Selective Insurance Q2 net premiums rise
Overview
Selective Insurance Q2 net premiums written up 5% yr/yr
GAAP combined ratio improves to 100.2% from 116.1% last year
Net income per share at $1.36, non-GAAP operating income at $1.31
Outlook
Selective sees full-year GAAP combined ratio of 97% to 98%
Company expects after-tax net investment income of $415 mln for 2025
Selective anticipates effective tax rate of 21.5% for 2025
Company projects weighted average shares of 61.5 mln, assuming no repurchases
Result Drivers
PREMIUM GROWTH - NPW increased 5% driven by renewal pure price increases of 9.9%
INVESTMENT INCOME - Net investment income rose 18% to $101 mln, contributing to ROE
RESERVE DEVELOPMENT - Unfavorable prior year casualty reserve development impacted results, with $45 mln reserve strengthening
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Premiums Written | $1.29 bln | ||
Q2 Net Income | $83.60 mln | ||
Q2 Adjusted ROE | 10.3% | ||
Q2 Combined Ratio | 100.2% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for Selective Insurance Group Inc is $94.00, about 3.3% above its July 22 closing price of $90.91
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
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