Selective Insurance has reported total revenue of $798.4 million during the fourth quarter of 2020, representing a 10% increase on the same period in the previous year.
Looking at the whole of 2020, Selective’s revenues were similarly up 3% to $2.92 billion.
The company also recorded 8% growth in net premiums written last quarter due to solid retention, new business growth, and strong 4.8% renewal pure price increases.
The combined ratio for this period was 88.1%, compared to 91.8% in Q4 2019, reflecting favorable reserve development that generated 10.8 points of annualized ROE.
For the year, premium growth was 3% and included 4 points of negative impact from COVID-19-related items.
The combined ratio of 94.9% included elevated catastrophe losses, that were partially offset by favorable prior year casualty reserve development and lower non-catastrophe property losses.
In terms of investments, Selective reported an 18% increase in income during Q4, ending the quarter at $55.5 million.
Investment income likewise increased 2% over the full year when compared with 2019, totaling $184.6 million.
“Our insurance and investment segments were both strong contributors to our results in the quarter,” said John Marchioni, President and CEO.
“For the year, despite the significant economic and social impacts created by COVID-19 as well as the elevated catastrophe losses totaling 8.0 points on the combined ratio, we generated our seventh consecutive year of double-digit non-GAAP operating ROEs, a truly impressive achievement.”