Selective Insurance raises dividend 12% as underwriting improves

Selective Insurance Group tightened its underwriting results and handed shareholders a bigger dividend and a new buyback.

The property-casualty insurer reported diluted EPS of $2.11 and non-GAAP operating EPS of $2.37 for the third quarter, according to its earnings release filed with an 8-K on Thursday. Return on equity was 15.1%, and operating return on equity was 16.9%.

The combined ratio improved to 96.8% from 98.6% a year earlier, with catastrophe losses adding 5.4 points.

Shrinking premiums, rising investment income

Net premiums written fell 7%, including an 8% drop in Standard Commercial Lines, even as renewal pure price increases averaged 5.6%. After-tax net investment income rose 16% to $127 million.

Book value per share fell 5% from the prior quarter to $55.02, while adjusted book value per share rose 2% to $62.00.

Returning capital

The board raised the quarterly dividend 12% to $0.48 a share, the 13th consecutive annual increase, and authorized a new $200 million share repurchase program on top of $53 million remaining under the existing one. Selective repurchased $55 million of stock in the quarter.

By the numbers

• Diluted EPS: $2.11; operating EPS $2.37
• Combined ratio: 96.8%, vs. 98.6%
• Net premiums written: down 7%
• Quarterly dividend: $0.48, up 12%
• New buyback authorization: $200 million

Sources

1. Selective Insurance Group, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0000230557-26-000024

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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