Loading...
•
Sep 30, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...