Latest News

Selective Insurance Group fiscal results ended Dec 31, 2012

Selective Insurance Group fiscal results ended Dec 31, 2012 : Selective Insurance Group, Inc. (NASDAQ:SIGI) today reported its fiscal results for the quaternary quarter as well as yr ended Dec 31, 2012.  For the quarter, internet income per diluted part was $0.02 as well as operating loss1 was $0.04.  Net income for the yr was $0.68 per diluted part as well as operating income1 was $0.58 per diluted share.  Overall internet premiums written grew 5% inward the quarter as well as retentiveness was upwards a indicate to 85%.


“Hurricane Sandy was the almost pregnant trial inward fellowship history, yet nosotros nonetheless ended the quarter alongside positive internet income – a testament to our strong underlying insurance operations performance as well as our comprehensive reinsurance program,” said Chairman, President as well as Chief Executive Officer Gregory E. Murphy.  “For the quarter, Sandy resulted inward internet catastrophe losses of $47 meg as well as a reinsurance reinstatement premium of $9 million; partially commencement past times overflowing claims treatment fees of $16 million; resulting inward an overall, pre-tax, internet loss of $40 meg as well as $0.46 per diluted part afterwards tax.  Sandy contributed 9.8 points to the combined ratio for the quarter, but alone 2.5 points to the year, yielding an overall quaternary quarter statutory combined ratio of 110.4%, excluding the impact from Sandy2 it was 100.6%.

“The hurricane made landfall inward our altitude marketplace part solid reason of New Jersey,” said Murphy.  “Our Claims as well as Flood departments direct hold been working tirelessly to resolve claims rapidly as well as fairly, as well as to inform overflowing customers of the federally mandated National Flood Insurance Program’s claims process.  Personal lines received or as well as then 8,000 claims as well as direct hold closed 85% as well as commercial lines received or as well as then 5,000 claims as well as direct hold closed 62%.

“We were pleased alongside our overall performance inward the quarter, delivering a statutory combined ratio of 100.6%, excluding the impact of Sandy2.  Personal lines led the positive results alongside a combined ratio of 93.9%, excluding Sandy2, as well as renewal cost that increased 8.3% for the quarter.  In personal lines, nosotros proceed to file charge per unit of measurement increases also equally better the mix of describe concern as well as expand the release of way storefronts,” said Murphy.

“For the quarter, touchstone commercial lines had a combined ratio of 101.1%, excluding Sandy2,” continued Murphy.  “We completed our 15th consecutive quarter of cost increases alongside touchstone commercial lines renewal cost upwards 6.7%, as well as 6.2% for the year.  Our granular pricing strategy as well as sophisticated underwriting, also equally our strong way relationships, has given us an border over the past times several years that continues to pay off inward strong results.

“Investment income for the quarter was $26 million, afterwards tax, compared to $23 meg inward the quaternary quarter 2011, due to improved performance inward the choice investment portfolio.  For the year, investment income, afterwards tax, was $100 million.  We proceed to larn by our investment income through a rattling depression involvement charge per unit of measurement surroundings without unduly adding to a greater extent than credit or duration risk,” concluded Murphy.

Fourth Quarter Highlights 2012 Compared to Fourth Quarter 2011

    Net income of $1.3 million, or $0.02 per diluted share, compared to $18.0 million, or $0.33 inward 2011
    Operating loss1 of $2.3 million, or $0.04 per diluted share, compared to operating income1 of $20.4 million, or $0.37 inward 2011
    Combined ratio: GAAP: 109.0% compared to 97.9% inward 2011; Statutory: 110.4% compared to 98.7% inward 2011
    Combined ratio excluding the impact of Hurricane Sandy2: GAAP 99.3%; Statutory 100.6%
    Favorable prior yr statutory reserve evolution on our casualty lines totaled $2 meg compared to $10 meg inward 2011
    Total internet premiums written (NPW) were $370.6 million, which were reduced past times the reinstatement premium related to Hurricane Sandy of $8.6 million
        Standard Commercial Lines NPW were $273.2 million
        Standard Personal Lines NPW were $68.1 million
        Excess as well as Surplus Lines NPW were $29.4 million
    Catastrophe losses were $33.8 million, afterwards tax, including $30.3 meg for Hurricane Sandy
    Gross pre-tax catastrophe losses from Hurricane Sandy were $136 million
    Flood internet income of $12.0 million, afterwards tax, including $10.1 meg for Hurricane Sandy
    Investment income, afterwards tax, was $26.3 million
    Net realized gains, afterwards tax, totaled $3.6 million

Year-End Highlights for 2012 Compared to Year-End 2011
  •     Net income was $38.0 million, or $0.68 per diluted share, compared to $22.0 million, or $0.40 inward 2011
  •     Operating income1 was $32.1 million, or $0.58 per diluted share, compared to $21.2 million, or $0.38 inward 2011
  •     Combined ratio: GAAP: 104.0% compared to 107.2% inward 2011; Statutory: 103.5% compared to 106.7% inward 2011
  •     Combined ratio excluding the impact of Hurricane Sandy2: GAAP 101.5%; Statutory 101.0%
  •     Favorable prior yr statutory reserve evolution on our casualty lines totaled $17 meg compared to $29 meg inward 2011
  •     Total NPW were $1,666.9 million, which were reduced past times the reinstatement premium related to Hurricane Sandy of $8.6 million
  •         Standard Commercial Lines NPW were $1,263.7 million
  •         Standard Personal Lines NPW were $289.9 million
  •         Excess as well as Surplus Lines NPW were $113.3 million
  •     Catastrophe losses were $64.1 million, afterwards tax, including $30.3 meg for Hurricane Sandy
  •     Flood internet income of $19.1 million, afterwards tax, including $10.1 meg for Hurricane Sandy
  •     Investment income, afterwards tax, was $100.3 million
  •     Net realized gains, afterwards tax, totaled $5.8 meg for the year

Balance Sheet as well as Guidance
At Dec 31, 2012, Selective’s assets were $6.8 billion, upwards 20% over prior yr primarily due to reinsurance recoverables of $1.4 billion, compared alongside $0.6 billion inward 2011, as well as $4.3 billion inward the company’s investment portfolio, which increased 5% compared to Dec 31, 2011.

Stockholders’ equity was upwards 3% for the yr to $1.1 billion as well as majority value per part increased 2% to $19.77.  Statutory surplus was downwards 1% inward 2012 to $1.1 billion.

Selective’s Board of Directors declared a $0.13 per part quarterly cash dividend on mutual stock payable March 1, 2013 to stockholders of tape equally of Feb 15, 2013.

Selective expects to generate a 2013 total yr statutory combined ratio, excluding catastrophes, of 96.0%.  We currently gauge catastrophe losses volition add together iii points to that ratio.  In addition, investment income volition endure downwards slightly to $90-$95 million.  Anticipated weighted average shares at yr terminate 2013 of 56 million.

The supplemental investor packet, including fiscal information that is non business office of this press release, is available on the Investor Relations’ page of Selective’s world website at www.selective.com.  Selective’s quarterly analyst conference telephone telephone volition endure simulcast at 8:30 a.m. ET, on Feb 1, 2013 at www.selective.com.  The webcast volition endure available for rebroadcast until the unopen of describe concern on March 1, 2013.

About Selective Insurance Group, Inc.
Selective Insurance Group, Inc. is a holding fellowship for 10 belongings as well as casualty insurance companies rated “A” (Excellent) past times A.M. Best.  Through independent agents, the insurance companies offering primary as well as choice marketplace insurance for commercial as well as personal risks, as well as overflowing insurance underwritten past times the National Flood Insurance Program.  Selective maintains a website at www.selective.com.

Forward-Looking Statements
In this press release, Selective as well as its administration hash out as well as brand statements based on currently available information regarding their intentions, beliefs, electrical flow expectations as well as projections regarding Selective’s futurity operations as well as performance.

Certain statements inward this report, including information incorporated past times reference, are “forward-looking statements” equally that term is defined inward the Private Securities Litigation Reform Act of 1995 (“PSLRA”).  The PSLRA provides a rubber harbor nether the Securities Act of 1933 as well as the Securities Exchange Act of 1934 for forward-looking statements.  These statements relate to our intentions, beliefs, projections, estimations or forecasts of futurity events or our futurity fiscal performance as well as involve known as well as unknown risks, uncertainties as well as other factors that may drive our or our industry’s actual results, levels of activity, or performance to endure materially dissimilar from those expressed or implied past times the forward-looking statements.  In some cases, you lot tin lav position forward-looking statements past times purpose of words such equally “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely” or “continue” or other comparable terminology.  These statements are alone predictions, as well as nosotros tin lav give no assurance that such expectations volition bear witness to endure correct.  We undertake no obligation, other than equally may endure required nether the federal securities laws, to publicly update or revise whatever forward-looking statements, whether equally a consequence of novel information, futurity events or otherwise.

Factors that could drive our actual results to differ materially from those projected, forecasted or estimated past times us inward forward-looking statements, include, but are non limited to:
  •     hard conditions inward global working capital missive of the alphabet markets as well as the economy;
  •     deterioration inward the world debt as well as equity markets as well as individual investment marketplace that could Pb to investment losses as well as fluctuations inward involvement rates;
  •     ratings downgrades could deport upon investment values as well as thus statutory surplus;
  •     the adequacy of our loss reserves as well as loss expense reserves;
  •     the frequency as well as severity of natural as well as man-made catastrophic events, including, but non limited to, hurricanes, tornadoes, windstorms, earthquakes, hail, terrorism, explosions, severe wintertime weather, floods as well as fires;
  •     adverse market, governmental, regulatory, legal or judicial conditions or actions;
  •     the concentration of our describe concern inward the Eastern Region;
  •     the cost as well as availability of reinsurance;
  •     our powerfulness to collect on reinsurance as well as the solvency of our reinsurers;
  •     uncertainties related to insurance premium charge per unit of measurement increases as well as describe concern retention;
  •     changes inward insurance regulations that impact our powerfulness to write and/or cease writing insurance policies inward i or to a greater extent than states, peculiarly changes inward New Bailiwick of Jersey car insurance laws as well as regulations;
  •     recent federal fiscal regulatory reform provisions that could pose for certain risks to our operations;
  •     our powerfulness to keep favorable ratings from rating agencies, including A.M. Best, Standard & Poor’s, Moody’s as well as Fitch;
  •     our entry into novel markets as well as businesses; and
  •     other risks as well as uncertainties nosotros position inward filings alongside the U.S. of America Securities as well as Exchange Commission, including, but non limited to, our Annual Report on Form 10-K as well as other periodic reports.

These gamble factors may non endure exhaustive.  We operate inward a continually changing describe concern environment, as well as novel gamble factors emerge from time-to-time.  We tin lav neither predict such novel gamble factors nor tin lav nosotros assess the impact, if any, of such novel gamble factors on our businesses or the extent to which whatever element or combination of factors may drive actual results to differ materially from those expressed or implied inward whatever forward-looking statements inward this report.  In low-cal of these risks, uncertainties as well as assumptions, the forward-looking events discussed inward this study mightiness non occur.

Selective’s SEC filings tin lav endure accessed through the Investor Relations’ subdivision of Selective’s website, www.selective.com, or through the SEC’s EDGAR Database at www.sec.gov (Selective EDGAR CIK No. 0000230557).

1 Operating income differs from internet income past times the exclusion of realized gains or losses on investments as well as the results of discontinued operations. It is used equally an of import fiscal stair out past times management, analysts as well as investors, because the realization of investment gains as well as losses on sales inward whatever given menstruation is largely discretionary equally to timing. In addition, these investment gains as well as losses, also equally other-than-temporary investment impairments that are charged to earnings as well as the results of discontinued operations, could distort the analysis of trends. Operating income is non intended equally a substitute for internet income prepared inward accordance alongside U.S. mostly accepted accounting principles (GAAP). Influenza A virus subtype H5N1 reconciliation of operating income to internet income is provided inward the GAAP Highlights as well as Reconciliation of Non-GAAP Measures to Comparable GAAP Measures. Statutory information is prepared inward accordance alongside statutory accounting rules equally defined past times the National Association of Insurance Commissioners Accounting Practices as well as Procedures Manual and, therefore, is non reconciled to GAAP.

2 The Hurricane Sandy impact includes catastrophe losses, reinstatement premium on the catastrophe reinsurance programme as well as the overflowing claims treatment fees generated equally a consequence of Hurricane Sandy.

0 Response to "Selective Insurance Group fiscal results ended Dec 31, 2012"