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Jun 30, 2022
Selective Insurance Q2 2022 Earnings Report
Selective Insurance reported second quarter 2022 results, including net income of $0.61 per diluted common share and non-GAAP operating income of $1.17 per diluted common share.
Key Takeaways
Selective Insurance Group, Inc. reported financial results for the second quarter ended June 30, 2022, with net income per diluted common share of $0.61 and non-GAAP operating income per diluted common share of $1.17. The second quarter combined ratio was a profitable 95.5%, with 5.5 points of catastrophe losses. NPW increased 12% from a year ago.
Net premiums written increased 12% compared to the second quarter of 2021.
GAAP combined ratio of 95.5%.
Commercial Lines renewal pure price increases averaged 5.3%, compared to 4.8% in the first quarter of 2022.
After-tax net investment income of $57 million, down 16% compared to the second quarter of 2021.
Selective Insurance
Selective Insurance
Selective Insurance Revenue by Segment
Revenue by Segment
Standard Commercial Lines Revenue
CapyFin.comStandard Personal Lines Revenue
CapyFin.com Forward Guidance
Full-year expectations include a GAAP combined ratio, excluding net catastrophe losses, of 90.5%, net catastrophe losses of 4.0 points on the combined ratio, after-tax net investment income of $215 million, an overall effective tax rate of approximately 20.5%, and weighted average shares of 61 million on a fully diluted basis.
Positive Outlook
- GAAP combined ratio, excluding net catastrophe losses, of 90.5%.
- Net catastrophe losses of 4.0 points on the combined ratio.
- After-tax net investment income of $215 million.
- Effective tax rate of approximately 20.5% for net investment income.
- Weighted average shares of 61 million on a fully diluted basis.
Challenges Ahead
- Difficult conditions in global capital markets and the economy, including the risk of prolonged higher inflation, could increase loss costs and negatively impact investment portfolios
- Deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and interest rate fluctuations
- Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus
- The adequacy of our loss reserves and loss expense reserves
- Frequency and severity of catastrophic events, including natural events such as hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest
Revenue & Expenses
Visualization of income flow from segment revenue to net income