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Selective Insurance Group has reported its financial results for the second quarter of 2026, reporting a net income of $127.1 million and an improved combined ratio of 98%.
Net income in Q2 2026 increased 52% from the same period last year, while combined ratio decreased 2.2pts, from 100.2% in Q2 2025, primarily due to lower catastrophe and non-catastrophe property losses.
Catastrophe losses contributed 5.6 points to the combined ratio, and there was no net prior year casualty reserve development.
Net premiums written (NPW) decreased 5% from a year ago, as Selective continued to implement rate and non-rate actions to enhance underwriting profitability. This result was driven by a 6% decrease in Standard Commercial Lines.
Renewal pure price increases were 6.5%. On the investment side, net investment income increased 18% from a year ago, to $119 million after-tax, generating 13.9 points of annualized ROE in the quarter.
Selective also reported a year-over-year decrease of 6% in Standard Commercial Lines premiums (79% of NPW) due to lower new business.
Profitability initiatives led to a 6.5% average renewal pure price increase and 81% retention, driven by prioritising top-performing business over poorer-performing segments.
The line’s combined ratio improved to 99.3%, benefiting from zero net prior-year casualty reserve development and lower non-catastrophe property losses, despite higher current-year casualty costs.
Standard Personal Lines premiums (8% of total NPW), declined 8% and new business decreased 36% from a year ago. Renewal pure price was 8.9% and retention was 79%.
Q2 2026 combined ratio increased 3.9 points, to 95.5%, driven by higher non-catastrophe losses and a higher expense ratio, partially offset by lower catastrophe losses.
Excess and Surplus Lines premiums (13% of total NPW), declined 2% compared to Q2 2025, with average renewal pure price increases of 3.4%.
Combined ratio stood at 91.8%, 2.0 points higher than a year ago. The increase was due to higher current year casualty loss costs and non-catastrophe property losses, partially offset by lower catastrophe losses.
“Our results reflect disciplined execution in an increasingly competitive environment. Operating ROE in the quarter was 13.7%, which marked our eighth consecutive quarter of double-digit operating returns. With our strong capital position and commitment to delivering long-term value, we returned 45% of after-tax net income through our regular dividend and $32 million of share repurchases. Even with this capital return, book value per share grew 3% in the quarter,” said John J. Marchioni, Chairman, President and Chief Executive Officer.
Adding: “Over the last two years, we have taken deliberate actions to improve the quality and long-term profitability of our underwriting portfolio. While those decisions contributed to lower premium in the quarter, they reflect the underwriting discipline that has long differentiated Selective and our commitment to pursuing growth where risk-adjusted returns are most attractive.”
The post Selective Insurance Q2’26 net income increases to $127.1m appeared first on ReinsuranceNe.ws.
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