Selective Insurance Group, Inc. (NASDAQ:SIGI) Q2 2022 Earnings Conference Call August 4, 2022 10:00 AM ET

Company Participants

Rohan Pai - Senior Vice President, Investor Relations & Treasurer

John Marchioni - Chairman, President & Chief Executive Officer

Mark Wilcox - Executive Vice President & Chief Financial Officer

Conference Call Participants

Michael Phillips - Morgan Stanley

Paul Newsome - Piper Sandler

Meyer Shields - KBW

Grace Carter - Bank of America

Scott Heleniak - RBC Capital Markets

Operator

Good day, everyone. Welcome to Selective Insurance Group's Second Quarter 2022 Earnings Call. At this time for opening remarks and introductions, I'd like to turn the call over to Senior Vice President, Investor Relations and Treasurer, Rohan Pai. You may begin.

Rohan Pai

Good morning, everyone. We are trans-casting this call on our website selective.com. The replay is available until September 4. We used three measures to discuss our results and business operations. First is GAAP financial measures reported in our annual quarterly and current reports filed with the SEC and second, we use non-GAAP operating measures, which we believe makes it easier for investors to evaluate our insurance business. Non-GAAP operating income is net income available to common stockholders excluding the after-tax impact of net realized gains and losses on investments and unrealized gains and losses on equity securities.

Non-GAAP operating return on common equity is non-GAAP operating income divided by average common stockholders' equity. Adjusted book value per common share deferred from book value for common share by the exclusion of total after-tax unrealized gains and losses on investments included in accumulated other comprehensive loss or income and GAAP reconciliations to any referenced non-GAAP financial measures are in our supplemental investor package found on the Investors page of our website.

Third, we make statements and projections about our future performance. These are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance and are subject to risks and uncertainties. We discuss these risks and uncertainties as detailed in our annual, quarterly and current reports filed with the SEC and we undertake no obligation to update or revise any forward-looking statements.

Now I'll turn the call over to John Marchioni, our Chairman of the Board, President and Chief Executive Officer, who will be followed by Mark Wilcox, EVP and Chief Financial Officer. John?

John Marchioni

Thank you, Rohan. Good morning and thank you for joining us today. We noted strong earnings in the second quarter, continuing our long-term track record of consistently achieving our target operating returns while also generating excellent top line growth. Our annualized non-GAAP operating ROE was 11.4% in the second quarter and for the first six months our annualized operating ROE was 12.1%.