NASDAQ$SIGI

Selective Insurance Group Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported strong Q4 2021 results with net income of $1.59 per diluted common share and non-GAAP operating income of $1.56 per diluted common share.

Selective Insurance Group reported strong fourth quarter 2021 results, including a net income of $1.59 per diluted common share and non-GAAP operating income of $1.56 per diluted common share. The combined ratio was a profitable 93.1%, and net premiums written increased 9% from a year ago.

  • Net premiums written increased 9% compared to the fourth quarter of 2020.
  • GAAP combined ratio of 93.1%.
  • Overall renewal pure price increases averaged 4.7%.
  • After-tax net investment income of $65 million, up 16% compared to the fourth quarter of 2020.

Headline financials

Total Revenue

$745M

Previous: $682M+9.4%
EPS (adj)

$1.56

Previous: $1.84-15.2%
Combined Ratio

93.1%

Previous: 88.1%+5.7%
Std Commercial Lines Combined Ratio

93.1%

Previous: 86.8%+7.3%
Std Personal Lines Combined Ratio

97.6%

Previous: 93.6%+4.3%
E&S Lines Combined Ratio

88.8%

Previous: 93.4%-4.9%
Capital Expenditures

$7.04M

Previous: $4.21M+67.4%
Free Cash Flow

$221M

Previous: $169M+30.9%
Net Income

$96.7M

Previous: $127M-23.9%
Operating Income

$94.9M

Previous: $111M-14.7%
Gross Profit

$870M

Previous: $798M+8.9%
Cash & Equivalents

$2.78B

Previous: $9.69B-71.3%
Total Assets

$10.5B

Previous: $9.69B+8.0%
Stock-Based Comp

$2.46M

Previous: $2.29M+7.4%

Revenue & EPS history

Selective Insurance · Revenue · Quarterly

$745M

Q4 2021+9.4%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Selective Insurance · $785M total across 3 segments · Q4 2021

  • Standard Commercial Lines
    $635M+12.0%
  • Excess and Surplus Lines
    $76M+22.6%
  • Standard Personal Lines
    $73.1M-3.1%

Forward guidance

Selective's full-year guidance for 2022 includes a GAAP combined ratio, excluding net catastrophe losses, of 91.0%, net catastrophe losses of 4.0 points on the combined ratio, after-tax net investment income of $200 million, an overall effective tax rate of approximately 20.5%, and weighted average shares of 61 million on a fully diluted basis.

Tailwinds

  • GAAP combined ratio, excluding net catastrophe losses, of 91.0%.
  • Combined ratio estimate assumes no prior-year casualty reserve development.
  • Net catastrophe losses of 4.0 points on the combined ratio.
  • After-tax net investment income of $200 million that includes $20 million in after-tax net investment income from our alternative investments.
  • Overall effective tax rate of approximately 20.5% that assumes an effective tax rate of 19.5% for net investment income and 21.0% for all other items.

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 2021

Historical avgQ4 2021

-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

Earnings price reactions
QuarterReport dateReaction (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%

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