Selective Insurance Group, Inc. Announces Preliminary Second Quarter 2023 Results, Including Catastrophe Loss Estimates

About this update from Selective Insurance Group, Inc.

[{"type":"text","content":"BRANCHVILLE, N.J., July 24, 2023 /PRNewswire/ -- Selective Insurance Group, Inc. (Nasdaq: SIGI) announced preliminary second quarter 2023 results and pre-tax net catastrophe loss estimates today.\n\n \n \n \n \n \n \n\n \nSelective (the \"Company\") expects to report second quarter diluted earnings per share of $0.92 and non-GAAP operating earnings per share of $0.991, with the difference principally reflecting after-tax net realized and unrealized investment losses. The Company expects its second quarter combined ratio to be 100.2%, including catastrophe losses of 10.6 points and net prior year favorable casualty reserve development of 0.4 points. Net investment income, after-tax, is expected to be $78 million, including $9 million of after-tax alternative investment income. We expect to report a 9.1% return on common equity (\"ROE\") and 9.8% non-GAAP operating ROE1 in the quarter.\nThe Company expects pre-tax net catastrophe losses totaling approximately $100 million. Each underwriting segment was impacted, with $63 million of pre-tax net catastrophe losses in Standard Commercial Lines, $21 million in Standard Personal Lines, and $16 million in Excess and Surplus Lines. Nineteen named events impacted our results. Most storms were in our Midwest and East Coast footprint states, and none were large enough to attach to our catastrophe reinsurance treaty.\n\"In a challenging operating environment with elevated catastrophe losses throughout the insurance sector, our team worked hard to serve our customers and distribution partners. Through the first half of the year, our expected operating ROE of 12.2% was in line with our 12% target and we are on track to meet our full-year guidance of a 96.5% combined ratio and $300 million of after-tax net investment income. In addition, we produced excellent net premiums written growth,\" said Chairman, President and Chief Executive Officer John J. Marchioni.\nBased on the preliminary second quarter results, we increased our expectations for 2023 net catastrophe losses while maintaining other full-year expectations as follows:\nA GAAP combined ratio of 96.5%, including net catastrophe losses of 6.0 points, up from prior guidance of 4.5 points. Our combined ratio estimate assumes no additional prior year casualty reserve development;After-tax net investment income of $300 million that includes ...

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