Segment Information

6 Months Ended

Jun. 30, 2025

We evaluate the results of our four reportable segments as follows:

•Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated on (i) before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), (ii) their return on equity ("ROE") contribution, and (iii) their combined ratios.

•Our Investments segment is primarily evaluated on after-tax net investment income and its ROE contribution. After-tax net realized and unrealized gains and losses are also included in our Investments segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses. No segment has a separate investment portfolio or allocated assets.

(a) The following table presents revenues by segments and a reconciliation to consolidated revenue.


Revenue by Segment	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Standard Commercial Lines:
Net premiums earned:
General liability	$	305,843	280,097	$	600,530	553,512
Commercial automobile	288,759		260,652	572,344		512,372
Commercial property	191,027		168,511	377,557		330,064
Workers compensation	82,024		82,316	161,060		170,093
Businessowners' policies	48,416		41,641	95,309		81,562
Bonds	13,255		12,468	26,513		24,556
Other	8,311		7,808	16,532		15,444
Miscellaneous income	5,920		5,214	10,780		12,348
Total Standard Commercial Lines revenue	943,555		858,707	1,860,625		1,699,951
Standard Personal Lines:
Net premiums earned:
Personal automobile	51,287		57,544	104,255		114,504
Homeowners	48,312		46,055	96,255		90,168
Other	2,778		2,822	5,522		5,595
Miscellaneous income	577		594	1,148		1,235
Total Standard Personal Lines revenue	102,954		107,015	207,180		211,502
E&S Lines:
Net premiums earned:
Casualty lines	87,400		73,887	172,519		145,525
Property lines	60,645		46,430	118,418		87,780
Miscellaneous income	51		27	129		53
Total E&S Lines revenue	148,096		120,344	291,066		233,358
Investments:
Net investment income earned	127,968		108,642	248,659		216,491
Net realized and unrealized investment gains (losses)	4,172		1,297	4,401		(338)
Total Investments revenue	132,140		109,939	253,060		216,153


Total revenues	$	1,326,745	1,196,005	$	2,611,931	2,360,964

(b) The following tables present information about our segments' pre- and after-tax income, significant expenses, and reconciliations to consolidated results for the periods indicated.


Quarter Ended June 30, 2025	Standard Commercial Lines		Standard Personal Lines	E&S Lines	Total Insurance Operations	Investments	Total Reportable Segments
($ in thousands)
Total segment revenues	$	943,555	102,954	148,096	1,194,605	132,140	1,326,745

Loss and loss expense incurred:
Net catastrophe losses	50,881		14,591	14,460	79,932	—	79,932
Non-catastrophe property loss and loss expense	131,883		28,271	13,085	173,239	—	173,239
(Favorable)/unfavorable prior year casualty reserve development	45,000		—	—	45,000	—	45,000
Current year casualty loss costs	439,002		27,115	59,610	525,727	—	525,727
Total loss and loss expense incurred	666,766		69,977	87,155	823,898	—	823,898
Net underwriting expenses incurred:
Commissions to distribution partners	173,406		6,522	33,769	213,697	—	213,697
Salaries and employee benefits	78,667		8,805	7,498	94,970	—	94,970
Other segment expenses	49,709		9,100	4,503	63,312	—	63,312
Total net underwriting expenses incurred	301,782		24,427	45,770	371,979	—	371,979
Dividends to policyholders	1,151		—	—	1,151	—	1,151

Segment income (loss), before federal income tax	(26,144)		8,550	15,171	(2,423)	132,140	129,717
Federal income tax (expense) benefit					509	(27,423)	(26,914)
Segment income (loss), after federal income tax					(1,914)	104,717	102,803

Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)							129,717
Interest expense							(13,256)
Corporate expenses							(7,556)
Income before federal income tax							108,905
Federal income tax (expense) benefit on segment income (loss)							(26,914)
Federal income tax (expense) benefit on interest and corporate expenses							3,952
Total federal income tax (expense) benefit							(22,962)
Net income							85,943
Preferred stock dividends							(2,300)
Net income available to common stockholders							83,643


Quarter Ended June 30, 2024	Standard Commercial Lines		Standard Personal Lines	E&S Lines	Total Insurance Operations	Investments	Total Reportable Segments
($ in thousands)
Total segment revenues	$	858,707	107,015	120,344	1,086,066	109,939	1,196,005

Loss and loss expense incurred:
Net catastrophe losses	50,858		25,396	14,280	90,534	—	90,534
Non-catastrophe property loss and loss expense	124,505		45,350	15,633	185,488	—	185,488
(Favorable)/unfavorable prior year casualty reserve development	176,000		—	—	176,000	—	176,000
Current year casualty loss costs	396,591		30,694	46,241	473,526	—	473,526
Total loss and loss expense incurred	747,954		101,440	76,154	925,548	—	925,548
Net underwriting expenses incurred:
Commissions to distribution partners	157,351		8,124	26,870	192,345		192,345
Salaries and employee benefits	69,070		8,644	6,533	84,247		84,247
Other segment expenses	44,159		8,108	4,286	56,553		56,553
Total net underwriting expenses incurred	270,580		24,876	37,689	333,145	—	333,145
Dividends to policyholders	1,054		—	—	1,054		1,054

Segment income (loss), before federal income tax	(160,881)		(19,301)	6,501	(173,681)	109,939	(63,742)
Federal income tax (expense) benefit					36,473	(22,652)	13,821
Segment income (loss), after federal income tax					(137,208)	87,287	(49,921)

Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)							(63,742)
Interest expense							(7,202)
Corporate expenses							(9,154)
Income before federal income tax							(80,098)
Federal income tax (expense) benefit on segment income (loss)							13,821
Federal income tax (expense) benefit on interest and corporate expenses							2,958
Total federal income tax (expense) benefit							16,779
Net income							(63,319)
Preferred stock dividends							(2,300)
Net income available to common stockholders							(65,619)



Six Months ended June 30, 2025
($ in thousands)	Standard Commercial Lines		Standard Personal Lines	E&S Lines	Total Insurance Operations	Investments	Total Reportable Segments
Total segment revenues	$	1,860,625	207,180	291,066	2,358,871	253,060	2,611,931

Loss and loss expense incurred:
Net catastrophe losses	70,692		21,704	30,893	123,289	—	123,289
Non-catastrophe property loss and loss expense	260,675		64,759	26,501	351,935	—	351,935
(Favorable)/unfavorable prior year casualty reserve development	45,000		5,000	—	50,000	—	50,000
Current year casualty loss costs	872,065		55,183	117,751	1,044,999	—	1,044,999
Total loss and loss expense incurred	1,248,432		146,646	175,145	1,570,223	—	1,570,223
Net underwriting expenses incurred:
Commissions to distribution partners	343,578		13,873	66,475	423,926	—	423,926
Salaries and employee benefits	158,258		17,400	15,093	190,751	—	190,751
Other segment expenses	101,449		18,674	8,500	128,623	—	128,623
Total net underwriting expenses incurred	603,285		49,947	90,068	743,300	—	743,300
Dividends to policyholders	2,134		—	—	2,134	—	2,134

Segment income (loss), before federal income tax	6,774		10,587	25,853	43,214	253,060	296,274
Federal income tax (expense) benefit					(9,075)	(52,541)	(61,616)
Segment income (loss), after federal income tax					34,139	200,519	234,658

Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)							296,274
Interest expense							(22,829)
Corporate expenses							(25,654)
Income before federal income tax							247,791
Federal income tax (expense) benefit on segment income (loss)							(61,616)
Federal income tax (expense) benefit on interest and corporate expenses							9,664
Total federal income tax (expense) benefit							(51,952)
Net income							195,839
Preferred stock dividends							(4,600)
Net income available to common stockholders							191,239



Six Months ended June 30, 2024
($ in thousands)	Standard Commercial Lines		Standard Personal Lines	E&S Lines	Total Insurance Operations	Investments	Total Reportable Segments
Total segment revenues	$	1,699,951	211,502	233,358	2,144,811	216,153	2,360,964

Loss and loss expense incurred:
Net catastrophe losses	89,353		37,241	19,182	145,776	—	145,776
Non-catastrophe property loss and loss expense	239,546		87,228	29,886	356,660	—	356,660
(Favorable)/unfavorable prior year casualty reserve development	211,000		—	—	211,000	—	211,000
Current year casualty loss costs	763,888		61,315	91,201	916,404	—	916,404
Total loss and loss expense incurred	1,303,787		185,784	140,269	1,629,840	—	1,629,840
Net underwriting expenses incurred:
Commissions to distribution partners	311,321		15,623	52,011	378,955	—	378,955
Salaries and employee benefits	141,344		18,083	12,298	171,725	—	171,725
Other segment expenses	89,691		16,648	8,294	114,633	—	114,633
Total net underwriting expenses incurred	542,356		50,354	72,603	665,313	—	665,313
Dividends to policyholders	4,308		—	—	4,308	—	4,308

Segment income (loss), before federal income tax	(150,500)		(24,636)	20,486	(154,650)	216,153	61,503
Federal income tax (expense) benefit					32,476	(44,518)	(12,042)
Segment income (loss), after federal income tax					(122,174)	171,635	49,461

Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)							61,503
Interest expense							(14,383)
Corporate expenses							(24,652)
Income before federal income tax							22,468
Federal income tax (expense) benefit on segment income (loss)							(12,042)
Federal income tax (expense) benefit on interest and corporate expenses							8,773
Total federal income tax (expense) benefit							(3,269)
Net income							19,199
Preferred stock dividends							(4,600)
Net income available to common stockholders							14,599

The "Other segment expenses" primarily consist of (i) fees paid for licenses, (ii) depreciation expense, and (iii) general overhead items to operate our business operations, including travel, postage, telephone, and utility expenses. "Loss and loss expense incurred" includes a portion of salaries and employee benefits related to claims personnel.

(c) The following tables present reconciliations of our segments' ROE contributions and combined ratios to consolidated results.


ROE	Quarter Ended June 30,			Six Months Ended June 30,
	2025		2024	2025		2024
Standard Commercial Lines segment	(2.6)	%	(18.4)	0.4	%	(8.6)
Standard Personal Lines segment	0.9		(2.2)	0.5		(1.4)
E&S Lines segment	1.5		0.7	1.3		1.2
Total insurance operations	(0.2)		(19.9)	2.2		(8.8)

Net investment income earned	13.0		12.5	12.9		12.5
Net realized and unrealized investment gains (losses)	0.4		0.1	0.2		—
Total investments segment	13.4		12.6	13.1		12.5

Other	(2.5)		(2.2)	(2.8)		(2.6)
ROE	10.7		(9.5)	12.5		1.1


Combined Ratio	Quarter ended June 30,						Six Months ended June 30,
	2025				2024		2025				2024
	Amount		Ratio		Amount	Ratio	Amount		Ratio		Amount	Ratio
Standard Commercial Lines:
Net premiums earned	$	937,635			853,493		$	1,849,845			1,687,603
Loss and loss expense incurred	666,766		71.1	%	747,954	87.6	1,248,432		67.5	%	1,303,787	77.2
Net underwriting expenses incurred1	295,862		31.6		265,366	31.1	592,505		32.0		530,008	31.4
Dividends to policyholders	1,151		0.1		1,054	0.1	2,134		0.1		4,308	0.3
Underwriting income (loss)	(26,144)		102.8		(160,881)	118.8	6,774		99.6		(150,500)	108.9

Standard Personal Lines:
Net premiums earned	102,377				106,421		206,032				210,267
Loss and loss expense incurred	69,977		68.3		101,440	95.3	146,646		71.2		185,784	88.3
Net underwriting expenses incurred1	23,850		23.3		24,282	22.8	48,799		23.7		49,119	23.4
Underwriting income (loss)	8,550		91.6		(19,301)	118.1	10,587		94.9		(24,636)	111.7

E&S Lines:
Net premiums earned	148,045				120,317		290,937				233,305
Loss and loss expense incurred	87,155		58.9		76,154	63.3	175,145		60.2		140,269	60.1
Net underwriting expenses incurred1	45,719		30.9		37,662	31.3	89,939		30.9		72,550	31.1
Underwriting income (loss)	15,171		89.8		6,501	94.6	25,853		91.1		20,486	91.2

Total Insurance Operations:
Net premiums earned	1,188,057				1,080,231		2,346,814				2,131,175
Loss and loss expense incurred	823,898		69.3		925,548	85.7	1,570,223		66.9		1,629,840	76.5
Net underwriting expenses incurred1	365,431		30.8		327,310	30.3	731,243		31.2		651,677	30.6
Dividends to policyholders	1,151		0.1		1,054	0.1	2,134		0.1		4,308	0.2
Underwriting income (loss)	(2,423)		100.2		(173,681)	116.1	43,214		98.2		(154,650)	107.3

1"Net underwriting expenses incurred" includes "Other income" allocated to each reportable segment.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

SELECTIVE INSURANCE GROUP INC 10-Q