Selective Reports Third Quarter 2024 Results
Selective Insurance Group, Inc. (NASDAQ: SIGI) reported third quarter 2024 results with net income of $1.47 per diluted common share and non-GAAP operating income of $1.40 per diluted common share. The company achieved a Return on Common Equity (ROE) of 12.6% and a non-GAAP Operating ROE of 12.1%. Key highlights include:
- Net premiums written (NPW) increased 9% from Q3 2023
- GAAP combined ratio was 99.5%, up from 96.8% in Q3 2023
- Net catastrophe losses increased the combined ratio by 13.4 points
- Commercial Lines renewal pure price increases averaged 9.1%
- After-tax net investment income was $93 million, up 16% year-over-year
- Book value per common share increased 9% to $48.82
- Quarterly dividend increased 9% to $0.38 per common share
The company maintained a strong capital position and expanded its Standard Commercial Lines footprint to 35 states. Despite elevated catastrophe losses, Selective reported solid underlying performance, reflecting disciplined underwriting and pricing actions.
Selective Insurance Group, Inc. (NASDAQ: SIGI) ha riportato i risultati del terzo trimestre 2024 con un utile netto di $1.47 per azione comune diluita e un utile operativo non-GAAP di $1.40 per azione comune diluita. L'azienda ha raggiunto un Return on Common Equity (ROE) del 12,6% e un ROE operativo non-GAAP del 12,1%. I punti salienti includono:
- I premi netti scritti (NPW) sono aumentati del 9% rispetto al terzo trimestre 2023
- Il rapporto combinato GAAP era del 99,5%, in aumento rispetto al 96,8% nel terzo trimestre 2023
- Le perdite catastrofiche nette hanno aumentato il rapporto combinato di 13,4 punti
- Gli aumenti dei prezzi puri nel rinnovo delle linee commerciali sono stati mediamente del 9,1%
- L'utile netto da investimenti dopo le tasse è stato di 93 milioni di dollari, con un aumento del 16% rispetto all'anno precedente
- Il valore contabile per azione comune è aumentato del 9% a $48.82
- Il dividendo trimestrale è aumentato del 9% a $0.38 per azione comune
L'azienda ha mantenuto una solida posizione di capitale e ha ampliato la sua presenza nelle linee commerciali standard a 35 stati. Nonostante le elevate perdite catastrofiche, Selective ha riportato una solida performance di base, riflettendo un'underwriting disciplinato e azioni di pricing.
Selective Insurance Group, Inc. (NASDAQ: SIGI) reportó resultados del tercer trimestre de 2024 con un ingreso neto de $1.47 por acción común diluida y un ingreso operativo no GAAP de $1.40 por acción común diluida. La compañía alcanzó un Return on Common Equity (ROE) del 12.6% y un ROE operativo no GAAP del 12.1%. Los puntos destacados incluyen:
- Las primas netas escritas (NPW) aumentaron un 9% en comparación con el tercer trimestre de 2023
- El ratio combinado GAAP fue del 99.5%, en comparación con el 96.8% en el tercer trimestre de 2023
- Las pérdidas netas por catástrofes aumentaron el ratio combinado en 13.4 puntos
- Los aumentos de precios puros en la renovación de líneas comerciales promediaron el 9.1%
- Los ingresos netos por inversiones después de impuestos fueron de 93 millones de dólares, un aumento del 16% interanual
- El valor contable por acción común aumentó un 9% a $48.82
- El dividendo trimestral aumentó un 9% a $0.38 por acción común
La compañía mantuvo una sólida posición de capital y amplió su presencia en las líneas comerciales estándar a 35 estados. A pesar de las elevadas pérdidas por catástrofes, Selective reportó un sólido rendimiento subyacente, reflejando una suscripción disciplinada y acciones de fijación de precios.
Selective Insurance Group, Inc. (NASDAQ: SIGI)는 2024년 3분기 실적을 보고하며 희석된 보통주 1주당 순이익이 $1.47, 비-GAAP 운영수익이 $1.40이라고 발표했습니다. 회사는 12.6%의 보통주 자본 수익률(ROE)과 비-GAAP 운영 ROE 12.1%를 달성했습니다. 주요 사항은 다음과 같습니다:
- 순보험료 적립(NPW)은 2023년 3분기 대비 9% 증가했습니다
- GAAP 결합 비율은 99.5%로, 2023년 3분기 96.8%에서 증가했습니다
- 순재해 손실로 인해 결합 비율이 13.4포인트 증가했습니다
- 상업라인 갱신 순가격 증가는 평균 9.1%로 나타났습니다
- 세후 순투자 소득은 9천3백만 달러로, 전년도 대비 16% 증가했습니다
- 보통주당 장부 가치는 9% 증가한 $48.82입니다
- 분기 배당금은 9% 증가하여 보통주당 $0.38이 되었습니다
회사는 강력한 자본 위치를 유지를 하였고 표준 상업 라인의 발자국을 35개 주로 확장했습니다. 높은 재해 손실에도 불구하고, Selective는 엄격한 언더라이팅과 가격 책정 조치를 반영하여 양호한 기본 성과를 보고했습니다.
Selective Insurance Group, Inc. (NASDAQ: SIGI) a rapporté les résultats du troisième trimestre 2024 avec un revenu net de 1,47 USD par action ordinaire diluée et un revenu opérationnel non-GAAP de 1,40 USD par action ordinaire diluée. L'entreprise a atteint un Retour sur Fonds Propres (ROE) de 12,6% et un ROE opérationnel non-GAAP de 12,1%. Les points clés comprennent :
- Les primes nettes souscrites (NPW) ont augmenté de 9% par rapport au troisième trimestre 2023
- Le ratio combiné GAAP était de 99,5%, en hausse par rapport à 96,8% au troisième trimestre 2023
- Les pertes nettes dues aux catastrophes ont augmenté le ratio combiné de 13,4 points
- Les augmentations de prix pur des renouvellements des lignes commerciales ont atteint en moyenne 9,1%
- Le revenu net des investissements après impôts était de 93 millions USD, en hausse de 16% par rapport à l'année précédente
- La valeur comptable par action ordinaire a augmenté de 9% pour atteindre 48,82 USD
- Le dividende trimestriel a augmenté de 9% pour atteindre 0,38 USD par action ordinaire
L'entreprise a maintenu une solide position en capital et a élargi son empreinte dans les lignes commerciales standard à 35 États. Malgré des pertes importantes dues aux catastrophes, Selective a rapporté une performance sous-jacente solide, reflétant une souscription et des actions de tarification disciplinées.
Selective Insurance Group, Inc. (NASDAQ: SIGI) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Nettogewinn von 1,47 USD pro verwässerter Stammaktie und einem nicht-GAAP Betriebsergebnis von 1,40 USD pro verwässerter Stammaktie. Das Unternehmen erreichte eine Eigenkapitalrendite (ROE) von 12,6% und eine nicht-GAAP Betriebseigenkapitalrendite von 12,1%. Zu den wichtigsten Punkten gehören:
- Die netto geschriebenen Prämien (NPW) stiegen um 9% im Vergleich zum 3. Quartal 2023
- Das GAAP kombinierte Verhältnis betrug 99,5%, gegenüber 96,8% im 3. Quartal 2023
- Netto-Katastrophenschäden erhöhten das kombinierte Verhältnis um 13,4 Punkte
- Die reinen Preiserhöhungen bei der Erneuerung von gewerblichen Linien lagen im Durchschnitt bei 9,1%
- Nachsteuerlicher Nettoanlageertrag betrug 93 Millionen USD, ein Anstieg von 16% im Vergleich zum Vorjahr
- Der Buchwert pro Stammaktie stieg um 9% auf 48,82 USD
- Die vierteljährliche Dividende wurde um 9% auf 0,38 USD pro Stammaktie erhöht
Das Unternehmen hielt eine starke Kapitalposition aufrecht und erweiterte seine Präsenz im Standard-Gewerbeversicherungsbereich auf 35 Bundesstaaten. Trotz erhöhter Katastrophenschäden berichtete Selective von einer soliden Grundleistung, was auf diszipliniertes Underwriting und Preisstrategie hindeutet.
- Net premiums written (NPW) increased 9% year-over-year
- After-tax net investment income grew 16% to $93 million
- Book value per common share increased 9% to $48.82
- Commercial Lines renewal pure price increases averaged 9.1%, up 2.0 points from Q3 2023
- Quarterly dividend increased 9% to $0.38 per common share
- Expanded Standard Commercial Lines footprint to 35 states
- GAAP combined ratio increased to 99.5% from 96.8% in Q3 2023
- Net catastrophe losses increased the combined ratio by 13.4 points, up from 6.6 points in Q3 2023
- Non-GAAP operating income per diluted common share decreased 7% year-over-year
- Standard Personal Lines segment reported a combined ratio of 122.1%
- Increased full-year 2024 expected GAAP combined ratio to 102.5% from previous guidance of 101.5%
Insights
Selective Insurance Group's Q3 2024 results show a mixed performance. Net income per diluted share increased 4% to
Key positives include:
- Net premiums written grew
9% year-over-year, driven by accelerating renewal pure price increases - After-tax net investment income rose
16% to$93 million - Book value per share increased
9% to$48.82
However, challenges were evident:
- The GAAP combined ratio deteriorated to
99.5% from96.8% a year ago - Elevated catastrophe losses of
$149 million increased the combined ratio by 13.4 points
The company's focus on disciplined pricing and underwriting is evident, with Standard Commercial Lines renewal pure price increasing to
Selective's Q3 results highlight the ongoing challenges in the property and casualty insurance sector, particularly the impact of severe weather events. The frequency and severity of storms, including Hurricane Helene, resulted in
The company's response to these challenges is noteworthy:
- Accelerating renewal pure price increases, especially in General Liability (
10.2% ) - Maintaining disciplined underwriting, with stable retention in Standard Commercial Lines (
86% ) - Expanding into new states (Nevada, Oregon and Washington) for Standard Commercial Lines
The personal lines segment shows signs of strain, with a
Selective's updated guidance for 2024, with an expected GAAP combined ratio of
Net Income of
Quarterly Dividend Increased
In the third quarter of 2024:
-
Net premiums written ("NPW") increased
9% from the third quarter of 2023; -
The GAAP combined ratio was
99.5% , compared to96.8% in the third quarter of 2023; - Net catastrophe losses increased the GAAP combined ratio by 13.4 points, compared to 6.6 points in the third quarter of 2023;
-
Commercial Lines renewal pure price increases averaged
9.1% , up 2.0 points from7.1% in the third quarter of 2023; -
After-tax net investment income was
, up$93 million 16% from the third quarter of 2023; -
Book value per common share was
, up$48.82 9% from last quarter; and -
Adjusted book value per common share1 was
, up$50.80 2% from last quarter.
NPW increased
For the quarter, Selective reported a combined ratio of
“The continued frequency and severity of storms in the third quarter, including the devastation from Hurricane Helene, underscore our unwavering commitment to our customers, agency partners, and communities. During these challenging times for those impacted by the storms, I thank my colleagues for continuing to deliver superior claims service and supporting customers and claimants,” said John J. Marchioni, Chairman, President and Chief Executive Officer.
“We maintain a disciplined approach to pricing and underwriting our business. Loss trends remain elevated and uncertain, but we continue to be prudent and vigilant in addressing them. In the quarter, renewal pure price increased
“Our primary goal is to consistently achieve our
Operating Highlights
Consolidated Financial Results |
Quarter ended September 30, |
Change |
Year-to-Date September 30, |
Change |
||||||||||||||
$ and shares in millions, except per share data |
2024 |
2023 |
2024 |
2023 |
||||||||||||||
Net premiums written |
$ |
1,157.6 |
|
1,058.3 |
|
9 |
|
% |
$ |
3,540.4 |
|
|
3,143.0 |
|
13 |
|
% |
|
Net premiums earned |
|
1,112.2 |
|
981.9 |
|
13 |
|
|
|
3,243.4 |
|
|
2,826.4 |
|
15 |
|
|
|
Net investment income earned |
|
117.8 |
|
100.9 |
|
17 |
|
|
|
334.3 |
|
|
290.1 |
|
15 |
|
|
|
Net realized and unrealized gains (losses), pre-tax |
|
5.4 |
|
(6.9 |
) |
(178 |
) |
|
|
5.1 |
|
|
(9.0 |
) |
(156 |
) |
|
|
Total revenues |
|
1,244.3 |
|
1,081.1 |
|
15 |
|
|
|
3,605.3 |
|
|
3,121.4 |
|
16 |
|
|
|
Net underwriting income (loss), after-tax |
|
4.1 |
|
25.0 |
|
(83 |
) |
|
|
(118.0 |
) |
|
54.7 |
|
(316 |
) |
|
|
Net investment income, after-tax |
|
93.4 |
|
80.2 |
|
16 |
|
|
|
265.3 |
|
|
231.1 |
|
15 |
|
|
|
Net income (loss) available to common stockholders |
|
90.0 |
|
86.9 |
|
4 |
|
|
|
104.6 |
|
|
233.5 |
|
(55 |
) |
|
|
Non-GAAP operating income (loss)1 |
|
85.7 |
|
92.3 |
|
(7 |
) |
|
|
100.6 |
|
|
240.6 |
|
(58 |
) |
|
|
Combined ratio |
|
99.5 |
% |
96.8 |
|
2.7 |
|
pts |
|
104.6 |
|
% |
97.5 |
|
7.1 |
|
pts |
|
Loss and loss expense ratio |
|
68.8 |
|
65.8 |
|
3.0 |
|
|
|
73.8 |
|
|
65.7 |
|
8.1 |
|
|
|
Underwriting expense ratio |
|
30.6 |
|
30.9 |
|
(0.3 |
) |
|
|
30.6 |
|
|
31.6 |
|
(1.0 |
) |
|
|
Dividends to policyholders ratio |
|
0.1 |
|
0.1 |
|
— |
|
|
|
0.2 |
|
|
0.2 |
|
— |
|
|
|
Net catastrophe losses |
|
13.4 |
pts |
6.6 |
|
6.8 |
|
|
|
9.1 |
|
pts |
7.8 |
|
1.3 |
|
|
|
Non-catastrophe property losses and loss expenses |
|
13.2 |
|
17.6 |
|
(4.4 |
) |
|
|
15.5 |
|
|
16.9 |
|
(1.4 |
) |
|
|
(Favorable) unfavorable prior year reserve development on casualty lines |
|
— |
|
— |
|
— |
|
|
|
6.5 |
|
|
(0.6 |
) |
7.1 |
|
|
|
Net income (loss) available to common stockholders per diluted common share |
$ |
1.47 |
|
1.42 |
|
4 |
|
% |
$ |
1.71 |
|
|
3.83 |
|
(55 |
) |
% |
|
Non-GAAP operating income (loss) per diluted common share1 |
|
1.40 |
|
1.51 |
|
(7 |
) |
|
|
1.64 |
|
|
3.95 |
|
(58 |
) |
|
|
Weighted average diluted common shares |
|
61.3 |
|
61.0 |
|
— |
|
|
|
61.3 |
|
|
60.9 |
|
1 |
|
|
|
Book value per common share |
$ |
48.82 |
|
40.35 |
|
21 |
|
|
$ |
48.82 |
|
|
40.35 |
|
21 |
|
|
|
Adjusted book value per common share1 |
|
50.80 |
|
48.54 |
|
5 |
|
|
|
50.80 |
|
|
48.54 |
|
5 |
|
|
Overall Insurance Operations
For the third quarter, overall NPW increased
Overall, our insurance segments increased ROE by 0.6 points in the third quarter of 2024.
Standard Commercial Lines Segment
For the third quarter, Standard Commercial Lines premiums (representing
There was no net prior year casualty reserve development in the quarter, compared to
The following table shows the variances in key quarter-to-date and year-to date measures:
Standard Commercial Lines Segment |
Quarter ended September 30, |
Change |
Year-to-Date September 30, |
Change |
||||||||||||||
$ in millions |
2024 |
2023 |
2024 |
2023 |
||||||||||||||
Net premiums written |
$ |
903.9 |
|
833.6 |
|
8 |
|
% |
$ |
2,798.7 |
|
2,517.0 |
|
11 |
|
% |
||
Net premiums earned |
|
875.4 |
|
785.3 |
|
11 |
|
|
|
2,563.0 |
|
2,279.7 |
|
12 |
|
|
||
Combined ratio |
|
99.2 |
% |
94.7 |
|
4.5 |
|
pts |
|
105.6 |
% |
95.5 |
|
10.1 |
|
pts |
||
Loss and loss expense ratio |
|
67.6 |
|
62.8 |
|
4.8 |
|
|
|
74.0 |
|
63.0 |
|
11.0 |
|
|
||
Underwriting expense ratio |
|
31.4 |
|
31.7 |
|
(0.3 |
) |
|
|
31.4 |
|
32.3 |
|
(0.9 |
) |
|
||
Dividends to policyholders ratio |
|
0.2 |
|
0.2 |
|
— |
|
|
|
0.2 |
|
0.2 |
|
— |
|
|
||
Net catastrophe losses |
|
11.5 |
pts |
4.7 |
|
6.8 |
|
|
|
7.4 |
pts |
5.9 |
|
1.5 |
|
|
||
Non-catastrophe property losses and loss expenses |
|
11.0 |
|
15.6 |
|
(4.6 |
) |
|
|
13.1 |
|
14.9 |
|
(1.8 |
) |
|
||
(Favorable) unfavorable prior year reserve development on casualty lines |
|
— |
|
(0.4 |
) |
0.4 |
|
|
|
8.2 |
|
(0.9 |
) |
9.1 |
|
|
Standard Personal Lines Segment
For the third quarter, Standard Personal Lines premiums (representing
The following table shows the variances in key quarter-to-date and year-to-date measures:
Standard Personal Lines Segment |
Quarter ended September 30, |
Change |
Year-to-Date September 30, |
Change |
||||||||||||
$ in millions |
2024 |
2023 |
2024 |
2023 |
||||||||||||
Net premiums written |
$ |
111.0 |
|
113.2 |
(2 |
) |
% |
$ |
327.1 |
|
307.5 |
6 |
|
% |
||
Net premiums earned |
|
107.5 |
|
95.2 |
13 |
|
|
|
317.8 |
|
264.2 |
20 |
|
|
||
Combined ratio |
|
122.1 |
% |
127.4 |
(5.3 |
) |
pts |
|
115.2 |
% |
123.6 |
(8.4 |
) |
pts |
||
Loss and loss expense ratio |
|
98.7 |
|
104.5 |
(5.8 |
) |
|
|
91.8 |
|
98.7 |
(6.9 |
) |
|
||
Underwriting expense ratio |
|
23.4 |
|
22.9 |
0.5 |
|
|
|
23.4 |
|
24.9 |
(1.5 |
) |
|
||
Net catastrophe losses |
|
38.8 |
pts |
25.6 |
13.2 |
|
|
|
24.8 |
pts |
22.8 |
2.0 |
|
|
||
Non-catastrophe property losses and loss expenses |
|
35.3 |
|
44.7 |
(9.4 |
) |
|
|
39.4 |
|
43.2 |
(3.8 |
) |
|
||
Unfavorable prior year reserve development on casualty lines |
|
— |
|
3.2 |
(3.2 |
) |
|
|
— |
|
3.4 |
(3.4 |
) |
|
Excess and Surplus Lines Segment
For the third quarter, Excess and Surplus Lines premiums (representing
The following table shows the variances in key quarter-to-date and year-to-date measures:
Excess and Surplus Lines Segment |
Quarter ended September 30, |
Change |
Year-to-Date September 30, |
Change |
|||||||||||||
$ in millions |
2024 |
|
2023 |
2024 |
|
2023 |
|
||||||||||
Net premiums written |
$ |
142.7 |
|
111.6 |
28 |
|
% |
$ |
414.5 |
|
318.4 |
|
30 |
|
% |
||
Net premiums earned |
|
129.3 |
|
101.4 |
28 |
|
|
|
362.6 |
|
282.5 |
|
28 |
|
|
||
Combined ratio |
|
83.2 |
% |
83.9 |
(0.7 |
) |
pts |
|
88.4 |
% |
89.7 |
|
(1.3 |
) |
pts |
||
Loss and loss expense ratio |
|
52.5 |
|
51.9 |
0.6 |
|
|
|
57.5 |
|
57.4 |
|
0.1 |
|
|
||
Underwriting expense ratio |
|
30.7 |
|
32.0 |
(1.3 |
) |
|
|
30.9 |
|
32.3 |
|
(1.4 |
) |
|
||
Net catastrophe losses |
|
5.2 |
pts |
3.5 |
1.7 |
|
|
|
7.1 |
pts |
9.0 |
|
(1.9 |
) |
|
||
Non-catastrophe property losses and loss expenses |
|
10.0 |
|
7.4 |
2.6 |
|
|
|
11.8 |
|
8.7 |
|
3.1 |
|
|
||
(Favorable) prior year reserve development on casualty lines |
|
— |
|
— |
— |
|
|
|
— |
|
(1.8 |
) |
1.8 |
|
|
Investments Segment
For the third quarter, after-tax net investment income of
Investments Segment |
Quarter ended September 30, |
Change |
Year-to-Date September 30, |
Change |
||||||||||||
$ in millions, except per share data |
2024 |
|
2023 |
2024 |
|
2023 |
||||||||||
Net investment income earned, after-tax |
$ |
93.4 |
|
80.2 |
16 |
|
% |
$ |
265.3 |
|
231.1 |
15 |
|
% |
||
Net investment income per common share |
|
1.52 |
|
1.31 |
16 |
|
|
|
4.33 |
|
3.79 |
14 |
|
|
||
Effective tax rate |
|
20.7 |
% |
20.5 |
0.2 |
|
pts |
|
20.6 |
% |
20.3 |
0.3 |
|
pts |
||
Average yields: |
|
|
|
|
|
|
|
|
|
|
||||||
Portfolio: |
|
|
|
|
|
|
|
|
|
|
||||||
Pre-tax |
|
5.0 |
|
4.9 |
0.1 |
|
|
|
4.9 |
|
4.8 |
0.1 |
|
|
||
After-tax |
|
4.0 |
|
3.9 |
0.1 |
|
|
|
3.9 |
|
3.8 |
0.1 |
|
|
||
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
||||||
Pre-tax |
|
5.0 |
% |
5.1 |
(0.1 |
) |
pts |
|
4.9 |
% |
5.0 |
(0.1 |
) |
pts |
||
After-tax |
|
4.0 |
|
4.1 |
(0.1 |
) |
|
|
3.9 |
|
4.0 |
(0.1 |
) |
|
||
Annualized ROE contribution |
|
13.1 |
|
13.1 |
— |
|
|
|
12.6 |
|
12.7 |
(0.1 |
) |
|
Balance Sheet
$ in millions, except per share data |
September 30, 2024 |
|
December 31, 2023 |
|
Change |
|||||||
Total assets |
$ |
13,473.1 |
|
|
11,802.5 |
|
|
14 |
% |
|||
Total investments |
|
9,635.3 |
|
|
8,693.7 |
|
|
11 |
|
|
||
Long-term debt |
|
508.2 |
|
|
503.9 |
|
|
1 |
|
|
||
Stockholders’ equity |
|
3,167.8 |
|
|
2,954.4 |
|
|
7 |
|
|
||
Common stockholders' equity |
|
2,967.8 |
|
|
2,754.4 |
|
|
8 |
|
|
||
Invested assets per dollar of common stockholders’ equity |
|
3.25 |
|
|
3.16 |
|
|
3 |
|
|
||
Net premiums written to policyholders' surplus |
|
1.63 |
|
|
1.51 |
|
|
8 |
|
|
||
Book value per common share |
|
48.82 |
|
|
45.42 |
|
|
7 |
|
|
||
Adjusted book value per common share1 |
|
50.80 |
|
|
50.03 |
|
|
2 |
|
|
||
Debt to total capitalization |
|
13.8 |
% |
|
14.6 |
% |
|
(0.8 |
) |
pts |
Book value per common share increased by
Selective's Board of Directors declared:
-
A
9% increase in the quarterly cash dividend on common stock to per common share that is payable December 2, 2024, to holders of record on November 15, 2024; and$0.38 -
A quarterly cash dividend of
per share on our$287.50 4.60% Non-Cumulative Preferred Stock, Series B (equivalent to per depositary share) payable on December 16, 2024, to holders of record as of December 2, 2024.$0.28 750
Guidance
For 2024, we increased our expected GAAP combined ratio to
-
A GAAP combined ratio of
102.5% , up 1 point from our prior guidance of101.5% . Our combined ratio estimate includes net catastrophe losses of 7.5 points, up from prior guidance of 5.5 points. Although too early to provide a specific estimate, we expect losses from Hurricane Milton, which made landfall on October 9, 2024, to be immaterial. Our combined ratio estimate assumes no additional prior year casualty reserve development; -
After-tax net investment income of
that includes$360 million from alternative investments;$32 million -
An overall effective tax rate of approximately
21.0% , which assumes an effective tax rate of20.5% for net investment income and21% for all other items; 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 Tuesday, October 22, 2024, on www.Selective.com. The webcast will be available for rebroadcast until the close of business on November 21, 2024.
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
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 September 30, |
|
Year-to-Date September 30, |
|||||||||
|
2024 |
|
|
2023 |
|
2024 |
|
2023 |
||||
Net income (loss) available to common stockholders |
$ |
90.0 |
|
|
86.9 |
|
|
104.6 |
|
|
233.5 |
|
Net realized and unrealized investment (gains) losses included in net income, before tax |
|
(5.4 |
) |
|
6.9 |
|
|
(5.1 |
) |
|
9.0 |
|
Tax on reconciling items |
|
1.1 |
|
|
(1.4 |
) |
|
1.1 |
|
|
(1.9 |
) |
Non-GAAP operating income (loss) |
$ |
85.7 |
|
|
92.3 |
|
|
100.6 |
|
|
240.6 |
|
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 September 30, |
|
Year-to-Date September 30, |
|||||||||
|
2024 |
|
|
2023 |
|
2024 |
|
2023 |
||||
Net income (loss) available to common stockholders per diluted common share |
$ |
1.47 |
|
|
1.42 |
|
|
1.71 |
|
|
3.83 |
|
Net realized and unrealized investment (gains) losses included in net income, before tax |
|
(0.09 |
) |
|
0.11 |
|
|
(0.08 |
) |
|
0.15 |
|
Tax on reconciling items |
|
0.02 |
|
|
(0.02 |
) |
|
0.01 |
|
|
(0.03 |
) |
Non-GAAP operating income (loss) per diluted common share |
$ |
1.40 |
|
|
1.51 |
|
|
1.64 |
|
|
3.95 |
|
Reconciliation of Return on Common Equity to Non-GAAP Operating Return on Common Equity
|
Quarter ended September 30, |
|
Year-to-Date September 30, |
|||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Return on Common Equity |
12.6 |
|
% |
|
14.1 |
|
|
5.0 |
|
|
12.8 |
|
Net realized and unrealized investment (gains) losses included in net income, before tax |
(0.8 |
) |
|
|
1.1 |
|
|
(0.2 |
) |
|
0.5 |
|
Tax on reconciling items |
0.3 |
|
|
|
(0.2 |
) |
|
— |
|
|
(0.1 |
) |
Non-GAAP Operating Return on Common Equity |
12.1 |
|
% |
|
15.0 |
|
|
4.8 |
|
|
13.2 |
|
Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share
|
Quarter ended September 30, |
|
Year-to-Date September 30, |
|||||||||
|
2024 |
|
|
2023 |
|
2024 |
|
2023 |
||||
Book value per common share |
$ |
48.82 |
|
|
40.35 |
|
|
48.82 |
|
|
40.35 |
|
Total unrealized investment (gains) losses included in accumulated other comprehensive (loss) income, before tax |
|
2.50 |
|
|
10.38 |
|
|
2.50 |
|
|
10.38 |
|
Tax on reconciling items |
|
(0.52 |
) |
|
(2.19 |
) |
|
(0.52 |
) |
|
(2.19 |
) |
Adjusted book value per common share |
$ |
50.80 |
|
|
48.54 |
|
|
50.80 |
|
|
48.54 |
|
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 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 conditions or actions, including 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241021614542/en/
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
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