Selective Insurance Group has reported $1.16 billion in net premiums written (NPW) for the first quarter of 2023, marking a notable 16% increase, equivalent to $157 million, compared to the first quarter of 2023.
For Q1, Standard Commercial Lines premiums, which account for 80% of the total NPW, experienced a robust 15% growth compared to the previous year.
Selective attributed this premium growth to several factors, including average renewal pure price increases of 7.6%, a 17% expansion in new business, significant exposure growth, and a stable retention rate of 86%.
At the same time, Standard Personal Lines premiums (representing 9% of total NPW) witnessed a 17% increase from Q1’23, driven by renewal pure price increases of 14.3% and larger average policy sizes.
Excess and Surplus Lines premiums (representing 11% of total NPW) surged by 24% compared to the first quarter of the previous year. This growth was fueled by a remarkable 57% increase in new business and average renewal pure price increases of 5.2%.
Selective reported a combined ratio of 98.2% for the quarter, reflecting a 2.5 point increase from the first quarter of 2023. This included 3.3 points of unfavourable prior year casualty reserve development and 5.3 points of catastrophe losses.
John J. Marchioni, Chairman, President and Chief Executive Officer of Selective, comments, “Our organisation is committed to disciplined underwriting and enterprise risk management. Our detailed planning and reserving, specific underwriting and pricing actions, and results monitoring process allow us to quickly identify and respond to risks, opportunities, and trends. This positions us as a stable market for our customers and distribution partners.
“During the quarter, we strengthened general liability reserves for recent accident years due to increased severities. We primarily attribute the elevated and uncertain loss trends to the impacts of social inflation, which we have discussed in recent quarters. Our fundamentals remain strong with a profitable combined ratio, average renewal pure price increase of 8.1%, and double-digit operating ROE in the quarter.
“Our strong financial position allows us to continue executing profitable growth strategies across our insurance segments. We successfully launched Standard Commercial Lines in Maine and West Virginia in early April, and we expect Nevada, Washington, and Oregon to follow later this year. We believe our prospects for profitable growth within our existing appetite and operating states are excellent, complemented by continued geographic expansion,” concluded Mr. Marchioni.
