Selective Insurance Q3 net income rises on improved underwriting performance

Overview

• U.S. property and casualty insurer's Q3 net premiums written fell 7% yr/yr

• Q3 net income per diluted share rose 14% yr/yr

• Company authorized new $200 mln share repurchase program

Outlook

• Selective expects 2026 GAAP combined ratio of 96.5% to 97.5%, including 5.5 pts catastrophe losses

• Company raises 2026 after-tax net investment income forecast to $490 mln from $480 mln

• Selective anticipates 2026 effective tax rate of 21.5%

Result Drivers

• UNDERWRITING DISCIPLINE - Co said improved underwriting performance and lower loss ratio drove profitability, per CEO John J. Marchioni

• INVESTMENT INCOME - Net investment income rose 16% yr/yr, contributing to ROE

• PREMIUM DECLINE - NPW fell 7% as co implemented rate and non-rate actions to enhance underwriting profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "hold"

• Wall Street's median 12-month price target for Selective Insurance Group, Inc. is $98.00, about 7.6% above its October 21 closing price of $91.08

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)