The fourth quarter's combined ratio improved 1.8 percentage points, going from 103.4 to 101.6, the company said.

For the year, net income more than doubled by 58 percent or $24.4 million, increasing from $42 million, or $1.56 a share, to $66 million, or $2.40 a share. Revenues rose 15 percent, or $177.2 million, going from $1.2 billion in 2002 to $1.4 billion. Net written premium rose 16 percent, or $166 million, from $1.05 billion to $1.22 billion.

The combined ratio for the year dropped 1.7 percentage points, from 103.2 to 101.5.

Increases in premiums on the commercial side outpaced loss trends, the company said, and its personal lines business, which includes flood insurance, saw a reduction in its combined ratio from 105 to 101.8 percent for the quarter. The New Jersey automobile insurance business combined ratio stood below 100 for both the quarter and the year.

Gregory E. Murphy, chairman, president and chief executive officer of the Branchville, N.J.-based carrier, in an e-mail said his company's field people "are the best in the business. Our technology makes it easier and more efficient to do business with us. Selective's high-tech, high-touch strategy accelerated our performance throughout 2003, driven, in part, by continued strong pricing and ongoing underwriting improvements across our operation."