Net Income of $1.31 per Diluted Common Share and Non-GAAP Operating Income1 of $1.33 per Diluted Common Share Return on Common Equity ("ROE") of 11.5% and Non-GAAP Operating ROE1 of 11.7% Selective's Quarterly Analyst Conference Call to be Held at 8:00 AM ET, on Thursday, May 2, 2024 In the first quarter of 2024: Net premiums written ("NPW") increased 16% compared to the first quarter of 2023; The GAAP combined ratio was 98.2%, compared to 95.7% in the first quarter of 2023; Commercial Lines renewal pure price increases averaged 7.6%, up 0.6 points from 7.0% in the first quarter of 2023; After-tax net investment income was $86 million, up 17% compared to the first quarter of 2023; Book value per common share was $46.17, up 2% from last quarter; and Adjusted book value per common share¹ was $50.97, up 2% from last quarter. BRANCHVILLE, N.J., May 1, 2024 /PRNewswire/ -- Selective Insurance Group, Inc. (NASDAQ:SIGI) reported financial results for the first quarter ended March 31, 2024, with net income per diluted common share of $1.31 and non-GAAP operating income1 per diluted common share of $1.33. For the quarter, Selective reported a combined ratio of 98.2%, including 3.3 points of unfavorable prior year casualty reserve development and 5.3 points of catastrophe losses. NPW grew 16% from a year ago, with strong top-line growth across all three insurance segments. After-tax net investment income was $86 million, up 17% from a year ago. Non-GAAP operating ROE1 was 11.7%. "Our organization is committed to disciplined underwriting and enterprise risk management. Our detailed planning and reserving, specific underwriting and pricing actions, and results monitoring process allow us to quickly identify and respond to risks, opportunities, and trends. This positions us as a stable market for our customers and distribution partners," said John J. Marchioni, Chairman, President and Chief Executive Officer. "During the quarter, we strengthened general liability reserves for recent accident years due to increased severities. We primarily attribute the elevated and uncertain loss trends to the impacts of social inflation, which we have discussed in recent quarters. Our fundamentals remain strong with a profitable combined ratio, average renewal pure price increase of 8.1%, and double-digit operating ROE in the quarter." "Our strong financial position allows us to continue executing profitable growth strategies across our insurance segments. We successfully launched Standard Commercial Lines in Maine and West Virginia in early April, and we expect Nevada, Washington, and Oregon to follow later this year. We believe our prospects for profitable growth within our existing appetite and operating states are excellent, complemented by continued geographic expansion," concluded Mr. Marchioni. Operating Highlights Consolidated Financial Results Quarter ended March 31, Change $ and shares in millions, except per share data 2024 2023 Net premiums written $     1,156.6 999.8 16 % Net premiums earned 1,050.9 902.3 16 Net investment income earned 107.8 91.5 18 Net realized and unrealized gains (losses), pre-tax (1.6) 3.3 (149) Total revenues 1,165.0 999.8 17 Net underwriting income (loss), after-tax 15.0 31.0 (51) Net investment income, after-tax 85.6 73.1 17 Net income available to common stockholders 80.2 90.3 (11) Non-GAAP operating income1 81.5 87.6 (7) Combined ratio 98.2 % 95.7 2.5 pts Loss and loss expense ratio 67.0 62.9 4.1 Underwriting expense ratio 30.9 32.6 (1.7) Dividends to policyholders ratio 0.3 0.2 0.1 Net catastrophe losses 5.3 pts 6.1 (0.8) Non-catastrophe property losses and loss expenses 16.3 16.4 (0.1) (Favorable) unfavorable prior year reserve development on casualty lines 3.3 (1.4) 4.7 Net income available to common stockholders per diluted common share $         1.31 1.48 (11) % Non-GAAP operating income per diluted common share1 1.33 1.44 (8) Weighted average diluted common shares 61.2 60.9 1 Book value per common share $       46.17 40.82 13 Adjusted book value per common share1 50.97 46.61 9 Overall Insurance Operations For the first quarter, overall NPW increased 16%, or $157 million, from a year ago, reflecting new business growth and effective management of our renewal portfolio. Average renewal pure price increased 8.1%, up 1.5 points from a year ago, with stable retention and increased exposure. Selective's 98.2% combined ratio in the quarter deteriorated 2.5 points from a year ago, primarily due to prior year casualty reserve development, partially offset by an improved expense ratio and lower catastrophe losses. Net unfavorable prior year casualty reserve development totaled $35 million, increasing the combined ratio by 3.3 points. A year ago, prior year casualty reserve development was a favorable $13 million, reducing the combined ratio by 1.4 points. The combined ratio, excluding net catastrophe losses and prior year reserve development on casualty lines, was 89.6%, 1.4 points better than a year ago. Overall, our insurance segments contributed 2.2 points of ROE in the first quarter of 2024. Standard Commercial Lines Segment For the first quarter, Standard Commercial Lines premiums (representing 80% of total NPW) grew 15% from a year ago. The premium growth reflected average renewal pure price increases of 7.6%, new business growth of 17%, strong exposure growth, and stable retention of 86%. The first quarter combined ratio was 98.8%, up 4.1 points compared to a year ago, primarily due to prior year casualty reserve development, partially offset by an improved expense ratio and lower catastrophe losses.   Prior year casualty reserve development in the quarter was an unfavorable $35 million, or 4.2 points, compared to $10 million, or 1.4 points, of favorable development a year ago. This quarter's prior year casualty reserve development included unfavorable general liability development of $50 million, primarily from increased severities in accident years 2020 through 2023, and favorable workers compensation development of $15 million. A year ago, workers compensation was the source of the favorable prior year casualty reserve development. The following table shows the variances relative to the 94.7% combined ratio a year ago: Standard Commercial Lines Segment Quarter ended March 31, Change $ in millions 2024 2023 Net premiums written $       931.7 813.3 15 % Net premiums earned 834.1 731.6 14 Combined ratio 98.8 % 94.7 4.1