Selective Insurance Group reported solid first quarter results for 2025, delivering net income and non-GAAP operating income of $1.76 per diluted share, driven by strong underwriting results, double-digit premium growth, and rising investment income.
The insurer posted a 14.4% return on equity (ROE) and a GAAP combined ratio of 96.1%, reflecting improved underwriting profitability across its segments.
Chairman and CEO John J. Marchioni emphasized the strength of Selective’s underwriting portfolio and pricing strategy. “Total renewal pure price increased to 10.3%, up from 8.1% a year ago,” Marchioni said.
Standard commercial lines, representing 81% of NPW, saw an 8% increase in premiums with a combined ratio of 96.4%. Notably, general liability pricing accelerated to 12% from 10.6% in Q4 2024. Meanwhile, excess and surplus lines grew by 20% and maintained a strong underwriting result despite elevated catastrophe losses, posting a combined ratio of 92.5%.
Standard personal lines contracted by 12% as the company deliberately slowed growth to improve profitability. However, underwriting results improved substantially, with the combined ratio dropping to 98.0%, down 7.1 points year-over-year.
Selective also completed a $400 million senior note issuance during the quarter, enhancing liquidity and enabling continued investment in organic growth.
Segment Performance Snapshot
|
Segment |
NPW Growth |
Combined Ratio |
Notes |
|---|---|---|---|
|
Standard Commercial Lines |
+8% |
96.4% |
Pricing and retention stable |
|
Standard Personal Lines |
-12% |
98.0% |
Profit-focused pullback |
|
Excess & Surplus Lines |
+20% |
92.5% |
Strong new business, pricing gains |
Investment returns continued to support overall profitability, with an average after-tax yield of 3.8%. Investment income contributed 12.8 points to annualised ROE, and invested assets rose to $10.3 billion. Book value per share grew 5% quarter-over-quarter, supported by both strong earnings and improved market valuations of fixed income securities.
“With stable underwriting results, sound risk selection, and a robust capital position, we are well-positioned to deliver strong, long-term value for our shareholders.” Marchioni said.
The company’s quarterly analyst conference call is scheduled for April 24 and will be available via webcast at Selective.com.
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