Selective Insurance Group Reports 10% Revenue Growth and 33% Increase in Net Income for Q1 2025

Selective Insurance Group, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenues reaching $1.285 billion, a 10% increase from $1.165 billion in the same period last year. The company achieved a net income of $109.9 million, or $1.76 per diluted share, compared to $82.5 million, or $1.31 per diluted share, in the first quarter of 2024. This represents a 33% increase in net income and a 34% increase in earnings per share, reflecting improved underwriting profitability and higher investment income.

The company's underwriting results showed marked improvement, with after-tax underwriting income rising to $36.1 million, a 140% increase from $15.0 million in the prior year. The combined ratio improved to 96.1%, down from 98.2% in the first quarter of 2024, indicating better efficiency in managing claims and expenses. The growth in net premiums written (NPW) was also notable, increasing to $1.422 billion, up from $1.316 billion, driven by strong retention rates and renewal price increases across its commercial and personal lines segments.

Strategically, Selective Insurance has focused on expanding its market presence, adding 30 agency locations in the first quarter of 2025, and has plans for further geographic expansion into states like Kansas, Montana, and Wyoming by the end of 2026. The company also issued $400 million in 5.90% Senior Notes to support organic growth and enhance its capital base. This issuance contributed to a significant increase in invested assets, which rose to $3.3 billion as of March 31, 2025, compared to $2.7 billion at the end of 2024.

Operationally, Selective Insurance reported a favorable trend in its loss and loss expense ratios, with total incurred losses increasing by 6% to $746.3 million, primarily due to higher current year casualty loss costs. The company noted a reduction in unfavorable prior year casualty reserve development, which positively impacted its overall financial health. The company’s employee headcount remained stable, supporting its operational efficiency as it continues to leverage technology for underwriting and claims processing.

Looking ahead, Selective Insurance remains optimistic about its growth trajectory, reaffirming its full-year guidance with a projected GAAP combined ratio between 96% and 97%. The company anticipates net investment income of approximately $405 million after tax, supported by its recent capital initiatives and ongoing strategic investments. Despite potential macroeconomic challenges, Selective Insurance is committed to maintaining its focus on profitability and disciplined underwriting practices.