Selective Insurance Q3 net income rises on improved underwriting performance

Selective Insurance

Thu 21:25

Overview
U.S. property and casualty insurer's Q3 net premiums written fell 7% yr/yr
Q3 net income per diluted share rose 14% yr/yr
Company authorized new $200 mln share repurchase program

Outlook
Selective expects 2026 GAAP combined ratio of 96.5% to 97.5%, including 5.5 pts catastrophe losses
Company raises 2026 after-tax net investment income forecast to $490 mln from $480 mln
Selective anticipates 2026 effective tax rate of 21.5%

Result Drivers
UNDERWRITING DISCIPLINE - Co said improved underwriting performance and lower loss ratio drove profitability, per CEO John J. Marchioni
INVESTMENT INCOME - Net investment income rose 16% yr/yr, contributing to ROE
PREMIUM DECLINE - NPW fell 7% as co implemented rate and non-rate actions to enhance underwriting profitability

Company press release: ID:nBw6gSSMRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Premiums Written
 
$1.12 bln
 
Q3 Net Income
 
$126.40 mln
 
Q3 Adjusted ROE
 
16.90%
 
Q3 Combined Ratio
 
96.80%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "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 $98.00, about 7.6% above its October 21 closing price of $91.08
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 20 - Insurance firm Chubb Q3 net income rises 
Oct 19 - W.R. Berkley Q3 revenue falls more than expected
Oct 21 - Exclusive: Travelers lifts cyber quota-share cession to 75% from 40% at flat commission, sources say

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.)