Selective Insurance Group, headquartered in Branchville, N.J., reported $18.1 million net income for its 2012 first quarter, a 11.7-percent decrease compared to $20.5 million income reported during the prior-year quarter.
Total net premiums written were $420.2 million, up 16 percent compared to one year ago. Commercial lines net premiums written rose 18 percent to $354.6 million, including $25.8 million from excess and surplus lines. Personal lines net premiums written were up 7 percent to $65.6 million. Non-catastrophe property losses were $33.7 million, after tax, down 15 percent from $39.7 million one year ago.
The GAAP combined ratio improved to 100.4 percent, down from 103.6 percent one year ago. The statutory combined ratio was 99.1 percent, compared to 102.6 percent last year. Total revenue was $419.3 million, up from $403.5 million one year go.
Commercial lines price was up 5.1 percent for the quarter, with March generating a 6 percent increase. Commercial lines retention for the first quarter improved 3 points to 83 percent.
Personal lines operations continued to grow, due to filed rate increases that were effective for the quarter that averaged 5.9 percent, while retention improved 1 point from a year ago to 87 percent.
But the company was hurt by lower net investment income. It fell to $24.8 million, down 23 percent from one year ago. Additionally, favorable prior year statutory reserve development on casualty lines totaled $3 million, compared to $4 million last year.
“Overall, we are pleased with our first-quarter performance and the progress we continue to drive throughout the organization,” CEO Gregory E. Murphy said. “There is clear evidence of more rational commercial lines pricing, terms and conditions by almost all competitors who are now seeking increases on renewal business.”
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