Selective Insurance Group Reports 15% Revenue Growth, Mixed Results in Q3 2024

Selective Insurance Group, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, the company achieved revenues of $1,244.3 million, a 15% increase from $1,081.1 million in Q3 2023. For the nine months ended September 30, 2024, revenues rose 16% to $3,605.3 million from $3,121.4 million in the same period last year. However, net income for Q3 2024 was $148.1 million, up from $89.2 million in Q3 2023, while net income for the nine months decreased significantly to $129.2 million from $240.4 million in the prior year.

The company’s comprehensive income for Q3 2024 was $273.1 million, compared to $162.6 million in Q3 2023, reflecting a strong performance in other comprehensive income, which was $180.8 million for the quarter. The increase in net investment income was also notable, with $117.8 million earned in Q3 2024, up from $100.9 million in Q3 2023.

The underwriting performance showed a decline, with after-tax underwriting income for Q3 2024 at $4.1 million, down 83% from $25.0 million in Q3 2023. The combined ratio for Q3 2024 increased to 99.5%, up from 96.8% in the prior year, indicating a rise in loss and loss expense ratios primarily due to net catastrophe losses of $148.8 million, significantly impacting the results.

Strategically, Selective Insurance expanded its market presence by entering West Virginia and Maine in April 2024, and Washington, Nevada, and Oregon in October 2024, now covering 35 states and D.C. The company also reported a 9.1% increase in renewal pure price for Standard Commercial Lines in Q3 2024, up from 7.9% in Q2 2024.

The company’s investment portfolio remains robust, with total investments and cash amounting to $433.9 million as of September 30, 2024. The effective duration of the investment portfolio was 3.9 years, with a focus on maximizing after-tax net investment income.

In terms of capital management, Selective repurchased 103,000 shares of common stock for $8.7 million during the nine months of 2024, with a remaining capacity of $75.5 million under its share repurchase program. The Board declared a 9% increase in the quarterly cash dividend to $0.38 per share, reflecting a commitment to returning value to shareholders.

Overall, while Selective Insurance Group demonstrated revenue growth and strategic expansion, it faced challenges in underwriting profitability and net income for the nine-month period.