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Dec 31, 2021
Selective Insurance Q4 2021 Earnings Report
Reported strong Q4 2021 results with net income of $1.59 per diluted common share and non-GAAP operating income of $1.56 per diluted common share.
Key Takeaways
Selective Insurance Group reported strong fourth quarter 2021 results, including a net income of $1.59 per diluted common share and non-GAAP operating income of $1.56 per diluted common share. The combined ratio was a profitable 93.1%, and net premiums written increased 9% from a year ago.
Net premiums written increased 9% compared to the fourth quarter of 2020.
GAAP combined ratio of 93.1%.
Overall renewal pure price increases averaged 4.7%.
After-tax net investment income of $65 million, up 16% compared to the fourth quarter of 2020.
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's full-year guidance for 2022 includes a GAAP combined ratio, excluding net catastrophe losses, of 91.0%, net catastrophe losses of 4.0 points on the combined ratio, after-tax net investment income of $200 million, an overall effective tax rate of approximately 20.5%, and weighted average shares of 61 million on a fully diluted basis.
Positive Outlook
- GAAP combined ratio, excluding net catastrophe losses, of 91.0%.
- Combined ratio estimate assumes no prior-year casualty reserve development.
- Net catastrophe losses of 4.0 points on the combined ratio.
- After-tax net investment income of $200 million that includes $20 million in after-tax net investment income from our alternative investments.
- Overall effective tax rate of approximately 20.5% that assumes an effective tax rate of 19.5% for net investment income and 21.0% for all other items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income