Selective Insurance's Q3 premiums rise, driven by renewal price increases

Selective Insurance

22/10/2025 21:50

Overview

Selective Q3 net premiums written increased 4% yr/yr, driven by renewal price increases

Company's combined ratio improved to 98.6% from 99.5% in Q3 2024

Company announces new $200 mln share repurchase program, replacing prior program

Outlook

Selective expects full-year GAAP combined ratio of 97% to 98%

Selective plans to expand into Montana and Wyoming in 2026

Result Drivers

RENEWAL PRICE INCREASES - NPW grew 4% yr/yr driven by 9.6% renewal pure price increases

LOWER CATASTROPHE LOSSES - Combined ratio improved to 98.6% due to reduced catastrophe losses

HIGHER INVESTMENT INCOME - Net investment income increased 18% yr/yr, contributing to ROE

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
$113 mln
Q3 Adjusted ROE
13.20%
Q3 Combined Ratio
98.60%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Selective Insurance Group Inc is $87.00, about 3.5% above its October 21 closing price of $83.98

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBwbm0CFGa

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(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.)