Selective Insurance Group Inc. First Quarter 2025 Investor Presentation
INVESTOR PRESENTATION
First Quarter 2025
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Copyright © 2025 by Selective Insurance Group, Inc. All rights reserved. |
Exhibit 99.3 |
INTRODUCTION
Every day, our interactions with our customers and
distribution partners reinforce the importance of our role in rebuilding lives and businesses, making communities safer, and supporting economic expansion.
4
A LEADER IN
34th largest P&C carrier in the United
States*
|
ROE: |
Combined |
Standard |
Clear path for |
A+ (Superior) |
|
1Q25: 14.4% |
Ratio: |
Commercial |
continued, |
rating by |
|
1Q25: 96.1% |
Lines Segment |
profitable |
AM Best |
|
|
2024: 7.0% |
comprises 79% |
growth |
||
|
5-Year average: |
2024: 103.0% |
of Net |
||
|
Premiums |
||||
|
11.1% |
5-Year average: |
|||
|
Written |
Expanding |
|||
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10-year average: |
96.5% |
|||
|
geographically |
||||
|
11.3% |
10-year average: |
with the goal of |
||
|
95.0% |
a near national |
|||
|
footprint |
*Based on 2023 net premiums written in AM Best's annual list of "Top 200 U.S. Property/Casualty Writers"
5
SUSTAINABLE COMPETITIVE ADVANTAGES
Our unique operating model
that places empowered decision-makers alongside our customers and distribution partners
Our ability to develop and integrate sophisticated tools that our front-line employees use to inform risk selection, pricing, and claims decisions
Our franchise value
distribution model, defined by meaningful and close business relationships with a group ofhigh-qualitydistribution partners
Our commitment to delivering
- superior omni-channel customer experience, enhanced by people and technology
Our highly engaged and
aligned team of extremely talented employees
Our success is based on a uniqueNASDAQ:combinationSIGIP(preferred)of competitive advantages.
Taken together, they create a winning formula for Selective.
6
DIFFERENTIATED OPERATING MODEL
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• Underwriting, claims, and safety |
|
|
management specialists placed alongside |
|
|
our customers and distribution partners |
|
|
Unique field model |
• Proven ability to develop and integrate |
|
actionable tools |
|
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• Enables effective portfolio management in |
|
|
balancing rate and retention |
|
|
•Approximately 1,640 distribution partners |
|
|
Franchise value |
selling our standard lines products and |
|
services at about 2,840 office locations |
|
|
distribution model |
o ~850 of these distribution partners sell our |
|
with high-quality |
|
|
personal lines products |
|
|
partners |
o ~80 wholesale agents sell our E&S business |
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o ~6,420 distribution partners sell National Flood |
|
|
Insurance Program products across 50 states |
|
2024 NET PREMIUMS WRITTEN
|
12% |
||||
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Excess and |
||||
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Surplus Lines |
||||
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9% |
||||
|
|
Standard |
|||
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BILLION |
Personal Lines |
|||
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79% |
||||
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Standard |
||||
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Everyone with Selective makes our customers feel like the #1 priority.
The ease of working with Selective is unmatched.
- Selective Agent
7
NON-GAAP OPERATING ROE
14.4%
|
15% |
SIGI |
|||
|
Peer Avg. |
||||
10%
5%
SIGI 10-Year Average: 11.9%
Peer 10-Year Average: 8.6%
|
Operating ROE |
1Q25 |
2024 |
|
Investments |
12.8% |
12.8% |
|
Underwriting |
4.8% |
(3.7)% |
|
Other |
(3.2)% |
(2.0)% |
|
Total |
14.4% |
7.1% |
0%
|
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
1Q25 |
Note: Peer Average includes CINF, CNA, HIG, THG, TRV, and UFCS
Generating ROEs exceeding our cost of capital and peer group average over time
100 basis points of combined ratio translates to ~120 basis points of ROE*
100 basis points of pre-tax investment yield translates to ~260 basis points of ROE*
8
*Calculated using average equity
Sustained Track Record Of Profitability
|
NPW CAGR VS. AVERAGE COMBINED RATIO |
COMBINED RATIO (AVERAGE & VOLATILITY) |
|
SIGI |
10% |
105% |
||||||||||
|
9% |
||||||||||||
|
CAGRNPWYear-10 |
RatioCombinedAverage |
95% |
||||||||||
|
8% |
||||||||||||
|
Industry |
7% |
Industry |
||||||||||
|
100% |
||||||||||||
|
6% |
||||||||||||
|
5% |
||||||||||||
|
4% |
SIGI |
|||||||||||
|
3% |
-10Year |
|||||||||||
|
2% |
||||||||||||
|
1% |
||||||||||||
|
0% |
90% |
|||||||||||
|
104% |
102% |
100% |
98% |
96% |
94% |
0 |
2 |
4 |
6 |
8 |
||
|
10-Year Average Combined Ratio |
10-Year Standard Deviation of Combined Ratio |
|||||||||||
|
Note: White dots represent P&C peers: CINF, CNA, HIG, THG, TRV, and UFCS; 10-year avg based on 2015-2024 |
||||||||||||
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Industry Source: © 2025 |
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|
CAGR = Compound Annual Growth Rate |
9
TRACK RECORD OF DISCIPLINED, PROFITABLE GROWTH
NET PREMIUMS WRITTEN
|
|
9.4% CAGR* |
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billions) |
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NPW ($ in |
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$- |
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
COMBINED RATIO
105%
|
100% |
||
|
95.8% |
||
|
95% |
96.1% |
|
|
95.2% |
||
|
90% |
Underlying Combined Ratio** |
92.0% |
Reported Combined Ratio
85% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25
*Compound annual growth rate
With current market share of ~1.5% in
has meaningful runway to deliver above-industry growth
10
** Underlying GAAP combined ratio excludes catastrophe losses and prior year casualty reserve development
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Attachments
Disclaimer
Additional Proxy Soliciting Materials (Form DEFA14A)
AM Best Affirms Credit Ratings of Interamericana de Fianzas y Seguros, S.A.
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