SIGI · Selective Insurance Group Q2 FY2026 earnings call record财报电话会记录

“Each insurance segment produced an underwriting profit, and our 98% combined ratio improved 2.2 points from a year ago.”

“Driving margin improvement in Standard Commercial Lines, our largest segment, remains a key area of focus.”

“At the same time, retention in our worst-performing cohorts decreased from 81%-55%, and renewal rate increased from 11.5%-18%.”

“We are constraining growth where margins do not meet our targets focusing new business and retention strategies on the business that continues to enhance the earning power of the book.”

“While these actions take time to earn through the portfolio, we believe they position us for improved underlying margins and more attractive risk-adjusted returns.”

“Net premiums written declined 8% with target business down 2%.”

“In commercial auto, the year-to-date underlying loss ratio of 69.7% was up modestly compared to full year 2025, including the current accident year frequency adjusted and previously contemplated severity pressures, partially offset by earned renewal pure price.”

“We also renewed our property per risk treaty, which now provides $115 million of coverage in excess of a $5 million retention on a per-risk basis.”

“We prioritize supporting the profitable growth of our business over the long term and aim to return 20%-25% of earnings to shareholders through dividends.”

“We will also opportunistically repurchase shares.”

“During the quarter, we returned nearly 50% of our after-tax net income to shareholders through regular dividend and $32 million of share repurchases at attractive valuations.”

“Our expectation is, as the margins in those more profitable lines and segments that I just referenced start to temper, and we know they will because pricing in those areas has tightened meaningfully, I think it'll put a little bit more pressure on these longer-tail casualty lines, which are currently running at an underwriting loss for the industry and for many companies in the industry, that will sort of force the issue with regard to pricing.”