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Sep 30, 2021
Selective Insurance Q3 2021 Earnings Report
Selective Insurance reported solid results in Q3 2021, including net income of $1.18 per diluted common share and a combined ratio of 98.6%.
Key Takeaways
Selective Insurance Group, Inc. reported a solid third quarter with a net income per diluted common share of $1.18 and a non-GAAP operating income per diluted common share of $1.18. The combined ratio was a profitable 98.6%, despite $76 million in net catastrophe losses. Overall net premiums written increased by 13% year-over-year.
Net premiums written increased 13% compared to Q3 2020.
GAAP combined ratio was 98.6%.
After-tax net investment income was $75 million, up 35% compared to Q3 2020.
Book value per common share was $45.27, up 1% in Q3.
Selective Insurance
Selective Insurance
Selective Insurance Revenue by Segment
Revenue by Segment
Standard Commercial Lines Revenue
CapyFin.comStandard Personal Lines Revenue
CapyFin.comExcess and Surplus Lines Revenue
CapyFin.com Forward Guidance
Selective has revised its full-year guidance for 2021.
Positive Outlook
- A GAAP combined ratio, excluding net catastrophe losses, of 88% that assumes no fourth quarter prior-year casualty reserve development
- After-tax net investment income of $240 million that includes $75 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 19.5% for net investment income and 21.0% for all other items
- Net catastrophe losses of 5.0 points on the combined ratio
- Weighted average shares of 60.5 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
- Frequency and severity of natural and man-made catastrophic events
- Adverse market, governmental, regulatory, legal, or judicial conditions or actions
Revenue & Expenses
Visualization of income flow from segment revenue to net income