Selective Insurance reported that new premiums declined for the second quarter while workers’ compensation results improved and its recent expansion into the commercial markets in Massachusetts and Tennessee is going well.
Selective’s second quarter 2008 results, compared to second quarter 2007 showed:
Net income was $28.7 million compared to $35.9 million;
Operating income was $27.4 million compared to $27.3 million.
Combined ratio: GAAP: 100.9% vs. 100.0 percent; statutory: 98.7 percent vs. 97.1 percent;
Total net premiums written were down 4 percent to $387.2 million:
Commercial lines net written premium were down 6 percent to $331.0 million;
Personal lines net written premiums were up 5 percent to $56.2 million;
Catastrophe losses were $8.7 million, after-tax, compared to $4.7 million, after-tax; and
Investment Income, after-tax, was $30.1 million, compared to
Selective Chairman, President and CEO Gregory E. Murphy said the second quarter performance “reflects the successful efforts of our agents and underwriters to retain our best accounts in an exceedingly competitive commercial lines marketplace.”
He also said Selective’s second quarter results were favorably impacted by a four point drop in the workers” compensation statutory combined ratio to 98.6 percent, compared to second quarter 2007.
Selective’s small business One & Done automated segment grew 10 percent and now produces approximately $275,000 per work day, according to Murphy.
Murphy said the insurer’s expansion into Massachusetts last year has already generated almost $7 million in commercial line premium in 2008. Selective added Tennessee as its 22nd state in June 2008. Through the first six months of 2008, it has made 64 targeted agency appointments, including 13 in Tennessee and Massachusetts, bringing its total agency count to about 920.
Personal lines written premiums grew and the statutory combined ratio improved more than nine points. Murphy said this progress reflects greater pricing accuracy from Selective’s new automated MATRIX system, targeted rate increases, and lower expenses due to the a restructuring in second quarter 2007. “Although much work remains to be done, we believe our personal lines strategic initiatives are beginning to gain traction that will favorably impact our long-term results,” he said.
Source: Selective Insurance
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