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Dec 31, 2025
Selective Insurance Q4 2025 Earnings Report
Selective Insurance reported strong financial results for the fourth quarter of 2025, with significant increases in net income, operating income, and key profitability metrics.
Key Takeaways
Selective Insurance Group, Inc. delivered a robust performance in the fourth quarter of 2025, with net income per diluted common share of $2.52 and non-GAAP operating income per diluted common share of $2.57. The company achieved an 18.3% return on common equity and a 93.8% combined ratio, demonstrating strong underwriting profitability and effective capital management. Net premiums written increased by 4%, and after-tax net investment income grew by 17% compared to the prior year.
Net income per diluted common share increased by 66% to $2.52, reflecting strong financial performance.
Non-GAAP operating income per diluted common share rose by 59% to $2.57, indicating improved core business profitability.
The combined ratio improved significantly to 93.8%, a 4.7 percentage point improvement from the prior year, driven by better loss and loss expense ratios.
After-tax net investment income grew by 17% to $114 million, contributing 13.6 points to annualized ROE.
Revenue by Segment
Forward Guidance
For 2026, Selective Insurance Group, Inc. anticipates a GAAP combined ratio between 96.5% and 97.5%, including 6 points for net catastrophe losses. The company expects after-tax net investment income of $465 million and an overall effective tax rate of 21.5%, with weighted average shares of 61 million on a fully diluted basis.
Positive Outlook
- Anticipated after-tax net investment income of $465 million, indicating continued strong investment performance.
- A GAAP combined ratio target of 96.5% to 97.5%, suggesting ongoing underwriting profitability.
- Commitment to booking best estimate for casualty reserves each quarter, promoting financial transparency.
- Focus on advancing strategic priorities to enhance operational fundamentals in risk selection, policy pricing, and claims outcomes.
- Efforts to diversify revenue and income across three insurance segments and expand data analytics and AI use for efficiency.
Challenges Ahead
- The combined ratio estimate includes 6 points for net catastrophe losses, which can be volatile.
- No assumptions about future reserve development are made, which could introduce uncertainty.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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