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Dec 31, 2024
Selective Insurance Q4 2024 Earnings Report
Selective Insurance reported fourth quarter results with net income per diluted common share of $1.52 and non-GAAP operating income per diluted common share of $1.62.
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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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