The following is a summary of the Selective Insurance Group, Inc. (SIGI) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Selective Insurance Group reported an operating ROE of 11.7% in Q1 2024, a 16% expansion in net premiums written, and a Q1 EPS of $1.31, down 11% from a year ago.

• The company's combined ratio was reported to be 98.2%, contributing to the drag in the operating ROE.

• Unfavorable casualty reserve development of $35 million impacted results by reducing the annualised operating ROE by 4 points and adding 3.3 points to the combined ratio.

• After-tax net investment income increased to $86 million, up 17% from last year and contributing 12.3 points to ROE.

• The company maintains a strong capital position with GAAP equity exceeding $3 billion and a statutory surplus of $2.8 billion.

Business Progress:

• The company has expanded its footprint to 32 states and plans to add Oregon, Washington, and Nevada in 2024.

• Transitioning towards the mass affluent market in Personal Lines resulted in a 17% increase in net premiums written and a combined ratio improvement of 10.9 points from the first quarter of 2023.

• The company forecasts a rise in the GAAP combined ratio to 96.5% for 2024, reflecting the impact of reserve adjustments made in Q1.

• Renewal premium change for commercial lines was 12.3%, indicating a stable retention.

• The company is implementing improvement strategies on the Personal Lines book and expects full-year pricing to be in excess of 20%.

• The company is in the early stages of renewing its casualty reinsurance program to manage individual large loss and catastrophe exposures.

More details: Selective Insurance IR

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