Yesterday, we posted our earnings press release, financial supplement, and investor presentation on selective.com's investor section. These non-GAAP measures include operating income, operating return on common equity, and adjusted book value per common share. We are proud of our long-term track record and are taking clear steps to drive future margin improvement. In 2025, we grew book value per share by 18% and returned $182 million to shareholders through our common dividends and share repurchases at attractive valuations.

With our strong capital position, we can deploy capital in several ways that are accretive to long-term value, including continued investments to grow and diversify our business, along with opportunistic share repurchases. Net premiums written growth was 5% for the year as we executed deliberate actions to improve underwriting profitability. However, we are also executing strategies to support future growth opportunities, including expanding our geographic footprint and broadening E&S distribution capabilities with retail access. We believe we have the capabilities and strategy to further diversify our premium and outpace industry growth in coming years.

This assumption is reflected in our book results and incorporated into our 2026 guidance. This is not new, but we expect the amount of differentiation to increase. Our guidance reflects the benefits we expect in 2026 from the various actions we have taken, and our multiyear plan points to continued margin improvement in 2027. For the quarter, fully diluted EPS was $2.52, up 66% from a year ago.

What went well
  • Fourth-quarter GAAP combined ratio of 93.8, a 4.7-point improvement year-over-year with no net prior-year reserve development
  • Fully diluted EPS of $2.52 up 66% and non-GAAP operating EPS of $2.57 up 59%, for an 18.7% operating ROE
  • Full-year 2025 book value per share up 18% and $182 million returned to shareholders via dividends and repurchases
  • Fourth-quarter after-tax net investment income of $114 million, up 17% year-over-year
  • Excess and Surplus Lines delivered a very strong 87.8 full-year combined ratio
  • Renewed property-catastrophe reinsurance with meaningful risk-adjusted price decreases and raised coverage exhaustion to $1.5 billion
  • AM Best affirmed the A+ financial-strength rating; year-end GAAP equity and statutory surplus each $3.6 billion
What went wrong
  • Full-year combined ratio of 97.2 landed just outside the original 96%-97% guidance
  • Approximately $190 million of commercial-auto reserve strengthening in 2025, mostly 2024 and 2025 accident years
  • Raised expected commercial-auto liability severity trend to roughly 10% and lifted 2025 casualty loss costs by nearly six points
  • Fourth-quarter Personal Lines combined ratio of 103% deteriorated from 91.7% a year earlier on higher catastrophes and New Jersey personal auto
  • Personal Lines net premiums written fell 8% in the quarter
  • 2026 guidance embeds a higher overall loss trend of about 7.5% (9% casualty) and a roughly 0.5-point expense-ratio increase

More on Selective Insurance Group Inc

Reported 2026-01-30 · figures from the Selective Insurance Group Inc Q4 2025 earnings call.

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