SELECTIVE INSURANCE GROUP INC

Previous wording

The terms "Company," "we," "us," and "our" refer to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or the context otherwise requires. Certain statements in this Quarterly Report on Form 10-Q, including information incorporated by reference, are “forward-looking statements” defined in the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. In some cases, forward-looking statements include the words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” “continue,” or comparable terms. Our forward-looking statements are only predictions; we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason except as may be required by law.

Current wording

The terms "Company," "we," "us," and "our" refer to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or the context otherwise requires. Certain statements in this Quarterly Report on Form 10-Q, including information incorporated by reference, are “forward-looking statements” defined in the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. In some cases, forward-looking statements include the words "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "attribute," "confident," "strong," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely," "continue," or comparable terms. Our forward-looking statements are only predictions; we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason except as may be required by law.

Previous wording

We discuss the factors that could cause our actual results to differ materially from our projects, forecasts, or estimates in forward-looking statements in Item 1A. “Risk Factors.” in Part II. “Other Information” of this Form 10-Q. These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge at any time. We can neither predict these new risk factors nor assess their impact, if any, on our businesses or the extent to which any factor or combination of factors may cause actual results to differ materially from any forward-looking statements. Given these risks, uncertainties, and assumptions, the forward-looking events we discuss in this report might not occur.

Current wording

We discuss the factors that could cause our actual results to differ materially from our projections, forecasts, or estimates in forward-looking statements in Item 1A. "Risk Factors." in Part II. "Other Information" of this Form 10-Q. These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge at any time. We can neither predict these new risk factors nor assess their impact, if any, on our businesses or the extent to which any factor or combination of factors may cause actual results to differ materially from any forward-looking statements. Given these risks, uncertainties, and assumptions, the forward-looking events we discuss in this report might not occur.

Previous wording

Financial Highlights of Results for First Quarter 2024 and First Quarter 20231

Current wording

Financial Highlights of Results for Second Quarter and Six Months 2024 and Second Quarter and Six Months 20231

Previous wording

2 Non-GAAP operating income, non-GAAP operating income per diluted common share, and non-GAAP operating ROE are measures comparable to net income available to common stockholders, net income available to common stockholders per diluted common share, and ROE, respectively, but exclude after-tax net realized and unrealized gains and losses on investments included in net income. Adjusted book value per common share is a measure comparable to book value per common share, but excludes total after-tax unrealized gains and losses on investments included in accumulated other comprehensive (loss) income. These non-GAAP measures are important financial measures used by us, analysts, and investors because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized investment gains and losses on investments could distort the analysis of trends.

Current wording

2 Non-GAAP operating income (loss), non-GAAP operating income (loss) per diluted common share, and non-GAAP operating ROE are measures comparable to net income (loss) available to common stockholders, net income (loss) available to common stockholders per diluted common share, and ROE, respectively, but exclude after-tax net realized and unrealized gains and losses on investments included in net income (loss). Adjusted book value per common share is a measure comparable to book value per common share, but excludes total after-tax unrealized gains and losses on investments included in accumulated other comprehensive income (loss). These non-GAAP measures are important financial measures used by us, analysts, and investors because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized investment gains and losses on investments could distort the analysis of trends.

Previous wording

◦Achieving overall Standard Commercial Lines renewal pure price increases that reflect our current profitability and forward loss trend expectations;

Current wording

◦Achieving overall Standard Commercial Lines renewal pure price increases that reflect forward loss trend expectations. Our overall Standard Commercial Lines renewal pure price increase was 7.9% in Second Quarter 2024, up from 7.6% last quarter. In addition, our general liability renewal pure price increase was 7.6% in Second Quarter 2024, up from 6.5% last quarter, and 5.7% in the fourth quarter of 2023. We expect that our general liability pricing will further increase in the second half of 2024;

Previous wording

◦Expanding our geographic footprint. In April 2024, we added West Virginia and Maine to our footprint, now covering 32 states. Subject to regulatory approvals, we expect to add Nevada, Washington, and Oregon later this year, and Kansas, Montana, and Wyoming in 2025. Over time, we plan to expand our Standard Commercial Lines footprint into most of the contiguous U.S.

Current wording

◦Expanding our geographic footprint. In April 2024, we added West Virginia and Maine to our footprint, now covering 32 states. Subject to regulatory approvals, we expect to add Nevada, Washington, and Oregon later this year, with Kansas, Montana, and Wyoming to follow. Over time, we plan to expand our Standard Commercial Lines footprint to be near national.

Previous wording

◦Taking aggressive actions to improve the profitability of our Standard Personal Lines segment by:

Current wording

◦Taking actions to improve the profitability of our Standard Personal Lines segment by:

Previous wording

▪Prioritizing additional rate filings on a state-by-state basis and further refining our pricing factors. These filed rate increases began to take effect early in 2023, increasing in number and magnitude throughout the year, have continued into 2024, and are expected to continue throughout the year. We project our overall written renewal rate increase to be in excess of 20% for the full year.

Current wording

▪Prioritizing additional rate filings on a state-by-state basis and further refining our pricing factors. These filed rate increases began to take effect early in 2023, increasing in number and magnitude throughout 2023, have continued into 2024, and are expected to continue throughout the year. Our Standard Personal Lines renewal pure price increase was 20.7% in Second Quarter 2024, up from 14.3% in the first quarter of 2024, and 8.9% in the fourth quarter of 2023;

Previous wording

For 2024, we increased our expectation for the GAAP combined ratio reflecting unfavorable prior year casualty reserve development and current year loss cost increases in the first quarter, while maintaining other full-year expectations as follows:

Current wording

For 2024, we increased our expected GAAP combined ratio to 101.5%. The change reflects unfavorable prior year casualty reserve development, elevated catastrophe losses in the first half of the year, and increased current year loss costs. Full-year expectations are as follows:

Previous wording

•A GAAP combined ratio of 96.5%, up from prior guidance of 95.5%, including net catastrophe losses of 5.0 points. Our combined ratio estimate assumes no additional prior year casualty reserve development;

Current wording

•A GAAP combined ratio of 101.5%, up five points from our prior guidance of 96.5%. Our combined ratio estimate includes net catastrophe losses of 5.5 points, up from prior guidance of 5.0 points. Our combined ratio estimate assumes no additional prior year casualty reserve development;

Previous wording

•After-tax net investment income of $360 million that includes $32 million of after-tax net investment income from our alternative investments;

Current wording

•After-tax net investment income of $360 million that includes $32 million from alternative investments;

Previous wording

The NPW growth of 16% in First Quarter 2024 compared to First Quarter 2023 reflected (i) overall renewal pure price increases, and (ii) higher direct new business, as shown in the following table:

Current wording

The NPW growth of 13% in Second Quarter 2024 and 14% in Six Months 2024 compared to the same prior-year periods reflected (i) overall renewal pure price increases, and (ii) higher direct new business, as shown in the following table:

Previous wording

Our NPW growth in First Quarter 2024 also benefited from stable retention and exposure growth on renewal policies.

Current wording

Our NPW growth in Second Quarter 2024 and Six Months 2024 also benefited from stable retention and exposure growth on renewal policies.

Previous wording

Prior year casualty reserve development in First Quarter 2024 was an unfavorable $35.0 million, or 3.3 points, compared to $13.0 million, or 1.4 points, of favorable development in First Quarter 2023. This quarter's unfavorable development of $50.0 million in our general liability line of business was driven by increased severities in accident years 2020 through 2023, and was partially offset by favorable workers compensation development of $15.0 million. For additional qualitative discussion on prior year casualty reserve development, refer to the insurance segment sections below.

Current wording

The unfavorable prior year casualty reserve development of (i) $166.0 million in Second Quarter 2024 and $216.0 million in Six Months 2024 in our general liability line of business was driven by severities in accident years 2020 through 2023 that continued to show higher emergence than expected, and (ii) $10.0 million in Second Quarter 2024 in our commercial automobile line of business was driven by increased severities in accident year 2023. The unfavorable development in Six Months 2024 was partially offset by favorable workers compensation development of $15.0 million. For additional qualitative discussion on prior year casualty reserve development, refer to the insurance segment sections below.

Previous wording

In addition, the loss and loss expense ratio was impacted by an increase in current year casualty loss costs of 0.7 points in First Quarter 2024 compared to First Quarter 2023, primarily due to increased loss trend expectations in response to social inflationary impacts. Refer to the line of business sections below for qualitative discussion on the significant drivers of unfavorable prior year casualty reserve development and current year loss costs.

Current wording

In addition, the loss and loss expense ratio was adversely impacted by an increase in current year casualty loss costs of 2.1 points in Second Quarter 2024 and 1.3 points in Six Months 2024, compared to the same prior-year periods, primarily due to increased loss trend expectations and higher prior-year severity assumptions attributable to social inflationary impacts in our general liability line of business.

Previous wording

NPW growth of 15% in First Quarter 2024 compared to First Quarter 2023 reflected (i) renewal pure price increases, (ii) higher direct new business, and (iii) strong retention as shown in the table below. In addition, NPW growth benefited from strong exposure growth on renewal policies.

Current wording

NPW growth of 11% in Second Quarter 2024 and 13% in Six Months 2024 compared to the same prior-year periods reflected (i) renewal pure price increases, (ii) higher direct new business, and (iii) strong retention as shown in the table below. In addition, NPW growth benefited from strong exposure growth on renewal policies.

Previous wording

Prior year casualty reserve development in First Quarter 2024 was unfavorable by $35.0 million, or 4.2 points, compared to $10.0 million, or 1.4 points, of favorable development in First Quarter 2023. Despite increasing our overall expected loss trend in recent years, paid loss severities emerged more significantly than expected in First Quarter 2024. As a result, we recorded $50.0 million unfavorable prior year casualty reserve development in our general liability line of business, primarily driven by increased severities in accident years 2020 through 2023. This unfavorable development was partially offset by favorable workers compensation development of $15.0 million.

Current wording

Despite increasing our expected loss trend in recent years, loss severities continued to show higher emergence than expected in Second Quarter 2024 and Six Months 2024 in the general liability line of business. In response to these unfavorable trends, we recorded unfavorable prior year casualty reserve development in our general liability line of business of $166.0 million in Second Quarter 2024 and $216.0 million in Six Months 2024, primarily driven by increased severities in accident years 2020 through 2023. In addition, we recorded $10.0 million of unfavorable prior year casualty reserve development in our commercial automobile line of business in Second Quarter 2024 and Six Months 2024, primarily driven by increased severities in accident year 2023. The unfavorable development in Six Months 2024 was partially offset by $15.0 million of favorable workers compensation development.

Previous wording

NPW grew 13% in First Quarter 2024 compared to First Quarter 2023, benefiting from exposure growth on renewal policies, strong retention, renewal pure price increases, and higher direct new business.

Current wording

NPW grew 9% in Second Quarter 2024 and 11% in Six Months 2024 compared to the same prior-year periods, benefiting from renewal pure price increases, exposure growth on renewal policies, strong retention, and higher direct new business.

Previous wording

The combined ratio increased 21.9 points in First Quarter 2024 compared to First Quarter 2023, primarily driven by unfavorable prior year casualty reserve development as follows:

Current wording

The combined ratio increased 72.1 points in Second Quarter 2024 and 47.3 points in Six Months 2024 compared to the same prior-year periods, primarily driven by unfavorable prior year casualty reserve development as follows:

Previous wording

This line of business has experienced a long-term historical trend of meaningful severity increases, which have been partially offset by decreases in claim frequencies. The trend of lower frequencies has continued, while prior year severities have developed adversely, previously impacting the pre-pandemic period but now extending into the more recent accident years. We attribute the increased severities to elevated social inflation, which we see as an industry dynamic characterized by higher propensity for attorney representation and litigation, longer settlement times, and higher settlement values. Certain jurisdictions with expanded liability theories and higher damage awards pose heightened challenges. We are closely monitoring these jurisdictions and the broader trends across our business.

Current wording

This line of business has experienced a long-term historical trend of meaningful severity increases, which have been partially offset by decreases in claim frequencies. Prior-year severities have developed adversely, previously impacting the pre-pandemic period but now extending into the more recent accident years. We attribute the increased severities to elevated social inflation, which we see as an industry dynamic characterized by higher propensity for attorney representation and litigation, longer settlement times, and higher settlement values. Certain jurisdictions with expanded liability theories and higher damage awards pose heightened challenges. We are closely monitoring these jurisdictions and the broader trends across our business.

Previous wording

The unfavorable prior year casualty reserve development in First Quarter 2024 was primarily due to these social inflationary impacts. In response to social inflationary impacts, we have been embedding higher severity assumptions in our initial loss ratio estimates in recent years, which more recently are materializing in actual paid results. Despite planning for higher expected loss trends, claim emergence on paid losses in First Quarter 2024 exceeded our expectations and drove the unfavorable prior year development of $50.0 million, primarily in accident years 2020 through 2023. There was no prior year casualty reserve development in First Quarter 2023.

Current wording

The unfavorable prior year casualty reserve development in Second Quarter 2024 and Six Months 2024 was primarily due to the impact of social inflation, which resulted in higher severity assumptions embedded in our initial loss ratio estimates in recent years. Despite planning for higher expected loss trends, claim emergence in Second Quarter 2024 and Six Months 2024 continued to exceed our expectations. In response to these continued unfavorable trends, we recorded unfavorable prior year development of $166.0 million in Second Quarter 2024 and $216.0 million in Six Months 2024, primarily in accident years 2020 through 2023. There was no prior year casualty reserve development in Second Quarter 2023 and Six Months 2023.

Previous wording

Additionally, the combined ratio was impacted by an increase in current year casualty loss costs of 4.5 points in First Quarter 2024 compared to First Quarter 2023, primarily driven by an increase to our loss trend expectations in response to increases in social inflationary impacts.

Current wording

Additionally, the combined ratio was adversely impacted by an increase in current year casualty loss costs of 13.6 points in Second Quarter 2024 and 9.0 points in Six Months 2024 compared to the same prior-year periods, primarily driven by an increase to our loss trend expectations and higher prior-year severity assumptions attributable to increases in social inflationary impacts.

Previous wording

We believe that social inflation and elevated loss trends are an industry dynamic, and may lead to an acceleration of rate increases in this line of business. During First Quarter 2024, our renewal pure price increase in this line of business was 6.5%, up from 5.7% last quarter, and 5.4% for full-year 2023. We expect increases in our general liability pricing to accelerate in the coming months.

Current wording

We believe that social inflation and elevated loss trends are an industry dynamic, and may lead to an acceleration of rate increases in this line of business for the industry and us. Our renewal pure price increase in this line of business was 7.6% in Second Quarter 2024, up from 6.5% last quarter, and 5.7% for the fourth quarter of 2023. We expect increases in our general liability pricing to accelerate in the coming months.

Previous wording

NPW grew 19% in First Quarter 2024 compared to First Quarter 2023, benefiting from renewal pure price increases, higher direct new business, and strong retention. This higher new business and strong retention contributed to an 8% growth of in-force vehicle counts as of March 31, 2024 compared to March 31, 2023.

Current wording

NPW grew 16% in Second Quarter 2024 and 17% in Six Months 2024 compared to the same prior-year periods, benefiting from renewal pure price increases, higher direct new business, and strong retention. This higher new business and strong retention contributed to an 8% growth of in-force vehicle counts as of June 30, 2024 compared to June 30, 2023.

Previous wording

First Quarter 2024 experienced lower non-catastrophe property loss and loss expenses than First Quarter 2023, primarily due to lower claim frequencies.

Current wording

Non-catastrophe property loss and loss expenses in Second Quarter 2024 and Six Months 2024 were lower compared to the same prior-year periods, primarily due to lower claim frequencies.

Previous wording

The combined ratio decrease in First Quarter 2024 also reflected a decrease in current year casualty loss costs of 1.3 points, primarily driven by the earned impact of higher renewal pure price increases highlighted above.

Current wording

•Decreases in current year casualty loss costs of 1.3 points in Second Quarter 2024 and 1.2 points in Six Months 2024 compared to the same prior-year periods, primarily driven by the earned impact of higher renewal pure price increases in both periods as highlighted above; and

Previous wording

NPW grew 15% in First Quarter 2024 compared to First Quarter 2023, benefiting from renewal pure price increases, strong retention, exposure growth on renewal policies, and higher direct new business.

Current wording

NPW grew 17% in Second Quarter 2024 and 16% in Six Months 2024 compared to the same prior-year periods, benefiting from renewal pure price increases, strong retention, exposure growth on renewal policies, and higher direct new business.

Previous wording

We experienced higher non-catastrophe property loss and loss expense ratios in First Quarter 2024 compared to First Quarter 2023. This change continues to reflect the variability from period to period that is normally associated with the commercial property line of business. We continue to manage our long-term profitability through (i) price increases, and (ii) targeted underwriting actions, including an ongoing focus on appropriate policy terms and conditions and achieving accurate insurance to value ratios.

Current wording

Offsetting the favorable combined ratio drivers mentioned above, was higher non-catastrophe property loss and loss expense ratios in Second Quarter 2024 and Six Months 2024 compared to the same prior-year periods. This change continues to reflect the variability from period to period that is normally associated with the commercial property line of business. We continue to manage our long-term profitability through (i) price increases, and (ii) targeted underwriting actions, including an ongoing focus on appropriate policy terms and conditions and achieving accurate insurance-to-value ratios.

Previous wording

The combined ratio decreased 3.4 points in First Quarter 2024 compared to First Quarter 2023, primarily driven by favorable prior year casualty reserve development as follows:

Current wording

The combined ratio increased 9.5 points in Second Quarter 2024 and 2.7 points in Six Months 2024 compared to the same prior-year periods, primarily driven by reductions in favorable prior year casualty reserve development as follows:

Previous wording

The favorable prior year casualty reserve development in First Quarter 2024 was primarily due to lower loss severities in accident years 2021 and prior. The favorable prior year casualty reserve development in First Quarter 2023 was primarily due to improved loss severities in accident years 2020 and prior.

Current wording

The favorable prior year casualty reserve development in Six Months 2024 was primarily due to lower loss severities in accident years 2021 and prior. The favorable prior year casualty reserve development in Second Quarter 2023 and Six Months 2023 was primarily due to improved loss severities in accident years 2020 and prior.

Previous wording

Offsetting the combined ratio decreases mentioned above, the First Quarter 2024 combined ratio was adversely impacted by an increase in current year casualty loss costs of 3.5 points, primarily driven by the negative rate environment that has been impacting this line for several years.

Current wording

In addition, the combined ratio was adversely impacted by an increase in current year casualty loss costs of 2.8 points in Second Quarter 2024 and 3.1 points in Six Months 2024, primarily driven by the negative rate environment that has been impacting this line for several years.

Previous wording

NPW increased 17% in First Quarter 2024 compared to First Quarter 2023, due to renewal pure price increases, exposure growth on renewal policies, and higher average policy sizes from our mass affluent market strategy, partially offset by reductions in direct new business and retention. New policy counts were down 37% in First Quarter 2024 compared to First Quarter 2023 These reductions were anticipated given the level of rate increases we are implementing as part of our overall profit improvement plan.

Current wording

NPW increased 6% in Second Quarter 2024 and 11% in Six Months 2024 compared to the same prior-year periods, due to renewal pure price increases, exposure growth on renewal policies, and higher average policy sizes from our mass affluent market strategy, partially offset by reductions in direct new business and retention. New policy counts were down 48% in Second Quarter 2024 and 43% in Six Months 2024 compared to the same prior-year periods. These reductions were anticipated given the level of rate increases we are implementing as part of our overall profit improvement plan.

Previous wording

We are taking aggressive actions to improve the profitability of this business by continuing to prioritize additional rate filings on a state-by-state basis to mitigate inflationary impacts, and refining our pricing factors. These filed rate increases began to take effect early in 2023, increasing in number and magnitude throughout the year, have continued into 2024, and are expected to continue throughout the year. Our 14.3% renewal pure price increase achieved in First Quarter 2024 met our expectations, and keeps us on track to achieve an increase in excess of 20% for the full year. In addition, we are seeking to improve profitability within our homeowners' line of business by introducing new policy terms and conditions, including (i) coverage for older roofs based on a schedule of factors rather than replacement cost, and (ii) implementing mandatory wind/hail deductibles in states exposed to severe convective storms, where allowed by law.

Current wording

We are taking aggressive actions to improve the profitability of this business by continuing to prioritize additional rate filings on a state-by-state basis to mitigate inflationary impacts, and refining our pricing factors. These filed rate increases began to take effect early in 2023, increasing in number and magnitude throughout 2023, have continued into 2024, and are expected to continue throughout the year. We achieved a 20.7% renewal pure price increase in Second Quarter 2024, a direct outcome of these actions. In addition, we are seeking to further improve profitability within our homeowners' line of business by introducing new policy terms and conditions, including (i) coverage for older roofs based on a schedule of factors rather than replacement cost, and (ii) implementing mandatory wind/hail deductibles in states exposed to severe convective storms, where allowed by law.

Previous wording

We experienced $5.0 million of favorable prior year casualty reserve development on our homeowners line of business in First Quarter 2024, primarily due to lower loss severities in accident years 2021 and prior. This favorable development was offset by $5.0 million of unfavorable prior year casualty reserve development on our personal automobile line of business in First Quarter 2024, primarily driven by increased loss severities in accident years 2021 through 2023. The unfavorable prior year casualty reserve development in First Quarter 2023 was primarily due to increased loss severities in accident year 2022 on our personal automobile line of business.

Current wording

In Six Months 2024, we experienced (i) favorable prior year casualty reserve development on our homeowners line of business of $5.0 million, primarily due to lower loss severities in accident years 2021 and prior, offset by (ii) $5.0 million of unfavorable prior year casualty reserve development on our personal automobile line of business, primarily driven by increased loss severities in accident years 2021 through 2023. The unfavorable prior year casualty reserve development in Second Quarter 2023 and Six Months 2023 was primarily due to increased loss severities in accident year 2022 on our personal automobile line of business.

Previous wording

In addition, the loss and loss expense ratio was adversely impacted by an increase in current year casualty loss costs of 1.8 points in First Quarter 2024 compared to First Quarter 2023, primarily due to an expected increase in claim frequencies in the current year.

Current wording

The loss and loss expense ratio was also adversely impacted by a 1.0-point increase in current year casualty loss costs in Six Months 2024 compared to Six Months 2023, primarily due to an expected increase in automobile claim frequencies in the current year.

Previous wording

The underwriting expense ratio decreased 2.7 points in First Quarter 2024 compared to First Quarter 2023, primarily due to premium growth outpacing the growth in underwriting expenses.

Current wording

The underwriting expense ratio decreased 2.7 points in Second Quarter 2024 and 2.6 points in Six Months 2024 compared to the same prior-year periods, primarily due to a decrease in profit-based compensation to our employees and distribution partners, coupled with premium growth outpacing the growth in underwriting expenses in both periods.

Previous wording

NPW grew 24% in First Quarter 2024 compared to First Quarter 2023, reflecting renewal pure price increases and higher direct new business as shown in the table below. In addition, NPW growth in First Quarter 2024 benefited from both property and casualty exposure growth on renewal policies, driven by increased property values, as well as higher rate per exposure.

Current wording

NPW grew 39% in Second Quarter 2024 and 31% in Six Months 2024 compared to the same prior-year periods, reflecting renewal pure price increases and higher direct new business as shown in the table below. In addition, NPW growth in Second Quarter 2024 and Six Months 2024 benefited from both property and casualty exposure growth on renewal policies, driven by higher rate per exposure and higher new business production. In addition, our property lines exposure growth on renewal policies was reflective of increased property values.

Previous wording

While the frequency of wind and thunderstorm events remained largely consistent, the severity of these events was lower in First Quarter 2024 compared to First Quarter 2023, resulting in a decrease in net catastrophe losses.

Current wording

While the frequency of wind and thunderstorm events remained largely consistent, the severity of these events was lower in Second Quarter 2024 and Six Months 2024 compared to the same prior-year periods, resulting in a decrease in net catastrophe losses in both periods.

Previous wording

In addition, the loss and loss expense ratio was favorably impacted by a decrease in current year casualty loss costs of 2.3 points in First Quarter 2024 compared to First Quarter 2023, primarily due to the mix of business between our property and casualty lines of business. Our E&S property line of business, which has a lower loss ratio compared to our E&S casualty line of business, represented a larger portion of this segment in First Quarter 2024 compared to First Quarter 2023, resulting in a lower blended current year loss cost in First Quarter 2024.

Current wording

In addition, the loss and loss expense ratio was favorably impacted by a decrease in current year casualty loss costs of 3.1 points in Second Quarter 2024 and 2.7 points in Six Months 2024 compared to the same prior-year periods, primarily due to the mix of business between our property and casualty lines of business. Our E&S property line of business, which has a lower loss ratio compared to our E&S casualty line of business, represented a larger portion of this segment in Second Quarter 2024 and Six

Previous wording

We experienced higher non-catastrophe property loss and loss expenses in First Quarter 2024 compared to First Quarter 2023, primarily due to several large fires, reflecting the continued variability from period to period that is normally associated with our E&S property line of business.

Current wording

•Higher non-catastrophe property loss and loss expenses in Second Quarter 2024 and Six Months 2024 compared to the same prior-year periods, primarily due to several large fires, reflecting the continued variability from period to period that is normally associated with our E&S property line of business; and