Selective

Inside P&C’s research team examines some of the areas that will be closely watched during the results season.

Strong rate rises bolstered premium growth despite the carrier taking a 11.4-point hit from cat losses.

John Marchioni said the increase in business written was a result of upward pricing and policyholder retention.

The results included $83mn cat losses, largely from April storms and civil unrest, in line with the pre-announced figures.

The carrier is expecting to report a combined ratio of between 98% and 99% for the second quarter.

The New Jersey-based carrier lowered full-year 2020 guidance on both underwriting and net investment income based on expectations of top-line and alternative investment income pressures.

Selective reported strong earnings in Q4, but with results partially offset by remediation work in its smaller E&S segment and a more competitive personal insurance market.

AM Best upgrades the outlook of the A rated company from stable to positive.

Selective reported operating EPS of $0.97/sh, down 2% versus $0.99/sh in the prior year period and modest miss against consensus of $1.06/sh.

Differing views on the impact of a lower rate environment emerged as a key controversy from company presentations Thursday.

Better E&S underwriting results and NII boost partially offset by offset by higher cats and expenses.

Gregory Murphy said there needs to be greater understanding of reinsurers’ credit risk.