Harleysville Group Inc. reported that 2005 fourth-quarter net income increased by 28 percent.
The company said its net rose by $3.3 million, or 21 cents a share, to $18.5 million, or 60 cents a share, compared with the same quarter in 2004 when net income was $11.8 million, or 39 cents a share.
The Harleysville, Pa.-based company said earnings in the fourth quarter increased by over 33 percent compared to the same period in 2004, and total earnings for the year increased by nearly 25 percent over 2004.
Net income for the year was $61.4, compared with $46.9 million for 2004.
On a per share basis, Harleysville earned $2.00 per share for the year, compared with $1.28 per share in 2004.
Much of the company's gain was due to decreases in losses and loss settlement expenses, which totaled roughly $136.5 million for fourth-quarter 2005, compared with $151.9 million during the same time period in 2004.
Revenues dipped from approximately $953.4 million for all of 2004 to $948.3 million last year, but total expenses decreased more sharply from $897.8 million to $869.4 million.
Harleysville acknowledged "essentially no realized investment gains in the fourth quarter" for either 2004 or 2005, and saw a sharp decline in investment income for the full year.
Michael L. Browne, Harleysville Group's president and chief executive officer, said he was "pleased with the significant progress we have made toward successfully executing our strategic plan and achieving our 2006 goals of underwriting profitability–that is, producing an overall combined ratio under 100 percent–and a return on equity of at least 12 percent."
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