NU Online News Service, Oct. 29, 2:23 p.m. EDT
Selective Insurance Group Inc. reported third quarter net income rose 45 percent on a combination of improvement in its personal lines business and a benign catastrophe season compared to last year.
The Branchville, N.J.-based insurer reported net income rose $4 million to $13 million for the third quarter translating into a 7-cent increase in earnings per share to 24-cents. Total revenues improved less than 1 percent, or $964,000, to $390 million.
The company's statutory combined ratio rose 2.2 points to 99.8. Catastrophe losses for the third quarter stood at $1.3 million compared to $8.3 million for the same period last year.
"I am pleased with our third quarter results given the difficult economy and competitive marketplace," said Gregory E. Murphy, Selective's chairman, president and chief executive officer. "The recovery in the financial markets has led to a gain in our alternative investments this quarter."
He added that the company is seeing improvement in personal lines and is continuing "to drive" commercial lines renewal price increases.
For the first nine months, Selective net income has dropped 73 percent, or $42 million, to $16 million, dropping net income per share to 30-cents. Revenues were of 6 percent, or $66 million to $1.12 billion.
The combined ratio rose 1.4 points to 99.6.
The company also announced it will sell Selective HR Solutions Inc. to AlphaStaff Group, Inc., a Florida based human resources outsourcing company for approximately $13 million.
Mr. Murphy said the sale was made so the company could concentrate on "profitable organic growth in our 22 state footprint of insurance operations."
The company said it would pay a 13-cent per share quarterly cash dividend on Dec. 1 to shareholders of record as of Nov. 13.
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