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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.
Revenue by Segment
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
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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