Selective Insurance Reports Fourth Quarter and Year-End 2024 Results

Selective Insurance Group, Inc. (NASDAQ: SIGI) reported financial results for the fourth quarter and year-end 2024, with net income of $1.52 per diluted common share and non-GAAP operating income of $1.62 per diluted common share. The company achieved a 10% increase in net premiums written (NPW) and a 10.7% increase in renewal pure price increases, driven by strong market positioning and aggressive pricing strategy. Despite these positive developments, Selective faced challenges with $100 million in net unfavorable prior year casualty reserve development, which increased the combined ratio by 8.8 points. The company also announced a 27.3% renewal pure price increase in Personal Lines and maintained an 85% retention rate in Standard Commercial Lines, indicating strong market acceptance and pricing power.

Selective's 10% increase in NPW and 10.7% renewal pure price increases reflect the company's strong market positioning and aggressive pricing strategy. The significant renewal pure price increase in Personal Lines (27.3%) and the high retention rate in Standard Commercial Lines (85%) demonstrate strong market acceptance and pricing power for Selective. However, the $100 million net unfavorable prior year casualty reserve development highlights the ongoing challenges with social inflation and its impact on liability claims. This development increased the combined ratio by 8.8 points, indicating the significant pressure on the company's reserves.

In conclusion, Selective Insurance Group's fourth quarter and year-end 2024 results reflect a complex operational picture with significant implications for investors. The 10% NPW growth and 10.7% Commercial Lines pricing demonstrate strong market positioning, but the $100 million casualty reserve charge signals ongoing challenges with social inflation. The company's aggressive pricing actions, particularly the 27.3% renewal pure price increases in Personal Lines, reflect a determined response to profitability pressures. The Standard Commercial Lines segment, representing 76% of NPW, maintained a healthy 85% retention rate despite significant price increases, indicating strong market acceptance and pricing power. Investment performance stands out as a bright spot, with after-tax net investment income increasing 24% to $97 million. The 2025 guidance of 96-97% combined ratio suggests management expects significant improvement from 2024's 103.0%, but this target appears ambitious given recent casualty loss trends and assumes no prior year development, which has been a persistent challenge.