New Jersey-based Selective Insurance Group, Inc. today reported its financial results for the third quarter ended Sept. 30, 2008 that included a profit despite storm claims and a drop in investment income.
Selective Chairman, President and CEO Gregory E. Murphy stated, “Our conservative investment philosophy and continued focus on long-term strategies, including expense management, enabled us to maintain profitability during an extremely challenging time for our industry and the economy.
Selective’s third quarter 2008 highlights, compared to third quarter 2007:
Net income was $9.0 million compared to $37.1 million.
Net realized losses on investments were $14.7 million, after-tax, compared to a gain of $1.8 million.
Operating income was $23.7 million compared to $35.3 million.
The combined ratio: GAAP: 101.5 percent vs. 98.6 percent; Statutory: 97.6 percent vs. 96.2 percent
Net premiums written were down 2 percent to $400.5 million:
Commercial lines net premiums written were down 3 percent to $344.3 million.
Personal lines net premiums writte were up 4 percent to $56.2 million.
Catastrophe losses were $8.3 million, after-tax, vs. $1.2 million, after-tax; and
Investment Income, after-tax, decreased 15 percent to $28.5 million.
Murphy said that although catastrophe losses from Hurricane Ike in the Midwest were somewhat higher than expected, all three major casualty lines of business were profitable.
“We are closely monitoring the pricing environment and already beginning to selectively use our advanced business analytics to drive pricing for targeted accounts,” Murphy said.
Regarding investments and current financial markets, Murphy said that while his company is “not immune from the extraordinary volatility” in financial markets these days, he believes it is well positioned to given its strong cash position, laddered maturity schedule in its investment portfolio, a conservative reinsurance program, and access to a line of credit through its holding company.
Source: Selective Insurance
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