Selective Insurance's Q2 operating income rises 49%

Selective Insurance

23/07/2026 21:36

    

    Overview
  
U.S. property and casualty insurer's Q2 net premiums written fell 5% yr/yr
Non-GAAP operating income per diluted share rose 49% yr/yr
Company repurchased $32 mln in shares during the quarter

    

    Outlook
  
Selective sees 2026 GAAP combined ratio of 96.5% to 97.5%, including 6.0 pts catastrophe losses
Company raises 2026 after-tax net investment income guidance to $480 mln from $465 mln
Selective expects 2026 effective tax rate of 21.5%

    

    Result Drivers
  
UNDERWRITING DISCIPLINE - Co said lower net premiums written reflected deliberate actions to improve portfolio quality and profitability, including lower new business and targeted retention in Standard Commercial Lines
LOSS TRENDS - Combined ratio improved mainly due to lower catastrophe and non-catastrophe property losses and no prior year casualty reserve development, partly offset by higher current year casualty loss costs
INVESTMENT INCOME - After-tax net investment income rose 18% yr/yr, contributing to overall returns

    
Company press release: ID:nBw9x59Cra

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Net Premiums Written
 
$1.22 bln
 
Q2 Net Income
 
$127.10 mln
 
Q2 Adjusted ROE
 
13.70%
 
Q2 Combined Ratio
 
98.00%
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold"
Wall Street's median 12-month price target for Selective Insurance Group Inc is $100.00, about 4.1% above its July 22 closing price of $96.08
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

    

    Reuters Recommended Reads
  
July 21 - Chubb Q2 adjusted EPS beats estimates on underwriting discipline
July 20 - W. R. Berkley second-quarter profit rises on strong underwriting
July 22 - RenaissanceRe Q2 operating income up driven by strong underwriting

    
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)