Harleysville Group Inc. today reported its eleventh straight quarter of double-digit growth in operating income in the third quarter.
The insurer recorded a 20 percent increase in operating income of $0.83 per share for the third quarter of 2007, compared to $0.69 per share in the third quarter of 2006.
For the nine-month periods, the company reported diluted operating income of $2.34 per share in 2007 and $1.94 per share in 2006.
It also reported that its combined ratio improved by 2.6 points to 95.9 percent. GAAP operating return on equity also grew to 14.0 percent.
Michael L. Browne, Harleysville Group’s president and chief executive officer, said its predictive modeling put the company in a strong competitive position. “A disciplined approach to underwriting is critically important, and predictive modeling provides us with a powerful tool to compete effectively for the quality business opportunities our agents bring to us,” he commented.
Third quarter net written premiums were $208.2 million in 2007, compared to $207.3 million in the same period in 2006. Net written premiums through nine months were $634.4 million in 2007 and $635.2 million in 2006.
Harleysville Group’s overall statutory combined ratio was 95.9 percent in the third quarter of 2007, compared to 98.5 percent in the third quarter of 2006. For the nine months, the statutory combined ratio was 96.7 percent in 2007, versus 98.8 percent in 2006.
Commercial lines — Net written premiums in commercial lines were $168.7 million in the third quarter of 2007, which is unchanged from the same period in 2006. For the nine months, net written premiums also were virtually unchanged at $524.5 million. The commercial lines statutory combined ratio was 97.2 percent in the third quarter of 2007, versus 99.5 percent in the third quarter of 2006. For the nine months, the statutory combined ratio was 97.5 percent in 2007, compared to 100.4 percent in 2006.
Personal lines — Net written premiums in personal lines increased by 2 percent to $39.5 million in the third quarter of 2007. For the nine months, net written premiums rose by 1 percent to $109.9 million. Harleysville Group’s personal lines statutory combined ratio was 89.6 percent in the third quarter of 2007, versus 93.6 percent during the third quarter of 2006. For the nine months, the statutory combined ratio was 93.2 percent in 2007, compared to 91.2 percent in 2006.
Source: Harleysville
www.harleysvillegroup.com
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