Selective Insurance Q4 2024 Earnings Report
Key Takeaways
Selective Insurance Group, Inc. reported a decrease in net income per diluted common share to $1.52 and a non-GAAP operating income per diluted common share of $1.62 for Q4 2024. The combined ratio was 98.5%, impacted by unfavorable prior year casualty reserve development. Despite challenges, NPW increased by 10% driven by renewal pure price increases.
Net income per diluted common share was $1.52, and non-GAAP operating income per diluted common share was $1.62.
Net premiums written increased 10% compared to the fourth quarter of 2023.
The GAAP combined ratio was 98.5%, compared to 93.7% in the fourth quarter of 2023, influenced by unfavorable prior year casualty reserve development.
After-tax net investment income increased 24% from the fourth quarter of 2023, reaching $97 million.
Selective Insurance
Selective Insurance
Selective Insurance Revenue by Segment
Forward Guidance
For 2025, Selective expects a GAAP combined ratio of 96% to 97%, including net catastrophe losses of 6 points, after-tax net investment income of $405 million, an overall effective tax rate of 21.5%, and weighted average shares of 61.5 million on a fully diluted basis.
Positive Outlook
- GAAP combined ratio of 96% to 97%
- Net catastrophe losses of 6 points
- After-tax net investment income of $405 million
- Overall effective tax rate of 21.5%
- Weighted average shares of 61.5 million on a fully diluted basis
Challenges Ahead
- Combined ratio estimate assumes no prior year casualty reserve development
- Challenging conditions in the economy, global capital markets, the banking sector, and commercial real estate, including prolonged higher inflation, could increase loss costs and negatively impact investment portfolios
- Deterioration in the public debt, public equity, or private investment markets that could lead to investment losses and interest rate fluctuations
- Frequency and severity of catastrophic events, including natural events that may be impacted by climate change, such as hurricanes, severe convective storms, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires, and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest
- Adverse market, governmental, regulatory, legal, political, or judicial rulings, conditions or actions, including the impact of social inflation