Selective Insurance Group (SIGI) Q4 2024 earnings summary

Executive summary

• Operating ROE for 2024 was 7.1%, below the 12% target, with strong capital position and strategic initiatives advanced.

• Net premiums written reached $4.6B in 2024, growing 12% year-over-year; book value per share increased 6% to $47.99.

• Significant reserving actions taken in response to elevated severities and social inflation, especially in general liability.

• Underlying combined ratio improved to 89.4%, with personal lines showing notable profitability improvement.

• Unique operating model, empowered decision-makers, and strong distribution partnerships drive competitive advantage.

Financial highlights

• Fully diluted EPS for Q4 was $1.52; non-GAAP operating EPS was $1.62.

• Full-year fully diluted EPS was $3.23, non-GAAP operating EPS $3.27, down 44% year-over-year.

• 2024 GAAP combined ratio was 103.0%, up 6.5 points from 2023, driven by reserve strengthening and catastrophe losses.

• After-tax net investment income for the year was $363 million, up 17% from 2023; portfolio after-tax yield averaged 4.0%.

• Book value per share at year-end was $47.99, up 6% year-over-year; adjusted book value per share was $52.10, up 4%.

Outlook and guidance

• 2025 GAAP combined ratio expected to be 96%-97%, including six points of catastrophe losses.

• After-tax net investment income projected at $405 million for 2025, a 12% increase over 2024.

• Underlying combined ratio guidance for 2025 is 90%-91%.

• Operating ROE for 2025 is expected to be approximately 15%.

• Effective tax rate guidance of 21.5% and weighted average diluted shares of 61.5 million.