Branchville, N.J.-based insurer Selective Insurance Group said today that fourth quarter 2006 net income rose 6 percent, despite competitive pressures.
In its fourth quarter, year-end wrap-up, the company also announced an increase in its stock dividend and a two-for-one stock split.
"Despite increased competitive pressures, our solid 5 percent growth in net premiums written [for the year] continued to outpace industry growth estimates," said Gregory E. Murphy, chairman, president and chief operating officer for Selective, in a statement.
Net income in the fourth quarter increased $3 million, from $41 million, or $1.30 a share, to $44 million, or $1.43 a share. Total revenues rose 6 percent, or $27 million, from $432 million to $459 million. However, net premiums written of $307 million were down $3 million from the same period last year.
The company reported a combined ratio of 99 percent deteriorating from 96.5 percent in the fourth quarter of 2005.
For the year, net income rose 10 percent, or $15 million, from $149 million, or $4.69 a share, to $164 million, or $5.30 a share. Revenues rose 8 percent, or $137 million, from $1.67 billion to $1.8 billion. Net premiums written rose from $1.46 billion to $1.54 billion for a $76 million increase.
The combined ratio for the year was 95.4 percent, up slightly from 94.6 percent in 2005.
Selective also said it would pay a quarterly cash dividend of 24 cents, a 9 percent increase, on March 1 to stockholders of record as of Feb. 13. The company also plans a two-for-one stock split on Feb. 20 to shareholders of record as of Feb. 13.
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