Selective Reports Strong Results for the Third Quarter of 2019 - Net Income per Diluted Share of $0.93;
Non-GAAP Operating Income1 per Diluted Share of $0.97;
Dividend Increase of 15%, to $0.23 per share
In the third quarter of 2019:
Net premiums written ("NPW") increased 4%
GAAP combined ratio was 95.2%
After-tax net investment income was up 6%, to $45 million
Annualized return on equity ("ROE") was 10.7% and non-GAAP operating ROE1 was 11.2%
Branchville, NJ - October 30, 2019 - Selective Insurance Group, Inc. (NASDAQ: SIGI) today reported its financial results for the third quarter ended September 30, 2019. The company reported net income per diluted share of $0.93, in line with the same quarter a year ago. Non-GAAP operating income1 per diluted share was $0.97, compared to $0.99 a year ago. The third quarter results were impacted by: (i) higher than expected levels of non-catastrophe property losses of $5 million, after-tax, or $0.09 per diluted share; and (ii) employee-related severance costs of $3 million after-tax, which were split between underwriting and corporate expenses, that accounted for $0.05 per diluted share. On a year-to-date basis, non-catastrophe property losses were in-line with expected levels.
"In the third quarter we generated a 95.2% GAAP combined ratio, or 91.5% excluding catastrophe losses," said Gregory E. Murphy, Chairman and Chief Executive Officer. "Our annualized non-GAAP operating ROE1 for the quarter was 11.2%, and on a year-to-date basis was 12.3%, which is in-line with our 2019 financial target of 12%, a strong testament to the successful execution of our strategic initiatives."
Mr. Murphy continued, "Net premiums written increased 4%, driven by solid 6% growth in our Standard Commercial Lines segment, partially offset by lower Standard Personal Lines and Excess and Surplus Lines premiums. Overall renewal pure price increases were up 3.7%, in-line with expected claims loss trend, while maintaining stable retention. We remain focused on investing in our core competitive advantages, which include our relationships with our 'ivy-league' distribution partners, sophisticated underwriting tools, and the superior experience we provide to our customers and agents through our best-in-class employees. Despite the ongoing 'low for longer' interest rate environment, after-tax net investment income increased 6% in the quarter, to $45 million, due to a higher average invested asset base that was driven by strong cash flows from operations that were 22% of NPW in the quarter."
As a result of ongoing excellent financial performance, Selective's Board of Directors declared a 15% increase in the quarterly cash dividend on common stock, to $0.23 per share, that is payable December 2, 2019, to stockholders of record as of November 15, 2019.
The following information was filed by Selective Insurance Group Inc (SIGI) on Wednesday, October 30, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.