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Selective Insurance Group’s 22% New Business Pullback — Can Less Growth Produce Better Returns?

Selective Insurance Group reported solid results for the second quarter of 2026, marked by disciplined underwriting and progress on strategic initiatives. The company delivered a 13.7% operating return on common equity (ROE), continuing its streak of eight consecutive quarters with double-digit operating ROEs. Investment income contributed positively, increasing 18% year-over-year, supported by higher book yields amid a rising interest rate environment. The company reported a combined ratio of 98.0% for the quarter, including 5.6 points related to catastrophe losses, while the first half of 2026 produced an improved combined ratio of 98.1% with no prior-year casualty reserve development. All insurance segments reported underwriting profits. Particularly, the Excess & Surplus (E&S) lines experienced strong performance with a combined ratio of 91.8% in the quarter despite a 2% decline in premiums driven by competition and capacity expansion in the marketplace.