Selective Insurance Group, Inc. (Nasdaq:SIGI), today reported its financial results for the third quarter ended September 30, 2009. Net income for the quarter was $0.24 per diluted share and operating income(i) for the quarter was $0.44 per diluted share. Book value was up 4% for the quarter to $18.58 per share. Net investment income, after tax, was $28.4 million, compared to $28.5 million a year ago.
"I am pleased with our third quarter results given the difficult economy and competitive marketplace. The recovery in the financial markets has led to a gain in our alternative investments this quarter," said Selective Chairman, President and CEO Gregory E. Murphy. "We are seeing improvement in our personal lines and continue to drive Commercial Lines renewal pure price increases, which were up 1.5% for the quarter; a strong increase over the second quarter result of 0.6%. Our statutory combined ratio remains strong at 99.8% due in part to very profitable property results coupled with favorable casualty loss development of approximately $8 million." Selective's third quarter 2009 highlights, compared to third quarter 2008:
Free Hot Penny Stocks, an online financial publication, provides investors timely stock market alerts. Free hot penny stocks profiles stock picks that could generate higher returns than average. These penny stocks include stocks with news, chart breakouts or increased volume.
Sign Up Today for our Penny Stock Newsletter
Selective also announced that it has entered into an agreement to sell Selective HR Solutions, Inc. which comprises the HR Outsourcing segment, for approximately $13 million to AlphaStaff Group, Inc., a Florida-based human resources outsourcing company. The transaction is subject to Florida regulatory approval and is expected to close on or around January 1, 2010. In connection with the discontinued operation, a goodwill impairment charge of $7.9 million, after tax, was recorded.
"While we strongly believe HR outsourcing services are a natural complement to our distribution force and business model, we felt it made sense at this time to find a quality partner who could focus on those efforts, while we devote all our resources to profitable organic growth in our 22-state footprint of insurance operations," said Murphy. "We built a strong foundation for Selective HR, and Selective will continue to support AlphaStaff's business growth through our agency plant as part of the agreement. Our mutual commitment to the independent insurance agency and their growth strategy fit well together."
Selective's Insurance Board’s alternative investment portfolio experienced a gain during the third quarter of 2009 of approximately $1.7 million, after tax, compared to a gain of $2.1 million, after tax, during the same period in 2008. Results for these investments are generally received on a one quarter lag.
The Selective Board declared a $0.13 per share quarterly cash dividend on Selective's common stock, payable December 1, 2009 to stockholders of record as of November 13, 2009.
Selective Insurance Group, Inc. is a holding company for seven property and casualty insurance companies rated "A+" (Superior) by A.M. Best. Through independent agents, the insurance companies offer primary and alternative market insurance for commercial and personal risks, and flood insurance underwritten by the National Flood Insurance Program. Other subsidiaries of the company provide human resource administration outsourcing.
Sign Up for Free Hot Penny Stocks’ FREE Penny Stock Newsletter.
About Us
Free Hot Penny Stocks is a financial website and independent electronic publication that provides information and free penny stock alerts on selected publicly traded companies. We also track small cap companies and other stocks that may be positioned to break out. These penny stocks might have news, increased volume or chart breakouts. These penny stocks that are alerted could generate greater than average returns. Feel free to visit our penny stock forum to discuss other penny stock picks or penny stocks that you might own.
Free Hot Penny Stocks is not a registered investment advisor or broker-dealer. Please do your own Due Diligence before investing in any of the stocks mentioned above. To feature a company on our web site please contact us at the email listed below.
Please click here to read the full disclaimer
