Selective Insurance Q2: Operating EPS Jumps 49%, Combined Ratio Strengthens to 98.0%

summarizeSummary

Selective Insurance posted Q2 2026 non-GAAP operating EPS of $1.95, a 49% year-over-year increase, alongside a combined ratio of 98.0%. The company raised its full-year investment income guidance and continued buying back shares.

check_boxKey Events · Earnings and Guidance · SIGI

• Q2 Operating EPS Up 49%

  Driven by improved underwriting and higher investment income, non-GAAP operating income per diluted share rose to $1.95 from $1.31 a year ago.

• Combined Ratio Improves to 98.0%

  The GAAP combined ratio improved 2.2 points year-over-year to 98.0%, reflecting lower catastrophe losses (5.6 points vs. 6.7) and no prior-year casualty reserve development.

• Net Premiums Written Decline 5%

  Net premiums written fell 5% to $1.22 billion, as the company maintained underwriting discipline and reduced new business in a competitive market.

• Full-Year Guidance Updated

  Management raised after-tax net investment income guidance to $480 million (from $465 million) and reaffirmed the combined ratio target of 96.5%-97.5%, assuming 6 points of catastrophe losses and no prior-year reserve development.

auto_awesomeAnalysis · SIGI · Finance

A strong second quarter for Selective Insurance saw non-GAAP operating income per share climb 49% year-over-year to $1.95, fueled by better underwriting results and a boost in investment income. The GAAP combined ratio tightened to 98.0% from 100.2% a year ago, helped by lower catastrophe losses and the absence of prior-year casualty reserve development. While net premiums written dipped 5%, the decline reflects deliberate underwriting discipline in a competitive market. Looking ahead, management lifted its full-year after-tax net investment income forecast to $480 million and kept its combined ratio target at 96.5%-97.5%. The quarter also included $32 million in share repurchases, returning capital to shareholders as book value per share grew 3% sequentially.