BRANCHVILLE, N.J. – Selective Insurance Group, Inc. (NASDAQ:) reported third quarter earnings that fell short of analyst expectations, as catastrophe losses surged due to an active storm season.
The property and casualty insurer posted adjusted earnings per share of $1.40 for Q3, missing the analyst consensus estimate of $1.66. Revenue came in at $1.24 billion, topping expectations of $1.17 billion.
Selective’s combined ratio, a key measure of underwriting profitability, deteriorated to 99.5% from 96.8% a year ago. The company said catastrophe losses added 13.4 points to the combined ratio, up sharply from 6.6 points in Q3 2023.
“The continued frequency and severity of storms in the third quarter, including the devastation from Hurricane Helene, underscore our unwavering commitment to our customers, agency partners, and communities,” said John J. Marchioni, Chairman, President and CEO.
Net premiums written increased 9% year-over-year to $1.16 billion, driven by renewal pure price increases averaging 10.5%.
For the full year 2024, Selective raised its expected GAAP combined ratio to 102.5% from 101.5% previously, reflecting the elevated Q3 catastrophe losses. The company maintained its after-tax net investment income forecast of $360 million.
Selective’s board approved a 9% increase in the quarterly cash dividend to $0.38 per share.
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