Earnings call transcript Q2 2023

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Operator

Good day, everyone. Welcome to Selective Insurance Group’s Second Quarter 2023 Earnings Call. At this time, for opening remarks and introductions, I would like to turn the call over to Senior Vice President, Investor Relations and Treasurer, Brad Wilson.

You may begin.

Brad Wilson

Thanks and good morning.

call available website, until this replay and simulcasting be will September are on selective.com, our a We Xst. We our used results discuss and business three operations. measures to

in current First, annual, SEC. measures GAAP we reported use quarterly filed reports and with the financial our

operating use we which investors non-GAAP easier believe insurance evaluate our Second, business. it for measures, we make to

gains equity operating is net losses excluding Non-GAAP of impact after-tax gains on income is income or stockholders, common on common Non-GAAP non-GAAP divided net investments equity. on or operating return unrealized operating and the securities. by available to losses stockholders’ realized equity common average income

in Adjusted book or income. other reconciliations common total on per exclusion supplemental comprehensive to value value GAAP of page financial found non-GAAP package any our common the included per our after-tax in unrealized from Investors losses measures of accumulated book by investor and are the differs loss share gains referenced share investments website. on

our SEC. are and of future risks statements are Reform reports They guarantees and and not Third, Private under to are subject annual, Act of performance. Litigation We forward-looking our in future filed projections to quarterly or performance we no Securities the undertake risks detail forward-looking uncertainties. with in uncertainties and statement. obligation these discuss the statements update XXXX. make We about any These and current revise

President the Chief by turn John Chief the Mark of President, Executive our Board, Officer, and our Financial Vice I’ll who Now call to be Wilcox, over Executive Chairman Officer. will followed Marchioni,

John Marchioni

thank joining Good Brad. Thank morning us. and for you, you

affected catastrophe driven and losses. results our industry casualty exception, impacted storms all footprint We losses our mainly in and by three no were segments Midwest East of states. property elevated by underwriting these quarter second Coast The were

being year, and our about capabilities the losses the underwriting XX% management, target. half first with expected above levels, the elevated of is three ROE industry’s to robust our was sophisticated risk strong sheet, balance above despite loss Selective slightly uncertain trends. well operating However, positioned and catastrophe navigate our points In XX.X%,

growth excellent XX%. In quarter, net premiums written the was an

and relationships business strong distribution managing production allowed to deliver Our us our field-based renewal while new unique book. effectively model

approach consistent carrier one the cycles choice. our distribution of us reasons primary throughout pricing make is underwriting market partners Our of and to their

written strong to Our price new premiums, an overall premiums was pure by XX% premium were and stable business growth change exposure up strong attributable of retentions. driven which and X.X%, generally renewal growth renewal

renewal, XX%, business and X.X%. segment, Lines rate In was Commercial up X%, was exposure and rate counts highlighting XX% was were a up XX%, our and Across new of Lines, Commercial flagship and renewal turned in Personal growth excellent respectively. impact growth new exposure. Lines and exposure X.X% also of the E&S manageable

underlying profitability catastrophe year points. and us our X.X and operating combined the and maintain X with in top ROE allowed despite first year line of full increasing the income ratio assumption from our for strong ratio generate XX.X% importantly, line due guidance disciplined our underlying ratio; in and a was quarter There combined discipline proven positioned reasons renewal the lower and are well, losses underlying lower year-to-date. to property execution us rate and the continued the pure benefit three improved combined year-to-date, expense from non-catastrophe main expense Our to Most half investment points our to ratio has our XX% growth. an target for loss

reinsurance robust management a medium on risk focus management, strong but Weather underwriting prudent a risks. program, and including low hazard is we inherently have volatile, to aggregation predominant

significant target from at losses rates embedded level. pricing catastrophe of XX% target ROE at normalized are and given interest above investments, ratio should contribution or plans. Consequently, ROEs is combined a long-term in able to Our XX% a be we our generate our elevated assuming

including opportunities, profitability, a mass underlying and attractive to deploy Geographic personal for surplus in growth lower share and transitioning risk agency geographic existing capabilities, increasing states, expansion and capital. expansion. affluent us With our position in to and of of capital way lines expansion strong is a continue excess market portfolio we wallet share pursue lines to targeted

allowing process repeatable a and have successful approach opportunity. organic We that growth critical accelerate to us is this

of Maine for Lines state Lines expansion the Since XXXX, introduce XXXX, footprint next to plan growth followed over early by country. our West the are our to and Standard states in the X western we’ve added standard track X years. first X to X of Commercial the These premium Virginia to in targeted states on half new points X Commercial states contributed footprint. of We half XXXX.

Ultimately, of growth book. and most property line to write States. further we continue top United contiguous expansion in to plan our the drive standard This diversify commercial should lines

Our trend. pricing loss rate underwrite equal exceeding customer a enabled or same to time, increased. tools, distribution talent, pure to sophisticated achieved renewal past a our focus at over Selective. expected Throughout cycles best-in-class by At granular partner differentiates and consistently dozen retention years, strong ability we renewal level the levels experience relationships the

We auto continue our exposure achieving necessary standard to books. to price renewal and pure commercial by strengthen our lines the changes portfolio property and

a renewal XX.X%. pure quarter, increased with of up increased premium premium pure of XX.X% rate with renewal X.X%, the renewal total rate renewal exposure of increase In increase resulting in total resulting XX.X%. was commercial exposure was During of in property X.X%, auto, X.X%,

premium and in quarter, elevated well the with Excess view by catastrophe resulting losses quarter impacted quarterly combined as was growth to E&S excellent continued negatively XX% which we results. variability, lines underwriting perform in and in underlying breakeven surplus normal ratio. the an

well market to of elevated combined in this continue growth improvements profitable strategy However, quarter personalized our an advantage with by our pressure on driven losses auto and the segment. a margins. strong difficult catastrophe new It was and underwriting E&S and renewal take in personal ratio and opportunities us rates recent position

Personal written a this where Profitability be. Lines net off is XX% not to crease it base. in segment small grew needs

to necessary We of improve are profitability. target the That we executing profitability. a time reposition levels take steps will taking detailed said the plan it to reach as book,

At we values are as home, mark customer premium. recent discussed a succeed approximately price-sensitive feedback base to our and book base. our on where in-force quarters, can service product growing are better signs a distribution focusing coverage we affluent in us. are partners see who the half of a positive our transitioning We our long-term. capabilities early less customer believe positive We represents market believe hitting and mass and target customer giving their with we’ve us we with that over that our As the aligns service organizational

rate We are increasing to address focused challenges on segment. within this profitability

we first X% is accelerating the in quarters, target market. rate are and changes, greater which At third further file terms Directionally, restrict responsive New taking fourth and underwriting improve X% conditions quarter the to actions in in expect a of new quarter. business with we outside more to and the same renewal business meaningful time, increased the filings number and pricing. rate, in our compared more new to areas increases

is operating Selective Overall, from a strength. of position

support stable losses, differentiated have appetite and growth, and we disciplined well-established partners and to be continue and We distribution a and carrier with frequency severity liability the increased of underwriting profitability. market drive changes capability partners. to our the weather-related disrupted execution organizational relationships In our enhance by distribution capital for to a to

report. third our published sustainability we July, early In

trends, enhance our experiences heightened our organization’s As that highlights severity report processes frequency the sustainability. robust and management industry the risk

customers returns our value distribution Our and partners, which shareholders. bringing to employees, drives for strategy our includes

continue the to our our execution-oriented superior foster in and Ultimately, competitive financial years. confident are delivering strategy and growth. people and performance advantage the generated relationships and I culture drive enduring they have am most we’ve the recent we profitable

performance With more over in that, turn financial detail. to call our I will to review the Mark

Mark Wilcox

Thank full comments on underwriting year some position guidance. morning. John on good and and our will focus performance, our I investment you and capital my more providing detail

and so, to John’s in to a target XX% we have half XX.X% elevated catastrophe non-GAAP opening year. a like of doing operating XXXX, I’d reiterate are on track Before ROE Despite delivered the exceed this first we point. losses ROE,

While as achieve premium into and we income half the underlying wanted we year. was net second the underwriting to move underwriting growth, us where higher the quarter well be, profitability our second full strong position result investment year targets a to of not

in fully operating As year-to-date, pre-announced operating compared $X.XX period, EPS $X.XX, XX% year up non-GAAP we $X.XX the diluted quarter down $X.XX, July was XX, EPS prior of EPS was and non-GAAP fully EPS and the second of diluted to on and reported X%.

after-tax performance in quarter driven growth net Our income. by investment significant this was

operating of have delivered We income results flow in cash our fixed managing portfolio our income is breakeven work stable to money yield results. this essentially Despite rates, we portfolio investment been new environment, rate the actively a core income and this expected, X.X% that fixed quarter, book higher pretax putting underwriting higher ROE. meaningfully our benefiting increasing at as interest

the catastrophe of catastrophe active events on our double to of loss our combined individual There consolidated The retention. Midwest Coast, $XX was was impacting events ratio. ratio combined primarily treaty, the to No ultimate catastrophe our to single the footprint, net losses. net quarter resulted contributing This attach or storm $XX due quarter, our million expectations. enough has our XXX.X% in and which were million was $XXX largest an large to a in points East XX.X XX almost reinsurance PCS quarter. in losses million For

frequency-driven was quarter, for a at us. So clearly, GAAP it least

offset million claims adverse favorable development casualty the million elevated of $X we in to development on by loss on emersions workers’ inflation auto. reserve practice industry, each reviews points friends. Amid emerging favorable reserve of million compensation, the favorable X.X continue for combined quarter of economy and was $X.X or partially the higher in Net reserve development The top personal prior year $X.X our ratio. cost and full included stay in

cost X% we The approximately a X% a casualty. call, includes ratio reminder, property have a of XXXX, continued premium February in was was lower from combined and is profitable our year which X.X% XX% expense from X.X came this of the for and approximately which ratio, prior the as One loss well for underlying benefiting assumed in expense our improvement discipline. as from point quarter points growth strong period. the than As

we we our strategic and objectives. remain focused medium our ratio invest to ensuring appropriately longer on the lowering support expense Over term, while

X.X XXXX. by expense decreased in the lower an points points was year. part from the remaining a remaining points combined period points. non-GAAP we underlying the of ratio, the property the from improvement The X.X underlying XXXX. in year and with than to Year-to-date, quarter was The reported which non-GAAP losses, the second losses the driven improved same XX.X ratio, property last XX.X% of from current loss X.X in XX.X%, XX.X came loss accident within the in ratio XX% year-to-date which ratio compared of included net in in solid X.X is combined points half underlying points ratio line came first of improvement

which auto, postal on casualty loss remain year with plan the of have ratios increased. the we Underlying for exception

auto We personal expect for the to of the loss the year. remainder elevated remain ratio

Our that better-than-expected updated combined delivered of of we and year. our compared to outlook approximately cat primarily guidance XX% expense XX%. implies ex is the property improved the the have non-GAAP of of lower-than-expected an underlying ratio XXXX due original expectations This ratio first year for the ratio for to XX.X% losses for half combined

relates underwriting to year the performance the it XX.X% X.X X.X Commercial in like standing prior cat Insurance of combined solid highlight our from As XX.X%, segment, improved and combined a ratio points period. I’d an to underlying of ratio with losses despite points Lines,

percentage ratio points profitability points full points was from year points losses, combined lines X.X running by prior prior XXX.X% current reserve ratio While driven year ratio personal a with on than cat XX.X% year in first It development in of higher continued losses, disappointing the due the segment strong than of XX.X a an combined property non-GAAP perspective quarter pressure experienced last was XXX.X of cat combined of auto. X.X E&S a better year, to losses almost the and accident underwriting XX.X underlying XX clearly period. our and points

Returning to investments.

Our very positioned. portfolio remains well

June investments effective years. June and XX, in XX% with approximately of assets four with of in of were of an duration Risk as AA average our income and quarter. last As the portfolio portfolio rating the line an fixed XX, was of of minus short-term X.X% credit

been of X.X% opportunities at our year-end finding allocation the also and securities, now remaining of XX% taken at XX% yields our from peak. represent and quality income down rate underweight fixed decreasing portfolio, for high improve which advantage We’ve approximately and floating up credit risk liquidity the of the to have portfolio We to assets.

in higher provide This few we the new work floaters, As XX longer pared off the new contribution the start widening of this strong a years. net approximately driven for over million point, next XXX in points back in level at and and put year have relative overall while our the money locked last bit, over book for quarter year. yield X.XX%. a We XX we’ve see was rates we income. at last increases first duration have an XX% a unless to up our increase improving million, years. recent we income credit points or in more to yield basis a book quarter tapering by expect yield quarters higher a six investment targets. the in forward in fixed quality the ago, quarterly rates This money move stability to although adds to basis credit quarter of pretax At we $XX.X from enjoyed point X.X%, by ROE interest core investment managing basis $XXX of the to average our will After-tax spreads,

are income, up portfolio yield of on second $X $X.X from for was on investment The XX.X points Alternative X.X% a year investments, lag, one-quarter after-tax million translating of ago. which ROE million to healthy the a contribution. the from a reported generated after-tax total quarter,

Our GAAP and X.X% of statutory equity X.X% adjusted share billion extremely end. Book strong value as capital of with quarter dividends. per for of surplus $X.X billion up or and capital position is year this remains $X.X

$XXX remained X flow XX% XXXX. million June improving to strong to first cash the Operating months XX, through compared of

and at above $XXX long-term parent Our XX, June target investment cash company’s totaled position $XXX million million. of our

times XX.X%. surplus Debt-to-capital premium our due Net increased strong growth. at premiums written stable X.XX was to to to

to repurchase repurchase financial have not share strong $XX.X flexibility and support quarter, million remaining We initiatives. growth capacity we authorization. on strategic We any our shares our and during did the under execute of our significant have

an our We operations. expect strong within growth additional options approach insurance to capital our towards share to opportunistic attractive repurchases, growth take deploy to given organic core and

renewals access the of treaties, our E&S. loss completed Standard covered to XXXX, and Commercial X, Standard successfully Lines We Lines, July which Personal

new retention modest substantially XX%, the growth substantially deposit million a premium and by layers. increase increases, first the increased structure above Our million same of access exposure in was renewal growth all our million reflecting our business, driven as of for loss protection providing rate premium three very additional premium with rate reinstatement coverage business, casualty expiring treaty or treaty same casualty $X pure strong on the reinsurance coupled the and business, end $XX.X $XX subject a in a

retention of access million our our on to treaty, loss the property from portfolio $X to the to For increased first the the property million we layer cost retention the due $X keeping same. in strong growth and

in modeling portfolio property points attachment marginally million retention, the increasing benefit same Our quarterly it strong although volatility subsequent with remain the layers economic result of the resulted in limits from a expected coverage. our The and more will the for results. of in $XX

foster growing retention, maturity on increase or the Overall by rate increased risk-adjusted a deposit and premium decreased $X.X partially reflecting exposure. XX%, million offset

guidance. on an update with our conclude I’ll

our ratio increased XX.X% other accident up expectations points of as for of losses, follows: while combined year prior X no full X.X a we This assumes additional maintaining expectations catastrophe reserve losses year points GAAP XXXX, For including previously. from development. net catastrophe

does weighted and average tax shares make all income repurchases an million investment rate After in tax an XX%, for basis, items, income reflect including on million, of gains of net which authorization. $XXX may $XX approximately alternative other share XX% under from and tax we after-tax not for includes overall our of $XX investment a XX% diluted effective million effective net which any rate investments, of

for ask I’ll call to questions. open that, the operator With the

Operator

of from Piper first Paul the Instructions] Our [Operator comes Musson from line Sander. question

now Your open. is line

Paul Musson

thanks for morning, the Good call.

thought on it folks of well bit do little direction a bit as a be kind those on late. cost more in is. as be businesses. seems inflation underlying thoughts other It Just underlying the claim have to a property significant in would I of little going maybe different than there basis an fairly would

difference lines mix business you’ve you different good done something a along results? others there’s something or those give maybe So to from that those

John Marchioni

commentary. this Yes, and start add is some John. Mark good can certainly additional Paul morning, I’ll

focused commercial the picking run frequency whereas of a auto on that’s we’re and non-cat to above expected call with running to property a in line more underlying I basis, better it expected. if you’re better-than-expected personal regard with it’s So commercial case And bit property, a severity little expected on and little I damage, physical property the and E&S or both expected, I would we’re than generally are in whereas home think up -- and home -- standard that seeing property commercials, results, it above correctly. think really than the contribution auto

last year higher-than-expected two regards XXXX commercial had as point auto saw line, Now is remember We property one. responded was Number at that number really losses. what run property essentially which, we non-cap rate damage our to rate higher. into XXXX, to started expectation move we we the with and when lines the physical that meaningfully for incorporated the especially to

you been of several look over commercial the at E&S last increases. property plus the if what quarters, in exposure rates we’ve So terms achieving property and

for So QX. -- in was just QX, XX.X% all-in rate This was I in -- XX.X% property the the it commentary, XX% last this and exposure in about commercial year and think full prepared in is year. year,

run rate of the rate say the I by driven to in of primarily the So combination think pressures, property. and commercial we combining plus XXXX some and property planning it’s inflationary a all that E&S on of economic I out but would produce a better-than-expected And it’s exposure. saw based lines settling the then combination of result, in

Paul Musson

to be where directionally? it continuing Or thoughts pieces Great. sort that it are just managed changing there today? And of the I we other about? would there is Is can that guess be think it piece are well. the on ratio holding expense Any other

Mark Wilcox

continue give economies of Yes. us a clearly, the the E&S I we in segments seeing strong see to Well and expense the potential part really some is top for Standard strong scale Commercial improvement to so fixed managing additional forward. but growth, expenses, profitable you’re combination seeing to of ratio our especially extent of really of think moving And on that continues of discipline growth. that for opportunities line gains

growth make us Now but on-going will technology in we that investments to potential. continue also not that future think just geographic expansion said, we in give

squeeze expenses benefit long we’re to seeing expenses a that a benefit to just driver. So going the -- fixed but growth controlled is we’re of would with not that the that term, us of not big more part approach

Paul Musson

Fantastic. Well appreciate Thank the color. very I you much.

Mark Wilcox

you Thank Paul.

Operator

Thank you.

next line of Our the KBW. question from Li Jiang comes from

open. is now line Your

Jiang Li

guys. good Hi, questions. you taking morning Thank my for

Just details provide if the back. wondering you competitors turning any for Selective agents can as data pull coverage to small or property

So opportunity to like way great relationships and growth. distribution it premium Is quantify any seems directionally, enhance to a that? there add-on

Mark Wilcox

Yes.

our and -- a from underwriting a us this value is as our part package growing, as consistent certain history. about when think write We So that property. not a we’re of of consistent partner, We I we business ourselves perspective, think And basis. and a long to value And our on being a portion markets. that chase dislocated partner. includes agents just looking

and record of of have maximize that We’re in in. a market track growth looking experience to we the segments a proven lot

what is mix exposure line that see to classification you and a that we’re little renewal growth continues bit you’re business. and that portfolio you seeing price to mix showing and same on the property is continue the line a that our the seeing But the change business property writing. be that high-quality also line size But We relatively average we’re by mix more industry consistent. on impacting in new perspective, it’s are because change from to driving acquire opportunities accounts by new

guess we’re consistent our segments we’re us, are to on-going seeing of of and long underwriter. several continue market our the And I the the that a in saying to our So our of a long an is opportunities and growth philosophy. stick and continue years, growth really in a there we’re ahead be for strong partners our We and footprint underwrite growth and we’re with agency going which that from have way from history will will expansion, the coming existing knitting with existing next underwriting to geographic benefit perspective. over comfortable

Jiang Li

My Got second it, workers’ thank is on compensation. question you.

that you loss reported ratio points for comp behind So the any around drivers Or the any that? XX the more can of QX true-up details rose by workers’ has results? is provide on of basis

John Marchioni

On basis is for an pretty workers’ the comp, quarter-over-quarter underlying flat.

of continue It’s of down. down pricing have favorable -- full favorable would more say, impact quarter reasonably medical -- just it, of and you emergence that on of call six kind now, accident the leveled favorable that through if as mid-X% You about, the slightly out range line you a a CPI year, range. it’s has flattish, frequencies But mid-XX% first had about a and in look the X% had think little but I’ll see basis kind out first been the inflation, strip in about continue the the the relatively months an to be in to have talked we on year bit we’ve component QX. year at comp than been I running basis, the actually but development, you -- that the trends. workers’ when in loss in parts

inflation, physician a is bit the and of pharmaceutical. of comp, together, workers’ hospital are which But you an services, then is inflationary driving services still its exposure again, basis. running blend primary And medical year-over-year below the change drivers medical from if premium wage that two those rate little costs

Jiang Li

much Okay, for got so it. color. the Thank you

John Marchioni

for you questions. Thank the

Operator

Thank you.

America. Carter comes line of of Bank from Our Grace next question from the

line now open. Your is

Grace Carter

a bit We just seen pure in Hi, industry. commercial, had across it at little quarter-over-quarter. everyone. the Good rate I guess morning. looking the standard renewal decelerated

reported pretty sharp had acceleration. peers some Some

rate we ahead to environment accelerate a more ahead just the should of given lines? rest expect skew of or that that’s a if for getting the if that’s So versus -- loss property just maybe of if I was year. cost towards the sorry, casualty higher impact, a curious peers of And of environment matter mix the

John Marchioni

renewal that out, -- So -- and any would QX say wouldn’t in saw going XXXX QX point suggest from you acceleration I necessarily would call decelerating it relatively flattish. to we it from of our I the a But on X% sort view that’s I and I’ll to from loss with that in the call it’s way. basis. which think embedded make corresponds And we mid-X% rate our took X.X% pure updated we the really of loss point I trends, XXXX ratios. would to

story. look that get overall, to And QX, -- and So like If us XX%. been here of We excluding comp. pricing that’s It’s a no by to a remains think, the there’s line commercial it’s I I were tens constructive. of that consistent to meaningful a lot rate, line either there companies to from direction. report environment QX in know forward, workers’ standard movement point looking the in

million. So comp do it. $X.X on basis, trends a year-to-date excluding compares It X.X% X.X% about I’ll was of on that our XX%, loss casualty, and to

there. there’s favorable gap So a

a inflationary trends like remains But and We loss continue an overall, and and social say, accordingly. from always monitor both react I we would frequency do our constructive. pricing plan adjust accordingly severity perspective, to both economic the market and

remains up very retentions well. and rate to hold strong, Our continue our consistently

Grace Carter

and the caught as maybe is do obviously, requiring for mean, more last looking the mass the was just up to rate maybe personal mentioned getting and go pricing a But of you standard end there Thank year. of of had going need some to the the is curious, pricing to on catch the year. industry pricing I a for you’ve maybe relative lines? more at the industry I to that market industry than entire affluent bit you. behind significantly bit rest pricing I there And up this like and cause expected catch-up switching little personal you on think Or guess I lines, feel still of is little year last to previously the where year?

John Marchioni

think We Yes. No, up I needs And industry where catching to really focus. be terms up question. to think rate about in that the we think to be, don’t we to is. really about it where catching appreciate and of our the continues

bit driven the on out, affluent through quarter. We rates, have in because X% rate at to largely market. by we the that’s and highlight of you as of extremely to responsive a the react, filed -- middle transformation it going we little point that We were the approved to and was focus was impact the transition and slower new were business and

continue go We through see of that to to the expect higher balance the year.

we that at have our through in-flight go the as rate filed as And and look or be XXXX mid-teens. to we of either pricing I all new in the expect would we insight, renewal or whether And I think determine the or level question is of big all happens needs it rate that an will open trends. And whether to is go that what with XX for loss adequate higher.

how our targets. achieving we But again, think on is all based about this

personal pockets personal in a profitability parallels now proven to as our we’ve think approach lines. were to where and there’s address with where I regard lot are And with where of couple of years ability that’s E&S lines think right we to we exist, a with the they got a I ago. in

Grace Carter

you. Thank

John Marchioni

you Thank Grace.

Operator

Thank you.

next Markets. line from the Mike Zaremski comes of from BMO Capital question Our

Your open. is now line

Unidentified Analysts

This is question. Jack one [Ph] just had Mike. on I for

on reserve for payable of development Lines cost rates So loss including be Commercial many commentary would has Does details correlate reserve within rising or Any lines? on point trends helpful. declining social with you. development inflation been insurers, longer-tail that Thank Selective. data

John Marchioni

to commentary Let on trends, have Mark me I’ll relative then some add and loss development. start

prepared last trend it move regard our casualty we’ve was in that year, years, for loss over that X% at expected couple back to embedded for X% look X.X% included you continued Mark fully expected it comments, is to us property. is XXXX, prior picks. loss the cite in casualty, And every for higher for as we into with our loss of If trend. his as And

confidently do And about loss question feel I monitor view yes, that feel in casualty trends those think and And companies good built say we and would into is the say of loss about loss I year how picks that that we their picks. very feel their they continue to current effectively big can closely. they’ve we do like

our that’s that casualty, you largely we driven. that is point And made we where other The for out laid expectations incorporate trends. severity in when of particular, loss inflationary social views was trend your

forward to severity as say social our trends loss -- will have assumptions, to and what recent inflationary to as us our I we historical move accident we drove those we higher trend trends naturally So more continue go year that do. historic would evaluate forward and loss with continue we impacting in seen always

Mark Wilcox

add reserve only book the a the perspective, quarter to we estimate ultimate of course, perhaps development of our I’d from each is settle cost thing And claims. the best

had XX on years favorable consecutive of We reserve now. XX years development have going

the last compared to of lines. the a compensation workers’ of couple business years, growth some Over of other been of line less has

years, consistent, little than has emergence you quarter out. starting drag. that a we’ve increased which $X of was auto this trends reserve to the bit again prior favorably. We in little last represent still favorable I development, million seen $X the last albeit inventory. and The becoming And big of personal but a in proportion first look think we’ve it’s a when back by shown the of are a you of in it’s our that smaller reserves couple at level less So is million the years shift comp reserve favorable the seen pretty quarter year the of workers the quarter, trending if couple from

John Marchioni

or a approach it part and important an years an sure for time that we’ve last incorporated of quickly much years show considerations been appear as point inflationary impact more to development taken especially a to stable the severities, to don’t think X.X could what allow we has think -- that’s And frequencies little bit, other emergence. why has accident to itself, from perspective might age liability in general I I of the recent inflation, fairly while is make to severities social better so. and impact too we’ve react on what better-than-expected line the be social for a more And the always to

Unidentified Analysts

you. Thank

Operator

you, to call now you. speakers, the At this [Operator Instructions] Thank we back questions I John. you will no in Thank further time, queue. hand show over

John Marchioni

Well, free Brad questions. always, participation. for to any thank reach you. to you And us. nice joining as feel a with Thank appreciate all Have out additional We your day.

Operator

conference. all participating. you today’s concludes for Thank That

may You disconnect. now

Selective Insurance (SIGI) 3 Aug 232023 Q2 Earnings call transcript