Eastern Insurance Holdings Inc (EIHI) has reported a net loss of $11.8m, or $1.37 per diluted share, for the fourth quarter of 2010, compared to net income of $2.7m, or $0.29 per diluted share, for the same period in 2009.

Included in the net loss for the fourth quarter is an after-tax loss on the sale of Eastern Atlantic RE of $14.5m, or $1.68 per diluted share.

Net income from continuing operations was $538,000, or $0.06 per diluted share, for the fourth quarter of 2010, compared to $1.6m, or $0.18 per diluted share, for the same period in 2009.

Diluted book value per share was $14.88 for the fourth quarter of 2010, compared to $15.78 for the same period last year.

Total revenue for the fourth quarter of 2010 was $32.5m, compared to $26.23m for the same period of last year.

EIHI vice chairman Bruce Eckert said that during the fourth quarter of 2010, the company experienced three claims greater than the company’s $500,000 reinsurance retention compared to no such claims for the same period in 2009 and also had an unusual amount of claims just under the reinsurance retention in the quarter.

"This unusual claim activity came exclusively from our Mid-Atlantic book of business on accounts that met the underwriting standards and that have been profitably underwritten for years," Eckert said.