Selective Net Income Jumps 32%

Selective Net Income Jumps 32%

NU Online News Service, Nov. 6, 2:15 p.m. EST?Selective Insurance Group Inc. reported net income of $14.7 million for its third quarter, a 32 percent increase compared to one year ago when the insurer posted $11.1 million in net profit.

Net premiums written for the Branchville, N.J.-based company rose to $317.5 million from $267.4 million reported one year ago. Net premiums earned jumped to $289.7 million compared to $252 million posted during the year-ago period.

The insurer credited commercial renewal price increases, favorable commercial property growth and an improving auto market in New Jersey for its improved earnings results. These positive factors offset a significant increase in catastrophe losses?the company reported $8.8 million after-tax in CAT losses, largely due to Hurricane Isabel, compared with $2 million after-tax in CAT losses one year ago.

"We responded to a Category Two hurricane in one of our primary operating territories this quarter, yet still increased operating income by almost 40 percent," said Gregory Murphy, chief executive officer at Selective Insurance Group. "Our favorable financial performance was led by ongoing improvements in our core commercial lines operation, which generated a statutory combined ratio of 99.3 percent for the quarter, down more than three points from third quarter 2002."

Selective, which has been expanding its business beyond its traditional stronghold in New Jersey to the rest of the nation, offers various commercial policies. Coverages include workers' compensation, commercial auto, property and liability insurance.

The company's personal lines include homeowners and auto insurance, while other lines offered are flood insurance, managed care services, and professional employer organization products and services.

Last year the company posted $41.9 million in profit, with $1.18 billion in sales.