Selective Insurance Group in Branchville, New Jersey, reported $47.0 million net income for its 2015 third quarter, down 12 percent from $53.2 million net income reported a year earlier.
The third-quarter operating income, which excludes realized gains and losses on investments, improved to $46.8 million, up 8 percent from $43.3 million a year earlier.
Selective Insurance said its GAAP combined ratio for the third quarter was 91.2 percent, improving from 92.6 percent a year earlier. Net premiums written for the quarter were $545.0 million, up 10 percent from $495.1 million a year ago.
Net investment income earned for the quarter was $32.1 million, down 7 percent from $34.3 million a year earlier. Net realized gains, net of tax, for the quarter were $0.2 million, down from $9.9 million during the prior-year quarter. Last year’s net realized gains were primarily related to the sale of equity securities due to the rebalancing of high dividend yield strategy holdings within the equity portfolio, the company said.
Standard Commercial Lines net premiums written were $414.0 million for the third quarter, up 10 percent from a year ago, driven by an 18 percent increase in new business to $84 million, renewal pure price increases of 2.8 percent, and an 84 percent retention, the company reported. The quarter’s GAAP combined ratio was 88.7 percent, improving from 92.1 percent a year earlier.
Standard Personal Lines net premiums written were $76.9 million for the third quarter, a 3 percent decrease compared to a year ago, largely driven by targeted non-renewals of less profitable accounts coupled with a decrease in new business, the company reported. Retention improved by two points to 83 percent and renewal pure price was 5.4 percent. The GAAP combined ratio for the quarter was 96.1 percent, compared to 89.2 percent during the prior-year quarter.
The Excess and Surplus lines business reported $54.1 million in net premiums written for the quarter, a 36 percent increase from a year earlier. The GAAP combined ratio was 104.4 percent, compared to 103.8 percent a year earlier.
“The strong third quarter and year-to-date results reflect the successful execution of our strategies to achieve rate increases that outpace the industry, to improve underwriting mix and to enhance claim outcomes,” said Selective Insurance Chairman and CEO Gregory E. Murphy.
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