Selective Insurance Releases Second Quarter 2024 Financial Results

Selective Insurance Group recently unveiled its financial results for the second quarter of 2024, ending on June 30. The report disclosed a net loss per diluted common share of $1.08 and a non-GAAP operating loss per diluted common share of $1.10. In addition, the insurer revealed a combined ratio of 116.1% for the quarter.

Moreover, there was a notable uptick in the net unfavorable prior year casualty reserve development by $176 million, driven by catastrophe losses amounting to $91 million. This surge resulted in an 8.4-point escalation in the combined ratio.

Nevertheless, despite these setbacks, the insurer experienced a commendable 13% year-over-year growth in net premium written (NPW) across all three insurance segments. John J. Marchioni, who serves as the chairman, president, and CEO of Selective Insurance Group, acknowledged the challenging nature of the quarter, with underwriting performance falling short of expectations.

He attributed the adverse prior year casualty reserve development to increased loss emergence associated with social inflation. Marchioni underscored the insurer's unwavering commitment to risk selection, pricing, and claims management amidst the challenging operating landscape. He also highlighted a steady underwriting portfolio and a renewal pure price increase of 9.

1% across all insurance segments in the quarter. Despite the hurdles faced, the insurer's capital position remains robust, boasting an underlying combined ratio of 91.4%.

Marchioni expressed optimism in swiftly regaining a strong earnings profile and achieving the targeted 12% operating return on equity (ROE).