Branchville, N.J.-based insurer Selective Insurance Group Inc. reported third-quarter net income dropped 2.5 percent, but its chief executive said the company results were strong in the face of a softening market.
“Our third-quarter results were solid on all fronts,” despite “continued intense marketplace competition,” said Gregory E. Murphy, chairman, president and chief executive officer.
For the third quarter of this year, ending Sept. 30, the firm reported net income decreased $937,000 to $37 million compared with the same period last year. Net income per share managed to increase 3 cents to 66 cents a share. Revenues rose 1 percent, or $4.7 million, in the quarter to $455.5 million. Net premiums rose 2 percent, or $8.1 million, to $409.5 million. The company reported a combined ratio of 96.2, an increase of 1.3 points.
The results were driven by a 16 percent increase in commercial lines new business and a half-percent increase in retentions, Mr. Murphy said.
For the first nine months of this year, compared to last, net income decreased 8 percent, or $10 million, to $110 million. Revenues increased 2 percent, $31 million, to $1.38 billion on net written premium of $1.23 billion, a decrease of less than 1 percent, or $2.6 billion, from last year. The company reported a combined ratio of 96.3, an increase of 1.8 points.
The company announced that it was paying a cash dividend of 13 cents a share payable Dec. 3 to shareholders of record as of Nov. 15.
The company also announced today that it plans to redeem half of its outstanding 1.6155 percent Senior Convertible Notes due 2032 that were issued in 2002.
The scheduled redemption will be on Nov. 5 at a total price of $384.74 per $1,000 note, plus interest.
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