Selective Insurance has posted a 98.4% combined ratio for the second quarter despite experiencing elevated catastrophe losses of $83 million.
The combined ratio in the prior year quarter was 93.1%.
Cat losses for the quarter primarily consist of $43 million from two April storms and $20 million related to civil unrest claims.
“In addition, we incurred COVID-19-related underwriting items totaling $9.6 million in the quarter, which increased the combined ratio by 1.3 points,” noted said John Marchioni, President and CEO.
“Despite these losses, the combined ratio in the quarter was a profitable 98.4%, reflecting excellent underlying profitability.”
Net investment income, after-tax, was down 40% in the quarter to $28.5 million.
The decrease was driven by alternative investment losses of $16 million pre-tax, which are reported on a one-quarter lag, and reflect the market decline during the first quarter.
For the quarter, overall Net Premiums Written increased 3% compared to the second quarter of 2019, driven by renewal pure price increases, strong retention, and new business growth.
“I cannot be more proud of our employees who have transitioned seamlessly into a work from home environment, and have continued to provide excellent service to our customers and distribution partners,” Marchioni added.