View this article online: https://www.claimsjournal.com/news/east/2005/03/16/52624.htm
Safety Insurance Group, Inc. reported that net income for the 2004 was $45.0 million, or $2.90 per diluted share, compared to $28.5 million, or $1.86 per diluted share, for 2003.
Safety’s book value per share increased to $19.70 after paying $0.44 per share in dividends to investors during 2004, compared to $17.56 at December 31, 2003 after paying $0.34 per share in dividends during 2003.
Direct written premiums for the year increased by $56.8 million, or 9.9%, to $628.3 million from $571.5 million for 2003. The 2004 increase occurred primarily in the personal automobile line, which experienced a 6.1% increase in average written premium and a 3.5% increase in written exposures.
In addition, its commercial automobile line’s average written premium increased by 6.0% and had a 5.6% increase in written exposures, while our homeowners line’s average written premium increased by 8.3%, which was partly offset by a 1.7% decrease in written exposures.
Net written premiums for the year rose by $51.9 million, or 9.2%, to $618.9 million from $567.0 million for 2003. This was primarily due to the increase in direct written premiums.
Net earned premiums for the year jumped by $52.1 million, or 9.6%, to $592.3 million from $540.2 million for 2003. This was primarily due to the factors that increased direct written premiums, including increased premium rates on personal automobile, commercial automobile and homeowners product lines.
Investment income for the year was $27.2 million compared to $26.1 million for 2003.
Loss, expense and combined ratios for the year 2004 were 71.8%, 24.5% and 96.3% compared to 77.9%, 24.2% and 102.1% for 2003.
Regarding fourth quarter 2004 results, net income was $13.2 million, or $0.84 per diluted share, compared to $5.7 million, or $0.37 per diluted share, for the comparable 2003 period.
Direct written premiums for the fourth quarter increased by $12.7 million, or 10.7%, to $131.4 million from $118.7 million for the comparable 2003 period.
Net written premiums for the fourth quarter increased by $13.5 million, or 11.5%, to $130.4 million from $116.9 million for the comparable 2003 period.
Net earned premiums for the quarter ended December 31, 2004 increased by $13.2 million, or 9.5%, to $152.3 million from $139.1 million for the comparable 2003 period.
Investment income for the last quarter was $6.9 million compared to $6.4 million for the comparable 2003 period.
Loss, expense and combined ratios for the quarter ended December 31, 2004 were 68.8%, 25.2% and 94.0% compared to 78.4%, 23.0% and 101.4% for the comparable 2003 period.
The quarter and year ended December 31, 2004 combined ratios decreased by 7.4% and 5.8%, respectively, from the comparable 2003 periods primarily as a result of decreases in the loss ratios due to an increase in average written premium, a decrease in claim frequency in personal automobile, commercial automobile and homeowners lines of business and favorable loss development primarily due to an improvement in Commonwealth Automobile Reinsurers prior year results.
About Safety: Safety Insurance Group, Inc. is the parent of Safety Insurance Company and Safety Indemnity Insurance Company, which are Boston, Mass., based writers of property and casualty insurance. Safety is a leading writer of personal automobile insurance in Massachusetts.