NASDAQ$SIGI
Selective Insurance Group Inc · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Reported net income of $2.10 per diluted common share and non-GAAP operating income of $1.84 per diluted common share.
Selective Insurance Group reported excellent financial results for Q4 2020, including an 18.0% non-GAAP operating ROE and an 88.1% combined ratio. Strong commercial lines NPW growth of 10% was driven by renewal pure price increases, solid retention, and new business growth.
- Net premiums written growth of 8% compared to the fourth quarter of 2019.
- GAAP combined ratio of 88.1%.
- Annualized return on common equity of 20.6% and non-GAAP operating ROE of 18.0%.
- After-tax net investment income of $55 million, up 18% compared to the fourth quarter of 2019.
Headline financials
Revenue & EPS history
Selective Insurance · Revenue · Quarterly
$682M
Revenue by segment
Selective Insurance · $705M total across 3 segments · Q4 2020
- Standard Commercial Lines$568M+7.0%80.5%
- Standard Personal Lines$75.4M-1.6%10.7%
- Excess and Surplus Lines$62M+1.3%8.8%
Forward guidance
For 2021, Selective Insurance Group expects a GAAP combined ratio, excluding catastrophe losses, of 91.0% and after-tax net investment income of $182.0 million.
Tailwinds
- A GAAP combined ratio, excluding catastrophe losses, of 91.0%.
- Our combined ratio estimate assumes no prior-year casualty reserve development.
- Catastrophe losses of 4.0 points on the combined ratio.
- After-tax net investment income of $182.0 million that includes $16.0 million in after-tax net investment income from our alternative investments.
- An overall effective tax rate of approximately 20.5%, which includes an effective tax rate of 19.0% for net investment income and 21.0% for all other items.
Headwinds
- Governmental directives to contain or delay the spread of the COVID-19 pandemic have disrupted ordinary business commerce and impacted financial markets.
- Difficult conditions in global capital markets and the economy.
- Deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and interest rate fluctuations.
- Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus.
- The adequacy of our loss reserves and loss expense reserves.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q4 2020
-0.4%
Avg return
Earnings day
-0.3%
Avg return
5 days after
+1.4%
Avg return
30 days after
51%
35 / 69 earnings
Positive
+9.7%
Q1 2017
Best reaction
-18.9%
Q2 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +8.8% | +10.3% | +16.8% | |
| Q4 2025 | +0.3% | +6.0% | -0.0% | |
| Q3 2025 | -5.7% | -6.9% | -4.0% | |
| Q2 2025 | -1.9% | -0.4% | +1.0% | |
| Q1 2025 | -1.8% | -2.8% | -5.1% | |
| Q4 2024 | -12.6% | -11.2% | -8.5% | |
| Q3 2024 | -5.4% | -7.4% | -2.7% | |
| Q2 2024 | -18.9% | -14.7% | -12.1% | |
| Q1 2024 | -5.8% | -3.4% | -4.0% | |
| Q4 2023 | -8.9% | -6.7% | -2.2% | |
| Q3 2023 | +1.2% | +0.3% | -2.7% | |
| Q2 2023 | -1.5% | +1.0% | -3.6% | |
| Q1 2023 | +5.1% | +6.2% | +1.4% | |
| Q4 2022 | +7.7% | +2.9% | +11.3% | |
| Q3 2022 | -2.1% | -3.2% | -0.5% | |
| Q2 2022 | +0.2% | +2.5% | +4.8% | |
| Q1 2022 | -4.6% | -4.9% | -6.6% | |
| Q4 2021 | -3.8% | +0.7% | +4.9% | |
| Q3 2021 | -4.2% | -3.1% | -2.9% | |
| Q2 2021 | +2.0% | +2.7% | +7.7% | |
| Q1 2021 | +0.5% | +0.7% | -1.8% | |
| Q4 2020 | -2.9% | -3.2% | +1.4% | |
| Q3 2020 | -0.2% | -0.8% | +18.0% | |
| Q2 2020 | -2.7% | -3.3% | +5.3% | |
| Q1 2020 | -5.8% | +0.3% | +13.5% | |
| Q4 2019 | +0.7% | +3.1% | -15.2% | |
| Q3 2019 | -3.7% | -4.3% | -7.7% | |
| Q2 2019 | +4.4% | +2.8% | +6.3% | |
| Q1 2019 | -2.3% | +0.8% | +0.5% | |
| Q4 2018 | +3.9% | +5.7% | +9.8% | |
| Q3 2018 | +3.6% | +11.6% | +6.5% | |
| Q2 2018 | +5.0% | +4.3% | +7.4% | |
| Q1 2018 | -5.4% | -5.7% | -2.6% | |
| Q4 2017 | +1.8% | -1.6% | -1.7% | |
| Q3 2017 | +6.4% | +5.7% | +7.8% | |
| Q2 2017 | -3.1% | -1.3% | -0.7% | |
| Q1 2017 | +9.7% | +7.1% | +3.6% | |
| Q4 2016 | +4.9% | +5.0% | +10.3% | |
| Q3 2016 | -8.7% | -7.2% | +6.2% | |
| Q2 2016 | +1.5% | -1.1% | -1.7% | |
| Q1 2016 | +0.8% | — | — | |
| Q4 2015 | +6.5% | — | — | |
| Q3 2015 | +1.5% | — | — | |
| Q2 2015 | +3.2% | — | — | |
| Q1 2015 | -3.8% | — | — | |
| Q4 2014 | -3.2% | — | — | |
| Q3 2014 | +2.5% | — | — | |
| Q2 2014 | -3.6% | — | — | |
| Q1 2014 | +0.3% | — | — | |
| Q4 2013 | -2.5% | — | — | |
| Q3 2013 | -2.6% | — | — | |
| Q2 2013 | +3.9% | — | — | |
| Q1 2013 | -1.6% | — | — | |
| Q4 2012 | +7.5% | — | — | |
| Q3 2012 | -0.9% | — | — | |
| Q2 2012 | -2.8% | — | — | |
| Q4 2011 | -2.0% | — | — | |
| Q1 2012 | +1.7% | — | — | |
| Q3 2011 | +3.7% | — | — | |
| Q2 2011 | -0.1% | — | — | |
| Q1 2010 | +4.3% | — | — | |
| Q1 2011 | +2.1% | — | — | |
| Q4 2010 | +3.1% | — | — | |
| Q4 2008 | +3.1% | — | — | |
| Q3 2009 | -2.5% | — | — | |
| Q3 2010 | -2.5% | — | — | |
| Q4 2009 | +0.4% | — | — | |
| Q2 2009 | +0.4% | — | — | |
| Q2 2010 | +0.4% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro