Mercury General Corp. on Monday said it turned to a profit in the fourth quarter as the home and auto insurer paid out less in claims than it took in premiums.

The Los Angeles company reported fourth-quarter net income of $34.2 million (62 cents per share), compared with a net loss of $168 million (-$3.07) a year earlier.

Operating income, which excludes investments, was $38.2 million (69 cents), compared with a year-earlier operating loss of $26.7 million (-48 cents). Total revenue rose 36 percent to $677 million. Analysts polled by Thomson Reuters expected the company to report operating income of 68 cents on total revenue of nearly $724 million.

Net premiums written fell 3.5 percent to less than $619 million. Combined ratio, the percentage of premiums an insurer has to pay out in claims and expenses, was 98.1 percent compared with more than 113 percent a year earlier. A number over 100 means underwriting was unprofitable.

The board declared a quarterly dividend of 59 cents per share, a 1.7 percent increase over the dividend paid a year earlier.

Shares were down 11 cents, or less than 1 percent, to $38.93 in midday trading on the New York Stock Exchange.