Q3 2024 Selective Insurance Group Inc Earnings Call Transcript
Key Points
- Selective Insurance Group Inc (SIGI) reported an operating earnings per share of $40 and an operating return on equity (ROE) of 12.1% for the quarter, demonstrating strong underlying profitability.
- The company achieved a significant increase in general liability pricing from 7.6% in the second quarter to 10.2% in the third quarter, indicating effective pricing strategies.
- Selective Insurance Group Inc (SIGI) expanded its geographic footprint by adding Washington, Oregon, and Nevada to its standard commercial line states, enhancing market opportunities.
- The company's excess and surplus lines segment showed strong performance with a 28% increase in net premiums written and an 83.2 combined ratio.
- Selective Insurance Group Inc (SIGI) maintained a strong capital position with a GAAP equity of $3.2 billion and statutory surplus of $2.8 billion, providing financial flexibility.
- The company faced elevated catastrophe losses, which added 13.4 points to the combined ratio, impacting overall profitability.
- Year-to-date operating ROE is 4.8%, below the company's 12% target, primarily due to reserving actions and higher-than-expected catastrophe losses.
- Personal lines net premiums written decreased by 2% in the quarter, reflecting challenges in improving profitability in this segment.
- The company's GAAP combined ratio was 99.5% in the quarter, including 13.4 points of catastrophe losses, indicating pressure on underwriting performance.
- Retention in personal lines decreased to 75%, down 13 points from the third quarter of 2023, highlighting challenges in maintaining customer loyalty.
Ladies and gentlemen, thank you for standing by. Welcome to Selective Insurance Group Incorporated third quarter 2024 earnings call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would like now to turn the conference over to Brad Wilson, Senior Vice President, Investor Relations, and Treasurer. Please go ahead.
Good morning. Thank you for joining Selective's third quarter 2024 earnings conference call. Yesterday, we posted our earnings press release financial supplement and investor presentation on the Investors Section of our website selective.com. A replay of the webcast will be posted there shortly after this call.
John Marchioni, our Chairman of the Board President and Chief Executive Officer; Anthony Harnett, our Senior Vice President and Chief Accounting Officer will make remarks and address your questions. We're also pleased to have Patrick Brennan, our new Executive Vice President and Chief
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