Selective Insurance Group, Inc.

Investor Relations and Treasurer. Please go ahead.

Good morning. Thank you for joining Selective's fourth quarter and full year 2025 earnings conference call. Yesterday, we posted our earnings press release, financial supplement, and investor presentation on Selective.com's investor section. A replay of the webcast will be available there shortly after this call. John Marcioni, our Chairman of the Board, President and Chief Executive Officer, and Patrick Brennan, Executive Vice President and Chief Financial Officer, will discuss results and take your questions. We will reference non-GAAP measures that insurance and investment professionals use to evaluate operational and financial performance. These non-GAAP measures include operating income, operating return on common equity, and adjusted book value per common share. The financial supplements on our website include GAAP reconciliations to any reference non-GAAP financial measures. We will also make statements and projections about our future performance. These are forward-looking statements under the Private Securities Litigation Reform Act of 1995, not guarantees of future performance. These statements are subject to risks and uncertainties that we disclose in our annual, quarterly, and current reports filed with the SEC. We undertake no obligation to update or revise

forward-looking statements now I'll turn the call over to John thanks Brad and good morning we are well positioned to build on recent momentum in 2025 we delivered an ROE of 14.4 percent and an operating ROE of 14.2 percent this exceeds our 10-year average operating ROE of 12.1 percent and our five-year average of 12.5 percent We are proud of our long-term track record and are taking clear steps to drive future margin improvement. In 2025, we grew book value per share by 18% and returned $182 million to shareholders through our common dividends and share repurchases at attractive valuations. With our strong capital position, we can deploy capital in several ways that are accretive to long-term value, including continued investments to grow and diversify our business along with opportunistic share repurchases. We have a strong foundation with opportunities to drive improvement across our organization. We delivered a 93.8% combined ratio in the quarter, reducing our full year combined ratio to 97.2, just outside the 96 to 97 guidance we provided at the beginning of the year and at the low end of the 97 to 98 guidance provided last quarter. Net premium as written growth was 5% for the year as we executed deliberate actions to improve underwriting profitability. This remains our primary focus. However, we are also executing strategies to support future growth opportunities, including expanding our geographic footprint and broadening E&S distribution capabilities with retail access. We believe we have the capabilities and strategy to further diversify our premium and outpace industry growth in coming years. In the fourth quarter, favorable workers' compensation development offset unfavorable prior year emergence in the commercial and personal auto lines and ENS casualty. There are also several smaller adjustments across multiple lines of business, including umbrella, which was driven by auto. In 2024 and 2025, we took meaningful actions to strengthen reserves. Our picks for older accident years have held up well. and our actions have been increasingly weighted to more recent accident years. We are comfortable with our overall carried reserve position. We firmly believe our disciplined approach responds promptly and appropriately to emerging trends and ensures pricing targets keep pace with an evolving external environment, even though it can create short-term volatility. We will stick to our process, continuing to assess emerging information, considering risk factors, and booking our best reserve estimates each quarter. We expected 2025 accident year margins to improve for commercial automobile as we have earned double digit rate increases over multiple years that exceeded our assumed loss trend of roughly 8%. As 2025 progressed, we ultimately increased commercial auto casualty loss costs by nearly six points. We also increased our expected severity trend for commercial auto liability to approximately 10% This assumption is reflected in our book results and incorporated into our 2026 guidance. In total, we strengthened commercial auto reserves by approximately $190 million in 2025. The majority is attributable to the 2024 and 2025 accident years, with 2025 representing the largest share. We are addressing commercial auto with both underwriting and claims actions. For example, we've implemented tighter underwriting guidelines for fleet exposures, supported by state-specific tactics, and focused our commercial auto telematics rollout in specific segments and states. In general liability, we've discussed our actions to manage limits in challenging jurisdictions and trim underperforming classes. We are also prioritizing new business in better performing segments and have strengthened new business pricing. Standard Commercial Lines is our largest segment and our earnings engine. We have the sophisticated pricing and risk selection tools in the hands of our talented underwriters that are necessary for taking granular action across the portfolio. We are improving MIX by achieving stronger rate and retention differentiation based on expected profitability while continuing to focus on overall rate adequacy. This is not new, but we expect the amount of differentiation to increase. We are leveraging our tools, granular insights, and differentiated operating model to drive higher renewal retention on our best performing business and meaningfully lower retention on our poor performing business through appropriate rating actions. While overall rate increases could moderate in the short term, we expect these mixed improvement actions will deliver improved profitability. Our guidance reflects the benefits we expect in 2026 from the various actions we have taken And our multi-year plan points to continued margin improvement at 2027. Now I'll turn the call over to Patrick.