hurricane Milton in the
current year quarter. The increase in net losses and LAE from Hurricane Milton was partly offset by lower attritional losses. Net weather losses for the current accident quarter were $45.6 million, an increase of $34.6 million from
$11.0 million in the prior year quarter. Catastrophe losses in the current quarter were $40.0 million compared to $3.1 million in the prior year quarter. Other weather losses totaled $5.6 million, a decrease from the prior year
quarter amount of $7.9 million. Additionally, the net loss ratio was impacted by net unfavorable loss development of $3.8 million in the fourth quarter of 2024, compared to net unfavorable loss development of $1.8 million in the
fourth quarter of 2023.
The net expense ratio was 35.0%, a 1.1 point increase from the prior year quarter amount of 33.9%, driven primarily by the
increase in higher policy acquisition costs and general and administrative expenses outpacing the increase in net premiums earned.
Net combined ratio of
89.7% increased 4.8 points from 84.9% in the prior year quarter, driven by a higher net loss ratio and higher net expense ratio as described above.
Net
investment income, inclusive of realized gains (losses), was $7.8 million, up $2.0 million, or 34.4%, from $5.8 million in the prior year quarter reflecting larger investment balances coupled with actions to align the investments with
the yield curve, while maintaining a high-quality portfolio of short duration.
The effective tax rate was 29.9% compared to 6.7% in the prior year
quarter. The effective tax rate for the current year quarter was slightly higher than the statutory rate, caused by updated estimates used in the quarterly tax provision which drove an increase in income tax expense for the quarter. The effective
tax rate for the prior year quarter was significantly lower than the statutory rate, driven by the tax benefit of a decrease in the valuation allowance for Osprey Re, our captive reinsurer. The impact of permanent tax differences on projected
results of operations for the calendar year impacts the effective tax rate, which can also fluctuate throughout the year as estimates used in the quarterly tax provision are updated with additional information.
