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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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