Selective Insurance Group has published its report detailing its financial results for the second quarter of 2024, ending on June 30.
The report found that the insurer had a net loss per diluted common share of $1.08 and a non-GAAP operating loss per diluted common share of $1.10. The insurer also saw a combined ratio of 116.1% for the second quarter of the year.
There was also an increase in the net unfavorable prior year casualty reserve development of $176 million by 16.3 points. Catastrophe losses of $91 million drove an 8.4-point increase in the combined ratio. Meanwhile, NPW increased by 13% year-over-year, showing growth from all three insurance segments.
“This was a challenging quarter. We did not meet our high standard as underwriting performance fell below our target,” said John J. Marchioni, chairman, president and CEO of Selective Insurance. “The unfavorable prior year casualty reserve development was driven by elevated loss emergence in the quarter reflecting higher severity that we attribute to social inflation.
“Our reserving action is predicated on our in-depth quarterly reserve review and further strengthening to address elevated and uncertain loss trends,” he added, further noting that the insurer had a stable underwriting portfolio.
“Our renewal pure price increase across all insurance segments was 9.1% in the quarter, including 7.9% for Standard Commercial Lines. General liability renewal pure pricing increased to 7.6%, up over a point from the first quarter. We expect Standard Commercial Lines renewal pure price will trend higher in the second half of 2024,” said Marchioni.
Marchioni said the insurer managed to maintain its focus and execution when it came to areas of risk selection, pricing, and claims management despite the challenging environment during the quarter.
“Our capital position remains strong and our underlying combined ratio of 91.4% positions us well moving forward. We are confident that we will quickly re-establish our strong earnings profile, consistently meeting or exceeding our 12% operating ROE target,” said Marchioni.
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