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Sep 30
Selective Insurance Q3 2025 Earnings Report
Selective Insurance reported its third quarter 2025 financial results, with net income per diluted common share of $1.85 and non-GAAP operating income per diluted common share of $1.75.
Key Takeaways
Selective Insurance Group, Inc. delivered a strong third quarter in 2025, with net income per diluted common share increasing by 26% to $1.85 and non-GAAP operating income per diluted common share rising by 25% to $1.75. The company's net premiums written grew by 4% year-over-year, driven by robust renewal pure price increases. The combined ratio improved to 98.6%, and after-tax net investment income saw an 18% increase. The Board of Directors also authorized a new $200 million share repurchase program and increased the quarterly dividend by 13%.
Net income per diluted common share increased by 26% to $1.85, and non-GAAP operating income per diluted common share rose by 25% to $1.75.
Net premiums written grew by 4% from the third quarter of 2024, with an overall average renewal pure price increase of 9.6%.
The GAAP combined ratio improved to 98.6%, a 0.9 point improvement from the prior year, primarily due to lower catastrophe losses.
The company's Board of Directors authorized a new $200 million share repurchase program and increased the quarterly common stock dividend by 13% to $0.43 per share.
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
For the full year 2025, Selective Insurance expects a GAAP combined ratio between 97% and 98%, including 4 points for net catastrophe losses and prior year casualty reserve development reported through Q3. After-tax net investment income is projected to be $420 million, an increase from previous guidance. The overall effective tax rate is estimated at 21.5%, with weighted average shares of 61.1 million.
Positive Outlook
- Full-year combined ratio outlook remains strong at 97% to 98%.
- After-tax net investment income guidance increased to $420 million, up from $415 million.
- Expansion of Standard Commercial Lines footprint into Kansas, with plans for Montana and Wyoming in 2026.
- Commitment to returning 20% to 25% of earnings through dividends and opportunistic share repurchases.
- Twelfth consecutive annual increase in quarterly dividend, demonstrating consistent shareholder value.
Challenges Ahead
- Combined ratio estimate assumes no additional prior year casualty reserve development.
- Combined ratio estimate assumes no further change in loss cost estimates.
- Weighted average shares guidance assumes no additional repurchases under the new authorization.
- Challenging conditions in the economy, global capital markets, banking sector, and commercial real estate could increase loss costs and negatively impact investment portfolios.
- Potential for adverse market, governmental, regulatory, legal, political, or judicial rulings, conditions, or actions, including social inflation and government shutdowns.