Selective Insurance Group Reports $197.8 Million Net Loss for 2024, Despite Increased Investment Income

Selective Insurance Group, Inc. (SIGI) reported a net loss of $197.8 million for the year ended December 31, 2024, compared to a net income of $356.0 million in 2023. This decrease was primarily due to $311 million in unfavorable prior-year casualty reserve development, largely attributed to increased loss severities in general liability driven by social inflation. The company's combined ratio increased to 103.0% in 2024 from 96.5% in 2023. Despite the underwriting loss, after-tax net investment income increased to $362.6 million, up 17% from 2023, driven by higher interest rates and strong capital market performance.

Significant changes compared to the prior year include the expansion of Standard Commercial Lines into five new states (Maine, Nevada, Oregon, Washington, and West Virginia), bringing the total to 35 states and the District of Columbia. The company also launched a Risk Management Center to digitally scale risk management expertise and modernized its Standard Commercial Lines agency interface platform for small business policy quoting and issuance. In claims management, a new modernized system was launched for commercial and personal automobile lines, with plans to expand to other lines in 2025. The company also reported a 9% increase in its common stock dividend to $0.38 per share.

Operational developments included a 12% increase in net premiums written (NPW) to $4.6 billion in 2024, driven by direct new business premiums and renewal pure price increases. As of December 31, 2024, 54% of customers were registered for MySelective, the company's mobile application and self-service portal. The company employed approximately 2,800 employees, with a 10% turnover rate in 2024. Aggregators accounted for approximately 46% of the company's direct premiums written (DPW) at the end of 2024.

The company's investment portfolio, as of December 31, 2024, consisted of 85% fixed income securities, 2% commercial mortgage loans, 2% equity securities, 5% short-term investments, 5% alternative investments, and 1% other investments. The company repurchased 103,000 shares of its common stock for $8.7 million during the fourth quarter of 2024. The company's long-term debt totaled $507.9 million at the end of 2024.

Looking ahead, Selective Insurance Group projects a GAAP combined ratio of 96% to 97% for 2025, including net catastrophe losses of 6 points, assuming no prior-year casualty reserve development. The company anticipates after-tax net investment income of $405 million and an effective tax rate of 21.5%. The company plans to continue its strategic initiatives focused on rate and non-rate actions to drive underwriting profitability and disciplined growth across all segments.