Selective Insurance Group, Inc.
) fourth-quarter 2013 earnings of 45 cents a share, bounced back
from an operating loss of 4 cents a share in the prior-year
quarter. The result also surpassed the Zacks Consensus Estimate
of 41 cents by 9.8%.
Including the effect of capital losses, Selective Insurance Group
reported net income of 44 cents a share that surged from 2 cents
per share reported in the prior year quarter.
Bottom-line growth of this property and casualty insurer was
primarily driven by strong results across all its operations.
Selective Insurance Group reported total revenue of $488 million,
surpassing the Zacks Consensus Estimate of $483 million
marginally by 1% in the reported quarter. Also, the results
increased 8.7% year over year. Top-line growth was driven by
higher net premiums earned and net investment income, which was
partially offset by net realized losses as against net realized
gains witnessed in the prior-year quarter.
Total net premiums written for the company increased 9.3% to
$405.1 million in the fourth quarter. This improvement was driven
by written premium increases in Standard Commercial lines (10%),
Standard Personal lines (4%) and also in Excess and Surplus lines
Selective Insurance Group also witnessed improved statutory
combined ratio during the quarter. It reduced 1080 basis points
(bps) year over year to 99.6% mainly due to decreased property
losses and consolidated underwriting actions in Excess and
Full Year 2013 Highlights
Selective Insurance Group reported operating net earnings of
$1.65 per share for full year 2013 that surged significantly from
the 2012 operating net income of 58 cents a share.
Including the effect of capital gains and loss on discontinued
operations, the company reported net earnings per share of $1.87
a share that also jumped substantially higher than the 2012
Total revenue for 2013 grossed $1.90 billion, up 9.8% from the
2012 figure. The hike was driven by higher net premiums earned,
net investment income as well as higher net realized gains.
Statutory combined ratio improved 600 bps from 2012-level to
97.5% during 2013.
Total assets of Selective Insurance Group as of the end of 2013
stood at $6.3 billion, down from $6.8 billion as of 2012-end.
Investment portfolio at 2013 end was $4.6 billion, up from $4.3
billion as of Dec 31, 2012.
Statutory surplus of the company moved up 20% from 2012-end to
$1.3 billion on Dec 31, 2013.
Selective Insurance Group expects its 2014-full year statutory
combined ratio (excluding catastrophe losses) to be 92%.
The company expects its January catastrophe losses to range
between $28 million and $32 million. This is expected to result
from the extreme cold weather in all 22 locations of Selective
Insurance Group which was caused by polar vortex during the
Selective Insurance Group presently carries a Zacks Rank #3
(Hold). Other better-ranked property and casualty insurers
Aspen Insurance Holdings Ltd.
Platinum Underwriters Holdings Ltd.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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