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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.
Revenue by Segment
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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