Selective Insurance Group shares fall 18.17% intraday after Q2 earnings miss analyst expectations and inflation impacts.

Selective Insurance Group, Inc. plunged 18.17% intraday after reporting Q2 earnings of $1.31 per share, missing analyst expectations of $1.46, and a combination ratio of 100.2%, higher than expected 98.5%, indicating underperforming underwriting profitability. The company also acknowledged that social inflation has increased the severity of losses, driving unfavorable prior-year reserve development, with commercial lines generating a $45 million loss due to reserve additions.