EX-99.2 3 exh_992.htm EXHIBIT 99.2

EXHIBIT 99.2

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Investor Package

 

First Quarter 2016

 

 

 

 

 

 

 

 

 

 

 

Investor Contact:

Dale Thatcher

Tel: 973-948-3000

Investor.Relations@selective.com

 

 

 

  

 

 

 

Selective Insurance Group, Inc. & Consolidated Subsidiaries

Selected Balance Sheet Data

(unaudited)

 

   March 31,  March 31,  December 31,
($ in thousands, except per share data)  2016  2015  2015
         Unrecognized/        Unrecognized/        Unrecognized/
   Balance  Market  Unrealized  Balance  Market  Unrealized  Balance  Market  Unrealized
   Sheet  Value  Gain  Sheet  Value  Gain  Sheet  Value  Gain
Invested Assets:                                             
Corporate bonds 1  $3,073,489    3,076,144    53,348   $2,757,212    2,761,191    69,590   $2,955,001    2,957,427    8,276 
Government and Municipal bonds   1,690,552    1,695,583    70,315    1,713,587    1,724,144    60,852    1,654,556    1,660,320    55,901 
Total fixed income securities   4,764,041    4,771,727    123,663    4,470,799    4,485,335    130,442    4,609,557    4,617,747    64,177 
Equities   215,789    215,789    21,611    211,571    211,571    11,954    207,051    207,051    13,235 
Short-term investments   103,132    103,132    -    124,376    124,376    -    194,819    194,819    - 
Other investments   80,916    80,916    -    95,020    95,020    -    77,842    77,842    - 
Total invested assets  $5,163,878    5,171,564    145,274   $4,901,766    4,916,302    142,396   $5,089,269    5,097,459    77,412 
                                              
                                              
Invested assets per $ of stockholders' equity   3.50              3.72              3.64           
                                              
Total assets   7,022,492              6,694,662              6,904,433           
                                              
Liabilities:                                             
Reserve for loss and loss expenses   3,575,496              3,516,268              3,517,728           
Unearned premium reserve   1,209,377              1,132,733              1,169,710           
                                              
Total liabilities   5,546,527              5,378,724              5,506,392           
                                              
Stockholders' equity   1,475,965              1,315,938              1,398,041           
                                              
Total debt to capitalization ratio   20.8%             22.8%             21.7%          
                                              
Book value per share   25.61              23.11              24.37           
                                              
Book value per share excluding unrealized gain or loss on fixed income portfolio   24.30              21.78              23.74           
                                              
NPW per insurance segment employee   999              926              979           
                                              
Statutory premiums to surplus ratio   1.4x             1.5x             1.5x          
                                              
Statutory surplus   1,461,326              1,322,422              1,426,320           

 

 

1 Includes mortgage-backed and asset-backed securities.

 

 

 

 

Selective Insurance Group, Inc. & Consolidated Subsidiaries

Selected Income Statement Data

(unaudited)

 

   Quarter Ended March 31,
($ in thousands, except per share amounts)   2016   2015
      Per diluted share     Per diluted share
Consolidated                    
Revenue  $551,474        $523,892      
Operating income   38,790    0.66    27,434    0.48 
Net realized (losses) gains, after tax   (1,758)   (0.03)   12,274    0.21 
Net income   37,032    0.63    39,708    0.69 
Operating return on equity   10.8%        8.5%     
                     
Total Insurance Operations                    
Gross premiums written   652,598         604,864      
Net premiums written   565,359         518,088      
Net premiums earned   522,458         476,123      
Underwriting gain    - before tax   40,955         26,021      
  - after tax   26,621    0.46    16,914    0.29 
GAAP combined ratio   92.2%        94.5%     
                     
Standard Commercial Lines                    
Net premiums earned   402,889         365,533      
GAAP combined ratio   92.3%        91.8%     
Standard Personal Lines                    
Net premiums earned   70,205         72,479      
GAAP combined ratio   87.7%        103.4%     
Excess and Surplus Lines                    
Net premiums earned   49,364         38,111      
GAAP combined ratio   97.1%        104.1%     
                     
Investments                    
Net investment income     - before tax   30,769         26,917      
  - after tax   23,560    0.40    21,208    0.37 
Effective tax rate   23.4%        21.2%     
Annualized after-tax yield on investment portfolio   1.8%        1.7%     
Annualized after-tax, after-interest expense yield   1.6%        1.5%     
Invested assets per $ of stockholders' equity   3.50         3.72      
                     
Other expenses (net of other income)                    
Interest expense - before tax   (5,606)        (5,604)     
  - after tax   (3,644)   (0.06)   (3,642)   (0.06)
                     
Other expense - after tax  $(7,747)   (0.14)  $(7,046)   (0.12)
                     
Diluted weighted avg shares outstanding   58,507         57,720      

 

 

 

 

 

Selective Insurance Group, Inc. & Consolidated Subsidiaries

GAAP Insurance Operations Results

(unaudited)

 

 

Year-to-Date
($ in thousands)		  Year-to-Date March 31, 2016  Year-to-Date March 31, 2015
                         
   Standard Commercial Lines  Standard Personal Lines  Excess & Surplus Lines  Grand Total  Standard Commercial Lines  Standard Personal Lines  Excess & Surplus Lines  Grand Total
Net Premiums Written   455,063    61,969    48,327    565,359    415,258    65,024    37,806    518,088 
Net Premiums Earned   402,889    70,205    49,364    522,458    365,533    72,479    38,111    476,123 
Loss and Loss Expense Incurred   223,350    39,695    34,099    297,144    206,148    52,969    25,882    284,999 
Net Underwriting Expenses Incurred     146,954    21,905    13,847    182,706    127,824    21,976    13,778    163,578 
Dividends to Policyholders   1,653    -    -    1,653    1,525    -    -    1,525 
GAAP Underwriting Gain (Loss)   30,932    8,605    1,418    40,955    30,036    (2,466)   (1,549)   26,021 
                                         
GAAP Ratios                                        
Loss and Loss Expense Ratio   55.4%   56.5%   69.1%   56.9%   56.4%   73.1%   67.9%   59.9%
Underwriting Expense Ratio   36.5%   31.2%   28.0%   35.0%   35.0%   30.3%   36.2%   34.3%
Dividends to Policyholders Ratio   0.4%   0.0%   0.0%   0.3%   0.4%   0.0%   0.0%   0.3%
Combined Ratio   92.3%   87.7%   97.1%   92.2%   91.8%   103.4%   104.1%   94.5%
                                         

 

 

 

 

 

 

 

Selective Insurance Group, Inc. and Consolidated Subsidiaries

GAAP Investment Income

March 2016 (unaudited)

 

 

   Quarter Ended  %
   March  March  Increase
($ in thousands, except per share data)  2016  2015  (Decrease)
Investment Income:               
Interest:               
Fixed Income Securities  $31,644    30,967    2 
Short-term   159    25    536 
Other Investments   (1,066)   (3,540)   70 
                
Dividends   2,230    1,792    24 
    32,967    29,244    13 
                
Investment Expense   2,198    2,327    (6)
                
Net Investment Income Before Tax   30,769    26,917    14 
                
Tax   7,209    5,709    26 
                
Net Investment Income After Tax  $23,560    21,208    11 
                
Net Investment Income per Share  $0.40    0.37    8 
                
                
Effective Tax Rate   23.4%   21.2%     
                
Average Yields:               
                
Fixed Income Securities:               
Pre Tax   2.70%   2.80%     
After Tax   2.02%   2.12%     
                
Portfolio:               
Pre Tax   2.40%   2.22%     
After Tax   1.84%   1.75%     
                
    Quarter Ended      
    March    March      
Net Realized Gains (Losses)   2016    2015      
Fixed Income Securities   (390)   379      
Equity Securities   (2,310)   19,158      
Other Investments   (4)   (654)     
                
Total   (2,704)   18,883      
Net of Tax   (1,758)   12,274      

 

 

As of March 31, 2016 year-to-date new money rates for fixed income securities were 2.7% on a pre-tax basis and 1.9% on an after-tax basis.

 

 

 

 

Selective Insurance Group, Inc.

Combined Insurance Company Subsidiaries

2016 Statutory Results by Line of Business

Year-to-date March 2016 (unaudited)

 


($ in thousands)		  
 
 		 Net
Premiums
Written		  
 
 		  
Percent
Change		  
 
 		 Net
Premiums
Earned		  
 
 		  
Percent
Change		  
 
 		  
Loss
Ratio		  
 
 		  
LAE
Ratio		  
 
 		 Underwriting
Expense
Ratio		  
 
 		 Dividends to
Policyholders
Ratio		  
 
 
Combined Ratio
2016		  
 
 
Combined Ratio
2015		  
 
 		  
Underwriting
Gain (Loss)
Standard Personal Lines:                                                       
                                                        
Homeowners  $26,573    (5.4)%  $32,900    (2.4)%   36.9%   8.1%   41.5%   0.0%   86.5%   113.7%  $7,072 
Auto   34,024    (4.4)%   35,780    (3.3)%   57.7%   11.1%   36.1%   0.0%   104.9%   106.7%   (1,121)
Other (including flood)   1,372    0.4%   1,525    (12.8)%   60.4%   (39.7)%   (162.7)%   0.0%   (142.0)%   (118.4)%   3,443 
Total  $61,969    (4.7)%  $70,205    (3.1)%   48.0%   8.5%   34.1%   0.0%   90.6%   105.1%  $9,394 
                                                        
Standard Commercial Lines:                                                         
                                                        
Commercial property  $75,644    6.7%  $70,178    8.7%   47.6%   4.7%   39.1%   0.4%   91.8%   98.5%  $3,600 
Workers compensation   91,312    9.0%   76,000    11.0%   40.0%   14.0%   26.2%   0.9%   81.1%   90.7%   10,364 
General liability   144,706    10.9%   128,085    11.4%   36.7%   11.4%   35.1%   0.2%   83.4%   73.0%   15,410 
Auto   108,208    12.0%   95,419    10.5%   63.4%   8.8%   32.3%   0.4%   104.9%   99.4%   (8,829)
Businessowners' policies   24,794    2.2%   23,904    5.3%   43.2%   11.5%   40.3%   0.0%   95.0%   118.8%   847 
Bonds   5,925    13.7%   5,464    9.3%   12.8%   7.5%   61.3%   0.0%   81.6%   84.6%   726 
Other   4,474    11.2%   3,839    10.7%   (1.2)%   0.2%   54.8%   0.0%   53.8%   52.4%   1,425 
Total  $455,063    9.6%  $402,889    10.2%   45.3%   9.9%   34.1%   0.4%   89.7%   89.7%  $23,543 
                                                        
E&S  $48,327    27.8%  $49,364    29.5%   49.4%   19.5%   29.5%   0.0%   98.4%   102.1%  $1,095 
                                                        
Total Insurance Operations  $565,359    9.1%  $522,458    9.7%   46.0%   10.7%   33.7%   0.3%   90.7%   93.0%  $34,032 
                                                        
Note: Some amounts may not foot due to rounding.  
                                                        
         2016   2015                                         
    Losses Paid   $210,673   $194,366                                         
    LAE Paid    46,124    44,994                                         
    Total Paid   $256,797   $239,360                                         
                                                        

 

 

 

 

 

 

Selective Insurance Group, Inc.

Combined Insurance Company Subsidiaries

2016 Net Catastrophe Losses and Prior Year Casualty Reserve Development

Statutory Results by Line of Business

(unaudited)

 

   Year-to-Date
Net Catastrophe Losses Incurred  March 31, 2016  March 31, 2015
($ in thousands)  Loss and Loss Expense Incurred  Impact on Loss and Loss Expense Ratio  Loss and Loss Expense Incurred  Impact on Loss and Loss Expense Ratio
             
Standard Personal Lines  $2,225    3.2%  $6,318    8.7%
                     
Standard Commercial Lines  $11,649    2.9%  $18,650    5.1%
                     
E&S  $495    1.0%  $352    0.9%
                     
Total Insurance Operations  $14,369    2.8%  $25,320    5.3%
                     
                     
                     
Prior Year Casualty Reserve Development   Year-to-Date
(Favorable) / Unfavorable   March 31, 2016   March 31, 2015
($ in thousands)   Loss and Loss
Expense Incurred		    Impact on Loss and
Loss Expense Ratio		    Loss and Loss
Expense Incurred		    Impact on Loss and
Loss Expense Ratio		 
                     
Standard Personal Lines  $-    0.0%  $-    0.0%
                     
Standard Commercial Lines  $(18,000)   (4.5)%  $(21,000)   (5.7)%
                     
E&S  $1,000    2.0%  $1,000    2.6%
                     
Total Insurance Operations  $(17,000)   (3.3)%  $(20,000)   (4.2)%

 

 

Note: Some amounts may not foot due to rounding.

 

 

 

 

 

 

       
Selective Insurance Group, Inc. & Consolidated Subsidiaries      
Consolidated Balance Sheets      
  Unaudited   
($ in thousands, except share amounts)  March 31,
2016		  December 31,
2015
ASSETS          
Investments:          
Fixed income securities, held-to-maturity – at carrying value
(fair value:  $171,259 – 2016; $209,544 – 2015)
  $163,573    201,354 
Fixed income securities, available-for-sale – at fair value
(amortized cost: $4,484,719 – 2016; $4,352,514 – 2015)
   4,600,468    4,408,203 
Equity securities, available-for-sale – at fair value
(cost:  $194,178 – 2016; $193,816 – 2015)
   215,789    207,051 
Short-term investments (at cost which approximates fair value)   103,132    194,819 
Other investments   80,916    77,842 
Total investments   5,163,878    5,089,269 
Cash   683    898 
Interest and dividends due or accrued   37,959    38,501 
Premiums receivable, net of allowance for uncollectible
accounts of:  $4,063 – 2016; $4,422 – 2015
   654,344    615,164 
Reinsurance recoverables, net of allowance for uncollectible
accounts of: $6,000 – 2016; $5,700 – 2015
   577,346    561,968 
Prepaid reinsurance premiums   137,655    140,889 
Deferred federal income tax   67,479    92,696 
Property and equipment – at cost, net of accumulated
depreciation and amortization of: $192,675 – 2016; $188,548 – 2015
   65,164    65,701 
Deferred policy acquisition costs   220,948    213,159 
Goodwill   7,849    7,849 
Other assets   89,187    78,339 
Total assets  $7,022,492    6,904,433 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Liabilities:          
Reserve for loss and loss expenses  $3,575,496    3,517,728 
Unearned premiums   1,209,377    1,169,710 
Short-term debt   60,000    60,000 
Long-term debt   328,313    328,192 
Current federal income tax   11,979    7,442 
Accrued salaries and benefits   140,221    167,336 
Other liabilities   221,141    255,984 
Total liabilities  $5,546,527    5,506,392 
           
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: 101,258,870 – 2016; 100,861,372 – 2015   202,518    201,723 
Additional paid-in capital   333,965    326,656 
Retained earnings   1,474,435    1,446,192 
Accumulated other comprehensive income (loss)   35,997    (9,425)
Treasury stock – at cost (shares:  43,622,892 – 2016; 43,500,642 – 2015)   (570,950)   (567,105)
Total stockholders’ equity  $1,475,965    1,398,041 
Commitments and contingencies          
Total liabilities and stockholders’ equity  $7,022,492    6,904,433 

 

 

 

 

 

       
Selective Insurance Group, Inc. & Consolidated Subsidiaries      
Unaudited Consolidated Statements of Income      
  Quarter Ended March 31,
($ in thousands, except per share amounts)  2016  2015
Revenues:          
Net premiums earned  $522,458    476,123 
Net investment income earned   30,769    26,917 
Net realized (losses) gains:          
Net realized investment gains   889    20,977 
Other-than-temporary impairments   (3,593)   (2,094)
Total net realized (losses) gains   (2,704)   18,883
Other income   951    1,969 
Total revenues   551,474    523,892 
           
Expenses:          
Loss and loss expense incurred   297,144    284,999 
Policy acquisition costs   183,227    164,723 
Interest expense   5,606    5,604 
Other expenses   13,622    12,276 
Total expenses   499,599    467,602 
           
Income before federal income tax   51,875    56,290 
           
Federal income tax expense:          
Current   14,084    12,254 
Deferred   759    4,328 
Total federal income tax expense   14,843    16,582 
           
Net income  $37,032    39,708 
           
Earnings per share:          
Basic net income  $0.64    0.70 
           
Diluted net income  $0.63    0.69 
           
Dividends to stockholders  $0.15    0.14 

 

 

 

 

 

 

       
Selective Insurance Group, Inc. & Consolidated Subsidiaries      
Unaudited Consolidated Statements of Comprehensive Income      
  Quarter Ended March 31,
($ in thousands)  2016  2015
Net income  $37,032    39,708 
           
Other comprehensive income, net of tax:          
Unrealized gains on investment securities:          
Unrealized holding gains arising during period   42,729    15,586 
Amount reclassified into net income:          
Held-to-maturity securities   (47)   (170)
Non-credit other-than-temporary impairments   —    232 
Realized losses (gains) on available-for-sale securities   1,754    (12,932)
Total unrealized gains on investment securities   44,436    2,716 
           
Defined benefit pension and post-retirement plans:          
Amounts reclassified into net income:          
Net actuarial loss   986    1,111 
Total defined benefit pension and post-retirement plans   986    1,111 
Other comprehensive income   45,422    3,827 
Comprehensive income  $82,454    43,535 

 

 

 

 

 

 

       
Selective Insurance Group, Inc. & Consolidated Subsidiaries      
Unaudited Consolidated Statements of Stockholders’ Equity      
  Quarter Ended March 31,
($ in thousands)  2016  2015
Common stock:          
Beginning of year  $201,723    199,896 
Dividend reinvestment plan
(shares:  10,931 – 2016; 13,533 – 2015)
   22    27 
Stock purchase and compensation plans
(shares:  386,567 – 2016; 469,014 – 2015)
   773    938 
End of period   202,518    200,861 
           
Additional paid-in capital:          
Beginning of year   326,656    305,385 
Dividend reinvestment plan   351    346 
Stock purchase and compensation plans   6,958    7,199 
End of period   333,965    312,930 
           
Retained earnings:          
Beginning of year   1,446,192    1,313,440 
Net income   37,032    39,708 
Dividends to stockholders
($0.15 per share – 2016; $0.14 per share – 2015)
   (8,789)   (8,113)
End of period   1,474,435    1,345,035 
           
Accumulated other comprehensive income:          
Beginning of year   (9,425)   19,788 
Other comprehensive income   45,422    3,827 
End of period
   35,997    23,615 
           
Treasury stock:          
Beginning of year   (567,105)   (562,923)
Acquisition of treasury stock
(shares: 122,250 – 2016; 129,257 – 2015)
   (3,845)   (3,580)
End of period   (570,950)   (566,503)
Total stockholders’ equity  $1,475,965    1,315,938 

 

 

 

 

 

 

       
Selective Insurance Group, Inc. & Consolidated Subsidiaries      
Unaudited Consolidated Statements of Cash Flow      
  Quarter Ended March 31,
($ in thousands)  2016  2015
Operating Activities          
           
Net income  $37,032    39,708 
           
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   14,627    14,041 
Stock-based compensation expense   4,377    3,681 
Undistributed losses of equity method investments   1,066    3,541 
Net realized gains   2,704    (18,883)
           
Changes in assets and liabilities:          
Increase in reserve for loss and loss expenses, net of reinsurance recoverables   42,390    44,964 
Increase in unearned premiums, net of prepaid reinsurance   42,901    41,966 
Decrease in net federal income taxes   5,296    11,034 
Increase in premiums receivable   (39,180)   (38,110)
Increase in deferred policy acquisition costs   (7,789)   (6,348)
Decrease in interest and dividends due or accrued   528    510 
Decrease in accrued salaries and benefits   (27,115)   (16,290)
Increase in other assets   (10,128)   (5,578)
Decrease in other liabilities   (52,902)   (13,662)
Net adjustments   (23,225)   20,866 
Net cash provided by operating activities   13,807    60,574 
           
Investing Activities          
Purchase of fixed income securities, available-for-sale   (264,828)   (238,000)
Purchase of equity securities, available-for-sale   (7,574)   (150,500)
Purchase of other investments   (12,723)   (1,724)
Purchase of short-term investments   (303,228)   (333,550)
Sale of fixed income securities, available-for-sale   12,905    9,305 
Sale of short-term investments   394,915    341,146 
Redemption and maturities of fixed income securities, held-to-maturity   37,400    20,720 
Redemption and maturities of fixed income securities, available-for-sale   130,641    145,661 
Sale of equity securities, available-for-sale   4,285    129,052 
Distributions from other investments   7,994    5,845 
Purchase of property and equipment   (3,439)   (4,064)
Net cash used in investing activities   (3,652)   (76,109)
           
Financing Activities          
Dividends to stockholders   (8,270)   (7,591)
Acquisition of treasury stock   (3,845)   (3,580)
Net proceeds from stock purchase and compensation plans   1,478    2,271 
Proceeds from borrowings   25,000    15,000 
Repayments of borrowings   (25,000)   — 
Excess tax benefits from share-based payment arrangements   1,361    1,398 
Repayments of capital lease obligations   (1,094)   (1,118)
Net cash (used in) provided by financing activities   (10,370)   6,380 
Net decrease in cash   (215)   (9,155)
Cash, beginning of year   898    23,959 
Cash, end of period  $683    14,804 

 

 

 

 

 

Selective Insurance Group, Inc.

Combined Insurance Company Subsidiaries

Statutory Balance Sheets

(unaudited)

 

   March 31,  March 31,  December 31,
($ in thousands)  2016  2015  2015
          
ASSETS               
Bonds  $4,583,540    4,299,029    4,491,136 
Common stocks   202,619    190,937    194,789 
Preferred stocks   12,807    20,521    11,856 
Affiliated mortgage loan   34,957    35,765    35,163 
Other investments   130,365    147,468    128,788 
Short-term investments   81,011    113,117    165,678 
Total investments   5,045,299    4,806,837    5,027,410 
                
Cash on hand and in banks   (12,429)   1,538    (34,378)
Interest and dividends due and accrued   37,891    38,376    38,466 
Premiums receivable   649,660    593,248    609,146 
Reinsurance recoverable on paid losses and expenses   9,025    10,919    10,949 
Deferred tax recoverable   144,761    143,060    142,066 
EDP equipment   397    460    390 
Equities and deposits in pools and associations   10,864    10,373    10,920 
Receivable for sold securities   647    8    17 
Other assets   28,245    27,206    28,300 
Total assets  $5,914,360    5,632,025    5,833,286 
                
LIABILITIES               
Reserve for losses  $2,456,286    2,432,544    2,426,583 
Reinsurance payable on paid loss and loss expense   3,057    3,297    2,841 
Reserve for loss expenses   534,949    505,752    525,322 
Unearned premiums   1,071,722    990,791    1,028,820 
Reserve for commissions payable   50,382    46,691    89,740 
Ceded balances payable   41,112    29,303    37,222 
Federal income tax payable   34,247    23,786    25,644 
Premium and other taxes payable   19,411    19,450    23,998 
Borrowed money   60,031    60,031    60,031 
Reserve for dividends to policyholders   6,439    4,486    5,805 
Reserves for unauthorized reinsurance   2,030    7,661    2,030 
Payable for securities   25,563    31,790    6,204 
Funds withheld on account of others   7,928    7,485    6,806 
Accrued salaries and benefits   52,230    48,287    77,933 
Other liabilities   87,647    98,249    87,987 
Total liabilities   4,453,034    4,309,603    4,406,966 
                
                
POLICYHOLDERS' SURPLUS               
Capital   42,725    42,725    42,725 
Paid in surplus   492,869    492,869    492,869 
Unassigned surplus   925,732    786,828    890,726 
Total policyholders' surplus   1,461,326    1,322,422    1,426,320 
Total liabilities and policyholders' surplus  $5,914,360    5,632,025    5,833,286 

 

 

 

 

Selective Insurance Group, Inc.

Combined Insurance Company Subsidiaries

Statutory Statements Of Income

(unaudited)

 

   Quarter Ended
March		  
($ in thousands)  2016     2015   
UNDERWRITING                    
Net premiums written  $565,359         518,088      
                     
Net premiums earned   522,458         476,123      
                     
Net losses paid   210,673         194,366      
Change in reserve for losses   29,703         34,014      
Net losses incurred   240,376    46.0%   228,380    48.0%
                     
Net loss expenses paid   46,124         44,994      
Change in reserve for loss expenses   9,627         12,243      
Net loss expenses incurred   55,751    10.7%   57,237    12.0%
                     
Net underwriting expenses incurred   190,917    33.7%   170,938    33.0%
                     
Total deductions   487,044         456,555      
Statutory underwriting gain   35,414         19,568      
                     
Net loss from premium balances charged off   (691)        (610)     
Finance charges and other income   962         1,994      
Total other income   271    0.0%   1,384    -0.3%
Policyholders' dividends incurred   (1,653)   0.3%   (1,525)   0.3%
Total underwriting gain   34,032    90.7%   19,427    93.0%
                     
INVESTMENT                    
Net investment income earned   30,623         27,127      
Net realized gain   (2,704)        18,883      
Total income before income tax   61,951         65,437      
                     
Federal income tax expense   16,603         7,261      
                     
Net income  $45,348         58,176      
                     
Policyholders' Surplus                    
Surplus, beginning of period  $1,426,320         1,307,842      
                     
Net income   45,348         58,176      
Change in deferred taxes   352         (10,194)     
Change in net unrealized capital gains (losses)   5,311         (12,910)     
Dividends to stockholders   (15,254)        (14,438)     
Change in non-admitted assets   (2,182)        (7,669)     
Change in Overfunded Contra Asset   (1,047)        (281)     
Qual Pen Trans Liab   2,456         1,846      
Excess Plan Trans Liab   19         43      
PRL Plan Trans Liab   3         7      
                     
Net change in surplus for period   35,006         14,580      
                     
Surplus, end of period  $1,461,326         1,322,422      
                     
                     
Statutory underwriting gain  $34,032         19,427      
                     
Adjustments under GAAP:                    
Deferred policy acquisition costs   7,789         6,348      
Other, net   (866)        246      
GAAP underwriting gain  $40,955         26,021      
                     

 

Note: Some amounts or ratios may not foot due to rounding

 

 

 

 

Selective Insurance Group, Inc. and Consolidated Subsidiaries

Alternative Investments

March 31, 2016

(unaudited)

 

         
  Number Original Remaining Current
Strategy of Funds Commitment Commitment Market Value
Private Equity 9 111,498,351 28,750,146 32,478,105
Private Credit 7 80,000,000 25,129,467 21,938,463
Real Assets 7 100,000,000 28,558,441 16,792,100
TOTAL - ALTERNATIVE INVESTMENTS 23 291,498,351 82,438,054 71,208,668
         

 

 

 

 

 

 

 

Exhibit may not foot due to rounding