Achieves Main Milestone in 2024
Premium Progress and Monetary Efficiency
Security Insurance coverage Firm surpassed $1 billion in direct written premiums for the primary time in its historical past final 12 months. The corporate recorded a 20.4% improve in direct written premiums, pushed by an 8.5% rise in coverage counts and a ten.9% improve in common premium per coverage.
“For the 12 months ended December 31, 2024, Security Insurance coverage continued to realize vital direct written premium progress, which elevated 20.4% over the prior 12 months, driving our top-line income above $1 billion for the primary time within the Firm’s historical past,” mentioned George M. Murphy, Chairman, President, and CEO. “Our robust top-line progress was a results of an 8.5% improve in total coverage counts and a ten.9% improve in common premium per coverage, blended throughout all traces of enterprise.”
Internet written premiums elevated by 18.2% for the 12 months to $1.09 billion. The expansion was attributed to robust new enterprise manufacturing and premium price will increase throughout all traces. Coverage counts rose in key segments, with Non-public Passenger Vehicle growing by 10.0%, Business Vehicle by 4.5%, and Owners by 8.7%. Common written premium per coverage additionally grew by 14.1%, 10.7%, and eight.9% in these respective traces.
Profitability and Loss Ratios
The Boston-based insurer reported a mixed ratio of 101.1% for 2024, an enchancment from 107.7% in 2023. The fourth-quarter mixed ratio additionally improved to 101.9% from 106.5% within the prior-year interval.
Losses and loss adjustment bills elevated by 11.6% to $716.6 million as a consequence of inflationary pressures within the Non-public Passenger Vehicle guide. Nevertheless, the loss ratio improved to 70.9% for the 12 months, in comparison with 77.0% in 2023, helped by premium progress and moderation of loss severity.
Internet Earnings and Guide Worth Progress
Internet earnings for 2024 rose to $70.7 million ($4.78 per diluted share) from $18.9 million ($1.28 per diluted share) in 2023. Non-GAAP working earnings additionally elevated considerably to $4.16 per diluted share, up from $0.84 per diluted share the earlier 12 months.
Guide worth per share grew by 8.4% to $55.83, reflecting elevated internet earnings offset by dividends paid. The corporate continued its shareholder returns, sustaining its quarterly dividend of $0.90 per share, payable on March 14, 2025, to shareholders of file as of March 3, 2025.
Funding Efficiency
Internet funding earnings declined barely to $55.7 million for the 12 months from $56.4 million in 2023. The funding portfolio’s internet efficient annualized yield was 3.9%, barely decrease than the prior 12 months’s 4.0%. The portfolio’s period on mounted maturities remained secure at 3.5 years.
Regulatory Developments and Market Situations
The insurer additionally benefited from regulatory modifications, together with the restructuring of the Massachusetts Property Insurance coverage Underwriting Affiliation (FAIR Plan), which contributed $10.1 million in present and prior-year growth.
