GuideOne Insurance had net income of $62 million last year, up from $49.8 million in 2006, the company announced today. Solid underwriting results, favorable weather and positive reserve development on prior-year claims contributed to the strong performance.

Net written premiums fell to $488.8 million in 2007 from $507.5 million in 2006. Direct written premiums also dropped to $562 million at the end of 2007, down from $588 million at year-end 2006. However, GuideOne’s surplus grew 18 percent to $416.7 million, an all-time high, up from $352.9 million the prior year, and the company’s total assets increased to $1.4 billion.

The West Des Moines-based insurer experienced strong underwriting results from its commercial lines business, which includes churches, schools and colleges, and senior living communities, but policy counts held steady. The company continued to achieve high customer retention, with more than 90 percent of its commercial accounts renewing their policies.

“We are pleased to report such strong results in today’s very competitive insurance market,” said Jim Wallace, GuideOne president and chief executive officer. “But with industry premiums projected to be flat to down for 2007, and down in 2008, the coming year will be challenging for all property/casualty insurers.”