Branchville, NJ – Selective Insurance Group, Inc. (NASDAQ: SIGI) recently reported financial results for the second quarter ended June 30, 2023, with net income per diluted common share of $0.92 and non-GAAP operating income1 per diluted common share of $0.99. The second quarter combined ratio was 100.2%, including 10.6 points of catastrophe losses. Elevated catastrophe losses impacted each of our underwriting segments, driven mainly by storms affecting our Midwest and East Coast footprint states.
In the quarter, NPW grew 17% from a year ago with renewal pure price increases, exposure growth, stable retention, and strong new business. The investments segment generated 12.6 points of annualized ROE in the quarter, benefiting from higher interest rates and our active portfolio management.
“We delivered exceptional growth in the quarter, and I am pleased with our team’s commitment to serving customers through many challenging weather events. Despite these elevated catastrophe losses, we benefited from our consistent, disciplined underwriting and excellent distribution partner relationships. We continue to execute our long-term strategy for profitable growth,” said John J. Marchioni, Chairman, President and Chief Executive Officer.
“Our unique operating model, with regionally-based underwriting, claims, and safety management professionals, is a competitive differentiator for Selective, enabling us to navigate successfully through various market environments,” added Mr. Marchioni.
Mr. Marchioni concluded, “We are well-positioned, with a strong balance sheet, sophisticated underwriting capabilities, and robust risk management, to deliver profitable growth through our existing distribution partners and state footprint expansion.”
Overall Insurance Operations
For the second quarter, overall NPW increased 17%, or $154 million, from a year ago reflecting robust new business and effective management of our renewal portfolio. Average renewal pure price increased 6.4%, with strong retention and exposure growth. Our 100.2% combined ratio in the quarter was up from 95.5% a year ago, driven principally by higher catastrophe losses and lower prior year favorable casualty reserve development. Catastrophe losses totaled $100.0 million pre-tax in the quarter, up from $45.6 million in the second quarter of 2022. Results in the current quarter were impacted by 19 named events, with no single storm large enough to attach to our catastrophe reinsurance treaty. Prior year favorable casualty reserve development totaled $3.5 million, including $7.5 million from our workers compensation line of business that was partially offset by $4.0 million of unfavorable development in our personal auto line of business. In the second quarter of 2022, prior year favorable casualty reserve development totaled $12.0 million.
The complete results release is available here: Selective Reports Second Quarter 2023 Results (PDF)
Source: Selective