Core Viewpoint - Selective Insurance Group is experiencing elevated casualty severity trends post-pandemic, with assumptions around 9% overall and closer to 10% excluding workers' compensation, indicating a shift in claims patterns that the company believes is persistent rather than temporary [1] Financial Performance and Strategy - The CFO noted a significant increase in the technology budget, which has more than doubled compared to 2023, aimed at enhancing data-driven decision-making and pricing precision [2] - The company expects improvement in underwriting performance, with a combined ratio framework indicating better results in 2026, supported by a written rate of approximately 9.5% over the last two years, exceeding trend assumptions of 7% to 7.5% [13] Reserving and Claims Management - The company has taken proactive reserving actions, particularly in General Liability for 2024 and Commercial Auto Liability for 2025, in response to emerging trends such as lawsuit abuse and social inflation [5][6] - Selective conducts independent reviews of its reserves, with findings indicating that its carried reserves are above one firm's central estimate, validating the company's reserving practices [8] Market Dynamics and Risk Factors - New Jersey has been identified as a significant driver for reserve adjustments, representing about 30% of premium in Personal Auto and 15% in Commercial Auto, with higher susceptibility to social inflation due to various judicial and regulatory factors [9][11] - The company emphasizes the importance of not overreacting to single data points, evaluating a range of factors to avoid misinterpretation of claims trends [7] Growth and Diversification - Selective is expanding its commercial lines footprint from 22 states to 36, with plans to reach 40, and has seen growth in excess and surplus lines, which now constitute 13% of the business [14] - The company is shifting its focus in Personal Lines from mass market to mass affluent customers, with average home values for new business around $1 million [14] Capital Management - Selective has been active in share repurchases, targeting a return of 20% to 25% of earnings over the long term through dividends, having returned approximately $100 million to shareholders in 2025 [16]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Investment Income and Revenue - Net investment income consists primarily of interest earned on fixed income investments, dividends on equity securities, and income from alternative investments, partially offset by investment expenses[28]. - The company generates revenue primarily from one-year term insurance policies, with significant costs associated with loss and loss expenses for covered events[29]. - The company aims to maximize its investment portfolio's economic value by maintaining a well-diversified portfolio and achieving stable, risk-adjusted after-tax net investment income[73]. Expansion and Market Presence - The company expects to enter Montana and Wyoming by the end of 2026, following its recent expansion into Kansas in 2025[38]. - The company has approximately 1,680 distribution partners selling standard lines products through about 2,940 office locations[45]. - The company introduced a new specialty lines construction division in 2025, investing in operational efficiency and expanding distribution capabilities[64]. Technology and Innovation - The company employs predictive models, including traditional AI, to enhance underwriting and pricing processes for its insurance products[36]. - The company utilizes technology investments to improve operational efficiency and decision-making speed, leveraging AI and cloud-based solutions[49]. - The company has established a dedicated innovation team to enhance its culture of innovation and monitor industry trends, aiming to deliver long-term value to customers and partners[55]. Risk Management - The company employs 88 field-based Risk Management Specialists to support policyholders, enhancing underwriting decisions and risk management programs[58]. - The company has executed a multi-year claims system modernization strategy to improve claims processing efficiency and customer experience, expecting reduced cycle times and costs[66]. - The company’s risk governance structure includes multiple committees overseeing various risk categories, ensuring comprehensive risk management[98]. Financial Health and Compliance - The Insurance Subsidiaries consistently met most IRIS ratio tests, indicating strong financial health[79]. - All Insurance Subsidiaries had total adjusted capital substantially exceeding the NAIC-required capital level based on 2025 statutory financial statements[79]. - The Group Capital Calculation (GCC) ratio exceeded the regulatory action minimum threshold, providing additional analytical information for assessing group risks[79]. Employee Engagement and Workplace Culture - The company has approximately 2,800 employees and was recognized as a Great Place to Work Certified organization for the sixth consecutive year[100]. - The company is committed to maintaining competitive compensation and analyzing internal equity to attract and retain talent[101]. - Women represented 57% of the non-officer workforce and 37% of the officer workforce, with ethnic diversity consistent with national averages for financial services[108]. Sustainability and Environmental Impact - The company integrates sustainability principles into its business, focusing on employee development and addressing climate change impacts[99]. - The company generated approximately 3.3 million kWh of electricity from solar photovoltaic systems in 2025, which were sold to others[122]. - The company prohibits new direct equity or debt investments in thermal coal enterprises, reflecting its commitment to sustainability[120]. Employee Development and Training - The company is committed to ongoing employee learning and development, with programs aimed at talent retention and leadership preparation[105]. - The company employs inclusive leadership training for newly promoted officers and managers to foster a diverse workplace culture[107]. - The company offers competitive health and wellness programs, including a 401(k) plan with employer matching contributions and tuition reimbursement programs[102]. Operational Continuity - The company employs robust plans for operational continuity, including business continuity plans for key data processing facilities[122]. - The company has a robust business continuity plan to ensure operational continuity during unforeseen events, reviewed and tested annually[122]. - The established catastrophic risk tolerance requires that no more than 10% of stockholders' equity be exposed to a loss from a hurricane event at a 99.6% confidence level[119].

Group 1 - Selective (SIGI) is a property and casualty insurance carrier that experienced deteriorated underwriting performance in 2024, with a combined ratio exceeding 100% [1] - The company has taken measures in pricing and underwriting to address its performance issues [1] Group 2 - The CrickAnt is an actuary for an insurance company who analyzes insurance and reinsurance companies, contributing to the Cash Flow Club, which focuses on company cash flows and access to capital [1]

Core Viewpoint - Selective will participate in the Bank of America Securities 2026 Financial Services Conference, indicating its engagement with key financial stakeholders and potential investors [1] Company Summary - The participation in the conference highlights Selective's commitment to transparency and communication with the investment community [1]

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].