10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2019

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________________________to_____________________________

Commission File Number: 001-33067

SELECTIVE INSURANCE GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

New Jersey		22-2168890
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
40 Wantage Avenue
Branchville,	New Jersey	07890
(Address of Principal Executive Offices)		(Zip Code)

973	948-3000
(Registrant’s Telephone Number, Including Area Code)
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $2 per share	SIGI	NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒           No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer ☐
Non-accelerated filer ☐		Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                                              Yes ☐       No ☒   

As of July 19, 2019, there were 59,370,023 shares of common stock, par value $2.00 per share, outstanding. 

	SELECTIVE INSURANCE GROUP, INC.
	Table of Contents
		Page No.
PART I.   FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of June 30, 2019 (Unaudited) and December 31, 2018	1
	Unaudited Consolidated Statements of Income for the Quarter and Six Months Ended June 30, 2019 and 2018	2
	Unaudited Consolidated Statements of Comprehensive Income for the Quarter and Six Months Ended June 30, 2019 and 2018	3
	Unaudited Consolidated Statements of Stockholders' Equity for the Quarter and Six Months Ended June 30, 2019 and 2018	4
	Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018	5
	Notes to Unaudited Interim Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Forward-Looking Statements	23
	Introduction	24
	Critical Accounting Policies and Estimates	24
	Financial Highlights of Results for Second Quarter and Six Months 2019 and Second Quarter and Six Months 2018	25
	Results of Operations and Related Information by Segment	29
	Federal Income Taxes	38
	Financial Condition, Liquidity, and Capital Resources	38
	Ratings	40
	Off-Balance Sheet Arrangements	41
	Contractual Obligations, Contingent Liabilities, and Commitments	41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
PART II.  OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 6.	Exhibits	43
Signatures		43

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS	Unaudited
($ in thousands, except share amounts)	June 30, 2019			December 31, 2018
ASSETS
Investments:
Fixed income securities, held-to-maturity – at carrying value (fair value:  $33,855 – 2019; $38,317 – 2018)	$	32,364		37,110
Fixed income securities, available-for-sale – at fair value (amortized cost: $5,571,491 – 2019; $5,270,798 – 2018)	5,757,898			5,273,100
Equity securities – at fair value (cost:  $135,761 – 2019; $138,144 – 2018)	157,519			147,639
Short-term investments (at cost which approximates fair value)	291,365			323,864
Other investments	182,109			178,938
Total investments (Note 4 and 6)	6,421,255			5,960,651
Cash	504			505
Restricted cash	7,139			16,414
Interest and dividends due or accrued	43,137			41,620
Premiums receivable, net of allowance for uncollectible accounts of:  $7,800 – 2019; $9,400 – 2018	877,708			770,518
Reinsurance recoverable, net of allowance for uncollectible accounts of: $4,400 – 2019; $4,500 – 2018	577,274			549,172
Prepaid reinsurance premiums	163,530			157,723
Deferred federal income tax	14,698			53,540
Property and equipment – at cost, net of accumulated depreciation and amortization of: $219,670 – 2019; $211,657 – 2018	73,678			65,248
Deferred policy acquisition costs	273,128			252,612
Goodwill	7,849			7,849
Other assets	115,705			76,877
Total assets	$	8,575,605		7,952,729
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for loss and loss expense (Note 8)	$	4,027,052		3,893,868
Unearned premiums	1,536,891			1,431,932
Long-term debt	550,778			439,540
Current federal income tax	3,182			1,302
Accrued salaries and benefits	87,582			116,706
Other liabilities	310,576			277,579
Total liabilities	$	6,516,061		6,160,927
Stockholders’ Equity:
Preferred stock of $0 par value per share:	$	—		—
Authorized shares 5,000,000; no shares issued or outstanding
Common stock of $2 par value per share:
Authorized shares 360,000,000
Issued: 103,332,584 – 2019; 102,848,394 – 2018	206,665			205,697
Additional paid-in capital	407,382			390,315
Retained earnings	1,968,374			1,858,414
Accumulated other comprehensive income (loss) (Note 11)	68,506			(77,956	)
Treasury stock – at cost (shares:  44,004,476 – 2019; 43,899,840 – 2018)	(591,383		)	(584,668	)
Total stockholders’ equity	$	2,059,544		1,791,802
Commitments and contingencies
Total liabilities and stockholders’ equity	$	8,575,605		7,952,729

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

1

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarter ended June 30,					Six Months ended June 30,
($ in thousands, except per share amounts)	2019			2018		2019		2018
Revenues:
Net premiums earned	$	642,619		604,836		1,275,192		1,196,664
Net investment income earned	58,505			45,553		109,123		88,784
Net realized and unrealized gains (losses):
Net realized investment gains on disposals	2,883			54		6,327		4,785
Other-than-temporary impairments	(971		)	(2,821	)	(1,075	)	(4,033	)
Unrealized gains (losses) on equity securities	2,115			1,115		12,226		(12,953	)
Total net realized and unrealized gains (losses)	4,027			(1,652	)	17,478		(12,201	)
Other income	3,053			3,179		5,373		5,358
Total revenues	708,204			651,916		1,407,166		1,278,605
Expenses:
Loss and loss expense incurred	380,984			366,328		767,563		751,269
Amortization of deferred policy acquisition costs	133,401			122,661		263,075		243,754
Other insurance expenses	86,662			80,994		171,741		164,234
Interest expense	7,366			6,125		18,892		12,277
Corporate expenses	9,566			3,283		21,976		14,615
Total expenses	617,979			579,391		1,243,247		1,186,149
Income before federal income tax	90,225			72,525		163,919		92,456
Federal income tax expense:
Current	17,958			12,782		30,539		13,215
Deferred	1			924		(234	)	1,497
Total federal income tax expense	17,959			13,706		30,305		14,712
Net income	$	72,266		58,819		133,614		77,744
Earnings per share:
Basic net income	$	1.22		1.00		2.25		1.32
Diluted net income	$	1.21		0.99		2.23		1.30

The accompanying notes are an integral part of these unaudited interim consolidated financial statements. 

2

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Net income	$	72,266		58,819		133,614		77,744
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) arising during period	66,002			(18,955	)	147,315		(86,353	)
Amounts reclassified into net income:
Held-to-maturity securities	(17		)	(6	)	(24	)	(16	)
Realized (gains) losses on disposals and other-than-temporary impairments of available-for-sale securities	(1,027		)	2,267		(1,878	)	5,861
Total unrealized gains (losses) on investment securities	64,958			(16,694	)	145,413		(80,508	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	524			420		1,049		840
Total defined benefit pension and post-retirement plans	524			420		1,049		840
Other comprehensive income (loss)	65,482			(16,274	)	146,462		(79,668	)
Comprehensive income (loss)	$	137,748		42,545		280,076		(1,924	)

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

3

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	Quarter ended June 30,					Six Months ended June 30,
($ in thousands, except share and per share amounts)	2019			2018		2019		2018
Common stock:
Beginning of period	$	206,451		205,280		205,697		204,569
Dividend reinvestment plan	11			12		22		25
Stock purchase and compensation plans	203			168		946		866
End of period	206,665			205,460		206,665		205,460
Additional paid-in capital:
Beginning of period	398,881			375,155		390,315		367,717
Dividend reinvestment plan	364			333		729		686
Stock purchase and compensation plans	8,137			6,153		16,338		13,238
End of period	407,382			381,641		407,382		381,641
Retained earnings:
Beginning of period, as previously reported	1,908,119			1,731,832		1,858,414		1,698,613
Cumulative effect adjustment due to adoption of equity security guidance, net of tax	—			—		—		30,726
Cumulative effect adjustment due to adoption of stranded deferred tax guidance	—			—		—		(5,707	)
Cumulative effect adjustment due to adoption of lease guidance, net of tax (Note 2)	—			—		342		—
Balance at beginning of period, as adjusted	1,908,119			1,731,832		1,858,756		1,723,632
Net income	72,266			58,819		133,614		77,744
Dividends to stockholders	(12,011		)	(10,723	)	(23,996	)	(21,448	)
End of period	1,968,374			1,779,928		1,968,374		1,779,928
Accumulated other comprehensive income (loss):
Beginning of period, as previously reported	3,024			(68,243	)	(77,956	)	20,170
Cumulative effect adjustment due to adoption of equity security guidance, net of tax	—			—		—		(30,726	)
Cumulative effect adjustment due to adoption of stranded deferred tax guidance	—			—		—		5,707
Balance at beginning of period, as adjusted	3,024			(68,243	)	(77,956	)	(4,849	)
Other comprehensive income (loss)	65,482			(16,274	)	146,462		(79,668	)
End of period	68,506			(84,517	)	68,506		(84,517	)
Treasury stock:
Beginning of period	(591,253		)	(584,228	)	(584,668	)	(578,112	)
Acquisition of treasury stock	(130		)	(129	)	(6,715	)	(6,245	)
End of period	(591,383		)	(584,357	)	(591,383	)	(584,357	)
Total stockholders’ equity	$	2,059,544		1,698,155		2,059,544		1,698,155
Dividends declared per share to stockholders	$	0.20		0.18		0.40		0.36
Common stock, shares outstanding:
Beginning of period	59,222,905			58,747,505		58,948,554		58,495,122
Dividend reinvestment plan	5,218			6,075		10,912		12,373
Stock purchase and compensation plan	101,650			83,754		473,278		433,009
Acquisition of treasury stock	(1,665		)	(2,282	)	(104,636	)	(105,452	)
End of period	59,328,108			58,835,052		59,328,108		58,835,052

Selective Insurance Group, Inc. also has authorized, but not issued, 5,000,000 shares of preferred stock, without par value, of which 300,000 shares have been

designated Series A junior preferred stock, without par value.

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

4

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS	Six Months ended June 30,
($ in thousands)	2019			2018
Operating Activities
Net income	$	133,614		77,744
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	28,327			21,771
Stock-based compensation expense	11,654			9,636
Undistributed gains of equity method investments	(4,934		)	(1,628	)
Distributions in excess of current year income of equity method investments	2,157			1,450
Loss on disposal of fixed assets	—			29
Net realized and unrealized (gains) losses	(17,478		)	12,201
Changes in assets and liabilities:
Increase in reserve for loss and loss expense, net of reinsurance recoverable	105,082			82,978
Increase in unearned premiums, net of prepaid reinsurance	99,152			83,143
Decrease in net federal income taxes	1,698			9,887
Increase in premiums receivable	(107,190		)	(74,144	)
Increase in deferred policy acquisition costs	(20,516		)	(13,412	)
(Increase) decrease in interest and dividends due or accrued	(1,399		)	2
Decrease in accrued salaries and benefits	(29,124		)	(46,478	)
Increase in other assets	(22,320		)	(6,550	)
Decrease in other liabilities	(13,583		)	(64,372	)
Net cash provided by operating activities	165,140			92,257
Investing Activities
Purchase of fixed income securities, held-to-maturity	—			(3,650	)
Purchase of fixed income securities, available-for-sale	(891,241		)	(1,331,607	)
Purchase of equity securities	(24,699		)	(46,402	)
Purchase of other investments	(25,822		)	(26,032	)
Purchase of short-term investments	(3,258,852		)	(1,462,238	)
Sale of fixed income securities, available-for-sale	372,159			938,276
Sale of short-term investments	3,291,878			1,463,726
Redemption and maturities of fixed income securities, held-to-maturity	4,643			3,654
Redemption and maturities of fixed income securities, available-for-sale	236,705			311,590
Sale of equity securities	30,094			43,590
Sale of other investments	12,609			3,497
Distributions from other investments	14,489			15,927
Purchase of property and equipment	(16,985		)	(6,733	)
Net cash used in investing activities	(255,022		)	(96,402	)
Financing Activities
Dividends to stockholders	(22,940		)	(20,437	)
Acquisition of treasury stock	(6,715		)	(6,245	)
Net proceeds from stock purchase and compensation plans	5,100			3,930
Proceeds from borrowings	340,757			130,000
Repayments of borrowings	(235,000		)	(130,000	)
Repayments of finance lease obligations	(596		)	(1,333	)
Net cash provided by (used in) financing activities	80,606			(24,085	)
Net decrease in cash and restricted cash	(9,276		)	(28,230	)
Cash and restricted cash, beginning of year	16,919			44,710
Cash and restricted cash, end of period	$	7,643		16,480

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

5

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. Basis of Presentation

As used herein, the "Company,” “we,” “us,” or “our” refers to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or unless the context otherwise requires. Our interim unaudited consolidated financial statements (“Financial Statements”) have been prepared by us in conformity with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The preparation of the Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany accounts and transactions between the Parent and its subsidiaries are eliminated in consolidation.

Our Financial Statements reflect all adjustments that, in our opinion, are normal, recurring, and necessary for a fair presentation of our results of operations and financial condition. Our Financial Statements cover the second quarters ended June 30, 2019 (“Second Quarter 2019”) and June 30, 2018 (“Second Quarter 2018”) and the six-month periods ended June 30, 2019 (“Six Months 2019”) and June 30, 2018 (“Six Months 2018”). These Financial Statements do not include all of the information and disclosures required by GAAP and the SEC for audited annual financial statements. Additionally, results of operations for any interim period are not necessarily indicative of results for a full year. Consequently, our Financial Statements should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Annual Report”) filed with the SEC.

NOTE 2. Adoption of Accounting Pronouncements 

The Financial Accounting Standards Board ("FASB") issued new leasing guidance through ASU 2016-02, Leases, which was issued in February 2016, as well as additional implementation guidance that was issued in 2018 and 2019 (collectively referred to as "ASU 2016-02"). ASU 2016-02 requires all lessees to recognize assets and liabilities on their balance sheets for the rights and obligations created by leases with terms longer than 12 months. For leases with a term of 12 months or less, an accounting policy election is allowed to recognize lease expense on a straight-line basis over the lease term.

ASU 2016-02 allows for certain practical expedients, accounting policy elections, and a transition method election. We adopted practical expedients related to reassessing: (i) whether our existing contracts are, or contain, leases; (ii) lease classification for existing leases; and (iii) initial direct costs for existing leases. Additionally, we adopted accounting policy elections to: (i) aggregate lease and non-lease components of a contract into a single lease component; and (ii) expense short-term leases on a straight-line basis over the lease term. We adopted ASU 2016-02 effective January 1, 2019. See Note 12. "Leases" in this Form 10-Q for additional information regarding our leases and the impact of this guidance on our financial condition and results of operations.

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). The amendments in ASU 2018-07 expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. We adopted ASU 2018-07 in the first quarter of 2019 and it did not have a material impact on our financial condition or results of operations.

Pronouncements to be effective in the future

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, as well as additional implementation guidance issued in 2018 and 2019 (collectively referred to as “ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity ("HTM") debt securities, trade receivables, and reinsurance recoverables. ASU 2016-13 requires a valuation allowance to be calculated on financial assets, and that they be presented on the financial statements net of the valuation allowance. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. This ASU also made targeted changes to the impairment accounting model for available-for-sale ("AFS") debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. We are currently evaluating the impact of this guidance on our financial condition and results of operations.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements for fair value measurements. The modifications removed the following disclosure requirements: (i) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the

6

valuation processes for Level 3 fair value measurements. This ASU added the following disclosure requirements: (i) the changes in unrealized gains and losses for the period included in other comprehensive income ("OCI") for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-13 will not impact our financial condition or results of operations.

In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These modifications include: (i) removing the requirement to disclose the amount in accumulated other comprehensive income ("AOCI") expected to be recognized as components of net periodic benefit cost over the next fiscal year; and (ii) adding the requirement to disclose an explanation of the reasons for significant gains or losses related to changes in the benefit obligation for the period. This update is effective for fiscal years ending after December 15, 2020, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-14 will not impact our financial condition or results of operations.

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this guidance on our financial condition or results of operations.

NOTE 3. Statements of Cash Flows

Supplemental cash flow information was as follows:

	Six Months ended June 30,
($ in thousands)	2019		2018
Cash paid during the period for:
Interest	$	10,512	12,064
Federal income tax	28,000		4,193
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases1	3,994		—
Operating cash flows from financing leases	7		—
Financing cash flows from finance leases	596		1,333
Non-cash items:
Corporate actions related to fixed income securities, AFS2	25,104		32,133
Assets acquired under finance lease arrangements	814		—
Assets acquired under operating lease arrangements1	12,881		—
Non-cash purchase of property and equipment	—		18

¹Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets.

²Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits.

The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equate to the amount reported in the Consolidated Statements of Cash Flows:

($ in thousands)	June 30, 2019		December 31, 2018
Cash	$	504	505
Restricted cash	7,139		16,414
Total cash and restricted cash shown in the Statements of Cash Flows	$	7,643	16,919

Amounts included in restricted cash represent cash received from the National Flood Insurance Program ("NFIP"), which is restricted to pay flood claims under the Write Your Own program.

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NOTE 4. Investments

(a) Our HTM fixed income securities as of June 30, 2019 represented less than 1% of our total invested assets, down slightly compared to December 31, 2018. The carry value and net unrealized/unrecognized gains were $32.4 million and $1.6 million, respectively, at June 30, 2019, and $37.1 million and $1.3 million, respectively, at December 31, 2018. Included in the net unrealized/unrecognized gains were gross unrealized/unrecognized losses of $0.1 million at June 30, 2019 and $0.2 million at December 31, 2018.

Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the date a security is designated as HTM through the date of the balance sheet.

(b) Information regarding our AFS securities as of June 30, 2019 and December 31, 2018 was as follows:

June 30, 2019
($ in thousands)	Cost/ Amortized Cost		Unrealized Gains	Unrealized Losses		Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	143,461	3,683	(20	)	147,124
Foreign government	20,995		494	—		21,489
Obligations of states and political subdivisions	1,056,507		54,516	(6	)	1,111,017
Corporate securities	1,733,319		64,620	(4,402	)	1,793,537
Collateralized loan obligations and other asset-backed securities ("CLO and other ABS")	762,896		8,649	(3,941	)	767,604
Commercial mortgage-backed securities ("CMBS")	541,093		24,737	(237	)	565,593
Residential mortgage-backed securities (“RMBS”)	1,313,220		38,588	(274	)	1,351,534
Total AFS fixed income securities	$	5,571,491	195,287	(8,880	)	5,757,898

December 31, 2018
($ in thousands)	Cost/ Amortized Cost		Unrealized Gains	Unrealized Losses		Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	120,092	1,810	(592	)	121,310
Foreign government	23,202		36	(107	)	23,131
Obligations of states and political subdivisions	1,121,615		19,485	(2,631	)	1,138,469
Corporate securities	1,639,852		5,521	(27,965	)	1,617,408
CLO and other ABS	720,193		4,112	(6,943	)	717,362
CMBS	527,409		3,417	(3,748	)	527,078
RMBS	1,118,435		12,988	(3,081	)	1,128,342
Total AFS fixed income securities	$	5,270,798	47,369	(45,067	)	5,273,100

Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an other-than-temporary impairment ("OTTI") charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets.

(c) The severity of impairment on AFS securities in an unrealized/unrecognized loss position averaged approximately 1% of amortized cost at June 30, 2019 and approximately 2% at December 31, 2018. Quantitative information regarding these losses is provided below.

June 30, 2019	Less than 12 months				12 months or longer			Total
($ in thousands)	Fair Value		Unrealized Losses1		Fair Value	Unrealized Losses1		Fair Value	Unrealized Losses1
AFS fixed income securities:
U.S. government and government agencies	$	—	—		5,508	(20	)	5,508	(20	)
Obligations of states and political subdivisions	739		(6	)	—	—		739	(6	)
Corporate securities	94,964		(2,260	)	46,527	(2,142	)	141,491	(4,402	)
CLO and other ABS	231,823		(2,318	)	151,572	(1,623	)	383,395	(3,941	)
CMBS	59,639		(183	)	24,882	(54	)	84,521	(237	)
RMBS	34,107		(135	)	14,691	(139	)	48,798	(274	)
Total AFS fixed income securities	$	421,272	(4,902	)	243,180	(3,978	)	664,452	(8,880	)

8

December 31, 2018	Less than 12 months				12 months or longer			Total
($ in thousands)	Fair Value		Unrealized Losses1		Fair Value	Unrealized Losses1		Fair Value	Unrealized Losses1
AFS fixed income securities:
U.S. government and government agencies	$	6,693	(174	)	23,163	(418	)	29,856	(592	)
Foreign government	12,208		(93	)	1,482	(14	)	13,690	(107	)
Obligations of states and political subdivisions	196,798		(2,074	)	42,821	(557	)	239,619	(2,631	)
Corporate securities	1,041,952		(23,649	)	78,953	(4,316	)	1,120,905	(27,965	)
CLO and other ABS	516,106		(6,750	)	16,800	(193	)	532,906	(6,943	)
CMBS	229,338		(2,548	)	66,294	(1,200	)	295,632	(3,748	)
RMBS	139,338		(1,660	)	45,661	(1,421	)	184,999	(3,081	)
Total AFS fixed income securities	$	2,142,433	(36,948	)	275,174	(8,119	)	2,417,607	(45,067	)

  ¹ Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. 

The decrease in the unrealized loss position was due to: (i) lower interest rates, with a 73-basis point decrease in 2-year U.S. Treasury Note yields and a 68-basis point decrease in 10-year U.S. Treasury Note yields during Six Months 2019; and (ii) tightening option adjusted corporate credit spreads, with a 38-basis point decrease in the Bloomberg Barclays U.S. Aggregate Corporate Bond Index during Six Months 2019. We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. Considering these factors, and in accordance with our review of these securities under our OTTI policy, as described in Note 2. “Summary of Significant Accounting Policies” within Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report, we have concluded that they are temporarily impaired as we believe: (i) they will mature at par value; (ii) they have not incurred a credit impairment; and (iii) future values of these securities will fluctuate with changes in interest rates. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral.

(d) Fixed income securities at June 30, 2019, by contractual maturity, are shown below. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties.

Listed below are the contractual maturities of fixed income securities at June 30, 2019:

	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	280,140	9,480	9,526
Due after one year through five years	2,237,395		16,860	18,109
Due after five years through 10 years	3,065,577		6,024	6,220
Due after 10 years	174,786		—	—
Total fixed income securities	$	5,757,898	32,364	33,855

(e) The following table summarizes our other investment portfolio by strategy:

Other Investments	June 30, 2019				December 31, 2018
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	99,567	95,805	195,372	84,352	93,688	178,040
Private credit	35,103		113,133	148,236	41,682	81,453	123,135
Real assets	23,104		22,880	45,984	27,862	27,129	54,991
Total alternative investments	157,774		231,818	389,592	153,896	202,270	356,166
Other securities	24,335		—	24,335	25,042	—	25,042
Total other investments	$	182,109	231,818	413,927	178,938	202,270	381,208

¹The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. 

We are contractually committed to make additional investments up to the remaining commitments outlined above; however, we do not have a future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2019 or 2018.

9

The following table sets forth gross summarized financial information for our other investments portfolio, including the portion not owned by us. The majority of these investments are carried under the equity method of accounting. The last line of the table below reflects our share of the aggregate income or loss, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information for the three-month period ended March 31 is included in our Second Quarter results. This information is as follows:

Income Statement Information	Quarter ended June 30,				Six Months ended June 30,
($ in millions)	2019		2018		2019	2018
Net investment income (loss)	$	174.1	(6.4	)	24.1	(41.8	)
Realized gains	106.0		629.5		249.3	1,223.5
Net change in unrealized appreciation (depreciation)	2,223.7		(1,200.2	)	2,778.0	(738.6	)
Net income (loss)	$	2,503.8	(577.1	)	3,051.4	443.1
Insurance subsidiaries’ alternative investments income	$	7.3	1.9		7.9	3.5

(f) We have pledged certain AFS fixed income securities as collateral related to our relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, certain securities were on deposit with various state and regulatory agencies at June 30, 2019 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral.

The following table summarizes the market value of these securities at June 30, 2019:

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	22.8	22.8
Obligations of states and political subdivisions	—		—	3.9	3.9
Corporate securities	—		—	0.3	0.3
CMBS	7.3		21.1	—	28.4
RMBS	58.1		84.2	—	142.3
Total pledged as collateral	$	65.4	105.3	27.0	197.7

(g) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government-backed investments, as of June 30, 2019 or December 31, 2018.

(h) The components of pre-tax net investment income earned were as follows:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Fixed income securities	$	50,907		43,774		99,940		85,815
Equity securities	1,740			1,820		3,380		3,797
Short-term investments	1,759			611		3,803		1,134
Other investments	7,494			2,094		8,154		3,657
Investment expenses	(3,395		)	(2,746	)	(6,154	)	(5,619	)
Net investment income earned	$	58,505		45,553		109,123		88,784

(i) OTTI charges were $1.0 million and $2.8 million in Second Quarter 2019 and Second Quarter 2018, respectively, and $1.1 million and $4.0 million in Six Months 2019 and Six Months 2018, respectively. All of these charges were related to securities for which we had the intent to sell. For a discussion of our evaluation for OTTI, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report.

10

(j) Net realized and unrealized gains and losses (excluding OTTI charges) for Second Quarter 2019 and 2018 included the following:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Net realized gains (losses) on the disposals of securities:
Fixed income securities	$	2,061		(1,174	)	3,204			(4,509	)
Equity securities	851			1,226		3,131			9,295
Short-term investments	1			2		15			(1	)
Other investments	(30		)	—		(23		)	—
Net realized gains on the disposal of securities	2,883			54		6,327			4,785
OTTI charges	(971		)	(2,821	)	(1,075		)	(4,033	)
Net realized gains (losses)	1,912			(2,767	)	5,252			752
Unrealized gains (losses) recognized in income on equity securities	2,115			1,115		12,226			(12,953	)
Total net realized and unrealized investment gains (losses)	$	4,027		(1,652	)	$	17,478		(12,201	)

Unrealized gains (losses) recognized in income on equity securities, as reflected in the table above, include the following:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at June 30, 2019	$	2,394		2,301		11,817		(2,662	)
On securities sold in each respective period	(279		)	(1,186	)	409		(10,291	)
Total unrealized gains (losses) recognized in income on equity securities	$	2,115		1,115		$	12,226	(12,953	)

The components of net realized gains on disposals of securities for the periods indicated were as follows:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
HTM fixed income securities
Gains	$	1		—		1		2
Losses	(15		)	—		(15	)	—
AFS fixed income securities
Gains	2,643			1,971		4,487		4,594
Losses	(568		)	(3,145	)	(1,269	)	(9,105	)
Equity securities
Gains	958			1,226		3,238		9,625
Losses	(107		)	—		(107	)	(330	)
Short-term investments
Gains	2			2		16		3
Losses	(1		)	—		(1	)	(4	)
Other investments
Gains	—			—		7		—
Losses	(30		)	—		(30	)	—
Total net realized gains on disposals of securities	$	2,883		54		6,327		4,785

Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold.

Proceeds from the sales of AFS fixed income securities were $153.7 million and $262.9 million in Second Quarter 2019 and Second Quarter 2018, respectively, and $372.2 million and $938.3 million in Six Months 2019 and Six Months 2018 respectively. Proceeds from the sales of equity securities were $26.4 million and $2.9 million in Second Quarter 2019 and Second Quarter 2018, respectively, and $30.1 million and $43.6 million in Six Months 2019 and Six Months 2018 respectively.

11

NOTE 5. Indebtedness

The table below provides a summary of our outstanding debt at June 30, 2019 and December 31, 2018:

Outstanding Debt	Issuance Date	Maturity Date	Interest Rate		Original Amount		2019	Carry Value
($ in thousands)							Debt Discount and Unamortized Issuance Costs	June 30, 2019	December 31, 2018
Description
Long term
Issuance:
Senior Notes	3/1/2019	3/1/2049	5.375	%	$	300,000	9,141	290,859	—
Redemption:
Senior Notes	2/8/2013	2/9/2043	5.875	%	185,000		—	—	180,771
Other Outstanding:
FHLBI	12/16/2016	12/16/2026	3.03	%	60,000		—	60,000	60,000
FHLBNY	8/15/2016	8/16/2021	1.56	%	25,000		—	25,000	25,000
FHLBNY	7/21/2016	7/21/2021	1.61	%	25,000		—	25,000	25,000
Senior Notes	11/3/2005	11/1/2035	6.70	%	100,000		903	99,097	99,069
Senior Notes	11/16/2004	11/15/2034	7.25	%	50,000		287	49,713	49,700
Finance lease obligations1								1,109	—
Total long-term debt							10,331	550,778	439,540

¹ Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

Short-Term Debt Activity

On March 7, 2019, Selective Insurance Company of America (“SICA”) borrowed short-term funds of $50 million from the FHLBNY at an interest rate of 2.64%. This borrowing was repaid on March 28, 2019.

Long-Term Debt Activity

In the first quarter of 2019, we issued $300 million of 5.375% Senior Notes due 2049 at a discount of $5.9 million which, when coupled with debt issuance costs of approximately $3.3 million, resulted in net proceeds from the offering of $290.8 million. The 5.375% Senior Notes will pay interest on March 1 and September 1 of each year, beginning on September 1, 2019. A portion of the proceeds from this debt issuance was used to fully redeem the $185 million aggregate principal amount of our 5.875% Senior Notes due 2043, with the remaining $106 million being used for general corporate purposes. The 5.875% Senior Notes had pre-tax debt retirement costs of $4.2 million, or $3.3 million after tax, which was recorded in Interest expense on the Consolidated Statements of Income in the first quarter of 2019.

For detailed information on our indebtedness, see Note 10. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report.

12

NOTE 6. Fair Value Measurements

The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and estimated fair values of our financial liabilities as of June 30, 2019 and December 31, 2018:

	June 30, 2019			December 31, 2018
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount		Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	49,909		63,519	49,907		57,032
6.70% Senior Notes	99,471		118,482	99,462		107,075
5.875% Senior Notes	—		—	185,000		177,230
5.375% Senior Notes	294,116		329,785	—		—
1.61% borrowings from FHLBNY	25,000		24,756	25,000		24,218
1.56% borrowings from FHLBNY	25,000		24,720	25,000		24,162
3.03% borrowings from FHLBI	60,000		62,393	60,000		58,905
Subtotal long-term debt	553,496		623,655	444,369		448,622
Unamortized debt issuance costs	(3,827	)		(4,829	)
Finance lease obligations	1,109			—
Total long-term debt	550,778			439,540

For a discussion of our long-term debt activity in 2019, see Note 5. "Indebtedness" and for a discussion of the fair value hierarchy and techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at June 30, 2019 and December 31, 2018:

June 30, 2019			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1	Significant Other  Observable Inputs  (Level 2)1	Significant Unobservable  Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	147,124	71,406	75,718	—
Foreign government	21,489		—	21,489	—
Obligations of states and political subdivisions	1,111,017		—	1,111,017	—
Corporate securities	1,793,537		—	1,777,137	16,400
CLO and other ABS	767,604		—	750,184	17,420
CMBS	565,593		—	565,593	—
RMBS	1,351,534		—	1,351,534	—
Total AFS fixed income securities	5,757,898		71,406	5,652,672	33,820
Equity securities:
Common stock2	154,505		108,916	—	—
Preferred stock	3,014		3,014	—	—
Total equity securities	157,519		111,930	—	—
Short-term investments	291,365		289,959	1,406	—
Total assets measured at fair value	$	6,206,782	473,295	5,654,078	33,820

13

December 31, 2018			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in  Active Markets for Identical Assets/Liabilities (Level 1)1	Significant Other Observable Inputs  (Level 2)1	Significant Unobservable Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	121,310	78,381	42,929	—
Foreign government	23,131		—	23,131	—
Obligations of states and political subdivisions	1,138,469		—	1,138,469	—
Corporate securities	1,617,408		—	1,617,408	—
CLO and other ABS	717,362		—	709,953	7,409
CMBS	527,078		—	527,078	—
RMBS	1,128,342		—	1,128,342	—
Total AFS fixed income securities	5,273,100		78,381	5,187,310	7,409
Equity securities:
Common stock2	144,727		107,397	—	—
Preferred stock	2,912		2,912	—	—
Total equity securities	147,639		110,309	—	—
Short-term investments	323,864		321,370	2,494	—
Total assets measured at fair value	$	5,744,603	510,060	5,189,804	7,409

¹  There were no transfers of securities between Level 1 and Level 2.

²  Investments amounting to $45.6 million at June 30, 2019, and $23.7 million at December 31, 2018, were measured at fair value using net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

The following table provides a summary of Level 3 changes in Six Months 2019:

June 30, 2019
($ in thousands)	Corporate Securities		CLO and Other ABS		Total
Fair value, December 31, 2018	—		7,409		7,409
Total net (losses) gains for the period included in:
OCI	(19	)	(118	)	(137	)
Net income	—		244		244
Purchases	—		15,984		15,984
Sales	—		—		—
Issuances	—		—		—
Settlements	—		(40	)	(40	)
Transfers into Level 3	16,419		13,603		30,022
Transfers out of Level 3	—		(19,662	)	(19,662	)
Fair value, June 30, 2019	16,400		17,420		33,820

There were no material changes in the fair value of securities measured using Level 3 prices in Six Months 2018.

14

The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at June 30, 2019 and December 31, 2018:

June 30, 2019			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in  Active Markets for  Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:
Obligations of states and political subdivisions	$	14,503	—	14,503	—
Corporate securities	19,352		—	19,352	—
Total HTM fixed income securities	$	33,855	—	33,855	—
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	63,519	—	63,519	—
6.70% Senior Notes	118,482		—	118,482	—
5.375% Senior Notes	329,785		—	329,785	—
1.61% borrowings from FHLBNY	24,756		—	24,756	—
1.56% borrowings from FHLBNY	24,720		—	24,720	—
3.03% borrowings from FHLBI	62,393		—	62,393	—
Total long-term debt	$	623,655	—	623,655	—

December 31, 2018			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in  Active Markets for  Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:
Obligations of states and political subdivisions	$	17,969	—	17,969	—
Corporate securities	20,348		—	20,348	—
Total HTM fixed income securities	$	38,317	—	38,317	—
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	57,032	—	57,032	—
6.70% Senior Notes	107,075		—	107,075	—
5.875% Senior Notes	177,230		177,230	—	—
1.61% borrowings from FHLBNY	24,218		—	24,218	—
1.56% borrowings from FHLBNY	24,162		—	24,162	—
3.03% borrowings from FHLBI	58,905		—	58,905	—
Total long-term debt	$	448,622	177,230	271,392	—

15

NOTE 7. Reinsurance

The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information concerning reinsurance, refer to

Note 8. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report.

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Premiums written:
Direct	$	807,367		753,363		$	1,573,761		1,467,597
Assumed	5,333			6,536		11,888			12,807
Ceded	(111,303		)	(104,651	)	(211,305		)	(200,596	)
Net	$	701,397		655,248		$	1,374,344		1,279,808
Premiums earned:
Direct	$	740,348		696,723		$	1,468,385		1,380,456
Assumed	5,742			6,612		12,304			12,736
Ceded	(103,471		)	(98,499	)	(205,497		)	(196,528	)
Net	$	642,619		604,836		$	1,275,192		1,196,664
Loss and loss expenses incurred:
Direct	$	435,700		391,014		$	860,357		811,930
Assumed	4,348			2,364		9,613			10,368
Ceded	(59,064		)	(27,050	)	(102,407		)	(71,029	)
Net	$	380,984		366,328		$	767,563		751,269

Ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, losses, and loss expenses are ceded to the NFIP, are as follows:

Ceded to NFIP	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Ceded premiums written	$	(71,574	)	(66,341	)	$	(131,587	)	(123,010	)
Ceded premiums earned	(63,804		)	(60,143	)	(126,067		)	(119,134	)
Ceded loss and loss expenses incurred	(21,063		)	(10,261	)	(34,749		)	(25,980	)

Excluding the impact of our participation in the NFIP, ceded loss and loss expenses incurred increased in Second Quarter and Six Months 2019 compared to the respective prior year periods, due to one significant fire loss in Second Quarter 2019 that added $17.4 million to ceded loss and loss expenses.

NOTE 8. Reserve for Loss and Loss Expense

The table below provides a roll forward of reserve for loss and loss expense balances:

	Six Months ended June 30,
($ in thousands)	2019			2018
Gross reserve for loss and loss expense, at beginning of year	$	3,893,868		3,771,240
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year	537,388			585,855
Net reserve for loss and loss expense, at beginning of year	3,356,480			3,185,385
Incurred loss and loss expense for claims occurring in the:
Current year	783,938			756,855
Prior years	(16,375		)	(5,586	)
Total incurred loss and loss expense	767,563			751,269
Paid loss and loss expense for claims occurring in the:
Current year	210,374			214,169
Prior years	442,820			457,441
Total paid loss and loss expense	653,194			671,610
Net reserve for loss and loss expense, at end of period	3,470,849			3,265,044
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	556,203			539,321
Gross reserve for loss and loss expense at end of period	$	4,027,052		3,804,365

Prior year reserve development in Six Months 2019 of $16.4 million was primarily driven by favorable casualty reserve development of $20.0 million in our workers compensation line of business and $7.0 million in our general liability line of business. This was partially offset by $10.6 million of unfavorable property reserve development in Six Months 2019.

16

Prior year reserve development in Six Months 2018 of $5.6 million included $12.0 million of favorable casualty reserve development, partially offset by $6.4 million of unfavorable property reserve development. The favorable casualty reserve development included $33.0 million of development in our workers compensation line of business, partially offset by $15.0 million of unfavorable reserve development in our commercial automobile line of business and $6.0 million in our excess and surplus ("E&S") casualty lines.

NOTE 9. Segment Information

The results of our four reportable segments are evaluated as follows:

• Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated based on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and combined ratios.

• Our Investments segment is primarily evaluated based on after-tax net investment income and its ROE contribution. Also included in Investment segment results are after-tax net realized and unrealized gains and losses, which are not included in non-GAAP operating income.

In computing the results of each segment, we do not make adjustments for interest expense or corporate expenses. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments.

The following summaries present revenues (net investment income and net realized and unrealized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments:

Revenue by Segment	Quarter ended June 30,				Six Months ended June 30,
($ in thousands)	2019		2018		2019	2018
Standard Commercial Lines:
Net premiums earned:
Commercial automobile	$	136,338	122,104		267,524	240,335
Workers compensation	78,464		80,021		157,179	158,844
General liability	164,793		153,002		326,318	302,831
Commercial property	87,136		82,162		173,203	162,488
Businessowners’ policies	26,172		25,829		52,253	51,420
Bonds	8,967		8,335		17,871	16,469
Other	4,779		4,559		9,485	8,989
Miscellaneous income	2,718		2,882		4,762	4,708
Total Standard Commercial Lines revenue	509,367		478,894		1,008,595	946,084
Standard Personal Lines:
Net premiums earned:
Personal automobile	43,388		41,810		86,551	82,252
Homeowners	32,013		32,223		64,143	64,424
Other	1,712		1,644		3,726	3,257
Miscellaneous income	335		297		611	649
Total Standard Personal Lines revenue	77,448		75,974		155,031	150,582
E&S Lines:
Net premiums earned:
Casualty lines	44,756		39,379		89,284	77,919
Property lines	14,101		13,768		27,655	27,436
Miscellaneous income	—		—		—	1
Total E&S Lines revenue	58,857		53,147		116,939	105,356
Investments:
Net investment income	58,505		45,553		109,123	88,784
Net realized and unrealized investment gains (losses)	4,027		(1,652	)	17,478	(12,201	)
Total Investments revenue	62,532		43,901		126,601	76,583
Total revenues	$	708,204	651,916		1,407,166	1,278,605

17

Income Before and After Federal Income Tax	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019	2018
Standard Commercial Lines:
Underwriting gain, before federal income tax	$	37,143		41,016		62,958	47,820
Underwriting gain, after federal income tax	29,343			32,403		49,737	37,778
Combined ratio	92.7		%	91.4		93.7	94.9
ROE contribution	5.9			7.8		5.2	4.5
Standard Personal Lines:
Underwriting gain, before federal income tax	$	4,538		4,805		7,705	3,299
Underwriting gain, after federal income tax	3,585			3,796		6,087	2,606
Combined ratio	94.1		%	93.7		95.0	97.8
ROE contribution	0.7			0.9		0.6	0.3
E&S Lines:
Underwriting gain (loss), before federal income tax	$	2,944		(7,789	)	7,523	(8,354	)
Underwriting gain (loss), after federal income tax	2,326			(6,154	)	5,943	(6,600	)
Combined ratio	95.0		%	114.7		93.6	107.9
ROE contribution	0.5			(1.5	)	0.6	(0.8	)
Investments:
Net investment income	$	58,505		45,553		109,123	88,784
Net realized and unrealized investment gains (losses)	4,027			(1,652	)	17,478	(12,201	)
Total investment segment income, before federal income tax	62,532			43,901		126,601	76,583
Tax on investment segment income	11,729			7,617		23,849	12,843
Total investment segment income, after federal income tax	$	50,803		36,284		102,752	63,740
ROE contribution of after-tax net investment income	9.6			9.0		9.2	8.6

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Underwriting gain (loss)
Standard Commercial Lines	$	37,143		41,016		62,958		47,820
Standard Personal Lines	4,538			4,805		7,705		3,299
E&S Lines	2,944			(7,789	)	7,523		(8,354	)
Investment income	62,532			43,901		126,601		76,583
Total all segments	107,157			81,933		204,787		119,348
Interest expense	(7,366		)	(6,125	)	(18,892	)	(12,277	)
Corporate expenses	(9,566		)	(3,283	)	(21,976	)	(14,615	)
Income, before federal income tax	$	90,225		72,525		163,919		92,456

NOTE 10. Retirement Plans

SICA's primary pension plan is the Retirement Income Plan for Selective Insurance Company of America (the “Pension Plan”). SICA also sponsors the Supplemental Excess Retirement Plan (the “Excess Plan”) and a life insurance benefit plan. All plans are closed to new entrants and benefits ceased accruing under the Pension Plan and the Excess Plan after March 31, 2016. For more information concerning SICA's retirement plans, refer to Note 14. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report.

The following tables provide information regarding the Pension Plan:

	Pension Plan					Pension Plan
	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Net Periodic Pension Cost (Benefit):
Interest cost	$	3,376		3,095		6,753		6,190
Expected return on plan assets	(5,278		)	(5,681	)	(10,557	)	(11,363	)
Amortization of unrecognized net actuarial loss	643			493		1,287		987
Total net periodic pension cost (benefit)1	$	(1,259	)	(2,093	)	(2,517	)	(4,186	)

¹ The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income.

18

	Pension Plan
	Six Months ended June 30,
	2019		2018
Weighted-Average Expense Assumptions:
Discount rate	4.46	%	3.78	%
Effective interest rate for calculation of interest cost	4.12		3.46
Expected return on plan assets	6.50		6.36

NOTE 11. Comprehensive Income

The components of comprehensive income, both gross and net of tax, for Second Quarter and Six Months Ended 2019 and 2018 were as follows:

Second Quarter 2019
($ in thousands)	Gross			Tax		Net
Net income	$	90,225		17,959		72,266
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	83,546			17,544		66,002
Amounts reclassified into net income:
HTM securities	(21		)	(4	)	(17	)
Realized gains on disposals and OTTI of AFS securities	(1,300		)	(273	)	(1,027	)
Total unrealized gains on investment securities	82,225			17,267		64,958
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	664			140		524
Total defined benefit pension and post-retirement plans	664			140		524
Other comprehensive income	82,889			17,407		65,482
Comprehensive income	$	173,114		35,366		137,748
Second Quarter 2018
($ in thousands)	Gross			Tax		Net
Net income	$	72,525		13,706		58,819
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(23,993		)	(5,038	)	(18,955	)
Amounts reclassified into net income:
HTM securities	(8		)	(2	)	(6	)
Realized losses on disposals and OTTI of AFS securities	2,870			603		2,267
Total unrealized losses on investment securities	(21,131		)	(4,437	)	(16,694	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	531			111		420
Total defined benefit pension and post-retirement plans	531			111		420
Other comprehensive loss	(20,600		)	(4,326	)	(16,274	)
Comprehensive income	$	51,925		9,380		42,545

19

Six Months 2019
($ in thousands)	Gross			Tax		Net
Net income	$	163,919		30,305		133,614
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	186,472			39,157		147,315
Amounts reclassified into net income:
HTM securities	(30		)	(6	)	(24	)
Realized gains on disposals and OTTI of AFS securities	(2,377		)	(499	)	(1,878	)
Total unrealized gains on investment securities	184,065			38,652		145,413
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,328			279		1,049
Total defined benefit pension and post-retirement plans	1,328			279		1,049
Other comprehensive income	185,393			38,931		146,462
Comprehensive income	$	349,312		69,236		280,076
Six Months 2018
($ in thousands)	Gross			Tax		Net
Net income	$	92,456		14,712		77,744
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(109,308		)	(22,955	)	(86,353	)
Amounts reclassified into net income:
HTM securities	(20		)	(4	)	(16	)
Realized losses on disposals and OTTI of AFS securities	7,419			1,558		5,861
Total unrealized losses on investment securities	(101,909		)	(21,401	)	(80,508	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,063			223		840
Total defined benefit pension and post-retirement plans	1,063			223		840
Other comprehensive loss	(100,846		)	(21,178	)	(79,668	)
Comprehensive loss	$	(8,390	)	(6,466	)	(1,924	)

The balances of, and changes in, each component of AOCI (net of taxes) as of June 30, 2019 were as follows:

June 30, 2019										Defined Benefit Pension and Post-Retirement Plans
	Net Unrealized Gains (Losses) on Investment Securities											Total AOCI
($ in thousands)	OTTI Related			HTM Related		All Other		Investments Subtotal
Balance, December 31, 2018	$	(71	)	71		1,888		1,888		(79,844	)	(77,956	)
OCI before reclassifications	—			—		147,315		147,315		—		147,315
Amounts reclassified from AOCI	—			(24	)	(1,878	)	(1,902	)	1,049		(853	)
Net current period OCI	—			(24	)	145,437		145,413		1,049		146,462
Balance, June 30, 2019	$	(71	)	47		147,325		147,301		(78,795	)	68,506

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The reclassifications out of AOCI were as follows:

	Quarter ended June 30,					Six Months ended June 30,				Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2019			2018		2019		2018
HTM related
Unrealized losses on HTM disposals	$	(9	)	(7	)	(9	)	(6	)	Net realized and unrealized gains (losses)
Amortization of net unrealized gains on HTM securities	(12		)	(1	)	(21	)	(14	)	Net investment income earned
	(21		)	(8	)	(30	)	(20	)	Income before federal income tax
	4			2		6		4		Total federal income tax expense
	(17		)	(6	)	(24	)	(16	)	Net income
Realized (gains) losses on AFS and OTTI
Realized (gains) losses on AFS disposals and OTTI	(1,300		)	2,870		(2,377	)	7,419		Net realized and unrealized gains (losses)
	(1,300		)	2,870		(2,377	)	7,419		Income before federal income tax
	273			(603	)	499		(1,558	)	Total federal income tax expense
	(1,027		)	2,267		(1,878	)	5,861		Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	145			113		290		225		Loss and loss expense incurred
	519			418		1,038		838		Other insurance expenses
Total defined benefit pension and post-retirement life	664			531		1,328		1,063		Income before federal income tax
	(140		)	(111	)	(279	)	(223	)	Total federal income tax expense
	524			420		1,049		840		Net income
Total reclassifications for the period	$	(520	)	2,681		(853	)	6,685		Net income

NOTE 12. Leases

We have various operating leases for office space, equipment, and fleet vehicles. In addition, we have various finance leases for computer hardware. Such lease agreements, which expire at various dates through 2030, are generally renewed or replaced by similar leases.

We determine if an arrangement is a lease on the commencement date of the contract. Lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. The lease asset and liability are measured by the present value of the future minimum lease payments over the lease term. Our fleet vehicle leases include a residual value guarantee; however, it is not probable of being owed. Therefore, there is no impact to the lease liability or lease asset. To measure the present value, the discount rate available in the contract is used. If the discount rate is not readily determinable, our incremental borrowing rate is used. The lease asset is then adjusted to exclude lease incentives. We recognize variable lease payments in the period in which the obligation for those payments is incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is calculated using the straight-line method.

Upon adoption of ASU 2016-02 on January 1, 2019, we recorded operating lease right-of-use assets of $20.7 million with related lease liabilities of $21.0 million. The differential of $0.3 million was recognized, on an after-tax basis, as a cumulative-effect adjustment to the opening balance of retained earnings as of January 1, 2019. Financing lease right-of-use assets and the related lease liabilities were $0.9 million as of January 1, 2019. See Note 2. "Adoption of Accounting Pronouncements" in this Form 10-Q for additional information regarding ASU 2016-02 and accounting policy elections made.

21

The components of lease expense in Second Quarter and Six Months 2019 were as follows:

($ in thousands)	Quarter ended June 30, 2019			Six Months ended June 30, 2019
Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income	$	2,245		$	4,397
Finance lease cost:
Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income	315			599
Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income	7			7
Total finance lease cost	322			606
Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income	(120		)	668
Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income	437			1,175

The following table provides supplemental information regarding our operating and finance leases.

	June 30, 2019
Weighted-average remaining lease term
Operating leases	6	years
Finance leases	2
Weighted-average discount rate
Operating leases	3.4	%
Finance leases1	1.8

¹Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population.

Operating and finance lease asset and liability balances are included within the following line items on the Consolidated Balance Sheets:

($ in thousands)	June 30, 2019
Operating leases
Other assets	$	29,632
Other liabilities	30,336
Finance leases
Property and equipment - at cost, net of accumulated depreciation and amortization	1,106
Long-term debt	1,109

At June 30, 2019, the maturities of our lease liabilities were as follows:

($ in thousands)	Finance Leases		Operating Leases	Total
Year ended December 31,
2019 (excluding the six months ended June 30, 2019)	389		4,044	4,433
2020	448		7,737	8,185
2021	244		5,483	5,727
2022	53		3,912	3,965
2023	—		2,900	2,900
Thereafter	—		9,698	9,698
Total lease payments	1,134		33,774	34,908
Less: imputed interest	25		3,438	3,463
Total lease liabilities	$	1,109	30,336	31,445

22

At December 31, 2018, the maturities of our lease liabilities for capital and operating leases were as follows:

($ in thousands)	Capital Leases		Operating Leases	Total
2019	$	728	7,762	8,490
2020	141		7,355	7,496
2021	22		5,083	5,105
2022	—		3,641	3,641
2023	—		2,900	2,900
Thereafter	—		9,698	9,698
Total minimum payment required	$	891	36,439	37,330

Refer to Note. 3 "Statements of Cash Flows" in this Form 10-Q for supplemental cash and non-cash transactions included in the measurement of operating and finance lease liabilities.

NOTE 13. Litigation

In the ordinary course of conducting business, we are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving our ten insurance subsidiaries ("Insurance Subsidiaries") as either: (i) liability insurers defending or providing indemnity for third-party claims brought against our customers; or (ii) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid loss and loss expense reserves. We expect that any potential ultimate liability in such ordinary course claims litigation will not be material to our consolidated financial condition, results of operations, or cash flows after consideration of provisions made for potential losses and costs of defense.

From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies. Similarly, our Insurance Subsidiaries are also named from time-to-time in individual actions seeking extra-contractual damages, punitive damages, or penalties, some of which allege bad faith in the handling of insurance claims. We believe that we have valid defenses to these cases. We expect that any potential ultimate liability in any such lawsuit will not be material to our consolidated financial condition, after consideration of provisions made for estimated losses. Nonetheless, given the inherent unpredictability of litigation and the large or indeterminate amounts sought in certain of these actions, an adverse outcome in certain matters could possibly have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods.

As of June 30, 2019, we do not believe the Company was involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

As used herein, the "Company," "we," "us," or "our" refers to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or unless the context otherwise requires. In this Quarterly Report on Form 10-Q, we discuss and make statements regarding our intentions, beliefs, current expectations, and projections regarding our company’s future operations and performance. Such statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by words such as “anticipates,” “believes,” “expects,” “will,” “should,” and “intends” and their negatives. We caution prospective investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in our future performance. Factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, those discussed under Item 1A. “Risk Factors” below in Part II. “Other Information.” These risk factors may not be exhaustive. We operate in a continually changing business environment and new risk factors emerge from time to time. We can neither predict such new risk factors nor can we assess the impact, if any, of such new risk factors on our businesses or the extent to which any factor or combination of factors may cause actual results to differ materially from those expressed or implied in any forward-looking statements in this report. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this report might not occur. We make forward-looking statements based on currently available information and assume no obligation to update these statements due to changes in underlying factors, new information, future developments, or otherwise.

23

Introduction

The Parent, through its ten insurance subsidiaries, collectively referred to as the "Insurance Subsidiaries," offers property and casualty insurance products in the standard and excess and surplus ("E&S") marketplaces. We classify our business into four reportable segments, which are as follows:

• Standard Commercial Lines;

• Standard Personal Lines;

• E&S Lines; and

• Investments.

For further details regarding these segments, refer to Note 9. "Segment Information" in Item 1. "Financial Statements." of this Form 10-Q and Note 11. "Segment Information" in Item 8. "Financial Statements and Supplementary Data." of our Annual Report on Form 10-K for the year ended December 31, 2018 ("2018 Annual Report").

Our Standard Commercial and Standard Personal Lines products and services are written through nine of our Insurance Subsidiaries, some of which write flood business through the Write Your Own ("WYO") program of the National Flood Insurance Program ("NFIP"). Our E&S products and services are written through one subsidiary, Mesa Underwriters Specialty Insurance Company. This subsidiary provides us with a nationally-authorized non-admitted platform to offer insurance products and services to customers who have not obtained coverage in the standard marketplace.

The following is Management’s Discussion and Analysis (“MD&A”) of the consolidated results of operations and financial condition, as well as known trends and uncertainties, that may have a material impact in future periods. Consequently, investors should read the MD&A in conjunction with Item 1. "Financial Statements." of this Form 10-Q and the consolidated financial statements in our 2018 Annual Report filed with the U.S. Securities and Exchange Commission. Within this MD&A, all prior year amounts for non-catastrophe property losses, and the related ratios, have been adjusted to include the related loss expenses, which is consistent with the current year presentation.

In the MD&A, we will discuss and analyze the following:

• Critical Accounting Policies and Estimates;

• Financial Highlights of Results for the second quarters ended June 30, 2019 (“Second Quarter 2019”) and June 30, 2018 (“Second Quarter 2018”) and the six-month periods ended June 30, 2019 (“Six Months 2019”) and June 30, 2018 (“Six Months 2018”);

• Results of Operations and Related Information by Segment;

• Federal Income Taxes;

• Financial Condition, Liquidity, and Capital Resources;

• Ratings;

• Off-Balance Sheet Arrangements; and

• Contractual Obligations, Contingent Liabilities, and Commitments.

Critical Accounting Policies and Estimates

Our unaudited interim consolidated financial statements include amounts based on our informed estimates and judgments for those transactions that are not yet complete. Such estimates and judgments affect the reported amounts in the consolidated financial statements. Those estimates and judgments that were most critical to the preparation of the consolidated financial statements involved the following: (i) reserves for loss and loss expense; (ii) pension and post-retirement benefit plan actuarial assumptions; (iii) investment valuation and other-than-temporary-impairments ("OTTI"); and (iv) reinsurance. These estimates and judgments require the use of assumptions about matters that are highly uncertain and, therefore, are subject to change as facts and circumstances develop. If different estimates and judgments had been applied, materially different amounts might have been reported in the financial statements. For additional information regarding our critical accounting policies, refer to pages 37 through 46 of our 2018 Annual Report.

24

Financial Highlights of Results for Second Quarter and Six Months 2019 and Second Quarter and Six Months 2018¹ 

($ and shares in thousands, except per share amounts)	Quarter ended June 30,				Change % or Points			Six Months ended June 30,				Change % or Points
	2019			2018				2019			2018
Revenues	$	708,204		651,916	9		%	$	1,407,166		1,278,605	10		%
After-tax net investment income	47,622			37,589	27			88,945			73,379	21
After-tax underwriting income	35,254			30,045	17			61,767			33,784	83
Net income before federal income tax	90,225			72,525	24			163,919			92,456	77
Net income	72,266			58,819	23			133,614			77,744	72
Diluted net income per share	1.21			0.99	22			2.23			1.30	72
Diluted weighted-average outstanding shares	59,936			59,597	1			59,906			59,579	1
Combined ratio	93.1		%	93.7	(0.6	)	pts	93.9		%	96.4	(2.5	)	pts
Invested assets per dollar of stockholders' equity	$	3.12		3.34	(7	)	%	$	3.12		3.34	(7	)	%
After-tax yield on investments	3.0		%	2.7	0.3		pts	2.9		%	2.6	0.3		pts
Annualized return on equity ("ROE")	14.5			14.0	0.5			13.9			9.1	4.8
Non-Generally Accepted Accounting Principles ("GAAP") operating income2	$	69,085		60,124	15		%	$	123,105		87,383	41		%
Diluted non-GAAP operating income per share2	1.16			1.01	15			2.06			1.46	41
Annualized non-GAAP operating ROE2	13.9		%	14.3	(0.4	)	pts	12.8		%	10.2	2.6		pts

¹  Refer to the Glossary of Terms attached to our 2018 Annual Report as Exhibit 99.1 for definitions of terms used in this Form 10-Q.

²  Non-GAAP operating income is used as an important financial measure by us, analysts, and investors, because the realization of net investment gains and losses on sales of securities in any given period is largely discretionary as to timing. In addition, these net realized investment gains and losses, OTTI that are charged to earnings, unrealized gains and losses on equity securities, and the debt retirement costs could distort the analysis of trends.

Reconciliations of net income, net income per diluted share, and annualized ROE to non-GAAP operating income, non-GAAP operating income per diluted share, and annualized non-GAAP operating ROE, respectively, are provided in the tables below:

Reconciliation of net income to non-GAAP operating income	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Net income	$	72,266		58,819		133,614		77,744
Net realized and unrealized (gains) losses, before tax	(4,027		)	1,652		(17,478	)	12,201
Debt retirement costs, before tax	—			—		4,175		—
Tax on reconciling items, at 21%	846			(347	)	2,794		(2,562	)
Non-GAAP operating income	$	69,085		60,124		123,105		87,383

Reconciliation of net income per diluted share to non-GAAP operating income per diluted share	Quarter ended June 30,					Six Months ended June 30,
	2019			2018		2019		2018
Net income per diluted share	$	1.21		0.99		2.23		1.30
Net realized and unrealized (gains) losses, before tax	(0.06		)	0.03		(0.29	)	0.20
Debt retirement costs, before tax	—			—		0.07		—
Tax on reconciling items, at 21%	0.01			(0.01	)	0.05		(0.04	)
Non-GAAP operating income per diluted share	$	1.16		1.01		2.06		1.46

Reconciliation of annualized ROE to annualized non-GAAP operating ROE	Quarter ended June 30,				Six Months ended June 30,
	2019		2018		2019		2018
Annualized ROE	14.5	%	14.0		13.9		9.1
Net realized and unrealized (gains) losses, before tax	(0.8	)	0.4		(1.8	)	1.4
Debt retirement costs, before tax	—		—		0.4		—
Tax on reconciling items, at 21%	0.2		(0.1	)	0.3		(0.3	)
Annualized non-GAAP operating ROE	13.9	%	14.3		12.8		10.2

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The components of our annualized ROE are as follows:

Annualized ROE Components	Quarter ended June 30,				Change Points		Six Months ended June 30,				Change Points
	2019		2018				2019		2018
Standard Commercial Lines Segment	5.9	%	7.8		(1.9	)	5.2		4.5		0.7
Standard Personal Lines Segment	0.7		0.9		(0.2	)	0.6		0.3		0.3
E&S Lines Segment	0.5		(1.5	)	2.0		0.6		(0.8	)	1.4
Total insurance operations	7.1		7.2		(0.1	)	6.4		4.0		2.4
Investment income	9.6		9.0		0.6		9.2		8.6		0.6
Net realized and unrealized gains (losses)	0.6		(0.3	)	0.9		1.4		(1.1	)	2.5
Total investments segment	10.2		8.7		1.5		10.6		7.5		3.1
Other	(2.8	)	(1.9	)	(0.9	)	(3.1	)	(2.4	)	(0.7	)
Annualized ROE	14.5	%	14.0		0.5		13.9		9.1		4.8

The financial results this year continue to build on our five-year track record of consistently generating double-digit non-GAAP operating ROEs on an annual basis. At 12.8%, our Six Months 2019 non-GAAP operating ROEs is above our 2019 target of 12%.

Our stockholders' equity increased 15% in Six Months 2019, to $2.1 billion as of June 30, 2019. This was driven, in part, by appreciation in the value of our fixed income securities portfolio, which experienced unrealized after-tax gains of approximately $145 million over the first half of 2019.

Insurance Operations

Each of our insurance segments delivered profitable results in Second Quarter and Six Months 2019, contributing to a combined annualized ROE of 7.1% and 6.4% in the quarter and year-to-date periods, respectively. The Six Month 2019 annualized ROE increased 2.4 points compared to Six Months 2018, reflecting a decrease in our combined ratio of 2.5 points. This decrease was principally driven by lower levels of non-catastrophe property losses and higher levels of favorable prior year casualty reserve development, partially offset by higher catastrophe losses.

The following table provides quantitative information for analyzing the combined ratio:

All Lines	Quarter ended June 30,				Change % or Points			Six Months ended June 30,				Change % or Points
($ in thousands)	2019			2018				2019			2018
Insurance Operations Results:
Net premiums written ("NPW")	$	701,397		655,248	7		%	$	1,374,344		1,279,808	7		%
Net premiums earned (“NPE”)	642,619			604,836	6			1,275,192			1,196,664	7
Less:
Loss and loss expense incurred	380,984			366,328	4			767,563			751,269	2
Net underwriting expenses incurred	215,441			198,899	8			426,094			398,646	7
Dividends to policyholders	1,569			1,577	(1	)		3,349			3,984	(16	)
Underwriting income	$	44,625		38,032	17		%	$	78,186		42,765	83		%
Combined Ratios:
Loss and loss expense ratio	59.4		%	60.5	(1.1	)	pts	60.2		%	62.8	(2.6	)	pts
Underwriting expense ratio	33.5			32.9	0.6			33.4			33.3	0.1
Dividends to policyholders ratio	0.2			0.3	(0.1	)		0.3			0.3	—
Combined ratio	93.1			93.7	(0.6	)		93.9			96.4	(2.5	)

Our Second Quarter and Six Months 2019 results continue to reflect our efforts to: (i) achieve overall renewal pure price increases at levels that are in line with expected loss trend; (ii) generate new business; and (iii) improve the underlying profitability of our business through various underwriting and claims initiatives. We continue to execute on our strategy for disciplined NPW growth, with 7% growth in both Second Quarter and Six Months 2019 compared to the same prior year periods, primarily driven by our Standard Commercial Lines and E&S Lines segments. This growth was primarily due to increased new business, coupled with renewal pure price increases and strong retention. The Standard Commercial Lines growth was aided by the net appointment of 52 retail agents, excluding agency consolidations.

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Loss and Loss Expenses

The loss and loss expense ratio decreased 1.1 points in Second Quarter 2019 compared to Second Quarter 2018, and 2.6 points in Six Months 2019 compared to Six Months 2018, driven by the following:

	Second Quarter 2019						Second Quarter 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Change in Ratio
Catastrophe losses	$	29.5		4.6		pts	$	18.7		3.1		pts	1.5		pts
(Favorable) prior year casualty reserve development	(17.0		)	(2.6	)		(4.0		)	(0.7	)		(1.9	)
Non-catastrophe property loss and loss expenses	92.8			14.4			93.8			15.5			(1.1	)
Total	105.3			16.4			108.5			17.9			(1.5	)
	Six Months 2019						Six Months 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Change in Ratio
Catastrophe losses	$	50.3		3.9		pts	$	44.8		3.7		pts	0.2		pts
(Favorable) prior year casualty reserve development	(27.0		)	(2.1	)		(12.0		)	(1.0	)		(1.1	)
Non-catastrophe property loss and loss expenses	200.8			15.7			210.1			17.6			(1.9	)
Total	224.1			17.5			242.9			20.3			(2.8	)

Details of the prior year casualty reserve development were as follows:

(Favorable)/Unfavorable Prior Year Casualty Reserve Development	Quarter ended June 30,						Six Months ended June 30,
($ in millions)	2019				2018		2019		2018
General liability	$	(5.0	)		—		(7.0	)	—
Commercial automobile	—				7.0		—		15.0
Workers compensation	(12.0		)		(17.0	)	(20.0	)	(33.0	)
Total Standard Commercial Lines	(17.0		)		(10.0	)	(27.0	)	(18.0	)
Homeowners	—				—		—		—
Personal automobile	—				—		—		—
Total Standard Personal Lines	—				—		—		—
E&S	—				6.0		—		6.0
Total (favorable) prior year casualty reserve development	$	(17.0	)		(4.0	)	(27.0	)	(12.0	)
(Favorable) impact on loss ratio	(2.6		)	pts	(0.7	)	(2.1	)	(1.0	)

Offsetting favorable prior year casualty reserve development in both periods was unfavorable property development of $11.3 million and $10.6 million in Second Quarter and Six Months 2019, respectively, compared to unfavorable property development of $2.3 million and $6.4 million in Second Quarter and Six Months 2018. For additional qualitative discussions regarding reserve development, please refer to the insurance segment sections below in "Results of Operations and Related Information by Segment."

Underwriting Expenses

The underwriting expense ratio increased 0.6 points in Second Quarter 2019 compared to Second Quarter 2018, primarily due to a 0.7-point increase in profit-based compensation to our employees. The underwriting expense ratio remained relatively unchanged in Six Months 2019 compared to Six Months 2018.

Investments Segment

Net investment income, after tax, contributed 9.6 percentage points to ROE in Second Quarter 2019 and 9.2 points in Six Months 2019, compared to 9.0 points in Second Quarter 2018 and 8.6 points in Six Months 2018. The improvement in the current year periods reflect after-tax net investment income growth of 27% in Second Quarter 2019 and 21% in Six Months

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2019, compared to the same prior year periods, principally driven by: (i) cash flow from operations that was 17% of NPW in Second Quarter 2019 and 12% of NPW in Six Months 2019; (ii) higher yields on our core fixed income securities portfolio; and (iii) improved alternative investment returns in both the quarter and year-to-date periods. Also benefiting after-tax net investment income growth in Six Months 2019 was the $106 million of net proceeds from our 5.375% Senior Notes issuance in the first quarter of 2019. The after-tax earned income yield on the portfolio averaged 3.0% and 2.9% during Second Quarter and Six Months 2019, respectively, compared to 2.7% and 2.6% during Second Quarter and Six Months 2018, respectively.

Net realized and unrealized gains and losses contributed 0.6 points and 1.4 points to ROE in Second Quarter and Six Months 2019, respectively, an improvement of 0.9 points and 2.5 points over the comparable prior year periods. The significant driver of the improvement in Second Quarter 2019 compared to the prior year period was realized gains on our fixed income securities portfolio. These gains contributed $1.0 million to net income, or 0.2 points of ROE contribution, in Second Quarter 2019 compared to an after-tax loss of $2.3 million, or a reduction in ROE of 0.5 points, in Second Quarter 2018. The significant driver of the improvement in Six Months 2019 compared to the prior year period was unrealized gains on our equity portfolio. These gains contributed $9.7 million in Six Months 2019, with an ROE contribution of 1.0 points, while Six Months 2018 included an after-tax loss of $10.2 million, or 1.2 points of ROE reduction.

Other

Our interest and corporate expenses, which are primarily comprised of stock compensation expense at the holding company

level, reduced ROE by 2.8 points and 3.1 points in Second Quarter and Six Months 2019, respectively, compared to 1.9 points and 2.4 points in Second Quarter and Six Months 2018, respectively. The quarter-to-date and year-to-date variances were driven primarily by 0.9-point and 0.4-point increases, respectively, in stock compensation expense as a result of appreciation in the price of our common stock that has impacted the fair value of our liability awards. In addition, on March 1, 2019, Selective issued 5.375% Senior Notes with an aggregate principal amount of $300 million, the proceeds of which were used, in part, to redeem our 5.875% Senior Notes with an aggregate principal balance of $185 million that became callable last year. As a result of this redemption, we incurred after-tax debt retirement costs of $3.3 million, which reduced our ROE by 0.3 points in Six Months 2019. These costs have been excluded from non-GAAP operating income.

Outlook

We ended 2018 with record levels of capital and liquidity, and our strong Six Months 2019 results continued to improve our financial position. Additionally, during the first quarter of 2019 we executed our first institutional public debt offering with the issuance of $300 million aggregate principal amount of 5.375% Senior Notes. We used the net proceeds from this offering to redeem our then-outstanding $185 million aggregate principal amount of 5.875% Senior Notes, with the remaining $106 million of net proceeds being used for general corporate purposes.

For 2019, we have established a non-GAAP operating ROE target of 12%, which is an appropriate return for our shareholders based on our current estimated weighted average cost of capital, the current interest rate environment, and property and casualty insurance market conditions.

Our focus in 2019 will be on the following areas:

• Achieving written renewal pure price increases that are in line with expected loss trend. We achieved renewal pure price increases on our overall insurance operations of 3.5% in Six Months 2019.

• Delivering on our strategy for continued disciplined growth, which will be driven by the addition of new agents,

greater "share of wallet" in our agents’ offices, and geographic expansion. Our longer-term Standard Commercial Lines target is to attain a 3% market share in the states in which we operate, by appointing distribution partner relationships approximating 25% of their markets and seeking an average "share of wallet" of 12% across the relationships. This goal represents an additional premium opportunity in excess of $2.7 billion in our 27 state footprint. In Six Months 2019, we achieved NPW growth of 7%. Our current agency market share stands at over 20%, and our share of wallet is approximately 8% in our legacy states.

• Continuing to enhance the customer experience strategy that we have been highlighting over the past few years, including value-added technologies and services such as: (i) our “Selective^® Drive” program, which was first introduced to certain commercial automobile policyholders through our distribution partners in the fourth quarter of 2018; (ii) proactive communications in relation to product recalls, possible loss activity, policy changes, and risk management activities; (iii) technology usage to reduce claim cycle time, such as SWIFT claim-fast tracking and EZ Write; and (iv) fully digital self-service capabilities for our customers.

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• Improving profitability in our lines of business by: (i) generating overall renewal pure price increases that are in line with expected loss trend; (ii) actively managing the new and renewal books in targeted industry segments, which we expect will have a positive impact on profitability through business mix; (iii) deploying sophisticated claims tools, including enhanced modeling and segmentation strategies, which we expect will improve loss experience; and (iv) within our E&S segment, exiting some underperforming classes, while entering into new distribution relationships.

• Actively managing the investment portfolio to enhance after-tax yields while managing credit, duration, and liquidity

risk. There was a significant decline in interest rates in Six Months 2019, which demonstrates the need to maintain a strong focus on underwriting discipline to generate adequate returns on invested capital.

Our agile approach to driving underwriting, pricing and claims improvements is best demonstrated by our combined ratio that averaged 93.9% for the past five and a half year period. Our strong technical and underwriting capabilities, underwriting leverage of 1.4x, and proven track record of effectively managing renewal pricing and retention, position us well for continued success in this low interest rate environment. As we look to the remainder of 2019, we remain extremely pleased with our financial and strategic position. We are steadfastly focused on underwriting discipline as we execute on our various strategies to generate profitable growth. The investments we are making today in our franchise distribution model, sophisticated underwriting tools and technology, and overall customer experience in an omni-channel environment, will position us for continued long-term success. For 2019, A.M. Best Company's ("A.M. Best") "US Property/Casualty: 2019 Review & Preview" is currently forecasting a property and casualty industry statutory combined ratio of 101.2%, including 5 points of catastrophe losses, with a return on equity of 4.8%.

After two quarters of results, our full-year expectations are as follows:

• An improved GAAP combined ratio, excluding catastrophe losses, of 91.0%, down from our existing guidance of 92.0%. This assumes no additional prior-year casualty reserve development;

• Catastrophe losses of 3.5 points;

• After-tax net investment income of $180 million, which includes $13 million after-tax net investment income from our alternative investments. Overall after-tax net investment income expectation remains unchanged due to lower after-tax new money yields on our core fixed income securities portfolio;

• An overall effective tax rate of approximately 19%, which includes an effective tax rate of 18% for net investment income, reflecting a tax rate of 5.25% for tax-advantaged municipal bonds and a tax rate of 21% for all other items; and

• Weighted average shares of 60 million on a diluted basis.

Results of Operations and Related Information by Segment

Standard Commercial Lines Segment

	Quarter ended June 30,				Change % or Points			Six Months ended June 30,				Change % or Points
($ in thousands)	2019			2018				2019			2018
Insurance Segments Results:
NPW	$	557,379		514,930	8		%	$	1,104,062		1,024,006	8		%
NPE	506,649			476,012	6			1,003,833			941,376	7
Less:
Loss and loss expense incurred	293,152			273,934	7			591,961			567,440	4
Net underwriting expenses incurred	174,785			159,485	10			345,565			322,132	7
Dividends to policyholders	1,569			1,577	(1	)		3,349			3,984	(16	)
Underwriting income	$	37,143		41,016	(9	)	%	$	62,958		47,820	32		%
Combined Ratios:
Loss and loss expense ratio	57.9		%	57.6	0.3		pts	59.0		%	60.3	(1.3	)	pts
Underwriting expense ratio	34.5			33.5	1.0			34.4			34.2	0.2
Dividends to policyholders ratio	0.3			0.3	—			0.3			0.4	(0.1	)
Combined ratio	92.7			91.4	1.3			93.7			94.9	(1.2	)

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The increases in NPW in the quarter and year-to-date periods reflected in the table above were driven by: (i) direct new business; and (ii) renewal pure price increases.

	Quarter ended June 30,				Change % or Points			Six Months ended June 30,			Change % or Points
($ in millions)	2019			2018				2019		2018
Direct new business	$	110.7		101.1	9		%	219.7		199.0	10		%
Renewal pure price increases	3.1			3.5	(0.4	)		3.2		3.4	(0.2	)
Retention	83		%	84	(1	)	pts	83	%	84	(1	)	pts

The loss and loss expense ratio remained relatively flat in Second Quarter 2019 compared to Second Quarter 2018, and decreased 1.3 points in Six Months 2019 compared to Six Months 2018, and included the following:

	Second Quarter 2019						Second Quarter 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Change in Ratio
Catastrophe losses	$	21.3		4.2		pts	$	10.1		2.1		pts	2.1		pts
Non-catastrophe property loss and loss expenses	62.8			12.4			63.8			13.4			(1.0	)
(Favorable) prior year casualty reserve development	(17.0		)	(3.4	)		(10.0		)	(2.1	)		(1.3	)
Total	67.1			13.2			63.9			13.4			(0.2	)
	Six Months 2019						Six Months 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Change in Ratio
Catastrophe losses	$	37.3		3.7		pts	$	29.9		3.2		pts	0.5		pts
Non-catastrophe property loss and loss expenses	137.1			13.7			141.2			15.0			(1.3	)
(Favorable) prior year casualty reserve development	(27.0		)	(2.7	)		(18.0		)	(1.9	)		(0.8	)
Total	147.4			14.7			153.1			16.3			(1.6	)

For additional information regarding favorable prior year casualty reserve development by line of business, see the "Financial Highlights of Results for Second Quarter and Six Months 2019 and Second Quarter and Six Months 2018" section above and the line of business discussions below.

There was a 1.0-point increase in the underwriting expense ratio in Second Quarter 2019 compared to Second Quarter 2018, and a 0.2-point increase in the underwriting expense ratio in Six Months 2019 compared to Six Months 2018. The primary driver was increased profit-based compensation to our employees of 0.7 points in the quarter and 0.3 points in the year-to-date period.

The following is a discussion of our most significant Standard Commercial Lines of business:

General Liability
	Quarter ended June 30,				Change % or Points			Six Months ended June 30,					Change % or Points
($ in thousands)	2019			2018				2019			2018
NPW	$	185,278		170,370	9		%	$	363,977		334,879		9		%
Direct new business	32,314			29,725	9			64,499			59,442		9
Retention	84		%	84	—		pts	83		%	84		(1	)	pts
Renewal pure price increases	2.3			2.4	(0.1	)		2.4			2.5		(0.1	)
NPE	$	164,793		153,002	8		%	$	326,318		302,831		8		%
Underwriting income	20,784			15,758	32			39,833			29,700		34
Combined ratio	87.4		%	89.7	(2.3	)	pts	87.8		%	90.2	%	(2.4	)	pts
% of total Standard Commercial Lines NPW	33			33				33			33

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The improvement in the combined ratio in both Second Quarter 2019 compared to Second Quarter 2018 and Six Months 2019 compared to Six Months 2018 was driven by the impact of favorable prior year casualty reserve development, as illustrated in the table below:

	Second Quarter 2019						Second Quarter 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Combined Ratio			Loss and Loss Expense Incurred		Impact on Combined Ratio		Change Points
(Favorable) prior year casualty reserve development	$	(5.0	)	(3.0	)	pts	$	—	—	pts	(3.0	)	pts
	Six Months 2019						Six Months 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Combined Ratio			Loss and Loss Expense Incurred		Impact on Combined Ratio		Change Points
(Favorable) prior year casualty reserve development	$	(7.0	)	(2.1	)	pts	$	—	—	pts	(2.1	)	pts

The Second Quarter and Six Months 2019 reserve development was primarily attributable to favorable reserve development on loss severities in accident years 2015 and 2016.

Partially offsetting the favorable reserve development in Second Quarter 2019 compared to Second Quarter 2018 was a 0.6-point increase in the underwriting expense ratio, driven by higher employee-related costs as mentioned in the overall Standard Commercial Lines Segment discussion above.

Commercial Automobile
	Quarter ended June 30,						Change % or Points			Six Months ended June 30,						Change % or Points
($ in thousands)	2019				2018					2019				2018
NPW	$	155,191			134,082		16		%	$	302,436			263,927		15		%
Direct new business	28,554				25,016		14			56,744				47,305		20
Retention	82			%	84		(2	)	pts	81			%	84		(3	)	pts
Renewal pure price increases	7.4				7.5		(0.1	)		7.3				7.4		(0.1	)
NPE	$	136,338			122,104		12		%	$	267,524			240,335		11		%
Underwriting loss	(8,800		)		(10,773	)	18			(17,521		)		(24,137	)	27
Combined ratio	106.5			%	108.8		(2.3	)	pts	106.5			%	110.0		(3.5	)	pts
% of total Standard Commercial Lines NPW	28				26					27				26

The increases in NPW shown in the table above reflect renewal pure price increases on this line, coupled with an increase in new business as we continue to write commercial automobile policies as part of our overall customer accounts.

The combined ratio improved 2.3 points in Second Quarter 2019 compared to Second Quarter 2018, and 3.5 points in Six Months 2019 compared to Six Months 2018, driven by the following:

	Second Quarter 2019				Second Quarter 2018
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio		Change in Ratio
Non-catastrophe property loss and loss expenses	$	23.9	17.5	pts	$	21.1	17.3	pts	0.2		pts
Unfavorable prior year casualty reserve development	—		—		7.0		5.7		(5.7	)
Catastrophe losses	0.9		0.7		0.7		0.5		0.2
Total	24.8		18.2		28.8		23.5		(5.3	)

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	Six Months 2019				Six Months 2018
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio		Change in Ratio
Non-catastrophe property loss and loss expenses	$	48.9	18.3	pts	$	43.7	18.2	pts	0.1		pts
Unfavorable prior year casualty reserve development	—		—		15.0		6.2		(6.2	)
Catastrophe losses	1.1		0.4		1.5		0.6		(0.2	)
Total	50.0		18.7		60.2		25.0		(6.3	)

Partially offsetting the items above are current year loss costs that increased by 1.8 points in the quarter, and 3.1 points in the year-to-date period, compared to the respective prior year periods. These increases reflect the elevated frequencies and severities we experienced during 2018 that are reflected in our 2019 accident year loss expectations. This line of business did not experience any prior year casualty reserve development this year. The unfavorable development in Second Quarter 2018 and Six Months 2018 was primarily due to higher claim frequencies, and to some extent severities, in accident years 2015 through 2017.

Partially offsetting the improvements in the table above for Second Quarter 2019 compared to Second Quarter 2018 was a 1.1-point increase in the underwriting expense ratio, driven by higher employee-related costs as mentioned in the overall Standard Commercial Lines Segment discussion above.

This line of business remains an area of focus for both us and the industry, as profitability challenges continue to generate combined ratios that are higher than target levels. To address profitability in this line, we have been actively implementing price increases, which averaged 7.4% in Second Quarter 2019 and 7.3% in Six Months 2019. In addition to price increases, we have also been actively managing our new and renewal business in targeted industry segments, which we expect will have a positive impact on profitability through business mix improvement. Over the longer term, we expect accounts that adopt our recently introduced Selective^® Drive program will have greater insight to their commercial auto risks and have the potential to reduce their loss experience.

Workers Compensation
	Quarter ended June 30,					Change % or Points			Six Months ended June 30,					Change % or Points
($ in thousands)	2019				2018				2019				2018
NPW	$	81,438			81,995	(1	)	%	$	166,503			170,901	(3	)	%
Direct new business	17,791				16,070	11			34,739				33,418	4
Retention	83			%	84	(1	)	pts	83			%	84	(1	)	pts
Renewal pure price (decreases) increases	(3.9		)		0.3	(4.2	)		(2.8		)		0.1	(2.9	)
NPE	$	78,464			80,021	(2	)	%	$	157,179			158,844	(1	)	%
Underwriting income	14,514				21,795	(33	)		25,233				38,221	(34	)
Combined ratio	81.5			%	72.8	8.7		pts	83.9			%	75.9	8.0		pts
% of total Standard Commercial Lines NPW	15				16				15				17

The increases in the combined ratio in Second Quarter and Six Months 2019 compared to the same prior year periods were driven by less favorable prior year casualty reserve development, as follows:

	Second Quarter 2019						Second Quarter 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Combined Ratio			Loss and Loss Expense Incurred			Impact on Combined Ratio			Change Points
(Favorable) prior year casualty reserve development	$	(12.0	)	(15.3	)	pts	$	(17.0	)	(21.2	)	pts	5.9	pts
	Six Months 2019						Six Months 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Combined Ratio			Loss and Loss Expense Incurred			Impact on Combined Ratio			Change Points
(Favorable) prior year casualty reserve development	$	(20.0	)	(12.7	)	pts	$	(33.0	)	(20.8	)	pts	8.1	pts

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The development in both Second Quarter and Six Months 2019 was primarily due to lower severities in accident years 2017 and prior, and the development in both Second Quarter and Six Months 2018 was primarily due to lower severities in accident years 2016 and prior.

Additionally, there was an increase in the underwriting expense ratio of 2.6 points in Second Quarter 2019, compared to Second Quarter 2018, reflecting: (i) higher employee-related costs, as mentioned in the overall Standard Commercial Lines Segment discussion above; and (ii) an increase in insurance-related assessments specific to this line of business.

While reported profitability on this line remains strong due to favorable emergence on prior year reserves, current accident year margins do not support the continued negative pricing levels that are being set by the National Council on Compensation Insurance and independent state rating bureaus. A reduction or reversal in the trend of favorable frequencies and severities has the potential to significantly increase this line's combined ratio, which we are monitoring closely.

Commercial Property
	Quarter ended June 30,				Change % or Points			Six Months ended June 30,					Change % or Points
($ in thousands)	2019			2018				2019			2018
NPW	$	94,439		88,376	7		%	$	187,468		173,581		8		%
Direct new business	21,391			19,928	7			42,433			39,412		8
Retention	83		%	82	1		pts	82		%	82		—		pts
Renewal pure price increases	3.6			3.2	0.4			3.6			2.8		0.8
NPE	$	87,136		82,162	6		%	$	173,203		162,488		7		%
Underwriting (loss) income	1,372			9,944	(86	)		3,275			(2,497	)	231
Combined ratio	98.4		%	87.9	10.5		pts	98.1		%	101.5		(3.4	)	pts
% of total Standard Commercial Lines NPW	17			17				17			17

The increase in the combined ratio in Second Quarter 2019 compared to Second Quarter 2018, and the decrease in the combined ratio in Six Months 2019 compared to Six Months 2018, were driven by the following:

	Second Quarter 2019				Second Quarter 2018
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio		Change % or Points
Catastrophe losses	$	18.7	21.5	pts	$	7.8	9.4	pts	12.1		pts
Non-catastrophe property loss and loss expenses	34.0		39.0		33.4		40.7		(1.7	)
Total	52.7		60.5		41.2		50.1		10.4
	Six Months 2019				Six Months 2018
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio		Change % or Points
Catastrophe losses	$	31.2	18.0	pts	$	22.5	13.9	pts	4.1		pts
Non-catastrophe property loss and loss expenses	73.1		42.2		80.6		49.6		(7.4	)
Total	104.3		60.2		103.1		63.5		(3.3	)

Higher catastrophe losses in Second Quarter 2019 compared to Second Quarter 2018 included one storm that impacted the Midwestern states in our footprint, adding 9.5 points to the loss and loss expense ratio in the current quarter. On a year-to-date basis, non-catastrophe property losses were lower in Six Month 2019 compared to Six Months 2018, as non-catastrophe property losses in the first quarter of 2018 were elevated by a January deep freeze in our footprint states and a relatively large number of severe fire losses.

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Standard Personal Lines Segment

	Quarter ended June 30,				Change % or Points			Six Months ended June 30,				Change % or Points
($ in thousands)	2019			2018				2019			2018
Insurance Segments Results:
NPW	$	82,709		83,934	(1	)	%	$	152,078		151,795	—		%
NPE	77,113			75,677	2			154,420			149,933	3
Less:
Loss and loss expense incurred	50,554			49,260	3			103,624			104,699	(1	)
Net underwriting expenses incurred	22,021			21,612	2			43,091			41,935	3
Underwriting income	$	4,538		4,805	(6	)	%	$	7,705		3,299	134		%
Combined Ratios:
Loss and loss expense ratio	65.5		%	65.1	0.4		pts	67.1		%	69.8	(2.7	)	pts
Underwriting expense ratio	28.6			28.6	—			27.9			28.0	(0.1	)
Combined ratio	94.1			93.7	0.4			95.0			97.8	(2.8	)

NPW was down slightly in Second Quarter 2019 compared to Second Quarter 2018, and was relatively flat in the year-to-date comparative periods, reflecting the impact of a decrease in direct new business as a result of a competitive marketplace. Retention has decreased in both Second Quarter and Six Months 2019 compared to the same periods last year, as we continue to achieve renewal pure price increases on our personal automobile line of business in excess of loss trends, while the industry has seen a softening in rate activity.  Additionally, the deteriorating competitive position on our automobile business has led to lower new homeowners business, as we typically write policies at the account level, which include both automobile and homeowners coverage.

	Quarter ended June 30,				Change % or Points			Six Months ended June 30,				Change % or Points
($ in millions)	2019			2018				2019			2018
Direct new business	$	10.5		15.9	(34	)	%	$	20.9		27.7	(25	)	%
Retention	84		%	85	(1	)	pts	83		%	85	(2	)	pts
Renewal pure price increases	5.6			3.4	2.2			5.4			3.6	1.8

The loss and loss expense ratio increased 0.4 points in Second Quarter 2019 compared to Second Quarter 2018, and decreased 2.7 points in Six Months 2019 compared to Six Months 2018. The drivers of these fluctuations are as follows:

	Second Quarter 2019						Second Quarter 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Change in Ratio
Non-catastrophe property loss and loss expenses	$	24.5		31.7		pts	$	23.3		30.8		pts	0.9		pts
Catastrophe losses	6.1			7.9			5.8			7.7			0.2
Flood claims handling fees	(0.9		)	(1.2	)		(0.7		)	(1.1	)		(0.1	)
Total	29.7			38.4			28.4			37.4			1.0
	Six Months 2019						Six Months 2018
($ in millions)	Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Loss and Loss Expense Incurred			Impact on Loss and Loss Expense Ratio			Change in Ratio
Non-catastrophe property loss and loss expenses	$	53.6		34.7			$	52.3		34.9			(0.2	)
Catastrophe losses	10.2			6.6		pts	12.7			8.4		pts	(1.8	)	pts
Flood claims handling fees	(1.7		)	(1.1	)		(1.5		)	(1.0	)		(0.1	)
Total	8.5			5.5			11.2			7.4			(1.9	)

In addition, current year loss costs were 0.7 points lower in both Second Quarter and Six Months 2019 compared to the prior year periods, reflecting rate increases in excess of expected loss trend.

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E&S Lines Segment

	Quarter ended June 30,					Change % or Points			Six Months ended June 30,					Change % or Points
($ in thousands)	2019			2018					2019			2018
Insurance Segments Results:
NPW	$	61,309		56,384		9		%	$	118,204		104,007		14		%
NPE	58,857			53,147		11			116,939			105,355		11
Less:
Loss and loss expense incurred	37,278			43,134		(14	)		71,978			79,130		(9	)
Net underwriting expenses incurred	18,635			17,802		5			37,438			34,579		8
Underwriting (loss) income	$	2,944		(7,789	)	138		%	$	7,523		(8,354	)	190		%
Combined Ratios:
Loss and loss expense ratio	63.3		%	81.2		(17.9	)	pts	61.6		%	75.1		(13.5	)	pts
Underwriting expense ratio	31.7			33.5		(1.8	)		32.0			32.8		(0.8	)
Combined ratio	95.0			114.7		(19.7	)		93.6			107.9		(14.3	)

NPW increased 9% in the quarter and 14% year-to-date compared to the respective prior year periods, driven by increases in new business, as outlined in the table below. Over the past two-year period, we have taken steps to exit certain underperforming classes of E&S business, while entering into new distribution relationships. The premium growth this year continues to reflect the impact of one particularly large relationship that we reestablished in Second Quarter 2018. We do not anticipate the same level of year-over-year growth going forward from this relationship, as it has now been in place for a full year.

Quantitative information on the premium in this segment is as follows:

	Quarter ended June 30,				Change % or Points			Six Months ended June 30,				Change % or Points
($ in millions)	2019			2018				2019			2018
Direct new business	$	25.1		20.3	24		%	$	50.7		38.5	32		%
Renewal pure price increases1	2.8		%	5.3	(2.5	)	pts	4.5		%	5.1	(0.6	)	pts

¹E&S casualty renewal price increases were 2.3% for Second Quarter 2019, compared to 6.0% for Second Quarter 2018, and 4.3% for Six Months 2019, compared to 6.2% for Six Months 2018.

While the relatively small size of this segment can lead to some volatility in results, improved underwriting, pricing, and claims outcomes have us on track to achieve our risk-adjusted profitability target for this segment by the end of 2020. The combined ratio improved 19.7 points in Second Quarter 2019 compared to Second Quarter 2018, and 14.3 points in Six Months 2019 compared to Six Months 2018, primarily due to the items outlined in the tables below:

	Second Quarter 2019				Second Quarter 2018
($ in millions)	Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Change in Ratio
Unfavorable prior year casualty reserve development	—		—		6.0		11.3		(11.3	)
Non-catastrophe property loss and loss expenses	5.5		9.4		6.7		12.6		(3.2	)
Catastrophe losses	2.0		3.4		2.8		5.3		(1.9	)
Total	7.5		12.8		15.5		29.2		(16.4	)
	Six Months 2019				Six Months 2018
($ in millions)	Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Change in Ratio
Unfavorable prior year casualty reserve development	$	—	—	pts	$	6.0	5.7	pts	(5.7	)	pts
Non-catastrophe property loss and loss expenses	10.0		8.6		16.6		15.7		(7.1	)
Catastrophe losses	2.8		2.4		2.2		2.1		0.3
Total	12.8		11.0		24.8		23.5		(12.5	)

Additionally, current year loss costs were 2.2 points lower in both Second Quarter and Six Months 2019 compared to the prior year periods.

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Reinsurance

We have successfully completed negotiations of our July 1, 2019 excess of loss treaties, which provide coverage for our Standard Commercial Lines, Standard Personal Lines, and E&S Lines. These treaties were renewed with the same structure as the expiring treaties, with an underwriting year ceded premium increase estimated at $10 million, or 14%, which reflects an increase in our estimated subject matter premium and a risk-adjusted price increase for our property treaty, driven by heavy loss activity from the 2018 underwriting year.

Details of the treaties are as follows:

Property Excess of Loss

Our property excess of loss treaty ("Property Treaty") provides protection against large individual property losses with $58.0 million of coverage in excess of a $2.0 million retention:

• The per occurrence cap on the first and second layers is $84.0 million.

• The first layer has unlimited reinstatements and a limit of $8.0 million in excess of $2.0 million.

• The annual aggregate limit, for the $30.0 million in excess of $10.0 million second layer, is $120.0 million.

• A third layer has a limit of $20.0 million in excess of $40.0 million, with an annual aggregate limit of approximately $75.0 million.

• The Property Treaty excludes nuclear, biological, chemical, and radiological ("NBCR") terrorism losses.

Casualty Excess of Loss

Our casualty excess of loss treaty (“Casualty Treaty”) provides protection against large individual casualty losses with $88.0 million of coverage in excess of a $2.0 million retention:

• The first through sixth layers provide coverage for 100% of up to $88.0 million in excess of a $2.0 million retention.

• The Casualty Treaty includes a $25.0 million limit, per life, on our workers compensation business, which remains unchanged from the prior treaty.

• The Casualty Treaty excludes NBCR terrorism losses and has annual aggregate non-NBCR terrorism limits of $208.0 million.

Investments

The primary objective of the investment portfolio is to maximize after-tax net investment income and the overall total return of the portfolio, while maintaining a high credit quality core fixed income securities portfolio and managing our duration risk profile. The effective duration of the fixed income securities portfolio as of June 30, 2019 was 3.5 years, compared to the Insurance Subsidiaries’ liability duration as of December 31, 2018 of approximately 3.6 years. The effective duration of the fixed income securities portfolio is monitored and managed to maximize yield, while managing interest rate risk at an acceptable level. We maintain a well-diversified portfolio across sectors, credit quality, and maturities that affords us ample liquidity. Purchases and sales are made with the intent of maximizing investment returns in the current market environment while balancing capital preservation. Over time, we may seek to increase or decrease the duration and overall credit quality of the portfolio based on market conditions.

Our investment philosophy includes certain return and risk objectives for the fixed income, equity, and other investment portfolios. After-tax yield and net investment income generation are key drivers to our investment strategy, which we believe will be obtained through active management of the portfolio.

Total Invested Assets
($ in thousands)	June 30, 2019		December 31, 2018	Change
Total invested assets	$	6,421,255	5,960,651	8		%
Invested assets per dollar of stockholders' equity	3.12		3.33	(6	)
Unrealized gain – before tax1	208,208		11,916	1,647
Unrealized gain – after tax1	164,484		9,414	1,647

¹Includes unrealized gains on fixed income and equity securities.

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The increase in invested assets at June 30, 2019, compared to December 31, 2018, was driven by: (i) operating cash flow generated in Six Months 2019 of $165 million; (ii) pre-tax net unrealized gains in our fixed income and equity securities portfolios of $196 million, due to a reduction in interest rates and tightening corporate credit spreads, as well as strong performance in U.S. equities during Six Months 2019; and (iii) net proceeds of $106 million from the issuance of our 5.375% Senior Notes and the redemption of our 5.875% Senior Notes in March 2019. For additional information regarding these debt transactions, see Note 5. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

At June 30, 2019, our fixed income securities and short-term investment portfolios represented 95% of our invested assets, consistent with December 31, 2018. These portfolios had a weighted average credit rating of “ AA- ,” as of both June 30, 2019 and December 31, 2018, with 97% and 98% of the securities in the portfolio being investment grade quality, respectively. The sector composition and credit quality of our major asset categories within our fixed income securities portfolio did not significantly change from December 31, 2018.

For details regarding the credit quality of our portfolio, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk.” of our 2018 Annual Report.

Net Investment Income

The components of net investment income earned for the indicated periods were as follows:

	Quarter ended June 30,					Change % or Points			Six Months ended June 30,				Change % or Points
($ in thousands)	2019			2018					2019		2018
Fixed income securities	$	50,907		43,774		16	%		99,940		85,815		16	%
Equity securities	1,740			1,820		(4	)		3,380		3,797		(11	)
Short-term investments	1,759			611		188			3,803		1,134		235
Other investments	7,494			2,094		258			8,154		3,657		123
Investment expenses	(3,395		)	(2,746	)	(24	)		(6,154	)	(5,619	)	(10	)
Net investment income earned – before tax	58,505			45,553		28			109,123		88,784		23
Net investment income tax expense	(10,883		)	(7,964	)	(37	)		(20,178	)	(15,405	)	(31	)
Net investment income earned – after tax	$	47,622		37,589		27			88,945		73,379		21
Effective tax rate	18.6		%	17.5		1.1		pts	18.5		17.4		1.1		pts
Annualized after-tax yield on fixed income securities	2.9			2.8		0.1			2.9		2.7		0.2
Annualized after-tax yield on investment portfolio	3.0			2.7		0.3			2.9		2.6		0.3

The increase in pre-tax net investment income in Second Quarter and Six Months 2019, compared to Second Quarter and Six Months 2018, was driven primarily by: (i) cash flow from operations that was 17% of NPW in the current quarter and 12% in the current year-to-date period; (ii) higher yields on our core fixed income securities portfolio; (iii) strong alternative investment returns; and (iv) $106 million of net proceeds from our 5.375% Senior Notes issuance.

Realized and Unrealized Gains and Losses

Our general philosophy for sales of securities is to reduce our exposure to securities and sectors based on economic evaluations and when the fundamentals for that security or sector have deteriorated, or to opportunistically trade out of securities to other securities with better economic return characteristics. Net realized and unrealized gains and losses for the indicated periods were as follows:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Net realized gains on disposals, excluding OTTI	$	2,883		54		6,327		4,785
OTTI charges	(971		)	(2,821	)	(1,075	)	(4,033	)
Unrealized gains (losses) recognized in income on equity securities	2,115			1,115		12,226		(12,953	)
Total net realized and unrealized gains (losses)	$	4,027		(1,652	)	17,478		(12,201	)

The increase in net realized and unrealized gains in Six Months 2019 compared to the same period last year was primarily driven by market value fluctuations on our equity portfolio.

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Federal Income Taxes

The following table provides information regarding federal income taxes:

	Quarter ended June 30,				Six Months ended June 30,
($ in millions)	2019			2018	2019	2018
Federal income tax expense	$	18.0		13.7	30.3	14.7
Effective tax rate	19.9		%	18.9	18.5	15.9

The effective tax rate in the table above differs from the statutory rate of 21% principally due to: (i) the benefit of tax-advantaged interest and dividend income; and (ii) the impact of excess tax benefits on our stock-based compensation awards, partially offset by the disallowance of certain executive compensation. The increase in the effective tax rate in Second Quarter and Six Months 2019, compared to Second Quarter and Six Months 2018, reflects a greater pre-tax income contribution from our insurance operations compared to the relative contribution of tax-advantaged income this year compared to last.

Financial Condition, Liquidity, and Capital Resources

Capital resources and liquidity reflect our ability to generate cash flows from business operations, borrow funds at competitive rates, and raise new capital to meet operating and growth needs.

Liquidity

We manage liquidity with a focus on generating sufficient cash flows to meet the short-term and long-term cash requirements of our business operations. Our cash, excluding restricted cash, and short-term investment position of $292 million at June 30, 2019 was comprised of $42 million at the Parent and $250 million at the Insurance Subsidiaries. Short-term investments are generally maintained in "AAA" rated money market funds approved by the National Association of Insurance Commissioners. The Parent maintains a fixed income security investment portfolio containing high-quality, highly-liquid government and corporate fixed income securities. This portfolio amounted to $204 million at June 30, 2019 and $110 million at December 31, 2018. The Parent had a total of $257 million of cash and liquid investments at June 30, 2019, compared to $146 million at December 31, 2018, with the increase driven by our capital market activities discussed below. The level of cash and invested assets may fluctuate based on various factors, including the amount and availability of dividends from our Insurance Subsidiaries, investment income, expenses, and other liquidity needs of the Parent. Our target is to maintain the cash and liquidity at the Parent to two times its expected annual needs, which is currently estimated at $160 million.

Sources of Liquidity

Sources of cash for the Parent have historically consisted of dividends from the Insurance Subsidiaries, the investment portfolio discussed above, borrowings under lines of credit and loan agreements with certain Insurance Subsidiaries, and the issuance of stock and debt securities. We continue to monitor these sources, giving consideration to our long-term liquidity and capital preservation strategies.

Insurance Subsidiary Dividends

We currently anticipate that the Insurance Subsidiaries may pay $110 million in total dividends to the Parent in 2019, a $10 million increase from $100 million paid in 2018, of which $55 million was paid during Six Months 2019. As of December 31, 2018, our allowable ordinary maximum dividend was $210 million for 2019.

Any dividends to the Parent are subject to the approval and/or review of the insurance regulators in the respective Insurance Subsidiaries' domiciliary states and are generally payable only from earned surplus as reported in the statutory annual statements of those subsidiaries as of the preceding December 31. Although past dividends have historically been met with regulatory approval, there is no assurance that future dividends that may be declared will be approved. For additional information regarding dividend restrictions, refer to Note 19. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report.

The Insurance Subsidiaries generate liquidity through insurance float, which is created by collecting premiums and earning investment income before losses are paid. The period of the float can extend over many years. Our investment portfolio consists of maturity dates that continually provide a source of cash flows for claims payments in the ordinary course of business. The effective duration of the fixed income securities portfolio was 3.5 years as of June 30, 2019, while the liabilities of the Insurance Subsidiaries had a duration as of December 31, 2018 of 3.6 years. As protection for the capital resources of the Insurance Subsidiaries, we purchase reinsurance coverage for significantly large claims or catastrophes that may occur during the year.

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Line of Credit

The Parent's line of credit with Wells Fargo Bank, National Association, as administrative agent, and Branch Banking and Trust Company (BB&T) (referred to as our "Line of Credit"), was renewed effective December 1, 2015 with a borrowing capacity of $30 million, which can be increased to $50 million with the approval of both lending partners. This Line of Credit expires on December 1, 2020 and has an interest rate that varies and is based on, among other factors, the Parent's debt ratings. There were no balances outstanding under the Line of Credit at June 30, 2019 or at any time during 2019.

For additional information regarding the Line of Credit agreement and corresponding representations, warranties, and covenants, refer to Note 10. "Indebtedness" in Item 8. "Financial Statements." of our 2018 Annual Report. We continue to meet all covenants under our Line of Credit agreement as of June 30, 2019.

Several of our Insurance Subsidiaries are members of certain branches of the Federal Home Loan Bank, which provides those subsidiaries with additional access to liquidity. Membership is as follows:

Branch	Insurance Subsidiary Member
Federal Home Loan Bank of Indianapolis ("FHLBI")	Selective Insurance Company of South Carolina ("SICSC")1 Selective Insurance Company of the Southeast ("SICSE")1
Federal Home Loan Bank of New York ("FHLBNY")	Selective Insurance Company of America ("SICA") Selective Insurance Company of New York ("SICNY")

¹These subsidiaries are jointly referred to as the "Indiana Subsidiaries" as they are domiciled in Indiana.

The Line of Credit permits aggregate borrowings from the FHLBI and the FHLBNY up to 10% of the respective member company’s admitted assets for the previous year end. Additionally, as SICNY is domiciled in New York, this company's borrowings from the FHLBNY are limited to the lower of 5% of admitted assets for the most recently completed fiscal quarter or 10% of admitted assets for the previous year end. We have a remaining capacity of $288.9 million for Federal Home Loan Bank borrowings, with a $12.9 million additional stock purchase requirement to allow the member companies to borrow their full remaining capacity amounts.

All borrowings from both the FHLBI and the FHLBNY are required to be secured by investments pledged as collateral. For additional information regarding collateral outstanding, refer to Note 4. "Investments" in Item 1. "Financial Statements." of this Form 10-Q.

Short-term Borrowings

In the first quarter of 2019, SICA borrowed $50 million from the FHLBNY, which was repaid on March 28, 2019. For further information regarding this borrowing, see Note 5. "Indebtedness" in Item 1. "Financial Statements." of this Form 10-Q.

Intercompany Loan Agreements

The Parent has lending agreements with the Indiana Subsidiaries that have been approved by the Indiana Department of Insurance, which provide additional liquidity to the Parent. Similar to the Line of Credit agreement, these lending agreements limit borrowings by the Parent from the Indiana Subsidiaries to 10% of the admitted assets of the respective Indiana Subsidiary. The outstanding balance on these intercompany loans was $42.5 million as of June 30, 2019, compared to $45.0 million as of December 31, 2018. The remaining capacity under these intercompany loan agreements was $78.8 million as of June 30, 2019, compared to $76.2 million as of December 31, 2018. Despite not being contractually obligated to do so, the Parent currently plans to repay the remaining outstanding balance by the end of 2021.

Capital Market Activities

In the first quarter of 2019, the Parent issued $300 million of 5.375% Senior Notes at a discount of $5.9 million which, when coupled with debt issuance costs of approximately $3.3 million, resulted in net proceeds from the offering of $290.8 million. The Parent used a portion of the proceeds to fully redeem the then outstanding $185 million aggregate principal amount of its 5.875% Senior Notes, with the remaining $106 million being used for general corporate purposes. For additional information on these transactions, refer to Note 5. "Indebtedness" in Item 1. "Financial Statements." of this Form 10-Q. The Parent had no private or public issuances of stock during Six Months 2019.

Uses of Liquidity

The liquidity generated from the sources discussed above is used, among other things, to pay dividends to our shareholders. Dividends on shares of the Parent's common stock are declared and paid at the discretion of the Board of Directors based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors.

39

Our ability to meet our interest and principal repayment obligations on our debt, as well as our ability to continue to pay dividends to our stockholders, is dependent on liquidity at the Parent coupled with the ability of the Insurance Subsidiaries to pay dividends, if necessary, and/or the availability of other sources of liquidity to the Parent. Our next two principal

repayments, each in the amount of $25 million, are due in 2021, and the next principal payment is due in 2026.

Restrictions on the ability of the Insurance Subsidiaries to declare and pay dividends, without alternative liquidity options, could materially affect our ability to service debt and pay dividends on common stock.

Capital Resources

Capital resources provide protection for policyholders, furnish the financial strength to support the business of underwriting insurance risks, and facilitate continued business growth. At June 30, 2019, we had GAAP stockholders' equity of $2.1 billion and statutory surplus of $1.9 billion. With total debt of $550.8 million, our debt-to-capital ratio was 21.1% at June 30, 2019.

Our cash requirements include, but are not limited to, principal and interest payments on various notes payable, dividends to stockholders, payment of claims, payment of commitments under limited partnership agreements and capital expenditures, as well as other operating expenses, which include commissions to our distribution partners, labor costs, premium taxes, general and administrative expenses, and income taxes. For further details regarding our cash requirements, refer to the section below entitled, “Contractual Obligations, Contingent Liabilities, and Commitments.”

We continually monitor our cash requirements and the amount of capital resources that we maintain at the holding company and operating subsidiary levels. As part of our long-term capital strategy, we strive to maintain capital metrics, relative to the macroeconomic environment, that support our targeted financial strength. Based on our analysis and market conditions, we may take a variety of actions, including, but not limited to, contributing capital to the Insurance Subsidiaries in our insurance operations, issuing additional debt and/or equity securities, repurchasing existing debt, repurchasing shares of the Parent’s common stock, and increasing stockholders’ dividends.

Our capital management strategy is intended to protect the interests of the policyholders of the Insurance Subsidiaries and our stockholders, while enhancing our financial strength and underwriting capacity.

Book value per share increased to $34.71 as of June 30, 2019, from $30.40 as of December 31, 2018, driven by $2.23 in net income per share and $2.45 in unrealized gains on our fixed income securities portfolio, partially offset by $0.40 in dividends to our shareholders.

Ratings

We are rated by major rating agencies that issue opinions on our financial strength, operating performance, strategic position, and ability to meet policyholder obligations. We believe that our ability to write insurance business is most influenced by our rating from A.M. Best. We have been rated “A” or higher by A.M. Best for the past 89 years. A downgrade from A.M. Best to a rating below “A-” is an event of default under our Line of Credit and could affect our ability to write new business with customers and/or distribution partners, some of whom are required (under various third-party agreements) to maintain insurance with a carrier that maintains a specified A.M. Best minimum rating.

Our ratings have not changed from those reported in our "Ratings" section of Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations." in our 2018 Annual Report and continue to be as follows:

NRSRO	Financial Strength Rating	Outlook
A.M. Best	A	Stable
Moody's Investor Services ("Moody's")	A2	Stable
Fitch Ratings ("Fitch")	A+	Stable
Standard & Poor's Global Ratings ("S&P")	A	Stable

In Second Quarter 2019, Fitch reaffirmed our "A+" rating with a "stable" outlook. In taking this action, Fitch cited our strong capitalization and financial performance, with stable underwriting results and return metrics that have remained favorable compared to our peers.

Our S&P, Moody's, and Fitch financial strength and associated credit ratings affect our ability to access capital markets.  The interest rate on our Line of Credit varies and is based on, among other factors, the Parent's debt ratings. There can be no assurance that our ratings will continue for any given period of time or that they will not be changed.  It is possible that positive or negative ratings actions by one or more of the rating agencies may occur in the future.

40

Off-Balance Sheet Arrangements

At June 30, 2019 and December 31, 2018, we did not have any material relationships with unconsolidated entities or financial partnerships, such entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or for other contractually narrow or limited purposes. As such, we are not exposed to any material financing, liquidity, market, or credit risk that could arise if we had engaged in such relationships.

Contractual Obligations, Contingent Liabilities, and Commitments

Our future cash payments associated with: (i) loss and loss expense reserves; and (ii) contractual obligations pursuant to operating and financing leases for office space and equipment have not materially changed since December 31, 2018. The following table provides future cash payments on our notes payable as of June 30, 2019, giving consideration to the $300 million 5.375% Senior Notes issuance and the redemption of our $185 million 5.875% Senior Notes in the first quarter of 2019, the details of which are contained in Note 5. "Indebtedness" in Item 1. "Financial Statements." in this Form 10-Q:

Contractual Obligations	Payment Due by Period
			Less than 1 year	1-3 years	3-5 years	More than 5 years
($ in millions)	Total
Notes payable	$	560.0	—	50.0	—	510.0
Interest on debt obligations	666.1		29.1	57.5	56.6	522.9
Total	$	1,226.1	29.1	107.5	56.6	1,032.9

As of June 30, 2019, we had contractual obligations that expire at various dates through 2036 that may require us to invest up to $231.8 million in alternative investments. There is no certainty that any such additional investment will be required. Additionally, as of June 30, 2019, we had the following contractual obligations: (i) $9.4 million to further invest in non-publicly traded common stock within our equity portfolio that expire through 2023; and (ii) $34.4 million to further invest in non-publicly traded collateralized loan obligations in our fixed income securities portfolio that expire through 2030. We expect to have the capacity to repay and/or refinance these obligations as they come due.

We have issued no material guarantees on behalf of others and have no trading activities involving non-exchange traded contracts accounted for at fair value. For additional details on transactions with related parties, see Note 16. "Related Party Transactions" in Item 8. "Financial Statements and Supplementary Data." in our 2018 Annual Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in the information about market risk set forth in our 2018 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this report. In performing this evaluation, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework ("COSO Framework") in 2013. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are: (i) effective in recording, processing, summarizing, and reporting information on a timely basis that we are required to disclose in the reports that we file or submit under the Exchange Act; and (ii) effective in ensuring that information that we are required to disclose in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. No changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) occurred during Six Months 2019 that materially affected, or are reasonably

likely to materially affect, our internal control over financial reporting.

41

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

In the ordinary course of conducting business, we are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving our Insurance Subsidiaries as either: (i) liability insurers defending or providing indemnity for third-party claims brought against our customers; or (ii) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid losses and loss expense reserves. We expect that any potential ultimate liability in such ordinary course claims litigation will not be material to our consolidated financial condition, results of operations, or cash flows after consideration of provisions made for potential losses and costs of defense.

From time to time, our insurance subsidiaries also are named as defendants in other legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies. Similarly, our Insurance Subsidiaries are also named from time-to-time in individual actions seeking extra-contractual damages, punitive damages, or penalties, some of which allege bad faith in the handling of insurance claims. We believe that we have valid defenses to these cases. We expect that any potential ultimate liability in any such lawsuit will not be material to our consolidated financial condition, after consideration of provisions made for estimated losses. Nonetheless, given the inherent unpredictability of litigation and the large or indeterminate amounts sought in certain of these actions, an adverse outcome in certain matters could possibly have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods.

As of June 30, 2019, we do not believe the Company was involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

ITEM 1A. RISK FACTORS.

Certain risk factors exist that can have a significant impact on our business, liquidity, capital resources, results of operations, financial condition, and debt ratings. These risk factors might affect, alter, or change actions that we might take in executing our long-term capital strategy, including but not limited to, contributing capital to any or all of the Insurance Subsidiaries, issuing additional debt and/or equity securities, repurchasing our equity securities, repurchasing our existing debt, or increasing or decreasing stockholders' dividends. We operate in a continually changing business environment and new risk factors emerge from time to time. Consequently, we can neither predict such new risk factors nor assess the potential future impact, if any, they might have on our business. There have been no material changes from the risk factors disclosed in Item 1A. “Risk Factors.” in our 2018 Annual Report other than as discussed below.

We face risks regarding our flood business because of uncertainties regarding the NFIP.

We are the fifth largest insurance group in the WYO arrangement of the NFIP, which is managed by the Mitigation Division of the Federal Emergency Management Agency ("FEMA") in the U.S. Department of Homeland Security.  Under the arrangement, we receive an expense allowance for policies written and a servicing fee for claims administered, and all losses are 100% reinsured by the Federal Government.  The current underwriting expense allowance is 30.0% of DPW. The claim servicing fee is the combination of 0.9% of DPW and 1.5% of incurred losses.

As a WYO carrier, we are required to follow certain NFIP procedures in the administration of flood policies and claims.  Some of these requirements may differ from our normal business practices and may present a reputational risk to our brand.  While insurance companies are regulated by the states and the NFIP requires WYO carriers to be licensed in the states in which they operate, the NFIP is a federal program and WYO carriers are fiscal agents of the U.S. Government and must follow the NFIP's directives.  Consequently, we have the risk that directives from the NFIP and a state regulator on the same issue may conflict.

The NFIP was authorized until September 30, 2019, as a short-term solution while Congress continues to debate a more comprehensive proposal. There continues to be significant public policy and political debate in Congress about an extension of the NFIP, appropriate compensation for the WYO carriers, and solutions for flood risk throughout the country. Legislation introduced in Congress, if enacted, could greatly reduce the compensation WYO carriers receive under the NFIP. FEMA can act on its own to revise the arrangement, and did so in October 2018 by: (i) reducing the WYO’s underwriting expense allowance by 0.9 points, from 30.9% to 30.0%; and (ii) eliminating the provision allowing FEMA to increase a WYO’s underwriting expense allowance by one percentage point to cover additional incurred expenses.

Our flood business could be impacted by:  (i) a lapse in program authorization; (ii) further changes to WYO carrier compensation; (iii) any mandate for primary insurance carriers to provide flood insurance; or (iv) private writers becoming

42

more prevalent in the marketplace.  The uncertainty created by the public policy debate and politics of flood insurance reform makes it difficult for us to predict the future of the NFIP and our continued participation in the program.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The following table provides information regarding our purchases of our common stock in Second Quarter 2019:

Period	Total Number of Shares Purchased1		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs	Maximum Number of Shares that May Yet Be Purchased Under the Announced Programs
April 1 – 30, 2019	185		$	67.67	—	—
May 1 - 31, 2019	(461	)	60.50		—	—
June 1 - 30, 2019	1,941		74.97		—	—
Total	1,665		$	78.16	—	—

¹These shares were purchased from employees in connection with the vesting of restricted stock units. These repurchases were made to satisfy tax withholding obligations with respect to those employees.

ITEM 6. EXHIBITS.

Exhibit No.
* 11	Statement Re: Computation of Per Share Earnings.
* 31.1	Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.
* 31.2	Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.
** 32.1	Certification of Chief Executive Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.
** 32.2	Certification of Chief Financial Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.
* 101.INS	XBRL Instance Document.
* 101.SCH	XBRL Taxonomy Extension Schema Document.
* 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
* 101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
* 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
* 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.

 * Filed herewith.

** Furnished and not filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

SELECTIVE INSURANCE GROUP, INC.

Registrant 

Date:	August 1, 2019	By: /s/ Gregory E. Murphy
		Gregory E. Murphy
		Chairman of the Board and Chief Executive Officer
		(principal executive officer)
Date:	August 1, 2019	By: /s/ Mark A. Wilcox
		Mark A. Wilcox
		Executive Vice President and Chief Financial Officer
		(principal financial officer)

43

EX-11

Exhibit 11

SELECTIVE INSURANCE GROUP, INC. AND CONSOLIDATED SUBSIDIARIES

COMPUTATION OF EARNINGS PER SHARE

Second Quarter 2019	Income (Numerator)		Shares (Denominator)	Per Share Amount
(in thousands, except per share amounts)
Basic Earnings Per Share ("EPS"):
Net income available to common stockholders	$	72,266	59,410	$	1.22
Effect of dilutive securities:
Stock compensation plans	—		526
Diluted EPS:
Net income available to common stockholders	$	72,266	59,936	$	1.21
Second Quarter 2018	Income (Numerator)		Shares (Denominator)	Per Share Amount
(in thousands, except per share amounts)
Basic EPS:
Net income available to common stockholders	$	58,819	58,926	$	1.00
Effect of dilutive securities:
Stock compensation plans	—		671
Diluted EPS:
Net income available to common stockholders	$	58,819	59,597	$	0.99
Six Months 2019	Income (Numerator)		Shares (Denominator)	Per Share Amount
(in thousands, except per share amounts)
Basic EPS:
Net income available to common stockholders	$	133,614	59,332	$	2.25
Effect of dilutive securities:
Stock compensation plans	—		574
Diluted EPS:
Net income available to common stockholders	$	133,614	59,906	$	2.23
Six Months 2018	Income (Numerator)		Shares (Denominator)	Per Share Amount
(in thousands, except per share amounts)
Basic EPS:
Net income available to common stockholders	$	77,744	58,866	$	1.32
Effect of dilutive securities:
Stock compensation plans	—		713
Diluted EPS:
Net income available to common stockholders	$	77,744	59,579	$	1.30

EX-31.1

Exhibit 31.1

Certification pursuant to Rule 13a-14(a), as adopted pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, GREGORY E. MURPHY, Chairman of the Board and Chief Executive Officer of Selective Insurance Group, Inc. (the “Company”), certify, that:

1. I have reviewed this quarterly report on Form 10-Q of the Company;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations, comprehensive income and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 1, 2019	By: /s/ Gregory E. Murphy
		Gregory E. Murphy
		Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification pursuant to Rule 13a-14(a), as adopted pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, MARK A. WILCOX, Executive Vice President and Chief Financial Officer of Selective Insurance Group, Inc. (the “Company”), certify, that:

1. I have reviewed this quarterly report on Form 10-Q of the Company;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations, comprehensive income and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 1, 2019	By: /s/ Mark A. Wilcox
		Mark A. Wilcox
		Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

I, GREGORY E. MURPHY, Chairman of the Board and Chief Executive Officer of Selective Insurance Group, Inc. (the “Company”), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the quarterly report on Form 10-Q of the Company for the quarterly period ended June 30, 2019 (the “Form 10-Q”), which this certification accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 1, 2019	By: /s/ Gregory E. Murphy
		Gregory E. Murphy
		Chairman of the Board and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

I, MARK A. WILCOX, Executive Vice President and Chief Financial Officer of Selective Insurance Group, Inc. (the “Company”), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the quarterly report on Form 10-Q of the Company for the quarterly period ended June 30, 2019 (the “Form 10-Q”), which this certification accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 1, 2019	By: /s/ Mark A. Wilcox
		Mark A. Wilcox
		Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 19, 2019
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-33067
Entity Registrant Name	SELECTIVE INSURANCE GROUP, INC
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	22-2168890
Entity Address, Address Line One	40 Wantage Avenue
Entity Address, City or Town	Branchville,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07890
City Area Code	973
Local Phone Number	948-3000
Title of 12(b) Security	Common Stock, par value $2 per share
Trading Symbol	SIGI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock , Shares Outstanding		59,370,023
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000230557
Current Fiscal Year End Date	--12-31

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Fixed income securities, held-to-maturity – at carrying value (fair value: $33,855 – 2019; $38,317 – 2018)	$ 32,364	$ 37,110
Fixed income securities, available-for-sale – at fair value (amortized cost: $5,571,491 – 2019; $5,270,798 – 2018)	5,757,898	5,273,100
Equity securities – at fair value (cost: $135,761 – 2019; $138,144 – 2018)	157,519	147,639
Short-term investments (at cost which approximates fair value)	291,365	323,864
Other investments	182,109	178,938
Total investments (Note 4 and 6)	6,421,255	5,960,651
Cash	504	505
Restricted cash	7,139	16,414
Interest and dividends due or accrued	43,137	41,620
Premiums receivable, net of allowance for uncollectible accounts of: $7,800 – 2019; $9,400 – 2018	877,708	770,518
Reinsurance recoverable, net of allowance for uncollectible accounts of: $4,400 – 2019; $4,500 – 2018	577,274	549,172
Prepaid reinsurance premiums	163,530	157,723
Deferred federal income tax	14,698	53,540
Property and equipment – at cost, net of accumulated depreciation and amortization of: $219,670 – 2019; $211,657 – 2018	73,678	65,248
Deferred policy acquisition costs	273,128	252,612
Goodwill	7,849	7,849
Other assets	115,705	76,877
Total assets	8,575,605	7,952,729
Liabilities And Stockholders' Equity
Reserve for loss and loss expense (Note 8)	4,027,052	3,893,868
Unearned premiums	1,536,891	1,431,932
Long-term Debt	550,778
Long-term Debt		439,540
Current federal income tax	3,182	1,302
Accrued salaries and benefits	87,582	116,706
Other liabilities	310,576	277,579
Total liabilities	6,516,061	6,160,927
Stockholders' Equity:
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding	0	0
Common stock of $2 par value per share: Authorized shares: 360,000,000; Issued: 103,332,584 – 2019; 102,848,394 – 2018	206,665	205,697
Additional paid-in capital	407,382	390,315
Retained earnings	1,968,374	1,858,414
Accumulated other comprehensive income (loss) (Note 11)	68,506	(77,956)
Treasury stock – at cost (shares: 44,004,476 – 2019; 43,899,840 – 2018)	(591,383)	(584,668)
Total stockholders' equity	2,059,544	1,791,802
Commitments and contingencies
Total liabilities and stockholders' equity	$ 8,575,605	$ 7,952,729

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fixed income securities, held-to-maturity, fair value	$ 33,855	$ 38,317
Fixed income securities, available-for-sale, amortized cost	5,571,491	5,270,798
Equity securities, cost	135,761	138,144
Premiums receivable, allowance for uncollectible accounts	7,800	9,400
Reinsurance recoverable, allowance for uncollectible accounts	4,400	4,500
Property and equipment - at cost, accumulated depreciation and amortization	$ 219,670	$ 211,657
Preferred stock, par value per share	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 2	$ 2
Common stock, shares authorized	360,000,000	360,000,000
Common stock, shares issued	103,332,584	102,848,394
Treasury stock - at cost, shares	44,004,476	43,899,840

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Net premiums earned	$ 642,619	$ 604,836	$ 1,275,192	$ 1,196,664
Net investment income earned	58,505	45,553	109,123	88,784
Net realized and unrealized gains (losses):
Net realized investment gains on disposals	2,883	54	6,327	4,785
Other-than-temporary impairments	(971)	(2,821)	(1,075)	(4,033)
Unrealized gains (losses) on equity securities	2,115	1,115	12,226	(12,953)
Total net realized and unrealized gains (losses)	4,027	(1,652)	17,478	(12,201)
Other income	3,053	3,179	5,373	5,358
Total revenues	708,204	651,916	1,407,166	1,278,605
Expenses:
Loss and loss expense incurred	380,984	366,328	767,563	751,269
Amortization of deferred policy acquisition costs	133,401	122,661	263,075	243,754
Other insurance expenses	86,662	80,994	171,741	164,234
Interest expense	7,366	6,125	18,892	12,277
Corporate expenses	9,566	3,283	21,976	14,615
Total expenses	617,979	579,391	1,243,247	1,186,149
Income before federal income tax	90,225	72,525	163,919	92,456
Federal income tax expense:
Current	17,958	12,782	30,539	13,215
Deferred	1	924	(234)	1,497
Total federal income tax expense	17,959	13,706	30,305	14,712
Net income	$ 72,266	$ 58,819	$ 133,614	$ 77,744
Earnings per share:
Basic net income	$ 1.22	$ 1.00	$ 2.25	$ 1.32
Diluted net income	$ 1.21	$ 0.99	$ 2.23	$ 1.30

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income	$ 72,266	$ 58,819	$ 133,614	$ 77,744
Unrealized holding gains (losses) arising during period	66,002	(18,955)	147,315	(86,353)
Amounts reclassified into net income: Held-to-maturity securities	(17)	(6)	(24)	(16)
Amounts reclassified into net income: Realized (gains) losses on disposals and OTTI of available-for-sale securities	(1,027)	2,267	(1,878)	5,861
Total unrealized gains (losses) on investment securities	64,958	(16,694)	145,413	(80,508)
Amount reclassified into net income: Net actuarial loss	524	420	1,049	840
Total defined benefit pension and post-retirement plans	524	420	1,049	840
Other comprehensive income (loss)	65,482	(16,274)	146,462	(79,668)
Comprehensive income (loss)	$ 137,748	$ 42,545	$ 280,076	$ (1,924)

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional paid-in capital [Member]	Retained Earnings [Member]	Accumulated other comprehensive income (loss) [Member]	Treasury stock [Member]
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member]				$ 30,726	$ (30,726)
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member]				(5,707)	5,707
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member]				0
Balance at beginning of year, as adjusted				1,723,632	(4,849)
Beginning of year at Dec. 31, 2017		$ 204,569	$ 367,717	1,698,613	20,170	$ (578,112)
Dividend reinvestment plan		25	686
Stock purchase and compensation plans		866	13,238
Net income	$ 77,744			77,744
Dividends to stockholders				(21,448)
Other comprehensive income (loss)	(79,668)				(79,668)
Acquisition of treasury stock						(6,245)
End of period at Jun. 30, 2018	$ 1,698,155	205,460	381,641	1,779,928	(84,517)	(584,357)
Dividends declared per share to stockholders	$ 0.36
Common stock, shares outstanding, beginning of period at Dec. 31, 2017	58,495,122
Dividend reinvestment plan, shares	12,373
Stock purchase and compensation plan, shares	433,009
Acquisition of treasury stock, shares	(105,452)
Common stock, shares outstanding, end of period at Jun. 30, 2018	58,835,052
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member]				0	0
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member]				0	0
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member]				0
Balance at beginning of year, as adjusted				1,731,832	(68,243)
Beginning of year at Mar. 31, 2018		205,280	375,155	1,731,832	(68,243)	(584,228)
Dividend reinvestment plan		12	333
Stock purchase and compensation plans		168	6,153
Net income	$ 58,819			58,819
Dividends to stockholders				(10,723)
Other comprehensive income (loss)	(16,274)				(16,274)
Acquisition of treasury stock						(129)
End of period at Jun. 30, 2018	$ 1,698,155	205,460	381,641	1,779,928	(84,517)	(584,357)
Dividends declared per share to stockholders	$ 0.18
Common stock, shares outstanding, beginning of period at Mar. 31, 2018	58,747,505
Dividend reinvestment plan, shares	6,075
Stock purchase and compensation plan, shares	83,754
Acquisition of treasury stock, shares	(2,282)
Common stock, shares outstanding, end of period at Jun. 30, 2018	58,835,052
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member]				0	0
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member]				0	0
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member]				342
Balance at beginning of year, as adjusted				1,858,756	(77,956)
Beginning of year at Dec. 31, 2018	$ 1,791,802	205,697	390,315	1,858,414	(77,956)	(584,668)
Dividend reinvestment plan		22	729
Stock purchase and compensation plans		946	16,338
Net income	133,614			133,614
Dividends to stockholders				(23,996)
Other comprehensive income (loss)	146,462				146,462
Acquisition of treasury stock						(6,715)
End of period at Jun. 30, 2019	$ 2,059,544	206,665	407,382	1,968,374	68,506	(591,383)
Dividends declared per share to stockholders	$ 0.40
Common stock, shares outstanding, beginning of period at Dec. 31, 2018	58,948,554
Dividend reinvestment plan, shares	10,912
Stock purchase and compensation plan, shares	473,278
Acquisition of treasury stock, shares	(104,636)
Common stock, shares outstanding, end of period at Jun. 30, 2019	59,328,108
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 [Member]				0	0
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 [Member]				0	0
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-02 [Member]				0
Balance at beginning of year, as adjusted				1,908,119	3,024
Beginning of year at Mar. 31, 2019		206,451	398,881	1,908,119	3,024	(591,253)
Dividend reinvestment plan		11	364
Stock purchase and compensation plans		203	8,137
Net income	$ 72,266			72,266
Dividends to stockholders				(12,011)
Other comprehensive income (loss)	65,482				65,482
Acquisition of treasury stock						(130)
End of period at Jun. 30, 2019	$ 2,059,544	$ 206,665	$ 407,382	$ 1,968,374	$ 68,506	$ (591,383)
Dividends declared per share to stockholders	$ 0.20
Common stock, shares outstanding, beginning of period at Mar. 31, 2019	59,222,905
Dividend reinvestment plan, shares	5,218
Stock purchase and compensation plan, shares	101,650
Acquisition of treasury stock, shares	(1,665)
Common stock, shares outstanding, end of period at Jun. 30, 2019	59,328,108

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Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	Jun. 30, 2019	Jun. 30, 2018
Preferred stock, par value per share	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Series A Preferred Stock [Member]
Preferred stock, par value per share	$ 0	$ 0
Preferred stock, shares authorized	300,000	300,000

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating Activities
Net income	$ 133,614	$ 77,744
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	28,327	21,771
Stock-based compensation expense	11,654	9,636
Undistributed gains of equity method investments	(4,934)	(1,628)
Distributions in excess of current year income of equity method investments	2,157	1,450
Loss on disposal of fixed assets	0	29
Net realized and unrealized (gains) losses	(17,478)	12,201
Changes in assets and liabilities:
Increase in reserve for loss and loss expense, net of reinsurance recoverable	105,082	82,978
Increase in unearned premiums, net of prepaid reinsurance	99,152	83,143
Decrease in net federal income taxes	1,698	9,887
Increase in premiums receivable	(107,190)	(74,144)
Increase in deferred policy acquisition costs	(20,516)	(13,412)
(Increase) decrease in interest and dividends due or accrued	(1,399)	2
Decrease in accrued salaries and benefits	(29,124)	(46,478)
Increase in other assets	(22,320)	(6,550)
Decrease in other liabilities	(13,583)	(64,372)
Net cash provided by operating activities	165,140	92,257
Investing Activities
Purchase of fixed income securities, held-to-maturity	0	(3,650)
Purchase of fixed income securities, available-for-sale	(891,241)	(1,331,607)
Purchase of equity securities	(24,699)	(46,402)
Purchase of other investments	(25,822)	(26,032)
Purchase of short-term investments	(3,258,852)	(1,462,238)
Sale of fixed income securities, available-for-sale	372,159	938,276
Sale of short-term investments	3,291,878	1,463,726
Redemption and maturities of fixed income securities, held-to-maturity	4,643	3,654
Redemption and maturities of fixed income securities, available-for-sale	236,705	311,590
Sale of equity securities	30,094	43,590
Sale of other investments	12,609	3,497
Distributions from other investments	14,489	15,927
Purchase of property and equipment	(16,985)	(6,733)
Net cash used in investing activities	(255,022)	(96,402)
Financing Activities
Dividends to stockholders	(22,940)	(20,437)
Acquisition of treasury stock	(6,715)	(6,245)
Net proceeds from stock purchase and compensation plans	5,100	3,930
Proceeds from borrowings	340,757	130,000
Repayments of borrowings	(235,000)	(130,000)
Repayments of finance lease obligations	(596)	(1,333)
Net cash provided by (used in) financing activities	80,606	(24,085)
Net decrease in cash and restricted cash	(9,276)	(28,230)
Cash and restricted cash, beginning of year	16,919	44,710
Cash and restricted cash, end of period	$ 7,643	$ 16,480

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Basis of Presentation

6 Months Ended

Jun. 30, 2019

Basis of Presentation And Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

As used herein, the "Company,” “we,” “us,” or “our” refers to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or unless the context otherwise requires. Our interim unaudited consolidated financial statements (“Financial Statements”) have been prepared by us in conformity with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The preparation of the Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany accounts and transactions between the Parent and its subsidiaries are eliminated in consolidation.

Our Financial Statements reflect all adjustments that, in our opinion, are normal, recurring, and necessary for a fair presentation of our results of operations and financial condition. Our Financial Statements cover the second quarters ended June 30, 2019 (“Second Quarter 2019”) and June 30, 2018 (“Second Quarter 2018”) and the six-month periods ended June 30, 2019 (“Six Months 2019”) and June 30, 2018 (“Six Months 2018”). These Financial Statements do not include all of the information and disclosures required by GAAP and the SEC for audited annual financial statements. Additionally, results of operations for any interim period are not necessarily indicative of results for a full year. Consequently, our Financial Statements should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Annual Report”) filed with the SEC.

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Accounting Pronouncements

6 Months Ended

Jun. 30, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Accounting Pronouncements

Adoption of Accounting Pronouncements 

The Financial Accounting Standards Board ("FASB") issued new leasing guidance through ASU 2016-02, Leases, which was issued in February 2016, as well as additional implementation guidance that was issued in 2018 and 2019 (collectively referred to as "ASU 2016-02"). ASU 2016-02 requires all lessees to recognize assets and liabilities on their balance sheets for the rights and obligations created by leases with terms longer than 12 months. For leases with a term of 12 months or less, an accounting policy election is allowed to recognize lease expense on a straight-line basis over the lease term.

ASU 2016-02 allows for certain practical expedients, accounting policy elections, and a transition method election. We adopted practical expedients related to reassessing: (i) whether our existing contracts are, or contain, leases; (ii) lease classification for existing leases; and (iii) initial direct costs for existing leases. Additionally, we adopted accounting policy elections to: (i) aggregate lease and non-lease components of a contract into a single lease component; and (ii) expense short-term leases on a straight-line basis over the lease term. We adopted ASU 2016-02 effective January 1, 2019. See Note 12. "Leases" in this Form 10-Q for additional information regarding our leases and the impact of this guidance on our financial condition and results of operations.

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). The amendments in ASU 2018-07 expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. We adopted ASU 2018-07 in the first quarter of 2019 and it did not have a material impact on our financial condition or results of operations.

Pronouncements to be effective in the future

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, as well as additional implementation guidance issued in 2018 and 2019 (collectively referred to as “ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity ("HTM") debt securities, trade receivables, and reinsurance recoverables. ASU 2016-13 requires a valuation allowance to be calculated on financial assets, and that they be presented on the financial statements net of the valuation allowance. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. This ASU also made targeted changes to the impairment accounting model for available-for-sale ("AFS") debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. We are currently evaluating the impact of this guidance on our financial condition and results of operations.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements for fair value measurements. The modifications removed the following disclosure requirements: (i) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the

valuation processes for Level 3 fair value measurements. This ASU added the following disclosure requirements: (i) the changes in unrealized gains and losses for the period included in other comprehensive income ("OCI") for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-13 will not impact our financial condition or results of operations.

In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These modifications include: (i) removing the requirement to disclose the amount in accumulated other comprehensive income ("AOCI") expected to be recognized as components of net periodic benefit cost over the next fiscal year; and (ii) adding the requirement to disclose an explanation of the reasons for significant gains or losses related to changes in the benefit obligation for the period. This update is effective for fiscal years ending after December 15, 2020, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-14 will not impact our financial condition or results of operations.

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this guidance on our financial condition or results of operations.

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Statements of Cash Flows

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Information [Abstract]

Statements of Cash Flows

Statements of Cash Flows

Supplemental cash flow information was as follows:

	Six Months ended June 30,
($ in thousands)	2019		2018
Cash paid during the period for:
Interest	$	10,512	12,064
Federal income tax	28,000		4,193
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases1	3,994		—
Operating cash flows from financing leases	7		—
Financing cash flows from finance leases	596		1,333
Non-cash items:
Corporate actions related to fixed income securities, AFS2	25,104		32,133
Assets acquired under finance lease arrangements	814		—
Assets acquired under operating lease arrangements1	12,881		—
Non-cash purchase of property and equipment	—		18

¹Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets.

²Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits.

The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equate to the amount reported in the Consolidated Statements of Cash Flows:

($ in thousands)	June 30, 2019		December 31, 2018
Cash	$	504	505
Restricted cash	7,139		16,414
Total cash and restricted cash shown in the Statements of Cash Flows	$	7,643	16,919

Amounts included in restricted cash represent cash received from the National Flood Insurance Program ("NFIP"), which is restricted to pay flood claims under the Write Your Own program.

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Investments

6 Months Ended

Jun. 30, 2019

Investments [Abstract]

Investments

Investments

(a) Our HTM fixed income securities as of June 30, 2019 represented less than 1% of our total invested assets, down slightly compared to December 31, 2018. The carry value and net unrealized/unrecognized gains were $32.4 million and $1.6 million, respectively, at June 30, 2019, and $37.1 million and $1.3 million, respectively, at December 31, 2018. Included in the net unrealized/unrecognized gains were gross unrealized/unrecognized losses of $0.1 million at June 30, 2019 and $0.2 million at December 31, 2018.

Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the date a security is designated as HTM through the date of the balance sheet.

(b) Information regarding our AFS securities as of June 30, 2019 and December 31, 2018 was as follows:

June 30, 2019
($ in thousands)	Cost/ Amortized Cost		Unrealized Gains	Unrealized Losses		Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	143,461	3,683	(20	)	147,124
Foreign government	20,995		494	—		21,489
Obligations of states and political subdivisions	1,056,507		54,516	(6	)	1,111,017
Corporate securities	1,733,319		64,620	(4,402	)	1,793,537
Collateralized loan obligations and other asset-backed securities ("CLO and other ABS")	762,896		8,649	(3,941	)	767,604
Commercial mortgage-backed securities ("CMBS")	541,093		24,737	(237	)	565,593
Residential mortgage-backed securities (“RMBS”)	1,313,220		38,588	(274	)	1,351,534
Total AFS fixed income securities	$	5,571,491	195,287	(8,880	)	5,757,898

December 31, 2018
($ in thousands)	Cost/ Amortized Cost		Unrealized Gains	Unrealized Losses		Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	120,092	1,810	(592	)	121,310
Foreign government	23,202		36	(107	)	23,131
Obligations of states and political subdivisions	1,121,615		19,485	(2,631	)	1,138,469
Corporate securities	1,639,852		5,521	(27,965	)	1,617,408
CLO and other ABS	720,193		4,112	(6,943	)	717,362
CMBS	527,409		3,417	(3,748	)	527,078
RMBS	1,118,435		12,988	(3,081	)	1,128,342
Total AFS fixed income securities	$	5,270,798	47,369	(45,067	)	5,273,100

Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an other-than-temporary impairment ("OTTI") charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets.

(c) The severity of impairment on AFS securities in an unrealized/unrecognized loss position averaged approximately 1% of amortized cost at June 30, 2019 and approximately 2% at December 31, 2018. Quantitative information regarding these losses is provided below.

June 30, 2019	Less than 12 months				12 months or longer			Total
($ in thousands)	Fair Value		Unrealized Losses1		Fair Value	Unrealized Losses1		Fair Value	Unrealized Losses1
AFS fixed income securities:
U.S. government and government agencies	$	—	—		5,508	(20	)	5,508	(20	)
Obligations of states and political subdivisions	739		(6	)	—	—		739	(6	)
Corporate securities	94,964		(2,260	)	46,527	(2,142	)	141,491	(4,402	)
CLO and other ABS	231,823		(2,318	)	151,572	(1,623	)	383,395	(3,941	)
CMBS	59,639		(183	)	24,882	(54	)	84,521	(237	)
RMBS	34,107		(135	)	14,691	(139	)	48,798	(274	)
Total AFS fixed income securities	$	421,272	(4,902	)	243,180	(3,978	)	664,452	(8,880	)

December 31, 2018	Less than 12 months				12 months or longer			Total
($ in thousands)	Fair Value		Unrealized Losses1		Fair Value	Unrealized Losses1		Fair Value	Unrealized Losses1
AFS fixed income securities:
U.S. government and government agencies	$	6,693	(174	)	23,163	(418	)	29,856	(592	)
Foreign government	12,208		(93	)	1,482	(14	)	13,690	(107	)
Obligations of states and political subdivisions	196,798		(2,074	)	42,821	(557	)	239,619	(2,631	)
Corporate securities	1,041,952		(23,649	)	78,953	(4,316	)	1,120,905	(27,965	)
CLO and other ABS	516,106		(6,750	)	16,800	(193	)	532,906	(6,943	)
CMBS	229,338		(2,548	)	66,294	(1,200	)	295,632	(3,748	)
RMBS	139,338		(1,660	)	45,661	(1,421	)	184,999	(3,081	)
Total AFS fixed income securities	$	2,142,433	(36,948	)	275,174	(8,119	)	2,417,607	(45,067	)

  ¹ Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. 

The decrease in the unrealized loss position was due to: (i) lower interest rates, with a 73-basis point decrease in 2-year U.S. Treasury Note yields and a 68-basis point decrease in 10-year U.S. Treasury Note yields during Six Months 2019; and (ii) tightening option adjusted corporate credit spreads, with a 38-basis point decrease in the Bloomberg Barclays U.S. Aggregate Corporate Bond Index during Six Months 2019. We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. Considering these factors, and in accordance with our review of these securities under our OTTI policy, as described in Note 2. “Summary of Significant Accounting Policies” within Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report, we have concluded that they are temporarily impaired as we believe: (i) they will mature at par value; (ii) they have not incurred a credit impairment; and (iii) future values of these securities will fluctuate with changes in interest rates. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral.

(d) Fixed income securities at June 30, 2019, by contractual maturity, are shown below. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties.

Listed below are the contractual maturities of fixed income securities at June 30, 2019:

	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	280,140	9,480	9,526
Due after one year through five years	2,237,395		16,860	18,109
Due after five years through 10 years	3,065,577		6,024	6,220
Due after 10 years	174,786		—	—
Total fixed income securities	$	5,757,898	32,364	33,855

(e) The following table summarizes our other investment portfolio by strategy:

Other Investments	June 30, 2019				December 31, 2018
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	99,567	95,805	195,372	84,352	93,688	178,040
Private credit	35,103		113,133	148,236	41,682	81,453	123,135
Real assets	23,104		22,880	45,984	27,862	27,129	54,991
Total alternative investments	157,774		231,818	389,592	153,896	202,270	356,166
Other securities	24,335		—	24,335	25,042	—	25,042
Total other investments	$	182,109	231,818	413,927	178,938	202,270	381,208

¹The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. 

We are contractually committed to make additional investments up to the remaining commitments outlined above; however, we do not have a future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2019 or 2018.

The following table sets forth gross summarized financial information for our other investments portfolio, including the portion not owned by us. The majority of these investments are carried under the equity method of accounting. The last line of the table below reflects our share of the aggregate income or loss, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information for the three-month period ended March 31 is included in our Second Quarter results. This information is as follows:

Income Statement Information	Quarter ended June 30,				Six Months ended June 30,
($ in millions)	2019		2018		2019	2018
Net investment income (loss)	$	174.1	(6.4	)	24.1	(41.8	)
Realized gains	106.0		629.5		249.3	1,223.5
Net change in unrealized appreciation (depreciation)	2,223.7		(1,200.2	)	2,778.0	(738.6	)
Net income (loss)	$	2,503.8	(577.1	)	3,051.4	443.1
Insurance subsidiaries’ alternative investments income	$	7.3	1.9		7.9	3.5

(f) We have pledged certain AFS fixed income securities as collateral related to our relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, certain securities were on deposit with various state and regulatory agencies at June 30, 2019 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral.

The following table summarizes the market value of these securities at June 30, 2019:

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	22.8	22.8
Obligations of states and political subdivisions	—		—	3.9	3.9
Corporate securities	—		—	0.3	0.3
CMBS	7.3		21.1	—	28.4
RMBS	58.1		84.2	—	142.3
Total pledged as collateral	$	65.4	105.3	27.0	197.7

(g) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government-backed investments, as of June 30, 2019 or December 31, 2018.

(h) The components of pre-tax net investment income earned were as follows:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Fixed income securities	$	50,907		43,774		99,940		85,815
Equity securities	1,740			1,820		3,380		3,797
Short-term investments	1,759			611		3,803		1,134
Other investments	7,494			2,094		8,154		3,657
Investment expenses	(3,395		)	(2,746	)	(6,154	)	(5,619	)
Net investment income earned	$	58,505		45,553		109,123		88,784

(i) OTTI charges were $1.0 million and $2.8 million in Second Quarter 2019 and Second Quarter 2018, respectively, and $1.1 million and $4.0 million in Six Months 2019 and Six Months 2018, respectively. All of these charges were related to securities for which we had the intent to sell. For a discussion of our evaluation for OTTI, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report.

(j) Net realized and unrealized gains and losses (excluding OTTI charges) for Second Quarter 2019 and 2018 included the following:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Net realized gains (losses) on the disposals of securities:
Fixed income securities	$	2,061		(1,174	)	3,204			(4,509	)
Equity securities	851			1,226		3,131			9,295
Short-term investments	1			2		15			(1	)
Other investments	(30		)	—		(23		)	—
Net realized gains on the disposal of securities	2,883			54		6,327			4,785
OTTI charges	(971		)	(2,821	)	(1,075		)	(4,033	)
Net realized gains (losses)	1,912			(2,767	)	5,252			752
Unrealized gains (losses) recognized in income on equity securities	2,115			1,115		12,226			(12,953	)
Total net realized and unrealized investment gains (losses)	$	4,027		(1,652	)	$	17,478		(12,201	)

Unrealized gains (losses) recognized in income on equity securities, as reflected in the table above, include the following:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at June 30, 2019	$	2,394		2,301		11,817		(2,662	)
On securities sold in each respective period	(279		)	(1,186	)	409		(10,291	)
Total unrealized gains (losses) recognized in income on equity securities	$	2,115		1,115		$	12,226	(12,953	)

The components of net realized gains on disposals of securities for the periods indicated were as follows:

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
HTM fixed income securities
Gains	$	1		—		1		2
Losses	(15		)	—		(15	)	—
AFS fixed income securities
Gains	2,643			1,971		4,487		4,594
Losses	(568		)	(3,145	)	(1,269	)	(9,105	)
Equity securities
Gains	958			1,226		3,238		9,625
Losses	(107		)	—		(107	)	(330	)
Short-term investments
Gains	2			2		16		3
Losses	(1		)	—		(1	)	(4	)
Other investments
Gains	—			—		7		—
Losses	(30		)	—		(30	)	—
Total net realized gains on disposals of securities	$	2,883		54		6,327		4,785

Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold.

Proceeds from the sales of AFS fixed income securities were $153.7 million and $262.9 million in Second Quarter 2019 and Second Quarter 2018, respectively, and $372.2 million and $938.3 million in Six Months 2019 and Six Months 2018 respectively. Proceeds from the sales of equity securities were $26.4 million and $2.9 million in Second Quarter 2019 and Second Quarter 2018, respectively, and $30.1 million and $43.6 million in Six Months 2019 and Six Months 2018 respectively.

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Indebtedness

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Indebtedness

Indebtedness

The table below provides a summary of our outstanding debt at June 30, 2019 and December 31, 2018:

Outstanding Debt	Issuance Date	Maturity Date	Interest Rate		Original Amount		2019	Carry Value
($ in thousands)							Debt Discount and Unamortized Issuance Costs	June 30, 2019	December 31, 2018
Description
Long term
Issuance:
Senior Notes	3/1/2019	3/1/2049	5.375	%	$	300,000	9,141	290,859	—
Redemption:
Senior Notes	2/8/2013	2/9/2043	5.875	%	185,000		—	—	180,771
Other Outstanding:
FHLBI	12/16/2016	12/16/2026	3.03	%	60,000		—	60,000	60,000
FHLBNY	8/15/2016	8/16/2021	1.56	%	25,000		—	25,000	25,000
FHLBNY	7/21/2016	7/21/2021	1.61	%	25,000		—	25,000	25,000
Senior Notes	11/3/2005	11/1/2035	6.70	%	100,000		903	99,097	99,069
Senior Notes	11/16/2004	11/15/2034	7.25	%	50,000		287	49,713	49,700
Finance lease obligations1								1,109	—
Total long-term debt							10,331	550,778	439,540

¹ Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

Short-Term Debt Activity

On March 7, 2019, Selective Insurance Company of America (“SICA”) borrowed short-term funds of $50 million from the FHLBNY at an interest rate of 2.64%. This borrowing was repaid on March 28, 2019.

Long-Term Debt Activity

In the first quarter of 2019, we issued $300 million of 5.375% Senior Notes due 2049 at a discount of $5.9 million which, when coupled with debt issuance costs of approximately $3.3 million, resulted in net proceeds from the offering of $290.8 million. The 5.375% Senior Notes will pay interest on March 1 and September 1 of each year, beginning on September 1, 2019. A portion of the proceeds from this debt issuance was used to fully redeem the $185 million aggregate principal amount of our 5.875% Senior Notes due 2043, with the remaining $106 million being used for general corporate purposes. The 5.875% Senior Notes had pre-tax debt retirement costs of $4.2 million, or $3.3 million after tax, which was recorded in Interest expense on the Consolidated Statements of Income in the first quarter of 2019.

For detailed information on our indebtedness, see Note 10. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and estimated fair values of our financial liabilities as of June 30, 2019 and December 31, 2018:

	June 30, 2019			December 31, 2018
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount		Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	49,909		63,519	49,907		57,032
6.70% Senior Notes	99,471		118,482	99,462		107,075
5.875% Senior Notes	—		—	185,000		177,230
5.375% Senior Notes	294,116		329,785	—		—
1.61% borrowings from FHLBNY	25,000		24,756	25,000		24,218
1.56% borrowings from FHLBNY	25,000		24,720	25,000		24,162
3.03% borrowings from FHLBI	60,000		62,393	60,000		58,905
Subtotal long-term debt	553,496		623,655	444,369		448,622
Unamortized debt issuance costs	(3,827	)		(4,829	)
Finance lease obligations	1,109			—
Total long-term debt	550,778			439,540

For a discussion of our long-term debt activity in 2019, see Note 5. "Indebtedness" and for a discussion of the fair value hierarchy and techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2018 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at June 30, 2019 and December 31, 2018:

June 30, 2019			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1	Significant Other  Observable Inputs  (Level 2)1	Significant Unobservable  Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	147,124	71,406	75,718	—
Foreign government	21,489		—	21,489	—
Obligations of states and political subdivisions	1,111,017		—	1,111,017	—
Corporate securities	1,793,537		—	1,777,137	16,400
CLO and other ABS	767,604		—	750,184	17,420
CMBS	565,593		—	565,593	—
RMBS	1,351,534		—	1,351,534	—
Total AFS fixed income securities	5,757,898		71,406	5,652,672	33,820
Equity securities:
Common stock2	154,505		108,916	—	—
Preferred stock	3,014		3,014	—	—
Total equity securities	157,519		111,930	—	—
Short-term investments	291,365		289,959	1,406	—
Total assets measured at fair value	$	6,206,782	473,295	5,654,078	33,820

December 31, 2018			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in  Active Markets for Identical Assets/Liabilities (Level 1)1	Significant Other Observable Inputs  (Level 2)1	Significant Unobservable Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	121,310	78,381	42,929	—
Foreign government	23,131		—	23,131	—
Obligations of states and political subdivisions	1,138,469		—	1,138,469	—
Corporate securities	1,617,408		—	1,617,408	—
CLO and other ABS	717,362		—	709,953	7,409
CMBS	527,078		—	527,078	—
RMBS	1,128,342		—	1,128,342	—
Total AFS fixed income securities	5,273,100		78,381	5,187,310	7,409
Equity securities:
Common stock2	144,727		107,397	—	—
Preferred stock	2,912		2,912	—	—
Total equity securities	147,639		110,309	—	—
Short-term investments	323,864		321,370	2,494	—
Total assets measured at fair value	$	5,744,603	510,060	5,189,804	7,409

¹  There were no transfers of securities between Level 1 and Level 2.

²  Investments amounting to $45.6 million at June 30, 2019, and $23.7 million at December 31, 2018, were measured at fair value using net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

The following table provides a summary of Level 3 changes in Six Months 2019:

June 30, 2019
($ in thousands)	Corporate Securities		CLO and Other ABS		Total
Fair value, December 31, 2018	—		7,409		7,409
Total net (losses) gains for the period included in:
OCI	(19	)	(118	)	(137	)
Net income	—		244		244
Purchases	—		15,984		15,984
Sales	—		—		—
Issuances	—		—		—
Settlements	—		(40	)	(40	)
Transfers into Level 3	16,419		13,603		30,022
Transfers out of Level 3	—		(19,662	)	(19,662	)
Fair value, June 30, 2019	16,400		17,420		33,820

There were no material changes in the fair value of securities measured using Level 3 prices in Six Months 2018.

The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at June 30, 2019 and December 31, 2018:

June 30, 2019			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in  Active Markets for  Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:
Obligations of states and political subdivisions	$	14,503	—	14,503	—
Corporate securities	19,352		—	19,352	—
Total HTM fixed income securities	$	33,855	—	33,855	—
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	63,519	—	63,519	—
6.70% Senior Notes	118,482		—	118,482	—
5.375% Senior Notes	329,785		—	329,785	—
1.61% borrowings from FHLBNY	24,756		—	24,756	—
1.56% borrowings from FHLBNY	24,720		—	24,720	—
3.03% borrowings from FHLBI	62,393		—	62,393	—
Total long-term debt	$	623,655	—	623,655	—

December 31, 2018			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in  Active Markets for  Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:
Obligations of states and political subdivisions	$	17,969	—	17,969	—
Corporate securities	20,348		—	20,348	—
Total HTM fixed income securities	$	38,317	—	38,317	—
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	57,032	—	57,032	—
6.70% Senior Notes	107,075		—	107,075	—
5.875% Senior Notes	177,230		177,230	—	—
1.61% borrowings from FHLBNY	24,218		—	24,218	—
1.56% borrowings from FHLBNY	24,162		—	24,162	—
3.03% borrowings from FHLBI	58,905		—	58,905	—
Total long-term debt	$	448,622	177,230	271,392	—

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Reinsurance

6 Months Ended

Jun. 30, 2019

Reinsurance Disclosures [Abstract]

Reinsurance

Reinsurance

The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information concerning reinsurance, refer to

Note 8. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report.

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Premiums written:
Direct	$	807,367		753,363		$	1,573,761		1,467,597
Assumed	5,333			6,536		11,888			12,807
Ceded	(111,303		)	(104,651	)	(211,305		)	(200,596	)
Net	$	701,397		655,248		$	1,374,344		1,279,808
Premiums earned:
Direct	$	740,348		696,723		$	1,468,385		1,380,456
Assumed	5,742			6,612		12,304			12,736
Ceded	(103,471		)	(98,499	)	(205,497		)	(196,528	)
Net	$	642,619		604,836		$	1,275,192		1,196,664
Loss and loss expenses incurred:
Direct	$	435,700		391,014		$	860,357		811,930
Assumed	4,348			2,364		9,613			10,368
Ceded	(59,064		)	(27,050	)	(102,407		)	(71,029	)
Net	$	380,984		366,328		$	767,563		751,269

Ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, losses, and loss expenses are ceded to the NFIP, are as follows:

Ceded to NFIP	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Ceded premiums written	$	(71,574	)	(66,341	)	$	(131,587	)	(123,010	)
Ceded premiums earned	(63,804		)	(60,143	)	(126,067		)	(119,134	)
Ceded loss and loss expenses incurred	(21,063		)	(10,261	)	(34,749		)	(25,980	)

Excluding the impact of our participation in the NFIP, ceded loss and loss expenses incurred increased in Second Quarter and Six Months 2019 compared to the respective prior year periods, due to one significant fire loss in Second Quarter 2019 that added $17.4 million to ceded loss and loss expenses.

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Reserve for Loss and Loss Expense

6 Months Ended

Jun. 30, 2019

Insurance Loss Reserves [Abstract]

Reserve for Loss and Loss Expense

Reserve for Loss and Loss Expense

The table below provides a roll forward of reserve for loss and loss expense balances:

	Six Months ended June 30,
($ in thousands)	2019			2018
Gross reserve for loss and loss expense, at beginning of year	$	3,893,868		3,771,240
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year	537,388			585,855
Net reserve for loss and loss expense, at beginning of year	3,356,480			3,185,385
Incurred loss and loss expense for claims occurring in the:
Current year	783,938			756,855
Prior years	(16,375		)	(5,586	)
Total incurred loss and loss expense	767,563			751,269
Paid loss and loss expense for claims occurring in the:
Current year	210,374			214,169
Prior years	442,820			457,441
Total paid loss and loss expense	653,194			671,610
Net reserve for loss and loss expense, at end of period	3,470,849			3,265,044
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	556,203			539,321
Gross reserve for loss and loss expense at end of period	$	4,027,052		3,804,365

Prior year reserve development in Six Months 2019 of $16.4 million was primarily driven by favorable casualty reserve development of $20.0 million in our workers compensation line of business and $7.0 million in our general liability line of business. This was partially offset by $10.6 million of unfavorable property reserve development in Six Months 2019.

Prior year reserve development in Six Months 2018 of $5.6 million included $12.0 million of favorable casualty reserve development, partially offset by $6.4 million of unfavorable property reserve development. The favorable casualty reserve development included $33.0 million of development in our workers compensation line of business, partially offset by $15.0 million of unfavorable reserve development in our commercial automobile line of business and $6.0 million in our excess and surplus ("E&S") casualty lines.

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Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Information

Segment Information

The results of our four reportable segments are evaluated as follows:

• Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated based on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and combined ratios.

• Our Investments segment is primarily evaluated based on after-tax net investment income and its ROE contribution. Also included in Investment segment results are after-tax net realized and unrealized gains and losses, which are not included in non-GAAP operating income.

In computing the results of each segment, we do not make adjustments for interest expense or corporate expenses. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments.

The following summaries present revenues (net investment income and net realized and unrealized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments:

Revenue by Segment	Quarter ended June 30,				Six Months ended June 30,
($ in thousands)	2019		2018		2019	2018
Standard Commercial Lines:
Net premiums earned:
Commercial automobile	$	136,338	122,104		267,524	240,335
Workers compensation	78,464		80,021		157,179	158,844
General liability	164,793		153,002		326,318	302,831
Commercial property	87,136		82,162		173,203	162,488
Businessowners’ policies	26,172		25,829		52,253	51,420
Bonds	8,967		8,335		17,871	16,469
Other	4,779		4,559		9,485	8,989
Miscellaneous income	2,718		2,882		4,762	4,708
Total Standard Commercial Lines revenue	509,367		478,894		1,008,595	946,084
Standard Personal Lines:
Net premiums earned:
Personal automobile	43,388		41,810		86,551	82,252
Homeowners	32,013		32,223		64,143	64,424
Other	1,712		1,644		3,726	3,257
Miscellaneous income	335		297		611	649
Total Standard Personal Lines revenue	77,448		75,974		155,031	150,582
E&S Lines:
Net premiums earned:
Casualty lines	44,756		39,379		89,284	77,919
Property lines	14,101		13,768		27,655	27,436
Miscellaneous income	—		—		—	1
Total E&S Lines revenue	58,857		53,147		116,939	105,356
Investments:
Net investment income	58,505		45,553		109,123	88,784
Net realized and unrealized investment gains (losses)	4,027		(1,652	)	17,478	(12,201	)
Total Investments revenue	62,532		43,901		126,601	76,583
Total revenues	$	708,204	651,916		1,407,166	1,278,605

Income Before and After Federal Income Tax	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019	2018
Standard Commercial Lines:
Underwriting gain, before federal income tax	$	37,143		41,016		62,958	47,820
Underwriting gain, after federal income tax	29,343			32,403		49,737	37,778
Combined ratio	92.7		%	91.4		93.7	94.9
ROE contribution	5.9			7.8		5.2	4.5
Standard Personal Lines:
Underwriting gain, before federal income tax	$	4,538		4,805		7,705	3,299
Underwriting gain, after federal income tax	3,585			3,796		6,087	2,606
Combined ratio	94.1		%	93.7		95.0	97.8
ROE contribution	0.7			0.9		0.6	0.3
E&S Lines:
Underwriting gain (loss), before federal income tax	$	2,944		(7,789	)	7,523	(8,354	)
Underwriting gain (loss), after federal income tax	2,326			(6,154	)	5,943	(6,600	)
Combined ratio	95.0		%	114.7		93.6	107.9
ROE contribution	0.5			(1.5	)	0.6	(0.8	)
Investments:
Net investment income	$	58,505		45,553		109,123	88,784
Net realized and unrealized investment gains (losses)	4,027			(1,652	)	17,478	(12,201	)
Total investment segment income, before federal income tax	62,532			43,901		126,601	76,583
Tax on investment segment income	11,729			7,617		23,849	12,843
Total investment segment income, after federal income tax	$	50,803		36,284		102,752	63,740
ROE contribution of after-tax net investment income	9.6			9.0		9.2	8.6

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Underwriting gain (loss)
Standard Commercial Lines	$	37,143		41,016		62,958		47,820
Standard Personal Lines	4,538			4,805		7,705		3,299
E&S Lines	2,944			(7,789	)	7,523		(8,354	)
Investment income	62,532			43,901		126,601		76,583
Total all segments	107,157			81,933		204,787		119,348
Interest expense	(7,366		)	(6,125	)	(18,892	)	(12,277	)
Corporate expenses	(9,566		)	(3,283	)	(21,976	)	(14,615	)
Income, before federal income tax	$	90,225		72,525		163,919		92,456

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Retirement Plans

6 Months Ended

Jun. 30, 2019

Retirement Benefits [Abstract]

Retirement Plans

Retirement Plans

SICA's primary pension plan is the Retirement Income Plan for Selective Insurance Company of America (the “Pension Plan”). SICA also sponsors the Supplemental Excess Retirement Plan (the “Excess Plan”) and a life insurance benefit plan. All plans are closed to new entrants and benefits ceased accruing under the Pension Plan and the Excess Plan after March 31, 2016. For more information concerning SICA's retirement plans, refer to Note 14. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2018 Annual Report.

The following tables provide information regarding the Pension Plan:

	Pension Plan					Pension Plan
	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Net Periodic Pension Cost (Benefit):
Interest cost	$	3,376		3,095		6,753		6,190
Expected return on plan assets	(5,278		)	(5,681	)	(10,557	)	(11,363	)
Amortization of unrecognized net actuarial loss	643			493		1,287		987
Total net periodic pension cost (benefit)1	$	(1,259	)	(2,093	)	(2,517	)	(4,186	)

¹ The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income.

	Pension Plan
	Six Months ended June 30,
	2019		2018
Weighted-Average Expense Assumptions:
Discount rate	4.46	%	3.78	%
Effective interest rate for calculation of interest cost	4.12		3.46
Expected return on plan assets	6.50		6.36

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Comprehensive Income

6 Months Ended

Jun. 30, 2019

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Comprehensive Income

Comprehensive Income

The components of comprehensive income, both gross and net of tax, for Second Quarter and Six Months Ended 2019 and 2018 were as follows:

Second Quarter 2019
($ in thousands)	Gross			Tax		Net
Net income	$	90,225		17,959		72,266
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	83,546			17,544		66,002
Amounts reclassified into net income:
HTM securities	(21		)	(4	)	(17	)
Realized gains on disposals and OTTI of AFS securities	(1,300		)	(273	)	(1,027	)
Total unrealized gains on investment securities	82,225			17,267		64,958
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	664			140		524
Total defined benefit pension and post-retirement plans	664			140		524
Other comprehensive income	82,889			17,407		65,482
Comprehensive income	$	173,114		35,366		137,748
Second Quarter 2018
($ in thousands)	Gross			Tax		Net
Net income	$	72,525		13,706		58,819
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(23,993		)	(5,038	)	(18,955	)
Amounts reclassified into net income:
HTM securities	(8		)	(2	)	(6	)
Realized losses on disposals and OTTI of AFS securities	2,870			603		2,267
Total unrealized losses on investment securities	(21,131		)	(4,437	)	(16,694	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	531			111		420
Total defined benefit pension and post-retirement plans	531			111		420
Other comprehensive loss	(20,600		)	(4,326	)	(16,274	)
Comprehensive income	$	51,925		9,380		42,545

Six Months 2019
($ in thousands)	Gross			Tax		Net
Net income	$	163,919		30,305		133,614
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	186,472			39,157		147,315
Amounts reclassified into net income:
HTM securities	(30		)	(6	)	(24	)
Realized gains on disposals and OTTI of AFS securities	(2,377		)	(499	)	(1,878	)
Total unrealized gains on investment securities	184,065			38,652		145,413
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,328			279		1,049
Total defined benefit pension and post-retirement plans	1,328			279		1,049
Other comprehensive income	185,393			38,931		146,462
Comprehensive income	$	349,312		69,236		280,076
Six Months 2018
($ in thousands)	Gross			Tax		Net
Net income	$	92,456		14,712		77,744
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(109,308		)	(22,955	)	(86,353	)
Amounts reclassified into net income:
HTM securities	(20		)	(4	)	(16	)
Realized losses on disposals and OTTI of AFS securities	7,419			1,558		5,861
Total unrealized losses on investment securities	(101,909		)	(21,401	)	(80,508	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,063			223		840
Total defined benefit pension and post-retirement plans	1,063			223		840
Other comprehensive loss	(100,846		)	(21,178	)	(79,668	)
Comprehensive loss	$	(8,390	)	(6,466	)	(1,924	)

The balances of, and changes in, each component of AOCI (net of taxes) as of June 30, 2019 were as follows:

June 30, 2019										Defined Benefit Pension and Post-Retirement Plans
	Net Unrealized Gains (Losses) on Investment Securities											Total AOCI
($ in thousands)	OTTI Related			HTM Related		All Other		Investments Subtotal
Balance, December 31, 2018	$	(71	)	71		1,888		1,888		(79,844	)	(77,956	)
OCI before reclassifications	—			—		147,315		147,315		—		147,315
Amounts reclassified from AOCI	—			(24	)	(1,878	)	(1,902	)	1,049		(853	)
Net current period OCI	—			(24	)	145,437		145,413		1,049		146,462
Balance, June 30, 2019	$	(71	)	47		147,325		147,301		(78,795	)	68,506

The reclassifications out of AOCI were as follows:

	Quarter ended June 30,					Six Months ended June 30,				Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2019			2018		2019		2018
HTM related
Unrealized losses on HTM disposals	$	(9	)	(7	)	(9	)	(6	)	Net realized and unrealized gains (losses)
Amortization of net unrealized gains on HTM securities	(12		)	(1	)	(21	)	(14	)	Net investment income earned
	(21		)	(8	)	(30	)	(20	)	Income before federal income tax
	4			2		6		4		Total federal income tax expense
	(17		)	(6	)	(24	)	(16	)	Net income
Realized (gains) losses on AFS and OTTI
Realized (gains) losses on AFS disposals and OTTI	(1,300		)	2,870		(2,377	)	7,419		Net realized and unrealized gains (losses)
	(1,300		)	2,870		(2,377	)	7,419		Income before federal income tax
	273			(603	)	499		(1,558	)	Total federal income tax expense
	(1,027		)	2,267		(1,878	)	5,861		Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	145			113		290		225		Loss and loss expense incurred
	519			418		1,038		838		Other insurance expenses
Total defined benefit pension and post-retirement life	664			531		1,328		1,063		Income before federal income tax
	(140		)	(111	)	(279	)	(223	)	Total federal income tax expense
	524			420		1,049		840		Net income
Total reclassifications for the period	$	(520	)	2,681		(853	)	6,685		Net income

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Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Leases

We have various operating leases for office space, equipment, and fleet vehicles. In addition, we have various finance leases for computer hardware. Such lease agreements, which expire at various dates through 2030, are generally renewed or replaced by similar leases.

We determine if an arrangement is a lease on the commencement date of the contract. Lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. The lease asset and liability are measured by the present value of the future minimum lease payments over the lease term. Our fleet vehicle leases include a residual value guarantee; however, it is not probable of being owed. Therefore, there is no impact to the lease liability or lease asset. To measure the present value, the discount rate available in the contract is used. If the discount rate is not readily determinable, our incremental borrowing rate is used. The lease asset is then adjusted to exclude lease incentives. We recognize variable lease payments in the period in which the obligation for those payments is incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is calculated using the straight-line method.

Upon adoption of ASU 2016-02 on January 1, 2019, we recorded operating lease right-of-use assets of $20.7 million with related lease liabilities of $21.0 million. The differential of $0.3 million was recognized, on an after-tax basis, as a cumulative-effect adjustment to the opening balance of retained earnings as of January 1, 2019. Financing lease right-of-use assets and the related lease liabilities were $0.9 million as of January 1, 2019. See Note 2. "Adoption of Accounting Pronouncements" in this Form 10-Q for additional information regarding ASU 2016-02 and accounting policy elections made.

The components of lease expense in Second Quarter and Six Months 2019 were as follows:

($ in thousands)	Quarter ended June 30, 2019			Six Months ended June 30, 2019
Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income	$	2,245		$	4,397
Finance lease cost:
Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income	315			599
Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income	7			7
Total finance lease cost	322			606
Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income	(120		)	668
Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income	437			1,175

The following table provides supplemental information regarding our operating and finance leases.

	June 30, 2019
Weighted-average remaining lease term
Operating leases	6	years
Finance leases	2
Weighted-average discount rate
Operating leases	3.4	%
Finance leases1	1.8

¹Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population.

Operating and finance lease asset and liability balances are included within the following line items on the Consolidated Balance Sheets:

($ in thousands)	June 30, 2019
Operating leases
Other assets	$	29,632
Other liabilities	30,336
Finance leases
Property and equipment - at cost, net of accumulated depreciation and amortization	1,106
Long-term debt	1,109

At June 30, 2019, the maturities of our lease liabilities were as follows:

($ in thousands)	Finance Leases		Operating Leases	Total
Year ended December 31,
2019 (excluding the six months ended June 30, 2019)	389		4,044	4,433
2020	448		7,737	8,185
2021	244		5,483	5,727
2022	53		3,912	3,965
2023	—		2,900	2,900
Thereafter	—		9,698	9,698
Total lease payments	1,134		33,774	34,908
Less: imputed interest	25		3,438	3,463
Total lease liabilities	$	1,109	30,336	31,445

At December 31, 2018, the maturities of our lease liabilities for capital and operating leases were as follows:

($ in thousands)	Capital Leases		Operating Leases	Total
2019	$	728	7,762	8,490
2020	141		7,355	7,496
2021	22		5,083	5,105
2022	—		3,641	3,641
2023	—		2,900	2,900
Thereafter	—		9,698	9,698
Total minimum payment required	$	891	36,439	37,330

Refer to Note. 3 "Statements of Cash Flows" in this Form 10-Q for supplemental cash and non-cash transactions included in the measurement of operating and finance lease liabilities.

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Litigation

6 Months Ended

Jun. 30, 2019

Loss Contingency, Information about Litigation Matters [Abstract]

Litigation

Litigation

In the ordinary course of conducting business, we are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving our ten insurance subsidiaries ("Insurance Subsidiaries") as either: (i) liability insurers defending or providing indemnity for third-party claims brought against our customers; or (ii) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid loss and loss expense reserves. We expect that any potential ultimate liability in such ordinary course claims litigation will not be material to our consolidated financial condition, results of operations, or cash flows after consideration of provisions made for potential losses and costs of defense.

From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies. Similarly, our Insurance Subsidiaries are also named from time-to-time in individual actions seeking extra-contractual damages, punitive damages, or penalties, some of which allege bad faith in the handling of insurance claims. We believe that we have valid defenses to these cases. We expect that any potential ultimate liability in any such lawsuit will not be material to our consolidated financial condition, after consideration of provisions made for estimated losses. Nonetheless, given the inherent unpredictability of litigation and the large or indeterminate amounts sought in certain of these actions, an adverse outcome in certain matters could possibly have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods.

As of June 30, 2019, we do not believe the Company was involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

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Statements of Cash Flow (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Information [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

	Six Months ended June 30,
($ in thousands)	2019		2018
Cash paid during the period for:
Interest	$	10,512	12,064
Federal income tax	28,000		4,193
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases1	3,994		—
Operating cash flows from financing leases	7		—
Financing cash flows from finance leases	596		1,333
Non-cash items:
Corporate actions related to fixed income securities, AFS2	25,104		32,133
Assets acquired under finance lease arrangements	814		—
Assets acquired under operating lease arrangements1	12,881		—
Non-cash purchase of property and equipment	—		18

¹Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets.

²Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits.

Schedule of Cash and Restricted Cash

($ in thousands)	June 30, 2019		December 31, 2018
Cash	$	504	505
Restricted cash	7,139		16,414
Total cash and restricted cash shown in the Statements of Cash Flows	$	7,643	16,919

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Investments (Tables)

6 Months Ended

Jun. 30, 2019

Investments [Line Items]

Schedule of Available-for-sale Securities

June 30, 2019
($ in thousands)	Cost/ Amortized Cost		Unrealized Gains	Unrealized Losses		Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	143,461	3,683	(20	)	147,124
Foreign government	20,995		494	—		21,489
Obligations of states and political subdivisions	1,056,507		54,516	(6	)	1,111,017
Corporate securities	1,733,319		64,620	(4,402	)	1,793,537
Collateralized loan obligations and other asset-backed securities ("CLO and other ABS")	762,896		8,649	(3,941	)	767,604
Commercial mortgage-backed securities ("CMBS")	541,093		24,737	(237	)	565,593
Residential mortgage-backed securities (“RMBS”)	1,313,220		38,588	(274	)	1,351,534
Total AFS fixed income securities	$	5,571,491	195,287	(8,880	)	5,757,898

December 31, 2018
($ in thousands)	Cost/ Amortized Cost		Unrealized Gains	Unrealized Losses		Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	120,092	1,810	(592	)	121,310
Foreign government	23,202		36	(107	)	23,131
Obligations of states and political subdivisions	1,121,615		19,485	(2,631	)	1,138,469
Corporate securities	1,639,852		5,521	(27,965	)	1,617,408
CLO and other ABS	720,193		4,112	(6,943	)	717,362
CMBS	527,409		3,417	(3,748	)	527,078
RMBS	1,118,435		12,988	(3,081	)	1,128,342
Total AFS fixed income securities	$	5,270,798	47,369	(45,067	)	5,273,100

Schedule of Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities by Length of Time, AFS

June 30, 2019	Less than 12 months				12 months or longer			Total
($ in thousands)	Fair Value		Unrealized Losses1		Fair Value	Unrealized Losses1		Fair Value	Unrealized Losses1
AFS fixed income securities:
U.S. government and government agencies	$	—	—		5,508	(20	)	5,508	(20	)
Obligations of states and political subdivisions	739		(6	)	—	—		739	(6	)
Corporate securities	94,964		(2,260	)	46,527	(2,142	)	141,491	(4,402	)
CLO and other ABS	231,823		(2,318	)	151,572	(1,623	)	383,395	(3,941	)
CMBS	59,639		(183	)	24,882	(54	)	84,521	(237	)
RMBS	34,107		(135	)	14,691	(139	)	48,798	(274	)
Total AFS fixed income securities	$	421,272	(4,902	)	243,180	(3,978	)	664,452	(8,880	)

December 31, 2018	Less than 12 months				12 months or longer			Total
($ in thousands)	Fair Value		Unrealized Losses1		Fair Value	Unrealized Losses1		Fair Value	Unrealized Losses1
AFS fixed income securities:
U.S. government and government agencies	$	6,693	(174	)	23,163	(418	)	29,856	(592	)
Foreign government	12,208		(93	)	1,482	(14	)	13,690	(107	)
Obligations of states and political subdivisions	196,798		(2,074	)	42,821	(557	)	239,619	(2,631	)
Corporate securities	1,041,952		(23,649	)	78,953	(4,316	)	1,120,905	(27,965	)
CLO and other ABS	516,106		(6,750	)	16,800	(193	)	532,906	(6,943	)
CMBS	229,338		(2,548	)	66,294	(1,200	)	295,632	(3,748	)
RMBS	139,338		(1,660	)	45,661	(1,421	)	184,999	(3,081	)
Total AFS fixed income securities	$	2,142,433	(36,948	)	275,174	(8,119	)	2,417,607	(45,067	)

  ¹ Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. 

Schedule of Fixed Maturity Securities By Contractual Maturities

	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	280,140	9,480	9,526
Due after one year through five years	2,237,395		16,860	18,109
Due after five years through 10 years	3,065,577		6,024	6,220
Due after 10 years	174,786		—	—
Total fixed income securities	$	5,757,898	32,364	33,855

Schedule of Other Investment Portfolio By Strategy And Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy

Other Investments	June 30, 2019				December 31, 2018
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	99,567	95,805	195,372	84,352	93,688	178,040
Private credit	35,103		113,133	148,236	41,682	81,453	123,135
Real assets	23,104		22,880	45,984	27,862	27,129	54,991
Total alternative investments	157,774		231,818	389,592	153,896	202,270	356,166
Other securities	24,335		—	24,335	25,042	—	25,042
Total other investments	$	182,109	231,818	413,927	178,938	202,270	381,208

¹The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. 

Schedule of Aggregated Summarized Income Statement Financial Information For Partnerships In Our Alternative Investment Portfolio

Income Statement Information	Quarter ended June 30,				Six Months ended June 30,
($ in millions)	2019		2018		2019	2018
Net investment income (loss)	$	174.1	(6.4	)	24.1	(41.8	)
Realized gains	106.0		629.5		249.3	1,223.5
Net change in unrealized appreciation (depreciation)	2,223.7		(1,200.2	)	2,778.0	(738.6	)
Net income (loss)	$	2,503.8	(577.1	)	3,051.4	443.1
Insurance subsidiaries’ alternative investments income	$	7.3	1.9		7.9	3.5

Schedule of Securities Pledged As Collateral

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	22.8	22.8
Obligations of states and political subdivisions	—		—	3.9	3.9
Corporate securities	—		—	0.3	0.3
CMBS	7.3		21.1	—	28.4
RMBS	58.1		84.2	—	142.3
Total pledged as collateral	$	65.4	105.3	27.0	197.7

Schedule of Pre-Tax Net Investment Income Earned

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Fixed income securities	$	50,907		43,774		99,940		85,815
Equity securities	1,740			1,820		3,380		3,797
Short-term investments	1,759			611		3,803		1,134
Other investments	7,494			2,094		8,154		3,657
Investment expenses	(3,395		)	(2,746	)	(6,154	)	(5,619	)
Net investment income earned	$	58,505		45,553		109,123		88,784

Schedule of Components of Net Realized and Unrealized Gains and Losses Excluding OTTI Charges

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Net realized gains (losses) on the disposals of securities:
Fixed income securities	$	2,061		(1,174	)	3,204			(4,509	)
Equity securities	851			1,226		3,131			9,295
Short-term investments	1			2		15			(1	)
Other investments	(30		)	—		(23		)	—
Net realized gains on the disposal of securities	2,883			54		6,327			4,785
OTTI charges	(971		)	(2,821	)	(1,075		)	(4,033	)
Net realized gains (losses)	1,912			(2,767	)	5,252			752
Unrealized gains (losses) recognized in income on equity securities	2,115			1,115		12,226			(12,953	)
Total net realized and unrealized investment gains (losses)	$	4,027		(1,652	)	$	17,478		(12,201	)

Schedule of Realized Gains and Losses on Disposals of Securities

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
HTM fixed income securities
Gains	$	1		—		1		2
Losses	(15		)	—		(15	)	—
AFS fixed income securities
Gains	2,643			1,971		4,487		4,594
Losses	(568		)	(3,145	)	(1,269	)	(9,105	)
Equity securities
Gains	958			1,226		3,238		9,625
Losses	(107		)	—		(107	)	(330	)
Short-term investments
Gains	2			2		16		3
Losses	(1		)	—		(1	)	(4	)
Other investments
Gains	—			—		7		—
Losses	(30		)	—		(30	)	—
Total net realized gains on disposals of securities	$	2,883		54		6,327		4,785

Equity Securities [Member]

Investments [Line Items]

Schedule of Components of Net Realized and Unrealized Gains and Losses Excluding OTTI Charges

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at June 30, 2019	$	2,394		2,301		11,817		(2,662	)
On securities sold in each respective period	(279		)	(1,186	)	409		(10,291	)
Total unrealized gains (losses) recognized in income on equity securities	$	2,115		1,115		$	12,226	(12,953	)

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Indebtedness (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Outstanding Debt

Outstanding Debt	Issuance Date	Maturity Date	Interest Rate		Original Amount		2019	Carry Value
($ in thousands)							Debt Discount and Unamortized Issuance Costs	June 30, 2019	December 31, 2018
Description
Long term
Issuance:
Senior Notes	3/1/2019	3/1/2049	5.375	%	$	300,000	9,141	290,859	—
Redemption:
Senior Notes	2/8/2013	2/9/2043	5.875	%	185,000		—	—	180,771
Other Outstanding:
FHLBI	12/16/2016	12/16/2026	3.03	%	60,000		—	60,000	60,000
FHLBNY	8/15/2016	8/16/2021	1.56	%	25,000		—	25,000	25,000
FHLBNY	7/21/2016	7/21/2021	1.61	%	25,000		—	25,000	25,000
Senior Notes	11/3/2005	11/1/2035	6.70	%	100,000		903	99,097	99,069
Senior Notes	11/16/2004	11/15/2034	7.25	%	50,000		287	49,713	49,700
Finance lease obligations1								1,109	—
Total long-term debt							10,331	550,778	439,540

¹ Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities

	June 30, 2019			December 31, 2018
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount		Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	49,909		63,519	49,907		57,032
6.70% Senior Notes	99,471		118,482	99,462		107,075
5.875% Senior Notes	—		—	185,000		177,230
5.375% Senior Notes	294,116		329,785	—		—
1.61% borrowings from FHLBNY	25,000		24,756	25,000		24,218
1.56% borrowings from FHLBNY	25,000		24,720	25,000		24,162
3.03% borrowings from FHLBI	60,000		62,393	60,000		58,905
Subtotal long-term debt	553,496		623,655	444,369		448,622
Unamortized debt issuance costs	(3,827	)		(4,829	)
Finance lease obligations	1,109			—
Total long-term debt	550,778			439,540

Schedule of Quantitative Disclosures of Our Financial Assets That Were Measured At Fair Value

June 30, 2019			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1	Significant Other  Observable Inputs  (Level 2)1	Significant Unobservable  Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	147,124	71,406	75,718	—
Foreign government	21,489		—	21,489	—
Obligations of states and political subdivisions	1,111,017		—	1,111,017	—
Corporate securities	1,793,537		—	1,777,137	16,400
CLO and other ABS	767,604		—	750,184	17,420
CMBS	565,593		—	565,593	—
RMBS	1,351,534		—	1,351,534	—
Total AFS fixed income securities	5,757,898		71,406	5,652,672	33,820
Equity securities:
Common stock2	154,505		108,916	—	—
Preferred stock	3,014		3,014	—	—
Total equity securities	157,519		111,930	—	—
Short-term investments	291,365		289,959	1,406	—
Total assets measured at fair value	$	6,206,782	473,295	5,654,078	33,820

December 31, 2018			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in  Active Markets for Identical Assets/Liabilities (Level 1)1	Significant Other Observable Inputs  (Level 2)1	Significant Unobservable Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	121,310	78,381	42,929	—
Foreign government	23,131		—	23,131	—
Obligations of states and political subdivisions	1,138,469		—	1,138,469	—
Corporate securities	1,617,408		—	1,617,408	—
CLO and other ABS	717,362		—	709,953	7,409
CMBS	527,078		—	527,078	—
RMBS	1,128,342		—	1,128,342	—
Total AFS fixed income securities	5,273,100		78,381	5,187,310	7,409
Equity securities:
Common stock2	144,727		107,397	—	—
Preferred stock	2,912		2,912	—	—
Total equity securities	147,639		110,309	—	—
Short-term investments	323,864		321,370	2,494	—
Total assets measured at fair value	$	5,744,603	510,060	5,189,804	7,409

¹  There were no transfers of securities between Level 1 and Level 2.

² 

Investments amounting to $45.6 million at June 30, 2019, and $23.7 million at December 31, 2018, were measured at fair value using net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value

Schedule of Changes in Fair Value of Securities Using Level 3 Inputs

June 30, 2019
($ in thousands)	Corporate Securities		CLO and Other ABS		Total
Fair value, December 31, 2018	—		7,409		7,409
Total net (losses) gains for the period included in:
OCI	(19	)	(118	)	(137	)
Net income	—		244		244
Purchases	—		15,984		15,984
Sales	—		—		—
Issuances	—		—		—
Settlements	—		(40	)	(40	)
Transfers into Level 3	16,419		13,603		30,022
Transfers out of Level 3	—		(19,662	)	(19,662	)
Fair value, June 30, 2019	16,400		17,420		33,820

Schedule of Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value

June 30, 2019			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in  Active Markets for  Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:
Obligations of states and political subdivisions	$	14,503	—	14,503	—
Corporate securities	19,352		—	19,352	—
Total HTM fixed income securities	$	33,855	—	33,855	—
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	63,519	—	63,519	—
6.70% Senior Notes	118,482		—	118,482	—
5.375% Senior Notes	329,785		—	329,785	—
1.61% borrowings from FHLBNY	24,756		—	24,756	—
1.56% borrowings from FHLBNY	24,720		—	24,720	—
3.03% borrowings from FHLBI	62,393		—	62,393	—
Total long-term debt	$	623,655	—	623,655	—

December 31, 2018			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in  Active Markets for  Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:
Obligations of states and political subdivisions	$	17,969	—	17,969	—
Corporate securities	20,348		—	20,348	—
Total HTM fixed income securities	$	38,317	—	38,317	—
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	57,032	—	57,032	—
6.70% Senior Notes	107,075		—	107,075	—
5.875% Senior Notes	177,230		177,230	—	—
1.61% borrowings from FHLBNY	24,218		—	24,218	—
1.56% borrowings from FHLBNY	24,162		—	24,162	—
3.03% borrowings from FHLBI	58,905		—	58,905	—
Total long-term debt	$	448,622	177,230	271,392	—

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Reinsurance (Tables)

6 Months Ended

Jun. 30, 2019

Reinsurance Disclosures [Abstract]

Schedule of List Of Direct, Assumed, And Ceded Reinsurance Amounts

	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Premiums written:
Direct	$	807,367		753,363		$	1,573,761		1,467,597
Assumed	5,333			6,536		11,888			12,807
Ceded	(111,303		)	(104,651	)	(211,305		)	(200,596	)
Net	$	701,397		655,248		$	1,374,344		1,279,808
Premiums earned:
Direct	$	740,348		696,723		$	1,468,385		1,380,456
Assumed	5,742			6,612		12,304			12,736
Ceded	(103,471		)	(98,499	)	(205,497		)	(196,528	)
Net	$	642,619		604,836		$	1,275,192		1,196,664
Loss and loss expenses incurred:
Direct	$	435,700		391,014		$	860,357		811,930
Assumed	4,348			2,364		9,613			10,368
Ceded	(59,064		)	(27,050	)	(102,407		)	(71,029	)
Net	$	380,984		366,328		$	767,563		751,269

Schedule of Ceded Premiums and Losses Related to Flood Operations

Ceded to NFIP	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019			2018
Ceded premiums written	$	(71,574	)	(66,341	)	$	(131,587	)	(123,010	)
Ceded premiums earned	(63,804		)	(60,143	)	(126,067		)	(119,134	)
Ceded loss and loss expenses incurred	(21,063		)	(10,261	)	(34,749		)	(25,980	)

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Reserve for Loss and Loss Expense (Tables)

6 Months Ended

Jun. 30, 2019

Insurance Loss Reserves [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

	Six Months ended June 30,
($ in thousands)	2019			2018
Gross reserve for loss and loss expense, at beginning of year	$	3,893,868		3,771,240
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year	537,388			585,855
Net reserve for loss and loss expense, at beginning of year	3,356,480			3,185,385
Incurred loss and loss expense for claims occurring in the:
Current year	783,938			756,855
Prior years	(16,375		)	(5,586	)
Total incurred loss and loss expense	767,563			751,269
Paid loss and loss expense for claims occurring in the:
Current year	210,374			214,169
Prior years	442,820			457,441
Total paid loss and loss expense	653,194			671,610
Net reserve for loss and loss expense, at end of period	3,470,849			3,265,044
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	556,203			539,321
Gross reserve for loss and loss expense at end of period	$	4,027,052		3,804,365

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of Revenue By Segment

Revenue by Segment	Quarter ended June 30,				Six Months ended June 30,
($ in thousands)	2019		2018		2019	2018
Standard Commercial Lines:
Net premiums earned:
Commercial automobile	$	136,338	122,104		267,524	240,335
Workers compensation	78,464		80,021		157,179	158,844
General liability	164,793		153,002		326,318	302,831
Commercial property	87,136		82,162		173,203	162,488
Businessowners’ policies	26,172		25,829		52,253	51,420
Bonds	8,967		8,335		17,871	16,469
Other	4,779		4,559		9,485	8,989
Miscellaneous income	2,718		2,882		4,762	4,708
Total Standard Commercial Lines revenue	509,367		478,894		1,008,595	946,084
Standard Personal Lines:
Net premiums earned:
Personal automobile	43,388		41,810		86,551	82,252
Homeowners	32,013		32,223		64,143	64,424
Other	1,712		1,644		3,726	3,257
Miscellaneous income	335		297		611	649
Total Standard Personal Lines revenue	77,448		75,974		155,031	150,582
E&S Lines:
Net premiums earned:
Casualty lines	44,756		39,379		89,284	77,919
Property lines	14,101		13,768		27,655	27,436
Miscellaneous income	—		—		—	1
Total E&S Lines revenue	58,857		53,147		116,939	105,356
Investments:
Net investment income	58,505		45,553		109,123	88,784
Net realized and unrealized investment gains (losses)	4,027		(1,652	)	17,478	(12,201	)
Total Investments revenue	62,532		43,901		126,601	76,583
Total revenues	$	708,204	651,916		1,407,166	1,278,605

Schedule of Income Before and After Federal Income Tax

Income Before and After Federal Income Tax	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019	2018
Standard Commercial Lines:
Underwriting gain, before federal income tax	$	37,143		41,016		62,958	47,820
Underwriting gain, after federal income tax	29,343			32,403		49,737	37,778
Combined ratio	92.7		%	91.4		93.7	94.9
ROE contribution	5.9			7.8		5.2	4.5
Standard Personal Lines:
Underwriting gain, before federal income tax	$	4,538		4,805		7,705	3,299
Underwriting gain, after federal income tax	3,585			3,796		6,087	2,606
Combined ratio	94.1		%	93.7		95.0	97.8
ROE contribution	0.7			0.9		0.6	0.3
E&S Lines:
Underwriting gain (loss), before federal income tax	$	2,944		(7,789	)	7,523	(8,354	)
Underwriting gain (loss), after federal income tax	2,326			(6,154	)	5,943	(6,600	)
Combined ratio	95.0		%	114.7		93.6	107.9
ROE contribution	0.5			(1.5	)	0.6	(0.8	)
Investments:
Net investment income	$	58,505		45,553		109,123	88,784
Net realized and unrealized investment gains (losses)	4,027			(1,652	)	17,478	(12,201	)
Total investment segment income, before federal income tax	62,532			43,901		126,601	76,583
Tax on investment segment income	11,729			7,617		23,849	12,843
Total investment segment income, after federal income tax	$	50,803		36,284		102,752	63,740
ROE contribution of after-tax net investment income	9.6			9.0		9.2	8.6

Schedule of Reconciliation of Segment Results to Income Before Federal Income Tax

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Underwriting gain (loss)
Standard Commercial Lines	$	37,143		41,016		62,958		47,820
Standard Personal Lines	4,538			4,805		7,705		3,299
E&S Lines	2,944			(7,789	)	7,523		(8,354	)
Investment income	62,532			43,901		126,601		76,583
Total all segments	107,157			81,933		204,787		119,348
Interest expense	(7,366		)	(6,125	)	(18,892	)	(12,277	)
Corporate expenses	(9,566		)	(3,283	)	(21,976	)	(14,615	)
Income, before federal income tax	$	90,225		72,525		163,919		92,456

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Retirement Plans (Table)

6 Months Ended

Jun. 30, 2019

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Cost

	Pension Plan					Pension Plan
	Quarter ended June 30,					Six Months ended June 30,
($ in thousands)	2019			2018		2019		2018
Net Periodic Pension Cost (Benefit):
Interest cost	$	3,376		3,095		6,753		6,190
Expected return on plan assets	(5,278		)	(5,681	)	(10,557	)	(11,363	)
Amortization of unrecognized net actuarial loss	643			493		1,287		987
Total net periodic pension cost (benefit)1	$	(1,259	)	(2,093	)	(2,517	)	(4,186	)

¹ The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income.

Schedule of Weighted-Average Expense Assumptions

	Pension Plan
	Six Months ended June 30,
	2019		2018
Weighted-Average Expense Assumptions:
Discount rate	4.46	%	3.78	%
Effective interest rate for calculation of interest cost	4.12		3.46
Expected return on plan assets	6.50		6.36

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Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2019

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of Components of Comprehensive Income-Gross and Net of Tax

Second Quarter 2019
($ in thousands)	Gross			Tax		Net
Net income	$	90,225		17,959		72,266
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	83,546			17,544		66,002
Amounts reclassified into net income:
HTM securities	(21		)	(4	)	(17	)
Realized gains on disposals and OTTI of AFS securities	(1,300		)	(273	)	(1,027	)
Total unrealized gains on investment securities	82,225			17,267		64,958
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	664			140		524
Total defined benefit pension and post-retirement plans	664			140		524
Other comprehensive income	82,889			17,407		65,482
Comprehensive income	$	173,114		35,366		137,748
Second Quarter 2018
($ in thousands)	Gross			Tax		Net
Net income	$	72,525		13,706		58,819
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(23,993		)	(5,038	)	(18,955	)
Amounts reclassified into net income:
HTM securities	(8		)	(2	)	(6	)
Realized losses on disposals and OTTI of AFS securities	2,870			603		2,267
Total unrealized losses on investment securities	(21,131		)	(4,437	)	(16,694	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	531			111		420
Total defined benefit pension and post-retirement plans	531			111		420
Other comprehensive loss	(20,600		)	(4,326	)	(16,274	)
Comprehensive income	$	51,925		9,380		42,545

Six Months 2019
($ in thousands)	Gross			Tax		Net
Net income	$	163,919		30,305		133,614
Components of OCI:
Unrealized gains on investment securities:
Unrealized holding gains during the period	186,472			39,157		147,315
Amounts reclassified into net income:
HTM securities	(30		)	(6	)	(24	)
Realized gains on disposals and OTTI of AFS securities	(2,377		)	(499	)	(1,878	)
Total unrealized gains on investment securities	184,065			38,652		145,413
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,328			279		1,049
Total defined benefit pension and post-retirement plans	1,328			279		1,049
Other comprehensive income	185,393			38,931		146,462
Comprehensive income	$	349,312		69,236		280,076
Six Months 2018
($ in thousands)	Gross			Tax		Net
Net income	$	92,456		14,712		77,744
Components of other comprehensive loss:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(109,308		)	(22,955	)	(86,353	)
Amounts reclassified into net income:
HTM securities	(20		)	(4	)	(16	)
Realized losses on disposals and OTTI of AFS securities	7,419			1,558		5,861
Total unrealized losses on investment securities	(101,909		)	(21,401	)	(80,508	)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,063			223		840
Total defined benefit pension and post-retirement plans	1,063			223		840
Other comprehensive loss	(100,846		)	(21,178	)	(79,668	)
Comprehensive loss	$	(8,390	)	(6,466	)	(1,924	)

Schedule of Components of Accumulated Other Comprehensive Income Net of Tax

June 30, 2019										Defined Benefit Pension and Post-Retirement Plans
	Net Unrealized Gains (Losses) on Investment Securities											Total AOCI
($ in thousands)	OTTI Related			HTM Related		All Other		Investments Subtotal
Balance, December 31, 2018	$	(71	)	71		1,888		1,888		(79,844	)	(77,956	)
OCI before reclassifications	—			—		147,315		147,315		—		147,315
Amounts reclassified from AOCI	—			(24	)	(1,878	)	(1,902	)	1,049		(853	)
Net current period OCI	—			(24	)	145,437		145,413		1,049		146,462
Balance, June 30, 2019	$	(71	)	47		147,325		147,301		(78,795	)	68,506

Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income

	Quarter ended June 30,					Six Months ended June 30,				Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2019			2018		2019		2018
HTM related
Unrealized losses on HTM disposals	$	(9	)	(7	)	(9	)	(6	)	Net realized and unrealized gains (losses)
Amortization of net unrealized gains on HTM securities	(12		)	(1	)	(21	)	(14	)	Net investment income earned
	(21		)	(8	)	(30	)	(20	)	Income before federal income tax
	4			2		6		4		Total federal income tax expense
	(17		)	(6	)	(24	)	(16	)	Net income
Realized (gains) losses on AFS and OTTI
Realized (gains) losses on AFS disposals and OTTI	(1,300		)	2,870		(2,377	)	7,419		Net realized and unrealized gains (losses)
	(1,300		)	2,870		(2,377	)	7,419		Income before federal income tax
	273			(603	)	499		(1,558	)	Total federal income tax expense
	(1,027		)	2,267		(1,878	)	5,861		Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	145			113		290		225		Loss and loss expense incurred
	519			418		1,038		838		Other insurance expenses
Total defined benefit pension and post-retirement life	664			531		1,328		1,063		Income before federal income tax
	(140		)	(111	)	(279	)	(223	)	Total federal income tax expense
	524			420		1,049		840		Net income
Total reclassifications for the period	$	(520	)	2,681		(853	)	6,685		Net income

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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Components of Lease Expense

($ in thousands)	Quarter ended June 30, 2019			Six Months ended June 30, 2019
Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income	$	2,245		$	4,397
Finance lease cost:
Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income	315			599
Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income	7			7
Total finance lease cost	322			606
Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income	(120		)	668
Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income	437			1,175

Supplemental Lease Information

	June 30, 2019
Weighted-average remaining lease term
Operating leases	6	years
Finance leases	2
Weighted-average discount rate
Operating leases	3.4	%
Finance leases1	1.8

¹Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population.

Lease Assets and Liabilities

($ in thousands)	June 30, 2019
Operating leases
Other assets	$	29,632
Other liabilities	30,336
Finance leases
Property and equipment - at cost, net of accumulated depreciation and amortization	1,106
Long-term debt	1,109

Maturities of Lease Liabilities

($ in thousands)	Finance Leases		Operating Leases	Total
Year ended December 31,
2019 (excluding the six months ended June 30, 2019)	389		4,044	4,433
2020	448		7,737	8,185
2021	244		5,483	5,727
2022	53		3,912	3,965
2023	—		2,900	2,900
Thereafter	—		9,698	9,698
Total lease payments	1,134		33,774	34,908
Less: imputed interest	25		3,438	3,463
Total lease liabilities	$	1,109	30,336	31,445

Schedule of Future Minimum Rental Commitments For Non-Cancelable Leases

($ in thousands)	Capital Leases		Operating Leases	Total
2019	$	728	7,762	8,490
2020	141		7,355	7,496
2021	22		5,083	5,105
2022	—		3,641	3,641
2023	—		2,900	2,900
Thereafter	—		9,698	9,698
Total minimum payment required	$	891	36,439	37,330

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Statements of Cash Flows (Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018
Interest		$ 10,512	$ 12,064
Federal income tax		28,000	4,193
Operating cash flows from operating leases	[1]	3,994	0
Operating cash flows from financing leases		7	0
Financing cash flows from finance leases		596	1,333
Assets acquired under finance lease arrangements		814	0
Assets acquired under operating lease arrangements	[1]	12,881	0
Non-cash purchase of property and equipment		0	18
AFS Fixed Income Securities [Member]
Corporate actions related to securities	[2]	$ 25,104	$ 32,133

[1] Upon adoption of ASU 2016-02, effective January 1, 2019, we are required to disclose cash paid for amounts included in the measurement of operating lease liabilities, as well as supplemental non-cash information on operating lease liabilities arising from obtaining operating lease assets.

[2] Examples of such corporate actions include exchanges, non-cash acquisitions, and stock splits.

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Statements of Cash Flows (Schedule of Cash and Restricted Cash) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Schedule of Cash and Restricted Cash [Line Items]
Cash	$ 504	$ 505
Restricted cash	7,139	16,414
Total cash and restricted cash shown in the Statements of Cash Flows	$ 7,643	$ 16,919	$ 16,480	$ 44,710

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Investments (Held-To-Maturity Securities Disclosure) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Held-to-maturity Securities [Line Items]
HTM Securities Percent of Invested Assets	1.00%	1.00%
HTM, Carrying Value	$ 32,364	$ 37,110
Net unrealized unrecognized gains on held to maturity securities	1,600	1,300
Gross unrealized unrecognized loss	$ 100	$ 200

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Investments (Available-For-Sale Securities Disclosure) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	$ 5,571,491	$ 5,270,798
Unrealized Gains	195,287	47,369
Unrealized Losses	(8,880)	(45,067)
Debt Securities, Available-for-sale	5,757,898	5,273,100
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	143,461	120,092
Unrealized Gains	3,683	1,810
Unrealized Losses	(20)	(592)
Debt Securities, Available-for-sale	147,124	121,310
AFS Fixed Income Securities [Member] | Foreign Government [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	20,995	23,202
Unrealized Gains	494	36
Unrealized Losses	0	(107)
Debt Securities, Available-for-sale	21,489	23,131
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	1,056,507	1,121,615
Unrealized Gains	54,516	19,485
Unrealized Losses	(6)	(2,631)
Debt Securities, Available-for-sale	1,111,017	1,138,469
AFS Fixed Income Securities [Member] | Corporate Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	1,733,319	1,639,852
Unrealized Gains	64,620	5,521
Unrealized Losses	(4,402)	(27,965)
Debt Securities, Available-for-sale	1,793,537	1,617,408
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	762,896	720,193
Unrealized Gains	8,649	4,112
Unrealized Losses	(3,941)	(6,943)
Debt Securities, Available-for-sale	767,604	717,362
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	541,093	527,409
Unrealized Gains	24,737	3,417
Unrealized Losses	(237)	(3,748)
Debt Securities, Available-for-sale	565,593	527,078
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	1,313,220	1,118,435
Unrealized Gains	38,588	12,988
Unrealized Losses	(274)	(3,081)
Debt Securities, Available-for-sale	$ 1,351,534	$ 1,128,342

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Investments (Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities By Length of Time) (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Percent Of Securities of Amortized Cost In An Unrealized Unrecognized Loss Position		1.00%	2.00%
AFS Fixed Income Securities [Member]
AFS Fair Value, Less than 12 Months		$ 421,272	$ 2,142,433
AFS Unrealized Losses, Less than 12 months	[1]	(4,902)	(36,948)
AFS Fair Value, 12 months or longer		243,180	275,174
AFS Unrealized Losses, 12 months or longer	[1]	(3,978)	(8,119)
AFS Fair Value		664,452	2,417,607
AFS Unrealized Losses	[1]	(8,880)	(45,067)
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member]
AFS Fair Value, Less than 12 Months		0	6,693
AFS Unrealized Losses, Less than 12 months	[1]	0	(174)
AFS Fair Value, 12 months or longer		5,508	23,163
AFS Unrealized Losses, 12 months or longer	[1]	(20)	(418)
AFS Fair Value		5,508	29,856
AFS Unrealized Losses	[1]	(20)	(592)
AFS Fixed Income Securities [Member] | Foreign Government [Member]
AFS Fair Value, Less than 12 Months			12,208
AFS Unrealized Losses, Less than 12 months	[1]		(93)
AFS Fair Value, 12 months or longer			1,482
AFS Unrealized Losses, 12 months or longer	[1]		(14)
AFS Fair Value			13,690
AFS Unrealized Losses	[1]		(107)
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member]
AFS Fair Value, Less than 12 Months		739	196,798
AFS Unrealized Losses, Less than 12 months	[1]	(6)	(2,074)
AFS Fair Value, 12 months or longer		0	42,821
AFS Unrealized Losses, 12 months or longer	[1]	0	(557)
AFS Fair Value		739	239,619
AFS Unrealized Losses	[1]	(6)	(2,631)
AFS Fixed Income Securities [Member] | Corporate Securities [Member]
AFS Fair Value, Less than 12 Months		94,964	1,041,952
AFS Unrealized Losses, Less than 12 months	[1]	(2,260)	(23,649)
AFS Fair Value, 12 months or longer		46,527	78,953
AFS Unrealized Losses, 12 months or longer	[1]	(2,142)	(4,316)
AFS Fair Value		141,491	1,120,905
AFS Unrealized Losses	[1]	(4,402)	(27,965)
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
AFS Fair Value, Less than 12 Months		231,823	516,106
AFS Unrealized Losses, Less than 12 months	[1]	(2,318)	(6,750)
AFS Fair Value, 12 months or longer		151,572	16,800
AFS Unrealized Losses, 12 months or longer	[1]	(1,623)	(193)
AFS Fair Value		383,395	532,906
AFS Unrealized Losses	[1]	(3,941)	(6,943)
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member]
AFS Fair Value, Less than 12 Months		59,639	229,338
AFS Unrealized Losses, Less than 12 months	[1]	(183)	(2,548)
AFS Fair Value, 12 months or longer		24,882	66,294
AFS Unrealized Losses, 12 months or longer	[1]	(54)	(1,200)
AFS Fair Value		84,521	295,632
AFS Unrealized Losses	[1]	(237)	(3,748)
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member]
AFS Fair Value, Less than 12 Months		34,107	139,338
AFS Unrealized Losses, Less than 12 months	[1]	(135)	(1,660)
AFS Fair Value, 12 months or longer		14,691	45,661
AFS Unrealized Losses, 12 months or longer	[1]	(139)	(1,421)
AFS Fair Value		48,798	184,999
AFS Unrealized Losses	[1]	$ (274)	$ (3,081)

[1] Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. 

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Investments (Fixed Income Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Fixed Income Securities [Line Items]
Due in one year or less fair value, AFS	$ 280,140
Due after one year through five years fair value, AFS	2,237,395
Due after five years through 10 years fair value, AFS	3,065,577
Due after 10 years fair value, AFS	174,786
AFS, Fair Value	5,757,898	$ 5,273,100
Due in one year or less carrying value, HTM	9,480
Due after one year through five years carrying value, HTM	16,860
Due after five years through 10 years carrying value, HTM	6,024
Due after 10 years carrying value, HTM	0
HTM, Carrying Value	32,364	37,110
Due in one year or less fair value, HTM	9,526
Due after one year through five years fair value, HTM	18,109
Due after five years through 10 years fair value, HTM	6,220
Due after 10 years fair value, HTM	0
HTM, Fair Value	$ 33,855	$ 38,317

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Investments (Other Investment Portfolio by Strategy and the Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy) (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Carrying Value		$ 182,109	$ 178,938
Other Investments [Member]
Carrying Value		182,109	178,938
Remaining Commitment		231,818	202,270
Maximum Exposure to Loss	[1]	413,927	381,208
Alternative Investments [Member]
Carrying Value		157,774	153,896
Remaining Commitment		231,818	202,270
Maximum Exposure to Loss	[1]	389,592	356,166
Private Equity [Member] | Alternative Investments [Member]
Carrying Value		99,567	84,352
Remaining Commitment		95,805	93,688
Maximum Exposure to Loss	[1]	195,372	178,040
Private Credit [Member] | Alternative Investments [Member]
Carrying Value		35,103	41,682
Remaining Commitment		113,133	81,453
Maximum Exposure to Loss	[1]	148,236	123,135
Real Assets [Member] | Alternative Investments [Member]
Carrying Value		23,104	27,862
Remaining Commitment		22,880	27,129
Maximum Exposure to Loss	[1]	45,984	54,991
Other Securities [Member]
Carrying Value		24,335	25,042
Remaining Commitment		0	0
Maximum Exposure to Loss	[1]	$ 24,335	$ 25,042

[1] The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. 

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Investments (Aggregated Income Statement Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule of Equity Method Investments [Line Items]
Net investment income earned	$ 58,505	$ 45,553	$ 109,123	$ 88,784
Alternative Investments [Member]
Schedule of Equity Method Investments [Line Items]
Net investment income earned	7,300	1,900	7,900	3,500
Investments accounted for under the equity method [Member]
Schedule of Equity Method Investments [Line Items]
Net investment income (loss)	174,100	(6,400)	24,100	(41,800)
Realized gains	106,000	629,500	249,300	1,223,500
Net change in unrealized appreciation (depreciation)	2,223,700	(1,200,200)	2,778,000	(738,600)
Net income (loss)	$ 2,503,800	$ (577,100)	$ 3,051,400	$ 443,100

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Investments (Investments Pledged as Collateral) (Details) $ in Millions	Jun. 30, 2019 USD ($)
Financial Instruments Owned and Pledged as Collateral [Line Items]
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies	$ 27.0
Securities Pledged As Collateral	197.7
U.S. Government and Government Agencies [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies	22.8
Securities Pledged As Collateral	22.8
Obligations of States and Political Subdivisions [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies	3.9
Securities Pledged As Collateral	3.9
Corporate Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies	0.3
Securities Pledged As Collateral	0.3
Commercial Mortgage Backed Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies	0.0
Securities Pledged As Collateral	28.4
Residential Mortgage Backed Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Carrying Value Bonds On Deposit With Various State And Regulatory Agencies	0.0
Securities Pledged As Collateral	142.3
Federal Home Loan Bank of Indianapolis [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	65.4
Federal Home Loan Bank of Indianapolis [Member] | U.S. Government and Government Agencies [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	0.0
Federal Home Loan Bank of Indianapolis [Member] | Obligations of States and Political Subdivisions [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	0.0
Federal Home Loan Bank of Indianapolis [Member] | Corporate Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	0.0
Federal Home Loan Bank of Indianapolis [Member] | Commercial Mortgage Backed Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	7.3
Federal Home Loan Bank of Indianapolis [Member] | Residential Mortgage Backed Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	58.1
Federal Home Loan Bank of New York [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	105.3
Federal Home Loan Bank of New York [Member] | U.S. Government and Government Agencies [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	0.0
Federal Home Loan Bank of New York [Member] | Obligations of States and Political Subdivisions [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	0.0
Federal Home Loan Bank of New York [Member] | Corporate Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	0.0
Federal Home Loan Bank of New York [Member] | Commercial Mortgage Backed Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	21.1
Federal Home Loan Bank of New York [Member] | Residential Mortgage Backed Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Fixed Income Securities Pledged For FHLB Collateral	$ 84.2

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Investments (Credit Concentration Risk) (Details)	Jun. 30, 2019	Dec. 31, 2018
Investments [Abstract]
Maximum exposure to credit concentration risk of the Company's stockholder's equity other than certain U.S. government-backed investments	10.00%	10.00%

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Investments (Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net Investment Income [Line Items]
Net investment income earned	$ 58,505	$ 45,553	$ 109,123	$ 88,784
Fixed Income Securities [Member]
Net Investment Income [Line Items]
Net investment income earned	50,907	43,774	99,940	85,815
Equity Securities [Member]
Net Investment Income [Line Items]
Net investment income earned	1,740	1,820	3,380	3,797
Short-Term Investments [Member]
Net Investment Income [Line Items]
Net investment income earned	1,759	611	3,803	1,134
Other Investments [Member]
Net Investment Income [Line Items]
Net investment income earned	7,494	2,094	8,154	3,657
Investment Expenses [Member]
Net Investment Income [Line Items]
Net investment income earned	$ (3,395)	$ (2,746)	$ (6,154)	$ (5,619)

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Investments (OTTI) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Investments [Abstract]
OTTI Charges	$ 971	$ 2,821	$ 1,075	$ 4,033

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Investments (Components Of Net Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Gain (Loss) on Securities [Line Items]
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges)	$ 2,883	$ 54	$ 6,327	$ 4,785
OTTI Charges	(971)	(2,821)	(1,075)	(4,033)
Net realized gains (losses)	1,912	(2,767)	5,252	752
Unrealized gains (losses) recognized in income on equity securities	2,115	1,115	12,226	(12,953)
Net realized and unrealized gains (losses)	4,027	(1,652)	17,478	(12,201)
Fixed Income Securities [Member]
Gain (Loss) on Securities [Line Items]
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges)	2,061	(1,174)	3,204	(4,509)
Equity Securities [Member]
Gain (Loss) on Securities [Line Items]
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges)	851	1,226	3,131	9,295
Short-Term Investments [Member]
Gain (Loss) on Securities [Line Items]
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges)	1	2	15	(1)
Other Investments [Member]
Gain (Loss) on Securities [Line Items]
Net realized (losses) gains on disposals of securities, fixed income securities (excluding OTTI charges)	$ (30)	$ 0	$ (23)	$ 0

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Investments (Realized and Unrealized Gains (Losses) on Equity Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Gain (Loss) on Securities [Line Items]
Unrealized gains (losses) recognized in income on equity securities on securities remaining in our portfolio at June 30, 2019	$ 2,394	$ 2,301	$ 11,817	$ (2,662)
Unrealized gains (losses) recognized in income on equity securities on securities sold in each respective period	(279)	(1,186)	409	(10,291)
Total unrealized gains (losses) recognized in income on equity securities	$ 2,115	$ 1,115	$ 12,226	$ (12,953)

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Investments (Net Realized Gains (Losses) on Disposals) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule of Realized Gains (Losses) on Disposals Excluding OTTI [Line Items]
HTM fixed income securities Gains	$ 1	$ 0	$ 1	$ 2
HTM fixed income securities Losses	(15)	0	(15)	0
Equity securities Gains	958	1,226	3,238	9,625
Equity securities Losses	(107)	0	(107)	(330)
Short-term investments Gains	2	2	16	3
Short-term investments Losses	(1)	0	(1)	(4)
Other investments Gains	0	0	7	0
Other investments Losses	(30)	0	(30)	0
Net realized investment gains on disposals	2,883	54	6,327	4,785
Proceeds from sale of fixed income securities, AFS	153,700	262,900	372,159	938,276
Proceeds from sale of equity securities	26,400	2,900	30,094	43,590
Fixed Maturities [Member]
Schedule of Realized Gains (Losses) on Disposals Excluding OTTI [Line Items]
AFS securities Gains	2,643	1,971	4,487	4,594
AFS securities Losses	$ (568)	$ (3,145)	$ (1,269)	$ (9,105)

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Indebtedness (Schedule of Outstanding Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2019		Jan. 01, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt Discount and Unamortized Issuance Cost	$ 10,331
Finance lease liabilities	1,109	[1]	$ 900	$ 0	[1]
Long-term Debt	$ 550,778
Long-term Debt				439,540
Five Point Three Hundred Seventy Five Senior Notes [Member]
Debt Instrument [Line Items]
Interest Rate	5.375%
Original Amount	$ 300,000
Debt Discount and Unamortized Issuance Cost	9,141
Long-term Debt	$ 290,859
Long-term Debt				0
Five Point Eight Hundred Seventy Five Senior Notes [Member]
Debt Instrument [Line Items]
Interest Rate	5.875%
Original Amount	$ 185,000
Debt Discount and Unamortized Issuance Cost	0
Long-term Debt	$ 0
Long-term Debt				180,771
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Debt Instrument [Line Items]
Interest Rate	3.03%
Original Amount	$ 60,000
Debt Discount and Unamortized Issuance Cost	0
Long-term Debt	$ 60,000
Long-term Debt				60,000
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Debt Instrument [Line Items]
Interest Rate	1.56%
Original Amount	$ 25,000
Debt Discount and Unamortized Issuance Cost	0
Long-term Debt	$ 25,000
Long-term Debt				25,000
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Debt Instrument [Line Items]
Interest Rate	1.61%
Original Amount	$ 25,000
Debt Discount and Unamortized Issuance Cost	0
Long-term Debt	$ 25,000
Long-term Debt				25,000
Six Point Seventy Percent Senior Notes [Member]
Debt Instrument [Line Items]
Interest Rate	6.70%
Original Amount	$ 100,000
Debt Discount and Unamortized Issuance Cost	903
Long-term Debt	$ 99,097
Long-term Debt				99,069
Seven Point Twenty Five Percent Senior Notes [Member]
Debt Instrument [Line Items]
Interest Rate	7.25%
Original Amount	$ 50,000
Debt Discount and Unamortized Issuance Cost	287
Long-term Debt	$ 49,713
Long-term Debt				$ 49,700

[1] Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

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Indebtedness (Short Term Debt Activity) (Details) - Two Point Sixty Four Percent Borrowing from Federal Home Loan Bank Due March 28, 2019 [Member] $ in Millions	Jun. 30, 2019 USD ($)
Short-term Debt [Line Items]
Federal Home Loan Bank Advances	$ 50
Federal Home Loan Bank, Advances, Interest Rate	2.64%

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Indebtedness (Long Term Debt Activity) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Debt Instrument [Line Items]
Net Proceeds from Debt Offering	$ 340,757	$ 130,000
Five Point Three Hundred Seventy Five Senior Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 300,000
Interest Rate	5.375%
Debt Discount	$ 5,900
Unamortized Debt Issuance Expense	3,300
Net Proceeds from Debt Offering	290,800
Proceeds from Debt Issuance, After Redemption	106,000
Five Point Eight Hundred Seventy Five Senior Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 185,000
Interest Rate	5.875%
Debt Retirement Costs, Before Tax	$ 4,200
Debt Retirement Costs, Net of Tax	$ 3,300

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Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019		Jan. 01, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance lease liabilities	$ 1,109	[1]	$ 900	$ 0	[1]
Long-term Debt	550,778
Long-term Debt				439,540
Long-term debt, fair value	623,655			448,622
Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	49,713
Long-term Debt				49,700
Long-term debt, fair value	63,519			57,032
Seven Point Twenty Five Percent Senior Notes [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	49,909			49,907
Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	99,097
Long-term Debt				99,069
Long-term debt, fair value	118,482			107,075
Six Point Seventy Percent Senior Notes [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	99,471			99,462
Five Point Eight Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	0
Long-term Debt				180,771
Long-term debt, fair value	0			177,230
Five Point Eight Hundred Seventy Five Senior Notes [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	0			185,000
Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	290,859
Long-term Debt				0
Long-term debt, fair value	329,785			0
Five Point Three Hundred Seventy Five Senior Notes [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	294,116			0
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	25,000
Long-term Debt				25,000
Long-term debt, fair value	24,756			24,218
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	25,000			25,000
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	25,000
Long-term Debt				25,000
Long-term debt, fair value	24,720			24,162
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	25,000			25,000
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	60,000
Long-term Debt				60,000
Long-term debt, fair value	62,393			58,905
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	60,000			60,000
Long Term Debt Excluding Issuance Costs and Finance Lease Obligations [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt	553,496			444,369
Unamortized Debt Issuance Costs [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt issuance costs	$ (3,827)			$ (4,829)

[1] Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

XML

Fair Value Measurements (Quantitative Disclosures of Fair Value Assets) (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
AFS Fixed Income Securities		$ 5,757,898	$ 5,273,100
Equity Securities		157,519	147,639
Short-term investments		291,365	323,864
Net Asset Value		45,600	23,700
Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		5,757,898	5,273,100
Equity Securities		157,519	147,639
Short-term investments		291,365	323,864
Total assets measured at fair value		6,206,782	5,744,603
U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		147,124	121,310
Foreign Government [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		21,489	23,131
Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		1,111,017	1,138,469
Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		1,793,537	1,617,408
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		767,604	717,362
Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		565,593	527,078
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		1,351,534	1,128,342
Common Stock [Member] | Fair Value, Measurements, Recurring [Member]
Equity Securities	[1]	154,505	144,727
Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member]
Equity Securities		3,014	2,912
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	71,406	78,381
Equity Securities	[2]	111,930	110,309
Short-term investments	[2]	289,959	321,370
Total assets measured at fair value	[2]	473,295	510,060
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	71,406	78,381
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member]
Equity Securities	[1],[2]	108,916	107,397
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member]
Equity Securities	[2]	3,014	2,912
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	5,652,672	5,187,310
Equity Securities	[2]	0	0
Short-term investments	[2]	1,406	2,494
Total assets measured at fair value	[2]	5,654,078	5,189,804
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	75,718	42,929
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	21,489	23,131
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	1,111,017	1,138,469
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	1,777,137	1,617,408
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	750,184	709,953
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	565,593	527,078
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities	[2]	1,351,534	1,128,342
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member]
Equity Securities	[1],[2]	0	0
Significant Other Observable Inputs (Level 2) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member]
Equity Securities	[2]	0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		33,820	7,409
Equity Securities		0	0
Short-term investments		0	0
Total assets measured at fair value		33,820	7,409
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		16,400	0
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		17,420	7,409
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member]
Equity Securities	[1]	0	0
Significant Unobservable Inputs (Level 3) [Member] | Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member]
Equity Securities		$ 0	$ 0

[1] Investments amounting to $45.6 million at June 30, 2019, and $23.7 million at December 31, 2018, were measured at fair value using net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

[2] There were no transfers of securities between Level 1 and Level 2.

XML

Fair Value Measurements (Change in Fair Value of Securities Using Level 3 Inputs) (Details) - Available-for-sale Securities [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31, 2018	$ 0
Total net (losses) gains for the period included in OCI	(19)
Total net (losses) gains for the period included in net income	0
Purchases	0
Sales	0
Issuances	0
Settlements	0
Transfers into Level 3	16,419
Transfers out of Level 3	0
Fair value, June 30, 2019	16,400
Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31, 2018	7,409
Total net (losses) gains for the period included in OCI	(118)
Total net (losses) gains for the period included in net income	244
Purchases	15,984
Sales	0
Issuances	0
Settlements	(40)
Transfers into Level 3	13,603
Transfers out of Level 3	(19,662)
Fair value, June 30, 2019	17,420
Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31, 2018	7,409
Total net (losses) gains for the period included in OCI	(137)
Total net (losses) gains for the period included in net income	244
Purchases	15,984
Sales	0
Issuances	0
Settlements	(40)
Transfers into Level 3	30,022
Transfers out of Level 3	(19,662)
Fair value, June 30, 2019	$ 33,820

XML

Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	$ 33,855	$ 38,317
Long-term debt, fair value	623,655	448,622
Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	63,519	57,032
Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	118,482	107,075
Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	329,785	0
Five Point Eight Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	177,230
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	24,756	24,218
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	24,720	24,162
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	62,393	58,905
Long-term Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	623,655	448,622
Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	14,503	17,969
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	19,352	20,348
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	0	0
Long-term debt, fair value	0	177,230
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value		177,230
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	33,855	38,317
Long-term debt, fair value	623,655	271,392
Significant Other Observable Inputs (Level 2) [Member] | Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	63,519	57,032
Significant Other Observable Inputs (Level 2) [Member] | Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	118,482	107,075
Significant Other Observable Inputs (Level 2) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	329,785
Significant Other Observable Inputs (Level 2) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value		0
Significant Other Observable Inputs (Level 2) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	24,756	24,218
Significant Other Observable Inputs (Level 2) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	24,720	24,162
Significant Other Observable Inputs (Level 2) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	62,393	58,905
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	14,503	17,969
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	19,352	20,348
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	0	0
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0
Significant Unobservable Inputs (Level 3) [Member] | Five Point Eight Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value		0
Significant Unobservable Inputs (Level 3) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Held-to-maturity securities, fair value	$ 0	$ 0

XML

Reinsurance (List of Direct, Assumed, and Ceded Reinsurance Amounts) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Premiums written:
Direct	$ 807,367	$ 753,363	$ 1,573,761	$ 1,467,597
Assumed	5,333	6,536	11,888	12,807
Ceded	(111,303)	(104,651)	(211,305)	(200,596)
Net	701,397	655,248	1,374,344	1,279,808
Premiums earned:
Direct	740,348	696,723	1,468,385	1,380,456
Assumed	5,742	6,612	12,304	12,736
Ceded	(103,471)	(98,499)	(205,497)	(196,528)
Net	642,619	604,836	1,275,192	1,196,664
Loss and loss expenses incurred:
Direct	435,700	391,014	860,357	811,930
Assumed	4,348	2,364	9,613	10,368
Ceded	(59,064)	(27,050)	(102,407)	(71,029)
Net	380,984	$ 366,328	$ 767,563	$ 751,269
Fire [Member]
Loss and loss expenses incurred:
Ceded	$ (17,400)

XML

Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Ceded premiums written	$ (111,303)	$ (104,651)	$ (211,305)	$ (200,596)
Ceded premiums earned	(103,471)	(98,499)	(205,497)	(196,528)
Ceded loss and loss expenses incurred	(59,064)	(27,050)	$ (102,407)	(71,029)
National Flood Insurance Program [Member]
Percentage of NFIP claims ceded by federal government			100.00%
Ceded premiums written	(71,574)	(66,341)	$ (131,587)	(123,010)
Ceded premiums earned	(63,804)	(60,143)	(126,067)	(119,134)
Ceded loss and loss expenses incurred	$ (21,063)	$ (10,261)	$ (34,749)	$ (25,980)

XML

Reserve for Loss and Loss Expense (Rollforward of Reserve for Loss and Loss Expense) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Liability for Claims and Claims Adjustment Expense [Line Items]
Gross reserve for loss and loss expense, at beginning of year	$ 3,893,868	$ 3,771,240
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year	537,388	585,855
Net reserve for loss and loss expense, at beginning of year	3,356,480	3,185,385
Incurred loss and loss expense for claims occurring in the current year	783,938	756,855
Total incurred loss and loss expense	767,563	751,269
Paid loss and loss expense for claims occurring in the current year	210,374	214,169
Paid loss and loss expense for claims occurring in the prior years	442,820	457,441
Total paid loss and loss expense	653,194	671,610
Net reserve for loss and loss expense, at end of period	3,470,849	3,265,044
Add: reinsurance recoverable on unpaid loss and loss expense, at end of period	556,203	539,321
Gross reserve for loss and loss expense, at end of period	4,027,052	3,804,365
Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(16,375)	(5,586)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development		(12,000)
Property Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	10,600	6,400
Workers Compensation [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(20,000)	(33,000)
General Liability [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	$ (7,000)
Commercial Automobile [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development		15,000
Excess And Surplus Operations [Member] | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development		$ 6,000

XML

Segment Information Narrative (Details)	6 Months Ended
	Jun. 30, 2019
Number of Operating Segments	4

XML

Segment Information (Revenue by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total net premiums earned	$ 642,619	$ 604,836	$ 1,275,192	$ 1,196,664
Miscellaneous income	3,053	3,179	5,373	5,358
Net investment income	58,505	45,553	109,123	88,784
Net realized and unrealized investment gains (losses)	4,027	(1,652)	17,478	(12,201)
Total investment revenues	62,532	43,901	126,601	76,583
Total revenues	708,204	651,916	1,407,166	1,278,605
Standard Commercial Lines [Member]
Segment Reporting Information [Line Items]
Miscellaneous income	2,718	2,882	4,762	4,708
Total revenues	509,367	478,894	1,008,595	946,084
Standard Commercial Lines [Member] | Commercial Automobile [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	136,338	122,104	267,524	240,335
Standard Commercial Lines [Member] | Workers Compensation [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	78,464	80,021	157,179	158,844
Standard Commercial Lines [Member] | General Liability [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	164,793	153,002	326,318	302,831
Standard Commercial Lines [Member] | Commercial Property [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	87,136	82,162	173,203	162,488
Standard Commercial Lines [Member] | Business Owners' Policies [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	26,172	25,829	52,253	51,420
Standard Commercial Lines [Member] | Bonds Segment [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	8,967	8,335	17,871	16,469
Standard Commercial Lines [Member] | Other Commercial [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	4,779	4,559	9,485	8,989
Standard Personal Lines [Member]
Segment Reporting Information [Line Items]
Miscellaneous income	335	297	611	649
Total revenues	77,448	75,974	155,031	150,582
Standard Personal Lines [Member] | Personal Automobile [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	43,388	41,810	86,551	82,252
Standard Personal Lines [Member] | Homeowners [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	32,013	32,223	64,143	64,424
Standard Personal Lines [Member] | Other Personal [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	1,712	1,644	3,726	3,257
Excess And Surplus Operations [Member]
Segment Reporting Information [Line Items]
Miscellaneous income	0	0	0	1
Total revenues	58,857	53,147	116,939	105,356
Excess And Surplus Operations [Member] | Casualty Insurance Product Line [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	44,756	39,379	89,284	77,919
Excess And Surplus Operations [Member] | Property Insurance Product Line [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	$ 14,101	$ 13,768	$ 27,655	$ 27,436

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Segment Information (Income Before and After Federal Income Tax) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Net investment income	$ 58,505	$ 45,553	$ 109,123	$ 88,784
Net realized and unrealized investment gains (losses)	4,027	(1,652)	17,478	(12,201)
Total investment income, before federal income tax	62,532	43,901	126,601	76,583
Tax on investment income	11,729	7,617	23,849	12,843
Total investment income, after federal income tax	50,803	36,284	102,752	63,740
Standard Commercial Lines [Member]
Segment Reporting Information [Line Items]
Underwriting gain (loss), before federal income tax	37,143	41,016	62,958	47,820
Underwriting gain (loss), after federal income tax	$ 29,343	$ 32,403	$ 49,737	$ 37,778
Combined ratio	92.70%	91.40%	93.70%	94.90%
ROE Contribution	5.90%	7.80%	5.20%	4.50%
Standard Personal Lines [Member]
Segment Reporting Information [Line Items]
Underwriting gain (loss), before federal income tax	$ 4,538	$ 4,805	$ 7,705	$ 3,299
Underwriting gain (loss), after federal income tax	$ 3,585	$ 3,796	$ 6,087	$ 2,606
Combined ratio	94.10%	93.70%	95.00%	97.80%
ROE Contribution	0.70%	0.90%	0.60%	0.30%
Excess And Surplus Operations [Member]
Segment Reporting Information [Line Items]
Underwriting gain (loss), before federal income tax	$ 2,944	$ (7,789)	$ 7,523	$ (8,354)
Underwriting gain (loss), after federal income tax	$ 2,326	$ (6,154)	$ 5,943	$ (6,600)
Combined ratio	95.00%	114.70%	93.60%	107.90%
ROE Contribution	0.50%	(1.50%)	0.60%	(0.80%)
Investments [Member]
Segment Reporting Information [Line Items]
ROE Contribution	9.60%	9.00%	9.20%	8.60%

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Segment Information (Reconciliation of Segment Results to Income Before Federal Income Tax (Details)) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Investment income, before federal income tax	$ 62,532	$ 43,901	$ 126,601	$ 76,583
Interest expense	(7,366)	(6,125)	(18,892)	(12,277)
Corporate expenses	(9,566)	(3,283)	(21,976)	(14,615)
Income before federal income tax	90,225	72,525	163,919	92,456
Standard Commercial Lines [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting gain (loss), before federal income tax	37,143	41,016	62,958	47,820
Standard Personal Lines [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting gain (loss), before federal income tax	4,538	4,805	7,705	3,299
Excess And Surplus Operations [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting gain (loss), before federal income tax	2,944	(7,789)	7,523	(8,354)
Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total income, before federal income tax all segments	$ 107,157	$ 81,933	$ 204,787	$ 119,348

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Retirement Plans (Components of Net Periodic Benefit Cost) (Details) - Pension Plan [Member] - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost		$ 3,376	$ 3,095	$ 6,753	$ 6,190
Expected return on plan assets		(5,278)	(5,681)	(10,557)	(11,363)
Amortization of unrecognized net actuarial loss		643	493	1,287	987
Total net periodic benefit	[1]	$ (1,259)	$ (2,093)	$ (2,517)	$ (4,186)

[1] The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income.

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Retirement Plans (Weighted-Average Expense Assumptions) (Details) - Pension Plan [Member]	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	4.46%	3.78%
Effective interest rate for calculation of interest cost	4.12%	3.46%
Expected return on plan assets	6.50%	6.36%

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Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income, Gross	$ 90,225	$ 72,525	$ 163,919	$ 92,456
Unrealized holding gains (losses) during the period, Gross	83,546	(23,993)	186,472	(109,308)
Amounts reclassified into net income: HTM securities, Gross	(21)	(8)	(30)	(20)
Amounts reclassified into net income: Realized (gains) losses on disposals and OTTI of AFS securities, Gross	(1,300)	2,870	(2,377)	7,419
Total unrealized gains (losses) on investment securities, Gross	82,225	(21,131)	184,065	(101,909)
Amount reclassified into net income: Net actuarial loss, Gross	664	531	1,328	1,063
Total defined pension and other post-retirement benefit plans, Gross	664	531	1,328	1,063
Other comprehensive income (loss), Gross	82,889	(20,600)	185,393	(100,846)
Comprehensive income (loss) before tax	173,114	51,925	349,312	(8,390)
Net income, Tax	17,959	13,706	30,305	14,712
Unrealized holding gains (losses) during the period, Tax	17,544	(5,038)	39,157	(22,955)
Amounts reclassified into net income: HTM securities, Tax	(4)	(2)	(6)	(4)
Amounts reclassified into net income: Realized (gains) losses on disposals and OTTI of AFS securities, Tax	(273)	603	(499)	1,558
Total unrealized gains (losses) on investment securities, Tax	17,267	(4,437)	38,652	(21,401)
Amount reclassified into net income: Net actuarial loss, Tax	140	111	279	223
Total defined pension and other post-retirement benefit plans, Tax	140	111	279	223
Other comprehensive income (loss), Tax	17,407	(4,326)	38,931	(21,178)
Comprehensive income (loss), Tax	35,366	9,380	69,236	(6,466)
Net income	72,266	58,819	133,614	77,744
Unrealized holding gains (losses) arising during period	66,002	(18,955)	147,315	(86,353)
Amounts reclassified into net income: HTM Securities	(17)	(6)	(24)	(16)
Amounts reclassified into net income: Realized (gains) losses on disposals and OTTI of available-for-sale securities	(1,027)	2,267	(1,878)	5,861
Total unrealized gains (losses) on investment securities	64,958	(16,694)	145,413	(80,508)
Amount reclassified into net income: Net actuarial loss	524	420	1,049	840
Total defined benefit pension and post-retirement plans	524	420	1,049	840
Other comprehensive income (loss)	65,482	(16,274)	146,462	(79,668)
Comprehensive income (loss)	$ 137,748	$ 42,545	$ 280,076	$ (1,924)

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Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2018			$ (77,956)
Amounts reclassified from AOCI, Non-credit OTTI			0
Amounts reclassified from AOCI, HTM related	$ (17)	$ (6)	(24)	$ (16)
Amounts reclassified from AOCI, All Other	(1,027)	2,267	(1,878)	5,861
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans			0
Amount reclassified into net income: Net actuarial loss	524	420	1,049	840
Other comprehensive income	65,482	(16,274)	146,462	(79,668)
Other comprehensive income, defined pension and post retirement plans	524	420	1,049	840
Ending Balance, June 30, 2019	68,506		68,506
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2018			1,888
OCI before reclassifications			147,315
Other comprehensive income			145,437
Ending Balance, June 30, 2019	147,325		147,325
Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2018			1,888
OCI before reclassifications			147,315
Amounts reclassified from AOCI			(1,902)
Other comprehensive income			145,413
Ending Balance, June 30, 2019	147,301		147,301
Accumulated Other-than-Temporary Impairment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2018			(71)
OCI before reclassifications			0
Other comprehensive income			0
Ending Balance, June 30, 2019	(71)		(71)
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Held-to-maturity Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2018			71
OCI before reclassifications			0
Other comprehensive income			(24)
Ending Balance, June 30, 2019	47		47
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2018			(79,844)
Amount reclassified into net income: Net actuarial loss			1,049
Ending Balance, June 30, 2019	(78,795)		(78,795)
Accumulated other comprehensive income (loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2018			(77,956)
OCI before reclassifications			147,315
Amounts reclassified from AOCI			(853)
Other comprehensive income	65,482	$ (16,274)	146,462	$ (79,668)
Ending Balance, June 30, 2019	$ 68,506		$ 68,506

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Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net realized and unrealized gains (losses)	$ 4,027	$ (1,652)	$ 17,478	$ (12,201)
Net investment income	(58,505)	(45,553)	(109,123)	(88,784)
Loss and loss expense incurred	380,984	366,328	767,563	751,269
Other insurance expenses	86,662	80,994	171,741	164,234
Income before federal income tax	90,225	72,525	163,919	92,456
Total federal income tax expense	(17,959)	(13,706)	(30,305)	(14,712)
Net income	72,266	58,819	133,614	77,744
Reclassification out of AOCI
Net income	(520)	2,681	(853)	6,685
Pension Plan [Member] | Reclassification out of AOCI
Loss and loss expense incurred	145	113	290	225
Other insurance expenses	519	418	1,038	838
Income before federal income tax	664	531	1,328	1,063
Total federal income tax expense	(140)	(111)	(279)	(223)
Net income	524	420	1,049	840
Held-to-maturity Securities [Member] | Reclassification out of AOCI
Net realized and unrealized gains (losses)	(9)	(7)	(9)	(6)
Net investment income	(12)	(1)	(21)	(14)
Income before federal income tax	(21)	(8)	(30)	(20)
Total federal income tax expense	4	2	6	4
Net income	(17)	(6)	(24)	(16)
Available-for-sale Securities [Member] | Reclassification out of AOCI
Net realized and unrealized gains (losses)	(1,300)	2,870	(2,377)	7,419
Income before federal income tax	(1,300)	2,870	(2,377)	7,419
Total federal income tax expense	273	(603)	499	(1,558)
Net income	$ (1,027)	$ 2,267	$ (1,878)	$ 5,861

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Leases (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2019		Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018		Mar. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use asset	$ 29,632			$ 20,700
Operating lease liability	30,336			21,000
Finance lease right-of-use asset	1,106			900
Finance lease liabilities	$ 1,109	[1]		900	$ 0	[1]
Retained Earnings [Member] | Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption			$ 0	$ 300	$ 342		$ 0	$ 0

[1] Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

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Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Lease Expense [Line Items]
Operating lease cost	$ 2,245	$ 4,397
Finance lease cost: Amortization of assets	315	599
Finance lease cost: Interest on lease liabilities	7	7
Total finance lease cost	322	606
Variable lease cost	(120)	668
Short-term lease cost	$ 437	$ 1,175

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Leases (Supplemental Lease Information) (Details)	Jun. 30, 2019
Supplemental Lease Information [Line Items]
Weighted average remaining lease term, operating leases	6 years
Weighted average remaining lease term, finance leases	2 years
Weighted average discount rate, operating leases	3.40%
Weighted average discount rate, finance leases	1.80%	[1]

[1] Prior to adoption of ASU 2016-02, our historical capital lease liability and asset were measured using an un-discounted cash flow stream due to immateriality of the capital lease population.

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Leases (Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019		Jan. 01, 2019	Dec. 31, 2018	[1]
Lease Assets and Liabilities [Line Items]
Operating leases, Other assets	$ 29,632		$ 20,700
Operating leases, Other liabilities	30,336		21,000
Finance leases, Property and equipment - at cost, net of accumulated depreciation and amortization	1,106		900
Finance leases, Long-term debt	$ 1,109	[1]	$ 900	$ 0

[1] Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

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Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019		Jan. 01, 2019	Dec. 31, 2018
Lease Liabilities Payments Due [Line Items]
Finance lease liability, due remainder of fiscal year	$ 389
Finance lease liability, due 2020	448
Finance lease liability, due 2021	244
Finance lease liability, due 2022	53
Finance lease liability, due 2023	0
Finance lease liability, due after 2023	0
Finance lease liability, total payments	1,134
Finance lease imputed interest	25
Finance lease liabilities	1,109	[1]	$ 900	$ 0	[1]
Operating lease liability, due remainder of fiscal year	4,044
Operating lease liability, due 2020	7,737
Operating lease liability, due 2021	5,483
Operating lease liability, due 2022	3,912
Operating lease liability, due 2023	2,900
Operating lease liability, due after 2023	9,698
Operating lease liability, total payments	33,774
Operating lease imputed interest	3,438
Operating lease liability	30,336		$ 21,000
Total lease liability, due remainder of fiscal year	4,433
Total lease liability, due 2020	8,185			8,490
Total lease liability, due 2021	5,727			7,496
Total lease liability, due 2022	3,965			5,105
Total lease liability, due 2023	2,900			3,641
Total lease liability, due after 2023	9,698			9,698
Total lease liability, total payments	34,908			$ 37,330
Total imputed interest	3,463
Total lease liability	$ 31,445

[1] Concurrent with the adoption of ASU 2016-02 discussed in Note 2. "Adoption of Accounting Pronouncements," finance lease obligations are now captured in Long-term debt on our Consolidated Balance Sheets.

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Leases (Schedule of Future Minimum Rental Payments Prior Year) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Capital leases, due 2019		$ 728
Capital leases, due 2020		141
Capital leases, due 2021		22
Capital leases, due 2022		0
Capital leases, due 2023		0
Capital leases, due after 2023		0
Total capital lease payments		891
Operating leases, due 2019		7,762
Operating leases, due 2020		7,355
Operating leases, due 2021		5,083
Operating leases, due 2022		3,641
Operating leases, due 2023		2,900
Operating leases, due after 2023		9,698
Total operating lease payments		36,439
Total leases, due 2019	$ 8,185	8,490
Total leases, due 2020	5,727	7,496
Total leases, due 2021	3,965	5,105
Total leases, due 2022	2,900	3,641
Total leases, due 2023		2,900
Total leases, due after 2023	9,698	9,698
Total lease payments	$ 34,908	$ 37,330