Selective

Most storms affecting Selective’s results were in the Midwest and on the East Coast, and none were large enough to attach to its catastrophe reinsurance treaty.

The firm reported $55.3mn cat losses in Q1, of which $35.1mn were recorded in the standard commercial lines segment and $14.6mn in personal lines.

The carrier also increased its casualty loss cost assumption to 6% from 5.5%, driven by increased economic and social inflation.

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The company booked pre-tax net cat losses of $45.7mn, which included $46.1mn of net losses from Winter Storm Elliott.

In its preliminary Q4 earnings announcement, the carrier estimated a combined ratio of 94.7% for the quarter.

The regionals continue to find success in small and middle market business, as their pivot to a commercial focus has benefitted them.

In the third quarter, the company's underlying combined ratio, stripped of catastrophe losses and reserve development, totaled 94.7%, compared to 90.4% in the corresponding period.

The company posted lower cat losses despite a $10mn net loss attributed to Hurricane Ian.

With pricing decelerating and loss-cost trends potentially reversing, regionals should continue to execute on their present strategy.

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In Q2, Selective's headline combined ratio deteriorated 5.7 points to 95.5%, driven by higher catastrophe losses and lower favorable casualty reserve development.