Selective Insurance Group Inc. reports strong second-quarter results that executives say have surpassed projections and are the result of improved pricing and underwriting.
Chief Financial Officer Dale A. Thatcher said the Q2 earnings for the Branchville, N.J.-based insurer "exceeded our expectations"—a phrase he used repeatedly throughout a conference call today with financial analysts.
Selective says its Q2 net income leaped $26.8 million year-over-year to more than $27 million. Revenues grew 9 percent to $469 million on net written premium of $462 million, which also increased 9 percent. The combined ratio fell 8 points to 98.9 thanks to catastrophe losses of $20 million—$10 million less than in the same period last year.
For the first six months of this year, net income jumped $30 million to $48 million as revenues increased close to 10 percent to $929 million. The combined ratio dropped 5.7 points to 98.
CEO Gregory E. Murphy says that despite commentary in the industry of "pure rate increases losing momentum," Selective sees nothing that would modify its plans to achieve rate increases of 5-8 percent into next year on renewal business. He points to the company's standard-lines retention of 84 percent as an indication of market stability.
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