Delphi Financial Group has reported that its net income in the fourth quarter of 2007 was $41.7 million or $0.81 per share, a slight improvement when compared to $40.2 million or $0.78 per share in the corresponding quarter of 2006.

Delphi Financial’s operating earnings in the quarter increased 7% to $42.3 million from $39.5 million in the same period of 2006. Annualized operating return on beginning equity in the fourth quarter was 14.4%, up from 14% in the comparable quarter of 2006.

The company’s net income for full-year 2007 was $164.5 million or $3.19 per share, an increase as against $142.1 million or $2.79 per share in 2006. Operating earnings increased 15% to $167.2 million compared to $145.6 million reported in 2006, while operating earnings per share grew 13% to $3.24 per share from $2.86 per share for full-year 2006.

Robert Rosenkranz, chairman and CEO of Delphi Financial, said: Delphi’s strong performance in the fourth quarter was driven by ongoing margin improvement in our insurance businesses, as we benefited from our pricing discipline at RSL and continued favorable market conditions for safety national’s excess workers’ compensation insurance.