Mercury General Corp. on Monday said that its first quarter profit fell 4.8 percent, largely due to higher costs from settling claims related to this year’s heavy storms in Florida and California. But its results beat analysts’ expectations.

The Los Angeles provider of homeowner and auto insurance reported first quarter net income of $58.2 million ($1.06 per share) compared with $61.2 million ($1.12). Revenue rose 0.8 percent to more than $705 million.

Analysts surveyed by Thomson Reuters on average expected the company to report per-share profit of 56 cents on revenue of more than $670 million.

Net premiums written rose less than 1 percent, and losses and loss adjustment expenses increased 3.7 percent. The combined ratio, which is the percentage of premiums spent on claims and expenses, rose from 96.3 percent to 98.2 percent. A ratio above 100 means that for every premium dollar taken in, more than a dollar went to cover claims and other expenses.

Shares were up 30 cents, or 1 percent, to $40.13 in midday trading on the New York Stock Exchange.