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Jun 30, 2021
Selective Insurance Q2 2021 Earnings Report
Selective reported excellent financial results, driven by superior underwriting and investment performance.
Key Takeaways
Selective Insurance Group reported excellent second quarter results with a net income of $1.98 per diluted common share and a non-GAAP operating income of $1.85 per diluted common share. The company's combined ratio was a solid 89.8%, with all insurance segments delivering profitable results. Overall NPW increased 15% from a year ago, driven by strong new business growth, renewal pure price increases, and continued solid retention.
Net premiums written increased 15% compared to the second quarter of 2020.
GAAP combined ratio of 89.8%.
After-tax net investment income of $67 million, up 136% compared to the second quarter of 2020.
Book value per common share of $44.78.
Revenue by Segment
Forward Guidance
Selective has revised its full-year guidance as follows: A GAAP combined ratio, excluding catastrophe losses, of 89% (prior guidance 90%) that assumes no additional prior-year casualty reserve development; Catastrophe losses of 4.0 points on the combined ratio; After-tax net investment income of $220 million (prior guidance $195 million) that includes $55 million (prior guidance of $31 million) in after-tax net investment income from our alternative investments; An overall effective tax rate of approximately 20.5% that includes an effective tax rate of 19.0% for net investment income and 21.0% for all other items; and Weighted average shares of 60.5 million on a fully diluted basis.
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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