UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
| Date of Report (Date of earliest event reported) February 4, 2016 |
| |
| |
| SELECTIVE INSURANCE GROUP, INC. |
| (Exact name of registrant as specified in its charter) |
| |
| |
| New Jersey |
001-33067 |
22-2168890 |
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| |
|
| 40 Wantage Avenue, Branchville, New Jersey |
07890 |
| (Address of principal executive offices) |
(Zip Code) |
| |
|
| Registrant's telephone number, including area code |
(973) 948-3000 |
| |
| Not Applicable |
| (Former name or former address, if changed since last report.) |
| |
|
|
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Section 2 – Financial Information
Item 2.02. Results of Operations and Financial Condition.
On February 4, 2016, Selective Insurance Group, Inc. (the “Company”) issued a
press release announcing results for fourth quarter and year ended December 31, 2015. The press release is attached hereto as Exhibit
99.1.
Section 7 – Regulation FD
Item 7.01. Regulation FD Disclosure.
Attached as Exhibit 99.2 is supplemental financial information about the Company.
The information contained in this report on Form 8-K, including the exhibits attached hereto,
is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of
1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
The Company makes no admission as to the materiality of any information in this report or the exhibits attached hereto.
Section 9 – Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits | |
| | | |
| 99.1 | Press Release of Selective Insurance Group, Inc. dated February 4, 2016 |
| 99.2 | Supplemental Investor Package, Fourth Quarter and Full Year 2015 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
|
SELECTIVE INSURANCE GROUP, INC. |
| |
|
|
| |
|
|
| Date: February 4, 2016 |
|
By: |
/s/ Michael H. Lanza |
| |
|
|
Michael H. Lanza |
| |
|
|
Executive Vice President and General Counsel |
| |
|
|
|
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|
EXHIBIT INDEX
| Exhibit No. |
Description |
| 99.1 |
Press Release of Selective Insurance Group, Inc. dated February 4, 2016 |
| 99.2 |
Supplemental Investor Package, Fourth Quarter and Full Year 2015
|
EXHIBIT 99.1
Selective Reports Fourth Quarter 2015 Net Income per Diluted Share
of $0.78 and Operating Income1 per Diluted Share of $0.81
Achieves Record Underwriting Results with 2015 Statutory Combined
Ratio of 92.4%
In the fourth quarter of 2015:
| · | Net premiums written grew 9.5% |
| · | GAAP combined ratio was 90.5% |
| · | Statutory combined ratio was 93.2% |
| · | After-tax net investment income declined 5% |
| · | Total return on equity was 13.2% and operating return on equity1 was 13.7% |
Branchville, NJ – February 4, 2016 – Selective Insurance Group, Inc. (NASDAQ:
SIGI) today reported its financial results for the fourth quarter ended December 31, 2015. Net income per diluted share was $0.78,
compared to $0.72 in 2014, and operating income1 per diluted share grew 13% to $0.81, compared to $0.72 in 2014.
“Selective finished 2015 with a strong fourth quarter, generating a profitable 93.2%
statutory combined ratio, or 92.6% excluding catastrophe losses,” said Gregory E. Murphy, Chairman and Chief Executive Officer.
“Growth in the quarter was solid, as overall net premiums written increased 9.5%. For the full-year 2015, Selective generated
10% net premiums written growth and a record statutory combined ratio of 92.4%, or 89.4% excluding catastrophe losses, our best
since becoming a listed company.”
Murphy continued, “Our success in 2015 reflects Selective’s
continued ability to outperform our industry and drive sustainable and profitable growth. The three-year profitability improvement
plan we laid out in 2012, achieved in 2014 and exceeded in 2015 is the result of a unique
field model armed with sophisticated underwriting and claims tools, delivering true franchise value to our distribution partners,
and providing superior customer service. These three pillars have positioned Selective with a competitive advantage in our industry.
With the benefit of these unique differentiators, our goal for 2016 and beyond is to continue to outpace industry growth rates
while maintaining profitability margins.”
|
Consolidated Financial Results
$ in millions, except per share data |
Quarter Ended
December 31, |
Change |
Year-to-date
December 31, |
Change |
| 2015 |
2014 |
2015 |
2014 |
| Net
premiums written |
$474.7 |
$433.6 |
9% |
$2,069.9 |
$1,885.3 |
10% |
| Net
premiums earned |
$516.1 |
$469.9 |
10% |
$1,989.9 |
$1,852.6 |
7% |
| Net
investment income earned |
$30.1 |
$32.1 |
(6)% |
$121.3 |
$138.7 |
(13)% |
| Net
realized (losses) gains, pre-tax |
$(2.6) |
$(0.4) |
(568)% |
$13.2 |
$26.6 |
(50)% |
| Total
revenues |
$545.6 |
$503.6 |
8% |
$2,131.9 |
$2,034.9 |
5% |
| Operating
income1 |
$47.1 |
$41.6 |
13% |
$157.3 |
$124.5 |
26% |
| Net
realized (losses) gains, net of tax |
$(1.7) |
$(0.3) |
(568)% |
$8.6 |
$17.3 |
(50)% |
| Net
income |
$45.4 |
$41.4 |
10% |
$165.9 |
$141.8 |
17% |
| Statutory
combined ratio |
93.2% |
93.2% |
- |
92.4% |
95.7% |
(3.3)
pts |
| Catastrophe
losses |
0.6
pts |
(1.5)
pts |
2.1 pts |
3.0
pts |
3.2
pts |
(0.2)
pts |
| Non-catastrophe
property losses |
11.4
pts |
13.4
pts |
(2.0) pts |
13.3
pts |
15.5
pts |
(2.2)
pts |
| (Favorable)
prior year statutory reserve development on casualty lines |
(2.3)
pts |
(1.9)
pts |
(0.4) pts |
(3.4)
pts |
(2.6)
pts |
(0.8)
pts |
| GAAP
combined ratio |
90.5% |
91.8% |
(1.3) pts |
92.5% |
95.8% |
(3.3)
pts |
| Operating
income per diluted share1 |
$0.81 |
$0.72 |
13% |
$2.70 |
$2.17 |
24% |
| Net
income per diluted share |
$0.78 |
$0.72 |
8% |
$2.85 |
$2.47 |
15% |
| Weighted
average diluted shares |
58.4M |
57.5M |
1% |
58.2M |
57.4M |
1% |
| Book
value per share |
|
|
|
$24.37 |
$22.54 |
8% |
1Operating income differs from net income by the exclusion of realized gains and
losses on investments. It is used as an important financial measure by management, analysts, and investors, because the realization
of investment gains and losses on sales in any given period is largely discretionary as to timing. In addition, these investment
gains and losses, as well as other-than-temporary investment impairments that are charged to earnings, could distort the analysis
of trends. Operating income is not intended as a substitute for net income prepared in accordance with U.S. generally accepted
accounting principles (GAAP). A reconciliation of operating income to net income is provided in the Consolidated Financial Results
table. Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance
Commissioners Accounting Practices and Procedures Manual and, therefore, is not reconciled to GAAP.
Note: All amounts included in this release exclude intercompany transactions.
Operating Highlights
Standard Commercial Lines
Standard Commercial Lines premiums, which represent 77% of total net premiums written, were
up 11% compared to the fourth quarter a year ago, driven by a 21% increase in new business to $77 million, renewal pure price increases
of 2.7%, and strong retention of 83%. The quarter’s statutory combined ratio improved by 6.8 points to 89.2%, largely due
to earned rate continuing to outpace expected claims inflation and favorable prior year net casualty reserve development of 5.0
points compared to 2.2 points in the year-ago period.
|
Standard Commercial Lines
$ in millions, statutory results |
Quarter Ended
December 31, |
Change |
Year-to-date
December 31, |
Change |
| 2015 |
2014 |
2015 |
2014 |
| Net premiums
written |
$356.9 |
$321.4 |
11% |
$1,597.0 |
$1,441.0 |
11% |
| Net premiums earned |
$397.2 |
$359.6 |
10% |
$1,529.4 |
$1,415.7 |
8% |
| Statutory loss &
loss expense ratio |
50.2% |
58.0% |
(7.8) pts |
53.6% |
61.3% |
(7.7) pts |
| Statutory underwriting
expense ratio |
38.8% |
37.4% |
1.4 pts |
35.2% |
33.8% |
1.4 pts |
| Statutory dividends
to policyholders ratio |
0.2% |
0.6% |
(0.4) pts |
0.4% |
0.4% |
- |
| Statutory combined ratio |
89.2% |
96.0% |
(6.8) pts |
89.2% |
95.5% |
(6.3) pts |
| GAAP
combined ratio |
86.1% |
94.1% |
(8.0)
pts |
89.2% |
95.7% |
(6.5)
pts |
Standard Personal Lines
Standard Personal Lines premiums, which represent 14% of total net premiums written, decreased
2% in the quarter compared to the fourth quarter of 2014, largely driven by a decrease in new business. Retention improved by three
points to 83% and renewal pure price was 4.2%. The take up rate for our consultative buyer focused product, the Selective EdgeTM,
continued to improve in the fourth quarter.
The statutory combined ratio in the fourth quarter for Standard Personal Lines was 94.7%,
which included 1.9 points of catastrophe losses. There was $2 million or 2.8 points of favorable prior year casualty reserve development
this quarter, compared to favorable prior year net casualty reserve development of $3 million, or 4.1 combined ratio points, in
the fourth quarter of 2014.
|
Standard Personal Lines
$ in millions, statutory results |
Quarter Ended
December 31, |
Change |
Year-to-date
December 31, |
Change |
| 2015 |
2014 |
2015 |
2014 |
| Net premiums
written |
$66.0 |
$67.5 |
(2)% |
$283.9 |
$292.1 |
(3)% |
| Net premiums earned |
$71.5 |
$73.0 |
(2)% |
$288.1 |
$296.7 |
(3)% |
| Statutory loss &
loss expense ratio |
61.2% |
47.6% |
13.6 pts |
69.6% |
66.3% |
3.3 pts |
| Statutory underwriting
expense ratio |
33.5% |
30.6% |
2.9 pts |
30.3% |
28.2% |
2.1 pts |
| Statutory combined ratio |
94.7% |
78.2% |
16.5 pts |
99.9% |
94.5% |
5.4 pts |
| GAAP
combined ratio |
92.1% |
77.5% |
14.6
pts |
99.5% |
94.4% |
5.1
pts |
Excess and Surplus Lines
Our Excess and Surplus lines business, which represents 9% of net premiums written, reported
a 16% increase in net premiums written in the quarter. The statutory combined ratio in the fourth quarter was 125.6%, largely due
to adverse prior year casualty reserve development of $10 million, or 21.1 points. We also recorded a $5 million adjustment to
the 2015 accident year.
|
Excess & Surplus Lines
$ in millions, statutory results |
Quarter Ended
December 31, |
Change |
Year-to-date
December 31, |
Change |
| 2015 |
2014 |
2015 |
2014 |
| Net premiums
written |
$51.8 |
$44.7 |
16% |
$189.0 |
$152.2 |
24% |
| Net premiums earned |
$47.4 |
$37.2 |
27% |
$172.3 |
$140.2 |
23% |
| Statutory loss &
loss expense ratio |
91.6% |
63.7% |
27.9 pts |
74.7% |
64.5% |
10.2 pts |
| Statutory underwriting
expense ratio |
34.0% |
32.9% |
1.1 pts |
33.7% |
34.7% |
(1.0) pts |
| Statutory combined ratio |
125.6% |
96.6% |
29.0 pts |
108.4% |
99.2% |
9.2 pts |
| GAAP
combined ratio |
124.8% |
97.8% |
27.0
pts |
109.8% |
99.7% |
10.1
pts |
Investment Income
After-tax investment income in the fourth quarter was $23 million, down 5% compared to the
same period a year ago. Investment income continued to be negatively impacted by lower returns in the alternative investment portfolio
for the fourth quarter, due to the ongoing decline of oil prices and lower new money yields. The
2015 total after-tax portfolio yield declined to 1.9% from 2.2% a year ago due to alternative investment results and the declining
interest rate environment.
|
Investments
$ in millions, except per share data |
Quarter Ended
December 31, |
Change |
Year-to-date
December 31, |
Change |
| 2015 |
2014 |
2015 |
2014 |
| Invested
assets per dollar of stockholders’ equity |
|
|
|
$3.64 |
$3.77 |
(3)% |
| Net investment income
earned, after-tax |
$23.3 |
$24.5 |
(5)% |
$93.8 |
$104.2 |
(10)% |
| Net investment income
per share |
$0.40 |
$0.43 |
(7)% |
$1.61 |
$1.82 |
(12)% |
| Effective tax rate |
22.6% |
23.6% |
(1.0) pt |
22.7% |
24.9% |
(2.2) pts |
| Average yields: |
|
|
|
|
|
|
| Fixed Income Securities: |
|
|
|
|
|
|
| Pre-tax |
|
|
|
2.7% |
3.0% |
(0.3) pts |
| After-tax |
|
|
|
2.1% |
2.2% |
(0.1)
pts |
| Portfolio: |
|
|
|
|
|
|
| Pre-tax |
|
|
|
2.5% |
3.0% |
(0.5) pts |
| After-tax |
|
|
|
1.9% |
2.2% |
(0.3)
pts |
Balance Sheet
|
Balance Sheet
$ in millions, except per share data |
December
31, |
December
31, |
Change |
| 2015 |
2014 |
| Total assets |
$6,904.4 |
$6,574.9 |
5% |
| Investment portfolio |
$5,089.3 |
$4,806.8 |
6% |
| Notes payable |
$388.2 |
$372.7 |
4% |
| Statutory surplus |
$1,426.3 |
$1,307.8 |
9% |
| Stockholders’
equity |
$1,398.0 |
$1,275.6 |
10% |
| Book
value per share |
$24.37 |
$22.54 |
8% |
The increase in book value per share reflects $2.85 in net income,
partially offset by a $0.62 reduction in unrealized investment gains and $0.57 in shareholders’ dividends.
Selective’s Board of Directors declared a $0.15 per share quarterly
cash dividend on common stock payable March 1, 2016, to stockholders of record as of February 16, 2016.
Guidance
For 2016, Selective expects to generate the following results:
| · | | A statutory combined ratio excluding catastrophes of approximately 91%; |
| · | | Catastrophe losses of 3.5 points; |
| · | | After-tax investment income of approximately $100 million; and |
| · | | Weighted average shares of approximately 58.5 million. |
The supplemental investor package, including financial information
that is not part of this press release, is available on the Investor Relations’ page of Selective’s public website
at www.Selective.com. Selective’s quarterly analyst conference call will be
simulcast at 8:30 a.m. ET, on February 5, 2016 at www.Selective.com. The webcast
will be available for rebroadcast until the close of business on March 4, 2016.
About Selective Insurance Group, Inc.
Selective Insurance Group, Inc. is a holding company for ten property and casualty insurance
companies rated “A” (Excellent) by A.M. Best. Through independent agents, the insurance companies offer standard and
specialty insurance for commercial and personal risks, and flood insurance underwritten by the National Flood Insurance Program.
Selective maintains a website at www.Selective.com.
Forward-Looking Statements
In this press release, Selective and its management discuss and make statements based on
currently available information regarding their intentions, beliefs, current expectations and projections regarding Selective's
future operations and performance.
Certain statements in this report, including information incorporated by reference, are “forward-looking
statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA
provides a safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements.
These statements relate to our intentions, beliefs, projections, estimations or forecasts of future events or our future financial
performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual
results, levels of activity, or performance to be materially different from those expressed or implied by the forward-looking statements.
In some cases, you can identify forward-looking statements by use of words such as “may,” “will,” “could,”
“would,” “should,” “expect,” “plan,” “anticipate,” “target,”
“project,” “intend,” “believe,” “estimate,” “predict,” “potential,”
“pro forma,” “seek,” “likely” or “continue” or other comparable terminology. These
statements are only predictions, and we can give no assurance that such expectations will prove to be correct. We undertake no
obligation, other than as may be required under the federal securities laws, to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Factors that could cause our actual results to differ materially from those projected, forecasted
or estimated by us in forward-looking statements, include, but are not limited to:
| · | difficult conditions in global capital markets and the economy; |
| · | deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses
and fluctuations in interest rates; |
| · | ratings downgrades could affect investment values and, therefore, statutory surplus; |
| · | the adequacy of our loss reserves and loss expense reserves; |
| · | the frequency and severity of natural and man-made catastrophic events, including, but not limited to, hurricanes, tornadoes,
windstorms, earthquakes, hail, terrorism, explosions, severe winter weather, floods and fires; |
| · | adverse market, governmental, regulatory, legal or judicial conditions or actions; |
| · | the concentration of our business in the Eastern Region; |
| · | the cost and availability of reinsurance; |
| · | our ability to collect on reinsurance and the solvency of our reinsurers; |
| · | uncertainties related to insurance premium rate increases and business retention; |
| · | changes in insurance regulations that impact our ability to write and/or cease writing insurance policies in one or more states; |
| · | recent federal financial regulatory reform provisions that could pose certain risks to our operations; |
| · | our ability to maintain favorable ratings from rating agencies, including A.M. Best, Standard & Poor’s, Moody’s
and Fitch; |
| · | our entry into new markets and businesses; and |
| · | other risks and uncertainties we identify in filings with the United States Securities and Exchange Commission, including,
but not limited to, our Annual Report on Form 10-K and other periodic reports. |
These risk factors may not be exhaustive. We operate in a continually changing business environment,
and new risk factors emerge from time-to-time. We can neither predict such new risk factors nor can we assess the impact, if any,
of such new risk factors on our businesses or the extent to which any factor or combination of factors may cause actual results
to differ materially from those expressed or implied in any forward-looking statements in this report. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed in this report might not occur.
Selective’s SEC filings can be accessed through the Investor Relations’ section
of Selective’s website, www.Selective.com, or through the SEC’s EDGAR Database at www.sec.gov (Selective
EDGAR CIK No. 0000230557).
| Investor Contact: |
Media Contact: |
| Jennifer DiBerardino |
Jamie Beal |
| 973-948-1364 |
973-948-1234 |
| jennifer.diberardino@Selective.com |
jamie.beal@Selective.com |
| |
|
| Selective Insurance Group, Inc. |
|
| 40 Wantage Avenue |
|
| Branchville, New Jersey 07890 |
|
| www.Selective.com |
|
5
EXHIBIT 99.2
|
Supplemental Investor Package
Fourth Quarter and
Full Year 2015
Investor Contact:
Jennifer DiBerardino
Senior Vice President, Investor Relations
and Treasurer
Tel: 973-948-1364
jennifer.diberardino@selective.com
|
Selective Insurance
Group, Inc. & Consolidated Subsidiaries
Selected Balance Sheet Data
(unaudited)
| | |
December 31, | |
December 31, |
| ($ in thousands, except per share data) | |
2015 | |
2014 |
| | |
| |
| |
Unrecognized/ | |
| |
| |
Unrecognized/ |
| | |
Balance | |
Market | |
Unrealized | |
Balance | |
Market | |
Unrealized |
| | |
Sheet | |
Value | |
Gain | |
Sheet | |
Value | |
Gain |
| Invested Assets: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Corporate bonds 1 | |
$ | 2,955,001 | | |
| 2,957,427 | | |
| 8,276 | | |
$ | 2,693,324 | | |
| 2,697,332 | | |
| 47,437 | |
| Government and Municipal bonds | |
| 1,654,556 | | |
| 1,660,320 | | |
| 55,901 | | |
| 1,690,935 | | |
| 1,702,751 | | |
| 59,680 | |
| Total fixed income securities | |
| 4,609,557 | | |
| 4,617,747 | | |
| 64,177 | | |
| 4,384,259 | | |
| 4,400,083 | | |
| 107,117 | |
| Equities | |
| 207,051 | | |
| 207,051 | | |
| 13,235 | | |
| 191,400 | | |
| 191,400 | | |
| 32,389 | |
| Short-term investments | |
| 194,819 | | |
| 194,819 | | |
| - | | |
| 131,972 | | |
| 131,972 | | |
| - | |
| Other investments | |
| 77,842 | | |
| 77,842 | | |
| - | | |
| 99,203 | | |
| 99,203 | | |
| - | |
| Total invested assets | |
$ | 5,089,269 | | |
| 5,097,459 | | |
| 77,412 | | |
$ | 4,806,834 | | |
| 4,822,658 | | |
| 139,506 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Invested assets per $ of stockholders' equity | |
| 3.64 | | |
| | | |
| | | |
| 3.77 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total assets | |
| 6,904,433 | | |
| | | |
| | | |
| 6,574,942 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Reserve for loss and loss expenses | |
| 3,517,728 | | |
| | | |
| | | |
| 3,477,870 | | |
| | | |
| | |
| Unearned premium reserve | |
| 1,169,710 | | |
| | | |
| | | |
| 1,095,819 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total liabilities | |
| 5,506,392 | | |
| | | |
| | | |
| 5,299,356 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Stockholders' equity | |
| 1,398,041 | | |
| | | |
| | | |
| 1,275,586 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total debt to capitalization ratio | |
| 21.7 | % | |
| | | |
| | | |
| 22.6 | % | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Book value per share | |
| 24.37 | | |
| | | |
| | | |
| 22.54 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Book value per share excluding | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| unrealized gain or loss on fixed income portfolio | |
| 23.74 | | |
| | | |
| | | |
| 21.49 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| NPW per insurance segment employee | |
| 979 | | |
| | | |
| | | |
| 908 | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Statutory premiums to surplus ratio | |
| 1.5 | x | |
| | | |
| | | |
| 1.4 | x | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Statutory surplus | |
| 1,426,320 | | |
| | | |
| | | |
| 1,307,842 | | |
| | | |
| | |
1 Includes
mortgage-backed and asset-backed securities.
Selective Insurance Group, Inc. & Consolidated Subsidiaries
Selected Income Statement Data
(unaudited)
| | |
Quarter Ended December 31, | |
Year-to-Date December 31, |
($ in thousands, except per share data)
| |
2015 | |
2014 | |
2015 | |
2014 |
| | |
| |
Per diluted share | |
| |
Per diluted share | |
| |
Per diluted share | |
| |
Per diluted share |
| Consolidated | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
$ | 545,530 | | |
| | | |
$ | 503,583 | | |
| | | |
$ | 2,131,852 | | |
| | | |
$ | 2,034,861 | | |
| | |
| Operating income | |
| 47,079 | | |
| 0.81 | | |
| 41,603 | | |
| 0.72 | | |
| 157,300 | | |
| 2.70 | | |
| 124,538 | | |
| 2.17 | |
| Net realized (losses) gains, after tax | |
| (1,690 | ) | |
| (0.03 | ) | |
| (253 | ) | |
| (0.00 | ) | |
| 8,561 | | |
| 0.15 | | |
| 17,289 | | |
| 0.30 | |
| Net income | |
| 45,389 | | |
| 0.78 | | |
| 41,350 | | |
| 0.72 | | |
| 165,861 | | |
| 2.85 | | |
| 141,827 | | |
| 2.47 | |
| Operating return on equity | |
| 13.7 | % | |
| | | |
| 13.1 | % | |
| | | |
| 11.8 | % | |
| | | |
| 10.3 | % | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Insurance Operations | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross premiums written | |
| 558,607 | | |
| | | |
| 512,046 | | |
| | | |
| 2,427,367 | | |
| | | |
| 2,254,576 | | |
| | |
| Net premiums written | |
| 474,658 | | |
| | | |
| 433,586 | | |
| | | |
| 2,069,904 | | |
| | | |
| 1,885,280 | | |
| | |
| Net premiums earned | |
| 516,087 | | |
| | | |
| 469,850 | | |
| | | |
| 1,989,909 | | |
| | | |
| 1,852,609 | | |
| | |
| Underwriting gain |
- before tax | |
| 49,053 | | |
| | | |
| 38,637 | | |
| | | |
| 149,029 | | |
| | | |
| 78,143 | | |
| | |
| |
- after tax | |
| 31,885 | | |
| 0.55 | | |
| 25,114 | | |
| 0.44 | | |
| 96,869 | | |
| 1.67 | | |
| 50,793 | | |
| 0.89 | |
| GAAP combined ratio | |
| 90.5 | % | |
| | | |
| 91.8 | % | |
| | | |
| 92.5 | % | |
| | | |
| 95.8 | % | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Standard Commercial Lines | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net premiums earned | |
| 397,162 | | |
| | | |
| 359,621 | | |
| | | |
| 1,529,442 | | |
| | | |
| 1,415,712 | | |
| | |
| GAAP combined ratio | |
| 86.1 | % | |
| | | |
| 94.1 | % | |
| | | |
| 89.2 | % | |
| | | |
| 95.7 | % | |
| | |
| Standard Personal Lines | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net premiums earned | |
| 71,496 | | |
| | | |
| 73,008 | | |
| | | |
| 288,134 | | |
| | | |
| 296,747 | | |
| | |
| GAAP combined ratio | |
| 92.1 | % | |
| | | |
| 77.5 | % | |
| | | |
| 99.5 | % | |
| | | |
| 94.4 | % | |
| | |
| Excess and Surplus Lines | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net premiums earned | |
| 47,429 | | |
| | | |
| 37,221 | | |
| | | |
| 172,333 | | |
| | | |
| 140,150 | | |
| | |
| GAAP combined ratio | |
| 124.8 | % | |
| | | |
| 97.8 | % | |
| | | |
| 109.8 | % | |
| | | |
| 99.7 | % | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Investments | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net investment income |
- before tax | |
| 30,108 | | |
| | | |
| 32,108 | | |
| | | |
| 121,316 | | |
| | | |
| 138,708 | | |
| | |
| |
- after tax | |
| 23,294 | | |
| 0.40 | | |
| 24,535 | | |
| 0.43 | | |
| 93,836 | | |
| 1.61 | | |
| 104,207 | | |
| 1.82 | |
| Effective tax rate | |
| 22.6 | % | |
| | | |
| 23.6 | % | |
| | | |
| 22.7 | % | |
| | | |
| 24.9 | % | |
| | |
| Annualized after-tax yield on investment portfolio | |
| | | |
| | | |
| | | |
| | | |
| 1.9 | % | |
| | | |
| 2.2 | % | |
| | |
| Annualized after-tax, after-interest expense yield | |
| | | |
| | | |
| | | |
| | | |
| 1.6 | % | |
| | | |
| 1.9 | % | |
| | |
| Invested assets per $ of stockholders' equity | |
| | | |
| | | |
| | | |
| | | |
| 3.64 | | |
| | | |
| 3.77 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Other expenses (net of other income) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest expense |
- before tax | |
| (5,603 | ) | |
| | | |
| (5,668 | ) | |
| | | |
| (22,428 | ) | |
| | | |
| (23,063 | ) | |
| | |
| |
- after tax | |
| (3,641 | ) | |
| (0.06 | ) | |
| (3,684 | ) | |
| (0.06 | ) | |
| (14,578 | ) | |
| (0.25 | ) | |
| (14,991 | ) | |
| (0.26 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Other expense - after tax | |
$ | (4,459 | ) | |
| (0.08 | ) | |
$ | (4,362 | ) | |
| (0.09 | ) | |
$ | (18,827 | ) | |
| (0.33 | ) | |
$ | (15,471 | ) | |
| (0.28 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted weighted avg shares outstanding | |
| 58,387 | | |
| | | |
| 57,539 | | |
| | | |
| 58,156 | | |
| | | |
| 57,351 | | |
| | |
Selective Insurance Group,
Inc. & Consolidated Subsidiaries
GAAP Insurance Operations Results
(unaudited)
| Fourth Quarter | |
| |
| |
| |
| |
| |
| |
| |
|
| ($ in thousands) | |
Quarter Ended December 31, 2015 | |
Quarter Ended December 31, 2014 |
| | |
| |
| |
| |
| |
| |
| |
| |
|
| | |
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 | |
| 356,855 | | |
| 65,989 | | |
| 51,814 | | |
| 474,658 | |
| 321,399 | | |
| 67,494 | | |
| 44,693 | | |
| 433,586 |
| Net Premiums Earned | |
| 397,162 | | |
| 71,496 | | |
| 47,429 | | |
| 516,087 | |
| 359,621 | | |
| 73,008 | | |
| 37,221 | | |
| 469,850 |
| Loss and Loss Expense Incurred | |
| 199,716 | | |
| 43,747 | | |
| 43,357 | | |
| 286,820 | |
| 209,495 | | |
| 35,155 | | |
| 23,578 | | |
| 268,228 |
| Net Underwriting Expenses Incurred | |
| 141,325 | | |
| 22,118 | | |
| 15,842 | | |
| 179,285 | |
| 126,510 | | |
| 21,412 | | |
| 12,824 | | |
| 160,746 |
| Dividends to Policyholders | |
| 929 | | |
| - | | |
| - | | |
| 929 | |
| 2,239 | | |
| - | | |
| - | | |
| 2,239 |
| GAAP Underwriting Gain (Loss) | |
| 55,192 | | |
| 5,631 | | |
| (11,770 | ) | |
| 49,053 | |
| 21,377 | | |
| 16,441 | | |
| 819 | | |
| 38,637 |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| GAAP Ratios | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Loss and Loss Expense Ratio | |
| 50.3 | % | |
| 61.2 | % | |
| 91.4 | % | |
| 55.6% | |
| 58.3 | % | |
| 48.2 | % | |
| 63.3 | % | |
| 57.1% |
| Underwriting Expense Ratio | |
| 35.6 | % | |
| 30.9 | % | |
| 33.4 | % | |
| 34.7% | |
| 35.2 | % | |
| 29.3 | % | |
| 34.5 | % | |
| 34.2% |
| Dividends to Policyholders Ratio | |
| 0.2 | % | |
| 0.0 | % | |
| 0.0 | % | |
| 0.2% | |
| 0.6 | % | |
| 0.0 | % | |
| 0.0 | % | |
| 0.5% |
| Combined Ratio | |
| 86.1 | % | |
| 92.1 | % | |
| 124.8 | % | |
| 90.5% | |
| 94.1 | % | |
| 77.5 | % | |
| 97.8 | % | |
| 91.8% |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| |
| |
| |
| |
| |
| |
| |
|
| | |
| |
| |
| |
| |
| |
| |
| |
|
| Year-to-Date | |
| |
| |
| |
| |
| |
| |
| |
|
| ($ in thousands) | |
Year-to-Date December 31, 2015 | |
Year-to-Date December 31, 2014 |
| | |
| |
| |
| |
| |
| |
| |
| |
|
| | |
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 | |
| 1,596,965 | | |
| 283,926 | | |
| 189,013 | | |
| 2,069,904 | |
| 1,441,047 | | |
| 292,061 | | |
| 152,172 | | |
| 1,885,280 |
| Net Premiums Earned | |
| 1,529,442 | | |
| 288,134 | | |
| 172,333 | | |
| 1,989,909 | |
| 1,415,712 | | |
| 296,747 | | |
| 140,150 | | |
| 1,852,609 |
| Loss and Loss Expense Incurred | |
| 819,573 | | |
| 200,237 | | |
| 128,731 | | |
| 1,148,541 | |
| 870,018 | | |
| 197,182 | | |
| 90,301 | | |
| 1,157,501 |
| Net Underwriting Expenses Incurred | |
| 539,154 | | |
| 86,561 | | |
| 60,405 | | |
| 686,120 | |
| 478,291 | | |
| 83,029 | | |
| 49,463 | | |
| 610,783 |
| Dividends to Policyholders | |
| 6,219 | | |
| - | | |
| - | | |
| 6,219 | |
| 6,182 | | |
| - | | |
| - | | |
| 6,182 |
| GAAP Underwriting Gain (Loss) | |
| 164,496 | | |
| 1,336 | | |
| (16,803 | ) | |
| 149,029 | |
| 61,221 | | |
| 16,536 | | |
| 386 | | |
| 78,143 |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| GAAP Ratios | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Loss and Loss Expense Ratio | |
| 53.6 | % | |
| 69.5 | % | |
| 74.7 | % | |
| 57.7% | |
| 61.5 | % | |
| 66.4 | % | |
| 64.4 | % | |
| 62.5% |
| Underwriting Expense Ratio | |
| 35.2 | % | |
| 30.0 | % | |
| 35.1 | % | |
| 34.5% | |
| 33.8 | % | |
| 28.0 | % | |
| 35.3 | % | |
| 33.0% |
| Dividends to Policyholders Ratio | |
| 0.4 | % | |
| 0.0 | % | |
| 0.0 | % | |
| 0.3% | |
| 0.4 | % | |
| 0.0 | % | |
| 0.0 | % | |
| 0.3% |
| Combined Ratio | |
| 89.2 | % | |
| 99.5 | % | |
| 109.8 | % | |
| 92.5% | |
| 95.7 | % | |
| 94.4 | % | |
| 99.7 | % | |
| 95.8% |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Selective Insurance Group,
Inc. and Consolidated Subsidiaries
GAAP Investment Income
December 2015 (unaudited)
| | |
Quarter Ended | |
% | |
Year-to-Date | |
% |
| | |
December | |
December | |
Increase | |
December | |
December | |
Increase |
| ($ in thousands, except per share data) | |
2015 | |
2014 | |
(Decrease) | |
2015 | |
2014 | |
(Decrease) |
| Investment Income: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Fixed Income Securities | |
$ | 31,003 | | |
| 30,974 | | |
| 0 | | |
$ | 123,230 | | |
| 126,489 | | |
| (3 | ) |
| Short-term | |
| 40 | | |
| 18 | | |
| 122 | | |
| 112 | | |
| 66 | | |
| 70 | |
| Other Investments | |
| (1,109 | ) | |
| 903 | | |
| (223 | ) | |
| (1,890 | ) | |
| 13,580 | | |
| (114 | ) |
| Dividends | |
| 2,615 | | |
| 2,355 | | |
| 11 | | |
| 9,161 | | |
| 7,449 | | |
| 23 | |
| | |
| 32,549 | | |
| 34,250 | | |
| (5 | ) | |
| 130,613 | | |
| 147,584 | | |
| (11 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Investment Expense | |
| 2,441 | | |
| 2,142 | | |
| 14 | | |
| 9,297 | | |
| 8,876 | | |
| 5 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net Investment Income Before Tax | |
| 30,108 | | |
| 32,108 | | |
| (6 | ) | |
| 121,316 | | |
| 138,708 | | |
| (13 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Tax | |
| 6,814 | | |
| 7,573 | | |
| (10 | ) | |
| 27,480 | | |
| 34,501 | | |
| (20 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net Investment Income After Tax | |
$ | 23,294 | | |
| 24,535 | | |
| (5 | ) | |
$ | 93,836 | | |
| 104,207 | | |
| (10 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net Investment Income per Share | |
$ | 0.40 | | |
| 0.43 | | |
| (7 | ) | |
$ | 1.61 | | |
| 1.82 | | |
| (12 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Effective Tax Rate | |
| 22.6 | % | |
| 23.6 | % | |
| | | |
| 22.7 | % | |
| 24.9 | % | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Average Yields : | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Fixed Income Securities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Pre Tax | |
| | | |
| | | |
| | | |
| 2.74 | % | |
| 2.98 | % | |
| | |
| After Tax | |
| | | |
| | | |
| | | |
| 2.07 | % | |
| 2.24 | % | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Portfolio: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Pre Tax | |
| | | |
| | | |
| | | |
| 2.45 | % | |
| 2.95 | % | |
| | |
| After Tax | |
| | | |
| | | |
| | | |
| 1.90 | % | |
| 2.22 | % | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Quarter Ended | |
Year-to-Date |
| | |
December | |
December | |
December | |
December |
| Net Realized Gains (Losses) | |
2015 | |
2014 | |
2015 | |
2014 |
| Fixed Income Securities | |
| 1,431 | | |
| 82 | | |
| 2,018 | | |
| 1,528 | |
| Equity Securities | |
| (4,193 | ) | |
| 109 | | |
| 11,645 | | |
| 25,650 | |
| Other Investments | |
| 162 | | |
| (580 | ) | |
| (492 | ) | |
| (579 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Total | |
| (2,600 | ) | |
| (389 | ) | |
| 13,171 | | |
| 26,599 | |
| Net of Tax | |
| (1,690 | ) | |
| (253 | ) | |
| 8,561 | | |
| 17,289 | |
As of December 31, 2015 year-to-date new money rates for fixed income securities were 2.4% on a pre-tax basis and 1.7% on an after-tax basis.
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
2015 Statutory Results by Line of Business
Quarter Ended December
2015 (unaudited)
|
|
Net
Premiums |
|
Percent |
|
Net
Premiums |
|
Percent |
|
Loss |
|
LAE |
|
Underwriting
Expense |
|
Dividends to
Policyholders |
|
Combined Ratio |
|
Combined Ratio |
|
Underwriting |
| ($ in thousands) | |
Written | |
Change | |
Earned | |
Change | |
Ratio | |
Ratio | |
Ratio | |
Ratio | |
2015 | |
2014 | |
Gain/(Loss) |
| Standard Personal Lines: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Homeowners | |
$ | 30,696 | |
| (3.4 | )% | |
$ | 33,261 | |
| (0.5 | )% | |
| 32.2 | % | |
| 7.9 | % | |
| 38.5 | % | |
| 0.0 | % | |
| 78.6 | % | |
| 55.3 | % | |
$ | 8,112 |
| Auto | |
| 33,516 | |
| (2.0 | )% | |
| 36,410 | |
| (2.6 | )% | |
| 75.0 | % | |
| 5.2 | % | |
| 35.9 | % | |
| 0.0 | % | |
| 116.1 | % | |
| 104.8 | % | |
| (4,817) |
| Other (including flood) | |
| 1,777 | |
| 17.7 | % | |
| 1,826 | |
| (16.7 | )% | |
| 61.5 | % | |
| 4.9 | % | |
| (98.2 | )% | |
| 0.0 | % | |
| (31.8 | )% | |
| (65.6 | )% | |
| 2,359 |
| Total | |
$ | 65,989 | |
| (2.2 | )% | |
$ | 71,496 | |
| (2.1 | )% | |
| 54.8 | % | |
| 6.4 | % | |
| 33.5 | % | |
| 0.0 | % | |
| 94.7 | % | |
| 78.2 | % | |
$ | 5,654 |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Standard Commercial Lines: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Commercial property | |
$ | 63,423 | |
| 14.4 | % | |
$ | 69,323 | |
| 11.7 | % | |
| 23.1 | % | |
| 5.5 | % | |
| 42.4 | % | |
| (0.2 | )% | |
| 70.8 | % | |
| 78.1 | % | |
$ | 22,740 |
| Workers compensation | |
| 65,964 | |
| 6.0 | % | |
| 76,084 | |
| 9.6 | % | |
| 39.6 | % | |
| 17.0 | % | |
| 31.8 | % | |
| 1.7 | % | |
| 90.1 | % | |
| 112.1 | % | |
| 10,771 |
| General liability | |
| 110,051 | |
| 12.1 | % | |
| 125,861 | |
| 10.8 | % | |
| 41.9 | % | |
| 7.0 | % | |
| 40.0 | % | |
| (0.1 | )% | |
| 88.8 | % | |
| 90.7 | % | |
| 20,458 |
| Auto | |
| 84,517 | |
| 13.0 | % | |
| 93,138 | |
| 10.8 | % | |
| 55.9 | % | |
| 11.5 | % | |
| 36.4 | % | |
| (0.1 | )% | |
| 103.7 | % | |
| 104.4 | % | |
| (309) |
| Businessowners' policies | |
| 24,480 | |
| 5.3 | % | |
| 23,825 | |
| 8.3 | % | |
| 41.9 | % | |
| 4.0 | % | |
| 40.8 | % | |
| 0.0 | % | |
| 86.7 | % | |
| 98.2 | % | |
| 2,899 |
| Bonds | |
| 4,788 | |
| 9.1 | % | |
| 5,213 | |
| 4.1 | % | |
| 16.3 | % | |
| 8.6 | % | |
| 72.6 | % | |
| 0.0 | % | |
| 97.5 | % | |
| 92.8 | % | |
| 438 |
| Other | |
| 3,633 | |
| 15.4 | % | |
| 3,718 | |
| 10.1 | % | |
| 1.2 | % | |
| 0.2 | % | |
| 60.2 | % | |
| 0.0 | % | |
| 61.6 | % | |
| 58.8 | % | |
| 1,480 |
| Total | |
$ | 356,855 | |
| 11.0 | % | |
$ | 397,162 | |
| 10.4 | % | |
| 40.7 | % | |
| 9.5 | % | |
| 38.8 | % | |
| 0.2 | % | |
| 89.2 | % | |
| 96.0 | % | |
$ | 58,477 |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| E&S | |
$ | 51,814 | |
| 15.9 | % | |
$ | 47,429 | |
| 27.4 | % | |
| 70.4 | % | |
| 21.2 | % | |
| 34.0 | % | |
| 0.0 | % | |
| 125.6 | % | |
| 96.6 | % | |
$ | (13,635) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Insurance Operations | |
$ | 474,658 | |
| 9.5 | % | |
$ | 516,087 | |
| 9.8 | % | |
| 45.4 | % | |
| 10.2 | % | |
| 37.4 | % | |
| 0.2 | % | |
| 93.2 | % | |
| 93.2 | % | |
$ | 50,497 |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Note: Some amounts may not foot due to rounding. | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| 2015 | | |
| 2014 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| Losses Paid | | |
$ | 234,802 | | |
$ | 210,724 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| LAE Paid | | |
| 53,288 | | |
| 48,313 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| Total Paid | | |
$ | 288,090 | | |
$ | 259,037 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
2015 Statutory Results by Line of Business
Year-to-date December 2015 (unaudited)
| | |
Net
Premiums | |
Percent | |
Net
Premiums | |
Percent | |
Loss | |
LAE | |
Underwriting
Expense | |
Dividends to
Policyholders | |
Combined Ratio | |
Combined Ratio | |
Underwriting |
| ($ in thousands) | |
Written | |
Change | |
Earned | |
Change | |
Ratio | |
Ratio | |
Ratio | |
Ratio | |
2015 | |
2014 | |
Gain/(Loss) |
| Standard Personal Lines: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Homeowners | |
$ | 132,533 | |
| (2.4 | )% | |
$ | 134,382 | |
| 0.1 | % | |
| 56.9 | % | |
| 8.1 | % | |
| 35.6 | % | |
| 0.0 | % | |
| 100.6 | % | |
| 96.9 | % | |
$ | (179) |
| Auto | |
| 144,641 | |
| (3.0 | )% | |
| 146,784 | |
| (3.0 | )% | |
| 64.9 | % | |
| 9.2 | % | |
| 34.0 | % | |
| 0.0 | % | |
| 108.1 | % | |
| 101.5 | % | |
| (11,107) |
| Other (including flood) | |
| 6,752 | |
| (5.5 | )% | |
| 6,968 | |
| (37.5 | )% | |
| 65.2 | % | |
| (0.8 | )% | |
| (152.7 | )% | |
| 0.0 | % | |
| (88.3 | )% | |
| (94.6 | )% | |
| 12,796 |
| Total | |
$ | 283,926 | |
| (2.8 | )% | |
$ | 288,134 | |
| (2.9 | )% | |
| 61.2 | % | |
| 8.4 | % | |
| 30.3 | % | |
| 0.0 | % | |
| 99.9 | % | |
| 94.5 | % | |
$ | 1,510 |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Standard Commercial Lines: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Commercial property | |
$ | 282,731 | |
| 11.5 | % | |
$ | 269,022 | |
| 9.9 | % | |
| 38.7 | % | |
| 5.3 | % | |
| 38.6 | % | |
| 0.0 | % | |
| 82.6 | % | |
| 97.3 | % | |
$ | 41,608 |
| Workers compensation | |
| 299,686 | |
| 11.4 | % | |
| 290,075 | |
| 5.6 | % | |
| 41.4 | % | |
| 15.9 | % | |
| 28.8 | % | |
| 2.1 | % | |
| 88.2 | % | |
| 110.1 | % | |
| 31,558 |
| General liability | |
| 505,891 | |
| 11.5 | % | |
| 483,291 | |
| 8.6 | % | |
| 32.8 | % | |
| 13.4 | % | |
| 35.9 | % | |
| 0.0 | % | |
| 82.1 | % | |
| 83.9 | % | |
| 78,536 |
| Auto | |
| 376,064 | |
| 10.0 | % | |
| 358,909 | |
| 7.7 | % | |
| 58.9 | % | |
| 9.8 | % | |
| 33.2 | % | |
| 0.0 | % | |
| 101.9 | % | |
| 96.2 | % | |
| (12,683) |
| Businessowners' policies | |
| 96,257 | |
| 7.9 | % | |
| 93,428 | |
| 8.9 | % | |
| 53.8 | % | |
| 10.1 | % | |
| 39.4 | % | |
| 0.0 | % | |
| 103.3 | % | |
| 108.7 | % | |
| (4,172) |
| Bonds | |
| 21,192 | |
| 6.3 | % | |
| 20,350 | |
| 5.5 | % | |
| 16.4 | % | |
| 7.4 | % | |
| 66.0 | % | |
| 0.0 | % | |
| 89.8 | % | |
| 84.9 | % | |
| 1,513 |
| Other | |
| 15,144 | |
| 11.4 | % | |
| 14,367 | |
| 10.4 | % | |
| 0.4 | % | |
| 0.2 | % | |
| 56.8 | % | |
| 0.0 | % | |
| 57.4 | % | |
| 51.9 | % | |
| 5,684 |
| Total | |
$ | 1,596,965 | |
| 10.8 | % | |
$ | 1,529,442 | |
| 8.0 | % | |
| 42.4 | % | |
| 11.2 | % | |
| 35.2 | % | |
| 0.4 | % | |
| 89.2 | % | |
| 95.5 | % | |
$ | 142,044 |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| E&S | |
$ | 189,013 | |
| 24.2 | % | |
$ | 172,333 | |
| 23.0 | % | |
| 55.3 | % | |
| 19.4 | % | |
| 33.7 | % | |
| 0.0 | % | |
| 108.4 | % | |
| 99.2 | % | |
$ | (20,066) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Insurance Operations | |
$ | 2,069,904 | |
| 9.8 | % | |
$ | 1,989,909 | |
| 7.4 | % | |
| 46.2 | % | |
| 11.5 | % | |
| 34.4 | % | |
| 0.3 | % | |
| 92.4 | % | |
| 95.7 | % | |
$ | 123,487 |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Note: Some amounts may not foot due to rounding. | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| 2015 | | |
| 2014 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| Losses Paid | | |
$ | 891,485 | | |
$ | 873,159 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| LAE Paid | | |
| 197,433 | | |
| 187,491 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| Total Paid | | |
$ | 1,088,918 | | |
$ | 1,060,650 | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
2015 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 | |
December 31, 2015 | |
December 31, 2014 | |
December 31, 2015 | |
December 31, 2014 |
| ($ 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 | |
$ | 1,354 | | |
| 1.9 | % | |
$ | (3,334 | ) | |
| (4.6 | )% | |
$ | 21,735 | | |
| 7.5 | % | |
$ | 19,284 | | |
| 6.5 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Standard Commercial Lines | |
$ | 1,072 | | |
| 0.3 | % | |
$ | (4,065 | ) | |
| (1.1 | )% | |
$ | 34,089 | | |
| 2.2 | % | |
$ | 37,881 | | |
| 2.7 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| E&S | |
$ | 479 | | |
| 1.0 | % | |
$ | 420 | | |
| 1.1 | % | |
$ | 3,231 | | |
| 1.9 | % | |
$ | 2,805 | | |
| 2.0 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Insurance Operations | |
$ | 2,906 | | |
| 0.6 | % | |
$ | (6,979 | ) | |
| (1.5 | )% | |
$ | 59,055 | | |
| 3.0 | % | |
$ | 59,971 | | |
| 3.2 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Prior Year Casualty Reserve Development | |
Quarter Ended | |
Year-to-Date |
| (Favorable) / Unfavorable | |
December 31, 2015 | |
December 31, 2014 | |
December 31, 2015 | |
December 31, 2014 |
| ($ 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 | |
$ | (2,000 | ) | |
| (2.8 | )% | |
$ | (3,000 | ) | |
| (4.1 | )% | |
$ | (2,000 | ) | |
| (0.7 | )% | |
$ | (9,000 | ) | |
| (3.0 | )% |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Standard Commercial Lines | |
$ | (20,000 | ) | |
| (5.0 | )% | |
$ | (8,000 | ) | |
| (2.2 | )% | |
$ | (81,000 | ) | |
| (5.3 | )% | |
$ | (45,500 | ) | |
| (3.2 | )% |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| E&S | |
$ | 10,000 | | |
| 21.1 | % | |
$ | 2,000 | | |
| 5.4 | % | |
$ | 16,000 | | |
| 9.3 | % | |
$ | 6,000 | | |
| 4.3 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total Insurance Operations | |
$ | (12,000 | ) | |
| (2.3 | )% | |
$ | (9,000 | ) | |
| (1.9 | )% | |
$ | (67,000 | ) | |
| (3.4 | )% | |
$ | (48,500 | ) | |
| (2.6 | )% |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Note: Some amounts may not foot due to rounding.
| Selective Insurance Group, Inc. & Consolidated Subsidiaries |
|
|
|
|
| Consolidated Balance Sheets |
|
|
|
|
| |
|
|
|
|
| December 31, |
|
Unaudited |
|
|
| ($ in thousands, except share amounts) |
|
2015 |
|
2014 |
| ASSETS |
|
|
|
|
| Investments: |
|
|
|
|
| Fixed income securities, held-to-maturity –
at carrying value (fair value: $209,544 – 2015; $333,961 – 2014) |
|
$ |
201,354 |
|
|
318,137 |
|
| Fixed income securities, available-for-sale – at fair
value (amortized cost: $4,352,514 – 2015; $3,975,786 – 2014) |
|
4,408,203 |
|
|
4,066,122 |
|
| Equity securities, available-for-sale – at fair value
(cost: $193,816 – 2015; $159,011 – 2014) |
|
207,051 |
|
|
191,400 |
|
| Short-term investments (at cost which approximates fair value) |
|
194,819 |
|
|
131,972 |
|
| Other investments |
|
77,842 |
|
|
99,203 |
|
| Total investments |
|
5,089,269 |
|
|
4,806,834 |
|
| Cash |
|
898 |
|
|
23,959 |
|
| Interest and dividends due or accrued |
|
38,501 |
|
|
38,901 |
|
| Premiums receivable, net of allowance for uncollectible
accounts of: $4,422 – 2015; $4,137 – 2014 |
|
615,164 |
|
|
558,778 |
|
| Reinsurance recoverable, net |
|
561,968 |
|
|
581,548 |
|
| Prepaid reinsurance premiums |
|
140,889 |
|
|
146,993 |
|
| Deferred federal income tax |
|
92,696 |
|
|
98,449 |
|
| Property and equipment – at cost, net of accumulated
depreciation and amortization of: $188,548 – 2015; $172,183 – 2014 |
|
65,701 |
|
|
59,416 |
|
| Deferred policy acquisition costs |
|
213,159 |
|
|
185,608 |
|
| Goodwill |
|
7,849 |
|
|
7,849 |
|
| Other assets |
|
78,339 |
|
|
66,607 |
|
| Total assets |
|
$ |
6,904,433 |
|
|
6,574,942 |
|
| |
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| Liabilities: |
|
|
|
|
| Reserve for losses and loss expenses |
|
$ |
3,517,728 |
|
|
3,477,870 |
|
| Unearned premiums |
|
1,169,710 |
|
|
1,095,819 |
|
| Notes payable |
|
388,192 |
|
|
372,689 |
|
| Current federal income tax |
|
7,442 |
|
|
3,921 |
|
| Accrued salaries and benefits |
|
167,336 |
|
|
158,382 |
|
| Other liabilities |
|
255,984 |
|
|
190,675 |
|
| Total liabilities |
|
$ |
5,506,392 |
|
|
5,299,356 |
|
| |
|
|
|
|
| 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: 100,861,372 – 2015; 99,947,933 – 2014 |
|
201,723 |
|
|
199,896 |
|
| Additional paid-in capital |
|
326,656 |
|
|
305,385 |
|
| Retained earnings |
|
1,446,192 |
|
|
1,313,440 |
|
| Accumulated other comprehensive (loss) income |
|
(9,425 |
) |
|
19,788 |
|
| Treasury stock – at cost (shares: 43,500,642 – 2015; 43,353,181 – 2014) |
|
(567,105 |
) |
|
(562,923 |
) |
| Total stockholders’ equity |
|
1,398,041 |
|
|
1,275,586 |
|
| Commitments and contingencies |
|
|
|
|
| Total liabilities and stockholders’ equity |
|
$ |
6,904,433 |
|
|
6,574,942 |
|
Selective Insurance Group, Inc. & Consolidated Subsidiaries
Consolidated Statements of Income
| |
Unaudited Quarter Ended
December 31, | |
Year Ended
December 31,
|
| ($ in thousands, except per share amounts) | |
2015 | |
2014 | |
Unaudited
2015 | |
2014 |
| Revenues: | |
| | | |
| | | |
| | | |
| | |
| Net premiums earned | |
$ | 516,087 | | |
| 469,850 | | |
| 1,989,909 | | |
| 1,852,609 | |
| Net investment income earned | |
| 30,108 | | |
| 32,108 | | |
| 121,316 | | |
| 138,708 | |
| Net realized gains: | |
| | | |
| | | |
| | | |
| | |
| Net realized investment gains | |
| 7,939 | | |
| 9,333 | | |
| 31,537 | | |
| 37,703 | |
| Other-than-temporary impairments | |
| (10,539 | ) | |
| (9,722 | ) | |
| (18,366 | ) | |
| (11,104 | ) |
| Total net realized (losses) gains | |
| (2,600 | ) | |
| (389 | ) | |
| 13,171 | | |
| 26,599 | |
| Other income | |
| 1,935 | | |
| 2,014 | | |
| 7,456 | | |
| 16,945 | |
| Total revenues | |
| 545,530 | | |
| 503,583 | | |
| 2,131,852 | | |
| 2,034,861 | |
| | |
| | | |
| | | |
| | | |
| | |
| Expenses: | |
| | | |
| | | |
| | | |
| | |
| Loss and loss expenses incurred | |
| 286,820 | | |
| 268,228 | | |
| 1,148,541 | | |
| 1,157,501 | |
| Policy acquisition costs | |
| 180,525 | | |
| 161,930 | | |
| 689,820 | | |
| 624,470 | |
| Interest expense | |
| 5,603 | | |
| 5,668 | | |
| 22,428 | | |
| 23,063 | |
| Other expenses | |
| 8,784 | | |
| 10,557 | | |
| 38,371 | | |
| 32,696 | |
| Total expenses | |
| 481,732 | | |
| 446,383 | | |
| 1,899,160 | | |
| 1,837,730 | |
| | |
| | | |
| | | |
| | | |
| | |
| Income from continuing operations, before federal income tax | |
| 63,798 | | |
| 57,200 | | |
| 232,692 | | |
| 197,131 | |
| | |
| | | |
| | | |
| | | |
| | |
| Federal income tax expense: | |
| | | |
| | | |
| | | |
| | |
| Current | |
| 16,219 | | |
| 5,723 | | |
| 45,347 | | |
| 28,415 | |
| Deferred | |
| 2,190 | | |
| 10,127 | | |
| 21,484 | | |
| 26,889 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total federal income tax expense | |
| 18,409 | | |
| 15,850 | | |
| 66,831 | | |
| 55,304 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 45,389 | | |
| 41,350 | | |
| 165,861 | | |
| 141,827 | |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings per share: | |
| | | |
| | | |
| | | |
| | |
| Basic net income | |
$ | 0.79 | | |
| 0.73 | | |
| 2.90 | | |
| 2.52 | |
| | |
| | | |
| | | |
| | | |
| | |
| Diluted net income | |
$ | 0.78 | | |
| 0.72 | | |
| 2.85 | | |
| 2.47 | |
| | |
| | | |
| | | |
| | | |
| | |
| Dividends to stockholders | |
$ | 0.15 | | |
| 0.14 | | |
| 0.57 | | |
| 0.53 | |
| Selective Insurance Group, Inc. & Consolidated Subsidiaries |
|
|
|
|
|
|
| Consolidated Statements of Comprehensive Income |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| December 31, |
|
Unaudited |
|
|
|
|
| ($ in thousands) |
|
2015 |
|
2014 |
|
2013 |
| Net income |
|
$ |
165,861 |
|
|
141,827 |
|
|
106,418 |
|
| |
|
|
|
|
|
|
| Other comprehensive loss, net of tax: |
|
|
|
|
|
|
| Unrealized (losses) gains on investment securities: |
|
|
|
|
|
|
| Unrealized holding (losses) gains arising during year |
|
(26,143 |
) |
|
47,411 |
|
|
(54,557 |
) |
|
Non-credit portion of other-than-temporary impairments recognized in other
comprehensive income |
|
— |
|
|
— |
|
|
50 |
|
| Amount reclassified into net income: |
|
|
|
|
|
|
| Held-to-maturity securities |
|
(377 |
) |
|
(844 |
) |
|
(1,025 |
) |
| Non-credit other-than-temporary impairment |
|
232 |
|
|
1,085 |
|
|
9 |
|
| Realized gains on available-for-sale securities |
|
(9,110 |
) |
|
(18,762 |
) |
|
(15,301 |
) |
| Total unrealized (losses) gains on investment securities |
|
(35,398 |
) |
|
28,890 |
|
|
(70,824 |
) |
| |
|
|
|
|
|
|
| Defined benefit pension and post-retirement plans: |
|
|
|
|
|
|
| Net actuarial gain (loss) |
|
1,585 |
|
|
(35,189 |
) |
|
38,775 |
|
| Amounts reclassified into net income: |
|
|
|
|
|
|
| Net actuarial loss |
|
4,600 |
|
|
1,236 |
|
|
2,843 |
|
| Prior service cost |
|
— |
|
|
— |
|
|
6 |
|
| Curtailment expense |
|
— |
|
|
— |
|
|
11 |
|
| Total defined benefit pension and post-retirement plans |
|
6,185 |
|
|
(33,953 |
) |
|
41,635 |
|
| Other comprehensive loss |
|
(29,213 |
) |
|
(5,063 |
) |
|
(29,189 |
) |
| Comprehensive income |
|
$ |
136,648 |
|
|
136,764 |
|
|
77,229 |
|
| Selective Insurance Group, Inc. & Consolidated Subsidiaries |
|
|
|
|
|
|
| Consolidated Statements of Stockholders’ Equity |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| December 31, |
|
Unaudited |
|
|
|
|
| ($ in thousands, except share amounts) |
|
2015 |
|
2014 |
|
2013 |
| Common stock: |
|
|
|
|
|
|
| Beginning of year |
|
$ |
199,896 |
|
|
198,240 |
|
|
196,388 |
|
| Dividend reinvestment plan (shares: 50,013 –
2015; 58,309 – 2014; 63,349 – 2013) |
|
100 |
|
|
117 |
|
|
127 |
|
| Stock purchase and compensation plans (shares:
863,426 – 2015; 769,389 – 2014; 862,662 – 2013) |
|
1,727 |
|
|
1,539 |
|
|
1,725 |
|
| End of year |
|
201,723 |
|
|
199,896 |
|
|
198,240 |
|
| |
|
|
|
|
|
|
| Additional paid-in capital: |
|
|
|
|
|
|
| Beginning of year |
|
305,385 |
|
|
288,182 |
|
|
270,654 |
|
| Dividend reinvestment plan |
|
1,374 |
|
|
1,306 |
|
|
1,396 |
|
| Stock purchase and compensation plans |
|
19,897 |
|
|
15,897 |
|
|
16,132 |
|
| End of year |
|
326,656 |
|
|
305,385 |
|
|
288,182 |
|
| |
|
|
|
|
|
|
| Retained earnings: |
|
|
|
|
|
|
| Beginning of year |
|
1,313,440 |
|
|
1,202,015 |
|
|
1,125,154 |
|
| Net income |
|
165,861 |
|
|
141,827 |
|
|
106,418 |
|
|
Dividends to stockholders ($0.57 per share – 2015; $0.53 per share
– 2014; $0.52 per share - 2013) |
|
(33,109 |
) |
|
(30,402 |
) |
|
(29,557 |
) |
| End of year |
|
1,446,192 |
|
|
1,313,440 |
|
|
1,202,015 |
|
| |
|
|
|
|
|
|
| Accumulated other comprehensive (loss) income: |
|
|
|
|
|
|
| Beginning of year |
|
19,788 |
|
|
24,851 |
|
|
54,040 |
|
| Other comprehensive loss |
|
(29,213 |
) |
|
(5,063 |
) |
|
(29,189 |
) |
| End of year |
|
(9,425 |
) |
|
19,788 |
|
|
24,851 |
|
| |
|
|
|
|
|
|
| Treasury stock: |
|
|
|
|
|
|
| Beginning of year |
|
(562,923 |
) |
|
(559,360 |
) |
|
(555,644 |
) |
| Acquisition of treasury stock (shares: 147,461 – 2015; 154,559 – 2014;
167,846 – 2013) |
|
(4,182 |
) |
|
(3,563 |
) |
|
(3,716 |
) |
| End of year |
|
(567,105 |
) |
|
(562,923 |
) |
|
(559,360 |
) |
| Total stockholders’ equity |
|
$ |
1,398,041 |
|
|
1,275,586 |
|
|
1,153,928 |
|
| Selective Insurance Group, Inc. & Consolidated Subsidiaries |
|
|
|
|
|
|
| Consolidated Statements of Cash Flow |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| December 31, |
|
Unaudited |
|
|
|
|
| ($ in thousands) |
|
2015 |
|
2014 |
|
2013 |
| Operating Activities |
|
|
|
|
|
|
| Net income |
|
$ |
165,861 |
|
|
141,827 |
|
|
106,418 |
|
| |
|
|
|
|
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
| Depreciation and amortization |
|
59,688 |
|
|
45,346 |
|
|
43,461 |
|
| Sale of renewal rights |
|
— |
|
|
(8,000 |
) |
|
— |
|
| Loss on disposal of discontinued operations |
|
— |
|
|
— |
|
|
997 |
|
| Stock-based compensation expense |
|
8,973 |
|
|
8,702 |
|
|
8,630 |
|
| Undistributed losses (gains) of equity method investments |
|
1,889 |
|
|
(153 |
) |
|
202 |
|
| Net realized gains |
|
(13,171 |
) |
|
(26,599 |
) |
|
(20,732 |
) |
| Net gain on disposal of property and equipment |
|
— |
|
|
(104 |
) |
|
— |
|
| Retirement income plan curtailment expense |
|
— |
|
|
— |
|
|
16 |
|
| |
|
|
|
|
|
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
| Increase in reserves for losses and loss expenses, net of reinsurance recoverables |
|
59,438 |
|
|
97,449 |
|
|
151,037 |
|
| Increase in unearned premiums, net of prepaid reinsurance |
|
79,995 |
|
|
32,671 |
|
|
74,086 |
|
| Decrease in net federal income taxes |
|
25,004 |
|
|
31,323 |
|
|
14,834 |
|
| Increase in premiums receivable |
|
(56,386 |
) |
|
(33,908 |
) |
|
(40,482 |
) |
| Increase in deferred policy acquisition costs |
|
(27,551 |
) |
|
(12,627 |
) |
|
(17,458 |
) |
| Decrease (increase) in interest and dividends due or accrued |
|
407 |
|
|
(1,536 |
) |
|
(1,372 |
) |
| Increase (decrease) in accrued salaries and benefits |
|
11,392 |
|
|
(7,182 |
) |
|
18,685 |
|
| Increase (decrease) in accrued insurance expenses |
|
23,342 |
|
|
(956 |
) |
|
14,444 |
|
| Increase (decrease) in other assets and other liabilities |
|
42,699 |
|
|
(33,490 |
) |
|
(16,642 |
) |
| Net adjustments |
|
215,719 |
|
|
90,936 |
|
|
229,706 |
|
| Net cash provided by operating activities |
|
381,580 |
|
|
232,763 |
|
|
336,124 |
|
| |
|
|
|
|
|
|
| Investing Activities |
|
|
|
|
|
|
| Purchase of fixed income securities, held-to-maturity |
|
(3,316 |
) |
|
— |
|
|
— |
|
| Purchase of fixed income securities, available-for-sale |
|
(1,041,916 |
) |
|
(843,616 |
) |
|
(1,069,387 |
) |
| Purchase of equity securities, available-for-sale |
|
(195,720 |
) |
|
(186,019 |
) |
|
(118,072 |
) |
| Purchase of other investments |
|
(12,170 |
) |
|
(10,617 |
) |
|
(9,332 |
) |
| Purchase of short-term investments |
|
(1,602,327 |
) |
|
(1,410,123 |
) |
|
(2,056,576 |
) |
| Sale of subsidiary |
|
— |
|
|
— |
|
|
1,225 |
|
| Sale of fixed income securities, available-for-sale |
|
61,571 |
|
|
51,002 |
|
|
20,126 |
|
| Sale of short-term investments |
|
1,539,480 |
|
|
1,452,402 |
|
|
2,096,805 |
|
| Redemption and maturities of fixed income securities, held-to-maturity |
|
106,621 |
|
|
73,415 |
|
|
116,584 |
|
| Redemption and maturities of fixed income securities, available-for-sale |
|
567,445 |
|
|
482,816 |
|
|
513,804 |
|
| Sale of equity securities, available-for-sale |
|
172,561 |
|
|
208,008 |
|
|
115,782 |
|
| Distributions from other investments |
|
32,457 |
|
|
20,774 |
|
|
12,039 |
|
| Purchase of property and equipment |
|
(16,229 |
) |
|
(15,510 |
) |
|
(14,023 |
) |
| Sale of renewal rights |
|
— |
|
|
8,000 |
|
|
— |
|
| Net cash used in investing activities |
|
(391,543 |
) |
|
(169,468 |
) |
|
(391,025 |
) |
| |
|
|
|
|
|
|
| Financing Activities |
|
|
|
|
|
|
| Dividends to stockholders |
|
(31,052 |
) |
|
(28,428 |
) |
|
(27,416 |
) |
| Acquisition of treasury stock |
|
(4,182 |
) |
|
(3,563 |
) |
|
(3,716 |
) |
| Net proceeds from stock purchase and compensation plans |
|
10,089 |
|
|
7,283 |
|
|
7,119 |
|
| Proceeds from issuance of notes payable, net of debt issuance costs |
|
— |
|
|
— |
|
|
178,435 |
|
| Proceeds from borrowings |
|
15,000 |
|
|
— |
|
|
— |
|
| Repayment of borrowings |
|
— |
|
|
(13,000 |
) |
|
— |
|
| Repayment of notes payable |
|
— |
|
|
— |
|
|
(100,000 |
) |
| Excess tax benefits from share-based payment arrangements |
|
1,736 |
|
|
1,020 |
|
|
1,545 |
|
| Repayment of capital lease obligations |
|
(4,689 |
) |
|
(2,841 |
) |
|
(1,083 |
) |
| Net (used in) cash provided by financing activities |
|
(13,098 |
) |
|
(39,529 |
) |
|
54,884 |
|
| Net (decrease) increase in cash |
|
(23,061 |
) |
|
23,766 |
|
|
(17 |
) |
| Cash, beginning of year |
|
23,959 |
|
|
193 |
|
|
210 |
|
| Cash, end of year |
|
$ |
898 |
|
|
23,959 |
|
|
193 |
|
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Statutory Balance Sheets
(unaudited)
| | |
December 31, | |
December 31, |
| ($ in thousands) | |
2015 | |
2014 |
| ASSETS | |
| | | |
| | |
| Bonds | |
$ | 4,491,136 | | |
| 4,241,580 | |
| Common stocks | |
| 194,789 | | |
| 191,400 | |
| Preferred stocks | |
| 11,856 | | |
| - | |
| Affiliated mortgage loan | |
| 35,163 | | |
| 35,961 | |
| Other investments | |
| 128,788 | | |
| 152,154 | |
| Short-term investments | |
| 165,678 | | |
| 115,342 | |
| Total investments | |
| 5,027,410 | | |
| 4,736,437 | |
| | |
| | | |
| | |
| Cash on hand and in banks | |
| (34,378 | ) | |
| 12,381 | |
| Interest and dividends due and accrued | |
| 38,466 | | |
| 38,908 | |
| Premiums receivable | |
| 609,146 | | |
| 556,086 | |
| Reinsurance recoverable on paid losses and expenses | |
| 10,949 | | |
| 9,570 | |
| Deferred tax recoverable | |
| 142,066 | | |
| 147,610 | |
| EDP equipment | |
| 390 | | |
| 518 | |
| Equities and deposits in pools and associations | |
| 10,920 | | |
| 9,915 | |
| Receivable for sold securities | |
| 17 | | |
| 34 | |
| Other assets | |
| 28,300 | | |
| 26,629 | |
| Total assets | |
$ | 5,833,286 | | |
| 5,538,088 | |
| | |
| | | |
| | |
| LIABILITIES | |
| | | |
| | |
| Reserve for losses | |
$ | 2,426,583 | | |
| 2,398,531 | |
| Reinsurance payable on paid loss and loss expense | |
| 2,841 | | |
| 2,957 | |
| Reserve for loss expenses | |
| 525,322 | | |
| 493,510 | |
| Unearned premiums | |
| 1,028,820 | | |
| 948,826 | |
| Reserve for commissions payable | |
| 89,740 | | |
| 70,259 | |
| Ceded balances payable | |
| 37,222 | | |
| 29,624 | |
| Federal income tax payable | |
| 25,644 | | |
| 20,524 | |
| Premium and other taxes payable | |
| 23,998 | | |
| 20,137 | |
| Borrowed money | |
| 60,031 | | |
| 45,027 | |
| Reserve for dividends to policyholders | |
| 5,805 | | |
| 3,895 | |
| Reserves for unauthorized reinsurance | |
| 2,030 | | |
| 7,661 | |
| Payable for securities | |
| 6,204 | | |
| 19,950 | |
| Funds withheld on account of others | |
| 6,806 | | |
| 7,473 | |
| Accrued salaries and benefits | |
| 77,933 | | |
| 64,207 | |
| Other liabilities | |
| 87,987 | | |
| 97,665 | |
| Total liabilities | |
| 4,406,966 | | |
| 4,230,246 | |
| | |
| | | |
| | |
| POLICYHOLDERS' SURPLUS | |
| | | |
| | |
| Capital | |
| 42,725 | | |
| 42,725 | |
| Paid in surplus | |
| 492,869 | | |
| 492,869 | |
| Unassigned surplus | |
| 890,726 | | |
| 772,248 | |
| Total policyholders' surplus | |
| 1,426,320 | | |
| 1,307,842 | |
| Total liabilities and policyholders' surplus | |
$ | 5,833,286 | | |
| 5,538,088 | |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Statutory Statements Of Income
(unaudited)
| | |
Quarter Ended | |
| |
Year-to-Date | |
|
| | |
December 31, | |
| |
December 31, | |
|
| ($ in thousands) | |
2015 | |
| |
2014 | |
| |
2015 | |
| |
2014 | |
|
| UNDERWRITING | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net premiums written | |
$ | 474,658 | | |
| | | |
| 433,586 | | |
| | | |
| 2,069,904 | | |
| | | |
| 1,885,280 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net premiums earned | |
| 516,087 | | |
| | | |
| 469,850 | | |
| | | |
| 1,989,909 | | |
| | | |
| 1,852,609 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net losses paid | |
| 234,802 | | |
| | | |
| 210,724 | | |
| | | |
| 891,485 | | |
| | | |
| 873,159 | | |
| | |
| Change in reserve for losses | |
| (441 | ) | |
| | | |
| (9,756 | ) | |
| | | |
| 28,052 | | |
| | | |
| 57,055 | | |
| | |
| Net losses incurred | |
| 234,361 | | |
| 45.4 | % | |
| 200,968 | | |
| 42.8 | % | |
| 919,537 | | |
| 46.2 | % | |
| 930,214 | | |
| 50.2 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net loss expenses paid | |
| 53,288 | | |
| | | |
| 48,313 | | |
| | | |
| 197,433 | | |
| | | |
| 187,491 | | |
| | |
| Change in reserve for loss expenses | |
| (931 | ) | |
| | | |
| 17,577 | | |
| | | |
| 31,813 | | |
| | | |
| 37,526 | | |
| | |
| Net loss expenses incurred | |
| 52,357 | | |
| 10.2 | % | |
| 65,890 | | |
| 14.0 | % | |
| 229,246 | | |
| 11.5 | % | |
| 225,017 | | |
| 12.2 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net underwriting expenses incurred | |
| 179,153 | | |
| 37.6 | % | |
| 157,373 | | |
| 36.2 | % | |
| 716,172 | | |
| 34.6 | % | |
| 635,760 | | |
| 33.7 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Total deductions | |
| 465,871 | | |
| | | |
| 424,231 | | |
| | | |
| 1,864,955 | | |
| | | |
| 1,790,991 | | |
| | |
| Statutory underwriting gain | |
| 50,216 | | |
| | | |
| 45,619 | | |
| | | |
| 124,954 | | |
| | | |
| 61,618 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net loss from premium balances charged off | |
| (773 | ) | |
| | | |
| (54 | ) | |
| | | |
| (2,919 | ) | |
| | | |
| (2,822 | ) | |
| | |
| Finance charges and other income | |
| 1,983 | | |
| | | |
| 1,617 | | |
| | | |
| 7,671 | | |
| | | |
| 17,204 | | |
| | |
| Total other income | |
| 1,210 | | |
| -0.2 | % | |
| 1,563 | | |
| -0.3 | % | |
| 4,752 | | |
| -0.2 | % | |
| 14,382 | | |
| -0.7 | % |
| Policyholders' dividends incurred | |
| (929 | ) | |
| 0.2 | % | |
| (2,239 | ) | |
| 0.5 | % | |
| (6,219 | ) | |
| 0.3 | % | |
| (6,182 | ) | |
| 0.3 | % |
| Total underwriting gain | |
| 50,497 | | |
| 93.2 | % | |
| 44,943 | | |
| 93.2 | % | |
| 123,487 | | |
| 92.4 | % | |
| 69,818 | | |
| 95.7 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| INVESTMENT | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net investment income earned | |
| 29,455 | | |
| | | |
| 31,745 | | |
| | | |
| 120,558 | | |
| | | |
| 137,670 | | |
| | |
| Net realized (loss) gain | |
| (2,600 | ) | |
| | | |
| (389 | ) | |
| | | |
| 13,170 | | |
| | | |
| 26,594 | | |
| | |
| Total income before income tax | |
| 77,352 | | |
| | | |
| 76,299 | | |
| | | |
| 257,215 | | |
| | | |
| 234,082 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Federal income tax expense | |
| 23,648 | | |
| | | |
| 11,775 | | |
| | | |
| 61,377 | | |
| | | |
| 43,827 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 53,704 | | |
| | | |
| 64,524 | | |
| | | |
| 195,838 | | |
| | | |
| 190,255 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Policyholders' Surplus | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Surplus, beginning of period | |
$ | 1,367,343 | | |
| | | |
| 1,323,097 | | |
| | | |
| 1,307,842 | | |
| | | |
| 1,256,431 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income | |
| 53,704 | | |
| | | |
| 64,524 | | |
| | | |
| 195,838 | | |
| | | |
| 190,255 | | |
| | |
| Change in deferred taxes | |
| (2,236 | ) | |
| | | |
| 8,146 | | |
| | | |
| (13,637 | ) | |
| | | |
| (2,016 | ) | |
| | |
| Change in net unrealized capital gain / (losses) | |
| 7,522 | | |
| | | |
| 693 | | |
| | | |
| (12,579 | ) | |
| | | |
| (3,721 | ) | |
| | |
| Dividends to stockholders | |
| (14,438 | ) | |
| | | |
| (14,378 | ) | |
| | | |
| (57,752 | ) | |
| | | |
| (57,511 | ) | |
| | |
| Change in reserve for unauthorized | |
| 5,631 | | |
| | | |
| (4,927 | ) | |
| | | |
| 5,631 | | |
| | | |
| (4,927 | ) | |
| | |
| Change in non-admitted assets | |
| 4,510 | | |
| | | |
| (15,801 | ) | |
| | | |
| (8,151 | ) | |
| | | |
| (18,004 | ) | |
| | |
| Change in Overfunded Contra Asset | |
| 562 | | |
| | | |
| (1,285 | ) | |
| | | |
| (280 | ) | |
| | | |
| (5,925 | ) | |
| | |
| Qual Pen Trans Liab | |
| 2,677 | | |
| | | |
| (50,660 | ) | |
| | | |
| 8,211 | | |
| | | |
| (45,214 | ) | |
| | |
| Excess Plan Trans Liab | |
| 748 | | |
| | | |
| (1,400 | ) | |
| | | |
| 878 | | |
| | | |
| (1,377 | ) | |
| | |
| PRL Plan Trans Liab | |
| 297 | | |
| | | |
| (167 | ) | |
| | | |
| 319 | | |
| | | |
| (149 | ) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net change in surplus for period | |
| 58,977 | | |
| | | |
| (15,255 | ) | |
| | | |
| 118,478 | | |
| | | |
| 51,411 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Surplus, end of period | |
$ | 1,426,320 | | |
| | | |
| 1,307,842 | | |
| | | |
| 1,426,320 | | |
| | | |
| 1,307,842 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Statutory underwriting gain | |
$ | 50,497 | | |
| | | |
| 44,943 | | |
| | | |
| 123,487 | | |
| | | |
| 69,818 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Adjustments under GAAP: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Deferred policy acquisition costs | |
| (507 | ) | |
| | | |
| (4,074 | ) | |
| | | |
| 27,551 | | |
| | | |
| 12,626 | | |
| | |
| Other, net | |
| (937 | ) | |
| | | |
| (2,232 | ) | |
| | | |
| (2,009 | ) | |
| | | |
| (4,301 | ) | |
| | |
| GAAP underwriting gain | |
$ | 49,053 | | |
| | | |
| 38,637 | | |
| | | |
| 149,029 | | |
| | | |
| 78,143 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Note: Some amounts or ratios may not foot due to rounding
Selective Insurance Group, Inc. and Consolidated Subsidiaries
Alternative Investments
December 31, 2015
(unaudited)
| |
|
|
|
|
| |
Number |
Original |
Remaining |
Current |
| Strategy |
of Funds |
Commitment |
Commitment |
Market Value |
| Private Equity |
9 |
111,498,351 |
30,204,172 |
35,087,904 |
| Private Credit |
5 |
60,000,000 |
15,129,467 |
13,246,148 |
| Real Assets |
7 |
100,000,000 |
25,819,631 |
19,499,570 |
| TOTAL - ALTERNATIVE INVESTMENTS |
21 |
271,498,351 |
71,153,269 |
67,833,623 |
| |
|
|
|
|
Exhibit may not foot due to rounding
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