For the year, net income was up 38 percent, or $3.3 million, from $9 million, or 93 cents a share, to $12 million, or 94 cents a share. Revenues grew 61 percent, or $48 million, from $80 million to $128 million.

The company's combined ratio for the year stood at 91.6 percent, compared with 90.1 percent in 2004.

Direct written premium in the fourth quarter grew 40 percent, or $20 million, going from $50 million to $70 million.

The company's net income for the quarter was positively affected by $4.8 million in positive reserve developments related to Katrina and prior accident years.

The company also reported after-tax costs for Hurricanes Rita and Wilma of $1.4 million for 2005.

During the conference call, Mr. Abram said the company learned lessons from Katrina and, as a result, is moving its primary property exposure further back from the coast and reducing its aggregate exposure in certain geographic areas in its excess property book of business. He gave no further details on the carrier's plans.

Mr. Abram said the pull-back is not affecting other lines of business, but he realized the change in the company's appetite would be an unpleasant development.

"We are very aware, as we reorient our book, that it would not be sensitive to our agents and our insured to say this is not disruptive in certain cases," said Mr. Abram. "We are working very hard with our agents and our insureds to keep that transition as gentle and as undisruptive as possible. We hate that, but that's the reality of the situation. We have an obligation to get our book in line with the right appetite for us."

He noted that the realignment has not affected the company's casualty or other lines of business.

Overall, he said that except for excess property, which is seeing substantial rate increases, other lines are flat or down, but "remain attractively rated."