Selective Insurance (SIGI) Reports Q4 Earnings: What Key Metrics Have to Say

Core Insights - Selective Insurance reported revenue of $1.26 billion for the quarter ended December 2024, reflecting a year-over-year increase of 14.4% [1] - The company's EPS was $1.62, down from $1.94 in the same quarter last year, indicating a decline in profitability [1] - The reported revenue fell short of the Zacks Consensus Estimate of $1.28 billion, resulting in a surprise of -0.99% [1] - EPS also missed the consensus estimate of $1.98, leading to an EPS surprise of -18.18% [1] Financial Performance Metrics - Underwriting expense ratio was reported at 30.6%, matching the five-analyst average estimate [4] - Combined ratio stood at 98.5%, higher than the five-analyst average estimate of 96.1% [4] - Loss and loss expense ratio was 67.8%, compared to the five-analyst average estimate of 65.3% [4] - Standard Commercial Lines combined ratio was 100.2%, exceeding the three-analyst average estimate of 96.2% [4] - Standard Personal Lines combined ratio was 91.7%, better than the three-analyst average estimate of 102% [4] - Excess and Surplus Lines combined ratio was 93.1%, above the three-analyst average estimate of 85.2% [4] Revenue Breakdown - Net premiums earned totaled $1.13 billion, slightly below the $1.15 billion average estimate from five analysts, with a year-over-year increase of 13.2% [4] - Net investment income earned was $122.80 million, surpassing the five-analyst average estimate of $119.38 million, reflecting a year-over-year change of 24.5% [4] - Excess and Surplus Lines net premiums earned reached $141.30 million, exceeding the four-analyst average estimate of $134.43 million, with a year-over-year increase of 30.7% [4] - Standard Commercial Lines net premiums earned were $884.60 million, below the four-analyst average estimate of $904.13 million, with a year-over-year increase of 11.7% [4] - Other income was reported at $8.50 million, significantly higher than the $5.53 million estimated by four analysts, representing a year-over-year change of 54.6% [4] - Standard Personal Lines net premiums earned were $107.10 million, lower than the $113.58 million average estimate from four analysts, with a year-over-year increase of 6% [4] Stock Performance - Shares of Selective Insurance returned +1.8% over the past month, slightly outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]