For the fourth quarter of 2024, Selective Insurance has reported a 10% rise in net premiums written (NPW) to $1.089 billion from Q4 2023’s $991.5 million, while full year 2024 NPW grew 12% year-on-year to $4.6 billion from $4.1 billion in 2023.
Starting with the quarter, the insurer has reported a combined ratio of 98.5%, which is an increase from 93.7% in Q4 2023, as underwriting income fell from $50.2 million to $13.3 million.
The firm explained that there was a net unfavourable prior year casualty reserve development of $100 million in general liability which increased the combined ratio by 8.8 points, partially offset by lower catastrophe and non-catastrophe property losses and a lower expense ratio.
Overall, the firm’s average renewal pure price increased 10.7%, up 3.3 points from a year ago.
Net income for the fourth quarter of 2024 amounted to $93.2 million, down from $122.5 million in Q4 2023, as the lower underwriting result more than offset higher net investment income of $97.3 million for the period.
For the full year 2024, Selective generated net income of $197.8 million, compared with $356 million in 2023. Again, net investment income increased for the year, to $362.6 million from $309.5 million, but a full year underwriting loss of $104.7 million, a $200 million decrease year-on-year, more than offset this.
The combined ratio deteriorated by 6.5 percentage points to 103% in 2024, driven in part by a higher loss and loss expense ratio of 72.3%, compared with 64.9% in 2023.
Total revenues for the year increased 15% to $4.9 billion, and by 13% for the quarter to $1.3 billion.
John J. Marchioni, Chairman, President and Chief Executive Officer, commented, “Despite strong investment results, overall financial performance in 2024 did not meet our expectations. Within insurance operations, we delivered solid underlying profitability but took meaningful actions to strengthen casualty reserves in response to social inflation.
“We also increased Standard Commercial Lines renewal pure pricing, achieving 8.8% in the fourth quarter and 8.3% for the year. We continue to focus on returning our performance to the combination of growth and profitability investors expect of us and we expect of ourselves.
“With these pricing actions and our ability to manage renewal pure price and retention at a granular level, we are well positioned to capitalize on our competitive strengths. These include our unique field model, the strength of our distribution partner relationships, and our customer experience focus.
“In 2024, we advanced important strategic initiatives that position Selective for long-term, profitable growth. We exceeded $500 million of NPW in Excess & Surplus Lines, added five states to our Standard Commercial Lines operating footprint, and took significant actions to reposition and drive our Personal Lines business toward improved profitability,” concluded Marchioni.
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