Selective Reports Fourth Quarter and Year-End 2025 Results
BRANCHVILLE, N.J.--( BUSINESS WIRE)--Selective Insurance Group, Inc. (NASDAQ: SIGI) reported financial results for the fourth quarter ended December 31, 2025, with net income per diluted common share of $2.52 and non-GAAP operating income 1 per diluted common share of $2.57. ROE was 18.3% and non-GAAP operating ROE 1 was 18.7%.
For the quarter, Selective's combined ratio was 93.8%. Catastrophe losses were 1.7 points, and there was no net prior year casualty reserve development. NPW grew 4% from a year ago, driven by renewal pure price increases of 8.3%. Net investment income increased 17% from a year ago, to $114 million after-tax, generating 13.6 points of annualized ROE in the quarter.
For the year, Selective reported net income per diluted common share of $7.49 and non-GAAP operating income 1 per diluted common share of $7.38. The 2025 combined ratio was 97.2%, an improvement of almost six points, driven by the loss and loss expense ratio. NPW increased 5% driven by renewal pure price increases of 9.5%. After-tax net investment income was $421.2 million, up 16% from a year ago, and generated 13.3 points of ROE.
“We are well-positioned to build on recent momentum. We delivered a double-digit operating ROE of 14.2% in 2025, reflecting the strength of our disciplined execution and resilience of our business model. This exceeds our ten-year average operating ROE of 12.1%. Our performance drove an 18% increase in book value per share in 2025, and we returned $182 million to common stockholders through regular dividends and opportunistic share repurchases,” said John J. Marchioni, Chairman, President and Chief Executive Officer.
“We executed key strategic initiatives across our business, delivering excellent growth and underwriting profitability in Excess and Surplus Lines. In Personal Lines, we improved our underwriting results as we continue to shift toward the mass affluent market. We also are executing targeted rate and underwriting actions in Standard Commercial Lines to achieve future profitability improvements.”
“As Selective celebrates its 100th anniversary in 2026, we are building on a century of strength and resilience while maintaining a clear focus on the future. Our efforts include advancing strategic priorities that enhance our operational fundamentals in risk selection, individual policy pricing, and claims outcomes; diversifying revenue and income within and across our three insurance segments; and expanding our use of data analytics and technology, including artificial intelligence, to enhance efficiency and performance. We remain committed to making strategic investments that fuel continued growth, innovation, and performance excellence,” concluded Mr. Marchioni.
Operating Highlights
Consolidated Financial Results
Quarter Ended
December 31,
Change
Year-to-Date
December 31,
Change
$ and shares in millions, except per share data
2025
2024
2025
2024
Net premiums written
$
1,129.5
1,089.6
4
%
$
4,866.5
4,630.0
5
%
Net premiums earned
1,216.7
1,133.0
7
4,768.2
4,376.4
9
Net investment income earned
143.8
122.8
17
531.2
457.1
16
Net realized and unrealized gains (losses), pre-tax
(4.1
)
(8.0
)
(48
)
8.3
(2.9
)
(382
)
Total revenues
1,364.9
1,256.4
9
5,336.9
4,861.7
10
Net underwriting income (loss), after-tax
60.0
13.3
352
107.4
(104.7
)
(202
)
Net investment income, after-tax
114.2
97.3
17
421.2
362.6
16
Net income (loss) available to common stockholders
152.9
93.2
64
457.2
197.8
131
Non-GAAP operating income (loss) 1
156.2
99.6
57
450.6
200.1
125
Combined ratio
93.8
%
98.5
(4.7
)
pts
97.2
%
103.0
(5.8
)
pts
Loss and loss expense ratio
63.2
67.8
(4.6
)
66.3
72.3
(6.0
)
Underwriting expense ratio
30.5
30.6
(0.1
)
30.8
30.6
0.2
Dividends to policyholders ratio
0.1
0.1
—
0.1
0.1
—
Net catastrophe losses
1.7
pts
(0.9
)
2.6
3.5
pts
6.5
(3.0
)
Non-catastrophe property losses and loss expenses
13.1
15.7
(2.6
)
14.3
15.6
(1.3
)
(Favorable) unfavorable prior year reserve development on casualty lines
—
8.8
(8.8
)
1.9
7.1
(5.2
)
Current year casualty loss costs
48.4
44.2
4.2
46.6
43.1
3.5
Net income (loss) available to common stockholders per diluted common share
$
2.52
1.52
66
%
$
7.49
3.23
132
%
Non-GAAP operating income (loss) per diluted common share 1
2.57
1.62
59
7.38
3.27
126
Weighted average diluted common shares
60.7
61.3
(1
)
61.1
61.3
—
Book value per common share
$
56.74
47.99
18
$
56.74
47.99
18
Adjusted book value per common share 1
57.91
52.10
11
57.91
52.10
11
Overall Insurance Operations
In the fourth quarter, overall NPW increased 4%, as we implemented rate and non-rate actions to enhance underwriting profitability. Average renewal pure price increased 8.3%, down 2.4 points from a year ago. Our combined ratio improved to 93.8%, 4.7 points better than a year ago, primarily because of the lack of prior year casualty reserve development compared to 8.8 points of unfavorable prior year casualty reserve development a year ago. This was partially offset by higher current year casualty loss costs.
Overall, insurance segment performance generated 7.2 points of ROE in the fourth quarter of 2025, up 5.4 points from the fourth quarter of 2024.
Standard Commercial Lines Segment
In the fourth quarter, Standard Commercial Lines premiums, which account for 78% of total NPW, grew 5% from a year ago. This growth reflected average renewal pure price increases of 7.5% and retention of 82%. The fourth quarter combined ratio was 92.9%, 7.3 points better than a year ago. The improvement was driven by favorable prior year casualty reserve development of 1.6 points, compared to unfavorable prior year casualty reserve development of 8.5 points a year ago. This was partially offset by higher current year casualty loss costs in Commercial Auto.
The following table shows the variances in key quarter-to-date and year-to-date measures:
Standard Commercial Lines Segment
Quarter Ended
December 31,
Change
Year-to-Date
December 31,
Change
$ in millions
2025
2024
2025
2024
Net premiums written
$
875.6
833.4
5
%
$
3,837.7
3,632.1
6
%
Net premiums earned
956.8
884.6
8
3,753.9
3,447.6
9
Combined ratio
92.9
%
100.2
(7.3
)
pts
98.3
%
104.2
(5.9
)
pts
Loss and loss expense ratio
61.3
68.5
(7.2
)
66.4
72.5
(6.1
)
Underwriting expense ratio
31.5
31.6
(0.1
)
31.8
31.5
0.3
Dividends to policyholders ratio
0.1
0.1
—
0.1
0.2
(0.1
)
Net catastrophe losses
1.3
pts
(0.9
)
2.2
2.6
pts
5.3
(2.7
)
Non-catastrophe property losses and loss expenses
11.5
14.0
(2.5
)
13.0
13.3
(0.3
)
(Favorable) unfavorable prior year reserve development on casualty lines
(1.6
)
8.5
(10.1
)
1.7
8.3
(6.6
)
Current year casualty loss costs
50.1
46.9
3.2
49.1
45.6
3.5
Standard Personal Lines Segment
We continue to focus on growth in states where we have filed and obtained adequate rate approvals. For the fourth quarter, our deliberate profit improvement actions resulted in Standard Personal Lines premiums, which represent 8% of total NPW, declining 8% and new business falling 18% from a year ago. Renewal pure price was 15.1% and retention was 80%. The fourth quarter 2025 combined ratio increased 11.3 points from a year ago to 103.0%, primarily due to higher current year casualty loss costs driven by Personal Auto and catastrophe losses.
The following table shows the variances in key quarter-to-date and year-to-date measures:
Standard Personal Lines Segment
Quarter Ended
December 31,
Change
Year-to-Date
December 31,
Change
$ in millions
2025
2024
2025
2024
Net premiums written
$
95.5
103.6
(8
)
%
$
397.7
430.7
(8
)
%
Net premiums earned
100.6
107.1
(6
)
408.2
424.9
(4
)
Combined ratio
103.0
%
91.7
11.3
pts
100.6
%
109.3
(8.7
)
pts
Loss and loss expense ratio
79.3
67.9
11.4
77.3
85.8
(8.5
)
Underwriting expense ratio
23.7
23.8
(0.1
)
23.3
23.5
(0.2
)
Net catastrophe losses
7.2
pts
1.0
6.2
10.1
pts
18.8
(8.7
)
Non-catastrophe property losses and loss expenses
33.1
36.3
(3.2
)
33.8
38.6
(4.8
)
Unfavorable prior year reserve development on casualty lines
5.0
4.7
0.3
3.7
1.2
2.5
Current year casualty loss costs
34.0
25.9
8.1
29.7
27.2
2.5
Excess and Surplus Lines Segment
For the fourth quarter, Excess and Surplus Lines premiums, which represent 14% of total NPW, increased 4% from the prior-year period, driven by average renewal pure price increases of 7.8%. The fourth quarter 2025 combined ratio was 93.1%, in line with a year ago.
The following table shows the variances in key quarter-to-date and year-to-date measures:
Excess and Surplus Lines Segment
Quarter Ended
December 31,
Change
Year-to-Date
December 31,
Change
$ in millions
2025
2024
2025
2024
Net premiums written
$
158.4
152.6
4
%
$
631.2
567.2
11
%
Net premiums earned
159.3
141.3
13
606.1
504.0
20
Combined ratio
93.1
%
93.1
—
pts
87.8
%
89.7
(1.9
)
pts
Loss and loss expense ratio
63.9
63.6
0.3
57.5
59.2
(1.7
)
Underwriting expense ratio
29.2
29.5
(0.3
)
30.3
30.5
(0.2
)
Net catastrophe losses
0.6
pts
(2.0
)
2.6
4.9
pts
4.6
0.3
Non-catastrophe property losses and loss expenses
10.0
10.8
(0.8
)
8.8
11.5
(2.7
)
(Favorable) prior year reserve development on casualty lines
6.3
14.2
(7.9
)
1.6
4.0
(2.4
)
Current year casualty loss costs
47.0
40.6
6.4
42.2
39.1
3.1
Investments Segment
For the fourth quarter, after-tax net investment income was $114 million, up 17% from a year ago. The after-tax income yield averaged 4.1% for both the fixed income securities portfolio and the overall portfolio. With invested assets per dollar of common stockholders' equity of $3.32 as of December 31, 2025, net investment income generated 13.6 points of annualized ROE.
Investments Segment
Quarter Ended
December 31,
Change
Year-to-Date
December 31,
Change
$ in millions, except per share data
2025
2024
2025
2024
Net investment income earned, after-tax
$
114.2
97.3
17
%
$
421.2
362.6
16
%
Net investment income per common share
1.88
1.59
18
6.90
5.92
17
Effective tax rate
20.6
%
20.7
(0.1
)
pts
20.7
%
20.7
—
pts
Average yields:
Portfolio:
Pre-tax
5.1
5.1
—
5.1
5.0
0.1
After-tax
4.1
4.0
0.1
4.0
4.0
—
Fixed income securities:
Pre-tax
5.2
%
5.1
0.1
pts
5.2
%
5.0
0.2
pts
After-tax
4.1
4.0
0.1
4.2
4.0
0.2
Annualized ROE contribution
13.6
13.2
0.4
13.3
12.8
0.5
Balance Sheet
$ in millions, except per share data
December 31, 2025
December 31, 2024
Change
Total assets
$
15,155.7
13,514.2
12
%
Total investments
11,302.4
9,651.3
17
Long-term debt
901.9
507.9
78
Stockholders’ equity
3,609.0
3,120.1
16
Common stockholders' equity
3,409.0
2,920.1
17
Invested assets per dollar of common stockholders’ equity
3.32
3.31
—
Net premiums written to policyholders' surplus
1.36
1.60
(15
)
Book value per common share
56.74
47.99
18
Adjusted book value per common share 1
57.91
52.10
11
Debt to total capitalization
20.0
%
14.0
%
6.0
pts
Book value per common share increased by $8.75, or 18%, during 2025. The increase was primarily attributable to $7.49 of net income per diluted common share and a $3.01 decrease in after-tax net unrealized losses on our fixed income securities portfolio, partially offset by $1.57 in common stockholder dividends. The decrease in after-tax net unrealized losses on our fixed income securities portfolio was primarily driven by lower interest rates. In the fourth quarter of 2025, the Company repurchased $30 million, or 395,073 shares, of common stock at an average price of $75.94.
Selective's Board of Directors also declared:
Guidance
For 2026, our full-year expectations are as follows:
The supplemental investor package, with financial information not included in this press release, is available on the Investors page of Selective’s website at www.Selective.com.
Selective’s quarterly analyst conference call will be simulcast at 8:00 AM ET, on Friday, January 30, 2026, on www.Selective.com. The webcast will be available for rebroadcast until the close of business on February 28, 2026.
About Selective Insurance Group, Inc.
Selective Insurance Group, Inc. (Nasdaq: SIGI) is a holding company for 10 property and casualty insurance companies rated "A+" (Superior) by AM Best. Through independent agents, the insurance companies offer standard insurance for commercial and personal risks and specialty insurance for commercial risks. Selective also offers flood insurance through the National Flood Insurance Program's Write Your Own Program. Selective's unique position as both a leading insurance group and employer of choice is widely recognized, with awards and honors including listing in Forbes Best Midsize Employers and certification for six consecutive years as a Great Place to Work®.
1Reconciliation of Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss) and Certain Other Non-GAAP Measures
Non-GAAP operating income (loss), non-GAAP operating income (loss) per diluted common share, and non-GAAP operating return on common equity differ from net income (loss) available to common stockholders, net income (loss) available to common stockholders per diluted common share, and return on common equity, respectively, by the exclusion of after-tax net realized and unrealized gains and losses on investments included in net income (loss). Adjusted book value per common share differs from book value per common share by excluding total after-tax unrealized gains and losses on investments included in accumulated other comprehensive income (loss). These non-GAAP measures are used as important financial measures by management, analysts, and investors because the timing of realized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized gains and losses on investments could distort the analysis of trends. These operating measurements are not intended to be a substitute for net income (loss) available to common stockholders, net income (loss) available to common stockholders per diluted common share, return on common equity, and book value per common share prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of net income (loss) available to common stockholders, net income (loss) available to common stockholders per diluted common share, return on common equity, and book value per common share to non-GAAP operating income (loss), non-GAAP operating income (loss) per diluted common share, non-GAAP operating return on common equity, and adjusted book value per common share, respectively, are provided in the tables below.
Note: All amounts included in this release exclude intercompany transactions.
Reconciliation of Net Income (Loss) Available to Common Stockholders to Non-GAAP Operating Income (Loss)
$ in millions
Quarter Ended December 31,
Year-to-Date December 31,
2025
2024
2025
2024
Net income (loss) available to common stockholders
$
152.9
93.2
457.2
197.8
Net realized and unrealized investment (gains) losses included in net income, before tax
4.1
8.0
(8.3
)
2.9
Tax on reconciling items
(0.8
)
(1.7
)
1.7
(0.6
)
Non-GAAP operating income (loss)
$
156.2
99.6
450.6
200.1
Reconciliation of Net Income (Loss) Available to Common Stockholders per Diluted Common Share to Non-GAAP Operating Income (Loss) per Diluted Common Share
Quarter Ended December 31,
Year-to-Date December 31,
2025
2024
2025
2024
Net income (loss) available to common stockholders per diluted common share
$
2.52
1.52
7.49
3.23
Net realized and unrealized investment (gains) losses included in net income, before tax
0.07
0.13
(0.14
)
0.05
Tax on reconciling items
(0.02
)
(0.03
)
0.03
(0.01
)
Non-GAAP operating income (loss) per diluted common share
$
2.57
1.62
7.38
3.27
Reconciliation of Return on Common Equity to Non-GAAP Operating Return on Common Equity
Quarter Ended December 31,
Year-to-Date December 31,
2025
2024
2025
2024
Return on Common Equity
18.3
%
12.7
14.4
7.0
Net realized and unrealized investment (gains) losses included in net income, before tax
0.5
1.1
(0.3
)
0.1
Tax on reconciling items
(0.1
)
(0.3
)
0.1
—
Non-GAAP Operating Return on Common Equity
18.7
%
13.5
14.2
7.1
Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share
Quarter Ended December 31,
Year-to-Date December 31,
2025
2024
2025
2024
Book value per common share
$
56.74
47.99
56.74
47.99
Total unrealized investment (gains) losses included in accumulated other comprehensive (loss) income, before tax
1.47
5.21
1.47
5.21
Tax on reconciling items
(0.30
)
(1.10
)
(0.30
)
(1.10
)
Adjusted book value per common share
$
57.91
52.10
57.91
52.10
Note: Amounts in the tables above may not foot due to rounding.
Forward-Looking Statements
Certain statements in this report, including information incorporated by reference, are “forward-looking statements” defined in the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve uncertainties and known and unknown risks and other factors that may cause actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. In some cases, forward-looking statements include the words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “attribute,” “confident,” “strong,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” “continue,” or comparable terms. Our forward-looking statements are only predictions; we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, except as may be required by law.
Factors that could cause our actual results to differ materially from what we project, forecast, or estimate in forward-looking statements include, without limitation: