What were the key takeaways from Selective Pref B ADR's earnings call?

What is the revenue and EPS growth rate for Selective Pref B ADR year over year?

What is Selective Pref B ADR's gross profit margin?

Did Selective Pref B ADR beat or miss consensus estimates last quarter?

What does Selective Pref B ADR do and what are its main business segments?

What is Selective Pref B ADR's latest dividend and current dividend yield?

What were the key takeaways from Selective Pref B ADR’s earnings call?

What factors drove the changes in Selective Pref B ADR's revenue and profit?

- **Operating Performance**: 13.2% Q3 operating ROE, with full-year target of 14%, despite 98.6% combined ratio driven by New Jersey casualty reserve issues.
- **Financial Strength**: 26% EPS growth, $110M investment income, and 13% dividend increase highlight strong capital management.
- **Strategic Focus**: Commercial auto rate hikes (8.9%), E&S expansion, and AI-driven efficiency to offset social inflation pressures.
- **Reserve Confidence**: External reviews validate reserves, with no claims management issues identified.

**【CEO Summary Section】**
- Delivered an operating return on equity (ROE) of 13.2% for the quarter, with a full-year target of 14%.
- Combined ratio for the quarter was 98.6%, driven by 3.3 points of unfavorable prior year casualty reserve development, primarily in New Jersey's commercial auto line.
- Implemented strategic actions in commercial auto, including rate increases (8.9% renewal pure price), tighter underwriting guidelines, and telematics solutions to address rising severity trends.
- Emphasized long-term profitability over short-term growth, with a focus on risk selection, diversification, and AI-driven efficiency.

**【CFO Financial Commentary】**
- Fully diluted EPS of $1.85, up 26% year-over-year; non-GAAP operating EPS of $1.75, up 25%.
- After-tax net investment income of $110 million, up 18% YoY, contributing 13.6 points to ROE.
- Full-year guidance updated to a GAAP combined ratio of 97%-98%, including 4 points of catastrophe losses (down from 6 points previously) and 2 points of prior year reserve development.
- Announced a 13% dividend increase and $36 million in share repurchases, with a new $200 million repurchase authorization.

**【Q&A Key Highlights】**
- **Commercial Auto Challenges**: New Jersey accounts for 15% of commercial auto premium, with severity trends driven by social inflation. Actions include rate hikes, underwriting tightening, and telematics adoption.
- **Reserve Confidence**: External reviews confirm reserves are above industry central estimates, with no evidence of claims management issues.
- **Growth Strategy**: Prioritizes profitable growth through diversification (e.g., E&S expansion, personal lines target market focus) and disciplined expense management.
- **Capital Management**: Maintains 20%-25% earnings return via dividends, with opportunistic share buybacks reflecting confidence in stock valuation.

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