Mercury General Corp.’s first-quarter earnings fell 37 percent as the property and casualty insurer sustained a drop in revenue and investment gains.

The Los Angeles company reported net income of $61.2 million ($1.12 a share), compared with $96.7 million ($1.75) a year earlier. Excluding investment gains, per-share profit rose from 83 cents to 85 cents. Analysts surveyed by Thomson Reuters on average expected adjusted profit of 66 cents.

Revenue fell 11 percent to less than $670 million, as homeowners and drivers cut back on their coverage. Analysts expected more than $676 million.

Net premiums written slid 2.7 percent to less than $653 million. Net investment income before taxes fell 5 percent to $35.9 million.

Mercury General’s combined ratio, which is the percentage of premiums spent on claims and expenses, improved, dropping from 97 percent to 96 percent. The company’s target is 95 percent.

Shares were down 83 cents, or less than 2 percent, to $45.82, in midday trading Monday.