EXHIBIT 99.2
Supplemental Investor Package ________________________________________________
Third Quarter 2016
Investor Contact: Rohan Pai Tel: 973-948-1364 Rohan.Pai@Selective.com
|
Selective Insurance Group, Inc. & Consolidated Subsidiaries
Selected Balance Sheet Data
(unaudited)
September 30, | September 30, | 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 | $ | 3,312,160 | 3,314,526 | 77,917 | $ | 2,901,352 | 2,904,449 | 37,945 | $ | 2,955,001 | 2,957,427 | 8,276 | ||||||||||||||||||||||||
Government and Municipal bonds | 1,650,844 | 1,654,100 | 78,164 | 1,679,563 | 1,686,985 | 50,263 | 1,654,556 | 1,660,320 | 55,901 | |||||||||||||||||||||||||||
Total fixed income securities | 4,963,004 | 4,968,626 | 156,081 | 4,580,915 | 4,591,434 | 88,208 | 4,609,557 | 4,617,747 | 64,177 | |||||||||||||||||||||||||||
Equities | 147,304 | 147,304 | 24,323 | 221,951 | 221,951 | 1,131 | 207,051 | 207,051 | 13,235 | |||||||||||||||||||||||||||
Short-term investments | 169,604 | 169,604 | - | 125,855 | 125,855 | - | 194,819 | 194,819 | - | |||||||||||||||||||||||||||
Other investments | 88,512 | 88,512 | - | 85,146 | 85,146 | - | 77,842 | 77,842 | - | |||||||||||||||||||||||||||
Total invested assets | $ | 5,368,424 | 5,374,046 | 180,404 | $ | 5,013,867 | 5,024,386 | 89,339 | $ | 5,089,269 | 5,097,459 | 77,412 | ||||||||||||||||||||||||
Invested assets per $ of stockholders' equity | 3.41 | 3.69 | 3.64 | |||||||||||||||||||||||||||||||||
Total assets | 7,363,233 | 6,891,877 | 6,904,433 | |||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||
Reserve for loss and loss expenses | 3,686,586 | 3,517,751 | 3,517,728 | |||||||||||||||||||||||||||||||||
Unearned premium reserve | 1,306,255 | 1,218,884 | 1,169,710 | |||||||||||||||||||||||||||||||||
Total liabilities | 5,788,329 | 5,532,855 | 5,506,392 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 1,574,904 | 1,359,022 | 1,398,041 | |||||||||||||||||||||||||||||||||
Total debt to capitalization ratio | 21.2 | % | 22.2 | % | 21.7 | % | ||||||||||||||||||||||||||||||
Book value per share | 27.22 | 23.77 | 24.37 | |||||||||||||||||||||||||||||||||
Book value per share excluding | ||||||||||||||||||||||||||||||||||||
unrealized gain or loss on fixed income portfolio | 25.53 | 22.88 | 23.74 | |||||||||||||||||||||||||||||||||
NPW per insurance segment employee | 1,021 | 958 | 979 | |||||||||||||||||||||||||||||||||
Statutory premiums to surplus ratio | 1.4 | x | 1.5 | x | 1.5 | x | ||||||||||||||||||||||||||||||
Statutory surplus | 1,551,227 | 1,367,343 | 1,426,320 |
1 Includes mortgage-backed and asset-backed securities.
Selective Insurance Group, Inc. & Consolidated Subsidiaries
Selected Income Statement Data
(unaudited)
Quarter Ended September 30, | Year-to-Date September 30, | ||||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||
Per diluted share | Per diluted share | Per diluted share | Per diluted share | ||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||
Revenue | $ | 581,691 | $ | 540,457 | $ | 1,701,912 | $ | 1,586,322 | |||||||||||||||||||||||||
Operating income | 36,104 | 0.62 | 46,796 | 0.81 | 117,348 | 2.00 | 110,221 | 1.90 | |||||||||||||||||||||||||
Net realized gains, after tax | 2,398 | 0.04 | 200 | - | 1,787 | 0.03 | 10,251 | 0.18 | |||||||||||||||||||||||||
Net income | 38,502 | 0.66 | 46,996 | 0.81 | 119,135 | 2.03 | 120,472 | 2.08 | |||||||||||||||||||||||||
Return on equity | 9.8 | % | 14.1 | % | 10.7 | % | 12.2 | % | |||||||||||||||||||||||||
Operating return on equity | 9.2 | % | 14.0 | % | 10.5 | % | 11.2 | % | |||||||||||||||||||||||||
Total Insurance Operations | |||||||||||||||||||||||||||||||||
Gross premiums written | 677,488 | 637,528 | 2,003,736 | 1,868,760 | |||||||||||||||||||||||||||||
Net premiums written | 578,773 | 545,025 | 1,722,272 | 1,595,246 | |||||||||||||||||||||||||||||
Net premiums earned | 542,429 | 507,390 | 1,596,819 | 1,473,822 | |||||||||||||||||||||||||||||
Underwriting gain | - before tax | 32,033 | 44,831 | 116,765 | 99,976 | ||||||||||||||||||||||||||||
- after tax | 20,821 | 0.35 | 29,140 | 0.50 | 75,897 | 1.29 | 64,984 | 1.12 | |||||||||||||||||||||||||
GAAP combined ratio | 94.1 | % | 91.2 | % | 92.7 | % | 93.2 | % | |||||||||||||||||||||||||
Standard Commercial Lines | |||||||||||||||||||||||||||||||||
Net premiums earned | 421,586 | 389,542 | 1,235,752 | 1,132,280 | |||||||||||||||||||||||||||||
GAAP combined ratio | 92.9 | % | 88.7 | % | 91.8 | % | 90.3 | % | |||||||||||||||||||||||||
Standard Personal Lines | |||||||||||||||||||||||||||||||||
Net premiums earned | 68,690 | 72,088 | 209,719 | 216,638 | |||||||||||||||||||||||||||||
GAAP combined ratio | 93.8 | % | 96.1 | % | 90.9 | % | 102.0 | % | |||||||||||||||||||||||||
Excess and Surplus Lines | |||||||||||||||||||||||||||||||||
Net premiums earned | 52,153 | 45,760 | 151,348 | 124,904 | |||||||||||||||||||||||||||||
GAAP combined ratio | 104.5 | % | 104.4 | % | 102.3 | % | 104.0 | % | |||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
Net investment income | - before tax | 33,375 | 32,061 | 95,326 | 91,208 | ||||||||||||||||||||||||||||
- after tax | 24,913 | 0.42 | 24,555 | 0.42 | 71,998 | 1.23 | 70,542 | 1.22 | |||||||||||||||||||||||||
Effective tax rate | 25.4 | % | 23.4 | % | 24.5 | % | 22.7 | % | |||||||||||||||||||||||||
Annualized after-tax yield on investment portfolio | 1.8 | % | 1.9 | % | |||||||||||||||||||||||||||||
Annualized after-tax, after-interest expense yield | 1.6 | % | 1.6 | % | |||||||||||||||||||||||||||||
Invested assets per $ of stockholders' equity | 3.41 | 3.69 | |||||||||||||||||||||||||||||||
Other expenses (net of other income) | |||||||||||||||||||||||||||||||||
Interest expense | - before tax | (5,714 | ) | (5,610 | ) | (16,940 | ) | (16,826 | ) | ||||||||||||||||||||||||
- after tax | (3,714 | ) | (0.06 | ) | (3,646 | ) | (0.06 | ) | (11,011 | ) | (0.19 | ) | (10,937 | ) | (0.18 | ) | |||||||||||||||||
Other expense - after tax | $ | (5,916 | ) | (0.09 | ) | $ | (3,253 | ) | (0.05 | ) | $ | (19,536 | ) | (0.33 | ) | $ | (14,368 | ) | (0.26 | ) | |||||||||||||
Diluted weighted avg shares outstanding | 58,731 | 57,984 | 58,612 | 57,838 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries
GAAP Insurance Operations Results
(unaudited)
Third Quarter | ||||||||||||||||||||||||||||||||
($ in thousands) | Quarter Ended September 30, 2016 | Quarter Ended September 30, 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 | $ | 449,544 | 76,225 | 53,004 | 578,773 | $ | 414,031 | 76,927 | 54,067 | 545,025 | ||||||||||||||||||||||
Net Premiums Earned | 421,586 | 68,690 | 52,153 | 542,429 | 389,542 | 72,088 | 45,760 | 507,390 | ||||||||||||||||||||||||
Loss and Loss Expense Incurred | 238,215 | 41,582 | 36,461 | 316,258 | 203,621 | 49,588 | 31,952 | 285,161 | ||||||||||||||||||||||||
Net Underwriting Expenses Incurred | 152,706 | 22,837 | 18,054 | 193,597 | 139,973 | 19,674 | 15,830 | 175,477 | ||||||||||||||||||||||||
Dividends to Policyholders | 541 | - | - | 541 | 1,921 | - | - | 1,921 | ||||||||||||||||||||||||
GAAP Underwriting Gain (Loss) | $ | 30,124 | 4,271 | (2,362 | ) | 32,033 | $ | 44,027 | 2,826 | (2,022 | ) | 44,831 | ||||||||||||||||||||
GAAP Ratios | ||||||||||||||||||||||||||||||||
Loss and Loss Expense Ratio | 56.5 | % | 60.5 | % | 69.9 | % | 58.3 | % | 52.3 | % | 68.8 | % | 69.8 | % | 56.2 | % | ||||||||||||||||
Underwriting Expense Ratio | 36.3 | % | 33.3 | % | 34.6 | % | 35.7 | % | 35.9 | % | 27.3 | % | 34.6 | % | 34.6 | % | ||||||||||||||||
Dividends to Policyholders Ratio | 0.1 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.5 | % | 0.0 | % | 0.0 | % | 0.4 | % | ||||||||||||||||
Combined Ratio | 92.9 | % | 93.8 | % | 104.5 | % | 94.1 | % | 88.7 | % | 96.1 | % | 104.4 | % | 91.2 | % | ||||||||||||||||
Year-to-Date | ||||||||||||||||||||||||||||||||
($ in thousands) | Year-to-Date September 30, 2016 | Year-to-Date September 30, 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 | $ | 1,353,615 | 213,770 | 154,887 | 1,722,272 | $ | 1,240,110 | 217,937 | 137,199 | 1,595,246 | ||||||||||||||||||||||
Net Premiums Earned | 1,235,752 | 209,719 | 151,348 | 1,596,819 | 1,132,280 | 216,638 | 124,904 | 1,473,822 | ||||||||||||||||||||||||
Loss and Loss Expense Incurred | 683,183 | 123,489 | 105,209 | 911,881 | 619,857 | 156,490 | 85,374 | 861,721 | ||||||||||||||||||||||||
Net Underwriting Expenses Incurred | 447,528 | 67,229 | 49,604 | 564,361 | 397,829 | 64,443 | 44,563 | 506,835 | ||||||||||||||||||||||||
Dividends to Policyholders | 3,812 | - | - | 3,812 | 5,290 | - | - | 5,290 | ||||||||||||||||||||||||
GAAP Underwriting Gain (Loss) | $ | 101,229 | 19,001 | (3,465 | ) | 116,765 | $ | 109,304 | (4,295 | ) | (5,033 | ) | 99,976 | |||||||||||||||||||
GAAP Ratios | ||||||||||||||||||||||||||||||||
Loss and Loss Expense Ratio | 55.3 | % | 58.9 | % | 69.5 | % | 57.1 | % | 54.7 | % | 72.2 | % | 68.4 | % | 58.5 | % | ||||||||||||||||
Underwriting Expense Ratio | 36.2 | % | 32.0 | % | 32.8 | % | 35.4 | % | 35.1 | % | 29.8 | % | 35.6 | % | 34.3 | % | ||||||||||||||||
Dividends to Policyholders Ratio | 0.3 | % | 0.0 | % | 0.0 | % | 0.2 | % | 0.5 | % | 0.0 | % | 0.0 | % | 0.4 | % | ||||||||||||||||
Combined Ratio | 91.8 | % | 90.9 | % | 102.3 | % | 92.7 | % | 90.3 | % | 102.0 | % | 104.0 | % | 93.2 | % | ||||||||||||||||
Selective Insurance Group, Inc. and Consolidated Subsidiaries
GAAP Investment Income
September 2016 (unaudited)
Quarter Ended | % | Year-to-Date | % | |||||||||||||||||||||
September | September | Increase | September | September | Increase | |||||||||||||||||||
($ in thousands, except per share data) | 2016 | 2015 | (Decrease) | 2016 | 2015 | (Decrease) | ||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest: | ||||||||||||||||||||||||
Fixed Income Securities | $ | 32,453 | 30,601 | 6 | $ | 95,850 | 92,227 | 4 | ||||||||||||||||
Short-term | 192 | 24 | 700 | 493 | 72 | 585 | ||||||||||||||||||
Other Investments | 1,628 | 1,337 | 22 | (49 | ) | (781 | ) | 94 | ||||||||||||||||
Dividends | 1,506 | 2,370 | (36 | ) | 5,940 | 6,546 | (9 | ) | ||||||||||||||||
35,779 | 34,332 | 4 | 102,234 | 98,064 | 4 | |||||||||||||||||||
Investment Expense | 2,404 | 2,271 | 6 | 6,908 | 6,856 | 1 | ||||||||||||||||||
Net Investment Income Before Tax | 33,375 | 32,061 | 4 | 95,326 | 91,208 | 5 | ||||||||||||||||||
Tax | 8,462 | 7,506 | 13 | 23,328 | 20,666 | 13 | ||||||||||||||||||
Net Investment Income After Tax | $ | 24,913 | 24,555 | 1 | $ | 71,998 | 70,542 | 2 | ||||||||||||||||
Net Investment Income per Share | $ | 0.42 | 0.42 | - | $ | 1.23 | 1.22 | 1 | ||||||||||||||||
Effective Tax Rate | 25.4 | % | 23.4 | % | 24.5 | % | 22.7 | % | ||||||||||||||||
Average Yields : | ||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||
Pre Tax | 2.67 | % | 2.74 | % | ||||||||||||||||||||
After Tax | 2.00 | % | 2.08 | % | ||||||||||||||||||||
Portfolio: | ||||||||||||||||||||||||
Pre Tax | 2.43 | % | 2.48 | % | ||||||||||||||||||||
After Tax | 1.84 | % | 1.92 | % |
Quarter Ended | Year-to-Date | |||||||||||||||
September | September | September | September | |||||||||||||
Net Realized Gains (Losses) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Fixed Income Securities | $ | 2,163 | (80 | ) | $ | 1,944 | 587 | |||||||||
Equity Securities | 1,522 | 388 | 806 | 15,838 | ||||||||||||
Other Investments | 3 | - | (1 | ) | (654 | ) | ||||||||||
Total | 3,688 | 308 | 2,749 | 15,771 | ||||||||||||
Net of Tax | 2,398 | 200 | 1,787 | 10,251 |
As of September 30, 2016 year-to-date new money rates for fixed income securities were 2.9% on a pre-tax basis and 2.0% on an after-tax basis.
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
2016 Statutory Results by Line of Business
Quarter Ended September 2016 (unaudited)
Net | Net | Underwriting | Dividends to | |||||||||||||||||||||||||||||||||||||||||
Premiums | Percent | Premiums | Percent | Loss | LAE | Expense | Policyholders | Combined Ratio | Combined Ratio | Underwriting | ||||||||||||||||||||||||||||||||||
($ in thousands) | Written | Change | Earned | Change | Ratio | Ratio | Ratio | Ratio | 2016 | 2015 | Gain (Loss) | |||||||||||||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Homeowners | $ | 36,131 | (3.6 | )% | $ | 32,031 | (4.9 | )% | 41.9 | % | 8.6 | % | 35.9 | % | 0.0 | % | 86.4 | % | 96.8 | % | $ | 2,873 | ||||||||||||||||||||||
Auto | 38,114 | 1.3 | % | 34,865 | (4.8 | )% | 63.3 | % | 11.0 | % | 36.0 | % | 0.0 | % | 110.3 | % | 103.4 | % | (4,752 | ) | ||||||||||||||||||||||||
Other (including flood) | 1,980 | 8.4 | % | 1,794 | (0.0 | )% | 62.0 | % | (83.5 | )% | (143.8 | )% | 0.0 | % | (165.3 | )% | (118.3 | )% | 5,028 | |||||||||||||||||||||||||
Total | $ | 76,225 | (0.9 | )% | $ | 68,690 | (4.7 | )% | 53.3 | % | 7.4 | % | 31.3 | % | 0.0 | % | 92.0 | % | 95.0 | % | $ | 3,149 | ||||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial property | $ | 82,695 | 6.5 | % | $ | 74,052 | 8.0 | % | 42.0 | % | 5.1 | % | 38.0 | % | 0.1 | % | 85.2 | % | 67.8 | % | $ | 7,703 | ||||||||||||||||||||||
Workers compensation | 81,646 | 9.7 | % | 78,596 | 5.4 | % | 37.0 | % | 13.4 | % | 29.5 | % | 0.2 | % | 80.2 | % | 84.0 | % | 14,689 | |||||||||||||||||||||||||
General liability | 141,556 | 8.3 | % | 133,981 | 8.7 | % | 32.5 | % | 15.8 | % | 36.3 | % | 0.1 | % | 84.7 | % | 89.1 | % | 17,714 | |||||||||||||||||||||||||
Auto | 108,655 | 10.9 | % | 100,612 | 10.9 | % | 70.3 | % | 10.4 | % | 33.6 | % | 0.1 | % | 114.5 | % | 104.5 | % | (17,257 | ) | ||||||||||||||||||||||||
Businessowners' policies | 23,985 | 0.2 | % | 24,461 | 3.1 | % | 55.3 | % | 11.9 | % | 39.6 | % | 0.0 | % | 106.8 | % | 100.0 | % | (1,482 | ) | ||||||||||||||||||||||||
Bonds | 6,723 | 25.1 | % | 5,795 | 15.2 | % | 12.8 | % | 7.2 | % | 55.0 | % | 0.0 | % | 75.0 | % | 91.5 | % | 937 | |||||||||||||||||||||||||
Other | 4,282 | 8.8 | % | 4,089 | 12.7 | % | 0.3 | % | 0.4 | % | 60.0 | % | 0.0 | % | 60.6 | % | 60.0 | % | 1,494 | |||||||||||||||||||||||||
Total | $ | 449,544 | 8.6 | % | $ | 421,586 | 8.2 | % | 44.8 | % | 11.7 | % | 35.4 | % | 0.1 | % | 92.0 | % | 88.4 | % | $ | 23,799 | ||||||||||||||||||||||
E&S | $ | 53,004 | (2.0 | )% | $ | 52,153 | 14.0 | % | 52.1 | % | 17.9 | % | 31.4 | % | 0.0 | % | 101.4 | % | 101.1 | % | $ | (986 | ) | |||||||||||||||||||||
Total Insurance Operations | $ | 578,773 | 6.2 | % | $ | 542,429 | 6.9 | % | 46.5 | % | 11.8 | % | 34.5 | % | 0.1 | % | 92.9 | % | 90.5 | % | $ | 25,962 | ||||||||||||||||||||||
Note: Some amounts may not foot due to rounding. | ||||||||||||||||||||||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||
Losses Paid | $ | 226,037 | $ | 237,573 | ||||||||||||||||||||||||||||||||||||||||
LAE Paid | 48,335 | 50,084 | ||||||||||||||||||||||||||||||||||||||||||
Total Paid | $ | 274,372 | $ | 287,657 | ||||||||||||||||||||||||||||||||||||||||
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
2016 Statutory Results by Line of Business
Year-to-Date September 2016 (unaudited)
Net | Net | Underwriting | Dividends to | |||||||||||||||||||||||||||||||||||||||||
Premiums | Percent | Premiums | Percent | Loss | LAE | Expense | Policyholders | Combined Ratio | Combined Ratio | Underwriting | ||||||||||||||||||||||||||||||||||
($ in thousands) | Written | Change | Earned | Change | Ratio | Ratio | Ratio | Ratio | 2016 | 2015 | Gain (Loss) | |||||||||||||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Homeowners | $ | 98,697 | (3.1 | )% | $ | 98,342 | (2.7 | )% | 39.7 | % | 8.5 | % | 37.2 | % | 0.0 | % | 85.4 | % | 108.0 | % | $ | 14,253 | ||||||||||||||||||||||
Auto | 110,093 | (0.9 | )% | 106,526 | (3.5 | )% | 59.8 | % | 11.2 | % | 35.4 | % | 0.0 | % | 106.4 | % | 105.5 | % | (8,120 | ) | ||||||||||||||||||||||||
Other (including flood) | 4,980 | 0.1 | % | 4,851 | (5.7 | )% | 63.4 | % | (50.9 | )% | (158.7 | )% | 0.0 | % | (146.2 | )% | (108.5 | )% | 12,148 | |||||||||||||||||||||||||
Total | $ | 213,770 | (1.9 | )% | $ | 209,719 | (3.2 | )% | 50.4 | % | 8.5 | % | 31.8 | % | 0.0 | % | 90.7 | % | 101.7 | % | $ | 18,280 | ||||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial property | $ | 237,693 | 8.4 | % | $ | 217,821 | 9.1 | % | 41.6 | % | 4.9 | % | 38.5 | % | 0.3 | % | 85.0 | % | 86.9 | % | $ | 25,186 | ||||||||||||||||||||||
Workers compensation | 252,032 | 7.8 | % | 229,847 | 7.4 | % | 40.2 | % | 13.8 | % | 28.0 | % | 0.8 | % | 82.8 | % | 87.7 | % | 33,220 | |||||||||||||||||||||||||
General liability | 431,751 | 9.1 | % | 391,349 | 9.5 | % | 34.5 | % | 13.7 | % | 35.5 | % | 0.2 | % | 83.9 | % | 80.0 | % | 48,820 | |||||||||||||||||||||||||
Auto | 325,751 | 11.7 | % | 294,927 | 11.0 | % | 66.1 | % | 9.7 | % | 32.8 | % | 0.2 | % | 108.9 | % | 101.5 | % | (36,277 | ) | ||||||||||||||||||||||||
Businessowners' policies | 74,055 | 3.2 | % | 73,016 | 4.9 | % | 43.9 | % | 11.6 | % | 39.1 | % | 0.0 | % | 94.7 | % | 108.9 | % | 3,479 | |||||||||||||||||||||||||
Bonds | 19,494 | 18.8 | % | 16,924 | 11.8 | % | 12.8 | % | 7.4 | % | 56.7 | % | 0.0 | % | 76.8 | % | 87.5 | % | 2,463 | |||||||||||||||||||||||||
Other | 12,839 | 11.5 | % | 11,868 | 11.4 | % | (0.2 | )% | 0.3 | % | 56.9 | % | 0.0 | % | 56.9 | % | 56.0 | % | 4,558 | |||||||||||||||||||||||||
Total | $ | 1,353,615 | 9.2 | % | $ | 1,235,752 | 9.1 | % | 44.3 | % | 10.9 | % | 34.6 | % | 0.3 | % | 90.1 | % | 89.4 | % | $ | 81,449 | ||||||||||||||||||||||
E&S | $ | 154,887 | 12.9 | % | $ | 151,348 | 21.2 | % | 50.2 | % | 19.3 | % | 31.4 | % | 0.0 | % | 100.9 | % | 101.8 | % | $ | (2,461 | ) | |||||||||||||||||||||
Total Insurance Operations | $ | 1,722,272 | 8.0 | % | $ | 1,596,819 | 8.3 | % | 45.6 | % | 11.4 | % | 34.0 | % | 0.2 | % | 91.2 | % | 92.3 | % | $ | 97,268 | ||||||||||||||||||||||
Note: Some amounts may not foot due to rounding. | ||||||||||||||||||||||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||
Losses Paid | $ | 678,430 | $ | 656,683 | ||||||||||||||||||||||||||||||||||||||||
LAE Paid | 145,504 | 144,145 | ||||||||||||||||||||||||||||||||||||||||||
Total Paid | $ | 823,934 | $ | 800,828 | ||||||||||||||||||||||||||||||||||||||||
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)
Quarter Ended | Year-to-Date | |||||||||||||||||||||||||||||||
Net Catastrophe Losses Incurred | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 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 | 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 | $ | 2,480 | 3.6 | % | $ | 5,784 | 8.0 | % | $ | 6,809 | 3.2 | % | $ | 20,381 | 9.4 | % | ||||||||||||||||
Standard Commercial Lines | 6,204 | 1.5 | % | 757 | 0.2 | % | 21,476 | 1.7 | % | 33,016 | 2.9 | % | ||||||||||||||||||||
E&S | 1,710 | 3.3 | % | 308 | 0.7 | % | 4,895 | 3.2 | % | 2,752 | 2.2 | % | ||||||||||||||||||||
Total Insurance Operations | $ | 10,394 | 1.9 | % | $ | 6,850 | 1.3 | % | $ | 33,180 | 2.1 | % | $ | 56,149 | 3.8 | % | ||||||||||||||||
Prior Year Casualty Reserve Development | Quarter Ended | Year-to-Date | ||||||||||||||||||||||||||||||
(Favorable) / Unfavorable | September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 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 | 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 | % | $ | - | 0.0 | % | $ | - | 0.0 | % | ||||||||||||||||
Standard Commercial Lines | (19,000 | ) | (4.5 | )% | (19,000 | ) | (4.9 | )% | (49,000 | ) | (4.0 | )% | (61,000 | ) | (5.4 | )% | ||||||||||||||||
E&S | - | 0.0 | % | 4,000 | 8.7 | % | 3,000 | 2.0 | % | 6,000 | 4.8 | % | ||||||||||||||||||||
Total Insurance Operations | $ | (19,000 | ) | (3.5 | )% | $ | (15,000 | ) | (3.0 | )% | $ | (46,000 | ) | (2.9 | )% | $ | (55,000 | ) | (3.7 | )% |
Note: Some amounts may not foot due to rounding.
Selective Insurance Group, Inc. & Consolidated Subsidiaries Consolidated Balance Sheets | Unaudited | |||||||
($ in thousands, except share amounts) | September 30, 2016 | December 31, 2015 | ||||||
ASSETS | ||||||||
Investments: | ||||||||
Fixed income securities, held-to-maturity – at carrying value (fair value: $136,094 – 2016; $209,544 – 2015) | $ | 130,472 | 201,354 | |||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $4,682,267 – 2016; $4,352,514 – 2015) | 4,832,532 | 4,408,203 | ||||||
Equity securities, available-for-sale – at fair value (cost: $122,981 – 2016; $193,816 – 2015) | 147,304 | 207,051 | ||||||
Short-term investments (at cost which approximates fair value) | 169,604 | 194,819 | ||||||
Other investments | 88,512 | 77,842 | ||||||
Total investments | 5,368,424 | 5,089,269 | ||||||
Cash | 1,493 | 898 | ||||||
Interest and dividends due or accrued | 39,901 | 38,501 | ||||||
Premiums receivable, net of allowance for uncollectible accounts of: $5,907 – 2016; $4,422 – 2015 | 711,589 | 615,164 | ||||||
Reinsurance recoverables, net of allowance for uncollectible accounts of: $5,500 – 2016; $5,700 – 2015 | 640,012 | 561,968 | ||||||
Prepaid reinsurance premiums | 151,981 | 140,889 | ||||||
Deferred federal income tax | 41,656 | 92,696 | ||||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: $198,171 – 2016; $188,548 – 2015 | 69,812 | 65,701 | ||||||
Deferred policy acquisition costs | 235,934 | 213,159 | ||||||
Goodwill | 7,849 | 7,849 | ||||||
Other assets | 94,582 | 78,339 | ||||||
Total assets | $ | 7,363,233 | 6,904,433 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Reserve for loss and loss expenses | $ | 3,686,586 | 3,517,728 | |||||
Unearned premiums | 1,306,255 | 1,169,710 | ||||||
Short-term debt | 45,000 | 60,000 | ||||||
Long-term debt | 378,551 | 328,192 | ||||||
Current federal income tax | 6,509 | 7,442 | ||||||
Accrued salaries and benefits | 103,583 | 167,336 | ||||||
Other liabilities | 261,845 | 255,984 | ||||||
Total liabilities | $ | 5,788,329 | 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: 101,505,201 – 2016; 100,861,372 – 2015 | 203,011 | 201,723 | ||||||
Additional paid-in capital | 342,846 | 326,656 | ||||||
Retained earnings | 1,538,928 | 1,446,192 | ||||||
Accumulated other comprehensive income (loss) | 62,209 | (9,425 | ) | |||||
Treasury stock – at cost (shares: 43,653,034 – 2016; 43,500,642 – 2015) | (572,090 | ) | (567,105 | ) | ||||
Total stockholders’ equity | $ | 1,574,904 | 1,398,041 | |||||
Commitments and contingencies | ||||||||
Total liabilities and stockholders’ equity | $ | 7,363,233 | 6,904,433 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries Unaudited Consolidated Statements of Income | Quarter ended September 30, | Nine Months ended September 30, | ||||||||||||||
($ in thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 542,429 | 507,390 | 1,596,819 | 1,473,822 | |||||||||||
Net investment income earned | 33,375 | 32,061 | 95,326 | 91,208 | ||||||||||||
Net realized gains: | ||||||||||||||||
Net realized investment gains | 4,030 | 1,590 | 7,233 | 23,598 | ||||||||||||
Other-than-temporary impairments | (342 | ) | (1,282 | ) | (4,494 | ) | (7,827 | ) | ||||||||
Other-than-temporary impairments on fixed income securities recognized in other comprehensive income | — | — | 10 | — | ||||||||||||
Total net realized gains | 3,688 | 308 | 2,749 | 15,771 | ||||||||||||
Other income | 2,199 | 698 | 7,018 | 5,521 | ||||||||||||
Total revenues | 581,691 | 540,457 | 1,701,912 | 1,586,322 | ||||||||||||
Expenses: | ||||||||||||||||
Loss and loss expense incurred | 316,258 | 285,161 | 911,881 | 861,721 | ||||||||||||
Policy acquisition costs | 193,835 | 174,802 | 567,793 | 509,295 | ||||||||||||
Interest expense | 5,714 | 5,610 | 16,940 | 16,826 | ||||||||||||
Other expenses | 10,441 | 9,045 | 35,669 | 29,586 | ||||||||||||
Total expenses | 526,248 | 474,618 | 1,532,283 | 1,417,428 | ||||||||||||
Income before federal income tax | 55,443 | 65,839 | 169,629 | 168,894 | ||||||||||||
Federal income tax expense: | ||||||||||||||||
Current | 5,625 | 9,141 | 38,027 | 29,128 | ||||||||||||
Deferred | 11,316 | 9,702 | 12,467 | 19,294 | ||||||||||||
Total federal income tax expense | 16,941 | 18,843 | 50,494 | 48,422 | ||||||||||||
Net income | $ | 38,502 | 46,996 | 119,135 | 120,472 | |||||||||||
Earnings per share: | ||||||||||||||||
Basic net income | $ | 0.66 | 0.82 | 2.06 | 2.11 | |||||||||||
Diluted net income | $ | 0.66 | 0.81 | 2.03 | 2.08 | |||||||||||
Dividends to stockholders | $ | 0.15 | 0.14 | 0.45 | 0.42 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries Unaudited Consolidated Statements of Comprehensive Income
| Quarter ended | Nine Months ended September 30, | ||||||||||||||
($ in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 38,502 | 46,996 | 119,135 | 120,472 | |||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||
Unrealized (losses) gains on investment securities: | ||||||||||||||||
Unrealized holding (losses) gains arising during period | (8,444 | ) | 5,442 | 70,473 | (18,132 | ) | ||||||||||
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | — | — | (6 | ) | — | |||||||||||
Amounts reclassified into net income: | ||||||||||||||||
Held-to-maturity securities | (9 | ) | (63 | ) | (68 | ) | (353 | ) | ||||||||
Non-credit other-than-temporary impairments | — | — | — | 232 | ||||||||||||
Realized gains on available-for-sale securities | (2,395 | ) | (199 | ) | (1,786 | ) | (10,906 | ) | ||||||||
Total unrealized (losses) gains on investment securities | (10,848 | ) | 5,180 | 68,613 | (29,159 | ) | ||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||
Net actuarial loss | 1,050 | 1,110 | 3,021 | 3,332 | ||||||||||||
Total defined benefit pension and post-retirement plans | 1,050 | 1,110 | 3,021 | 3,332 | ||||||||||||
Other comprehensive (loss) income | (9,798 | ) | 6,290 | 71,634 | (25,827 | ) | ||||||||||
Comprehensive income | $ | 28,704 | 53,286 | 190,769 | 94,645 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries Unaudited Consolidated Statements of Stockholders’ Equity
| Nine Months ended | |||||||
($ in thousands, except per share amounts) | 2016 | 2015 | ||||||
Common stock: | ||||||||
Beginning of year | $ | 201,723 | 199,896 | |||||
Dividend reinvestment plan (shares: 29,865 – 2016; 38,947 – 2015) | 60 | 78 | ||||||
Stock purchase and compensation plans (shares: 613,964 – 2016; 686,984 – 2015) | 1,228 | 1,374 | ||||||
End of period | 203,011 | 201,348 | ||||||
Additional paid-in capital: | ||||||||
Beginning of year | 326,656 | 305,385 | ||||||
Dividend reinvestment plan | 1,035 | 1,014 | ||||||
Stock purchase and compensation plans | 15,155 | 14,588 | ||||||
End of period | 342,846 | 320,987 | ||||||
Retained earnings: | ||||||||
Beginning of year | 1,446,192 | 1,313,440 | ||||||
Net income | 119,135 | 120,472 | ||||||
Dividends to stockholders ($0.45 per share – 2016; $0.42 per share – 2015) | (26,399 | ) | (24,376 | ) | ||||
End of period | 1,538,928 | 1,409,536 | ||||||
Accumulated other comprehensive income (loss): | ||||||||
Beginning of year | (9,425 | ) | 19,788 | |||||
Other comprehensive income (loss) | 71,634 | (25,827 | ) | |||||
End of period | 62,209 | (6,039 | ) | |||||
Treasury stock: | ||||||||
Beginning of year | (567,105 | ) | (562,923 | ) | ||||
Acquisition of treasury stock (shares: 152,392 – 2016; 139,031 – 2015) | (4,985 | ) | (3,887 | ) | ||||
End of period | (572,090 | ) | (566,810 | ) | ||||
Total stockholders’ equity | $ | 1,574,904 | 1,359,022 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries Unaudited Consolidated Statements of Cash Flow
| Nine Months ended | |||||||
($ in thousands) | 2016 | 2015 | ||||||
Operating Activities | ||||||||
Net income | $ | 119,135 | 120,472 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 45,563 | 43,868 | ||||||
Stock-based compensation expense | 8,950 | 7,626 | ||||||
Undistributed losses of equity method investments | 49 | 781 | ||||||
Net realized gains | (2,749 | ) | (15,771 | ) | ||||
Changes in assets and liabilities: | ||||||||
Increase in reserve for loss and loss expenses, net of reinsurance recoverables | 90,814 | 60,065 | ||||||
Increase in unearned premiums, net of prepaid reinsurance | 125,453 | 121,424 | ||||||
Decrease in net federal income taxes | 11,534 | 27,980 | ||||||
Increase in premiums receivable | (96,425 | ) | (95,188 | ) | ||||
Increase in deferred policy acquisition costs | (22,775 | ) | (28,058 | ) | ||||
(Increase) decrease in interest and dividends due or accrued | (1,356 | ) | 979 | |||||
Decrease in accrued salaries and benefits | (63,753 | ) | (338 | ) | ||||
Increase in other assets | (16,280 | ) | (13,888 | ) | ||||
(Decrease) increase in other liabilities | (20,686 | ) | 29,081 | |||||
Net adjustments | 58,339 | 138,561 | ||||||
Net cash provided by operating activities | 177,474 | 259,033 | ||||||
Investing Activities | ||||||||
Purchase of fixed income securities, available-for-sale | (842,253 | ) | (731,154 | ) | ||||
Purchase of fixed income securities, held-to-maturity | (4,235 | ) | — | |||||
Purchase of equity securities, available-for-sale | (24,747 | ) | (192,717 | ) | ||||
Purchase of other investments | (34,994 | ) | (6,589 | ) | ||||
Purchase of short-term investments | (1,307,024 | ) | (1,084,794 | ) | ||||
Sale of fixed income securities, available-for-sale | 33,448 | 22,323 | ||||||
Sale of short-term investments | 1,332,239 | 1,090,911 | ||||||
Redemption and maturities of fixed income securities, held-to-maturity | 74,186 | 79,972 | ||||||
Redemption and maturities of fixed income securities, available-for-sale | 483,877 | 403,510 | ||||||
Sale of equity securities, available-for-sale | 99,420 | 148,228 | ||||||
Distributions from other investments | 18,512 | 22,038 | ||||||
Purchase of property and equipment | (13,421 | ) | (11,869 | ) | ||||
Net cash used in investing activities | (184,992 | ) | (260,141 | ) | ||||
Financing Activities | ||||||||
Dividends to stockholders | (24,885 | ) | (22,848 | ) | ||||
Acquisition of treasury stock | (4,985 | ) | (3,887 | ) | ||||
Net proceeds from stock purchase and compensation plans | 4,906 | 6,016 | ||||||
Proceeds from borrowings | 105,000 | 15,000 | ||||||
Repayments of borrowings | (70,000 | ) | — | |||||
Excess tax benefits from share-based payment arrangements | 1,917 | 1,498 | ||||||
Repayments of capital lease obligations | (3,840 | ) | (3,517 | ) | ||||
Net cash provided by (used in) financing activities | 8,113 | (7,738 | ) | |||||
Net increase (decrease) in cash | 595 | (8,846 | ) | |||||
Cash, beginning of year | 898 | 23,959 | ||||||
Cash, end of period | $ | 1,493 | 15,113 |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Statutory Balance Sheets
(unaudited)
September 30, | September 30, | December 31, | ||||||||||
($ in thousands) | 2016 | 2015 | 2015 | |||||||||
ASSETS | ||||||||||||
Bonds | $ | 4,737,691 | 4,438,650 | 4,491,136 | ||||||||
Common stocks | 135,489 | 210,197 | 194,789 | |||||||||
Preferred stocks | 11,310 | 11,708 | 11,856 | |||||||||
Affiliated mortgage loan | 34,538 | 35,366 | 35,163 | |||||||||
Other investments | 134,972 | 136,591 | 128,788 | |||||||||
Short-term investments | 147,891 | 109,393 | 165,678 | |||||||||
Total investments | 5,201,891 | 4,941,905 | 5,027,410 | |||||||||
Cash on hand and in banks | 5,581 | (6,272 | ) | (34,378 | ) | |||||||
Interest and dividends due and accrued | 39,843 | 37,944 | 38,466 | |||||||||
Premiums receivable | 705,735 | 648,264 | 609,146 | |||||||||
Reinsurance recoverable on paid losses and expenses | 9,326 | 11,288 | 10,949 | |||||||||
Deferred tax recoverable | 159,475 | 146,936 | 142,066 | |||||||||
EDP equipment | 389 | 436 | 390 | |||||||||
Equities and deposits in pools and associations | 12,533 | 12,394 | 10,920 | |||||||||
Receivable for sold securities | 6 | 64 | 17 | |||||||||
Other assets | 30,343 | 26,798 | 28,300 | |||||||||
Total assets | $ | 6,165,122 | 5,819,757 | 5,833,286 | ||||||||
LIABILITIES | ||||||||||||
Reserve for losses | $ | 2,477,012 | 2,427,024 | 2,426,583 | ||||||||
Reinsurance payable on paid loss and loss expense | 3,472 | 2,677 | 2,841 | |||||||||
Reserve for loss expenses | 561,520 | 526,253 | 525,322 | |||||||||
Unearned premiums | 1,154,274 | 1,070,250 | 1,028,820 | |||||||||
Reserve for commissions payable | 83,202 | 73,293 | 89,740 | |||||||||
Ceded balances payable | 46,471 | 32,626 | 37,222 | |||||||||
Federal income tax payable | 18,332 | 22,996 | 25,644 | |||||||||
Premium and other taxes payable | 21,375 | 24,257 | 23,998 | |||||||||
Borrowed money | 95,156 | 60,029 | 60,031 | |||||||||
Reserve for dividends to policyholders | 6,587 | 5,989 | 5,805 | |||||||||
Reserves for unauthorized reinsurance | 2,030 | 7,661 | 2,030 | |||||||||
Payable for securities | 31,326 | 31,974 | 6,204 | |||||||||
Funds withheld on account of others | 10,671 | 7,695 | 6,806 | |||||||||
Accrued salaries and benefits | 69,337 | 69,837 | 77,933 | |||||||||
Other liabilities | 33,130 | 89,853 | 87,987 | |||||||||
Total liabilities | 4,613,895 | 4,452,414 | 4,406,966 | |||||||||
POLICYHOLDERS' SURPLUS | ||||||||||||
Capital | 42,725 | 42,725 | 42,725 | |||||||||
Paid in surplus | 492,869 | 492,869 | 492,869 | |||||||||
Unassigned surplus | 1,015,633 | 831,749 | 890,726 | |||||||||
Total policyholders' surplus | 1,551,227 | 1,367,343 | 1,426,320 | |||||||||
Total liabilities and policyholders' surplus | $ | 6,165,122 | 5,819,757 | 5,833,286 |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Statutory Statements Of Income
(unaudited)
Quarter Ended September | Nine Months Ended September | |||||||||||||||||||||||||||||||
($ in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||
UNDERWRITING | ||||||||||||||||||||||||||||||||
Net premiums written | $ | 578,773 | 545,025 | 1,722,272 | 1,595,246 | |||||||||||||||||||||||||||
Net premiums earned | 542,429 | 507,390 | 1,596,819 | 1,473,822 | ||||||||||||||||||||||||||||
Net losses paid | 226,037 | 237,573 | 678,430 | 656,683 | ||||||||||||||||||||||||||||
Change in reserve for losses | 26,528 | (11,051 | ) | 50,463 | 28,493 | |||||||||||||||||||||||||||
Net losses incurred | 252,565 | 46.5 | % | 226,522 | 44.6 | % | 728,893 | 45.6 | % | 685,176 | 46.5 | % | ||||||||||||||||||||
Net loss expenses paid | 48,335 | 50,084 | 145,504 | 144,145 | ||||||||||||||||||||||||||||
Change in reserve for loss expenses | 15,460 | 8,083 | 36,198 | 32,744 | ||||||||||||||||||||||||||||
Net loss expenses incurred | 63,795 | 11.8 | % | 58,167 | 11.5 | % | 181,702 | 11.4 | % | 176,889 | 12.0 | % | ||||||||||||||||||||
Net underwriting expenses incurred | 201,060 | 34.8 | % | 185,183 | 33.9 | % | 590,178 | 34.3 | % | 537,019 | 33.6 | % | ||||||||||||||||||||
Total deductions | 517,420 | 469,872 | 1,500,773 | 1,399,084 | ||||||||||||||||||||||||||||
Statutory underwriting gain | 25,009 | 37,518 | 96,046 | 74,738 | ||||||||||||||||||||||||||||
Net loss from premium balances charged off | (734 | ) | (833 | ) | (2,058 | ) | (2,146 | ) | ||||||||||||||||||||||||
Finance charges and other income | 2,228 | 772 | 7,092 | 5,688 | ||||||||||||||||||||||||||||
Total other income | 1,494 | -0.3 | % | (61 | ) | 0.1 | % | 5,034 | -0.3 | % | 3,542 | -0.2 | % | |||||||||||||||||||
Policyholders' dividends incurred | (541 | ) | 0.1 | % | (1,921 | ) | 0.4 | % | (3,812 | ) | 0.2 | % | (5,290 | ) | 0.4 | % | ||||||||||||||||
Total underwriting gain | 25,962 | 92.9 | % | 35,536 | 90.5 | % | 97,268 | 91.2 | % | 72,990 | 92.3 | % | ||||||||||||||||||||
INVESTMENT | ||||||||||||||||||||||||||||||||
Net investment income earned | 32,398 | 31,821 | 93,920 | 91,103 | ||||||||||||||||||||||||||||
Net realized gain | 3,689 | 309 | 2,747 | 15,770 | ||||||||||||||||||||||||||||
Total income before income tax | 62,049 | 67,666 | 193,935 | 179,863 | ||||||||||||||||||||||||||||
Federal income tax expense | 8,778 | 17,938 | 47,283 | 37,729 | ||||||||||||||||||||||||||||
Net income | $ | 53,271 | 49,728 | 146,652 | 142,134 | |||||||||||||||||||||||||||
Policyholders' Surplus | ||||||||||||||||||||||||||||||||
Surplus, beginning of period | $ | 1,506,535 | 1,344,630 | 1,426,320 | 1,307,842 | |||||||||||||||||||||||||||
Net income | 53,271 | 49,728 | 146,652 | 142,134 | ||||||||||||||||||||||||||||
Change in deferred taxes | (10,503 | ) | 752 | (9,002 | ) | (11,401 | ) | |||||||||||||||||||||||||
Change in net unrealized capital (losses) / gains | (1,078 | ) | (6,554 | ) | 7,159 | (20,101 | ) | |||||||||||||||||||||||||
Dividends to stockholders | (15,254 | ) | (14,438 | ) | (45,761 | ) | (43,314 | ) | ||||||||||||||||||||||||
Change in non-admitted assets | 16,729 | (8,390 | ) | 21,471 | (12,661 | ) | ||||||||||||||||||||||||||
Change in Overfunded Contra Asset | (28,408 | ) | (281 | ) | (52,108 | ) | (842 | ) | ||||||||||||||||||||||||
Qual Pen Trans Liab | 29,908 | 1,845 | 56,425 | 5,534 | ||||||||||||||||||||||||||||
Excess Plan Trans Liab | 22 | 44 | 60 | 130 | ||||||||||||||||||||||||||||
PRL Plan Trans Liab | 5 | 7 | 11 | 22 | ||||||||||||||||||||||||||||
Net change in surplus for period | 44,692 | 22,713 | 124,907 | 59,501 | ||||||||||||||||||||||||||||
Surplus, end of period | $ | 1,551,227 | 1,367,343 | 1,551,227 | 1,367,343 | |||||||||||||||||||||||||||
Statutory underwriting gain | $ | 25,962 | 35,536 | 97,268 | 72,990 | |||||||||||||||||||||||||||
Adjustments under GAAP: | ||||||||||||||||||||||||||||||||
Deferred policy acquisition costs | 7,380 | 10,442 | 22,775 | 28,058 | ||||||||||||||||||||||||||||
Other, net | (1,309 | ) | (1,147 | ) | (3,278 | ) | (1,072 | ) | ||||||||||||||||||||||||
GAAP underwriting gain | $ | 32,033 | 44,831 | 116,765 | 99,976 | |||||||||||||||||||||||||||
Note: Some amounts or ratios may not foot due to rounding
Selective Insurance Group, Inc. and Consolidated Subsidiaries | ||||
Alternative Investments | ||||
September 30, 2016 | ||||
(unaudited) | ||||
Number | Original | Remaining | Current | |
Strategy | of Funds | Commitment | Commitment | Market Value |
Private Equity | 15 | 150,456,790 | 57,793,283 | 35,443,848 |
Private Credit | 8 | 92,000,000 | 30,762,618 | 27,708,889 |
Real Assets | 7 | 100,000,000 | 22,922,421 | 15,329,396 |
TOTAL - ALTERNATIVE INVESTMENTS | 30 | 342,456,790 | 111,478,322 | 78,482,133 |
| ||||
Exhibit may not foot due to rounding |