Safty Insurance Group, Inc.
) reported fourth-quarter 2013 net earnings of 76 cents per
share. The number improved 22.6% year over year as a solid
revenue performance made up for the cost increase.
Net written premiums of Safty Insurance totaled $151.3 million,
increasing 3.7% from the prior-year quarter. The improvement was
owing to higher direct written premiums in Safty Insurance's
homeowners and commercial automobile business lines.
Total revenue grossed $191.8 million during the quarter, up 5.8%
year over year. The top line improved on the back of higher net
earned premiums as well as higher net investment income. Net
premiums earned increased 5% year over year to $173.6 million
while net investment income moved up 25.2% to $12.9 million
during the quarter. Net investment income augmented on account of
diversified investments into equity securities.
Safty Insurance's total expenses rose 3.6% year over year to
$174.7 million. The rise in expenses was attributable to higher
losses and loss adjustment expenses and increased underwriting,
operating and related expenses.
Combined ratio of Safty Insurance improved 140 basis points year
over year to 100.6% at the end of the fourth quarter.
Full-Year 2013 Highlights
Safty Insurance's full-year 2013 net earnings came in at $3.98
per share, up 4.7% from the 2012 number. The result improved on
the back of increased revenues of the company.
Revenues of Safty Insurance totaled $745.3 million, increasing
5.9% year over year on higher net earned premiums and net
Safty Insurance's cash balance stood at $55.9 million at the end
of 2013 compared with $35.4 million as of 2012-end.
Total assets was $1.62 billion at the end of 2013, comparing
favorably with $1.57 billion as of 2012-end.
Total shareholder's equity of Safty Insurance was $695.2 million
compared with $694.4 million as of Dec 31, 2012.
During 2013, Safty Insurance paid annualized dividend of $2.40
per share, up from $2.20 per share paid in 2012. Additionally, in
Feb 2014, Safty Insurance declared first-quarter 2014 quarterly
dividend of 60 cents a share, which will be paid on Mar 14, 2014
to shareholders of the record as of Mar 3.
Some other stocks worth considering in the property and casualty
insurance industry include
Navigators Group Inc.
Fidelity National Financial, Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
FIDELITY NAT FI (FNF): Free Stock Analysis
NAVIGATORS GRP (NAVG): Free Stock Analysis
ALLEGHANY CORP (Y): Free Stock Analysis
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