Selective Insurance Quarterly Profit Up Sharply

NU Online News Service, April 29, 3:36 p.m. EDT? Selective Insurance Group Inc. reported that higher prices and lower catastrophe losses pushed first-quarter net profit to $27.5 million, compared with $8 million during the corresponding period in 2003.[@@]

The Branchville, N.J-based company's operating income rose 341 percent for the quarter to $24.1 million, from $5.5 million reported one year earlier. The company said net premiums written rose 16 percent to $375.3 million in the quarter compared with the year-ago period.

Selective's quarterly combined ratio improved to 97.9, from 106.7 reported one year earlier. The company attributed the improvement to "more than four consecutive years of double-digit commercial renewal price increases?combined with ongoing underwriting improvements and lower catastrophe losses."

Selective Chief Executive Gregory Murphy, commenting on the quarterly results, said the strong first quarter was driven by the "excellent performance" of commercial lines operation, which represents 83 percent of Selective's overall premium volume.

"The well-defined strategies we have built around strong relationships with our agents, technology that drives ease of doing business and superior service are clearly differentiating Selective in the marketplace and driving profitable growth," Mr. Murphy commented.

Mr. Murphy also noted that Selective's commercial lines premiums were up 19 percent for the quarter, while renewal pricing was up 10.3 percent. Mr. Murphy also forecast that with increases in premiums continuing to outpace loss trends, "the outlook for commercial business remains favorable."

Overall revenue for the first quarter rose 17 percent from one year ago, to $375.1 million. This growth, Mr. Murphy commented, was driven by the continuing rise in net premiums earned, which was up 18 percent to $315.3 million, as well as higher net investment income of $29.5 million, up 8 percent from a year ago. The company also saw a 14 percent revenue rise, to $24.2 million, from its Diversified Insurance Services operation.

Selective Insurance Group Inc. is a holding company for six property-casualty insurance companies that offer primary and alternative market insurance for commercial and personal risks.

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Selective Insurance Quarterly Profit Up Sharply

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