Selective Insurance Group has posted $991.5 million in net premiums written (NPW) for the fourth quarter of 2023, representing a 17% or $142 million increase from the prior year period.
For Q4, Standard Commercial Lines premiums (representing 77% of total NPW) increased 13% from a year ago.
Selective noted that the premium growth reflected average renewal pure price increases of 7.3%, new business growth of 14%, strong exposure growth, and stable retention of 86%.
At the same time, Standard Personal Lines premiums (representing 11% of total NPW) increased 27% from the previous year’s period.
Excess and Surplus Lines premiums (representing 12% of total NPW) increased 36% in the fourth quarter of 2023, compared to the prior-year period. Selective said that this was driven by average renewal pure price increases of 6.1% and new business growth of 58%.
For the quarter, Selective reported a combined ratio of 93.7%, a slight improvement from last year’s 94.7%.
Meanwhile, for the full-year 2023, Selective posted $4.1 billion in NPW, representing a 16% increase from the prior year’s $3.5 billion.
Combined ratio for the year also sat at 96.5%, compared to 2022’s 95.1.
John J. Marchioni, Chairman, President and Chief Executive Officer, commented: “2023 marked a significant milestone for Selective as we achieved our 10th consecutive year of double-digit operating ROE and exceeded $4 billion of net premiums written for the first time in our nearly 100-year history.
“Our annual operating ROE of 14.4% exceeded our 12% target, and net premiums written increased 16%. In an environment of elevated and uncertain loss trends, we remain focused on disciplined underwriting to consistently achieve our 95% combined ratio target. Standard Commercial Lines and Excess & Surplus Lines, representing approximately 90% of NPW, are performing at or better than our combined ratio target and producing excellent top-line growth. As we continue our transition to the mass affluent market, aggressive profit improvement plans are underway in Standard Personal Lines.”
Adding: “Selective’s consistent ROE, averaging 12.2% over the past decade, is a significant accomplishment. During this time, we more than doubled NPW and book value per share, nearly tripled operating income, and advanced key strategic initiatives. Our talented employees and close relationships with distribution partners are two core competitive advantages enabling us to uniquely serve our customers and generate profitable growth. We are very well-positioned heading into 2024.”
