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Selective Insurance Q1 Earnings Miss Estimates, Revenues Increase Y/Y
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Key Takeaways
SIGI's Q1 EPS of $1.69 missed estimates, down 11% YoY on higher catastrophe losses and weak underwriting.
SIGI saw revenues rise 6% to $1.3 billion, aided by higher premiums and 18% jump in investment income.
SIGI's underwriting income fell 53% as the combined ratio worsened, while catastrophe losses climbed sharply.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
The company’s quarterly performance reflects significantly higher catastrophe losses and weaker underwriting, partially offset by strong investment income tailwinds.
Behind the Headlines
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line misses the Zacks Consensus Estimate by 0.5%.
Selective Insurance Group, Inc. Price, Consensus and EPS Surprise
On a year-over-year basis, net premiums written ("NPW") decreased 1% to $1.3 billion, due to a decline in standard personal lines and standard commercial lines. The figure was on par with our estimate.
After-tax net investment income increased 18% year over year to $113 million.
Underwriting income of $17 million declined 53% year over year, caused by higher catastrophe losses and an increased loss ratio.
The combined ratio deteriorated 220 basis points year over year to 98.3. The Zacks Consensus Estimate was 98.3, while our estimate was 98.1
Total expenses rose 7% year over year to $1.2 billion, mainly due to loss expenses incurred, corporate expenses and other expenses. The figure was on par with our estimate.
Segmental Results
Standard Commercial Lines’ NPW was down 1% year over year to $992.4 million, due to lower new business. This was below our estimate of $908.4 million.
The combined ratio was 100.2, deteriorating by 380 basis points year over year. The Zacks Consensus Estimate was 99, while our estimate was 98.1.
Standard Personal Lines’ NPW declined 6% year over year to $82.5 million, reflecting reduced new business volume, while underwriting performance improved meaningfully. The average renewal price rose 10.1%, and retention was 78%. The figure was below our estimate of $89.6 million.
The combined ratio was 92.8, improved significantly by 520 basis points. The Zacks Consensus Estimate was pegged at 101, while our estimate was 106.5.
Excess & Surplus Lines’ NPW rose 1% year over year to $150.7 million, driven by average renewal pure price increases of 4.1%. Our estimate was $174 million.
The combined ratio was 89.5, improving 300 basis points year over year. The Zacks Consensus Estimate was pegged at 87.2, while our estimate was 90.1.
Financial Update
Selective Insurance exited the first quarter of 2026 with total assets of $15.3 billion, up 1% from the December-end 2025 level.
Long-term debt remained stable at $901.9 million, while adjusted book value per share rose 2% to $58.94 as of March 31, 2026.
Operating return on common equity in the first quarter was 12%, contracted 14.4% a year ago.
Share Repurchase and Dividend Update
During the first quarter of 2026, the company repurchased shares worth $30 million.
A quarterly cash dividend of 43 cents per common share is payable on June 1, 2026, to its shareholders of record as of May 15.
2026 Guidance
SIGI estimates a GAAP combined ratio of 96.5-97.5.
Selective Insurance estimates after-tax net investment income of $465 million.
SIGI assumes no prior-year casualty reserve development.
The overall effective tax rate is expected to be around 21.5%.
Weighted average shares are estimated to be 60.5 million on a fully diluted basis.
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged four folds year over year. Travelers’ total revenues remained flat from the year-ago quarter to $11.9 billion. The top-line figure missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income rose 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure missed our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
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Selective Insurance Q1 Earnings Miss Estimates, Revenues Increase Y/Y
Key Takeaways
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
The company’s quarterly performance reflects significantly higher catastrophe losses and weaker underwriting, partially offset by strong investment income tailwinds.
Behind the Headlines
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line misses the Zacks Consensus Estimate by 0.5%.
Selective Insurance Group, Inc. Price, Consensus and EPS Surprise
Selective Insurance Group, Inc. price-consensus-eps-surprise-chart | Selective Insurance Group, Inc. Quote
On a year-over-year basis, net premiums written ("NPW") decreased 1% to $1.3 billion, due to a decline in standard personal lines and standard commercial lines. The figure was on par with our estimate.
After-tax net investment income increased 18% year over year to $113 million.
Underwriting income of $17 million declined 53% year over year, caused by higher catastrophe losses and an increased loss ratio.
The combined ratio deteriorated 220 basis points year over year to 98.3. The Zacks Consensus Estimate was 98.3, while our estimate was 98.1
Total expenses rose 7% year over year to $1.2 billion, mainly due to loss expenses incurred, corporate expenses and other expenses. The figure was on par with our estimate.
Segmental Results
Standard Commercial Lines’ NPW was down 1% year over year to $992.4 million, due to lower new business. This was below our estimate of $908.4 million.
The combined ratio was 100.2, deteriorating by 380 basis points year over year. The Zacks Consensus Estimate was 99, while our estimate was 98.1.
Standard Personal Lines’ NPW declined 6% year over year to $82.5 million, reflecting reduced new business volume, while underwriting performance improved meaningfully. The average renewal price rose 10.1%, and retention was 78%. The figure was below our estimate of $89.6 million.
The combined ratio was 92.8, improved significantly by 520 basis points. The Zacks Consensus Estimate was pegged at 101, while our estimate was 106.5.
Excess & Surplus Lines’ NPW rose 1% year over year to $150.7 million, driven by average renewal pure price increases of 4.1%. Our estimate was $174 million.
The combined ratio was 89.5, improving 300 basis points year over year. The Zacks Consensus Estimate was pegged at 87.2, while our estimate was 90.1.
Financial Update
Selective Insurance exited the first quarter of 2026 with total assets of $15.3 billion, up 1% from the December-end 2025 level.
Long-term debt remained stable at $901.9 million, while adjusted book value per share rose 2% to $58.94 as of March 31, 2026.
Operating return on common equity in the first quarter was 12%, contracted 14.4% a year ago.
Share Repurchase and Dividend Update
During the first quarter of 2026, the company repurchased shares worth $30 million.
A quarterly cash dividend of 43 cents per common share is payable on June 1, 2026, to its shareholders of record as of May 15.
2026 Guidance
SIGI estimates a GAAP combined ratio of 96.5-97.5.
Selective Insurance estimates after-tax net investment income of $465 million.
SIGI assumes no prior-year casualty reserve development.
The overall effective tax rate is expected to be around 21.5%.
Weighted average shares are estimated to be 60.5 million on a fully diluted basis.
Zacks Rank
SIGI currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged four folds year over year. Travelers’ total revenues remained flat from the year-ago quarter to $11.9 billion. The top-line figure missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income rose 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure missed our estimate as well as the Zacks Consensus Estimate of $3.18 billion.