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Sep 30, 2023
Selective Insurance Q3 2023 Earnings Report
Selective Insurance reported third quarter results with net income of $1.42 per diluted common share and non-GAAP operating income of $1.51 per diluted common share.
Key Takeaways
Selective Insurance Group, Inc. reported a strong third quarter with a non-GAAP operating ROE of 15.0%. Net premiums written increased by 17% and the combined ratio was 96.8%. The company is expanding its Commercial Lines footprint and remains focused on long-term, profitable growth.
Net premiums written increased 17% compared to the third quarter of 2022.
GAAP combined ratio was 96.8%, in line with the third quarter of 2022.
After-tax net investment income was $80 million, up 56% compared to the third quarter of 2022.
Non-GAAP operating ROE was 15.0% for the quarter.
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
For 2023, Selective expects a GAAP combined ratio of 96.5%, after-tax net investment income of $310 million, an overall effective tax rate of approximately 21%, and weighted average shares of 61 million on a fully diluted basis.
Positive Outlook
- GAAP combined ratio of 96.5%.
- Net catastrophe losses of 6.5 points.
- After-tax net investment income of $310 million.
- Effective tax rate of 21% for all other items.
- Weighted average shares of 61 million on a fully diluted basis.
Challenges Ahead
- Net catastrophe losses of 6.5 points, up from prior guidance of 6.0 points.
- After-tax net investment income includes $20 million of after-tax net investment income from our alternative investments, down from our $30 million prior guidance.
- Our combined ratio estimate assumes no additional prior-year casualty reserve development.
- Challenging conditions in the economy, global capital markets, the banking sector, and commercial real estate, including 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income