The carrier's combined ratio for the quarter was 103.4 percent. The combined ratio for the year dropped to 103.2 percent from 106.7 percent in 2001.

For the year, net income rose 63 percent, or $16.3 million, going from $25.7 million in 2001 to $42 million in 2002. Net premiums written increased 14 percent for the year, going from $925.4 million to $1.05 billion in 2002. Earnings per share increased 58 cents, going from 98 cents a share to $1.56.

Gregory E. Murphy, the company's chairman, president and chief executive officer, said in a statement, the company has narrowed losses in its personal lines business, including flood operations, to a combined ratio of 105 percent for the fourth quarter. This is down from 115.3 percent for the same period of 2001.

The results, he said, reflected improvements in the company's New Jersey homeowners and automobile insurance lines of business. He credited two years of price increases in auto for the improvement. Selective will get a 2.8 percent increase for auto in March.

New Jersey personal auto represents less than 12 percent of the company's business, he added.