Branchville, N.J.-based insurer Selective Insurance Group saidtoday that fourth quarter 2006 net income rose 6 percent, despitecompetitive pressures.

In its fourth quarter, year-end wrap-up, the company alsoannounced an increase in its stock dividend and a two-for-one stocksplit.

"Despite increased competitive pressures, our solid 5 percentgrowth in net premiums written [for the year] continued to outpaceindustry growth estimates," said Gregory E. Murphy, chairman,president and chief operating officer for Selective, in astatement.

Net income in the fourth quarter increased $3 million, from $41million, or $1.30 a share, to $44 million, or $1.43 a share. Totalrevenues rose 6 percent, or $27 million, from $432 million to $459million. However, net premiums written of $307 million were down $3million from the same period last year.

The company reported a combined ratio of 99 percentdeteriorating from 96.5 percent in the fourth quarter of 2005.

For the year, net income rose 10 percent, or $15 million, from$149 million, or $4.69 a share, to $164 million, or $5.30 a share.Revenues rose 8 percent, or $137 million, from $1.67 billion to$1.8 billion. Net premiums written rose from $1.46 billion to $1.54billion for a $76 million increase.

The combined ratio for the year was 95.4 percent, up slightlyfrom 94.6 percent in 2005.

Selective also said it would pay a quarterly cash dividend of 24cents, a 9 percent increase, on March 1 to stockholders of recordas of Feb. 13. The company also plans a two-for-one stock split onFeb. 20 to shareholders of record as of Feb. 13.