On this page of StockholderLetter.com we present the latest annual shareholder letter from SELECTIVE INSURANCE GROUP INC — ticker symbol SIGI. Reading current and past SIGI letters to shareholders can bring important insights into the investment thesis.

 •  3/26/2025 Letter Continued (Full PDF)
 •  3/29/2023 SIGI Stockholder Letter
 •  3/27/2024 SIGI Stockholder Letter
 •  More "Insurance Brokers" Category Stockholder Letters
 •  SIGI Benford's Law Stock Score = 99

SIGI Shareholder/Stockholder Letter Transcript:

2024
ANNUAL
REPORT

THE
SELECTIVE
DIFFERENCE
Our Competitive
Advantages
The unique combination of
our competitive advantages
differentiates us in the
marketplace, delivering
value for our stakeholders:
Selective Insurance Group, Inc. (NASDAQ: SIGI) is
a New Jersey holding company for ten property
and casualty insurance companies rated    A+   
(Superior) by AM Best. Through independent
agents, the insurance companies offer standard
insurance for commercial and personal risks, and
specialty insurance for commercial risks. We also
offer flood insurance through the National Flood
Insurance Program   s Write Your Own Program.
We are dedicated to serving our customers    unique
needs through customized risk management
solutions and value-added services.

Our unique operating model
places empowered decisionmakers alongside our customers
and distribution partners

Our commitment to delivering a
superior omni-channel customer
experience, enhanced by people
and technology

Our ability to develop and
integrate sophisticated tools for
our front-line employees that
inform risk selection, pricing,
and claims decisions

Our highly engaged and
aligned team of extremely
talented employees

Our franchise value distribution
model defined by close
and meaningful business
relationships with a group of
high-quality distribution partners
Expanding our Differentiated
Operating Model
In 2024, we added five states to
our Standard Commercial Lines
operating footprint. This expansion
brings us closer to our stated
goal of operating our Standard
Commercial Lines business with
a near-national footprint.
Standard Commercial
Standard Personal + Commercial
Flood and Excess & Surplus
35 states and the District of
Columbia, including Maine,
Nevada, Oregon, Washington,
and West Virginia, which
opened in 2024
15 states
50 states

2024 GAAP Financial Highlights
2024
2023
% or Point
Change
Better/(Worse)
$4,630.0
$4,134.5
12%
103.0%
96.5%
(6.5)
($104.7)
$104.9
(200%)
(3.7%)
4.2%
(7.9)
$362.6
$309.5
17%
($2.3)
($2.8)
(17%)
$9,651.3
$8,693.7
11%
Invested assets per dollar of common stockholders' equity
$3.31
$3.16
5%
Annual after-tax yield on investment portfolio
4.0%
3.7%
0.3
12.8%
12.4%
0.4
$4,861.7
$4,232.1
15%
$197.8
$356.0
(44%)
7.0%
14.3%
(7.3%)
$200.1
$358.8
(44%)
7.1%
14.4%
(7.3)
23.8%
18.4%
5.4
$13,514.2
$11,802.5
15%
Stockholders' equity
$3,120.1
$2,954.4
6%
Common stockholders' equity
$2,920.1
$2,754.4
6%
Diluted net income available to common stockholders
$3.23
$5.84
(45%)
Diluted non-GAAP operating income*
$3.27
$5.89
(44%)
Dividends to common stockholders
$1.43
$1.25
14%
$47.99
$45.42
6%
($ in millions, except per share data)
Insurance Operations
Net premiums written
Combined ratio
Underwriting income (loss) after-tax
Return on common equity from insurance operations, after-tax
Investments
Net investment income after-tax
Net realized and unrealized investment (losses) after tax
Total invested assets
Return on common equity from net investment income, after-tax
Summary Data
Total revenues
Net income available to common stockholders
Return on common equity
Non-GAAP operating income*
Non-GAAP operating return on common equity (   operating ROE   )*
Operating cash flow as % of net premiums written
Total assets
Per Common Share Data
Book value
AV E R AG E A N N UA L R E TU R N
$40,000
*Non-GAAP (U.S. Generally Accepted
Accounting Priciples) operating income, nonGAAP operating income per diluted common
share, and non-GAAP operating return on
common equity are non-GAAP measures. Refer
to the    Financial Highlights of Results for Years
Ended December 31, 2024, 2023, and 2022   
section in Item 7:    Management   s Discussion
and Analysis of Financial Conditions and
Results of Operations    in our Annual Report on
Form 10-K for the fiscal year ended December
31, 2024, for a reconciliation of the non-GAAP
measures to the equilvalent GAAP measures.
SIGI
S&P 500
$30,000
S&P Prop/Cas
$20,000
$10,000
$0
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2024 ANNUAL REPORT | 1
444413_Selective 2024 AR_v12_R4.indd 1
3/13/25 6:16 PM

TO OUR STOCKHOLDERS
2024 was challenging, but we ended the
year with a strong foundation. I am proud of
our team   s strategic progress and resilience
in addressing economic uncertainty,
elevated loss trends, and frequent and
severe weather events.
Financial results fell short of our
expectations. Elevated catastrophe losses
and our social inflation-related reserving
actions drove the 103% combined ratio.
However, book value per share increased
6% and non-GAAP return on equity (ROE)
was 7.1%, benefiting from after-tax net
investment income of $363 million.
As we look to 2025, creating long-term
value for our stockholders while making
a meaningful difference for our customers
during moments that matter remains our
focus. We pride ourselves on our long track
record of delivering a target operating
ROE of 12% or better and are committed to
returning to that in the year ahead.
NET PREMIUMS WRITTEN
$5
9.4% CAGR*
$4.6
NPW ($ in billions)
$4
$3
$2
$1

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
*compound annual growth rate
2 | SELECTIVE
Executing Across Our Three Segments
Success in a competitive market requires focus,
commitment, and ongoing investment. In 2024, we
advanced several key strategic initiatives that position
us well for long-term, profitable growth across our three
insurance segments     each providing significant value
to our distribution partners and the flexibility we need to
succeed in the market.

In Standard Commercial Lines, which represents
79% of our business, we added five states to our
geographic footprint in 2024. This segment now
operates in 35 states that extend across the
country. Over the next two years, we expect to add
Kansas, Wyoming, and Montana, bringing us closer
to our goal of writing Standard Commercial Lines
in nearly every state. We continue to view organic
growth     through geographic expansion and
increased market share in our existing states
    as a key value-creation lever.

Excess and Surplus Lines, representing 12%
of our business, also presents profitable growth
opportunities. We are further investing in this
50-state-capable business to improve process
efficiency, develop new products, and increase
scalability.

In Standard Personal Lines, representing 9% of net
premiums written, we are successfully repositioning
our business to the mass affluent market, where our
strong coverage and servicing capabilities allow us
to create value for our customers and distribution
partners. In 2024, we took targeted repositioning
actions on our book. In some cases, this required
tempering new business and lowering retention
rates, but these actions resulted in meaningfully
improved underwriting profitability. To further
enhance results, we are increasing rate levels
and refining pricing factors and policy terms and
conditions, which drive appropriate risk-sharing.
Growth will come in states where pricing adequately
supports our profitability objectives.

Helping Customers and Each Other
Is Core to What We Do
I am proud of our Selective team for delivering superior
claims service and supporting customers and claimants
during 2024   s elevated catastrophe losses. Their efforts
reflect our commitment to our customers, distribution
partners, and communities. The increased frequency and
severity of weather events underscore our essential role in
helping customers re-establish their lives and businesses
after experiencing a covered loss.
To help prevent customer losses and build on our existing
suite of value-added services, in 2024, we launched our
online Risk Management Center. This information center
provides our Standard Commercial Lines customers
seamless, on-demand access to a curated selection of
self-service risk management resources. We will continue
exploring other avenues to help our customers decrease
their exposure while they increase their resiliency to
evolving risks.
In addition, our investments in technology across
our portfolio have enhanced our effectiveness and
efficiency, increasing decision-making speed, customer
experience, and agency satisfaction. We are leveraging
general-purpose and industry-trained generative
artificial intelligence solutions to improve internal
processes. In Claims, a multi-year modernization and
process transformation strategy is underway.
Key objectives include (i) providing our adjusters with
increased quality real-time data to enhance decisionmaking, (ii) efficiently monitoring adjusting team
workflows, (iii) optimizing processes, and (iv) delivering
an exceptional customer experience.
Driving Financial Progress
Non-GAAP operating ROE for the year was 7.1% with
strong after-tax net investment income contributing
12.8 points.
Our 2024 combined ratio of 103% included 6.5 points
of catastrophe losses and 7.1 points of unfavorable
prior-year casualty reserve development, primarily due
to higher-than-expected severity trends in the general
liability line of business. Social inflation, which drives
higher severity trends, and elevated catastrophe losses
are impacting Selective and the insurance industry.
Each quarter, we perform in-depth reserve reviews for
all of our major lines of business, and we adjust our best
estimates accordingly. This process informs the pricing
goals and underwriting actions we execute across the
organization. Our disciplined approach ensures we
take the actions needed to ensure the profitability of
our underwriting portfolio, and provides us the ability to
effectively balance rate, retention, and growth across
our segments while refining our book of business.
C O M B I N E D R AT I O
GAAP Combined Ratio
Underlying Combined Ratio*
105%
103.0%
100%
95%
90%
92.9%
92.5%
89.4%
85%
2015
2016
2017
2018
2019
2020
2021
* Underlying Combined Ratio excludes catastrophe losses and prior year casualty reserve development
2022
2023
2024
2024 ANNUAL REPORT | 3



 3/26/2025 Letter Continued (Full PDF)