Q2 2024 Selective Insurance Group Inc Earnings Call Transcript
Key Points
- Selective Insurance Group Inc (SIGI) maintained a strong capital position despite a challenging quarter.
- The underlying combined ratio of 91.4% positions the company well moving forward.
- The Excess and Surplus (E&S) segment showed strong performance with a 94.6% combined ratio and 39% increase in net premiums written.
- Personal lines net premiums written increased by 6% due to strong renewal pure pricing of 20.7%.
- The company successfully renewed its property and casualty excess of loss treaties with substantially the same structure as the expiring treaties.
- Selective Insurance Group Inc (SIGI) reported an operating loss of $1.10 per diluted common share and an operating ROE of negative 9.6% for the quarter.
- The combined ratio for the quarter was 116.1%, driven by catastrophe losses and reserve strengthening.
- Adverse prior-year casualty reserve development totaled $176 million, with $166 million in general liability.
- The company revised its full-year guidance, implying an ROE in the upper single-digit range, below the 12% target.
- Retention in personal lines decreased to 78%, down 10 points from the second quarter of 2023.
Good day, and thank you for standing by. Welcome to Selective's second-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Brad Wilson, Senior Vice President, Investor Relations, and Treasurer. Please go ahead.
Good morning. Thank you for joining Selective's second-quarter 2024 earnings conference call on short notice. Yesterday, we posted our earnings press release, financial supplement, and investor presentation on the Investors section of our website, selective.com. The investor presentation includes a new exhibit highlighting our historical reserve development and relevant comparisons. A replay of the webcast will be posted there shortly after this call.
Today, we will discuss our financial performance, market conditions, and expectations for the rest of 2024. John Marchioni, our Chairman of the Board,
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