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Mar 31, 2024
Selective Insurance Q1 2024 Earnings Report
Selective Insurance reported first quarter 2024 results with net income of $1.31 per diluted common share and non-GAAP operating income of $1.33 per diluted common share.
Key Takeaways
Selective Insurance Group, Inc. reported a strong first quarter in 2024, with a 16% increase in net premiums written and after-tax net investment income up 17%. The combined ratio was 98.2%, impacted by prior year casualty reserve development and catastrophe losses. The company is focused on disciplined underwriting and profitable growth strategies.
Net premiums written increased 16% compared to the first quarter of 2023.
The GAAP combined ratio was 98.2%, compared to 95.7% in the first quarter of 2023, impacted by prior year casualty reserve development and catastrophe losses.
Commercial Lines renewal pure price increases averaged 7.6%, up 0.6 points from the first quarter of 2023.
After-tax net investment income was $86 million, up 17% compared to the first quarter of 2023.
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
For 2024, the company increased its expectation for the GAAP combined ratio to 96.5%, including net catastrophe losses of 5.0 points. After-tax net investment income is expected to be $360 million, with an overall effective tax rate of approximately 21.0% and weighted average shares of 61.5 million on a fully diluted basis.
Positive Outlook
- After-tax net investment income of $360 million
- Effective tax rate of 21.0%
- Maintaining other full-year expectations
- Combined ratio estimate assumes no additional prior year casualty reserve development
- Net catastrophe losses of 5.0 points
Challenges Ahead
- GAAP combined ratio of 96.5%
- Reflecting unfavorable prior year casualty reserve development
- Current year loss cost increases in the first quarter
- Challenging conditions in the economy, global capital markets, the banking sector, and commercial real estate
- Deterioration in the public debt, public equity, or private investment markets that could lead to investment losses and interest rate fluctuations
Revenue & Expenses
Visualization of income flow from segment revenue to net income