Selective Insurance reports preliminary Q1 catastrophe losses about $26M
Selective Insurance announced preliminary first quarter 2018 pre-tax net insured catastrophe losses totaling approximately $26M. The catastrophe losses primarily relate to the winter storm that impacted the east coast of the United States in early January and the Nor'easters in March. The Company also experienced higher than expected non-catastrophe insured property losses of $28M ($106M in total), principally related to the early January deep freeze in the Company's footprint states and a relatively large number of severe fire losses. First quarter 2018 catastrophe and non-catastrophe property losses were above expected by $33M that will reduce fully diluted earnings per share by 44c. Partially offsetting these losses, the Company expects to report $8M of pre-tax net favorable prior year casualty reserve development in the quarter, or 11c per fully diluted share, and improved standard commercial lines pure renewal pricing that was 3.2% for the first quarter of 2018.