Selective Insurance has reported income of $90.3 million for the first quarter of 2023, compared to $54.0 million in Q1’22, helped by strong growth in both net written premiums (NPW) and investment income.
Selective Insurance Group reported for Q1, overall NPW increased 12% from a year ago, and growth was strong across all our underwriting segments, driven by renewal pure price increases, solid retention, new business, and strong exposure growth.
Selective’s combined ratio was 95.7% in the quarter, compared to 93.1% in the prior year period, driven principally by higher catastrophe losses and lower prior year favorable casualty reserve development.
This quarter’s catastrophe losses were driven by three large storms totaling $39 million in ultimate pre-tax losses.
Net investment income, after-tax, of $73.1 million was up 25% compared to first quarter 2022, driven by higher book yields from the investment of operating and investing cash flows over the past year in the higher interest rate environment.
“We are pleased with our strong start to 2023, delivering excellent growth and solid underwriting margins despite elevated catastrophe losses. Our underwriting discipline and long-term approach to managing price increases relative to projected loss trends are the primary drivers of our consistent success,” said John Marchioni, Chairman, President and CEO.
“We are well positioned to navigate the challenging economic and insurance loss cost environments, with a strong balance sheet, sophisticated underwriting capabilities, and excellent distribution partner relationships.”
