Boston-based Safety Insurance Group, Inc. reported that net income for the quarter ended March 31, 2008 was $19.0 million compared to $24.6 million last year.
Direct written premiums for the quarter decreased by $13.2 million, or 7.3%, to $168.3 million from $181.5 million for the comparable 2007 period.
The company said the 2008 decrease occurred primarily in personal and commercial automobile lines, which experienced decreases in average written premium per exposure of 8.3% and 1.3%, respectively.
Safety said the decrease in the personal automobile line was due largely to the state mandated rate decrease of 11.7% effective April 1, 2007. Partially offsetting these decreases was an increase in average written premium per exposure in the homeowners line of 1.2%.
Net written premiums for the quarter decreased by $9.7 million, or 5.6%, to $164.2 million from $173.9 million for the comparable 2007 period.
Net investment income for the quarter was $11.5 million compared to $11.0 million for the comparable 2007 period.
Loss, expense and combined ratios for the quarter were 63.6%, 29.5% and 93.1% compared to 60.3%, 26.5% and 86.8% for the comparable 2007 period.
The insurer said its loss ratio for the quarter increased primarily as a result of a decrease in personal automobile earned premiums per exposure. Total prior year favorable development included in the pre-tax results for the quarter ended March 31, 2008 was $9.2 million compared to prior year favorable development of $9.4 million for the comparable 2007 period.
Safety Insurance Group, Inc. is the parent of Safety Insurance Co., Safety Indemnity Insurance Co., and Safety Property and Casualty Insurance Co. which are Boston, Mass., based writers of property and casualty insurance. Safety is a leading writer of personal automobile insurance in Massachusetts.
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