Selective Insurance Group (SIGI) Q1 2025 earnings summary

Executive summary

• Achieved a combined ratio of 96.1% and after-tax net investment income of $96 million in Q1 2025, with return on equity and operating ROE at 14.4%.

• Net premiums written grew 7% year-over-year to $1.24 billion, led by 8% growth in standard commercial lines and 20% in excess and surplus lines, while personal lines premium fell 12% due to profitability actions.

• Book value per share rose 5% to $50.33, and adjusted book value per share increased to $53.39.

• $400 million senior notes issued in February 2025 to support organic growth and enhance financial flexibility.

• Focus remains on restoring consistent underwriting margins and operating ROEs, targeting a 95% combined ratio and mid-teens operating ROE, supported by technology and AI investments.

Financial highlights

• Net income available to common stockholders rose 34% year-over-year to $107.6 million; fully diluted EPS and non-GAAP operating EPS were $1.76.

• Net premiums earned increased 10% to $1.16 billion; after-tax net investment income was $95.6 million, up 12% from Q1 2024.

• Book value per share reached $50.33 at Q1 2025, up 5% in the quarter and 9% year-over-year.

• Debt to capital increased to 21.7% after a $400 million senior notes issuance.

• Non-GAAP operating ROE was 14.4%, above the 10-year average of 11.9%.

Outlook and guidance

• Reaffirmed 2025 GAAP combined ratio guidance of 96% to 97%, including 6 points of catastrophe losses.

• After-tax net investment income guidance remains at $405 million, with effective tax rate guidance at 21.5% and weighted average diluted shares projected at 61.5 million.

• Underlying combined ratio expected to meet 90% to 91% full-year target, with Q1 seasonally higher.

• Management expects continued pricing discipline, strong retention, and growth from geographic expansion and technology investments.