California property-casualty insurer Mercury General Corp. on Monday beat Wall Street expectations by reporting a first-quarter profit, reversing a year-ago loss, helped by investment gains and cost-cutting.

The Los Angeles provider of automobile, homeowners and commercial property insurance reported net income of $96.7 million ($1.75 per share), compared with a net loss of $4 million (-7 cents) a year ago.

Analysts surveyed by Thomson Reuters on average expected net income of 64 cents per share.

Net premiums earned fell 8 percent to $666 million. The quarter included investment gains of $50.7 million (92 cents), compared with losses of $59.9 million (-$1.09) in the 2008 quarter.

Mercury General said its combined ratio was 96.9 percent, compared with 95.4 percent a year ago. A ratio above 100 means an insurer is paying out more than it takes in from writing policies.

The company said it eliminated 360 jobs during the quarter, about 7 percent of its work force, and suspended its employee 401(k) matching program to save money. The board did declare a quarterly dividend of 58 cents per share to be paid on June 29.

Mercury General shares were up 60 cents, or 2 percent, to $33.94 in midday trading on the New York Stock Exchange.