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Mar 31, 2022
Selective Insurance Q1 2022 Earnings Report
Selective Insurance reported strong financial results for Q1 2022, with increased net premiums written and a profitable combined ratio.
Key Takeaways
Selective Insurance Group reported strong Q1 2022 results, including net income of $0.89 per diluted common share and non-GAAP operating income of $1.41 per diluted common share. The company's net premiums written increased by 11%, and the combined ratio was a profitable 93.1%.
Net premiums written increased 11% compared to the first quarter of 2021.
GAAP combined ratio was 93.1%.
After-tax net investment income was $59 million, up 4% compared to the first quarter of 2021.
Book value per common share was $42.73, down 8% in the first quarter.
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 Insurance provided full-year expectations, including a GAAP combined ratio, excluding net catastrophe losses, of 91.0%, net catastrophe losses of 4.0 points on the combined ratio, after-tax net investment income of $205 million, an overall effective tax rate of approximately 20.5%, and weighted average shares of 61 million on a fully diluted basis.
Positive Outlook
- A GAAP combined ratio, excluding net catastrophe losses, of 91.0%.
- Net catastrophe losses of 4.0 points on the combined ratio.
- After-tax net investment income of $205 million.
- An overall effective tax rate of approximately 20.5%.
- Weighted average shares of 61 million on a fully diluted basis.
Challenges Ahead
- Difficult conditions in global capital markets and the economy, including the risk of prolonged higher inflation, could increase loss costs and negatively impact investment portfolios.
- Deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and interest rate fluctuations.
- Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus.
- The adequacy of our loss reserves and loss expense reserves.
- Frequency and severity of catastrophic events, including natural events such as hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest.
Revenue & Expenses
Visualization of income flow from segment revenue to net income