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Mar 31, 2021
Selective Insurance Q1 2021 Earnings Report
Selective Insurance reported excellent first-quarter financial results, including a strong non-GAAP operating ROE and an impressive combined ratio.
Key Takeaways
Selective Insurance Group reported excellent first-quarter results with a net income of $1.77 per diluted common share and a non-GAAP operating income of $1.70 per diluted common share. The company's performance was driven by disciplined and profitable growth, a strong non-GAAP operating ROE of 16.2%, and an impressive combined ratio of 89.3%. Commercial lines NPW increased 28% year-over-year, and each segment generated profitable results.
Net premiums written increased 23% compared to the first quarter of 2020.
GAAP combined ratio was 89.3%.
After-tax net investment income was $56 million, up 24% compared to the first quarter of 2020.
Book value per common share was $42.38.
Selective Insurance
Selective Insurance
Selective Insurance Revenue by Segment
Revenue by Segment
Standard Commercial Lines Revenue
CapyFin.comStandard Personal Lines Revenue
CapyFin.comExcess and Surplus Lines Revenue
CapyFin.com Forward Guidance
Selective has revised its full-year guidance for 2021, including a GAAP combined ratio, excluding catastrophe losses, of 90%, catastrophe losses of 4.0 points on the combined ratio, after-tax net investment income of $195 million, an overall effective tax rate of approximately 20.5%, and weighted average shares of 60.5 million on a fully diluted basis.
Positive Outlook
- GAAP combined ratio, excluding catastrophe losses, of 90% (prior guidance 91%) that assumes no additional prior-year casualty reserve development.
- Catastrophe losses of 4.0 points on the combined ratio.
- After-tax net investment income of $195 million (prior guidance $182 million) that includes $31 million (prior guidance of $16 million) in after-tax net investment income from our alternative investments.
- An overall effective tax rate of approximately 20.5%, that includes an effective tax rate of 19.0% for net investment income and 21.0% for all other items.
- Weighted average shares of 60.5 million on a fully diluted basis.
Revenue & Expenses
Visualization of income flow from segment revenue to net income