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Property and casualty insurer Selective Insurance Group met Wall Streets revenue expectations in Q4 CY2025, with sales up 8.6% year on year to $1.36 billion. Its non-GAAP profit of $2.57 per share was 17.7% above analysts’ consensus estimates.

Selective Insurance Group (SIGI) Q4 CY2025 Highlights:

• Net Premiums Earned: $1.22 billion vs analyst estimates of $1.21 billion (7.4% year-on-year growth, in line)
• Revenue: $1.36 billion vs analyst estimates of $1.36 billion (8.6% year-on-year growth, in line)
• Combined Ratio: 93.8% vs analyst estimates of 96.8% (302.5 basis point beat)
• Adjusted EPS: $2.57 vs analyst estimates of $2.18 (17.7% beat)
• Book Value per Share: $56.74 vs analyst estimates of $59.06 (18.2% year-on-year growth, 3.9% miss)
• Market Capitalization: $4.92 billion

“We are well-positioned to build on recent momentum. We delivered a double-digit operating ROE of 14.2% in 2025, reflecting the strength of our disciplined execution and resilience of our business model. This exceeds our ten-year average operating ROE of 12.1%. Our performance drove an 18% increase in book value per share in 2025, and we returned $182 million to common stockholders through regular dividends and opportunistic share repurchases,” said John J. Marchioni, Chairman, President and Chief Executive Officer.

Company Overview

Founded in 1926 during the early days of automobile insurance, Selective Insurance Group is a property and casualty insurance company that sells commercial, personal, and excess and surplus lines insurance products through independent agents.

Revenue Growth

Insurance companies earn revenue from three primary sources: 1) The core insurance business itself, often called underwriting and represented in the income statement as premiums 2) Income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities 3) Fees from various sources such as policy administration, annuities, or other value-added services. Luckily, Selective Insurance Group’s revenue grew at an excellent 12.8% compounded annual growth rate over the last five years. Its growth beat the average insurance company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Selective Insurance Group’s annualized revenue growth of 12.3% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong.

This quarter, Selective Insurance Group grew its revenue by 8.6% year on year, and its $1.36 billion of revenue was in line with Wall Street’s estimates.

Net premiums earned made up 90.6% of the company’s total revenue during the last five years, meaning Selective Insurance Group lives and dies by its underwriting activities because non-insurance operations barely move the needle.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Selective Insurance Group’s BVPS grew at a mediocre 6% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 11.8% annually over the last two years from $45.42 to $56.74 per share.

Over the next 12 months, Consensus estimates call for Selective Insurance Group’s BVPS to grow by 13.6% to $59.06, solid growth rate.

Key Takeaways from Selective Insurance Group’s Q4 Results

It was good to see Selective Insurance Group beat analysts’ EPS expectations this quarter. Revenue and net premiums earned were both just in line. On the negative side, its book value per share missed. Zooming out, we think this was a mixed quarter. The stock remained flat at $84.03 immediately following the results.

Is Selective Insurance Group an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).