Selective(SIGI) - 2024 Q4 - Annual Results

Premiums and Revenues - Gross premiums written for Q4 2024 were $1,275.9 million, an increase of 11% compared to $1,149.7 million in Q4 2023[8] - Net premiums written for Q4 2024 reached $1,089.6 million, reflecting a 10% increase from $991.5 million in the same quarter last year[8] - Net premiums earned for Q4 2024 increased to $1,133.0 million, up from $1,001.2 million in Q4 2023, representing a growth of 13.1% year-over-year[11] - Total revenues for Q4 2024 reached $1,256.4 million, a 13.1% increase compared to $1,110.7 million in Q4 2023[11] - Year-to-date net premiums written for 2024 reached $3,632.1 million, a 10.7% increase from $3,281.3 million in 2023[22] Underwriting Performance - Underwriting income before tax for Q4 2024 was $16.8 million, a significant recovery from a loss of $173.7 million in Q2 2024[8] - The GAAP combined ratio improved to 98.5% in Q4 2024 from 116.1% in Q2 2024, reflecting better underwriting performance[8] - The combined ratio for Q4 2024 improved to 98.5%, down from 116.1% in Q2 2024, indicating better underwriting performance[19] - The combined ratio for Q4 2024 was 100.2%, slightly up from 93.1% in Q4 2023, primarily due to increased loss expenses[22] - The underwriting income for Q4 2024 was a loss of $1.8 million, a decline from a profit of $54.9 million in Q4 2023[22] Investment Income - Net investment income earned before tax was $122.8 million in Q4 2024, up from $98.6 million in Q4 2023, marking a 24% increase[8] - The net investment income earned in Q4 2024 was $122.8 million, up from $98.6 million in Q4 2023, indicating a growth of 24.5%[11] - Total net investment income after-tax for Q4 2024 was $97.3 million, up from $78.4 million in Q4 2023, representing a 24.1% increase[40] - Investment income for the year-to-date 2024 reached $478.1 million, compared to $406.9 million for the same period in 2023, reflecting a 17.5% growth[40] Net Income and Stockholder Equity - Net income available to common stockholders for Q4 2024 was $93.2 million, compared to $122.5 million in Q4 2023, indicating a decrease of 24%[8] - Net income available to common stockholders for Q4 2024 was $93.2 million, compared to $122.5 million in Q4 2023, reflecting a decrease of 23.9%[11] - Stockholders' equity increased to $3,120.1 million in Q4 2024, compared to $2,954.4 million in Q4 2023, representing a growth of 5.6%[8] - The company’s total stockholders' equity as of Dec. 31, 2024, was $3,120.1 million, an increase from $2,954.4 million year-over-year, representing a growth of 5.6%[13] Loss Ratios and Expenses - The loss and loss expense ratio for Q4 2024 was 67.8%, an improvement from 85.7% in Q2 2024[8] - Total expenses for Q4 2024 were $1,137.3 million, up from $953.7 million in Q4 2023, marking an increase of 19.3%[11] - Losses and loss expenses incurred in Q4 2024 totaled $606.3 million, compared to $482.6 million in Q4 2023, indicating a significant increase of 25.6%[22] - The loss and loss expense ratio for Q4 2024 was 68.5%, compared to 61.0% in Q4 2023, reflecting higher claims costs[22] Assets and Book Value - Total assets at the end of Q4 2024 were $13,514.2 million, up from $11,802.5 million at the end of Q4 2023[8] - Total assets as of Dec. 31, 2024, amounted to $13,514.2 million, up from $11,802.5 million in the previous year, reflecting a growth of 14.5%[13] - The book value per common share increased to $47.99 as of December 31, 2024, compared to $45.42 a year earlier, marking a growth of 5.5%[50] Direct Business and Pricing - Direct new business written in Q4 2024 amounted to $232.0 million, consistent with $232.7 million in Q4 2023[19] - Renewal pure price increases for Q4 2024 were 8.8%, up from 7.3% in Q4 2023, indicating improved pricing power[22] - Direct new business for the quarter was $13.3 million, down from $26.0 million in the same quarter of 2023[31] - The company achieved a renewal pure price increase of 27.3% for the quarter, compared to 8.9% in the same quarter of 2023[31] Other Financial Metrics - The effective tax rate on net investment income was 20.7% for Q4 2024, unchanged from the previous quarter[40] - Non-GAAP operating income for Q4 2024 was $99.6 million, up from $81.5 million in Q4 2023, representing an increase of 22.2%[50] - Non-GAAP operating return on equity (ROE) for Q4 2024 was 13.5%, compared to 11.7% in Q4 2023[50]