Selective Insurance Group in Branchville, New Jersey, reported $41.35 million net income for the 2014 fourth quarter, a 63 percent increase from $25.34 million net income during the 2013 fourth quarter.
The GAAP combined ratio for the fourth quarter was 91.8 percent, improving from 97.3 percent during the prior year fourth quarter.
Total net premiums written (NPW) were $433.6 million, a 7 percent increase from $405.1 million a year ago. Standard Commercial Lines NPW were $321.4 million, a 7 percent increase from $300.5 million a year ago. Standard Personal Lines NPW were $67.5 million, a 3 percent decrease from $69.6 million a year ago. Excess and Surplus Lines NPW were $44.7 million, a 28 percent increase from $35.0 million a year ago.
Favorable prior year statutory reserve development on casualty lines, pre-tax, totaled $9.0 million for the quarter, compared to $7.5 million a year ago.
Net investment income, after tax, was $24.5 million, a 7 percent decrease from $26.4 million a year ago.
Selective Insurance Group’s Chairman and CEO Gregory E.Murphy said all three insurance segments posted solid statutory combined ratios, with standard Commercial
Lines, which represents 76 percent of the company’s total premium, generating a statutory combined ratio of 96 percent. He noted higher standard Commercial Lines renewal pure pricing that was up 4.7 percent for the fourth quarter as well as the retention increasing 2 points to 84 percent in the standard Commercial Lines.
In the standard Personal Lines, the company said net premiums written were down 3 percent mainly due to the ongoing strategic non-renewal of dwelling fire business and a reduction in writing monoline homeowners, partially offset by renewal pure price increases of 6.7 percent.
Murphy also said the Excess and Surplus Lines had a very strong quarter with net premiums written up 28 percent due to a 38 percent increase in new business.”We have seen a significant increase in our retail agents sending their business to our general agents after heavy promotion of the line at our annual road shows,” said Murphy.
For the full-year 2014, net income was $141.8 million, a 33 percent increase from $106.4 million a year ago.
The GAAP combined ratio was 95.8 percent for full-year 2014, improving from 97.8 percent during 2013.
Total NPW for full-year 2014 were $1.885 billion, a 4 percent increase from $1.810 billion for 2013. Standard Commercial Lines NPW were $1.441 billion, a 4 percent increase from 2013. Standard Personal Lines NPW were $292.1 million, a 2 percent decrease from 2013. Excess and Surplus Lines NPW were $152.2 million, a 16 percent increase.
Favorable prior year statutory reserve development on casualty lines, pre-tax, totaled $48.5 million for 2014, compared to $14.5 million in 2013.
Net investment income, after tax, was $104.2 million for full-year 21014, compared to $101.4 million in 2013.
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