- Selective Insurance Group, Inc. (SIGI, Financial) reported a net income per diluted common share of $1.76 for Q1 2025.
- The GAAP combined ratio improved to 96.1%, down from 98.2% in Q1 2024.
- Net premiums written increased by 7% year-over-year, driven by renewal pure price increases.
Selective Insurance Group, Inc. (SIGI) announced its financial results for the first quarter of 2025, showcasing a robust beginning with a net income per diluted common share of $1.76. The company's return on common equity (ROE) and the non-GAAP operating ROE stood at 14.4%.
Key improvements were noted in Selective's GAAP combined ratio, which saw a reduction to 96.1% from 98.2% in the same quarter of the previous year. This development was primarily supported by a decrease in catastrophe losses, which accounted for 3.7 points, and a reduction in net unfavorable prior year casualty reserve development to 0.4 points.
Net premiums written (NPW) increased by 7% from the first quarter of 2024, primarily due to renewal pure price increases, which averaged 10.3%. Notably, the commercial lines renewal pure price hike was 9.1%, an increase of 1.5 points from the previous year.
The investment income after tax rose to $96 million, a 12% increase from the first quarter of 2024. The company's book value per common share advanced to $50.33, reflecting a 5% boost from the last quarter, with an adjusted book value per common share of $53.39, marking a 2% rise.
John J. Marchioni, Chairman, President, and CEO, emphasized the company's focus on maintaining a stable underwriting portfolio, which was instrumental in achieving this level of growth. The first quarter also noted a significant 20% increase in net premiums written for excess and surplus lines, coupled with a 92.5% combined ratio. Additionally, standard commercial lines, representing 81% of net premiums written, experienced an 8% growth with a 96.4% combined ratio.
In alignment with strategic objectives, Selective Insurance completed a $400 million senior note issuance in February 2025, enhancing its financial flexibility to support organic growth efforts.
Looking ahead for 2025, Selective Insurance anticipates a full-year GAAP combined ratio ranging between 96% and 97%, inclusive of net catastrophe losses estimated at 6 points. The guidance also projects after-tax net investment income to reach $405 million, with an effective tax rate of 21.5%.
For more details, including the supplemental investor package, stakeholders are encouraged to visit the Investors page on Selective's official website. A webcast of Selective’s quarterly analyst conference call is scheduled for April 24, 2025, at 8:00 AM ET, providing further insights into the company's strategic direction and financial performance.
