EX-99.2 3 exh_992.htm EXHIBIT 99.2

Exhibit 99.2

 

 

 

 

 

 

Supplemental Investor Package

________________________________________________

 

First Quarter 2017

 

 

 

 

 

 

 

 

 

 

Investor Contact:

Rohan Pai

Senior Vice President, Investor Relations and Treasurer

Tel: 973-948-1364

Rohan.Pai @selective.com

 

 

 

 

 

 

Selective Insurance Group, Inc. & Consolidated Subsidiaries

Selected Balance Sheet Data

(unaudited)

 

   March 31,  March 31,  December 31,
($ in thousands, except per share amounts)  2017  2016  2016
         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  $3,480,965    3,482,488    34,897    3,073,489    3,076,144    53,348   $3,332,522    3,334,044    24,339 
Government and Municipal bonds   1,470,876    1,472,856    30,350    1,690,552    1,695,583    70,315    1,561,574    1,563,707    18,255 
Total fixed income securities   4,951,841    4,955,344    65,247    4,764,041    4,771,727    123,663    4,894,096    4,897,751    42,594 
Equities   154,918    154,918    30,304    215,789    215,789    21,611    146,753    146,753    25,864 
Short-term investments   247,207    247,207    -    103,132    103,132    -    221,701    221,701    - 
Other investments   106,796    106,796    -    80,916    80,916    -    102,397    102,397    - 
Total invested assets  $5,460,762    5,464,265    95,551    5,163,878    5,171,564    145,274   $5,364,947    5,368,602    68,458 
                                              
                                              
Invested assets per $ of stockholders' equity   3.43              3.50              3.50           
                                              
Total assets   7,404,096              7,022,492              7,355,848           
                                              
Liabilities:                                             
Reserve for losses and loss expenses   3,679,471              3,575,496              3,691,719           
Unearned premium reserve   1,299,823              1,209,377              1,262,819           
                                              
Total liabilities   5,811,517              5,546,527              5,824,478           
                                              
Stockholders' equity   1,592,579              1,475,965              1,531,370           
                                              
Total debt-to-capitalization ratio   21.6%             20.8%             22.3%          
                                              
Book value per share   27.34              25.61              26.42           
                                              
Book value per share excluding                                             
 unrealized gain or loss on bond portfolio   26.65              24.30              25.98           
                                              
NPW per insurance segment employee   1,043              999              1,028           
                                              
Statutory premiums to surplus ratio   1.4x             1.4x             1.4x          
                                              
Statutory surplus   1,622,268              1,461,326              1,583,781           

 

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)  2017  2016
        Per diluted share     Per diluted share
Consolidated            
Revenue  $600,469        $551,474      
Net income   50,440    0.85    37,032    0.63 
Exclude: Net realized losses   1,045    0.02    2,704    0.05 
Exclude: Tax on net realized losses   (366)   (0.01)   (946)   (0.02)
Operating income   51,119    0.86    38,790    0.66 
                       
Total Insurance Operations                    
Gross premiums written  $689,511         652,598      
Net premiums written   598,704         565,359      
Net premiums earned   560,854         522,458      
Underwriting gain   - before tax   49,222         40,955      
  - after tax   31,994    0.54    26,621    0.46 
GAAP combined ratio   91.2%        92.2%     
                       
Standard Commercial Lines                    
Net premiums earned  $438,414         402,889      
GAAP combined ratio   90.3%        92.3%     
                       
Standard Personal Lines                    
Net premiums earned  $71,201         70,205      
GAAP combined ratio   92.8%        87.7%     
                       
Excess and Surplus Lines                    
Net premiums earned  $51,239         49,364      
GAAP combined ratio   96.9%        97.1%     
                       
Investments                    
Net investment income    - before tax  $37,419         30,769      
  - after tax   27,451    0.46    23,560    0.40 
Effective tax rate   26.6%        23.4%     
Annual after-tax yield on investment portfolio   2.0%        1.8%     
Annual after-tax, after-interest expense yield   1.7%        1.6%     
Invested assets per $ of stockholders' equity   3.43         3.50      
                       
Other expenses (net of other income)                    
Interest expense    - before tax  $(6,106)        (5,606)     
  - after tax   (3,969)   (0.07)   (3,644)   (0.06)
                       
Other expense - after tax     (4,357)   (0.07)  $(7,747)   (0.14)
                       
Diluted weighted avg shares outstanding   59,148         58,507      

 

 

Selective Insurance Group, Inc. & Consolidated Subsidiaries

GAAP Insurance Operations Results

(unaudited)

 

($ in thousands)  Quarter Ended March 31, 2017  Quarter Ended March 31, 2016
                         
   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  $483,548    64,696    50,460    598,704   $455,063    61,969    48,327    565,359 
Net Premiums Earned   438,414    71,201    51,239    560,854    402,889    70,205    49,364    522,458 
Losses and Loss Expenses Incurred   241,564    44,290    31,618    317,472    223,350    39,695    34,099    297,144 
Net Underwriting Expenses Incurred   154,401    21,805    18,051    194,257    146,954    21,905    13,847    182,706 
Dividends to Policyholders   (97)   -    -    (97)   1,653    -    -    1,653 
GAAP Underwriting Gain  $42,546    5,106    1,570    49,222   $30,932    8,605    1,418    40,955 
                                         
GAAP Ratios                                        
Loss and Loss Expense Ratio   55.1%   62.2%   61.7%   56.6%   55.4%   56.5%   69.1%   56.9%
Underwriting Expense Ratio   35.2%   30.6%   35.2%   34.6%   36.5%   31.2%   28.0%   35.0%
Dividends to Policyholders Ratio   0.0%   0.0%   0.0%   0.0%   0.4%   0.0%   0.0%   0.3%
Combined Ratio   90.3%   92.8%   96.9%   91.2%   92.3%   87.7%   97.1%   92.2%
                                         

 

 

Selective Insurance Group, Inc. and Consolidated Subsidiaries

GAAP Investment Income

March 2017 (unaudited)

 

   Quarter Ended  %
   March  March  Increase
($ in thousands, except per share data)  2017  2016  (Decrease)
Investment Income:         
Interest:         
Fixed Income Securities  $36,891    31,644    17 
Short-term   250    159    57 
Other Investments   1,603    (1,066)   250 
Dividends   1,468    2,230    (34)
    40,212    32,967    22 
                
Investment Expense   2,793    2,198    27 
                
Net Investment Income Before Tax   37,419    30,769    22 
                
Tax   9,968    7,209    38 
                
Net Investment Income After Tax  $27,451    23,560    17 
                
Net Investment Income per Share  $0.46    0.40    15 
                
                
Effective Tax Rate   26.6%   23.4%     
                
Average Yields:               
                
Fixed Income Securities:               
Pre Tax   3.00%   2.70%     
After Tax   2.18%   2.02%     
                
Portfolio:               
Pre Tax   2.77%   2.40%     
After Tax   2.03%   1.84%     
                
                
    Quarter Ended      
    March    March      
Net Realized Losses   2017    2016      
Fixed Income Securities   (196)   (390)     
Equity Securities   (1,314)   (2,310)     
Other Investments   465    (4)     
                
Total   (1,045)   (2,704)     
Net of Tax   (679)   (1,758)     

 

Year-to-date as of March 31, 2017, new money rates for fixed income securities were 3.1% on a pre-tax basis and 2.1% on an after-tax basis.

 

Selective Insurance Group, Inc.

Combined Insurance Company Subsidiaries

2017 Statutory Results by Line of Business

Quarter Ended March 2017 (unaudited)

 

   Net     Net           Underwriting  Dividends to  Combined  Combined   
   Premiums  Percent  Premiums  Percent  Loss  LAE  Expense  Policyholders  Ratio  Ratio  Underwriting
($ in thousands)  Written  Change  Earned  Change  Ratio  Ratio  Ratio  Ratio  2017  2016  Gain/(Loss)
Standard Personal Lines:                                                       
                                                        
Homeowners  $26,535    (0.1)%  $32,700    (0.6)%   38.8%   8.5%   39.2%   0.0%   86.5%   86.5%  $6,830 
Auto   36,719    7.9%   36,950    3.3%   65.9%   10.9%   33.4%   0.0%   110.1%   104.9%   (3,673)
Other (including flood)   1,441    5.1%   1,551    1.7%   54.9%   (24.6)%   (151.2)%   0.0%   (120.9)%   (142.0)%   3,260 
Total  $64,696    4.4%  $71,201    1.4%   53.2%   9.0%   31.7%   0.0%   93.9%   90.6%  $6,418 
                                                        
Standard Commercial Lines:                                                       
                                                        
Commercial property  $80,503    6.4%  $76,391    8.9%   43.3%   5.2%   37.6%   (0.4)%   85.8%   91.8%  $9,319 
Workers compensation   91,840    0.6%   79,326    4.4%   54.9%   13.6%   26.0%   1.1%   95.6%   81.1%   245 
General liability   155,137    7.2%   139,984    9.3%   31.9%   7.5%   34.1%   (0.2)%   73.2%   83.4%   32,295 
Auto   117,387    8.5%   107,129    12.3%   63.7%   10.4%   32.0%   (0.3)%   105.7%   104.9%   (9,384)
Businessowners' policies   26,201    5.7%   24,845    3.9%   46.3%   11.3%   37.2%   0.0%   94.8%   95.0%   793 
Bonds   7,792    31.5%   6,498    18.9%   11.1%   6.5%   51.9%   0.0%   69.4%   81.6%   1,315 
Other   4,690    4.8%   4,241    10.5%   (0.2)%   0.3%   54.8%   0.0%   55.1%   53.8%   1,660 
Total  $483,548    6.3%  $438,414    8.8%   46.0%   9.1%   33.2%   (0.0)%   88.3%   89.7%  $36,244 
                                                        
E&S   50,460    4.4%   51,239    3.8%   45.5%   16.3%   34.1%   0.0%   95.9%   98.4%   2,347 
                                                        
Total Insurance Operations  $598,704    5.9%  $560,854    7.3%   46.9%   9.7%   33.1%   (0.0)%   89.7%   90.7%  $45,009 
                                                        
Note: Some amounts may not foot due to rounding.
                                                        
         2017    2016                                         
    Losses Paid    241,979    210,673                                         
    LAE Paid    48,513    46,124                                         
    Total Paid   $290,492   $256,797                                         
                                                        

 

 

Selective Insurance Group, Inc.

Combined Insurance Company Subsidiaries

2017 Net Catastrophe Losses and Prior Year Casualty Reserve Development

Statutory Results by Line of Business

(unaudited)

 

   Quarter Ended
Net Catastrophe Losses Incurred  March 31, 2017  March 31, 2016
($ in thousands)  Losses and Loss
Expenses Incurred		  Impact on Losses and
Loss Expense Ratio		  Losses and Loss
Expenses Incurred		  Impact on Losses and
Loss Expense Ratio
             
Standard Personal Lines  $3,909    5.5%  $2,225    3.2%
                     
Standard Commercial Lines   6,899    1.6%   11,649    2.9%
                     
E&S   1,403    2.7%   495    1.0%
                     
Total Insurance Operations  $12,212    2.2%  $14,369    2.8%
                     
                     
                     
                     
                     
                     

 

Prior Year Casualty Reserve Development  Quarter Ended
(Favorable) / Unfavorable  March 31, 2017  March 31, 2016
($ in thousands)  Losses and Loss
Expenses Incurred		  Impact on Losses and
Loss Expense Ratio		  Losses and Loss
Expenses Incurred		  Impact on Losses and
Loss Expense Ratio
             
Standard Personal Lines  $2,000    2.8%  $-    0.0%
                     
Standard Commercial Lines   (16,400)   (3.7)%   (18,000)   (4.5)%
                     
E&S   -    0.0%   1,000    2.0%
                     
Total Insurance Operations  $(14,400)   (2.6)%  $(17,000)   (3.3)%

 

Note: Some amounts may not foot due to rounding.

 

 

Selective Insurance Group, Inc. & Consolidated Subsidiaries

      
Consolidated Balance Sheets  Unaudited   
       
   March 31,  December 31,
($ in thousands, except share amounts)  2017  2016
ASSETS          
Investments:          
Fixed income securities, held-to-maturity – at carrying value
(fair value:  $88,339 – 2017; $105,211 – 2016)		  $84,836    101,556 
Fixed income securities, available-for-sale – at fair value
(amortized cost: $4,805,368 – 2017; $4,753,759 – 2016)		   4,867,005    4,792,540 
Equity securities, available-for-sale – at fair value
(cost:  $124,614 – 2017; $120,889 – 2016)		   154,918    146,753 
Short-term investments (at cost which approximates fair value)   247,207    221,701 
Other investments   106,796    102,397 
Total investments   5,460,762    5,364,947 
Cash   483    458 
Interest and dividends due or accrued   40,239    40,164 
Premiums receivable, net of allowance for uncollectible
accounts of:  $6,613 – 2017; $5,980 – 2016		   707,677    681,611 
Reinsurance recoverable, net of allowance for uncollectible
accounts of: $5,000 – 2017; $5,500 – 2016		   580,386    621,537 
Prepaid reinsurance premiums   145,436    146,282 
Current federal income tax   —    2,486 
Deferred federal income tax   72,218    84,840 
Property and equipment – at cost, net of accumulated
depreciation and amortization of: $202,917 – 2017; $198,729 – 2016		   68,503    69,576 
Deferred policy acquisition costs   227,622    222,564 
Goodwill   7,849    7,849 
Other assets   92,921    113,534 
Total assets  $7,404,096    7,355,848 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Liabilities:          
Reserve for losses and loss expenses  $3,679,471    3,691,719 
Unearned premiums   1,299,823    1,262,819 
Long-term debt   438,782    438,667 
Current federal income tax   11,552    — 
Accrued salaries and benefits   96,322    132,880 
Other liabilities   285,567    298,393 
Total liabilities  $5,811,517    5,824,478 
           
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: 102,028,447 – 2017; 101,620,436 – 2016   204,057    203,241 
Additional paid-in capital   354,239    347,295 
Retained earnings   1,609,862    1,568,881 
Accumulated other comprehensive income (loss)   2,090    (15,950)
Treasury stock – at cost
(shares:  43,780,884 – 2017; 43,653,237 – 2016)		   (577,669)   (572,097)
Total stockholders’ equity  $1,592,579    1,531,370 
Commitments and contingencies          
Total liabilities and stockholders’ equity  $7,404,096    7,355,848 

 

 
Selective Insurance Group, Inc. & Consolidated Subsidiaries   
Unaudited Consolidated Statements of Income   
   Quarter Ended March 31,
($ in thousands, except per share amounts)  2017  2016
Revenues:      
Net premiums earned  $560,854    522,458 
Net investment income earned   37,419    30,769 
Net realized losses:          
Net realized investment gains   2,430    889 
Other-than-temporary impairments   (3,475)   (3,593)
Total net realized losses   (1,045)   (2,704)
Other income   3,241    951 
Total revenues   600,469    551,474 
           
Expenses:          
Losses and loss expenses incurred   317,472    297,144 
Policy acquisition costs   196,228    183,227 
Interest expense   6,106    5,606 
Other expenses   13,089    13,622 
Total expenses   532,895    499,599 
           
Income before federal income tax   67,574    51,875 
           
Federal income tax expense:          
Current   14,273    14,084 
Deferred   2,861    759 
Total federal income tax expense   17,134    14,843 
           
Net income  $50,440    37,032 
           
Earnings per share:          
Basic net income  $0.87    0.64 
           
Diluted net income  $0.85    0.63 
           
Dividends to stockholders  $0.16    0.15 

 

 
Selective Insurance Group, Inc. & Consolidated Subsidiaries   
Unaudited Consolidated Statements of Comprehensive Income   
   Quarter Ended March 31,
($ in thousands)  2017  2016
Net income  $50,440    37,032 
           
Other comprehensive income, net of tax:          
Unrealized gains on investment securities:          
Unrealized holding gains arising during period   16,761    42,729 
Amounts reclassified into net income:          
Held-to-maturity securities   (32)   (47)
Realized losses on available-for-sale securities   981    1,754 
Total unrealized gains on investment securities   17,710    44,436 
           
Defined benefit pension and post-retirement plans:          
Amounts reclassified into net income:          
Net actuarial loss   330    986 
Total defined benefit pension and post-retirement plans   330    986 
Other comprehensive income   18,040    45,422 
Comprehensive income  $68,480    82,454 

 

 

Selective Insurance Group, Inc. & Consolidated Subsidiaries   
Unaudited Consolidated Statements of Stockholders’ Equity   
   Quarter Ended March 31,
($ in thousands)  2017  2016
Common stock:          
Beginning of year  $203,241    201,723 
Dividend reinvestment plan
  (shares:  8,249 – 2017; 10,931 – 2016) 		   16    22 
Stock purchase and compensation plans
  (shares:  399,762 – 2017; 386,567 – 2016) 		   800    773 
End of period   204,057    202,518 
           
Additional paid-in capital:          
Beginning of year   347,295    326,656 
Dividend reinvestment plan   348    351 
Stock purchase and compensation plans   6,596    6,958 
End of period   354,239    333,965 
           
Retained earnings:          
Beginning of year   1,568,881    1,446,192 
Net income   50,440    37,032 
Dividends to stockholders
  ($0.16 per share – 2017; $0.15 per share – 2016) 		   (9,459)   (8,789)
End of period   1,609,862    1,474,435 
           
Accumulated other comprehensive income:          
Beginning of year   (15,950)   (9,425)
Other comprehensive income   18,040    45,422 
End of period   2,090    35,997 
           
Treasury stock:          
Beginning of year   (572,097)   (567,105)
Acquisition of treasury stock
  (shares: 127,647 – 2017; 122,250 – 2016) 		   (5,572)   (3,845)
End of period   (577,669)   (570,950)
Total stockholders’ equity  $1,592,579    1,475,965 

 

 

Selective Insurance Group, Inc. & Consolidated Subsidiaries      
Unaudited Consolidated Statements of Cash Flows      
   Quarter Ended March 31,
($ in thousands)  2017  2016
Operating Activities          
           
Net income  $50,440    37,032 
           
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   12,882    14,627 
Stock-based compensation expense   5,273    4,377 
Undistributed (gains) losses of equity method investments   (665)   1,066 
Loss on disposal of fixed assets   998    — 
Net realized losses   1,045    2,704 
           
Changes in assets and liabilities:          
Increase in reserve for losses and loss expenses, net of reinsurance recoverable   28,903    42,390 
Increase in unearned premiums, net of prepaid reinsurance   37,850    42,901 
Decrease in net federal income taxes   16,946    5,296 
Increase in premiums receivable   (26,066)   (39,180)
Increase in deferred policy acquisition costs   (5,058)   (7,789)
(Increase) decrease in interest and dividends due or accrued   (218)   528 
Decrease in accrued salaries and benefits   (36,558)   (27,115)
Decrease (increase) in other assets   15,998    (10,128)
Decrease in other liabilities   (55,175)   (52,902)
Net cash provided by operating activities   46,595    13,807 
           
Investing Activities          
Purchase of fixed income securities, available-for-sale   (724,880)   (264,828)
Purchase of equity securities, available-for-sale   (14,083)   (7,574)
Purchase of other investments   (11,211)   (12,723)
Purchase of short-term investments   (1,027,885)   (303,228)
Sale of fixed income securities, available-for-sale   594,805    12,905 
Sale of short-term investments   1,010,917    394,915 
Redemption and maturities of fixed income securities, held-to-maturity   16,527    37,400 
Redemption and maturities of fixed income securities, available-for-sale   116,357    130,641 
Sale of equity securities, available-for-sale   5,503    4,285 
Distributions from other investments   6,428    7,994 
Purchase of property and equipment   (4,937)   (3,439)
Net cash used in investing activities   (32,459)   (3,652)
           
Financing Activities          
Dividends to stockholders   (8,955)   (8,270)
Acquisition of treasury stock   (5,572)   (3,845)
Net proceeds from stock purchase and compensation plans   1,563    1,478 
Proceeds from borrowings   64,000    25,000 
Repayments of borrowings   (64,000)   (25,000)
Excess tax benefits from share-based payment arrangements   —    1,361 
Repayments of capital lease obligations   (1,147)   (1,094)
Net cash used in financing activities   (14,111)   (10,370)
Net increase (decrease) in cash   25    (215)
Cash, beginning of year   458    898 
Cash, end of period  $483    683 

 

 

 Selective Insurance Group, Inc.

 Combined Insurance Company Subsidiaries

 Statutory Balance Sheets

 (unaudited)

 

   March 31,  March 31,  December 31,
($ in thousands)  2017  2016  2016
          
ASSETS               
Bonds  $4,824,921    4,583,540    4,780,269 
Common stocks   138,331    202,619    130,608 
Preferred stocks   16,107    12,807    15,871 
Affiliated mortgage loan   34,108    34,957    34,324 
Other investments   151,770    130,365    147,364 
Short-term investments   221,505    81,011    203,924 
Total investments   5,386,742    5,045,299    5,312,360 
                
Cash on hand and in banks   (4,415)   (12,429)   13,911 
Interest and dividends due and accrued   40,102    37,891    40,038 
Premiums receivable   699,630    649,660    673,649 
Reinsurance recoverable on paid losses and expenses   8,455    9,025    10,337 
Deferred tax recoverable   159,702    144,761    161,165 
EDP equipment   1,732    397    549 
Equities and deposits in pools and associations   12,050    10,864    12,683 
Receivable for sold securities   373    647    5,176 
Other assets   30,153    28,245    29,040 
Total assets  $6,334,524    5,914,360    6,258,908 
                
LIABILITIES               
Reserve for losses  $2,518,967    2,456,286    2,497,916 
Reinsurance payable on paid loss and loss expense   3,400    3,057    3,163 
Reserve for loss expenses   570,944    534,949    564,976 
Unearned premiums   1,154,386    1,071,722    1,116,536 
Reserve for commissions payable   53,402    50,382    92,763 
Ceded balances payable   40,690    41,112    62,939 
Federal income tax payable   38,411    34,247    17,394 
Premium and other taxes payable   21,741    19,411    24,149 
Borrowed money   110,214    60,031    110,212 
Reserve for dividends to policyholders   4,111    6,439    5,706 
Reserves for unauthorized reinsurance   1,755    2,030    1,755 
Payable for securities   86,288    25,563    41,603 
Funds withheld on account of others   10,776    7,928    7,501 
Accrued salaries and benefits   48,280    52,230    83,718 
Other liabilities   48,891    87,647    44,796 
Total liabilities   4,712,256    4,453,034    4,675,127 
                
                
POLICYHOLDERS' SURPLUS               
Capital   42,725    42,725    42,725 
Paid in surplus   492,869    492,869    492,869 
Unassigned surplus   1,086,674    925,732    1,048,187 
Total policyholders' surplus   1,622,268    1,461,326    1,583,781 
Total liabilities and policyholders' surplus  $6,334,524    5,914,360    6,258,908 

 

 

 

Selective Insurance Group, Inc.

 Combined Insurance Company Subsidiaries

Statutory Statements of Income

(unaudited)

 

   Quarter Ended
   March
($ in thousands)  2017     2016   
UNDERWRITING            
Net premiums written  $598,704         565,359      
                     
Net premiums earned   560,854         522,458      
                     
Net losses paid   241,979         210,673      
Change in reserve for losses   21,051         29,703      
Net losses incurred   263,030    46.9%   240,376    46.0%
                     
Net loss expenses paid   48,513         46,124      
Change in reserve for loss expenses   5,969         9,627      
Net loss expenses incurred   54,482    9.7%   55,751    10.7%
                     
Net underwriting expenses incurred   201,060    33.5%   190,917    33.7%
                     
Total deductions   518,572         487,044      
Statutory underwriting gain   42,282         35,414      
                     
Net loss from premium balances charged off   (645)        (691)     
Finance charges and other income   3,275         962      
Total other income   2,630    -0.4%   271    0.0%
Policyholders' dividends incurred   97    0.0%   (1,653)   0.3%
Total underwriting gain   45,009    89.7%   34,032    90.7%
                     
INVESTMENT                    
Net investment income earned   35,757         30,623      
Net realized losses   (1,082)        (2,704)     
Total income before income tax   79,684         61,951      
                     
Federal income tax expense   21,016         16,603      
                     
Net income  $58,668         45,348      
                     
Policyholders' surplus                    
Surplus, beginning of period  $1,583,781         1,426,320      
                     
Net income   58,668         45,348      
Change in deferred taxes   (1,752)        352      
Change in net unrealized capital losses   3,771         5,311      
Dividends to stockholders   (20,024)        (15,254)     
Change in non-admitted assets   (2,656)        (2,182)     
Change in Overfunded Contra Asset   (1,282)        (1,047)     
Qual Pen Trans Liab   1,744         2,456      
Excess Plan Trans Liab   8         19      
PRL Plan Trans Liab   10         3      
                     
Net change in surplus for period   38,487         35,006      
                     
Surplus, end of period  $1,622,268         1,461,326      
                     
Statutory underwriting gain  $45,009         34,032      
                     
Adjustments under GAAP:                    
Deferred policy acquisition costs   5,058         7,789      
Other, net   (845)        (866)     
GAAP underwriting gain  $49,222         40,955      
                     

 

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

 

 

Selective Insurance Group, Inc. and Consolidated Subsidiaries
Alternative Investments
March 31, 2017
(unaudited)
             
   Number  Original  Remaining  Current
Strategy  of Funds  Commitment  Commitment  Market Value
Private Equity   20    176,515,538    74,669,031    41,354,303 
Private Credit   10    109,000,000    40,745,221    31,026,212 
Real Assets   7    92,000,000    27,763,706    16,264,503 
TOTAL - ALTERNATIVE INVESTMENTS   37    377,515,538    143,177,958    88,645,018 

 

 

 

 

Exhibit may not foot due to rounding