Selective Insurance Group Reports Q3 Earnings Below Expectations

BRANCHVILLE, N.J. – Selective Insurance Group, Inc. (NASDAQ:SIGI) reported third-quarter earnings that fell short of analyst expectations due to an increase in catastrophe losses driven by an active storm season.

The property and casualty insurer posted adjusted earnings per share of $1.40 for Q3, missing the analyst consensus estimate of $1.66. Revenue reached $1.24 billion, exceeding expectations of $1.17 billion.

Selective's combined ratio, which measures underwriting profitability, worsened to 99.5%, up from 96.8% a year prior. Catastrophe losses contributed 13.4 points to the combined ratio, markedly rising from 6.6 points in Q3 2023.

John J. Marchioni, Chairman, President, and CEO, stated: "The continued frequency and severity of storms in the third quarter, including the devastation from Hurricane Helene, underscore our unwavering commitment to our customers, agency partners, and communities."

Net premiums written increased 9% year-over-year to $1.16 billion, fueled by renewal pure price increases averaging 10.5%.

For the full year 2024, Selective adjusted its projected GAAP combined ratio to 102.5%, up from 101.5%, reflecting increased Q3 catastrophe losses. The company retained its after-tax net investment income forecast of $360 million.

Selective's board also approved a 9% increase in the quarterly cash dividend to $0.38 per share.

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