Selective Insurance saw its net income reach $69.9 million over the third quarter, up from the $56.2 million achieved in the prior year period.
Year-to-date income lags behind 2019 by 37%, however.
The company has also seen its combined ratio improve 1.4 percentage points after a catastrophe-heavy Q2 2020 dragged it down to 98.4%.
After-tax net investment income hit $55 million, up 22% compared to Q3 2019.
Underwriting income after tax fell to $16.6 million, a 33% drop compared to the prior year period. YTD underwriting income is down 54% against 2019.
“We delivered strong results despite a quarter of unusually high weather-related catastrophe losses for Selective and the industry,” said John Marchioni, President and Chief Executive Officer of Selective.
“We produced a 97.0% combined ratio, an excellent 10.9% non-GAAP operating ROE, and $1.06 of non-GAAP operating income per share, despite experiencing $80 million, or 11.4 points on the combined ratio, of catastrophe losses in the quarter.
“The Midwest derecho and Hurricane Isaias accounted for a combined $50 million of the catastrophe losses, with 19 smaller events accounting for the remainder.
“We grew NPW 6% in the quarter, driven by excellent results in our core business, standard commercial lines.”
Marchioni added, “Our solid growth and profitability in a challenging environment reflects our strong relationships with best-in-class distribution partners, our sophisticated underwriting and pricing tools, and excellent customer servicing capabilities.
“We are extremely proud of our Claims team for their prompt response and excellent customer service, demonstrating the value we provide to our customers in the most challenging times.”
