Selective Insurance Group (SIGI) investor relations material

Company performance and reserving actions

• Celebrating a near 100-year history with a decade-plus of strong growth and consistent returns, averaging over 12% ROE.

• Recent years saw challenges in casualty lines, prompting swift reserving actions in General Liability (2024) and Commercial Auto Liability (2025) to address emerging severity trends.

• Emphasis on booking best estimates each quarter to ensure accurate planning and profitability.

• External reviews confirmed reserves are above central estimates and validated severity trends align with industry patterns.

• Company reacts more quickly to recent data than industry peers, focusing on the most recent accident years.

Data, technology, and operational improvements

• Significant investments in technology, with the IT budget for discretionary projects more than doubling year-over-year.

• Leveraging extensive data to drive granular pricing and loss cost identification, aiming for precision pricing and continuous improvement.

• Focus on providing better information to decision makers and maintaining a culture of relentless focus on fundamentals.

Industry trends and market environment

• Post-pandemic claims patterns show elevated severity trends, with all-in casualty severity at about 9-10%.

• Industry-wide, $10.5 billion was added to General Liability reserves in 2024, with half from pre-pandemic years.

• Social inflation and litigation rates are driving higher loss costs, especially in certain states like New Jersey.