After-tax net investment income was $101 million, generating 13 points of ROE, up 50 basis points from Q2 2024.
Book value per share increased 9% in the first half of 2025, driven by profitability and reduced after-tax net unrealized fixed income security losses.
Excess and Surplus lines grew 9% with a combined ratio of 89.8%, while Personal Lines combined ratio improved to 91.6%, 26.5 points better than a year ago.
Expense ratio increased by 60 basis points due to higher expected employee compensation after lower profit-based payouts last year.
Fully diluted EPS was $1.36 and non-GAAP operating EPS was $1.31 for the quarter.
Insurance segments grew 5%, with combined ratios at or below the 95% long-term target for Excess and Surplus and Personal Lines.
Selective Insurance Group delivered an operating return on equity of 10.3% in Q2 2025 with investment income increasing 18% year-over-year.
Standard Commercial Lines reported a combined ratio of 102.8%, including 4.8 points of unfavorable prior year casualty development.
The GAAP combined ratio was elevated primarily due to prior year casualty reserve development; catastrophe losses were 6.7%, better than anticipated.
The overall combined ratio for the quarter was 100.2%, impacted by 3.8 points of unfavorable prior year casualty reserve development and 6 points of catastrophe losses.
Underlying combined ratio improved 170 basis points year-over-year to 89.7% for the quarter.
Dafinchi