Safety Insurance Group, Inc. (NASDAQ:SAFT) today reported first quarter 2014 results. Net income for the quarter ended March 31, 2014 was $12.1 million, or $0.79 per diluted share, compared to $14.0 million, or $0.91 per diluted share, for the comparable 2013 period. Safety’s book value per share increased to $45.70 at March 31, 2014 from $45.18 at December 31, 2013. Safety paid $0.60 per share in dividends to investors during the quarters ended March 31, 2014 and March 31, 2013. Safety paid $2.40 per share in dividends to investors during the year ended December 31, 2013.
Direct written premiums for the quarter ended March 31, 2014 increased by $7.1 million, or 3.8%, to $192.7 million from $185.6 million for the comparable 2013 period. The 2014 increase occurred primarily in our commercial automobile and homeowners lines of business, which experienced increases in average written premium per exposure of 9.2% and 4.0%, respectively. Written exposures increased in our commercial automobile and our homeowners lines of business by 9.7% and 5.3%, respectively.
Net written premiums for the quarter ended March 31, 2014 increased by $7.3 million, or 4.1%, to $186.0 million from $178.7 million for the comparable 2013 period. Net earned premiums for the quarter ended March 31, 2014 increased by $9.5 million, or 5.7%, to $176.0 million from $166.4 million for the comparable 2013 period. Net written and net earned premiums increased primarily due to the factors that increased direct written premiums.
Net investment income for the quarter ended March 31, 2014 increased by $0.2 million, or 1.8%, to $10.6 million from $10.4 million for the comparable 2013 period. Net effective annualized yield on the investment portfolio was 3.5% and 3.6%, for the quarters ended March 31, 2014 and 2013, respectively. Our duration was 4.0 years at March 31, 2014, slightly lower from 4.1 years at December 31, 2013.
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