Selective Insurance profit steadies as reserves bite
Selective Insurance Group posted third-quarter earnings through Sept. 30 that showed gains in some areas and losses in others. Commercial lines premiums grew 4 percent while personal lines fell 6 percent. The company earned $1.85 per share under standard accounting rules.
Standard commercial business made up 78 percent of total premiums written. Renewal pricing rose 8.9 percent, and customer retention hit 82 percent. The combined ratio reached 101.1 percent, worse than last year because of higher costs in commercial auto coverage and reserve adjustments.
Personal lines saw new business drop 20 percent from a year earlier. Pricing increases averaged 16.9 percent while retention was 79 percent. The combined ratio improved to 110.1 percent despite higher auto losses.
Excess and surplus lines grew 14 percent and produced a combined ratio of 76.2 percent. Investment income climbed 18 percent to $110 million. The board approved a $200 million stock buyback program, effective Oct. 27, and declared dividends payable on Dec. 1.
