SIGI - Earnings call transcript Q1 2021 | Selective Insurance Group, Inc.

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Operator

Good day, everyone, and welcome to Selective Insurance Group's First Quarter 2021 Earnings Call. At this time, for opening remarks and introductions, I would like to turn the call over to our Senior Vice President, Investor Relations and Treasurer, Rohan Pai. Please begin.

Rohan Pai

Good morning, everyone. We're simulcasting this call on our website, selective.com, and the replay will be available until May 28, 2021.

which today, reconciliations the also of website. package, financial any Investors investor our referenced measures is supplemental provides of GAAP non-GAAP page Our available on GAAP our our in quarterly and with business Today, also filed annual, results report U.S. will that are discuss operations we using the financial current measures included and Securities and Exchange Commission. business. Non-GAAP we make trends insurance analyze and believe use it evaluate and for in operating to on return non-GAAP income to operating common which investors easier equity, operations our operating income net excluding gains and Non-GAAP net the after-tax on or investments stockholders, is to common losses income available on securities. or impact realized unrealized equity of gains losses And divided about future equity common by performance. our operating average non-GAAP common and return income projections non-GAAP shareholders' on and is measured operating equity as statements Securities Act risks the XXXX and These of not future under to are guarantees subject forward-looking statements Litigation Reform of performance uncertainties. Private and are

uncertainties, and U.S. For Exchange to risks discussion to supplemental disclosures and these COVID-XX the with refer filed related pandemic. annual a of Securities which reports includes please our Commission, detailed and quarterly

to should obligation Selective Chief executive the Mark Chief team: members Selective's aware or revise On that call undertakes Financial following of no forward-looking Executive are President Marchioni, Officer; be and John management today's any and You Officer. statements. Wilcox, update

the turn to I'll call Now John. over

John Marchioni

questions. consistent to growth an performance to call Rohan, strong of provide exceptional the our of elevated also catastrophe of our details good annualized the to backdrop, financial then opening our with ROE. well is non-GAAP on on initiatives XXXX We're continuing outlook, low some ROE of and excellent This above morning. losses interest I'll off to provide superior context before the was a quarter and results. you, first and Mark and Thank result results. it an challenging I'll and operating the track XX%, for It update remarks make environment opening record overall continued strategic start to on industry. operating economic up our some rate XX.X% an in return a turn target our over in

quarter Our underwriting both reflected and strong investment from first operations. results contributions

growth Our COVID-XX-related XX%, increases driven strong for renewal retention was premium overall by averaging year the audit price accrual, prior pure X.X% premium solid adjusted of and when rates.

ability and continued our current by extremely growth solid to climate driven pricing generate relationships, granular superior Our in partner capabilities. servicing sophisticated premium distribution economic customer part underwriting in tools and strong and is large the

with points for reserve Our quarter benefited line of catastrophe expectations and XX.X% in prior from ratio X.X year favorable that combined our the casualty were losses development.

Our to solid of of is quality testament XX% business. underlying our ratio book combined of a the

late Therefore, casualty to XXXX. reported and on remain key claims loss pre-COVID themes. at ratios geography seen below While levels quarter year-end towards our in XXXX accident claim have year highlight our I'd XXXX signs normal class and few increased loss severities. remain remained we at a said, of the depending of much uncertainty overall activity, That and early remains regarding a economic the have return of like frequencies on impact the casualty booked plan, business, levels. ratios

to continue First, and our objectives execute we extremely profitability. balancing of against growth well

of higher established past year, obtaining and in of for to our us above we and expected line strength track consistent in approach profitable disciplined needed a grow tailwind well that competitors, trend. term. of record renewal confidence the that expected see gets the need and below often over has book industry, what business the overlooked We've to meet The our with loss While consistent of execution additional pure a are price our quality market increases far decade-long our trend. expectations. more over easy growth loss position rate or our profitability enables is helped long our This difficult. in up have as overall it's grow Having is reserve generating make pricing opportunities renewal approach positions of lower with certainly of years some several us but pure who to pricing our than

quarter, pure up retention while basis For Commercial price a the Lines from points first X.X%, strong extremely renewal at remained increased ago. rate XX%, renewal XXX year

renewal increases of Across of less accounts and accounts based premium size smaller XX%. X% on of $XXX,XXX cohorts, all in renewal excess which our larger X.X% profitability in XX% premiums, renewal produced policy in price the of increased renewal For rate premium with pure constitute accounts of $XX,XXX, than X%. point of pure while quarter, generated highest-quality future expectations, price retention pure

lowest-quality renewal retention of able our an us of has of an increase allowed each rate return business. ratio administer the granular pricing we're our pure loss to retention to strategies understanding comprising while point mix and of characteristics premium XX% improvement renewal through on of XX% of This and basis. extremely generating basket improved and accounts Our retention By policies, risk XX%. generated

Second, this investment interest perspective. while yields low a rate on and the from portfolio interest related are investments long-term up far The they low will remain environment still so from historical over the time. extremely ROE rates book contribution year, lower

liquidity goal as and our investment to performance. pressure underwriting industry-wide generate a to interest intend Our This from not to will focus an of We improve strategy generating is generating to capital returns. and margins target allocation higher remain is lower not companies that greater to conservative rates investment offset of putting adequate underwriting on impact are designed returns supporting issue, on means be the underwriting standpoint. of do increasing yield, further change our a a materially with operations

million footprint in losses This losses. industry, substantial our falls resulting storms, property and retention catastrophe particularly frequency the of risk frequency that the for $XX at events. years footprint. higher primary loss wildfires, a our losses industry and reinsurance $X net to in outside and non-catastrophe a recent elevated million occurrence within activity, hail The in through customers, continuation our increase forward. catastrophe winter that for business lines the and industry and Climate-related managed for reflect going the trend loss reflect risk convective a pricing poses We process from storms events. have continued to and are Viola, conservative weather-related losses industry-wide hurricanes, booked program states. remains resulted storms, for in $XX should Uri better our our from standard disciplined change lines derechos and per those events. storms Third, severity including catastrophe winter elevated in increasing weather-related both Climate and underwriting catastrophic risk of a a for for attaches of We major in longer-term aggregate our states severity a quarter, million

business on risk risks risk Our climate mitigation on is mitigate their understanding and losses. and customers mitigating recover our helping focused and quickly after strategy catastrophe our experiencing

holding which liquidity Finally, I at insurance capital levels. strong our at the company wanted and subsidiaries, and positions to record remain highlight extremely

than quarter. Mark believe provide come I'll XXXX, We our opportunistically million which attractive Board repurchase capital our other the strong our Late authorized generate over now the to returns to we the commentary, review capital also at options. to support for additional a that for attractive have more adequate $XXX turn results while price deploying but in begun back shareholders. to deployment organic growth evaluating call I'll share have program, points we

Mark Wilcox

our update and Thank morning. finish consolidated results, I'll XXXX. an and our for performance with segment guidance capital discuss review our on position operating good you, John, and

We For we an with share XX.X%, the a and ROE annualized per per stockholders excellent net available earnings $X.XX both investment operating income of reported quarter, contributions operating share common $X.XX. of insurance first recorded non-GAAP of of to and ROE from XX.X% our and meaningful diluted operations. quarter non-GAAP

business strong underlying XX% reported off better-than-expected COVID-XX-related an X.X our We of under pricing development, booked XX% this XXX line operating solid E&S which premium in our strong strong points adjusted to for year prior and net first cost to year, Lines the favorably premiums in the X.X results pricing basis, perspective. compared year $XX extremely million pure losses. casualty year XXXX ratio the and earlier pure an Commercial was On increased quarter growth a $XX and losses, net an the points; in reflects top in basis prior casualty favorable our period. to or Our XX% continued combined accounted in segment. combined strong from year of The and target growth start for of growth a over set higher property ratio pressure. which reserve $XX compared new XXXX be Consolidated points. Personal XX.X% are compared when to written catastrophes retention spread million the combined ratio drivers quarter and audit primary of weighted million and capital. ago to period. the Lines a the and in quarter. for accrual consolidated premiums or approximately renewal renewal prior Included of with prior catastrophe non-cat strong we of a year The ratio the non-GAAP excluding or Overall, expense XX.X% very reserve was profitability our translated XX% average with ratio development, are quarter ROE lower combined underlying for

In ratio combined X.X of addition, included recall items. COVID-XX-related quarter first our that last year, points

Moving expenses. to

earned for of ago management was The the were compared specific expense as for accrual. The X.X items, administrative overhead, reduced premium expense the included prior impact expense a primary as drivers and and with ratio well expense the provision the year quarter XX.X% bad initiatives debt XX.X% underlying improvement and and expenses. year Our for the points ongoing period. including general COVID-XX-related audit entertainment of ratio ratio of travel lower

reverting some travel improvement by normal to the Corporate ratio year, start comprised into course continue more during expect and we entertainment next. to year the expenses, component and which the of we incentive principally are expect of million compared $X.X stock the to company expense costs While ago quarter totaled $X.X holding higher this levels expense back compensation the in compensation, of slightly long-term stock-based stock that our expense due driven plan. impacted compensation year in our long-term a price, to million variable was which increase to

segments. our to Turning

premiums the million Commercial Lines increased net XX% ago $XX quarter, audit XX% when accrual. written or the For for year first adjusted premium Standard

As $XX a net compensation and the million accrual line audit written first from million. line million general our by reminder, liability workers XXXX in our our $XX premiums the by $XX quarter impacted reductions

and over million. stands have audit $X of $XX accrual negative accrual the We the recorded midterm against and endorsement last premium year, million at now the

of the this and growth for the forecast this to premium U.S. later significant remainder expect audit tailwind a year. in we become year, With endorsement the of midterm

Turning Lines. and pricing retention to Standard in Commercial

increased over quarter retention points XX%. comparative the XXX Our to basis

in has which price, pure X.X%. quarters, the renewal healthy been increasing a recent Our was

X.X Retention Personal underlying included XXXX strong the averaged The all by write that driven auto. year-over-year and our points of down ratio by for reserve particularly quarter Lines price X%. X% a and year was reported claims environment. ago combined for ratio what in and business however, of for combined general development X% accident down quarter net was ratio premiums due in Lines X.X%. was relative underlying The was flat quarter, to ratio casualty prior. in competitive new The were Commercial year personal The combined prior development combined at pure $XX Prior XX.X%, cat The prior points XX%, at losses of in non-cat In competitive XX% winter segment, volume was a of business, and up Renewal net losses Renewal XX.X% reserve was conditions, each points catastrophe reflects E&S net XX New was to a year X.X the the was points. liability relative written favorable we increases property storm years development. million compensation we quarter, comparative was emergence business year averaged market casualty the business and XX.X our reflecting to the by XX.X%. favorable lines a property XX%. and The a X.X decline catastrophe X.X%, E&S of driven resulted ratio by favorable continued reported in from reserve and ratio ratio. consisted The quarter workers Recall business across of totaled million segment in pure the year from contributed $X.X quarter. favorable was $X.X the XX%. new for states. the the points to segment, premiums ago. principally losses Uri. above of we underlying increases elevated the In ratio growth XX% for combined ratio volatility XX.X% $X that combined written price X.X combined million combined net the losses lowered the and loss million non-cat a

Investments. to Moving

positioned. well Our investment portfolio remains

quarter The investment high-yield credit quarter credit delivering the in year-end at income, decline strong up and an of a X.X% was XX% XX.X% value assets, limited and of income contribution. more total offering equated interest for years, lag. our longer-dated of credit income decline in income which real investments a by After-tax $XXX X.X% after-tax of of we XXXX. AA- and equities in The private X.X% negative rates X.X net with of after-tax on portfolio, increased on short-term duration driven the investment a the alternative X.X% compared in yield points after-tax of offset was quarter, purchases which quarter, from high cash fixed valuations. million effective portfolio the net the ROE within quarter, primarily include to rising of asset operating on average reflecting was for premiums the primarily comparative a impact our benchmark degree contained quarter end, with the yield money was written. which equity, return XX% portfolio, quarter, with spreads. rating fixed allocation continued portfolio invested by average fixed was Cash As of fourth the for during million securities and than the quarter with partnership flow income our new $XX on of the the strategies, XX.X% of of represent of and record million X.X very investments the $XX.X total Risk increase continued the X a of and growth portfolio strong of driven investment to X% private with an gains, which public liquidity. in fixed was flow XX% The

capital. to Turning the

billion capital strong $X.XX of with position Our equity. extremely GAAP remains

at and significant with investments cash $XXX have financial holding flexibility our We built million company. of

range ratio written premiums net X.XXx, at of is our XX. slightly ratio and Our surplus to debt-to-capital our XX.X% below March target was

X% capital have we our at Given the future rates strong X% growth as financial grow find attractive sustainable to our we opportunities. above position, to flexibility the rate for foreseeable well

our repurchase our XXXX, in for focus on returns deem allows growth. when In shareholders continue and are December course, Board be profitable share long we term. opportunistically $XXX back that shares the discipline will Of attractive over our us program authorized market buy to to million open the

of an During under the quarter, million we for $XX.XX million, of average remaining repurchased approximately XX,XXX $X.X price leaving $XX.X our of shares total a at capacity share repurchase program.

some repurchased for not with to I'll on subsequent shares guidance We have any quarter end. updated finish XXXX. our commentary

the the First, profitability net the of an development This losses, excluding and from we improvement reflects in first catastrophe the now prior of is expect guidance casualty XX%. GAAP combined strong of favorable XX% our quarter. reserve inclusive ratio,

no assumes reserve casualty additional accident guidance Our prior year development.

alternative net income and points from from our net projecting This our investments. reflect on income guidance ratio. million from after-tax gains $XX catastrophe million assumption principally investment up now in $XXX increased Our $XXX prior loss X remains investment the alternatives. of million, including We're after-tax combined is

expect continue net diluted XX% the overall includes of an XX.X%, approximately And that, average investment turn other a for to call all basis. I'll remain to over and rate an which million John. XX% effective rate tax We of items. income back tax weighted for shares XX.X With on effective

John Marchioni

through some highlight to I'd you, of we areas strategic Thank like of XXXX. Mark. our as focus move major

Lines to growth continue to results. We generate execute plans outperforms profitable significantly that our on industry Commercial

while is returns enhance opportunities, our shareholders. Our with and on generating distribution provides customers partners for market with our and those our us attractive the growth evaluate solid capital to various that flexibility position focus position

to long-term new distribution growth XX%, partners' Commercial bring to that additional Lines positioned stakeholders a premium distribution build franchise it appointing to share value are to The various our a expanding in and continue identify strategy for states. financial increasing market XX% We to achieve partners outperformance. our organic of strategic share to and our further overall new to major agent is of ways drivers

The issuance been overall in our technology enhance our tool, As market we with calls, their has portfolio insights that out into tool for we've tools that which optimizing with agents. and and recent strong to on significantly agents the partners, platform highlighting overall service invest new BOP MarketMax acceptance small rolled our since among and distribution offerings are to their business of year-end. position in can XXX continue and partners in and partners, the identifies to to and who offer process strong been our small all of us, to with to to we BOP has streamlined grow now seen fewer fourth accounts increase a We their the expect submission our The opportunities increase for this We carriers quarter while for out quoting approximately them distribution XXXX. by rolled business business eager these XXX business provides experienced with their relationship. products superior often rollout. consolidate our

competitive position. expect quarter we performance agency solid this moving our such the platform saw auto already enhance plan quarter, year. as will include mix platform roll and our enhancements affluent this We've new base Inland launch we for of seen in our services. remainder We growth to rollout for products launch. business in our targeting positive segment. In importance official first E&S of coverage broader the for out additional a as liability better general on and we forward segment with and Marine launch product prior a to on third some our Personal Later the serve product automation expanded first to year, the contractors coverages Lines, that the during coverage planned of During quarter designed to continue improving to to the we're further bundled places the the customer and customer momentum mass greater market, our track homeowners that small

to of position strategy. As our I we market remainder XXXX, about and look the extremely unique confident remain

talent, distribution the position us for tools, continued performance. excellent and place have capabilities to We partnerships in

to profitably X We over capabilities open that, questions. we'll a Operator? the have for double-digit call growing the up With rate. these consistent ROEs demonstrated while to business ability years leverage our past generate at the healthy

Operator

first Instructions]. JMP. question the line from Speakers, Carletti of our [Operator from coming Matt is

Matthew Carletti

of questions struggle keep Just to I always Standard a Commercial. couple Mark, up. on

$XX You speak million out headwind, the audit I believe the fast. across. you COVID-related split premium,

million on that caught think of buckets? I'm other Is assuming those $XX I comp. I'm the is correct? the piece GL it. And I across, workers up. making Maybe that Are

Mark Wilcox

correct, You compensation those Matt. XXXX it and of $XX you for QX million have looks for a a in growth $XX liability business quarter $XX because It wanted in overstated to of in comparative workers that. for total was a million. just I million those the on rate adjust don't QX provide little in XXXX general lines if

Matthew Carletti

about following of going on it so Perfect. that, kind is you growth So return just Yes. on that, payrolls talk work then a even it little new more nice it adjust if for to there? business I a accounts? activity? was mean, that? what's adjusted Can particularly pushing on better Is it that. Or And workers yes, for pretty is the bit comp in your we existing more acceleration

John Marchioni

take I'll John. is This Matt. that. Yes,

to is few there, general and flat. for And pricing comp improve. So things where I liability more it than starting also got workers think see still is relatively for exposure it part of you've we price is related, happening so a

all-lines on in under X.X%. our all-lines individual on I'm was not lines. Lines QX, up an and just So we out exposure in specifically an Commercial breaking basis, saw basis, But the

those you And point I So to basis to rates, are XXX of growth. retention other that the increase part in all contributing it. about that's think then and add

write. in overall. the in a in relatively I flatter And New we mix again, segments manufacturing, of the bit stronger terms matters business think saw a bit little we in flat was And that growth quarter little contracting.

I that drivers. the of say some push major bit. your lines a individual would those around also were will So little

your retention, strong exposure little on and there. got portfolio, up renewal You working through of price bump a in so bit

Matthew Carletti

buckets? of the in bulk Okay. question. modeling do and The The one but cats Great. assuming into million fell that maybe BOP And segment, property, -- you I'm was then $XX have just commercial some the other auto. commercial

John Marchioni

Yes.

give to second to a that. Just get us

Mark Wilcox

property, sits it can if kind commercial you of Most break in but I out Yes. like. that of

it, balance but Lines Commercial out call approximately of So million. property; is out million then $X.X was in Standard auto, a XX There that came of of the $XX.X the BOP, was little in $XX.X in commercial of -- and cats bit $XXX,XXX. came which QX, million commercial

the cats So of the three of X lines the different of business. those into were -- breakout the

Matthew Carletti

Congrats a nice Perfect. start all to got. that's Well, the Okay. year. on I

Mark Wilcox

Matt. you, Thank

Operator

our question Meyer of Speakers, is next KBW. the coming from from line Shields

Meyer Shields

win retention And your the on And I'm that that trying the wondering, is of bigger to rate premise you competitors of a impact the on smaller we're the write influencing Great. smaller growth? from win there understand marketplace that from quality competitors? you dynamics in difference accounts I'm John, and seeing them what some Basically, you expectations. is is when accounts Travelers' to decline. compared

John Marchioni

Yes.

new tough relative all, quarter a which was in terms the our competitor what to closely insurer. business of look first first, business necessarily we I where hit So each second the the at to performance very previous was that is relative pricing don't because of see written. priorly target answer. one there expected difference to I'll questions by

where where each by know We is business class and pricing the it know against those is from. of we is what our deviation So coming competitors.

I would company accounts say there's we to no fairly So from level we a the win company. in from of larger look low it than And detail. difference at smaller pricing a at need a

the focus -- book part is competitor of this possible each But our marketplace. there disclose I nothing an and granular we manage a years in for can't and price is very on is retentions the trends on would important track yes, of That's -- would because we -- why relative this, consideration. And continue as the in ourselves the the the I I a other pricing really on strong. consistent expectation point who what Travelers, I strategy. your on is one for see basis be to how first a we that any that on those suggest speak for forward loss to higher X we little think is quarter versus us question, profitability more know to pricing to our business XX part what your managing we relative the going that pride to And best both. we the retentions areas, With there's would we But of different. regard be being be that's over need our expect for which the bit commercial record side, of us, market cohorts So small as think first partners. to driving of expected so allows a pricing the but consistent player in distribution our great

not retentions what then I relative mix hold final getting which not different up slightly think little perspective. of that disruption. of from might bit next, make, a you're it the individual look causes helped of So that any most to restaurants, I'll retail than business. business different is focused And that fair a and big pandemic X write. have the of makeup, of helped little our some a our competitor, are has at our more small in business small And it's movement probably to if a we point to rate terms accounts think books amount the I you And less it's because this our impacted tend stronger bit probably from -- a does some be on that contractors-focused, heavily year

Meyer Shields

very very, That's helpful. Okay.

yours. -- words, is question, my second assuming maybe The not this and

coming XX Assuming have are there sort G&A that with expenses unprecedented premiums months, we that? next associated any the audit of over

John Marchioni

Yes. Well...

Mark Wilcox

but it. G&A no se, commission associated the per There's you have would with

and come it G&A. but come but not it, through would -- the associated necessarily incremental commission a basis So written on or have with associated an earned through doesn't

John Marchioni

exposure. Yes. does And it because is other of premium bring part the with think -- that it I

will know with get parse losses. I when could I perspective, acts And realize vehicle. that like So That's big that from doesn't that act challenging additional a and exposure don't uplift anticipate loss that versus obviously a rate would to exposure that again, companies in that a ratio like exposure brings I there's adding you're rate, it profitability. try

If relative getting I your there costs on your basis. mean, I premium accrual sure are of number employees are to go staying higher some our going want payrolls exposure we in indemnity But a audit was driving were stable, to taking action still your -- are very on make of careful increase also exposure additional we but you're thought the because appropriate. terms that

business got a because line in profitability. and our whether for you've and So we of positively and be bounce-back owners got carried premium and non-auditable line some go in on allowed comp built And that, adjustments the certainly a I companies the massive line. exposure most in to not to influence GL terms inflationary going change to come are influenced some premium property property sure got to will if really again, just would you've by But audit -- recorded and I'm don't lot did, values We through it's of economy more exposure lines, that manage amount. built the other we or you're building be for lot the part, know reserve. companies exposure We an by obligation in in rise driven bounce-back reasonably that exposure I necessarily anticipate change. some us in that's a there. influenced higher, see estimate But going it massive the this you've and proactively.

Meyer Shields

looking informative. immensely the thoughts but on for really was was I some expense helpful. very that's No, that ratio,

Operator

is question our from Scott Markets. coming Speakers, RBC Instructions]. of next Capital the [Operator from line

Scott Heleniak

a had here. just few Yes,

you I frequency major I'd right we've that comp, the just some first, a commercial kind few it talk as auto. workers a little key severity companies where been about Yes, of lines. could in about you is even you're has could if of But favorable and lines. versus book auto quarters, well, severity seen talking imagine, across frequency wondering down. in of economy number part couple severity a particularly particularly of comp, in in and and heard, the commercial workers of though pretty wonder the yes, frequency seeing those of if GL the past increases obviously, given it in across some We've few The on, part in the touch companies. what And your is bit just wondering a now, the

John Marchioni

Yes.

this think is I -- John.

that to expected to is expected. certainly similar, put versus than isn't want in I better have severities of suggest your evaluating And is a it's the more looking again, we're I that and frequencies prior wouldn't but think different come is from in context generally you're approach the this expected about level year. always recent fairly overcoming severities -- accident much seeing actual what we've where taken, severity back the at which talking our that I

the has the not absorb have is, in much GL in to frequencies have speaking, would do movement than expected better allowed But loss regard might an generally think a a fact to comp, worse a and than to I have on those severities a emerged although have So trend little bit routinely severity that overcome us improvement you're with be perspective. bit expected, what picks loss of expected, spot which run is question I say, that frequency. in embedded increasing there? what And you little we included from enough

a least which this more has frequency-driven, at we've for bit been been different, little cited I think I and consistently, of a pretty has auto think us.

to are a of so impact going back, that's ratios, want things monitor prior loss Looking impacted more it's severity. forward. again, less But these those frequency-driven you

uncertainties better a than expected, years. But most very the did XXXX, just that that immaturity recent we've any incurred of accident hard year-end, the hard highlighted from at the to book perform quarter seeing severity. in much in and around out this think really in fact Certainly, with frequencies on what put of the we're credence I point comment terms severity. it's it's to

Scott Heleniak

while. and Commercial the just Lines, previous releases I releases. seen on is Okay. and know a mostly. That comp I'm could in That's helpful. wonder then makes this it's mentioned you you And years, give more little you accident detail sense. XXXX in of mentioned the assuming -- GL we've -- a workers reserve And if level I highest in for

if you some if in give a E&S long had which the more areas. And releases wondering time on well that as time. can could you little as comment quite a detail line, those on just first So for of

Mark Wilcox

in Scott. well. Sure, This and can Mark. start, is as jump don't Why I John

was general I X.X so $XX and significant you're that then in $XX favorable workers mentioned, favorable total. liability. absolutely development quarter, in of million in ratio. and time, million, Lines first emergence the was So combined reserve the right, casualty within that, did of was in claims Standard $XX of first benefit pretty each or of and net on as Commercial $XX $X million points And see that E&S, the million million compensation for we that the

about little As the $XX I of the to 'XX, if we really the of it million. and of And $X essentially a in mentioned $XX provide prepared out was $XX $X million in claims bit specificity, out, were emergence, of the prior. break year, that quarter. million we out more comments, a that's out million favorable $XX saw out XXXX came 'XX my million 'XX, of And that's just majority million you which of responded and very and where 'XX, to

John Marchioni

last years, have the impact, going reserve probably probably that overall tempered over in the the we way look did release the commercial it when purposes of is, accident other numbers auto individual years, these accident of are through coming movement think comparative offsetting not look which not at you you is thing some I back by big other individual the year basis. an on case. for if couple So But an

Mark Wilcox

any John year. bit Yes. be comments, of trends respond to picks his too coming prepared that XXXX adjustments haven't in the we to made mentioned And as year, any a little the XXXX to it's through still so on might loss the early

Scott Heleniak

in QX. All QX renewal versus right. little up bit pricing. last The It Perfect. on question, just the a ticked

are the of in But have And pricing-wise? leveling slight bit you seeing of the other And to on their what continue do kind year of of off we've companies you wondering deceleration of if talk April mentioned pricing. or Some you that kind you're goes -- I to trend as know kind a about on share can on? expect build the a a some what to even in with you you're seeing seen detail pricing. seen little able sort anything

John Marchioni

from this do on and we've on about market each don't bit headline go-forward basis. And haven't in. Scott, sharing think little portfolio is plan And in high we in their is call. let line business don't mix this a and still company's we're the know what that lot I a we So is driven And of anything past, mentioned April about number think, on play really just seeing marketplace I a me the talk the exposure different. change a by price different, of being the lines I

numbers bit just And you've end market similar when companies So really steady. probably of you high-hazard I high various scale, interest that always pretty the classes, about environment. loss for dynamics maturities running still remain market else, And what again, to money it's strong rate basis, reinforce, by say hazardous is the that disposals. seen below And their you at get will see I'm the are on your look fixed see and investment low to market, we're and in smallest suggests go-forward we the limits, are the I rates we some whether middle important at on core to we expected at projecting manner are quarter. it's think is limits again, out the professional property, end pricing pricing smaller everybody and for And rate had strong prolonged talk excess on the pleased in of been that weight pricing your tempering want a your the improvement holding that fact saw. a alternative to And year we push trends. other surveys, the And some results, what other continue starting significant us would the I little a a think it's lines, least on don't your that and new of those sequential relative underlying to income the were also of driving with our but not excess overwhelmed the rolling you saw. there. #X off more But reported but our to think expectation

margins for last everybody some years side. that loss now is to combined on Property in So ratio much to a those going forward I pressure have make that the that remarks everybody you're non-cat in recognizes and year everybody. prepared feeling up seen is a to the touched they going and continue underwriting losses, normal we elevated on the that there when to because have they're price that like then cat and as be realize for to is project need into a we've they lower in line run couple the at product. which

elevated a You've an I firming it's certain away. conditions that's not has in about loss and you've terms trend. about pricing, reinsurance got And just got gone important cases. market that It's point. but think not also And

years also would And Best, that it we as is the Lines last XXX% is around everybody's that in built of got strong in have do Commercial though years. suggests The normally And and putting without ago, whether And has to it's continue of got Conning ratio. some phenomenon of most, expected work these final our very of what around combined are X% other some And broad that's industry our the public are about about up is, results. margins. terms AM improvement strong, that point influences think which think in persist. loss over to margin a From right industry new running our still to the then necessary results be up now is several made or couple Commercial it's X%, and margins. I perspective, talking Lines peers are we well, for trends

Operator

Currently, we at have the Instructions]. queue. [Operator don't this Speakers, don't have any time, in questions any in questions queue. the we

and to turn I'll that, with go go over back So John. John, please ahead. ahead call the

John Marchioni

Thank you time with as any follow-ups. you. questions. Well, your to follow morning. your feel always, for Great. your this And Mark thank with We and participation all up or appreciate Rohan free

Mark Wilcox

Thank you.

Operator

today's Thank you. you that for much concludes participation. call. And Thank so your

You may now disconnect.

Selective Insurance (SIGI) 1 May 212021 Q1 Earnings call transcript