Selective Insurance Group reported net income in the fourth quarter of 2005 dropped 7 percent on a reduction in capital gains and the sale of a managed care subsidiary.
The Branchville, N.J.-based carrier reported net income in the fourth quarter fell $2.9 million, going from $43.9, or $1.38 a share, in 2004 to $41.04 million, or $1.30 a share. Revenues increased 4 percent, or $17.7 million, from $414 million to $431.7 million. Selective combined ratio improved, going from 97.3 percent to 96.5 percent for the quarter.
The company blamed the fourth-quarter loss on a drop in capital gains from $11.4 million to $3.2 million. It also reported a $2.6 million after-tax loss from the sale of a managed care subsidiary.
For the year, net income was up 15 percent, or $20 million, from $129 million, or $4.07 a share, to $149 million, or $4.69 a share for 2005. Revenues increased 8 percent, or $117.4 million, from $1.55 billion to $1.67 billion. Selective reported a combined ratio for 2005 of 94.6 percent down from 95.9 percent in 2004.