Harleysville Group’s Profits Take First-Quarter Dip

Pennsylvania-based insurer Harleysville Group Inc. saw first-quarter net income fall 28 percent as it posted profits of $17.2 million, down from $24.1 million in the year-ago period.

Revenue for the company fell to $246.9 million for the quarter, down slightly from the $261.9 million it made in the year-ago period. Commercial lines revenue fell to $177.7 million from $189.5 million, while personal lines revenue grew slightly to $40.3 million from $39.8 million.

Net written premiums in commercial lines decreased 8.9 percent to $178.4 million in the first quarter of 2009.

Net written premiums in personal lines were up 6.6 percent to $38.4 million in the first quarter of 2009.

For the quarter, Harleysville’s statutory combined ratio was 101.9 percent, compared with a combined ratio of 96.6 percent in the first quarter of 2008.

Michael L. Browne, Harleysville Group’s president and chief executive officer, said the company’s results were hurt by elevated property losses stemming from both severe winter weather and an unusually large number of fires.

“Despite current market conditions, we continue to retain a high percentage of our quality business, which is a direct result of the trust our agents place in us and the strong relationships we have with our agency partners,” Browne said.

Source: Harleysville