Selective Insurance reported Q2 net income of $127.1 million, up 52% YoY, as combined ratio improved to 98%. Premiums fell 5% on underwriting discipline.
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Selective Insurance Group posted net income of $127.1 million for the second quarter of 2026, up 52% from a year earlier. The combined ratio improved to 98% from 100.2% in Q2 2025, driven by lower catastrophe and non-catastrophe property losses.
Catastrophe losses added 5.6 points to the combined ratio. There was no net prior-year casualty reserve development. Net premiums written fell 5% from a year ago, as Selective kept tightening underwriting through rate and non-rate actions. Standard Commercial Lines premiums, which make up 79% of total NPW, dropped 6% on lower new business.
Renewal pure price increases averaged 6.5% across the book. Retention held at 81% in Standard Commercial Lines, where the combined ratio improved to 99.3%. The line benefited from zero net prior-year casualty development and lower non-catastrophe property losses, even as current-year casualty costs rose.
Standard Personal Lines premiums fell 8% to 8% of total NPW. New business in that segment dropped 36% from a year ago. Renewal pure price was 8.9%, retention 79%. The combined ratio in personal lines rose 3.9 points to 95.5%, reflecting higher non-catastrophe losses and a higher expense ratio, partly offset by lower catastrophe losses.
Excess and Surplus Lines premiums, 13% of total NPW, declined 2%. Renewal pure price increases averaged 3.4%. The combined ratio there was 91.8%, up 2.0 points on higher current-year casualty costs and non-catastrophe property losses.
Net investment income rose 18% to $119 million after tax, contributing 13.9 points of annualized ROE in the quarter.
“Our results reflect disciplined execution in an increasingly competitive environment,” said John J. Marchioni, Chairman, President and Chief Executive Officer. “Operating ROE in the quarter was 13.7%, which marked our eighth consecutive quarter of double-digit operating returns. With our strong capital position and commitment to delivering long-term value, we returned 45% of after-tax net income through our regular dividend and $32 million of share repurchases. Even with this capital return, book value per share grew 3% in the quarter.”
Marchioni added: “Over the last two years, we have taken deliberate actions to improve the quality and long-term profitability of our underwriting portfolio. While those decisions contributed to lower premium in the quarter, they reflect the underwriting discipline that has long differentiated Selective and our commitment to pursuing growth where risk-adjusted returns are most attractive.”
Book value per share rose 3% in the quarter, even after the share repurchases and dividends.
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