Q4 2025 Selective Insurance Group Inc Earnings Call Transcript
Key Points
- Selective Insurance Group Inc (SIGI) delivered a strong return on equity (ROE) of 14.4% and an operating ROE of 14.2% in 2025, exceeding their 10-year and 5-year averages.
- The company grew its book value per share by 18% and returned $182 million to shareholders through dividends and share repurchases.
- SIGI achieved a combined ratio of 93.8% in the fourth quarter, improving from the previous year and indicating strong underwriting performance.
- Net premiums written grew by 5% for the year, driven by deliberate actions to improve underwriting profitability and expand geographic footprint.
- The Excess and Surplus Lines segment reported a strong combined ratio of 87.8% for the year, reflecting robust profitability.
- The Personal Lines segment experienced a combined ratio of 103% in the fourth quarter, up from 91.7% in the first quarter of 2024, due to higher catastrophe losses and casualty loss costs.
- Commercial auto reserves were strengthened by approximately $190 million in 2025, primarily impacting the 2024 and 2025 accident years.
- The company noted challenges in the New Jersey market, which contributed to unfavorable prior year development in personal auto lines.
- SIGI's guidance for 2026 includes an expected increase in the expense ratio by about 0.5 points due to strategic technology investments.
- The company faces ongoing challenges in managing litigation and regulatory environments, particularly in New Jersey, which impacts both personal and commercial lines.
Good day, and welcome to Selective Insurance Group's fourth-quarter 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like 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 fourth quarter and full year 2025 earnings conference call. Yesterday, we posted our earnings press release, financial supplement and investor presentation on selective.com Investors section.
A replay of the webcast will be available there shortly after this call. John Marchioni, our Chairman of the Board, President and Chief Executive Officer; and Patrick Brennan, Executive Vice President and Chief Financial Officer.
We'll discuss results and take your questions. We will reference non-GAAP measures that insurance and investment professionals use to evaluate operational and financial
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
