SELECTIVE INSURANCE GROUP INC
For the period ended Sep 30, 2026. Filed Oct 23, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 23, 2026
SIGI$99.44-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-24.
0000230557-26-000020
Forward-Looking StatementsIntroductionCritical Accounting Policies and EstimatesFinancial Highlights of Results for Second Quarter June 30, 2026 and 2025Results of Operations and Related Information by SegmentIncome TaxesLiquidity and Capital ResourcesRatingsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-23.
0000230557-26-000027
Forward-Looking StatementsIntroductionCritical Accounting Policies and EstimatesFinancial Highlights of Results for Third Quarter and Nine Months 2026 and 2025Results of Operations and Related Information by SegmentIncome TaxesLiquidity and Capital ResourcesRatingsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 165 previous paragraphs and 168 current paragraphs.
92 unchanged; 57 reworded; 19 added; 15 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 38 previous and 38 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
NPE decreased 2% in Third Quarter 2026 and increased 2% in Nine Months 2026 compared to the same prior-year periods. The Third Quarter 2026 decline reflected the earned impact of lower NPW this year, while the Nine Months 2026 increase reflected growth in 2025.
Current report
The loss and loss expense ratio improved in both Third Quarter 2026 and Nine Months 2026 compared to the prior-year periods. There was no prior year casualty reserve development recorded this year, compared to unfavorable development in both the quarter and year-to-date periods last year. Current year casualty loss costs were lower in Third Quarter 2026 compared to Third Quarter 2025 reflecting the earned impact of the rate and underwriting actions during the quarter, while in Nine Months 2026, this improvement was offset by the increased loss trend assumptions that we recognized over the course of 2025 that are included in our expectations for 2026. In both Third Quarter 2026 and Nine Months 2026, property losses were higher compared to the prior-year periods due to normal variability in these losses.
Current report
NPE decreased 2% in Third Quarter 2026 and increased 2% in Nine Months 2026 compared to the same prior-year periods. The Third Quarter 2026 decline reflected the earned impact of lower NPW this year, while the Nine Months 2026 increase reflected NPW growth last year.
Current report
Our underwriting expense ratio increased 1.6 points in Third Quarter 2026 compared to Third Quarter 2025, as lower NPE has put pressure on our underwriting expense ratio.
Current report
NPE decreased 3% in Third Quarter 2026 and increased 3% in Nine Months 2026 compared to the same prior-year periods. The Third Quarter 2026 decline reflected the earned impact of lower NPW this year, while the Nine Months 2026 increase reflected NPW growth last year.
Current report
The combined ratio was flat in Third Quarter 2026 and decreased 0.6 points in Nine Months 2026 compared to the same prior-year periods, driven by a lower loss and loss expense ratio partially offset by higher underwriting expenses. The components of the loss and loss expense ratio follow:
Current report
The underwriting expense ratio increased 2.5 points in Third Quarter 2026 compared to Third Quarter 2025, and 0.9 points in Nine Months 2026 compared to Nine Months 2025, as lower NPE has put pressure on our underwriting expense ratio.
Current report
NPE decreased 4% in Third Quarter 2026 and slightly increased in Nine Months 2026 compared to the same prior-year periods. The Third Quarter 2026 decline reflected the earned impact of lower NPW this year, while the Nine Months 2026 increase reflected NPW growth last year.
Current report
The combined ratio improved 15.6 points in Third Quarter 2026 and 5.5 points in Nine Months 2026 compared to the same prior-year periods, and included the following:
Current report
The combined ratio decreased 5.0 points in Third Quarter 2026 and 5.6 points in Nine Months 2026 compared to the same prior-year periods and included the following:
Current report
The loss and loss expense ratio decreased 10.8 points in Third Quarter 2026 and 4.4 points in Nine Months 2026 compared to the same prior-year periods. The absence of unfavorable prior year casualty reserve development in the 2026 periods contributed 4.9 points to this variance for the quarter and 3.3 points for the year-to-date period. Prior year casualty reserve development was as follows:
Current report
Lower non-catastrophe property losses and current year casualty loss costs reduced the loss and loss expense ratio in Third Quarter 2026 and Nine Months 2026 compared to the same prior-year periods. The decrease in non-catastrophe property losses was primarily due to normal period-to-period variability associated with such losses. These amounts were partially offset by higher net catastrophe losses compared to the same prior-year periods due to higher frequency and severity of weather-related catastrophe events impacting our footprint.
Current report
Our underwriting expense ratio increased 4.0 points and 1.6 points in Third Quarter 2026 and Nine Months 2026, respectively, compared to the prior-year periods, as lower NPE has put pressure on our underwriting expense ratio.
Current report
The loss and loss expense ratio increased 3.5 points in Nine Months 2026 compared to Nine Months 2025. In Nine Months 2026, higher current year casualty loss costs and non-catastrophe property losses were partially offset by lower net catastrophe losses compared to Nine Months 2025, which included losses from the California Palisades Fire that impacted the first quarter of 2025.
Current report
In October 2025, the Company announced that its Board of Directors authorized a share repurchase program under which the Company may repurchase issued and outstanding shares of common stock up to $200 million, exclusive of any excise tax impact. During Nine Months 2026, we repurchased 1,300,663 shares of our common stock for $116.9 million, excluding commissions paid and estimated excise tax. We had $53.1 million of remaining capacity under that program as of September 30, 2026.
Current report
On October 22, 2026, the Company announced that its Board of Directors authorized a new share repurchase program under which the Company may repurchase issued and outstanding shares of common stock up to $200 million, exclusive of any excise tax impact, bringing the total available for repurchases to $253.1 million. This new program is effective as of immediately following the completion of the repurchases authorized under the prior stock repurchase program and has no expiration date.
Current report
On September 29, 2026, S&P affirmed our “A” rating with a “stable” outlook. In taking this rating action, S&P cited our (i) strong balance sheet and track record of disciplined loss reserve management and (ii) improving operating performance through targeted pricing, business mix adjustments, and enhanced risk segmentation.
Current report
On October 15, 2026, Moody’s affirmed our “A2” rating with a “stable” outlook. In taking this rating action, Moody’s cited our (i) solid regional franchise focused on small-to-midsize commercial accounts, (ii) strong independent agency relationships, (iii) long record of underwriting profitability, and (iv) high-quality investment portfolio.
Removed paragraphs (15)
Previous report
Growth in NPE of 2% in Second Quarter 2026 and 4% in Six Months 2026 compared to the same prior-year periods is decelerating as the impact of lower NPW is materializing through the earnings process.
Previous report
The loss and loss expense ratio decreased 2.1 points in Second Quarter 2026 compared to Second Quarter 2025, driven by (i) lower net catastrophe and non-catastrophe property losses reflecting less severe wind and convective storms impacting our footprint and (ii) no prior year casualty reserve development in Second Quarter 2026, compared to 3.8 points of unfavorable prior year casualty reserve development in the year-ago quarter. These items were partially offset by higher current year casualty loss costs.
Previous report
Current year casualty loss costs were higher in Second Quarter 2026 and Six Months 2026 compared to the same prior-year periods, driven by elevated commercial automobile claim frequencies in the first half of the year and the increased loss trend assumptions that we recognized over the course of 2025 that are included in our expectations for 2026.
Previous report
Growth in NPE of 3% in Second Quarter 2026 and 4% in Six Months 2026 compared to the same prior-year periods is decelerating as the impact of lower NPW is materializing through the earnings process.
Previous report
Growth in NPE of 4% in Second Quarter 2026 and 6 % in Six Months 2026 is decelerating as the impact of lower NPW in 2026 is materializing through the earnings process.
Previous report
The combined ratio decreased 4.0 points in Second Quarter 2026 and 1.0 in Six Months 2026 compared to the same prior-year periods, primarily driven by the following:
Previous report
Growth in NPE of 1% in Second Quarter 2026 and 3% in Six Months 2026 compared to the same prior-year periods is decelerating as the impact of lower NPW in 2026 is materializing through the earnings process.
Previous report
The combined ratio decreased 1.1 points in Second Quarter 2026 and 0.1 points in Six Months 2026 compared to the same prior-year periods, and included the following:
Previous report
2 n/a: not applicable.
Previous report
The combined ratio decreased 7.0 points in Second Quarter 2026 and 5.8 points in Six Months 2026 compared to the same prior-year periods and included the following:
Previous report
The loss and loss expense ratio increased 2.4 points in Second Quarter 2026 compared to Second Quarter 2025, primarily driven by higher non-catastrophe losses due to normal period-to-period variability of such losses. Non-catastrophe losses were partially offset by net catastrophe losses that were lower in Second Quarter 2026 compared to Second Quarter 2025 due to lower frequency and severity of weather-related catastrophe events this year compared to last year.
Previous report
The 1.3-point decrease in the loss and loss expense ratio in Six Months 2026 compared to Six Months 2025 wasdriven primarily by the absence of prior year casualty reserve development as illustrated in the table below:
Previous report
Underwriting Expenses
Previous report
During Six Months 2026, we repurchased 713,434 shares of our common stock under our existing share repurchase program for $61.9 million, excluding commissions paid and estimated excise tax. We had $108.1 million of remaining capacity under our share repurchase program as of June 30, 2026. For additional information on this share repurchase program, refer to Note 17. "Equity" in Item 8. "Financial Statements and Supplementary Data." of our 2025 Annual Report.
Reworded paragraphs (57)
Previous wording
Forward‑looking statements include our expectations, intentions, beliefs, projections, estimates, or forecasts regarding future events or financial performance. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, activity levels, or performance to differ materially from those expressed or implied in the forward‑looking statements. In some cases, forward‑looking statements may be identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “believe,” “intend,” “estimate,” “project,” “predict,” “potential,” “pro forma,” “seek,” “target,” “continue,” or similar terms.
Current wording
Forward‑looking statements include our expectations, intentions, beliefs, projections, estimates, or forecasts regarding future events or financial performance. In some cases, forward‑looking statements may be identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “believe,” “intend,” “estimate,” “project,” “predict,” “potential,” “pro forma,” “seek,” “target,” “continue,” “outlook,” “guidance,” “forecast,” “goal,” “likely,” or the negative of such terms or other variations or similar expressions.
Previous wording
We discuss factors that could cause actual results to differ materially from those expressed in forward‑looking statements in Item 1A, “Risk Factors,” of this Form 10‑Q. These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors may emerge at any time. We cannot predict these new factors, their potential impact on our business, or the extent to which any factor – or combination of factors – may cause actual results to differ materially from those expressed in forward‑looking statements. In light of these risks, uncertainties, and assumptions, the forward‑looking events discussed in this report may not occur.
Current wording
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, activity levels, or performance to differ materially from those expressed or implied in the forward‑looking statements. We discuss factors that could cause actual results to differ materially from those expressed in forward‑looking statements in Part I, Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in our subsequent reports and filings with the United States (“U.S.”) Securities and Exchange Commission (“SEC”). These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors may emerge at any time. We cannot predict these new factors, their potential impact on our business, or the extent to which any factor – or combination of factors – may cause actual results to differ materially from those expressed in forward‑looking statements.
Previous wording
Forward‑looking statements are predictions only, and we cannot guarantee that the expectations expressed in such statements will prove correct. We undertake no obligation to publicly update or revise any forward‑looking statements, except as required by law.
Current wording
Forward-looking statements are predictions based on the Company’s current expectations and assumptions regarding future events. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance on them. Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward‑looking statements, except as may be required by applicable law.
Previous wording
The following is Management’s Discussion and Analysis ("MD&A") of our financial condition and consolidated results of operations, including an evaluation of the amounts and certainty of cash flows from operations and outside sources, trends, and uncertainties that may have a material impact in future periods. Investors should read the MD&A in conjunction with Item 1. "Financial Statements." of this Form 10-Q and the consolidated financial statements in our 2025 Annual Report filed with the United States ("U.S.") Securities and Exchange Commission.
Current wording
The following is Management’s Discussion and Analysis (“MD&A”) of our financial condition and consolidated results of operations, including an evaluation of the amounts and certainty of cash flows from operations and outside sources, trends, and uncertainties that may have a material impact in future periods. Investors should read the MD&A in conjunction with Item 1. “Financial Statements.” of this Form 10-Q and the consolidated financial statements in our 2025 Annual Report filed with the SEC.
Previous wording
•Financial Highlights of Results for the second quarters ended June 30, 2026 ("Second Quarter 2026") and June 30, 2025 ("Second Quarter 2025"); and the six-month periods ended June 30, 2026 ("Six Months 2026") and June 30, 2025 ("Six Months 2025")
Current wording
•Financial Highlights of Results for the third quarters ended September 30, 2026 (“Third Quarter 2026”) and September 30, 2025 (“Third Quarter 2025”); and the nine-month periods ended September 30, 2026 (“Nine Months 2026”) and September 30, 2025 (“Nine Months 2025”)
Previous wording
Financial Highlights of Results for Second Quarter and Six Months 2026 and Second Quarter and Six Months 20251
Current wording
Financial Highlights of Results for Third Quarter and Nine Months 2026 and Third Quarter and Nine Months 20251
Previous wording
In Second Quarter 2026, we delivered an ROE of 14.8% and a non-GAAP operating ROE of 13.7%, higher by 4.1 points and 3.4 points, respectively, compared to Second Quarter 2025. Improved underwriting results complemented strong after-tax investment income of $119 million. Our overall combined ratio of 98.0% for Second Quarter 2026 was 2.2 points better than 100.2% in Second Quarter 2025, primarily driven by (i) lower catastrophe and non-catastrophe property losses and (ii) no prior year casualty reserve development in any segment or line of business in Second Quarter 2026, compared to 3.8 points of unfavorable prior year casualty reserve development a year ago. These items were partially offset by 3.4 points of higher current year casualty loss costs. All three insurance segments profitably contributed to the 2.3 points of ROE from insurance operations in Second Quarter 2026, which was up 2.5 points from the prior-year quarter, primarily driven by improvement in our standard commercial lines segment.
Current wording
In Third Quarter 2026, we delivered an ROE of 15.1% and a non-GAAP operating ROE of 16.9%, higher by 1.1 points and 3.7 points, respectively, compared to Third Quarter 2025. Improved underwriting results complemented strong after-tax net investment income of $127 million, which was up 16% from a year ago. The overall combined ratio of 96.8% for Third Quarter 2026 was 1.8 points better than 98.6% in Third Quarter 2025 and reflected a lower loss and loss expense ratio, partially offset by higher underwriting expenses. There was no prior year casualty reserve development in any segment or line of business in the quarter. Total insurance operations contributed 3.5 points of ROE in Third Quarter 2026, a 1.9-point increase from the prior-year quarter, primarily driven by improvement in Standard Commercial Lines.
Previous wording
On a year-to-date basis, our 13.0% ROE and 12.8% operating ROE were both higher than the 12.5% and 12.3%, respectively, generated in Six Months 2025. Stronger net investment income in Six Months 2026 drove the improvement.
Current wording
On a year-to-date basis, our 13.8% ROE and 14.3%operating ROE were both higher than the 13.0% and 12.6%, respectively, generated in Nine Months 2025. Similar to the quarter, strong net investment income and underwriting performance in Nine Months 2026 drove the improvement.
Previous wording
In Second Quarter 2026, we marked our eighth consecutive quarter of double-digit operating returns with an operating ROE of 13.7% and returned $58 million to common stockholders through regular dividends and opportunistic share repurchases, reinforcing our commitment to delivering long-term value. As Selective celebrated its 100th anniversary this year, we are proud of our history, the work our employees do, and the value we deliver our policyholders, distribution partners, and shareholders. We remain focused on a set of key priorities across the company to drive future success, including:
Current wording
In Third Quarter 2026, we marked our ninth consecutive quarter of double-digit operating returns with an operating ROE of 16.9%, and returned $81 million to common stockholders through regular dividends and opportunistic share repurchases, reinforcing our commitment to delivering long-term value. As Selective celebrated its 100th anniversary this year, we are proud of our history, the work our employees do, and the value we deliver our policyholders, distribution partners, and shareholders. We remain focused on a set of key priorities across the company to drive future success, including:
Previous wording
•In our existing footprint, we are focused on growing with existing partners and strategically appointing new agency locations. During Six Months 2026, we added 100 agency locations and we had a net increase of 100 agency locations in 2025.
Current wording
•In our existing footprint, we are focused on growing with existing partners and strategically appointing new agency locations. During Nine Months 2026, we added 120 agency locations and we had a net increase of 100 agency locations in 2025.
Previous wording
•Careful and deliberate geographic expansion. Since 2017, we have added fourteen states to our Standard Commercial Lines footprint, including Kansas in 2025. In Six Months 2026, these expansion states produced $242 million in premium, representing approximately 9% of total direct premiums written. We began writing business in Montana and Wyoming as of July 1, 2026.
Current wording
•Careful and deliberate geographic expansion. Since 2017, we have added sixteen states to our Standard Commercial Lines footprint, including Montana and Wyoming as of July 1, 2026. In Nine Months 2026, these expansion states produced $351 million in premium, representing approximately 8% of total direct premiums written.
Previous wording
•A GAAP combined ratio of 96.5% to 97.5%, including net catastrophe losses of 6.0 points. Our combined ratio estimate assumes no prior year casualty reserve development, as we record our best estimate each quarter. We do not make assumptions about future reserve development;
Current wording
•A GAAP combined ratio of 96.5% to 97.5%, including net catastrophe losses of 5.5 points. Our combined ratio estimate assumes no prior year casualty reserve development, as we record our best estimate each quarter. We do not make assumptions about future reserve development;
Previous wording
•After-tax net investment income of $480 million, up from our initial guidance of $465 million;
Current wording
•After-tax net investment income of $490 million, up from prior guidance of $480 million;
Previous wording
•Weighted average shares of 60.2 million on a fully diluted basis, reflecting the shares repurchased in Six Months 2026 and assuming no additional repurchases under our share repurchase authorization.
Current wording
•Weighted average shares of 59.9 million on a fully diluted basis, reflecting the shares repurchased in Nine Months 2026 and assuming no additional repurchases under our share repurchase authorizations.
Previous wording
Lower NPWin Second Quarter 2026 and Six Months 2026 compared to the same prior-year periods reflect reduced new business in a competitive environment and deliberate actions to enhance underwriting profitability. Retention in our Standard Commercial Lines segment was down two points in both Second Quarter 2026 and Six Months 2026, reflecting our granular pricing actions to drive lower retention on underperforming business. While enhancing underwriting profitability is a primary focus, we are also executing on strategies to support future growth opportunities, including expanding our geographic footprint and broadening our E&S distribution capabilities with retail access.
Current wording
Lower NPWin Third Quarter 2026 and Nine Months 2026 compared to the same prior-year periods reflect reduced new business in a competitive environment and our granular pricing actions to drive lower retention on underperforming business. Retention in our Standard Commercial Lines segment reflects these actions at 82% in Third Quarter 2026 and 81% in Nine Months 2026. While enhancing underwriting profitability is a primary focus, we are also executing on strategies to support future growth opportunities, including expanding our geographic footprint and broadening our E&S distribution capabilities with retail access.
Previous wording
There was no prior year casualty reserve development in any segment or line of business in Second Quarter 2026 or Six Months 2026. The unfavorable prior year casualty reserve development in Second Quarter 2025 and Six Months 2025 was primarily driven by (i) our commercial automobile line of business that experienced increased severities in accident years 2022 through 2024 and (ii) our general liability line of business that experienced increased severities in accident years 2022 and 2023.
Current wording
As the table illustrates above, there was no prior year casualty reserve development in any segment or line of business in Third Quarter 2026 or Nine Months 2026. The unfavorable prior year casualty reserve development in Third Quarter 2025 and Nine Months 2025 was primarily driven by (i) our commercial automobile line of business that experienced increased severities in accident years 2022 through 2024 and (ii) umbrella claims within our general liability line of business driven by commercial automobile losses in accident years 2022 and 2023.
Previous wording
Our underwriting expense ratio increased 1.5 points and 0.5 points in Second Quarter 2026 and Six Months 2026, respectively, compared to the prior year periods, as lower NPE has put pressure on our underwriting expense ratio.
Current wording
Our underwriting expense ratio increased 1.5 points and 0.4 points in Third Quarter 2026 and Nine Months 2026, respectively, compared to the prior-year periods, as lower NPE has put pressure on our underwriting expense ratio.
Previous wording
Lower NPWin Second Quarter 2026 and Six Months 2026 compared Second Quarter 2025 and Six Months 2025 reflected reduced new business and targeted actions on our renewal portfolio. Stronger new business pricing, informed by our view of expected loss trends, combined with a competitive environment, drove lower acquisition rates on new business. We are leveraging our granular insights and differentiated operating model to drive higher renewal retention on our best-performing business and meaningfully lower retention on our poorer-performing business through appropriate rating actions. While overall rate increases have moderated and retention is lower than the prior-year period, we expect these mix improvement actions to contribute to improved profitability.
Current wording
Lower NPWin Third Quarter 2026 and Nine Months 2026 compared to Third Quarter 2025 and Nine Months 2025 reflected reduced new business and targeted actions on our renewal portfolio. Stronger new business pricing, informed by our view of expected loss trends, combined with a competitive environment, drove lower acquisition rates on new business. We are leveraging our granular insights and differentiated operating model to drive higher renewal retention on our best-performing business and meaningfully lower retention on our underperforming business through appropriate rating and underwriting actions. While overall rate increases have moderated and retention has been impacted, we expect these mix improvement actions to contribute to improved profitability.
Previous wording
The loss and loss expense ratio decreased 3.3 points in Second Quarter 2026 compared to Second Quarter 2025, primarily due to (i)nonet prior year casualty reserve development in the current year quarter compared to 4.8-points of unfavorable prior year casualty reserve development in the year-ago quarter and (ii) lower non-catastrophe property losses, reflecting less severe wind and convective storms impacting our footprint in Second Quarter 2026 compared to Second Quarter 2025. These items were partially offset by higher current year casualty loss costs.
Current wording
The loss and loss expense ratio decreased 4.8 points in Third Quarter 2026 compared to Third Quarter 2025, primarily due to (i)nonet prior year casualty reserve development in the current year quarter compared to 3.7 points of unfavorable prior year casualty reserve development in the year-ago quarter and (ii) lower current year casualty loss costs. These items were partially offset by period-to-period variability in property losses.
Previous wording
In Six Months 2026, the loss and loss expense ratio increased 0.3 points compared to Six Months 2025, with higher current year loss costs and catastrophe losses, predominantly offset by improvements in prior year casualty reserve development and non-catastrophe losses. The increase in catastrophe losses wasdriven by higher frequency and severity of winter storms and thunderstorm events that impacted our footprint this year compared to last, mainly in the first quarter of 2026.
Current wording
In Nine Months 2026, the loss and loss expense ratio decreased 1.3 points compared to Nine Months 2025, with higher current year loss costs and catastrophe losses more than offset by improvements in prior year casualty reserve development and non-catastrophe losses. The increase in catastrophe losses wasdriven by higher frequency and severity of winter storms and thunderstorm events that impacted our footprint this year compared to last.
Previous wording
Prior year casualty reserve development in Second Quarter 2025 and Six Months 2025 reflected (i) increased severities in accident years 2022 through 2024 in our commercial automobile line of business, and (ii) increased severities in accident years 2022 and 2023 in our general liability line of business.
Current wording
Prior year casualty reserve development in Third Quarter 2025 and Nine Months 2025 reflected (i) increased severities in accident years 2022 through 2024 in our commercial automobile line of business and (ii) increased severities in accident years 2022 and 2023 within our umbrella coverages in our general liability line of business related to commercial automobile claims.
Previous wording
Higher current year casualty loss costs in Second Quarter 2026 and Six Months 2026 reflected the increased loss trend assumptions we recognized throughout 2025 and included in our expectations for 2026. Elevated severity trend assumptions attributable to social inflation on our general liability and commercial automobile liability lines of business, as well as elevated commercial automobile claim frequencies in the first half of 2026, drove the increase in current year casualty loss costs. Lower workers compensation loss trends provided a partial offset from decreasing claim frequencies in our 2026 expectations.
Current wording
Current year casualty loss costs were lower in Third Quarter 2026 compared to the prior-year quarter, primarily reflecting the earned impact of pricing and underwriting actions taken to improve rate adequacy. Higher current year casualty loss costs in Nine Months 2026 reflected the increased loss trend assumptions we recognized throughout 2025 and included in our expectations for 2026. Elevated severity trend assumptions attributable to social inflation on our general liability and commercial automobile liability lines of business, as well as elevated commercial automobile claim frequencies relative to expectations, drove the increase in current year casualty loss costs in Nine Months 2026. These increases were partially offset by lower workers compensation loss trends from decreasing claim frequencies in our 2026 expectations.
Previous wording
NPW was down in Second Quarter 2026 and Six Months 2026 compared to the same prior-year periods, reflecting deliberate actions to enhance underwriting profitability. In sectors and markets where pricing does not align with our view of rate need, we are taking targeted underwriting actions, including (i) revising underwriting guidelines, (ii) tightening coverage offerings, and (iii) reducing writings.
Current wording
NPW was down in Third Quarter 2026 and Nine Months 2026 compared to the same prior-year periods, reflecting deliberate actions to enhance underwriting profitability. In sectors and markets where pricing does not align with our view of rate need, we are taking targeted underwriting actions, including (i) revising underwriting guidelines, (ii) tightening coverage offerings, and (iii) reducing writings.
Previous wording
These dynamics have impacted our view of current year loss costs. The increased loss trend assumptions that we recognized over the course of 2025 that are included in our expectations for 2026, drove a 2.6-point increase in current year casualty loss costs in Second Quarter 2026 and a 2.3-point increase in Six Months 2026 compared to the same prior-year periods.
Current wording
These dynamics have impacted our view of current year loss costs. The increased loss trend assumptions that we recognized over the course of 2025 that are included in our expectations for 2026, drove a 0.7-point increase in current year loss costs in Nine Months 2026 compared to the same prior-year period. In Third Quarter 2026, however, current year casualty loss costs decreased 2.5 points compared to the year-ago quarter, reflecting the earned impact of the rate and underwriting actions.
Previous wording
We did not record any prior year casualty reserve development in Second Quarter 2026 and Six Months 2026. We recorded $20.0 million of unfavorable prior year casualty reserve development in Second Quarter 2025 and Six Months 2025, which was driven by increased severities in accident years 2022 and 2023.
Current wording
We did not record any prior year casualty reserve development in Third Quarter 2026 and Nine Months 2026. We recorded $20 million of unfavorable prior year casualty reserve development in Nine Months 2025, which was driven by increased severities on umbrella coverages related to commercial automobile claims, in accident years 2022 and 2023.
Previous wording
NPW decreased 7% in Second Quarter 2026 and 5% in Six Months 2026 compared to the same prior-year periods, driven by underwriting actions to improve profitability, such as achieving renewal pure price increases and tightening underwriting guidelines for fleet exposures. Lower renewal pure price increases this year compared to last were driven by a reduction in rates for physical damage that were partially offset by higher commercial automobile liability rates.
Current wording
NPW decreased 11% in Third Quarter 2026 and 7% in Nine Months 2026 compared to the same prior-year periods, driven by underwriting actions to improve profitability, such as achieving renewal pure price increases and tightening underwriting guidelines for fleet exposures. Lower renewal pure price increases this year compared to last were driven by a reduction in rates for physical damage that were partially offset by higher commercial automobile liability rates.
Previous wording
We did not record any prior year casualty reserve development in Second Quarter 2026 and Six Months 2026, compared to $25.0 million recorded in Second Quarter 2025 and Six Months 2025. Current year casualty loss costs were higher in Second Quarter 2026 and Six Months 2026 compared to the same prior-year periods, driven by elevated claim frequencies in the first half of the year andthe increased loss trend assumptions we recognized throughout 2025 that are included in our expectations for 2026.
Current wording
We did not record any prior year casualty reserve development in Third Quarter 2026 and Nine Months 2026, compared to unfavorable prior year casualty reserve development of $35.0 million in Third Quarter 2025 and $60.0 million in Nine Months 2025, driven by increased severities in the state of New Jersey for accident years 2022 through 2024. Current year casualty loss costs were lower in Third Quarter 2026 compared to the same prior-year period, primarily reflecting the earned impact of pricing and underwriting actions taken to improve rate adequacy and profitability, while in Nine Months 2026 compared to Nine Months 2025, this improvement was offset bythe increased loss trend assumptions we recognized throughout 2025 that are included in our expectations for 2026.
Previous wording
In the aggregate, net catastrophe and non-catastrophe property losses were 1.5-points lower in Second Quarter 2026 and 1.9- points lower in Six Months 2026 compared to the same prior-year periods, and provided a partial offset to the increase in current year loss costs. This reduction was driven by (i) the earned impact of renewal pure price increases and (ii) period-to-period variability of catastrophe and non-catastrophe property losses.
Current wording
In the aggregate, net catastrophe and non-catastrophe property losses were 1.4 points lower in Third Quarter 2026 and 1.8 points lower in Nine Months 2026 compared to the same prior-year periods. This reduction was driven by (i) the earned impact of renewal pure price increases and (ii) period-to-period variability of catastrophe and non-catastrophe property losses.
Previous wording
NPW decreased 4% in Second Quarter 2026 and 2% Six Months 2026 compared to the same prior-year periods, reflecting lower new business and deliberate actions to strengthen underwriting profitability.
Current wording
NPW decreased 4% in Third Quarter 2026 and 2% in Nine Months 2026 compared to the same prior-year periods, reflecting lower new business and deliberate actions to strengthen underwriting profitability.
Previous wording
Growth in NPE of 4% in Second Quarter 2026 and 6% in Six Months 2026 continued to reflect the impact of NPW growth through the first quarter of 2026, but is pressured by the impact of lower NPW this quarter.
Current wording
Growth in NPE of 2% in Third Quarter 2026 and 4% in Nine Months 2026 reflected the impact of NPW growth through the first quarter of 2026, but was pressured by the impact of lower NPW for the last two quarters.
Previous wording
The combined ratio decreased 6.3 points in Second Quarter 2026 compared to Second Quarter 2025, and increased 3.1 points in Six Months 2026 compared to Six Months 2025, and included the following:
Current wording
The combined ratio increased 12.2 points in Third Quarter 2026 compared to Third Quarter 2025, and 6.3 points in Nine Months 2026 compared to Nine Months 2025, and included the following:
Previous wording
In the aggregate, net catastrophe and non-catastrophe property losses were lower in Second Quarter 2026 compared to Second Quarter 2025, but were higher in Six Months 2026 compared to Six Months 2025. The increase in net catastrophe losses was driven byhigher frequency and severity of winter storms and thunderstorm events that impacted our footprint this year compared to last, mainly in the first quarter of 2026.
Current wording
In the aggregate, net catastrophe and non-catastrophe property losses were higher in both Third Quarter 2026 and Nine Months 2026 compared to the same prior-year periods. The increase in net catastrophe losses was driven byhigher frequency and severity of winter storms and thunderstorm events that impacted our footprint this year compared to last. This was partially offset by lower non-catastrophe property losses due to normal period-to-period variability in property losses.
Previous wording
NPW decreased 8% in Second Quarter 2026 and 6% in Six Months 2026 compared to the same prior-year periods, primarily due to negative rate changes. These rate level reductions were driven by continued decreases in workers compensation rating bureau loss costs, which form the basis for our filed rating plans, and heavily influence marketplace pricing for this line of business. Additionally, retention is down compared to the same prior-year periods, resulting from underwriting actions taken to improve profitability.
Current wording
NPW decreased 6% in Third Quarter 2026 and 6% in Nine Months 2026 compared to the same prior-year periods, primarily due to negative rate changes and lower new business. The rate level reductions were driven by continued decreases in workers compensation rating bureau loss costs, which form the basis for our filed rating plans, and heavily influence marketplace pricing for this line of business. Additionally, retention was lower compared to the same prior-year periods, resulting from underwriting actions taken to improve profitability.
Previous wording
Lower current year casualty loss costs in Second Quarter 2026 and Six Months 2026 compared to the same prior-year periods were primarily driven by decreased claim frequencies leading to improved loss trends. In addition, the combined ratio benefited from a 2.1-point reduction in underwriting expenses in Second Quarter 2026 and a 1.8-point reduction in Six Months 2026 compared to the same prior-year periods, which was primarily driven by lower commissions on this line of business.
Current wording
Lower current year casualty loss costs in Third Quarter 2026 and Nine Months 2026 compared to the same prior-year periods were primarily driven by decreased claim frequencies leading to improved loss trends. In addition, the combined ratio benefited from a 1.3-point reduction in the underwriting expense ratio in Nine Months 2026 compared to the same prior-year period, primarily driven by lower commissions on this line of business.
Previous wording
Lower NPW and NPE in Second Quarter 2026 and Six Months 2026 compared to the same prior-year periods was driven by reductions in direct new business and lower renewal pure price increases. New business decreased 36% in Second Quarter 2026 and 27% in Six Months 2026 compared to the same prior-year periods, driven by (i) market conditions, including an increasingly competitive market for auto insurance and (ii) restrictions we have in place to manage overall growth in the State of New Jersey. We have received regulatory approvals for increased rate levels in most of our footprint states and are focused on growth in our target market segment where we believe our rates are adequate. In Second Quarter 2026 and Six Months 2026 we achieved renewal pure price increases of 8.9% and 9.6%, respectively. Additionally, we continue to focus our efforts on our target mass affluent market, with 98% of new business through Six Months 2026 being in our target market.
Current wording
Lower NPW and NPE in Third Quarter 2026 and Nine Months 2026 compared to the same prior-year periods were driven by reductions in direct new business and lower renewal pure price increases. New business decreased 36% in Third Quarter 2026 and 29% in Nine Months 2026 compared to the same prior-year periods, driven by (i) market conditions, including an increasingly competitive market for auto insurance and (ii) restrictions we have in place to manage overall growth in the State of New Jersey. We have received regulatory approvals for increased rate levels in most of our footprint states and are focused on growth in our target market segment where we believe our rates are adequate. In Third Quarter 2026 and Nine Months 2026 we achieved renewal pure price increases of 8.1% and 9.3%, respectively.
Previous wording
The following table depicts direct new business, retention, and renewal pure price increases for the Second Quarter 2026 and Six Months 2026:
Current wording
The following table depicts direct new business, retention, and renewal pure price increases for the Third Quarter 2026 and Nine Months 2026:
Previous wording
The $5.0 million of unfavorable prior year casualty reserve development in Six Months 2025 was primarily driven by increased severities in accident year 2024 related to the New Jersey portfolio.
Current wording
The unfavorable prior year casualty reserve development of $5.0 million in Third Quarter 2025 and $10.0 million in Nine Months 2025 was primarily driven by increased severities in accident year 2024 related to the New Jersey portfolio.
Previous wording
Increased competition in the marketplace and our continued underwriting discipline contributed to a decline in NPW of 2% in Second Quarter 2026 and 1% in Six Months 2026 compared to the same prior-year periods. This NPW decline was primarily due to more capacity entering the excess and surplus lines marketplace and the admitted markets' expansion in appetite for business previously written by excess and surplus lines companies. NPW includes the impact of the following:
Current wording
Increased competition in the marketplace and our continued underwriting discipline contributed to a decline in NPW of 2% in Third Quarter 2026 and 1% in Nine Months 2026 compared to the same prior-year periods. This NPW decline was primarily due to more capacity entering the excess and surplus lines marketplace and the admitted markets' expansion in appetite for business previously written by excess and surplus lines companies. NPW included the impact of the following:
Previous wording
Despite the decline in NPW during 2026, NPE grew 5% in Second Quarter 2026 and 6% in Six Months 2026 compared to the same prior-year periods, driven by growth in NPW in 2025 and the corresponding earnings of those premiums written.
Current wording
Despite the decline in NPW during 2026, NPE grew 1% in Third Quarter 2026 and 4% in Nine Months 2026 compared to the same prior-year periods, driven by growth in NPW in 2025 and the corresponding earnings of those premiums written.
Previous wording
The loss and loss expense ratio increased 2.1 points in Second Quarter 2026 and decreased 0.2 points in Six Months 2026 compared to the same prior-year periods. In both Second Quarter 2026 and Six Months 2026, the loss and loss expense ratio was increased by (i) higher current year casualty loss costs, primarily driven by higher embedded severity assumptions due to social inflation and (ii) higher non-catastrophe property loss and loss expenses, reflecting normal period-to-period variability associated with property losses. Net catastrophe losses provided an offset to these items in both periods, with Six Months 2026 having a larger offset as the California Palisades Fire impacted the first quarter of 2025.
Current wording
The loss and loss expense ratio increased 10.3 points in Third Quarter 2026 compared to Third Quarter 2025, impacted by (i) higher current year casualty loss costs, primarily driven by higher embedded severity assumptions due to social inflation, (ii) higher non-catastrophe property loss and loss expenses, reflecting normal period-to-period variability associated with property losses, and (iii) higher net catastrophe losses due to higher frequency and severity of weather-related events that impacted our footprint.
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Previous report — wording carried elsewhere
In Six Months 2026, the loss and loss expense ratio increased 0.2 points compared to Six Months 2025, with higher current year loss costs and catastrophe losses predominantly offset by improvements in prior year casualty reserve development and non-catastrophe property losses.