Branchville, NJ – Selective Insurance Group, Inc. (NASDAQ: SIGI) recently reported financial results for the first quarter ended March 31, 2022, with net income per diluted common share of $0.89 and non-GAAP operating income1 per diluted common share of $1.41.
The first quarter combined ratio was a profitable 93.1%, the non-GAAP operating ROE was 12.8%, and NPW increased 11% from a year ago. NPW increased 29% in our E&S segment and 11% in our Standard Commercial Lines segment, with the growth driven by renewal pure price increases, higher retention, exposure growth, and strong new business growth. For the quarter, the Investments segment contributed 8.7 points of annualized ROE.
“Our consistent and strong results are a testament to our constant focus on profitable growth and underwriting discipline. Each of our insurance segments reported solid underwriting results for the quarter, and Investments was a strong contributor to non-GAAP operating income,” said John Marchioni, President and CEO.
“We continue to execute on our strategic priorities and enhance our market position. Our decade-long track record of successfully balancing our growth and profitability objectives positions us well in the current environment. Our balance sheet remains strong, and we are confident in our ability to effectively navigate the challenges faced by our industry. Despite greater uncertainty as a result of higher loss trends and increased financial market volatility, we are well positioned to continue generating strong returns on an absolute and relative basis,” continued Mr. Marchioni.
- Net premiums written (“NPW”) increased 11% compared to first quarter of 2021;
- GAAP combined ratio of 93.1%;
- Overall renewal pure price increases averaged 4.6%;
- After-tax net investment income of $59 million, up 4% compared to first quarter of 2021;
- Book value per common share of $42.73, down 8% in the first quarter; and
- Adjusted book value per common share¹ of $43.80, up 1% in the first quarter.
Overall Insurance Operations
For the first quarter, overall NPW increased 11% from a year ago, reflecting average renewal pure price increases of 4.6%, stronger retention, and new business growth of 14%. Our combined ratio was 93.1% in the quarter, up from 89.3% a year ago, driven primarily by higher non-catastrophe property losses and less favorable prior year casualty reserve development, partially offset by lower catastrophe losses. Our Insurance Operations generated 6.6 points of annualized ROE in the quarter.
The complete results release is available here: Selective Insurance Group First Quarter 2022 Results (PDF)