For release at 4:15 p.m. (ET) on January 30, 2014
Investor Contact: Jennifer DiBerardino
Media Contact: Gail Petersen
Selective Insurance Group Reports
Fourth Quarter and Year-end 2013 Earnings
Branchville, NJ – January 30, 2014 – Selective Insurance Group, Inc. (NASDAQ: SIGI) today reported its financial results for the fourth quarter and year ended December 31, 2013. For the quarter, net income per diluted share was $0.44, compared to $0.02 in 2012, and operating income1 per diluted share was $0.45, compared to a loss of $0.04 in 2012.
“The fourth quarter was a solid end to a very strong year,” said Gregory E. Murphy, Chairman and Chief Executive Officer. “We met or exceeded our primary operational and financial targets for the year including our overall GAAP combined ratio, which was a profitable 97.8%; net premiums written grew 9% to $1,810.2 million; net investment income, after tax, increased 1% to $101 million; and operating income1 per diluted share increased 184% to $1.65.
“All of our operations made great progress towards our 2014 goals. For the year, standard lines renewal pure price increased 7.6% and excess and surplus lines were up 6.5%,” said Murphy.
“We achieved standard commercial lines renewal pure price increases of 7.5%, marking our 19th consecutive quarter of increases,” said Murphy. “With the current low investment yields, less favorable industry reserve development and expectations for a return to higher catastrophe losses, we see no compelling scenario to justify a softening of commercial lines rates, which many in the industry are predicting. To achieve a 12% return on equity, the industry must get to a statutory combined ratio of approximately 90%.
“Our standard commercial lines net premiums written were up 10% in the quarter, driven by continued price increases and strong retention of 82%,” continued Murphy. “The statutory combined ratio was 100.2% due to reduced property losses, down from 110.7% in the same period last year which included the impacts of Hurricane Sandy.
“Standard personal lines statutory net premiums written grew 4% in the quarter and the combined ratio was 94.9%. Renewal pure price increased 7.2% and retention remained