AM Best Affirms Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries
November 12 2020 - 10:07AM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “a+” of the pooled members of Selective Insurance Group
(Selective). Additionally, AM Best has affirmed the Long-Term ICR
of “bbb+” and the Long-Term Issue Credit Ratings (Long-Term IR) of
the ultimate parent, Selective Insurance Group, Inc. (SIGI)
[NASDAQ: SIGI]. The outlook of these Credit Ratings (ratings) is
positive. All companies are headquartered in Branchville, NJ.
(Please see below for a detailed listing of companies and
ratings.)
These ratings reflect Selective’s balance sheet strength, which
AM Best categorizes as strongest, as well as its adequate operating
performance, favorable business profile and appropriate enterprise
risk management.
Selective’s risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR), is assessed at the strongest level,
and is offset partially by exposure to catastrophe losses and
terrorism. The positive outlooks reflect improved profitability
over the past five years on an absolute basis and relative to its
peers. AM Best expects that the group will continue to improve the
underwriting results in its more challenged commercial auto and
excess and surplus books of business through initiatives and
targeted rate increases. The favorable business profile is based
partly on the group’s close working relationship with its selected
agencies, and the use of technology to enhance its underwriting and
servicing capabilities.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” have
been affirmed for the pooled members of Selective Insurance
Group:
- Selective Insurance Company of America
- Selective Way Insurance Company
- Selective Insurance Company of the Southeast
- Selective Insurance Company of New York
- Selective Insurance Company of South Carolina
- Selective Insurance Company of New England
- Selective Auto Insurance Company of New Jersey
- Mesa Underwriters Specialty Insurance Company
- Selective Casualty Insurance Company
- Selective Fire & Casualty Insurance Company
The following Long-Term IRs have been affirmed:
Selective Insurance Group, Inc.— --“bbb+” on $49.9 million 7.25%
senior unsecured notes, due 2034 --“bbb+” on $99.4 million 6.70%
senior unsecured notes, due 2035 --“bbb+” on $294.2 million 5.375%
senior unsecured notes, due 2049
The following indicative Long-Term IRs have been affirmed on the
current shelf registration:
Selective Insurance Group, Inc.— --“bbb+” on senior unsecured
debt --“bbb” on subordinated debt --“bbb-” on preferred stock
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best’s
Credit Ratings. For information on the proper media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Edin Imsirovic Associate Director +1 908 439
2200, ext. 5740 edin.imsirovic@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jacqalene Lentz, CPA Director +1 908 439 2200,
ext. 5762 jacqalene.lentz@ambest.com
Jim Peavy Director, Communications +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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