Selective(US:SIGI)2025-04-25 16:06Financial Performance - Revenues for Q1 2025 reached $1,285,186, a 10% increase from $1,164,959 in Q1 2024[73] - After-tax net investment income rose to $95,621, reflecting a 12% increase compared to $85,640 in the previous year[73] - Net income available to common stockholders increased by 34% to $107,596 from $80,218 in Q1 2024[73] - Non-GAAP operating ROE for Q1 2025 was 14.4%, exceeding the 12% target and up from 11.7% in Q1 2024[75] - Net Premiums Written (NPW) increased by 7% to $1,240,443, and Net Premiums Earned (NPE) grew by 10% to $1,158,757 in Q1 2025 compared to Q1 2024[81] - Underwriting income rose significantly by 140% to $45,637 in Q1 2025, compared to $19,031 in Q1 2024[81] - Net cash provided by operating activities increased to $284.0 million in First Quarter 2025, compared to $114.2 million in First Quarter 2024[154] Combined Ratio and Underwriting Performance - The combined ratio improved to 96.1%, down 2.1 points from 98.2% in Q1 2024[73] - The combined ratio improved to 96.1%, down from 98.2%, reflecting a 2.1-point decrease year-over-year[81] - The combined ratio improved by 2.6 points to 97.3% in Q1 2025, reflecting a decrease in the loss and loss expense ratio to 66.6%[102] - The loss and loss expense ratio for Standard Commercial Lines improved to 63.8%, down from 66.7% in Q1 2024[91] - The combined ratio for Commercial Property decreased by 10.2 points to 83.9% in Q1 2025, with net catastrophe losses significantly lower at $16.4 million[104] - The combined ratio for Workers Compensation increased by 26.6 points to 105.9% in Q1 2025, impacted by higher current year casualty loss costs[106] - The loss and loss expense ratio for Standard Personal Lines improved by 7.3 points to 73.9% in Q1 2025, aided by a favorable prior year casualty reserve development of $5 million[110] - The combined ratio for E&S Lines increased by 4.9 points to 92.5% in Q1 2025, with loss and loss expense incurred rising by 37% to $87,990[113] Business Growth and Strategy - New business moderated as rate increases accelerated, but policy retention remained strong[79] - The company added 30 agency locations in Q1 2025, contributing to a net increase of 200 agency locations in 2024[79] - The company expects to write new business in Kansas, Montana, and Wyoming by the end of 2026[80] - Overall renewal pure pricing across insurance segments was 10.3%, up 2.2 points from the previous year[80] - The thirteen states added since 2017 produced $350 million in premium, representing approximately 10% of Standard Commercial Lines NPW[80] Investment Performance - Total invested assets grew by 7% to $10,295,310 thousand as of March 31, 2025, up from $9,651,297 thousand at December 31, 2024[119] - Net investment income earned increased by 12% to $95,621 thousand in Q1 2025 from $85,640 thousand in Q1 2024[121] - Net unrealized losses before tax decreased by 26% to $(232,510) thousand in Q1 2025 from $(314,680) thousand in Q1 2024[119] - The annualized after-tax yield on the investment portfolio decreased slightly to 3.8% in Q1 2025 from 3.9% in Q1 2024[121] - Net unrealized gains on equity securities increased by 52% to $1,050,000 in Q1 2025 from $692,000 in Q1 2024[122] Capital Management - The company maintains a solid capital base and high-quality underwriting portfolio, enhancing financial strength and underwriting capacity[152] - The company may take various actions to manage capital, including contributing capital to Insurance Subsidiaries and repurchasing shares[151] - The company issued $400 million of 5.90% Senior Notes due 2035, resulting in net proceeds of $395.9 million, which includes a $200 million capital contribution to the Insurance Subsidiaries[139] - The company repurchased 233,611 shares of common stock for $19.4 million, with $56.1 million of remaining capacity under the share repurchase program as of March 31, 2025[140] - As of March 31, 2025, the company had GAAP stockholders' equity of $3.3 billion and a debt-to-capital ratio of 21.7%[144] Tax and Regulatory - Federal income tax expense for Q1 2025 was $28,990,000, up from $20,048,000 in Q1 2024, resulting in an effective tax rate of 21.2%[123]