Yesterday, we posted our earnings press release, financial supplement, and investor presentation on the Investors section of selective.com. These milestones reflect our long-term commitment to disciplined growth and operational excellence. We delivered a 13.7% operating ROE led by excellent investment income, which grew 18% year-over-year. Each insurance segment produced an underwriting profit, and our 98% combined ratio improved 2.2 points from a year ago.

Driving margin improvement in Standard Commercial Lines, our largest segment, remains a key area of focus. This is exactly the portfolio effect we intended, as we believe these actions improve the earnings power of the portfolio over time. We are constraining growth where margins do not meet our targets focusing new business and retention strategies on the business that continues to enhance the earning power of the book. With our strong margins, 50-state footprint, and expansion of our distribution channel to include our retail agents, we believe E&S continues to present a long-term opportunity to support our profitable growth and diversification objectives.

Year to date, the combined ratio of 94.1 was 80 basis points better than the first six months of 2025 and compared favorably to the 100.6 combined ratio for the full year of 2025. We are focused on growth in our target market where we believe our rates are adequate. Diversifying revenue and income within and across our three insurance segments and further leveraging data, analytics and technology, including artificial intelligence, to drive operational efficiency and improve underwriting and claim outcomes. For the quarter, we reported fully diluted EPS of $2.11 and non-GAAP operating EPS of $1.95, resulting in a 14.8% ROE and a 13.7% operating ROE.

What went well
  • 13.7% operating ROE, an eighth consecutive quarter of double-digit operating returns
  • After-tax net investment income of $119 million, up 18% year-over-year, generating 13.9 points of ROE
  • GAAP combined ratio of 98.0% improved 2.2 points year-over-year with every insurance segment underwriting-profitable
  • No prior-year casualty reserve development for a second straight quarter, with severities generally tracking expectations
  • E&S combined ratio of 91.8 and Personal Lines first-half combined ratio of 94.1, both ahead of the 95% target
  • Raised full-year after-tax net-investment-income guidance to $480 million from $465 million
  • Returned nearly 50% of after-tax net income to shareholders via dividends and $32 million of buybacks; improved reinsurance terms with lower co-participation
What went wrong
  • Standard Commercial Lines combined ratio of 99.7 remained near breakeven and below the segment's margin goals
  • Standard Commercial Lines net premiums written declined 5%, with new-business premium down 22% year-over-year
  • Personal Lines net premiums written fell 8% and new business dropped 36% amid a competitive auto market and New Jersey restrictions
  • Higher-than-expected commercial-auto liability frequency in the first half prompted current-year loss-ratio adjustments
  • E&S premiums declined 2% as new capacity and admitted-carrier appetite increased competition
  • Full-year combined ratio now expected near the top of the 96.5%-97.5% guidance range

More on Selective Insurance Group Inc

Reported 2026-07-24 · figures from the Selective Insurance Group Inc Q2 2026 earnings call.

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