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Selective Insurance Group (SIGI) investor relations material
Selective Insurance Group KBW Insurance Conference 2025 summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Reserve development and philosophy
Higher paid emergence in recent accident years for commercial auto and general liability led to reserve strengthening, especially for 2022–2024 accident years.
Actions taken in 2023 and 2024 increased expected loss ratios, positioning for future profitability and maintaining sound combined ratio guidance.
Reserving approach emphasizes reacting quickly to adverse trends, especially in immature years, and booking best estimates.
Workers' compensation reserves are managed conservatively due to flattening frequency trends and negative rate environment, with a 5% severity trend assumption.
Track record shows most adverse development recognized early, supporting a proactive reserving philosophy.
Capital management and shareholder value
Long-term capital management targets returning 20–25% of earnings via dividends, with opportunistic share buybacks based on valuation.
$19.4 million in stock repurchased in Q1, with increased activity in Q3; $56 million remains on authorization.
Focus remains on long-term value rather than short-term market reactions, avoiding economically inefficient actions like unnecessary LPTs.
Business segment updates and growth strategies
E&S segment operates in all 50 states, with a mix shifting toward property due to market opportunities; new direct access for retail partners aims to drive growth.
Retail and wholesale channels are expected to coexist, with expansion into new products and states planned.
Personal lines have shifted significantly toward the mass affluent market, with average new business home values around $1 million and improved profitability.
Opportunities exist to expand personal lines into additional states within the commercial footprint.
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