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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net $113 mln

Income

Q3 13.20%

Adjusted

ROE

Q3 98.60%

Combined

Ratio

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 ( SIGI ) 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:

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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.)