Selective's Quarterly Income Up
By Mark E. Ruquet
NU Online News Service, Feb. 5, 11:26 a.m. EST?Selective Insurance Group Inc. reported income increased 91 percent for the fourth quarter of 2002 as net premium written increased 11 percent.
The Branchville, N.J.-based carrier said for the period ending Dec. 31, net income stood at $12.3 million, compared to $6.4 million for the final quarter of 2001, an increase of $5.9 million. Net premium for the period rose $22.5 million, going from $213.9 million in 2001 to $236.3 million in 2002. Earnings per share rose 21 cents from 25 cents in 2001 to 46 cents.
The carrier's combined ratio for the quarter was 103.4 percent. The combined ratio for the year dropped to 103.2 percent from 106.7 percent in 2001.
For the year, net income rose 63 percent, or $16.3 million, going from $25.7 million in 2001 to $42 million in 2002. Net premiums written increased 14 percent for the year, going from $925.4 million to $1.05 billion in 2002. Earnings per share increased 58 cents, going from 98 cents a share to $1.56.
Gregory E. Murphy, the company's chairman, president and chief executive officer, said in a statement, the company has narrowed losses in its personal lines business, including flood operations, to a combined ratio of 105 percent for the fourth quarter. This is down from 115.3 percent for the same period of 2001.
The results, he said, reflected improvements in the company's New Jersey homeowners and automobile insurance lines of business. He credited two years of price increases in auto for the improvement. Selective will get a 2.8 percent increase for auto in March.
New Jersey personal auto represents less than 12 percent of the company's business, he added.
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