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Selective Reports Fourth Quarter and Year-End 2024 Results

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Selective Insurance Group (NASDAQ: SIGI) reported fourth quarter 2024 results with net income of $1.52 per diluted share and non-GAAP operating income of $1.62 per share. The company achieved a 10% increase in net premiums written compared to Q4 2023, with Commercial Lines renewal pure price increases averaging 8.8%.

Key Q4 2024 metrics include a GAAP combined ratio of 98.5%, after-tax net investment income of $97 million (up 24% year-over-year), and book value per common share of $47.99. The company faced challenges with $100 million in net unfavorable prior year casualty reserve development, which increased the combined ratio by 8.8 points.

For full-year 2024, Selective reported net income of $3.23 per diluted share and a combined ratio of 103.0%. The company achieved significant growth in Excess & Surplus Lines, exceeding $500 million in NPW, and expanded its Standard Commercial Lines to five additional states.

Selective Insurance Group (NASDAQ: SIGI) ha riportato i risultati del quarto trimestre 2024 con un utile netto di $1.52 per azione diluita e un utile operativo non-GAAP di $1.62 per azione. L'azienda ha registrato un aumento del 10% nei premi netti scritti rispetto al Q4 2023, con un aumento medio dei prezzi di rinnovo pure delle Linee Commerciali del 8.8%.

I principali indicatori del Q4 2024 includono un rapporto combinato GAAP del 98.5%, un utile netto da investimenti dopo le tasse di $97 milioni (in aumento del 24% rispetto all'anno precedente) e un valore contabile per azione ordinaria di $47.99. L'azienda ha affrontato sfide con uno sviluppo negativo delle riserve per sinistri dell'anno precedente pari a $100 milioni, che ha aumentato il rapporto combinato di 8.8 punti.

Per l'intero anno 2024, Selective ha riportato un utile netto di $3.23 per azione diluita e un rapporto combinato del 103.0%. L'azienda ha raggiunto una significativa crescita nelle Linee di Eccedenza e Sovrappiù, superando i $500 milioni in NPW, e ha ampliato le sue Linee Commerciali Standard a cinque stati aggiuntivi.

Selective Insurance Group (NASDAQ: SIGI) reportó los resultados del cuarto trimestre de 2024 con un ingreso neto de $1.52 por acción diluida y un ingreso operativo no-GAAP de $1.62 por acción. La compañía logró un aumento del 10% en los ingresos por primas netas en comparación con el cuarto trimestre de 2023, con un incremento promedio en el precio de renovación pura de las Líneas Comerciales del 8.8%.

Los indicadores clave del cuarto trimestre de 2024 incluyen una relación combinada GAAP del 98.5%, un ingreso neto de inversiones después de impuestos de $97 millones (un aumento del 24% interanual) y un valor contable por acción ordinaria de $47.99. La compañía enfrentó desafíos con $100 millones en desarrollo desfavorable de reservas de siniestros del año anterior, lo que aumentó la relación combinada en 8.8 puntos.

Para el año completo de 2024, Selective reportó un ingreso neto de $3.23 por acción diluida y una relación combinada del 103.0%. La compañía logró un crecimiento significativo en Líneas de Exceso y Superávit, superando los $500 millones en NPW, y amplió sus Líneas Comerciales Estándar a cinco estados adicionales.

Selective Insurance Group (NASDAQ: SIGI)는 2024년 4분기 결과를 발표하며 희석 주당 순이익이 $1.52이며 비-GAAP 운영 수익이 주당 $1.62이라고 밝혔습니다. 회사는 2023년 4분기와 비교하여 순보험료가 10% 증가했으며, 상업 라인의 순수 갱신 가격 인상이 평균 8.8%에 달했습니다.

2024년 4분기의 주요 지표로는 GAAP 결합 비율이 98.5%이며, 세후 순 투자 수익은 $9700만(전년 대비 24% 증가), 보통주당 장부가치는 $47.99입니다. 회사는 이전 년도 손해배상 준비금에서 $1억의 불리한 개발이라는 문제에 직면하여 결합 비율이 8.8포인트 상승했습니다.

2024년 전체 년도에 대해 Selective는 희석 주당 순이익이 $3.23이며 결합 비율이 103.0%라고 보고했습니다. 회사는 잉여 & 초과 라인에서 $5억을 초과하는 NPW 성장을 달성하였으며, 5개의 추가 주로 표준 상업 라인을 확장했습니다.

Selective Insurance Group (NASDAQ: SIGI) a rapporté les résultats du quatrième trimestre de 2024 avec un bénéfice net de 1,52 $ par action diluée et un bénéfice d'exploitation non-GAAP de 1,62 $ par action. L'entreprise a réalisé une augmentation de 10 % des primes nettes souscrites par rapport au quatrième trimestre de 2023, avec une augmentation moyenne des prix des renouvellements purs des Lignes Commerciales de 8,8 %.

Les indicateurs clés du T4 2024 comprennent un ratio combiné GAAP de 98,5 %, un revenu net d'investissement après impôts de 97 millions $ (en hausse de 24 % par rapport à l'année précédente) et une valeur comptable par action ordinaire de 47,99 $. L'entreprise a rencontré des défis avec 100 millions $ de développement défavorable de réserves pour sinistres de l'année précédente, ce qui a augmenté le ratio combiné de 8,8 points.

Pour l'année complète 2024, Selective a rapporté un bénéfice net de 3,23 $ par action diluée et un ratio combiné de 103,0 %. L'entreprise a connu une croissance significative dans le domaine des Lignes d'Excédent et de Surplus, dépassant 500 millions $ en NPW, et a élargi ses Lignes Commerciales Standards à cinq États supplémentaires.

Selective Insurance Group (NASDAQ: SIGI) hat die Ergebnisse des vierten Quartals 2024 veröffentlicht, mit einem Nettogewinn von $1,52 pro verwässerter Aktie und einem non-GAAP Betriebsergebnis von $1,62 pro Aktie. Das Unternehmen erzielte einen 10%igen Anstieg der geschriebenen Nettoprämien im Vergleich zum Q4 2023, wobei die reinen Preiserhöhungen bei den Erneuerungen der Gewerblichen Linien im Durchschnitt 8,8% betrugen.

Die wichtigsten Kennzahlen für Q4 2024 umfassen ein GAAP-Kombinationsverhältnis von 98,5%, Nachsteuererträge aus Investitionen von $97 Millionen (ein Anstieg von 24% im Jahresvergleich) und einen Buchwert pro Stammaktie von $47,99. Das Unternehmen hatte Schwierigkeiten mit $100 Millionen an ungünstiger Entwicklung von Rückstellungen für Personenschäden aus dem Vorjahr, was das Kombinationsverhältnis um 8,8 Punkte erhöhte.

Für das Gesamtjahr 2024 berichtete Selective einen Nettogewinn von $3,23 pro verwässerter Aktie und ein Kombinationsverhältnis von 103,0%. Das Unternehmen erzielte ein signifikantes Wachstum im Bereich Excess & Surplus Lines, das $500 Millionen in NPW überstieg, und erweiterte seine Standard Commercial Lines auf fünf zusätzliche Bundesländer.

Positive
  • Net premiums written increased 10% in Q4 2024
  • After-tax net investment income grew 24% to $97 million in Q4
  • Commercial Lines renewal pure price increases reached 8.8%
  • Excess & Surplus Lines premiums grew 27% in Q4
  • Achieved $500 million milestone in Excess & Surplus Lines NPW
Negative
  • Combined ratio deteriorated to 98.5% from 93.7% in Q4 2023
  • $100 million unfavorable prior year casualty reserve development in Q4
  • Book value per share decreased 2% from previous quarter
  • Net income decreased 24% to $93.2 million in Q4 2024
  • Full-year combined ratio increased to 103.0% from 96.5%

Insights

Selective's Q4 2024 results reveal a complex operational picture with significant implications for investors. The 10% NPW growth and 8.8% Commercial Lines pricing demonstrate strong market positioning, but the $100 million casualty reserve charge signals ongoing challenges with social inflation impact on liability claims.

The company's aggressive pricing actions, particularly the 27.3% renewal pure price increases in Personal Lines, reflect a determined response to profitability pressures. The Standard Commercial Lines segment, representing 76% of NPW, maintained a healthy 85% retention rate despite significant price increases, indicating strong market acceptance and pricing power.

Investment performance stands out as a bright spot, with after-tax net investment income increasing 24% to $97 million. The 4.0% after-tax yield on both overall and fixed income portfolios demonstrates effective portfolio management in the current rate environment.

The 2025 guidance of 96-97% combined ratio suggests management expects significant improvement from 2024's 103.0%. However, this target appears ambitious given recent casualty loss trends and assumes no prior year development, which has been a persistent challenge.

The Excess & Surplus Lines segment's 27% premium growth and 29% new business growth highlight successful market expansion, though the $20 million unfavorable reserve development requires monitoring. The achievement of $500 million in E&S NPW marks a strategic milestone in diversification efforts.

Fourth Quarter Net Income of $1.52 per Diluted Common Share and Non-GAAP Operating Income1 of $1.62 per Diluted Common Share; Return on Common Equity ("ROE") of 12.7% and Non-GAAP Operating ROE1 of 13.5%

Full Year 2024 ROE of 7.0% and Non-GAAP Operating of ROE1 7.1%

In the fourth quarter of 2024:

  • Net premiums written ("NPW") increased 10% from the fourth quarter of 2023;
  • The GAAP combined ratio was 98.5%, compared to 93.7% in the fourth quarter of 2023;
  • Commercial Lines renewal pure price increases averaged 8.8%, up 1.5 points from 7.3% in the fourth quarter of 2023;
  • After-tax net investment income was $97 million, up 24% from the fourth quarter of 2023;
  • Book value per common share was $47.99, down 2% from last quarter; and
  • Adjusted book value per common share1 was $52.10, up 3% from last quarter.

BRANCHVILLE, N.J.--(BUSINESS WIRE)-- Selective Insurance Group, Inc. (NASDAQ: SIGI) reported financial results for the fourth quarter ended December 31, 2024, with net income per diluted common share of $1.52 and non-GAAP operating income1 per diluted common share of $1.62. Return on common equity was 12.7% and non-GAAP operating ROE1 was 13.5%.

For the quarter, Selective reported a combined ratio of 98.5%. Net unfavorable prior year casualty reserve development of $100 million increased the combined ratio by 8.8 points. NPW increased 10% from a year ago driven by renewal pure price increases of 10.7%. Net investment income generated 13.2 points of annualized ROE in the quarter, increasing to $97 million after-tax, up 24% from a year ago.

For the year, Selective reported net income per diluted common share of $3.23 and non-GAAP operating income1 per diluted common share of $3.27. The 2024 combined ratio was 103.0% including prior year casualty reserve strengthening of $311 million, which increased the combined ratio by 7.1 points. NPW increased 12% with renewal pure price increases of 9.5%. After-tax net investment income was $363 million, up 17% from a year ago, and generated 12.8 points of ROE.

“Despite strong investment results, overall financial performance in 2024 did not meet our expectations. Within insurance operations, we delivered solid underlying profitability but took meaningful actions to strengthen casualty reserves in response to social inflation. We also increased Standard Commercial Lines renewal pure pricing, achieving 8.8% in the fourth quarter and 8.3% for the year. We continue to focus on returning our performance to the combination of growth and profitability investors expect of us and we expect of ourselves. With these pricing actions and our ability to manage renewal pure price and retention at a granular level, we are well positioned to capitalize on our competitive strengths. These include our unique field model, the strength of our distribution partner relationships, and our customer experience focus,” said John J. Marchioni, Chairman, President and Chief Executive Officer.

“In 2024, we advanced important strategic initiatives that position Selective for long-term, profitable growth. We exceeded $500 million of NPW in Excess & Surplus Lines, added five states to our Standard Commercial Lines operating footprint, and took significant actions to reposition and drive our Personal Lines business toward improved profitability,” concluded Mr. Marchioni.

Operating Highlights

Consolidated Financial Results

Quarter ended December 31,

Change

Year-to-Date December 31,

Change

$ and shares in millions, except per share data

2024

 

2023

2024

 

2023

Net premiums written

$

1,089.6

 

991.5

10

%

$

4,630.0

 

4,134.5

12

%

Net premiums earned

 

1,133.0

 

1,001.2

13

 

 

4,376.4

 

3,827.6

14

 

Net investment income earned

 

122.8

 

98.6

25

 

 

457.1

 

388.7

18

 

Net realized and unrealized gains (losses), pre-tax

 

(8.0)

 

5.4

(248)

 

 

(2.9)

 

(3.6)

(17)

 

Total revenues

 

1,256.4

 

1,110.7

13

 

 

4,861.7

 

4,232.1

15

 

Net underwriting income (loss), after-tax

 

13.3

 

50.2

(74)

 

 

(104.7)

 

104.9

(200)

 

Net investment income, after-tax

 

97.3

 

78.4

24

 

 

362.6

 

309.5

17

 

Net income (loss) available to common stockholders

 

93.2

 

122.5

(24)

 

 

197.8

 

356.0

(44)

 

Non-GAAP operating income (loss)1

 

99.6

 

118.3

(16)

 

 

200.1

 

358.8

(44)

 

Combined ratio

 

98.5

%

93.7

4.8

pts

 

103.0

%

96.5

6.5

pts

Loss and loss expense ratio

 

67.8

 

62.4

5.4

 

 

72.3

 

64.9

7.4

 

Underwriting expense ratio

 

30.6

 

31.1

(0.5)

 

 

30.6

 

31.4

(0.8)

 

Dividends to policyholders ratio

 

0.1

 

0.2

(0.1)

 

 

0.1

 

0.2

(0.1)

 

Net catastrophe losses

 

(0.9)

pts

2.5

(3.4)

 

 

6.5

pts

6.4

0.1

 

Non-catastrophe property losses and loss expenses

 

15.7

 

17.2

(1.5)

 

 

15.6

 

17.0

(1.4)

 

(Favorable) unfavorable prior year reserve development on casualty lines

 

8.8

 

1.0

7.8

 

 

7.1

 

(0.2)

7.3

 

Current year casualty loss costs

 

44.2

 

41.7

2.5

 

 

43.1

 

41.7

1.4

 

Net income (loss) available to common stockholders per diluted common share

$

1.52

 

2.01

(24)

%

$

3.23

 

5.84

(45)

%

Non-GAAP operating income (loss) per diluted common share1

 

1.62

 

1.94

(16)

 

 

3.27

 

5.89

(44)

 

Weighted average diluted common shares

 

61.3

 

61.0

 

 

61.3

 

61.0

1

 

Book value per common share

$

47.99

 

45.42

6

 

$

47.99

 

45.42

6

 

Adjusted book value per common share1

 

52.10

 

50.03

4

 

 

52.10

 

50.03

4

 

Overall Insurance Operations

For the fourth quarter, overall NPW increased 10% from a year ago. Average renewal pure price increased 10.7%, up 3.3 points from a year ago. Our 98.5% combined ratio was 4.8 points higher than a year ago. We recorded $100 million of unfavorable prior year casualty reserve development driven by recent accident years in general liability and excess and surplus lines. This was partially offset by lower catastrophe and non-catastrophe property losses and a lower expense ratio. Overall, our insurance segments contributed 1.8 points of ROE in the fourth quarter of 2024.

Standard Commercial Lines Segment

For the fourth quarter, Standard Commercial Lines premiums (representing 76% of total NPW) grew 9% from a year ago. The premium growth reflected average renewal pure price increases of 8.8% and stable retention of 85%. The fourth quarter combined ratio was 100.2%, up 7.1 points from a year ago. This was driven by net unfavorable prior year casualty reserve development of $75 million, partially offset by lower catastrophe and non-catastrophe losses. The fourth quarter 2024 prior year casualty reserve development included unfavorable development of $100 million in general liability. This was partially offset by favorable development of $25 million in workers compensation.

The following table shows the variances in key quarter-to-date and year-to date measures:

Standard Commercial Lines Segment

Quarter ended December 31,

Change

Year-to-Date December 31,

Change

$ in millions

2024

 

2023

2024

 

2023

Net premiums written

$

833.4

 

764.3

9

%

$

3,632.1

 

3,281.3

11

%

Net premiums earned

 

884.6

 

792.1

12

 

 

3,447.6

 

3,071.8

12

 

Combined ratio

 

100.2

%

93.1

7.1

pts

 

104.2

%

94.9

9.3

pts

Loss and loss expense ratio

 

68.5

 

61.0

7.5

 

 

72.5

 

62.5

10.0

 

Underwriting expense ratio

 

31.6

 

31.9

(0.3)

 

 

31.5

 

32.2

(0.7)

 

Dividends to policyholders ratio

 

0.1

 

0.2

(0.1)

 

 

0.2

 

0.2

 

Net catastrophe losses

 

(0.9)

pts

2.0

(2.9)

 

 

5.3

pts

4.9

0.4

 

Non-catastrophe property losses and loss expenses

 

14.0

 

15.4

(1.4)

 

 

13.3

 

15.0

(1.7)

 

(Favorable) unfavorable prior year reserve development on casualty lines

 

8.5

 

0.6

7.9

 

 

8.3

 

(0.5)

8.8

 

Current year casualty loss costs

 

46.9

 

43.0

3.9

 

 

45.6

 

43.1

2.5

 

Standard Personal Lines Segment

For the fourth quarter, Standard Personal Lines premiums (representing 10% of total NPW) decreased 3% from a year ago with renewal pure price of 27.3% and higher average policy sizes. Retention was 75%, down 12 points from a year ago, and new business decreased 49% due to deliberate profit improvement actions. The fourth quarter 2024 combined ratio decreased 25.2 points from a year ago to 91.7%. The improvement reflects the benefit of renewal pure price increases in recent quarters, along with lower catastrophe and non-catastrophe property losses.

The following table shows the variances in key quarter-to-date and year-to-date measures:

Standard Personal Lines Segment

Quarter ended December 31,

Change

Year-to-Date December 31,

Change

$ in millions

2024

 

2023

2024

 

2023

Net premiums written

$

103.6

 

107.0

(3)

%

$

430.7

 

414.6

4

%

Net premiums earned

 

107.1

 

101.0

6

 

 

424.9

 

365.2

16

 

Combined ratio

 

91.7

%

116.9

(25.2)

pts

 

109.3

%

121.7

(12.4)

pts

Loss and loss expense ratio

 

67.9

 

91.7

(23.8)

 

 

85.8

 

96.7

(10.9)

 

Underwriting expense ratio

 

23.8

 

25.2

(1.4)

 

 

23.5

 

25.0

(1.5)

 

Net catastrophe losses

 

1.0

pts

9.1

(8.1)

 

 

18.8

pts

19.0

(0.2)

 

Non-catastrophe property losses and loss expenses

 

36.3

 

42.4

(6.1)

 

 

38.6

 

43.0

(4.4)

 

Unfavorable prior year reserve development on casualty lines

 

4.7

 

5.0

(0.3)

 

 

1.2

 

3.8

(2.6)

 

Current year casualty loss costs

 

25.9

 

35.2

(9.3)

 

 

27.2

 

30.9

(3.7)

 

Excess and Surplus Lines Segment

For the fourth quarter, Excess and Surplus Lines premiums (representing 14% of total NPW) increased 27% compared to the prior-year period, driven by new business growth of 29% and average renewal pure price increases of 8.2%. The fourth quarter 2024 combined ratio was 93.1%, up 16.9 points compared to a year ago. Unfavorable prior year casualty reserve development was $20 million, or 14.2 points on the combined ratio, compared to no prior year casualty reserve development a year ago.

The following table shows the variances in key quarter-to-date and year-to-date measures:

Excess and Surplus Lines Segment

Quarter ended December 31,

Change

Year-to-Date December 31,

Change

$ in millions

2024

 

2023

2024

 

2023

Net premiums written

$

152.6

 

120.2

27

%

$

567.2

 

438.6

29

%

Net premiums earned

 

141.3

 

108.1

31

 

 

504.0

 

390.6

29

 

Combined ratio

 

93.1

%

76.2

16.9

pts

 

89.7

%

86.0

3.7

pts

Loss and loss expense ratio

 

63.6

 

45.9

17.7

 

 

59.2

 

54.3

4.9

 

Underwriting expense ratio

 

29.5

 

30.3

(0.8)

 

 

30.5

 

31.7

(1.2)

 

Net catastrophe losses

 

(2.0)

pts

(0.7)

(1.3)

 

 

4.6

pts

6.3

(1.7)

 

Non-catastrophe property losses and loss expenses

 

10.8

 

6.8

4.0

 

 

11.5

 

8.2

3.3

 

(Favorable) prior year reserve development on casualty lines

 

14.2

 

14.2

 

 

4.0

 

(1.3)

5.3

 

Current year casualty loss costs

 

40.6

 

39.8

0.8

 

 

39.1

 

41.1

(2.0)

 

Investments Segment

For the fourth quarter, after-tax net investment income of $97 million was up 24% from a year ago. The after-tax income yield averaged 4.0% for the overall and fixed income securities portfolios. With this and invested assets per dollar of common stockholders' equity of $3.31 as of December 31, 2024, net investment income generated 13.2 points of annualized ROE.

Investments Segment

Quarter ended December 31,

Change

Year-to-Date December 31,

Change

$ in millions, except per share data

2024

 

2023

2024

 

2023

Net investment income earned, after-tax

$

97.3

 

78.4

24

%

$

362.6

 

309.5

17

%

Net investment income per common share

 

1.59

 

1.29

23

 

 

5.92

 

5.08

17

 

Effective tax rate

 

20.7

%

20.4

0.3

pts

 

20.7

%

20.4

0.3

pts

Average yields:

 

 

 

 

 

 

 

 

 

 

Portfolio:

 

 

 

 

 

 

 

 

 

 

Pre-tax

 

5.1

 

4.7

0.4

 

 

5.0

 

4.7

0.3

 

After-tax

 

4.0

 

3.7

0.3

 

 

4.0

 

3.7

0.3

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

Pre-tax

 

5.1

%

5.1

pts

 

5.0

%

4.9

0.1

pts

After-tax

 

4.0

 

4.0

 

 

4.0

 

3.9

0.1

 

Annualized ROE contribution

 

13.2

 

12.1

1.1

 

 

12.8

 

12.4

0.4

 

Balance Sheet

$ in millions, except per share data

December 31, 2024

 

December 31, 2023

 

Change

Total assets

$

13,514.2

 

 

11,802.5

 

 

15 %

 

Total investments

 

9,651.3

 

 

8,693.7

 

 

11

 

Long-term debt

 

507.9

 

 

503.9

 

 

1

 

Stockholders’ equity

 

3,120.1

 

 

2,954.4

 

 

6

 

Common stockholders' equity

 

2,920.1

 

 

2,754.4

 

 

6

 

Invested assets per dollar of common stockholders’ equity

 

3.31

 

 

3.16

 

 

5

 

Net premiums written to policyholders' surplus

 

1.60

 

 

1.51

 

 

6

 

Book value per common share

 

47.99

 

 

45.42

 

 

6

 

Adjusted book value per common share1

 

52.10

 

 

50.03

 

 

4

 

Debt to total capitalization

 

14.0

%

 

14.6

%

 

(0.6)

pts

Book value per common share increased by $2.57, or 6%, during 2024. The increase was primarily attributable to $3.23 of net income per diluted common share and a $0.47 decrease in after-tax net unrealized losses on our fixed income securities portfolio, partially offset by $1.43 in common stockholder dividends. The decrease in after-tax net unrealized losses on our fixed income securities portfolio was primarily driven by a tightening of credit spreads, partially offset by an increase in interest rates. In the fourth quarter of 2024, the Company did not repurchase any shares of common stock. During 2024, the company repurchased 103,000 shares of common stock at an average price of $84.34 for $8.7 million. Capacity under the existing repurchase authorization was $75.5 million as of December 31, 2024.

Selective's Board of Directors declared:

  • A quarterly cash dividend on common stock of $0.38 per common share that is payable March 3, 2025, to holders of record on February 14, 2025; and
  • A quarterly cash dividend of $287.50 per share on our 4.60% Non-Cumulative Preferred Stock, Series B (equivalent to $0.28750 per depositary share) payable on March 17, 2025, to holders of record as of February 28, 2025.

Guidance

For 2025, our full-year expectations are as follows:

  • A GAAP combined ratio of 96% to 97%, including net catastrophe losses of 6 points. Our combined ratio estimate assumes no prior year casualty reserve development;
  • 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.

The supplemental investor package, with financial information not included in this press release, is available on the Investors page of Selective’s website at www.Selective.com.

Selective’s quarterly analyst conference call will be simulcast at 8:30 AM ET, on Thursday, January 30, 2025, on www.Selective.com. The webcast will be available for rebroadcast until the close of business on February 28, 2025.

About Selective Insurance Group, Inc.
Selective Insurance Group, Inc. (Nasdaq: SIGI) is a holding company for 10 property and casualty insurance companies rated "A+" (Superior) by AM Best. Through independent agents, the insurance companies offer standard and specialty insurance for commercial and personal risks and flood insurance through the National Flood Insurance Program's Write Your Own Program. Selective's unique position as both a leading insurance group and an employer of choice is recognized in a wide variety of awards and honors, including listing in Forbes Best Midsize Employers in 2024 and certification as a Great Place to Work® in 2024 for the fifth consecutive year. For more information about Selective, visit www.Selective.com.

1Reconciliation of Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss) and Certain Other Non-GAAP Measures
Non-GAAP operating income (loss), non-GAAP operating income (loss) per diluted common share, and non-GAAP operating return on common equity differ from net income (loss) available to common stockholders, net income (loss) available to common stockholders per diluted common share, and return on common equity, respectively, by the exclusion of after-tax net realized and unrealized gains and losses on investments included in net income (loss). Adjusted book value per common share differs from book value per common share by excluding total after-tax unrealized gains and losses on investments included in accumulated other comprehensive income (loss). These non-GAAP measures are used as important financial measures by management, analysts, and investors, because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized gains and losses on investments could distort the analysis of trends. These operating measurements are not intended to be a substitute for net income (loss) available to common stockholders, net income (loss) available to common stockholders per diluted common share, return on common equity, and book value per common share prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of net income (loss) available to common stockholders, net income (loss) available to common stockholders per diluted common share, return on common equity, and book value per common share to non-GAAP operating income (loss), non-GAAP operating income (loss) per diluted common share, non-GAAP operating return on common equity, and adjusted book value per common share, respectively, are provided in the tables below.

Note: All amounts included in this release exclude intercompany transactions.

Reconciliation of Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss)

$ in millions

Quarter ended December 31,

 

Year-to-Date December 31,

2024

 

2023

 

2024

 

2023

Net income (loss) available to common stockholders

$

93.2

 

 

122.5

 

 

197.8

 

 

356.0

 

Net realized and unrealized investment (gains) losses included in net income, before tax

 

8.0

 

 

(5.4

)

 

2.9

 

 

3.6

 

Tax on reconciling items

 

(1.7

)

 

1.1

 

 

(0.6

)

 

(0.7

)

Non-GAAP operating income (loss)

$

99.6

 

 

118.3

 

 

200.1

 

 

358.8

 

Reconciliation of Net Income (Loss) Available to Common Stockholders per Diluted Common Share to Non-GAAP Operating Income (Loss) per Diluted Common Share

 

Quarter ended December 31,

 

Year-to-Date December 31,

2024

 

2023

 

2024

 

2023

Net income (loss) available to common stockholders per diluted common share

$

1.52

 

 

2.01

 

 

3.23

 

 

5.84

 

Net realized and unrealized investment (gains) losses included in net income, before tax

 

0.13

 

 

(0.09

)

 

0.05

 

 

0.06

 

Tax on reconciling items

 

(0.03

)

 

0.02

 

 

(0.01

)

 

(0.01

)

Non-GAAP operating income (loss) per diluted common share

$

1.62

 

 

1.94

 

 

3.27

 

 

5.89

 

Reconciliation of Return on Common Equity to Non-GAAP Operating Return on Common Equity

 

Quarter ended December 31,

 

Year-to-Date December 31,

2024

 

2023

 

2024

 

2023

Return on Common Equity

12.7

 

%

 

18.9

 

 

7.0

 

14.3

Net realized and unrealized investment (gains) losses included in net income, before tax

1.1

 

 

 

(0.8

)

 

0.1

 

0.1

Tax on reconciling items

(0.3

)

 

 

0.1

 

 

 

Non-GAAP Operating Return on Common Equity

13.5

 

%

 

18.2

 

 

7.1

 

14.4

Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share

 

Quarter ended December 31,

 

Year-to-Date December 31,

2024

 

2023

 

2024

 

2023

Book value per common share

$

47.99

 

 

45.42

 

 

47.99

 

 

45.42

 

Total unrealized investment (gains) losses included in accumulated other comprehensive (loss) income, before tax

 

5.21

 

 

5.83

 

 

5.21

 

 

5.83

 

Tax on reconciling items

 

(1.10

)

 

(1.22

)

 

(1.10

)

 

(1.22

)

Adjusted book value per common share

$

52.10

 

 

50.03

 

 

52.10

 

 

50.03

 

Note: Amounts in the tables above may not foot due to rounding.

Forward-Looking Statements

Certain statements in this report, including information incorporated by reference, are “forward-looking statements” defined in the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or our industry’s actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. In some cases, forward-looking statements include the words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “attribute,” “confident,” “strong,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” “continue,” or comparable terms. Our forward-looking statements are only predictions; we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, except as may be required by law.

Factors that could cause our actual results to differ materially from what we project, forecast, or estimate in forward-looking statements include, without limitation:

  • 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;
  • Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus;
  • The development and adequacy of our loss reserves and loss expense reserves;
  • 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;
  • The significant geographic concentration of our business in the eastern portion of the United States;
  • The cost, terms and conditions, and availability of reinsurance;
  • Our ability to collect on reinsurance and the solvency of our reinsurers;
  • The impact of changes in U.S. trade policies and imposition of tariffs on imports that may lead to higher than anticipated inflationary trends for our loss and loss expenses;
  • Related to COVID-19, we have successfully defended against payment of COVID-19-related business interruption losses based on our policies' terms, conditions, and exclusions. However, should the highest courts determine otherwise, our loss and loss expenses may increase, our related reserves may not be adequate, and our financial condition and liquidity may be materially impacted.
  • Ongoing wars and conflicts impacting global economic, banking, commodity, and financial markets, exacerbating ongoing economic challenges, including inflation and supply chain disruption, which influences insurance loss costs, premiums, and investment valuations;
  • Uncertainties related to insurance premium rate increases and business retention;
  • Changes in insurance regulations that impact our ability to write and/or cease writing insurance policies in one or more states;
  • The effects of data privacy or cyber security laws and regulations on our operations;
  • Major defect or failure in our internal controls or information technology and application systems that result in harm to our brand in the marketplace, increased senior executive focus on crisis and reputational management issues, and/or increased expenses, particularly if we experience a significant privacy breach;
  • Potential tax or federal financial regulatory reform provisions that could pose certain risks to our operations;
  • Our ability to maintain favorable financial ratings, which may include sustainability considerations, from rating agencies, including AM Best, Standard & Poor’s, Moody’s, and Fitch;
  • Our entry into new markets and businesses; and
  • Other risks and uncertainties we identify in filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and other periodic reports.

 

Investor Contact:

Brad B. Wilson

973-948-1283

Brad.Wilson@Selective.com

Media Contact:

Jamie M. Beal

973-948-1234

Jamie.Beal@Selective.com

Source: Selective Insurance Group, Inc.

FAQ

What was Selective Insurance's (SIGI) net income per share in Q4 2024?

Selective Insurance reported net income of $1.52 per diluted share in Q4 2024.

How much did SIGI's net premiums written grow in Q4 2024?

Net premiums written increased by 10% compared to Q4 2023.

What was SIGI's combined ratio in Q4 2024?

The GAAP combined ratio was 98.5% in Q4 2024, up from 93.7% in Q4 2023.

How much was SIGI's net investment income in Q4 2024?

After-tax net investment income was $97 million, up 24% from Q4 2023.

What was Selective's book value per share as of December 31, 2024?

Book value per common share was $47.99, down 2% from the previous quarter.

Selective Insurance Group

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5.08B
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Insurance - Property & Casualty
Fire, Marine & Casualty Insurance
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