Erie Indemnity Co., parent company of Erie Insurance, reported fourth quarter earnings of $24.9 million, marking a turnaround from its report of $6.3 million in losses for the same quarter in 2008.

The Erie, Pa.-based property-casualty insurer that has offices in 11 states, including Maryland, Pennsylvania and Virginia, and Washington, D.C., reported operating income of $22.6 million, an increase of $7.6 million from the same period in 2008.

The company’s property and casualty group reported a 2.8% increase in direct written premiums compared to the fourth quarter of 2008. It had an increase in policies in force, by 3.5%, to 4.1 million, which was offset by lower average premium per policy, the company said in a statement.

The company said its increase in policies was attributable to strong retention rate (90.6%) and more new policies being sold. The year-over-year average premium per policy for all lines of business decreased 1.9% in the fourth quarter, compared to 2008. The personal lines year-over-year average premium per policy increased 0.1%, while the commercial lines year-over-year average premium per policy decreased 6.1%.

The commercial lines decrease was driven by lower workers’ compensation premium because of a shift in its mix of business and lower exposures as employers reduced their payrolls in the recession, the company said.

For last year, Erie Indemnity’s net income totaled $108.5 million, up from the $69.2 million mark in 2008. Operating income (excluding net realized gains or losses and impairments on investments and related taxes) decreased to $109.6 million, from $142.7 million in 2008.

Erie Insurance Group is the 14th largest automobile insurer and the 18th largest property-casualty insurer in the United States, with more than 4.1 million policies in force.