Selective

The New Jersey-based insurance group has rebounded from prior-year Covid-19-related challenges, calling this its "strongest capital position in history".

Management at Selective Insurance has updated the carrier’s profit guidance for 2021, saying it now expects the company to report a combined ratio of 90% for the full year.

Selective’s operating profits more than doubled year on year to $102.8mn for the first quarter of 2021, as the carrier benefitted from a $30mn prior-year reserve release and a 24% rise in investment income during the period.

Insurers face the difficult balancing act of signaling optimism to investors as they seek to push rate rises.

The first week’s reporters present a conundrum around whether or not we will see ROE expansion in 2021.

The executive says pricing increases in lines such as property and GL during the quarter were less pronounced.

Despite the continuing impact of Covid-19, the insurer’s combined ratio for the period improved by 3.7 points to 88.1%.

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.