Why Is Selective Insurance (SIGI) Up 4% Since Last Earnings Report?

Core Viewpoint - Selective Insurance Group, Inc. reported a decline in Q3 earnings, missing estimates, while increasing its dividend and showing revenue growth driven by higher premiums and investment income [2][3][11]. Financial Performance - Q3 2024 operating income was $1.40 per share, missing the Zacks Consensus Estimate by 17.1% and down 7% year-over-year [2]. - Total revenues reached $1.2 billion, a 13.9% increase from the previous year, but missed estimates by 0.4% [3]. - Net premiums written (NPW) increased 9% year-over-year to $1.15 billion, driven by renewal price increases and stable retention [3]. - Net investment income rose 17% year-over-year to $117.8 million, exceeding estimates [3]. Underwriting and Losses - After-tax net underwriting income fell 83% year-over-year to $4.1 million, with pre-tax catastrophe losses more than doubling to $148.8 million [4]. - The combined ratio deteriorated to 99.5, an increase of 270 basis points year-over-year, primarily due to elevated catastrophe losses [4]. Segment Performance - Standard Commercial Lines NPW increased 8% year-over-year to $903.9 million, with a combined ratio of 99.2 [6]. - Standard Personal Lines NPW decreased 2% year-over-year to $111 million, with retention dropping to 75% [7]. - Excess & Surplus Lines NPW rose 28% year-over-year to $142.7 million, with a combined ratio improving to 83.2 [8]. Financial Position - Total assets were $13.4 billion, down 14% from December 2023, while long-term debt increased 1% to $508.2 million [9]. - Book value per share was $48.82, up 9% year-over-year, with an annualized non-GAAP operating return on equity of 12.1% [10]. Shareholder Returns - The company repurchased shares worth $8.7 million and announced a 9% increase in the quarterly cash dividend to 38 cents per share [11]. Guidance - The company estimates a GAAP combined ratio of 102.5% for 2024, reflecting an increase in expected net catastrophe losses [12]. Market Position - Selective Insurance is part of the Zacks Insurance - Property and Casualty industry, with a Zacks Rank 3 (Hold) indicating an expected in-line return in the coming months [15].