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Dec 31, 2019

Selective Insurance Q4 2019 Earnings Report

Selective Insurance reported record financial results with record net income per diluted share and non-GAAP operating income per diluted share.

Key Takeaways

Selective Insurance Group reported record financial results for Q4 2019, with net income per diluted share of $1.36 and non-GAAP operating income per diluted share of $1.37. Net premiums written increased by 8%, and the GAAP combined ratio was 91.8%.

Net premiums written increased 8%.

GAAP combined ratio was 91.8%.

Overall renewal pure price averaged 3.8%.

After-tax net investment income was up 6% to $47 million.

Total Revenue
$628M
Previous year: $583M
+7.8%
EPS
$1.37
Previous year: $1.2
+14.2%
Total Combined Ratio
91.8%
Previous year: 92.7%
-1.0%
Commercial Lines Combined
90%
Previous year: 92.9%
-3.1%
Personal Lines Combined
98.5%
Previous year: 91.8%
+7.3%
Gross Profit
$729M
Previous year: $643M
+13.4%
Cash and Equivalents
$8.8B
Previous year: $16.9M
+51896.0%
Free Cash Flow
$155M
Previous year: $157M
-1.8%
Total Assets
$8.8B
Previous year: $7.95B
+10.6%

Selective Insurance

Selective Insurance

Selective Insurance Revenue by Segment

Forward Guidance

For 2020, Selective expects a GAAP combined ratio, excluding catastrophe losses, of 91.5%, catastrophe losses of 3.5 points, after-tax net investment income of $185 million, an overall effective tax rate of approximately 19.5%, and weighted average shares outstanding of 60.5 million.

Positive Outlook

  • Selective expects to generate GAAP combined ratio, excluding catastrophe losses, of 91.5%.
  • Catastrophe losses are expected to be 3.5 points.
  • After-tax net investment income is projected to be $185 million.
  • The overall effective tax rate is expected to be approximately 19.5%.
  • Weighted average shares outstanding are estimated to be 60.5 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income