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Mar 31, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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