Selective Insurance Group, Inc.has reported its financial results for the second quarter ended June 30, 2006. Compared to the second quarter of 2005, the company said:
Net income increased 31%, to $42 million, or $1.36 per diluted share, reflecting after-tax net capital gains of $9.4 million, up from $0.4 million;
Operating income increased 6% to $32.6 million, or $1.06 per diluted share;
Combined ratios of: GAAP 96.5%, from 96.0%; Statutory 95.6%, from 94.9%;
Weather-related catastrophe losses of $5.0 million pre-tax, from $0.8 million pre-tax;
Investment income up 15%, after-tax, to $29.1 million;
Net premiums written (NPW) increased 7% to $395.6 million:
Commercial lines NPW increased 7% to $340.7 million;
Personal lines NPW increased 5% to $54.9 million; and
Total revenue up 11% to $455.5 million.
Standard & Poor’s (S&P) raised its financial strength rating of Selective Insurance Group, Inc., and its insurance company affiliates, to ‘A+’, from ‘A’, citing Selective’s “solid position as a regional insurer … strong operating performance, strong operating company capitalization, and good financial flexibility.”
In April, A.M. Best reaffirmed Selective’s ‘A+’ financial strength rating.
Gregory E. Murphy, chairman, president and CEO of Selective Insurance Group, Inc., expressed satisfaction with the second quarter results.
“We exceeded A.M. Best’s premium growth estimates for the industry and continued to record solid retention — a result of excellent agency relationships, our highly effective use of technology, and a consistent ability to successfully execute on our strategies,” he said.
He said the company has been able to set “aggressive business goals with our agents” and make new agency appointments in “underserved areas, while using enhanced business analytics to more precisely target profitable growth opportunities.”
Selective Insurance Group, Inc., based in Branchville, N.J., is a holding company for six property and casualty insurance companies offering primary and alternative market insurance, through independent agents, for commercial and personal risks, and flood insurance underwritten by the National Flood Insurance Program.
Other subsidiaries of the company provide claims, human resources and risk management services.
Source: Selective Insurance
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