Selective Insurance Group (SIGI) Q3 2026 Earnings Call: Combined Ratio Improves, Investment Income Outlook Raised
Source Tradingkey
Key Takeaways
- Selective Insurance Group (SIGI) reported Q3 2026 diluted EPS of $2.11 and non-GAAP operating EPS of $2.37. Quarterly ROE was 15.1%, while operating ROE reached 16.9%.
- The GAAP combined ratio improved 1.8 points year over year to 96.8%, including 5.4 points of catastrophe losses. E&S recorded an 86.5% combined ratio.
- After-tax net investment income increased 16% year over year to $127 million. Management raised its full-year outlook to $490 million from $480 million.
- Standard commercial underwriting actions pressured near-term premium volume. Retention in the lowest-performing cohorts fell to 52% from 79%, while renewal pure price in those cohorts increased to 17.2% from 12.8%.
- Personal lines’ year-to-date underlying combined ratio improved 3.3 points. Target-market homeowners direct premiums written rose 8%, partly offset by a 12% decline in auto.
- The company increased its quarterly dividend by 12% and added a new $200 million share repurchase authorization, bringing total available capacity to approximately $253 million as of the announced authorization.
Key Financial Data
| Metric | Q3 2026 | Change or context |
|---|---|---|
| Diluted EPS | $2.11 | GAAP result |
| Non-GAAP operating EPS | $2.37 | Company-defined operating measure |
| ROE | 15.1% | Quarterly result |
| Operating ROE | 16.9% | Ninth consecutive quarter of double-digit operating returns |
| GAAP combined ratio | 96.8% | Improved 1.8 points year over year |
| Catastrophe losses | 5.4 points | Included in the combined ratio |
| After-tax net investment income | $127 million | Up 16% year over year |
| Underwriting expense ratio | 32.1% | Affected by lower premium volume and premium-audit-related write-offs |
| Book value per common share | $55.02 | Down 5%, primarily due to higher after-tax net unrealized investment losses |
| Adjusted book value per common share | $62.00 | Up 2%; excludes unrealized investment gains and losses |
| GAAP equity | $3.4 billion | Quarter-end balance |
| Statutory surplus | $3.7 billion | Quarter-end balance |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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