Mercury General Corp. reported that fourth quarter profit fell 11 percent mainly due to the claims stemming from devastating wildfires late last year.

Mercury reported net income of $44.6 million (81 cents per share), down from $50.1 million (91 cents) from the same period the previous year. Analysts polled by Thomson Financial were expecting earnings of 83 cents per share.

The latest earnings included about $23 million in losses (-27 cents per share), due to the October wildfires.

Net premiums written during the quarter by the Los Angeles-based insurer also fell 5.7 percent to just under $700 million.

However, for the full year Mercury ‘s earnings were up 11 percent to $238 million ($4.34 per share), compared with $215 million, or $3.92 per share in 2006.

Shares in Mercury were down 3.1 percent to $47.54 in early trading on the New York Stock Exchange.