Selective

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.

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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%.

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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.