NU Online News Service, Feb. 19, 3:13 p.m. EST

Harleysville Group Inc. said underwriting discipline helped it post 2009 fourth-quarter net income of $24.2 million, a 426 percent increase over the period in 2008 when the figure was $4.6 million.

For all of 2009, the Harleysville, Pa.-based super-regional insurer reported net income of $86.3 million, up 104 percent from 2008 net income of $42.3 million.

Total net written premiums declined 2 percent in the quarter to $210.2 million from $214.5 in the 2008 fourth quarter. For personal lines, net written premiums increased 8.9 percent to $45.1 million from $40.1 million. Commercial lines net written premiums, meanwhile, declined 9.1 percent in the quarter to $165.1 million from $174.4 million.

The 2009 fourth-quarter combined ratio increased to 99.1 from 98.5 in the 2008 fourth quarter. For the year, the combined ratio improved to 99.8 compared to a 2008 combined ratio of 100.3

Realized investment gains were $894,000 in the 2009 fourth quarter, compared to 2008 fourth-quarter investment losses of $30.8 million.

For the year, 2009 investment gains were $2.3 million compared to 2008 investment losses of $59.8 million.

Michael L. Browne, Harleysville Group's president and chief executive officer, said of the results, "Our balance sheet continues to remain very strong, with our book value growing 21 percent from year-end 2008. Our sound financial position also is evidenced by a high-quality investment portfolio, a strong reserve position, a debt-to-capital ratio of 15 percent, and a premium-to-surplus ratio of 1.3 to 1."

He added, "Much of the success we experienced during the past year is a result of our underwriting discipline. In this extremely competitive market, maintaining that discipline is a must.

"We can't afford to compromise on underwriting quality, so we are willing to walk away from underpriced business. Bottom line, we are focused on protecting the quality and long-term profitability of all of our business, as we seek to produce results that will continue to differentiate us favorably from our competition."

Special Reports /

Harleysville 4Q Net Up Over 400 Percent On Investments

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