NU Online News Service, Feb. 16, 2:04 p.m. EST
Selective Insurance Group Inc. reported the Branchville, N.J.-based insurer had 2009 fourth-quarter net income of $21 million, or 38 cents a share, compared to a net loss of $14 million, or negative 28 cents a share, for 2008.
Reporting results on Feb. 3 Gregory E. Murphy, chairman, president and chief executive officer for Selective, called the company's underwriting performance "solid" and said that most of its success was achieved in both its personal and commercial lines renewal pricing.
While total revenues in the quarter grew 9 percent, or $33 million, to $390 million, net premiums written were down 1 percent, $4 million, to $305 million.
The company reported a fourth-quarter combined ratio of 100.2 compared to 100.4 for the same period in 2008.
For the year, net income stood at $36 million, down 17 percent, or $7 million. Net income per share dropped from 82 cents a share in 2008 to 68 cents.
Total revenues increased for the year by 5 percent, or $76 million, to $1.51 billion, while net premiums were down 5 percent, or $70 million, to $1.42 billion. The combined ratio improved to 99.8 compared with 100 in 2008.
Mr. Murphy said the net premium decline was due to return audit and endorsement premium of $73 million.
"For the most part, the return premium reflected reduced exposure on currently active customers due to the poor economic conditions," he said in a statement.
"Overall, commercial lines new business premium was flat at $266 million and total policy count increased 3 percent. In personal lines, new business was up 27 percent to $55 million, and we increased our total policy count by 11 percent.
"We took several steps to reduce the risk in our investment portfolio this year," he continued. "In addition to risk reductions, we had steady income improvements from our alternative investment portfolio as equity and credit markets improved in the latter half of the year."
The company also declared a 13 cent per share quarterly cash dividend payable on March 1 to stockholders of record as of Feb. 12.
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