Selective Insurance has posted a 17% rise in net premiums written (NPW) for the third quarter of 2023, sitting at $1,058 billion, representing a $155 million increase from last year’s $903.4 million.
For the nine months ended September 30, NPW came in at $3,143 billion, compared to $2,723.9 billion from the same period last year.
Selective noted that after-tax net investment income in the quarter generated 13.1 points of annualized ROE, benefiting from higher interest rates, active portfolio management, and operating and investing cash flow deployment.
Moreover, within the firm’s Insurance Operations, Standard Commercial Lines grew 15% and Excess and Surplus Lines increased 25% with profitable combined ratios.
Selective also reported a 96.8% combined ratio in the quarter, which was in line with the 96.8% they reported a year ago. The company also witnessed solid improvement within its underlying combined ratio, offset by higher catastrophe losses and no net prior year casualty reserve development.
In addition, catastrophe losses totaled $64.6 million pre-tax in the quarter, up from $34.1 million in Q322.
John J. Marchioni, Chairman, President and Chief Executive Officer, commented: “With a non-GAAP operating ROE of 15.0% in the quarter and 13.2% year to date, we are well positioned to achieve our 10th consecutive year of double-digit operating ROEs. Our disciplined underwriting strategy and commitment to uniquely servicing our customers continue to drive our performance in a challenging external environment with uncertain loss trends and elevated inflation.
“We have a strong and flexible capital position and are actively focused on long-term, profitable growth. This includes continuing our deliberate growth strategy, with the expectation to extend our Commercial Lines footprint into West Virginia and Maine in early 2024, then Washington, Oregon, and Nevada later in the year.
“Our unique, field-based operating model, deep distribution partner relationships, and sophisticated tools for risk selection, pricing, and claims management differentiate us in the marketplace. We have excellent prospects for continued strong performance.”
