Overview

• Selective Q3 net premiums written increased 4% yr/yr, driven by renewal price increases

• Company's combined ratio improved to 98.6% from 99.5% in Q3 2024

• Company announces new $200 mln share repurchase program, replacing prior program

Outlook

• Selective expects full-year GAAP combined ratio of 97% to 98%

• Selective plans to expand into Montana and Wyoming in 2026

Result Drivers

• RENEWAL PRICE INCREASES - NPW grew 4% yr/yr driven by 9.6% renewal pure price increases

• LOWER CATASTROPHE LOSSES - Combined ratio improved to 98.6% due to reduced catastrophe losses

• HIGHER INVESTMENT INCOME - Net investment income increased 18% yr/yr, contributing to ROE

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Selective Insurance Group Inc is $87.00, about 3.5% above its October 21 closing price of $83.98

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBwbm0CFGa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)