Selective Insurance Raises Dividend 12% To $0.48 And Authorizes A $200 Million Buyback
The insurer's combined ratio improved to 96.8% in the third quarter even as net premiums written fell 7%.
Selective Insurance Group, which sells property and casualty coverage through independent agents, raised its quarterly dividend 12% to $0.48 per share and authorized a new $200 million share repurchase, it said Thursday with third-quarter results. Underwriting improved while premium volume shrank.
Better margins, smaller book
Net income was $2.11 per diluted share, up from $1.85 a year earlier. Adjusted operating income, which strips out investment gains and losses, was $2.37 per share versus $1.75, according to the company's release.
The combined ratio, where anything under 100% means an underwriting profit, was 96.8% against 98.6% a year ago. Catastrophe losses ran 5.4 points, and the company booked no prior-year casualty reserve development, versus 3.3 points of unfavorable development a year earlier.
Net premiums written fell 7%. Standard Commercial Lines, which accounts for 77% of the total, dropped 8% on targeted retention actions and lower new business, while renewal pure price increases averaged 5.6%. After-tax net investment income rose 16% to $127 million.
Shrinking on purpose
CEO John Marchioni said the pricing and mix actions have hurt near-term premium growth, but that a better portfolio is the foundation for sustainable, profitable growth over time. Selective has about 1,680 distribution partners for its standard lines. Standard Commercial Lines was 71% of 2025 revenue, according to the company's annual report.
Selective also named Jacob Rothfuss, currently CEO of Velocity Risk Underwriters, as president of its standard lines businesses, Business Wire reported Wednesday. He is expected to start no later than April 2027.
Capital return and the outlook
The company repurchased $55 million of stock in the quarter, 587,229 shares at an average $93.66, and returned 63% of after-tax net income including dividends. The new authorization adds to $53 million left on the existing one at September 30.
For 2026, Selective raised its after-tax net investment income forecast to $490 million from $480 million. It guided to a combined ratio of 96.5% to 97.5%, including 5.5 points of catastrophe losses.
The $0.48 dividend is payable December 1 to holders of record November 16, and management holds its analyst call at 8:00 a.m. ET Friday.
Sources
- 8-K Filing — SELECTIVE INSURANCE GROUP INC (SIGI) — SEC EDGAR
- Exhibit pressreleaseexh991q32026.htm — SELECTIVE INSURANCE GROUP INC 8-K exhibit — SEC EDGAR
- Exhibit pressreleasesupplementexh9.htm — SELECTIVE INSURANCE GROUP INC 8-K exhibit — SEC EDGAR
- Exhibit thirdquarter2026investor.htm — SELECTIVE INSURANCE GROUP INC 8-K exhibit — SEC EDGAR
- Stay Ahead of the Game With Selective Insurance (SIGI) Q3 Earnings: Wall Street's Insights on Key Metrics — Yahoo Finance
- Selective Insurance Group Names Jacob E. Rothfuss Executive Vice President and President, Standard Lines — businesswire.com
