NU Online News Service, Aug. 9, 3:35 p.m. EDT

Losses from a dozen storms classified as catastrophes during the second quarter drove down net income for Harleysville Group Inc. despite an increase in net written premiums.

The insurer of small- and midsize businesses said the group's overall combined ratio was 101.3 in the second quarter compared to 99.5 for the 2009 second quarter. Catastrophes added 3.8 points to the combined ratio.

Harleysville said net income was about $17.1 million for the second quarter versus $20.1 at the same time last year. Net income for the first six months was $25.1 million compared to $37.4 million.

Net written premiums increased 3.6 percent to $230.2 million during the 2010 second quarter. Through six months, net written premiums were up 1.8 percent compared to last year. In personal lines net written premiums were up 14.2 in the second quarter when compared with the same time last year.

"We are encouraged to see that our premium volume is increasing as we have been able to successfully execute our strategy to grow our small commercial and personal lines business, where we think pricing is stronger," said Michael L. Browne, president and chief executive officer.

Harleysville reported a slight decrease, $1.3 million, or 0.6 percent, in premiums earned during the second quarter due to a commercial lines premiums decrease of $6.1 million offset by a $4.8 million increase in personal lines.

Special Reports /

Catastrophes Dampen Harleysville 2Q Income

Related Stories

Recommended For You