Selective Insurance Group, Inc. has recently released its 10-Q report, providing an insightful look into the company's financial performance and operations. Selective Insurance operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. The company offers casualty insurance, property insurance, and flood insurance products, and it also invests in various securities and loans.
In the 10-Q report, the company's management discusses the critical accounting policies and estimates, financial highlights of results for the first quarters ended March 31, 2025, and March 31, 2024, as well as results of operations and related information by segment.
For the quarter ended March 31, 2025, Selective Insurance reported revenues of $1.29 billion, representing a 10% increase from the same period in 2024. The after-tax net investment income was $95.6 million, a 12% increase year-over-year. The company also saw a significant increase in after-tax underwriting income, which stood at $36.1 million, reflecting a substantial 140% growth compared to the first quarter of 2024. Net income before federal income tax was $138.9 million, a 35% increase from the same period in 2024.
The company's non-GAAP operating income for the first quarter of 2025 was $107.4 million, marking a 32% increase from the first quarter of 2024. The non-GAAP operating income per diluted common share was $1.76, a 32% increase year-over-year. The return on common equity (ROE) for the first quarter of 2025 was 14.4%, up from 11.5% in the first quarter of 2024.
Selective Insurance reported a combined ratio of 96.1% for the first quarter of 2025, representing an improvement from the 98.2% reported in the first quarter of 2024. The company's invested assets per dollar of common stockholders' equity increased by 8% to $3.37, while the book value per share rose by 9% to $50.33.
Looking ahead, Selective Insurance reaffirmed its full-year 2025 guidance, including a GAAP combined ratio between 96% and 97%, net investment income of $405 million after tax, and weighted average shares of 61.5 million on a fully diluted basis.
In the first quarter of 2025, Selective Insurance generated a return on equity of 14.4%, driven by improved underwriting profitability in its Commercial and Personal Lines segments and increased net investment income. The company remains focused on executing its strategy, including prudent underwriting, pricing discipline, and leveraging sophisticated analytical tools, to address market uncertainties and achieve profitable growth.
As a result of these announcements, the company's shares have moved -2.0% on the market, and are now trading at a price of $87.46. For more information, read the company's full 10-Q submission here.
