Why Is Selective Insurance (SIGI) Up 2.8% Since Last Earnings Report?

Core Viewpoint - Selective Insurance reported a mixed performance in its fourth-quarter earnings, with operating income missing estimates and a decline in underwriting income, while total revenues increased year-over-year [2][3][4]. Financial Performance - The fourth-quarter operating income was $1.62 per share, missing the Zacks Consensus Estimate by 18.1% and down 16% from the previous year [2]. - Total revenues reached $1.3 billion, a 14.4% increase from the prior year, but fell short of the Zacks Consensus Estimate by 1% [3]. - Net premiums written (NPW) rose 10% year-over-year to $1.1 billion, driven by a 10.7% increase in average renewal pure price [3]. - After-tax net investment income grew 24% year-over-year to $97 million [3]. Underwriting and Losses - After-tax net underwriting income was $13.3 million, a significant decrease of 73.5% year-over-year [4]. - The combined ratio deteriorated by 480 basis points to 98.5%, while the loss and loss expense ratio worsened by 540 basis points to 67.8% [4]. - Total expenses increased by 19.2% year-over-year to $1.1 billion, primarily due to higher loss and loss expenses [4]. Segment Performance - Standard Commercial Lines NPW increased by 9% year-over-year to $833.4 million, with a combined ratio of 100.2% [5]. - Standard Personal Lines NPW decreased by 3% year-over-year to $103.6 million, with a combined ratio improving to 91.7% [6]. - Excess & Surplus Lines NPW rose by 27% year-over-year to $152.6 million, with a combined ratio of 93.1% [7]. Full-Year Highlights - Full-year operating earnings were $3.27 per share, down 44% year-over-year, with NPW reaching a record $4.6 billion, up 12% [8]. - The combined ratio for the year deteriorated by 650 basis points to 103% [8]. Financial Position - As of December 31, 2024, total assets were $13.5 billion, a 15% increase from the end of 2023 [9]. - Book value per share increased by 6% year-over-year to $47.99 [9]. Shareholder Returns - In 2024, the company repurchased shares worth $8.7 million and declared a quarterly cash dividend of 38 cents per share [10]. Guidance - For 2025, the company estimates a GAAP combined ratio of 96% to 97% and after-tax net investment income of $405 million [11]. Market Position - Selective Insurance has seen downward revisions in estimates, leading to a Zacks Rank of 4 (Sell) [14].