Policy acquisition and other underwriting expenses fell 4.1% to $6.3 million from $6.6 million, attributed to lower costs associated with Citizens take-outs. The expense ratio rose to 42.3% from 31.2%, which the company linked to one-time stock and cash bonuses, a management fee buyout, and other costs tied to the IPO. The combined ratio increased to 72.9% from 60.8%.