Selective Insurance Group has posted $1,084 billion in net premiums written for the second quarter of 2023, representing a 17% increase from $930.7 million from the previous year’s quarter.
The firm also recorded a 100.2% combined ratio for the quarter, compared to 95.5% a year ago.
In their preliminary results for Q223, Selective expected the combined ratio to reach 100.2%
Selective noted that this was driven primarily by higher cat losses and lower prior year favorable casualty reserve development. For Q2, cat losses totaled $100.0 million pre-tax, up from $45.6 million in Q222.
Results in Q223 were impacted by 19 named events, with no single storm large enough to attach the firm’s cat reinsurance treaty.
At the same time, prior year favorable casualty reserve development totaled $3.5 million, including $7.5 million from Selective’s workers compensation line of business that was partially offset by $4.0 million of unfavorable development within the company’s personal auto line of business.
In Q2, prior year favorable casualty reserve development totaled $12.0 million.
“We delivered exceptional growth in the quarter, and I am pleased with our team’s commitment to serving customers through many challenging weather events. Despite these elevated catastrophe losses, we benefited from our consistent, disciplined underwriting and excellent distribution partner relationships. We continue to execute our long-term strategy for profitable growth,” said John J. Marchioni, Chairman, President and Chief Executive Officer.
“Our unique operating model, with regionally-based underwriting, claims, and safety management professionals, is a competitive differentiator for Selective, enabling us to navigate successfully through various market environments.
“We are well-positioned, with a strong balance sheet, sophisticated underwriting capabilities, and robust risk management, to deliver profitable growth through our existing distribution partners and state footprint expansion.”
Within Standard Commercial Lines, premiums (representing 80% of total NPW) increased 14% compared to a year ago. The premium growth reflected average renewal pure price increases of 6.7%, new business growth of 23%, strong exposure growth, and consistent retention of 85%. The second quarter combined ratio was 97.1%.
Moving forward, within Standard Personal Lines, premiums (representing 10% of total NPW) increased 32% compared to a year ago. Renewal pure price increases averaged 3.4%, retention was 88%, and new business was up $19.0 million compared to last year. The second quarter combined ratio was 126.5%, which included 24.3 points of cat losses and 4.6 points of unfavorable casualty reserve development from the personal auto line of business.
