BRANCHVILLE, N.J.--(BUSINESS WIRE)--Selective to Speak at the Bank of America Securities 2026 Financial Services Conference. ...

Core Viewpoint - Selective Insurance Group, Inc. has demonstrated strong financial performance with significant earnings growth and revenue exceeding expectations, positioning itself as a key player in the property and casualty insurance sector [2][3][5]. Financial Performance - The company reported quarterly earnings of $2.57 per share, surpassing the Zacks Consensus Estimate of $2.24, and showing a substantial increase from $1.62 per share in the same quarter last year, resulting in an earnings surprise of +14.86% [2][5]. - Revenue for the quarter ending December 2025 was $1.37 billion, slightly exceeding the Zacks Consensus Estimate by 0.08%, and representing an increase from $1.26 billion reported in the same period the previous year [3][5]. Stock Performance - The current stock price for SIGI is $84.05, reflecting a minor decrease of 0.04%, with a trading range between $77.45 and $85.20 throughout the day [4]. - Over the past year, the stock has reached a high of $93.38 and a low of $71.75, with a market capitalization of approximately $5.08 billion [4]. - Piper Sandler has set a price target of $86 for SIGI, indicating a potential upside of approximately 2.32% from the current trading price [1][5].

Core Insights - Selective Insurance Group (SIGI) reported fourth-quarter 2025 operating income of $2.57 per share, slightly exceeding the Zacks Consensus Estimate by 0.3%, with a year-over-year increase of 59% [1][9] - The company's strong quarterly performance is attributed to significant underwriting income, an average renewal pure price increase, and reduced loss and loss expenses [1] Financial Performance - Total revenues reached $1.4 billion, marking an 8.3% increase from the previous year, primarily driven by higher net premiums earned and net investment income, slightly surpassing the Zacks Consensus Estimate by 0.1% [2] - Net premiums written (NPW) increased by 4% year-over-year to $1.1 billion, supported by renewal pure price increases of 8.3%, although below the estimated $1.2 billion [2] - Net investment income rose 17% year-over-year to $114 million [2] Losses and Underwriting - Net catastrophe losses were $21 million, a decline from a gain of $10.1 million a year ago, while non-catastrophe property losses decreased to $159.6 million from $178.2 million [3] - Underwriting income surged to $76 million, more than quadrupling year-over-year, with the combined ratio improving by 470 basis points to 93.8 from 98.5, outperforming the Zacks Consensus Estimate of 96.7 [3] Expense Overview - Total expenses increased by 2.8% year-over-year to $1.2 billion, primarily due to higher amortization of deferred policy acquisition costs and other expenses, aligning with estimates [4] Segment Performance - Standard Commercial Lines' NPW rose 5% year-over-year to $875.6 million, driven by average renewal pure price increases of 7.5% and a retention rate of 82%, though below the estimate of $908.4 million [5] - Standard Personal Lines' NPW fell 8% year-over-year to $95.5 million due to strategic measures to enhance profitability, with a policy count decline and an average renewal pure price increase of 15.1% [6] - Excess & Surplus Lines' NPW increased by 4% year-over-year to $158.4 million, attributed to average renewal pure price increases of 7.8%, but below the estimate of $170 million [7] Full-Year Highlights - SIGI achieved a record NPW of $4.9 billion for 2025, with net investment income increasing by 16% year-over-year [9][10] - Operating earnings for the full year reached $7.38, a 126% increase year-over-year, surpassing the consensus estimate of $7.04 [10] Financial Position - As of the end of the fourth quarter of 2025, SIGI had total assets of $15.2 billion, a 12.1% increase from December 2024 [11] - Long-term debt rose significantly by 77.6% to $901.9 million, while adjusted book value per share increased by 11.2% to $57.91 [11] Shareholder Returns - In Q4 2025, the company repurchased $30 million worth of shares, with $170 million of authorization remaining [12] - A quarterly cash dividend of 43 cents per common share is scheduled for payment on March 2, 2026 [12] 2026 Guidance - SIGI projects a GAAP combined ratio of 96.5-97.5 and anticipates after-tax net investment income of $465 million for 2026 [13]

Core Insights - Selective Insurance Group is focusing on improved profitability and strong investment results, with expectations for further margin improvement in 2026 and beyond [5] Commercial Auto - The company anticipates accident-year margins to improve in 2025 due to double-digit rate increases over multiple years, exceeding an assumed loss trend of approximately 8% [1] - However, Selective increased commercial auto casualty loss costs by nearly 6 points and raised its expected severity trend for commercial auto liability to about 10% [1] - In total, Selective strengthened commercial auto reserves by approximately $190 million in 2025, primarily related to the 2024 and 2025 accident years [1] Financial Performance - Selective reported a fourth-quarter GAAP combined ratio of 93.8%, a 4.7-point improvement from the prior-year quarter, attributed to no net prior year reserve development [3] - For the full year 2025, the combined ratio improved to 97.2% from 103% in 2024, mainly due to lower prior-year casualty reserve development and lower catastrophe losses [3] - Fourth-quarter fully diluted EPS was $2.52, up 66% year over year, and operating EPS was $2.57, up 59% [4] Underwriting and Reserves - The company experienced favorable workers' compensation development that offset unfavorable emergence in commercial and personal auto lines [2] - Net premiums written grew by 5% for the year, driven by deliberate actions to improve underwriting profitability [2] - Selective strengthened reserves for both 2024 and 2025, indicating comfort with the overall carried reserve position [2] Segment Trends - Standard Commercial Lines, the largest segment, posted a fourth-quarter combined ratio of 92.9%, with premium growth driven by a renewal pure price increase of 7.5% [7] - E&S premium grew by 4% in the quarter, with average renewal pure price increases of 7.8% [8] - Personal Lines produced a fourth-quarter combined ratio of 103%, deteriorating from 91.7% in the prior-year quarter, primarily due to catastrophe losses [9] Investment and Reinsurance - Fourth-quarter after-tax net investment income was $114 million, up 17% from a year earlier, with an average credit quality of A+ [10] - The company renewed its property catastrophe program, maintaining a $100 million retention and increasing the coverage exhaustion point to $1.5 billion [11] 2026 Outlook - Selective's 2026 guidance calls for a GAAP combined ratio of 96.5% to 97.5%, with an expected underlying improvement in Personal Lines and Commercial Lines [12][13] - After-tax net investment income is projected to be $465 million, up 10% from 2025 [12] - The company expects an operating ROE in the 14% range for 2026, supported by continued casualty pricing and mix actions [13] Strategic Focus - The company is focused on risk selection, policy pricing, claims outcomes, and the use of data, analytics, technology, and artificial intelligence as it approaches its 100th anniversary in 2026 [14]

分组1 - Selective Insurance reported quarterly earnings of $2.57 per share, exceeding the Zacks Consensus Estimate of $2.24 per share, and showing an increase from $1.62 per share a year ago, resulting in an earnings surprise of +14.86% [1] - The company posted revenues of $1.37 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.08%, and an increase from $1.26 billion year-over-year [2] - Over the last four quarters, Selective Insurance has surpassed consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 2.8% since the beginning of the year compared to the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the coming quarter is $1.95 on revenues of $1.37 billion, and for the current fiscal year, it is $7.95 on revenues of $5.6 billion [7] - The Zacks Industry Rank for Insurance - Property and Casualty is currently in the bottom 39% of over 250 Zacks industries, indicating potential challenges for the stock's performance [8]

Financial Performance - Gross premiums written for Q4 2025 were $1,318.0 million, a decrease of 7.1% from Q3 2025 and an increase of 3.3% year-over-year[8]. - Net premiums written for Q4 2025 were $1,129.5 million, reflecting a 4% increase compared to the same quarter last year[8]. - Underwriting income before tax for Q4 2025 was $76.0 million, significantly up from $16.7 million in Q3 2025[8]. - Net income available to common stockholders for Q4 2025 was $152.9 million, compared to $113.0 million in Q3 2025, marking a 35% increase[8]. - Total revenues for Q4 2025 were $1,364.9 million, up 8.6% from $1,256.4 million in Q4 2024[10]. - Net income available to common stockholders for Q4 2025 was $152.9 million, representing a 64.1% increase compared to $93.2 million in Q4 2024[10]. - Non-GAAP operating income for Q4 2025 was $156.2 million, compared to $106.7 million in Q3 2025, reflecting strong operational performance[8]. - Non-GAAP operating income for Q4 2025 was $156.2 million, a 57.0% increase from $99.6 million in Q4 2024[10]. - Year-to-date net income available to common stockholders was $457.2 million, compared to $197.8 million for the same period in 2024, representing a 131% increase[48]. Asset and Liability Management - Total assets at the end of Q4 2025 reached $15,155.7 million, up from $14,980.4 million in Q3 2025[8]. - Total assets as of December 31, 2025, were $15,155.7 million, an increase from $13,514.2 million a year earlier[12]. - Total liabilities increased to $11,546.7 million as of December 31, 2025, compared to $10,394.1 million in the previous year[12]. - Retained earnings rose to $3,500.8 million as of December 31, 2025, up from $3,139.5 million a year ago[12]. - Common stockholders' equity increased to $3,409.0 million from $2,920.1 million year-over-year, reflecting a growth of 16.7%[15]. Underwriting Performance - The GAAP combined ratio improved to 93.8% in Q4 2025, down from 98.6% in Q3 2025, indicating better underwriting performance[8]. - The combined ratio improved to 93.8% from 98.5% year-over-year, indicating better underwriting performance[19]. - The combined ratio improved to 92.9% in Q4 2025, down from 100.2% in Q4 2024, indicating better underwriting performance[22]. - The underwriting income for the quarter ended December 31, 2025, showed a loss of $36.5 million, an improvement from a loss of $113.7 million in the same quarter of 2024[25]. - The combined ratio for the quarter ended December 31, 2025, was 111.5%, down from 123.7% in the same quarter of 2024, indicating improved operational efficiency[25]. Investment Performance - Total invested assets increased to $11,302.4 million in Q4 2025, compared to $11,051.5 million in Q3 2025[8]. - Net investment income for the year-to-date was $421.2 million, compared to $362.6 million in the previous year, marking a 16.1% increase[15]. - Total net investment income after-tax for the quarter ended December 31, 2025, was $114.2 million, up from $97.3 million in the same quarter of 2024, marking a 17.5% increase[38]. - The average investment yield for total portfolio after-tax was 4.1% for the quarter ended December 31, 2025, consistent with the previous quarter[38]. - The company reported a net realized and unrealized investment gain of $4.1 million in Q4 2025, a recovery from a loss of $8.1 million in Q3 2025[48]. Dividends and Shareholder Returns - The company declared dividends of $0.43 per common share in Q4 2025, up from $0.38 in Q3 2025[8]. - Non-GAAP operating income per diluted common share for Q4 2025 was $2.57, a 47% increase from $1.75 in Q3 2025[48]. - The company reported a dividend ratio of 1.1% for the year-to-date December 31, 2025, compared to 0.1% in the same period of 2024[25]. Risk Management - Net catastrophe losses for Q4 2025 were $12.8 million, a decrease from $19.8 million in Q4 2024, reflecting better risk management[22]. - Non-catastrophe property loss and loss expenses were $110.4 million in Q4 2025, down from $124.1 million in Q4 2024, indicating improved operational efficiency[22]. - The net catastrophe losses for the quarter ended December 31, 2025, were reported at 0%, compared to 0.2% in the prior year quarter[25].

Core Viewpoint - Selective Insurance reported mixed results for Q3 2025, missing earnings estimates but showing strong year-over-year growth in operating income and total revenues [2][3]. Financial Performance - Operating income for Q3 2025 was $1.75 per share, missing the Zacks Consensus Estimate by 4.9%, but increased by 25% year over year [2]. - Total revenues reached $1.4 billion, an 8.9% increase from the previous year, driven by higher net premiums written and net investment income [3]. - Net premiums written increased by 4% year over year to $1.2 billion, with average renewal pure price decreasing by 90 basis points to 9.6% [3]. - Net investment income rose by 18% year over year to $110 million [4]. - Net catastrophe losses were $24.9 million, significantly lower than the previous year's loss of $148.8 million [4]. - Total expenses increased by 7.7% year over year to $1.2 billion, primarily due to higher loss and loss expenses [5]. Segmental Results - Standard Commercial Lines' net premiums written increased by 4% year over year to $940.8 million, with a combined ratio of 101.1 [6]. - Standard Personal Lines' net premiums written decreased by 6% year over year to $104.2 million, with a combined ratio improving to 110.1 [7]. - Excess & Surplus Lines' net premiums written increased by 14% year over year to $162.9 million, with a combined ratio improving to 76.2 [8]. Financial Update - Total assets at the end of Q3 2025 were $15 billion, an 11% increase from December 2024 [10]. - Long-term debt surged by 78% to $902.3 million, with a debt-to-total capitalization ratio of 20.5% [10]. - Adjusted book value per share increased by 12% year over year to $54.46 [10]. - Operating return on common equity was 13.2%, up 110 basis points year over year [10]. Shareholder Returns - The company repurchased $36 million worth of shares in Q3 2025 [11]. - A quarterly cash dividend of 43 cents per share was authorized, marking a 13% increase and the 12th consecutive annual increase [11]. - A new share repurchase program was authorized for up to $200 million, effective from October 27, 2025 [12]. Guidance - The company estimates a GAAP combined ratio of 97% to 98% for 2025 [13]. - After-tax net investment income is estimated at $420 million, up from previous guidance of $415 million [13]. Market Position - Selective Insurance has a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [16]. - The stock has a Growth Score of B, a Momentum Score of F, and a Value Score of A, placing it in the top 20% for value investors [15].

Core Insights - Selective Insurance has announced the retirement of Vincent Senia from his position as Executive Vice President & Chief Actuary [1] Company Summary - Vincent Senia has been a key figure in the company, serving as Executive Vice President & Chief Actuary [1] - The retirement announcement indicates a transition in leadership within Selective Insurance, which may impact its actuarial strategies and overall operations [1]

Core Viewpoint - Selective Insurance Group, Inc. has appointed Julie Parsons as an Independent Director to its Board, effective November 3rd, 2025, enhancing the board's expertise in the insurance sector [1][2]. Group 1: Board Composition - The Board of Directors now consists of 12 members, with 11 being independent directors following the appointment of Parsons [2]. Group 2: Julie Parsons' Background - Julie Parsons is an industry veteran with over 30 years of experience at Allstate Corporation, where she held various senior roles, including Executive Vice President and Chief Operating Officer for Property and Liability Insurance [2][3]. - Her career began as an actuarial analyst, and she progressed through multiple senior product management positions, ultimately becoming Allstate's first VP, Chief Actuary [3]. Group 3: Strategic Impact - John J. Marchioni, Chairman, President, and CEO of Selective, expressed that Parsons' operational experience in both commercial and personal lines, along with her product and actuarial expertise, will significantly benefit the company as it pursues its long-term objectives [4]. - Parsons emphasized her excitement about joining the Board and her commitment to guiding Selective's growth and delivering sustainable value for shareholders and stakeholders [5].

Core Insights - Brennan Patrick Sean, the Executive Vice President and CFO of Selective Insurance Group, purchased 2,700 shares valued at approximately $205,700 on October 24, 2025, increasing his direct ownership to 17,948 shares, valued at around $1.39 million [1][2][3] Transaction Summary - The transaction involved 2,700 shares traded at a price of $76.17 per share, resulting in a total transaction value of approximately $205,700 [2] - Post-transaction, Sean's direct ownership represents about 0.03% of the outstanding shares [3] Historical Activity - Between October 3, 2024, and October 24, 2025, Sean completed four reportable transactions, all net purchases, accumulating an additional 5,700 shares, which is a 46.54% increase in direct holdings over that period [4] Market Context - The shares were purchased at approximately $76.17, which is about 0.7% above the market price of $75.61 as of October 28, 2025. The shares have seen a total return decline of 16.0% over the year ending October 28, 2025 [5] Company Overview - Selective Insurance Group reported a total revenue of $5.22 billion and a net income of $406.67 million for the trailing twelve months (TTM) [7] - The company has a dividend yield of 1.65% and experienced a 1-year price change of -15.95% as of October 24, 2025 [7] Business Operations - Selective Insurance Group provides property, casualty, and flood insurance products, along with investment management services, targeting commercial, personal, and excess & surplus lines [8][9] - The company generates revenue primarily from insurance premiums and investment income from its portfolio [8] Recent Performance - In the third quarter of 2025, Selective Insurance Group reported a 4% year-over-year increase in net premiums written, with an improvement in the combined ratio from 99.5% to 98.6% [10] - Management anticipates further improvement in the combined ratio, projecting a midpoint of 97.5% and a return on equity of approximately 14% for the full year [11] Dividend Growth - Selective Insurance has increased its quarterly dividend by 13% this year, with long-term investors seeing a 72% rise in quarterly payouts over the past five years [12]