Selective Insurance Group, Inc. reported second quarter 2025 net income per diluted common share of $1.36 and non-GAAP operating income per diluted common share of $1.31. The company's return on common equity was 10.7%, and non-GAAP operating ROE was 10.3%.
The combined ratio for the quarter was 100.2%, reflecting continued pressures from elevated severities due to social inflation. This included 3.8 points of net unfavorable prior year casualty reserve development, driven by $45 million of reserve strengthening in commercial lines.
Net premiums written grew 5% from a year ago, with average renewal pure price increases of 9.9%. After-tax net investment income increased 18% to $101 million, generating 13.0 points of annualized ROE in the quarter.
Selective updated its full-year 2025 guidance, increasing the expected GAAP combined ratio to between 97.0% and 98.0%, a 1.0 point increase from prior guidance. This revised outlook incorporates 6.0 points of net catastrophe losses and prior year casualty reserve development reported through the first half of 2025.
The company's guidance assumes no additional prior year casualty reserve development and no further change in current year loss cost estimates. After-tax net investment income is now projected to reach $415 million for 2025, an increase from previous guidance, implying an operating ROE of approximately 15%.
Book value per common share increased by $4.10, or 9%, during the first half of 2025 to $52.09. The company did not repurchase any shares of common stock in the second quarter, with $56.1 million remaining under its authorization.
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