CORRECTION: Selective Insurance reports Q2 non-GAAP EPS ($1.10), consensus $1.48

Reports Q2 revenue $1.2B, consensus $1.2B. Adjusted book value per common share was $49.67, down 3% from last quarter. “This was a challenging quarter. We did not meet our high standard as underwriting performance fell below our target. The unfavorable prior year casualty reserve development was driven by elevated loss emergence in the quarter reflecting higher severity that we attribute to social inflation. Our reserving action is predicated on our in-depth quarterly reserve review and further strengthening to address elevated and uncertain loss trends,” said John Marchioni, CEO. “We have a very stable underwriting portfolio…We expect Standard Commercial Lines renewal pure price will trend higher in the second half of 2024. We maintain our disciplined focus and execution in the areas of risk selection, pricing, and claims management in the face of this challenging and dynamic loss trend environment. Our capital position remains strong and our underlying combined ratio of 91.4% positions us well moving forward. We are confident that we will quickly re-establish our strong earnings profile, consistently meeting or exceeding our 12% operating ROE target”.