Business
Selective Reports Strong Results for the Second Quarter of 2019, with Record Net Income per Diluted Share of $1.21 and Non-GAAP Operating Income(1) per Diluted Share of $1.16
BRANCHVILLE, N.J., July 31, 2019 /PRNewswire/ -- In the second quarter of 2019: Net premiums written ("NPW") increased 7% GAAP combined ratio was 93.1%
About this update from Selective Insurance Group, Inc.
[{"type":"text","content":"BRANCHVILLE, N.J., July 31, 2019 /PRNewswire/ --\nIn the second quarter of 2019: \nNet premiums written (\"NPW\") increased 7% GAAP combined ratio was 93.1% After-tax net investment income was up 27%, to $48 million Annualized return on equity (\"ROE\") was 14.5% and non-GAAP operating ROE1 was 13.9%Selective Insurance Group, Inc. (NASDAQ: SIGI) today reported its financial results for the second quarter ended June 30, 2019. The company reported record net income per diluted share of $1.21, compared to $0.99 for the same quarter a year ago. Non-GAAP operating income1 per diluted share was $1.16, compared to $1.01 a year ago.\n\"In the second quarter we generated a 93.1% GAAP combined ratio, or 88.5% excluding catastrophe losses,\" said Gregory E. Murphy, Chairman and Chief Executive Officer. \"Our annualized non-GAAP operating ROE1 for the quarter was an excellent 13.9%. For the first six months of 2019, our annualized non-GAAP operating ROE1 of 12.8% exceeds our 2019 financial target of 12%. NPW increased a solid 7% driven by: (i) overall renewal pure price increases of 3.5%, which was in-line with expected loss trend; and (ii) stable retention. The strong relationships we have with our 'ivy league' distribution partners, our investments in sophisticated underwriting tools, and focus on a superior customer experience, positions us well for continued outperformance relative to the industry.\"\nMr. Murphy continued, \"Each of our insurance segments delivered profitable results in the quarter and generated an outstanding 7.1 points of annualized ROE. Our investment segment continues to generate excellent results with after-tax net investment income up 27% from a year ago, which contributed 9.6 points of annualized ROE. The increase in net investment income was driven by: (i) strong alternative investment returns; (ii) higher book yield on our core fixed income securities portfolio; (iii) strong cash flows from operations that were 17% of NPW in the quarter; and (iv) the $106 million of net proceeds from our 5.375% senior notes issuance in the first quarter of 2019. The company's financial position is at historic highs, as stockholders' equity has now surpassed $2 billion. Our continued strong profitability is a result of our successful execution on our strategic initiatives.\"\n\n \n \nOverall Insurance Operations For the quarter,...