Selective

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.

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.