Selective Insurance Group, Inc. reported mixed results for the third quarter ended Sept. 30, 2025. Standard commercial lines premiums, which represented 78% of total net premiums written, rose 4% from a year earlier. Renewal pure price for the segment averaged 8.9% and retention was 82%.
The standard commercial lines combined ratio was 101.1%, 1.9 points higher than a year ago, reflecting unfavorable prior-year casualty reserve development and higher current-year casualty loss costs in commercial auto.
Standard personal lines, representing 9% of NPW, saw premiums decline 6% and new business fall 20% year over year. Renewal pure price averaged 16.9% and retention was 79%. The segment’s combined ratio improved 12.0 points from a year ago to 110.1%, with lower catastrophe losses partially offset by higher current-year casualty loss costs and unfavorable prior-year casualty reserve development in personal auto.
Excess and Surplus lines, representing 13% of NPW, increased 14% from the prior-year quarter, with average renewal pure price increases of 8.3%. The segment’s combined ratio was 76.2%, seven points better than a year earlier, with lower catastrophe and non-catastrophe property losses partially offset by higher current-year casualty loss costs.
Consolidated net premiums written rose 4% from the third quarter of 2024. The GAAP combined ratio was 98.6%, compared with 99.5% a year earlier. Catastrophe losses were 2.1 points and net unfavorable prior-year casualty reserve development was 3.3 points, driven by $40 million of reserve adjustments mainly in standard commercial lines. Net income was $1.85 per diluted common share; non-GAAP operating income was $1.75 per diluted common share. Return on equity was 14%; non-GAAP operating ROE was 13.2%.
After-tax net investment income was $110 million, up 18% from a year earlier, and generated 13.6 points of annualized ROE for the quarter. Book value per common share was $54.46, up 5% from the prior quarter; adjusted book value per common share was $55.83.
The board authorized a new $200 million share repurchase program effective Oct. 27, 2025. The prior program had $19.9 million remaining as of Sept. 30, 2025, and remained effective through Oct. 24. The company repurchased 464,701 shares at an average price of $77.95 for $36.2 million in the quarter. The board declared a quarterly common dividend of $0.43 per share payable Dec. 1, 2025, and a quarterly preferred dividend of $287.50 per share on its 4.60% Non-Cumulative Preferred Stock, Series B (equivalent to $0.28750 per depositary share) payable Dec. 15, 2025.
Selective updated full-year expectations for 2025 to a GAAP combined ratio of 97%–98% (including net catastrophe losses of 4 points and the impact of prior-year reserve development reported through Q3), after-tax net investment income of $420 million, and an overall effective tax rate of 21.5%. Weighted average shares on a fully diluted basis are expected to be 61.1 million.
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