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Mar 31
Selective Insurance Q1 2025 Earnings Report
Selective Insurance posted solid Q1 2025 results with strong underwriting and investment performance.
Key Takeaways
Selective Insurance delivered a strong first quarter, reporting $1.76 in EPS and net income of $107.6 million. The company improved its combined ratio and grew premiums across core segments, while investment income rose significantly year-over-year.
EPS and Non-GAAP EPS both came in at $1.76, up from $1.31 and $1.33 respectively.
Net premiums written increased 7% year-over-year to $1.24 billion.
Investment income rose 12% YoY to $96 million after-tax, contributing 12.8 points to ROE.
Combined ratio improved to 96.1%, reflecting stronger underwriting results and fewer catastrophe losses.
Selective Insurance
Selective Insurance
Selective Insurance Revenue by Segment
Revenue by Segment
Standard Commercial Revenue
CapyFin.comStandard Personal Revenue
CapyFin.comExcess & Surplus Revenue
CapyFin.com Forward Guidance
Selective projects steady underwriting profitability and rising investment income in 2025, aided by reinvestment from debt issuance.
Positive Outlook
- Full-year GAAP combined ratio guidance of 96% to 97%.
- Expected after-tax net investment income of $405 million.
- Higher asset base from $400M senior notes issuance to support growth.
- Effective tax rate guidance of 21.5%.
- Stable underwriting discipline with continued pricing momentum.
Challenges Ahead
- Assumes no additional prior year casualty reserve development.
- Catastrophe loss assumption of 6 points built into combined ratio forecast.
- Alternative investments may face valuation headwinds.
- Economic volatility may impact investment returns.
- No assumption for further share repurchases beyond Q1.