Selective Insurance Group Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 22 October 2025: press release. Guidance figures: 1 raised, 2 lowered, 2 new, 2 kept. The quarter’s numbers.

Key takeaways

Net income and combined ratio improved: Net income per diluted common share was $1.85, against $1.47 a year earlier. Non-GAAP operating income per diluted share was $1.75. The combined ratio was 98.6%, compared to 99.5%. Source
Commercial combined ratio rose 1.9 points: The Standard Commercial Lines combined ratio was 101.1%, up 1.9 points from a year ago. Premiums were 78% of total NPW. Commercial Auto casualty costs drove the change. Source
Personal combined ratio improved 12 points: The Standard Personal Lines combined ratio was 110.1%, improved 12.0 points, mainly from lower catastrophe losses. Higher current year casualty costs and Personal Auto development partly offset. Source
Casualty reserve strengthening of $40 million: Unfavorable prior year casualty reserve development was 3.3 points, or $40 million, mainly in standard commercial lines. Current year casualty loss costs were 48.4 points, up from 42.2. Source
Book value per share rose 13% this year: Book value per common share was $54.46, up 13% from year-end 2024. Adjusted book value per common share was $55.83, up 7%. Source
New $200 million repurchase authorization: The Board authorized a new program of up to $200 million, replacing the prior authorization. It has no expiration date and takes effect October 27, 2025. Source
Kansas entered; Montana and Wyoming planned: Standard Commercial Lines entered Kansas this quarter. Management plans to enter Montana and Wyoming in 2026. Source

“Our full-year combined ratio outlook remains at 97 to 98%”
John J. Marchioni, Chairman, President and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Combined ratio Source	Full year 2025	97% to 98%	Kept
Net catastrophe losses assumption Source	Full year 2025	4 points	Lowered from 6 points
After-tax net investment income Source	Full year 2025	$420 million	Raised from $415 million
Effective tax rate Source	Full year 2025	21.5%	Kept
Weighted average diluted shares Source	Full year 2025	61.1 million	Lowered from 61.5 million
Share repurchases Source	Program effective October 27, 2025, no expiration date	up to $200 million	New
Capital returned through dividends Source	Over time	20% to 25% of earnings
New Standard Commercial Lines states Source	2026	2 states (Montana and Wyoming)	New

What changed from last quarter

Guidance lowered: The full-year net catastrophe loss assumption within the combined ratio range was reduced from 6 points to 4 points. Source
Guidance raised: After-tax net investment income guidance rose from $415 million to $420 million. Source
Guidance lowered: Weighted average fully diluted share guidance fell from 61.5 million to 61.1 million. Source
Guidance kept: The full-year GAAP combined ratio range of 97% to 98% was kept from the prior update. Source
New: A new $200 million share repurchase program was authorized to replace the prior program. Source
Ended: The existing share repurchase program is replaced by the new authorization and remains effective through October 24, 2025. Source
New: The quarterly common dividend was increased 13%, from $0.38 to $0.43 per share. Source
New: Standard Commercial Lines expanded its footprint into Kansas during the quarter. Source

Results and growth drivers

Net income and combined ratio improved: Net income per diluted common share was $1.85, against $1.47 a year earlier. Non-GAAP operating income per diluted share was $1.75. The combined ratio was 98.6%, compared to 99.5%. Source
Premiums grew 4% on renewal pricing: Net premiums written were $1,207.9 million, up 4%. Renewal pure price increases averaged 9.6%, down 0.9 points from a year earlier, and premium growth was attributed to that pricing. Source
Investment income rose 18%: After-tax net investment income was $110 million, up 18%, and generated 13.6 points of annualized ROE. Year-to-date after-tax investment income was $307.0 million, up 16%. Source

Standard Commercial Lines

Commercial combined ratio rose 1.9 points: The Standard Commercial Lines combined ratio was 101.1%, up 1.9 points from a year ago. Premiums were 78% of total NPW. Commercial Auto casualty costs drove the change. Source
Commercial premiums grew 4%: Standard Commercial Lines premiums grew 4% from a year ago, with 8.9% average renewal pure price increases and 82% retention. Year-to-date combined ratio was 100.1%, down 5.5 points. Source
Lower catastrophe losses offset costs: Net catastrophe losses in the segment were 1.6 points, against 11.5 points a year earlier. Non-catastrophe property losses rose 1.5 points to 12.5 points. Source

“With a 98.3% combined ratio through the first nine months of the year and strong net investment income, we delivered year-to-date operating ROE of 12.6%”
John J. Marchioni, Chairman, President and Chief Executive Officer

Standard Personal Lines

Personal combined ratio improved 12 points: The Standard Personal Lines combined ratio was 110.1%, improved 12.0 points, mainly from lower catastrophe losses. Higher current year casualty costs and Personal Auto development partly offset. Source
Personal premiums fell on profit actions: Premiums fell 6% to $104.2 million, and new business fell 20%. Net catastrophe losses were 12.0 points, against 38.8 points a year earlier. Source
Personal non-catastrophe losses rose: Non-catastrophe property losses were 39.3 points, against 35.3. Current year casualty loss costs were 31.8 points, up from 24.6. Source

Excess and Surplus Lines

E&S premiums grew 14%: Excess and Surplus Lines premiums were 13% of total NPW. Year-to-date premiums were $472.8 million, also up 14%. Source
E&S combined ratio fell 7.0 points: The Excess and Surplus Lines combined ratio was 76.2%, 7.0 points lower than a year earlier. Net catastrophe losses were a 1.5-point benefit, against 5.2 points. Source
E&S casualty costs rose: Current year casualty loss costs were 40.6 points, up from 37.3 points. Year-to-date the combined ratio was 85.9%, against 88.4%. Source

“Together, these actions underscore our unwavering commitment to delivering long-term value to shareholders”
John J. Marchioni, Chairman, President and Chief Executive Officer

Catastrophes, reserves and margins

Catastrophe losses fell sharply: Net catastrophe losses were 2.1 points, against 13.4 points a year earlier. Non-catastrophe property losses and loss expenses were 14.1 points, up from 13.2. Source
Casualty reserve strengthening of $40 million: Unfavorable prior year casualty reserve development was 3.3 points, or $40 million, mainly in standard commercial lines. Current year casualty loss costs were 48.4 points, up from 42.2. Source
Insurance operations earned 1.6 ROE points: Insurance segment performance generated 1.6 points of ROE. Year-to-date the combined ratio was 98.3%, against 104.6% a year earlier. Source

Investments and book value

Book value per share rose 13% this year: Book value per common share was $54.46, up 13% from year-end 2024. Adjusted book value per common share was $55.83, up 7%. Source
Lower rates cut unrealized losses: After-tax net unrealized losses on fixed income securities decreased, a $2.77 per-share effect over the first nine months, mainly from lower interest rates. Source
Dividends absorbed $1.14 per share: Dividends to common stockholders reduced book value by $1.14 per share over the first nine months of 2025. Source

Capital and shareholder returns

Quarterly dividend raised 13%: The quarterly common dividend rose from $0.38 to $0.43 per share, the twelfth consecutive annual increase. It is payable December 1, 2025. Source
New $200 million repurchase authorization: The Board authorized a new program of up to $200 million, replacing the prior authorization. It has no expiration date and takes effect October 27, 2025. Source
$36 million repurchased in quarter: The company repurchased 464,701 shares at an average price of $77.95, for $36.2 million, in the third quarter. Source
Prior program remains effective until October: The existing program is replaced by the new authorization. Management said it remains in effect until the date shown. Source
Dividend target of 20% to 25%: Management said it targets returning 20% to 25% of earnings through dividends over time, and repurchases shares opportunistically. Source

Footprint expansion and strategy

Kansas entered; Montana and Wyoming planned: Standard Commercial Lines entered Kansas this quarter. Management plans to enter Montana and Wyoming in 2026. Source
Fourteen states added over eight years: Management said 14 states were added to Standard Commercial Lines over the last eight years, significantly growing the market. Source
Focus on margins and profitable growth: Management said the focus is on improving underwriting margins and investing in areas that support long-term, profitable growth. Source

Coming up, as management said on 22 October 2025

New repurchase program starts October 27: The $200 million program takes effect October 27, 2025 and has no expiration date. Source
Common dividend payable December 1: The $0.43 quarterly dividend is payable December 1, 2025, to holders of record on November 14, 2025. Source
Preferred dividend payable December 15: The quarterly preferred dividend of $287.50 per share is payable December 15, 2025. Source
Montana and Wyoming entry in 2026: Standard Commercial Lines plans to enter Montana and Wyoming in 2026. Source

Figures management reported

Figure	Reported
Combined ratio Source	98.6%
Net premiums written Source	$1,207.9 million, up 4%
Prior-year reserve development Source	3.3 points, or $40 million, unfavorable
Catastrophe losses Source	2.1 points
Investment income Source	$110 million after-tax, up 18%
Book value per share Source	$54.46

Risks management discussed

Financial: Management books its best estimate of reserves each quarter and does not assume future reserve development. Prior year casualty development was 3.3 points this quarter. Source
Operational: Commercial Auto saw higher current year casualty loss costs and unfavorable prior year development, which management named as the drivers of the segment combined ratio rise. Source
External: Catastrophe losses were 2.1 points this quarter, and the full-year guidance assumes net catastrophe losses of 4 points. Source
Demand: Standard Personal Lines premiums fell 6% and new business fell 20% as profit improvement actions were taken. Source

Earlier plans management reported on

Not stated: Management said the full-year combined ratio range is unchanged; no further status is given. Source
Not stated: Management said it remains committed to its long-term capital management strategy. Source
Not stated: Management described a stated goal of operating Standard Commercial Lines with a near-national footprint. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Selective Reports Third Quarter 2025 Results

Net Income per Diluted Common Share of $1.85 and Non-GAAP Operating Income per

Diluted Common Share of $1.75;

Return on Common Equity ("ROE") of 14.0% and Non-GAAP Operating ROE of 13.2%

Quarterly Dividend Increased 13% to $0.43 per Common Share; New $200 Million Share Repurchase Program Authorized to Replace Prior Program

In the third quarter of 2025:

Net premiums written ("NPW") increased 4% from the third quarter of 2024;
The GAAP combined ratio was 98.6%, compared to 99.5% in the third quarter of 2024;
Commercial Lines renewal pure price increases averaged 8.9%, compared to 9.1% in the third quarter of 2024;
After-tax net investment income was $110 million, up 18% from the third quarter of 2024;
Book value per common share was $54.46, up 5% from last quarter; and
Adjusted book value per common share¹ was $55.83, up 2% from last quarter.

Branchville, NJ - October 22, 2025 - Selective Insurance Group, Inc. (NASDAQ: SIGI) reported financial results for the third quarter ended September 30, 2025, with net income per diluted common share of $1.85 and non-GAAP operating income per diluted common share of $1.75. ROE was 14.0% and non-GAAP operating ROE was 13.2%.

For the quarter, Selective's combined ratio was 98.6%. Catastrophe losses were 2.1 points, and net unfavorable prior year casualty reserve development was 3.3 points, driven by $40 million of reserve strengthening, mainly in standard commercial lines. NPW grew 4% from a year ago driven by renewal pure price increases of 9.6%. Net investment income increased 18% from a year ago, to $110 million after-tax, and generated 13.6 points of annualized ROE in the quarter.

Today, the company announces that its Board of Directors authorized a new share repurchase program under which it may repurchase up to $200 million of its outstanding shares. The program is effective October 27, 2025 and has no expiration date. The company’s existing share repurchase program, which had $19.9 million of shares remaining as of September 30, 2025, will remain effective through October 24, 2025.

“Our full-year combined ratio outlook remains at 97 to 98%. With a 98.3% combined ratio through the first nine months of the year and strong net investment income, we delivered year-to-date operating ROE of 12.6%,” said John J. Marchioni, Chairman, President and Chief Executive Officer.

“We believe our focus on improving underwriting margins and investing in areas that support long-term, profitable growth positions us for stronger, more sustainable performance. This quarter, we expanded our Standard Commercial Lines footprint into Kansas, and we plan to enter Montana and Wyoming in 2026. We’ve strategically added 14 states over the last 8 years, significantly growing our market and advancing our stated goal of operating our Standard Commercial Lines business with a near-national footprint.”

“We remain committed to our long-term capital management strategy - prioritizing investments in insurance operations that drive profitable growth, targeting 20% to 25% of our earnings returned through dividends over time, and opportunistically repurchasing shares. This quarter, we are pleased to announce a 13% increase in our quarterly dividend - our twelfth consecutive annual increase - and a new $200 million share repurchase program authorization, replacing the prior program. We repurchased $36 million of common stock in the quarter under our prior authorization. Together, these actions underscore our unwavering commitment to delivering long-term value to shareholders,” concluded Mr. Marchioni.

Operating Highlights

Consolidated Financial Results	Quarter Ended September 30,					Change		Year-to-Date September 30,				Change
$ and shares in millions, except per share data			2025		2024		2025		2024
Net premiums written	$1,207.9			1,157.6		4%		$3,737.0		3,540.4		6%
Net premiums earned	1,204.7			1,112.2		8		3,551.5		3,243.4		9
Net investment income earned	138.7			117.8		18		387.3		334.3		16
Net realized and unrealized gains (losses), pre-tax	8.1			5.4		50		12.5		5.1		147
Total revenues	1,360.1			1,244.3		9		3,972.0		3,605.3		10
Net underwriting income (loss), after-tax	13.2			4.1		218		47.3		(118.0)		(140)
Net investment income, after-tax	110.0			93.4		18		307.0		265.3		16
Net income (loss) available to common stockholders	113.0			90.0		26		304.3		104.6		191
Non-GAAP operating income (loss)	106.7			85.7		24		294.4		100.6		193
Combined ratio	98.6%			99.5		(0.9)pts		98.3%		104.6		(6.3)pts
Loss and loss expense ratio	67.9			68.8		(0.9)		67.2		73.8		(6.6)
Underwriting expense ratio	30.6			30.6		-		31.0		30.6		0.4
Dividends to policyholders ratio	0.1			0.1		-		0.1		0.2		(0.1)
Net catastrophe losses	2.1pts			13.4		(11.3)		4.2pts		9.1		(4.9)
Non-catastrophe property losses and loss expenses	14.1			13.2		0.9		14.7		15.5		(0.8)
(Favorable) unfavorable prior year reserve development on casualty lines	3.3			-		3.3		2.5		6.5		(4.0)
Current year casualty loss costs	48.4			42.2		6.2		45.8		42.7		3.1
Net income (loss) available to common stockholders per diluted common share	$1.85			1.47		26%		$4.97		1.71		191%
Non-GAAP operating income (loss) per diluted common share	1.75			1.40		25		4.81		1.64		193
Weighted average diluted common shares		61.0			61.3	-			61.2		61.3	-
Book value per common share	$54.46			48.82		12		$54.46		48.82		12
Adjusted book value per common share	55.83			50.80		10		55.83		50.80		10

Overall Insurance Operations

For the third quarter, overall NPW increased 4%, as we focused on rate and non-rate actions to improve underwriting profitability. Average renewal pure price increased 9.6%, down 0.9 points from a year ago. Our 98.6% combined ratio was 0.9 points better than a year ago, driven by lower catastrophe losses. This was partially offset by 3.3 points, or $40 million, of unfavorable prior year casualty reserve development and higher current year casualty loss costs.

Overall, insurance segment performance generated 1.6 points of ROE in the third quarter of 2025.

Standard Commercial Lines Segment

For the third quarter, Standard Commercial Lines premiums (representing 78% of total NPW) grew 4% from a year ago. The premium growth reflected average renewal pure price increases of 8.9% and retention of 82%. The third quarter combined ratio was 101.1%, up 1.9 points from a year ago. Unfavorable prior year casualty reserve development and higher current year casualty loss costs in Commercial Auto drove the change. This was partially offset by lower net catastrophe losses.

The following table shows the variances in key quarter-to-date and year-to-date measures:

Standard Commercial Lines Segment	Quarter Ended September 30,				Change		Year-to-Date September 30,			Change
$ in millions		2025		2024		2025		2024
Net premiums written	$940.8		903.9		4%		$2,962.0		2,798.7	6%
Net premiums earned	947.3		875.4		8		2,797.1		2,563.0	9
Combined ratio	101.1%		99.2		1.9pts		100.1%		105.6	(5.5)pts
Loss and loss expense ratio	69.5		67.6		1.9		68.1		74.0	(5.9)
Underwriting expense ratio	31.5		31.4		0.1		31.9		31.4	0.5
Dividends to policyholders ratio	0.1		0.2		(0.1)		0.1		0.2	(0.1)
Net catastrophe losses	1.6pts		11.5		(9.9)		3.1pts		7.4	(4.3)
Non-catastrophe property losses and loss expenses	12.5		11.0		1.5		13.6		13.1	0.5
(Favorable) unfavorable prior year reserve development on casualty lines	3.7		-		3.7		2.9		8.2	(5.3)
Current year casualty loss costs	51.7		45.1		6.6		48.5		45.3	3.2

Standard Personal Lines Segment

For the third quarter, our deliberate profit improvement actions caused Standard Personal Lines premiums (representing 9% of total NPW) to decline 6% from a year ago and new business to fall 20%. We continue to focus on growth in states where we have filed and obtained adequate rate approvals. Renewal pure price was 16.9% and retention was 79%. The third quarter 2025 combined ratio improved 12.0 points from a year ago to 110.1%, due to lower catastrophe losses. This was partially offset by higher current year casualty loss costs and unfavorable prior year casualty reserve development in Personal Auto.

The following table shows the variances in key quarter-to-date and year-to-date measures:

Standard Personal Lines Segment	Quarter Ended September 30,				Change		Year-to-Date September 30,			Change
$ in millions		2025		2024		2025		2024
Net premiums written	$104.2		111.0		(6)%		$302.2		327.1	(8)%
Net premiums earned	101.5		107.5		(6)		307.6		317.8	(3)
Combined ratio	110.1%		122.1		(12.0)pts		99.9%		115.2	(15.3)pts
Loss and loss expense ratio	88.0		98.7		(10.7)		76.7		91.8	(15.1)
Underwriting expense ratio	22.1		23.4		(1.3)		23.2		23.4	(0.2)
Net catastrophe losses	12.0pts		38.8		(26.8)		11.0pts		24.8	(13.8)
Non-catastrophe property losses and loss expenses	39.3		35.3		4.0		34.0		39.4	(5.4)
Unfavorable prior year reserve development on casualty lines	4.9		-		4.9		3.3		-	3.3
Current year casualty loss costs	31.8		24.6		7.2		28.4		27.6	0.8

Excess and Surplus Lines Segment

For the third quarter, Excess and Surplus Lines premiums (representing 13% of total NPW) increased 14% from the prior-year period, driven by average renewal pure price increases of 8.3%. The third quarter 2025 combined ratio was 76.2%, 7.0 points better than a year ago driven by lower catastrophe losses and non-catastrophe property losses. This was partially offset by higher current year casualty loss costs.

The following table shows the variances in key quarter-to-date and year-to-date measures:

Excess and Surplus Lines Segment	Quarter Ended September 30,				Change		Year-to-Date September 30,			Change
$ in millions		2025		2024		2025		2024
Net premiums written	$162.9		142.7		14%		$472.8		414.5	14%
Net premiums earned	155.9		129.3		21		446.8		362.6	23
Combined ratio	76.2%		83.2		(7.0)pts		85.9%		88.4	(2.5)pts
Loss and loss expense ratio	46.1		52.5		(6.4)		55.3		57.5	(2.2)
Underwriting expense ratio	30.1		30.7		(0.6)		30.6		30.9	(0.3)
Net catastrophe losses	(1.5)pts		5.2		(6.7)		6.5pts		7.1	(0.6)
Non-catastrophe property losses and loss expenses	7.0		10.0		(3.0)		8.4		11.8	(3.4)
(Favorable) prior year reserve development on casualty lines	-		-		-		-		-	-
Current year casualty loss costs	40.6		37.3		3.3		40.4		38.6	1.8

Investments Segment

For the third quarter, after-tax net investment income of $110 million was up 18% 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 $3.36 as of September 30, 2025, net investment income generated 13.6 points of annualized ROE.

Investments Segment	Quarter Ended September 30,				Change		Year-to-Date September 30,			Change
$ in millions, except per share data		2025		2024		2025		2024
Net investment income earned, after-tax	$110.0		93.4		18%		$307.0		265.3	16%
Net investment income per common share	1.80		1.52		18		5.02		4.33	16
Effective tax rate	20.7%		20.7		- pts		20.7%		20.6	0.1pts
Average yields:
Portfolio:
Pre-tax	5.1		5.0		0.1		5.0		4.9	0.1
After-tax	4.1		4.0		0.1		4.0		3.9	0.1
Fixed income securities:
Pre-tax	5.2%		5.0		0.2pts		5.2%		4.9	0.3pts
After-tax	4.1		4.0		0.1		4.1		3.9	0.2
Annualized ROE contribution	13.6		13.1		0.5		13.2		12.6	0.6

Balance Sheet

$ in millions, except per share data	September 30, 2025	December 31, 2024	Change
Total assets	$14,980.4	13,514.2	11%
Total investments	11,051.5	9,651.3	15
Long-term debt	902.3	507.9	78
Stockholders’ equity	3,490.0	3,120.1	12
Common stockholders' equity	3,290.0	2,920.1	13
Invested assets per dollar of common stockholders’ equity	3.36	3.31	2
Net premiums written to policyholders' surplus	1.42	1.60	(11)
Book value per common share	54.46	47.99	13
Adjusted book value per common share	55.83	52.10	7
Debt to total capitalization	20.5%	14.0%	6.5pts

Book value per common share increased by $6.47, or 13%, during the first nine months of 2025. The increase was primarily attributable to $4.97 of net income per diluted common share and a $2.77 decrease in after-tax net unrealized losses on our fixed income securities portfolio, partially offset by $1.14 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 third quarter of 2025, the Company repurchased 464,701 shares of common stock at an average price of $77.95 for $36.2 million.

Selective's Board of Directors also declared:

A quarterly cash dividend on common stock of $0.43 per common share that is payable December 1, 2025, to holders of record on November 14, 2025; and
A quarterly cash dividend of $287.50 per share on our 4.60% Non-Cumulative Preferred Stock, Series B (equivalent to $0.28750 per depositary share) payable on December 15, 2025, to holders of record as of December 1, 2025.

Guidance

For 2025, our full-year expectations are updated as follows:

A GAAP combined ratio of 97% to 98%, including net catastrophe losses of 4 points and the impact of prior year casualty reserve development reported through the third quarter. Our combined ratio estimate assumes no additional prior year casualty reserve development and no further change in loss cost estimates. We do not make assumptions about future reserve development, as we book our best estimate each quarter;
After-tax net investment income of $420 million, up from prior guidance of $415 million;
An overall effective tax rate of 21.5%; and
Weighted average shares of 61.1 million on a fully diluted basis, reflecting the shares repurchased in the first nine months of 2025 and assuming no additional repurchases under our share repurchase authorization.

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 Thursday, October 23, 2025, on www.Selective.com. The webcast will be available for rebroadcast until the close of business on November 21, 2025.

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®.

Reconciliation 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 and unrealized 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 September 30,				Year-to-Date September 30,
2025		2024		2025		2024
Net income (loss) available to common stockholders	$113.0		90.0		304.3		104.6
Net realized and unrealized investment (gains) losses included in net income, before tax	(8.1)		(5.4)		(12.5)		(5.1)
Tax on reconciling items	1.7		1.1		2.6		1.1
Non-GAAP operating income (loss)	$106.7		85.7		294.4		100.6

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 September 30,				Year-to-Date September 30,
2025		2024		2025		2024
Net income (loss) available to common stockholders per diluted common share	$1.85		1.47		4.97		1.71
Net realized and unrealized investment (gains) losses included in net income, before tax	(0.13)		(0.09)		(0.20)		(0.08)
Tax on reconciling items	0.03		0.02		0.04		0.01
Non-GAAP operating income (loss) per diluted common share	$1.75		1.40		4.81		1.64

Reconciliation of Return on Common Equity to Non-GAAP Operating Return on Common Equity

	Quarter Ended September 30,					Year-to-Date September 30,
		2025	2024		2025		2024
Return on Common Equity	14.0%			12.6		13.0		5.0
Net realized and unrealized investment (gains) losses included in net income, before tax	(1.0)			(0.8)		(0.5)		(0.2)
Tax on reconciling items	0.2			0.3		0.1		-
Non-GAAP Operating Return on Common Equity	13.2%			12.1		12.6		4.8

Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share

	Quarter Ended September 30,				Year-to-Date September 30,
2025		2024		2025		2024
Book value per common share	$54.46		48.82		54.46		48.82
Total unrealized investment (gains) losses included in accumulated other comprehensive (loss) income, before tax	1.73		2.50		1.73		2.50
Tax on reconciling items	(0.36)		(0.52)		(0.36)		(0.52)
Adjusted book value per common share	$55.83		50.80		55.83		50.80

Note: Amounts in the tables above may not foot due to rounding.

Forward-Looking Statements

Forward-looking statements notice

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:

Challenging conditions in the economy, global capital markets, the banking sector, and commercial real estate, including prolonged higher inflation, could increase loss costs and negatively impact investment portfolios;
Deterioration in the public debt, public equity, or private investment markets that could lead to investment losses and interest rate fluctuations;
Ratings downgrades on individual securities we own could negatively affect investment values, impacting statutory surplus;
The development and adequacy of our loss reserves and loss expense reserves;
Frequency and severity of catastrophic events, including natural events that climate change may impact, such as hurricanes, severe convective storms, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires, and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest;
Adverse market, governmental, regulatory, legal, political, or judicial rulings, conditions or actions, including the impact of social inflation and the impact of a continued shutdown of the U.S. government;
The significant geographic concentration of our business in the eastern portion of the United States;
The cost, terms and conditions, and availability of reinsurance;
Our ability to collect on reinsurance and the solvency of our reinsurers;
The impact of changes in U.S. trade policies and imposition of tariffs on imports that may lead to higher than anticipated inflationary trends for our loss and loss expenses;
Ongoing wars and conflicts impacting global economic, banking, commodity, and financial markets, exacerbating ongoing economic challenges, including inflation and supply chain disruption, all of which can influence insurance loss costs, premiums, and investment valuations;
Uncertainties related to insurance premium rate increases and business retention;
Changes in insurance regulations that impact our ability to write and/or cease writing insurance policies in one or more states;
The effects of data privacy or cyber security laws and regulations on our operations;
Major defect or failure in our internal controls or information technology and application systems that result in marketplace brand damage, increased senior executive focus on crisis and reputational management issues, and/or increased expenses, particularly if we experience a significant privacy breach;
Potential tax or federal financial regulatory reform provisions that could pose certain risks to our operations;
Our ability to maintain favorable financial ratings, which may include sustainability considerations, from rating agencies, including AM Best, Standard & Poor’s, Moody’s, and Fitch;
Our entry into new markets and businesses; and
Other risks and uncertainties we identify in filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and other periodic reports.

Contacts
Brad B. Wilson973-948-1283Brad.Wilson@Selective.com · Selective Insurance Group, Inc.40 Wantage AvenueBranchville, New Jersey 07890www.Selective.com
Jamie M. Beal973-948-1234Jamie.Beal@Selective.com