Selective Insurance Group, Inc. (Nasdaq: SIGI ) of Branchville, N.J.reported net income of $28.9 million, or $0.92 per diluted share, for the second quarter ended June 30, 2004, an increase of 46 percent, compared with $19.7 million, or $0.72 per diluted share, for the same period last year.
Operating income increased 64 percent, to $28.8 million for the second quarter, compared to $17.6 million for the second quarter 2003.
Net premiums written increased 14 percent to $349.3 million in the second quarter 2004 compared with the same period last year.
Selective’s GAAP combined ratio for the quarter improved more than five points to 95.7 percent, compared to 100.9 percent in the second quarter of 2003. For the same period, the statutory combined ratio improved to 95.0 percent, compared to 99.6 percent. Weather-related catastrophe losses accounted for 0.8 points of the statutory combined ratio for the quarter, or $1.7 million after-tax. There were no catastrophe losses in the second quarter of 2003.
According to Selective Chairman, President and CEO Gregory E. Murphy, “This was an excellent quarter for the company driven by ongoing improvements in both our commercial lines and personal lines operations. Our strategy to become the market of choice for our agents is producing more profitable business and increasing commercial lines market share throughout our 20-state footprint.”
For the quarter, commercial lines premiums, which represent 83 percent of the insurer’s business, were up 16 percent; commercial renewal pricing was up 9 percent; retention improved two points to 83 percent from year-end; and the commercial lines statutory combined ratio dropped almost four points, to 95.5 percent, compared to second quarter 2003.
Murphy also hailed the “significant improvement” in personal lines in thes second quarter. The statutory combined ratio, which includes the flood operation, fell 8.3 points, to 92.2 percent. The company’s New Jersey personal automobile business generated a statutory combined ratio of 93.3 percent for the quarter, down from 100.6 percent at this time last year.
Revenue for the second quarter 2004 increased 15 percent to $382.1 million.
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