BRANCHVILLE, N.J.,
Jan. 31, 2019 /PRNewswire/ --
In the fourth quarter of 2018:
- Net premiums written ("NPW") grew 5%
- GAAP combined ratio was 92.7%
- After-tax net investment income was up 42%, to $44 million
- Annualized ROE was 10.4% and non-GAAP operating ROE was
16.3%
Selective Insurance Group, Inc. (NASDAQ: SIGI) today reported
its financial results for the fourth quarter ended
December 31, 2018. Net income per diluted share was
$0.76, compared to $0.51 a year ago. Non-GAAP operating income
per diluted share was up 40%, to $1.20. After-tax net realized losses were
$0.44 per diluted share in the fourth
quarter, reflecting significant opportunistic trading activity that
will enhance our fixed income portfolio and 2019 after-tax net
investment income. The Company generated an overall after-tax
portfolio yield of 2.8% in 2018 and ended the year with 3.33 of
invested assets per dollar of stockholders' equity.
"In the fourth quarter, we generated a 92.7% GAAP combined
ratio, or 90.3% excluding catastrophe losses," said Gregory E. Murphy, Chairman and Chief Executive
Officer. "For the year, non-GAAP operating ROE was 12.5%,
exceeding our ROE target of 12%. We are extremely proud of
our continued track record of generating solid returns for our
shareholders, as this was the fifth consecutive year the Company
generated double digit non-GAAP operating ROEs."
"We continue to execute on disciplined growth, with our net
premiums written increasing 6% in 2018, driven by commercial lines
renewal pure price increases of 3.5% and strong retention in our
standard lines of business of 83%," Mr. Murphy added.
"Our investment portfolio generated superior results for the year
with after-tax net investment income up 35% from 2017, to
$160 million, driven by: (i)
higher interest rates; (ii) active portfolio management; (iii)
excellent operating cash flow that was 18% of NPW; (iv) improved
alternative investment returns; and (v) a lower Federal income tax
rate."
Mr. Murphy continued, "The Company's financial results and our
best in class employees' successful execution on our strategic
objectives, have allowed Selective to be in its strongest financial
position ever going into 2019. We maintained our standard
commercial lines written renewal pure price increases in line with
expected claim inflation. The targeted underwriting actions
we took in our excess and surplus lines have improved results in
this segment. Through our state expansion efforts, we entered
five new states for standard commercial lines and two new states
for standard personal lines in the last 18 months, which provides
additional runway for growth. All of these achievements
coupled with strong relationships with our 'ivy league'
distribution partners, continued investment in sophisticated
underwriting tools, and a focus to provide a superior experience to
our customers, will allow for continued outperformance relative to
the industry."
Operating Highlights
Consolidated
Financial Results
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ and shares in
millions, except per share data
|
2018
|
|
2017
|
2018
|
|
2017
|
Net premiums
written
|
$
|
582.8
|
|
|
553.8
|
|
5
|
%
|
|
$
|
2,514.3
|
|
|
2,370.6
|
|
6
|
%
|
|
Net premiums
earned
|
625.3
|
|
|
590.1
|
|
6
|
|
|
2,436.2
|
|
|
2,291.0
|
|
6
|
|
|
Net investment income
earned
|
54.1
|
|
|
42.6
|
|
27
|
|
|
195.3
|
|
|
161.9
|
|
21
|
|
|
Net realized and
unrealized (losses) gains, pre-tax
|
(37.9)
|
|
|
(1.1)
|
|
(3,263)
|
|
|
(54.9)
|
|
|
6.4
|
|
(964)
|
|
|
Total
revenues
|
643.0
|
|
|
633.7
|
|
1
|
|
|
2,586.1
|
|
|
2,470.0
|
|
5
|
|
|
Net underwriting
income, after-tax
|
35.9
|
|
|
27.5
|
|
30
|
|
|
95.7
|
|
|
100.3
|
|
(5)
|
|
|
Net investment
income, after-tax
|
44.2
|
|
|
31.2
|
|
42
|
|
|
160.5
|
|
|
118.5
|
|
35
|
|
|
Net income
|
45.8
|
|
|
30.2
|
|
51
|
|
|
178.9
|
|
|
168.8
|
|
6
|
|
|
Non-GAAP operating
income1
|
72.0
|
|
|
51.2
|
|
41
|
|
|
218.6
|
|
|
184.9
|
|
18
|
|
|
Combined
ratio
|
92.7
|
%
|
|
92.8
|
|
(0.1)
|
pts
|
|
95.0
|
%
|
|
93.3
|
|
1.7
|
pts
|
|
Loss and loss expense
ratio
|
58.7
|
|
|
57.8
|
|
0.9
|
|
|
61.5
|
|
|
58.7
|
|
2.8
|
|
|
Underwriting expense
ratio
|
33.7
|
|
|
34.7
|
|
(1.0)
|
|
|
33.2
|
|
|
34.4
|
|
(1.2)
|
|
|
Dividends to
policyholders ratio
|
0.3
|
|
|
0.3
|
|
—
|
|
|
0.3
|
|
|
0.2
|
|
0.1
|
|
|
Catastrophe
losses
|
2.4
|
pts
|
|
0.3
|
|
2.1
|
|
|
3.6
|
pts
|
|
2.9
|
|
0.7
|
|
|
Non-catastrophe
property losses
|
13.3
|
|
|
14.8
|
|
(1.5)
|
|
|
14.8
|
|
|
13.3
|
|
1.5
|
|
|
(Favorable) prior
year reserve development on casualty
lines
|
(2.8)
|
|
|
(1.7)
|
|
(1.1)
|
|
|
(1.7)
|
|
|
(2.1)
|
|
0.4
|
|
|
Net income per
diluted share
|
$
|
0.76
|
|
|
0.51
|
|
49
|
%
|
|
$
|
3.00
|
|
|
2.84
|
|
6
|
%
|
|
Non-GAAP operating
income per diluted share1
|
1.20
|
|
|
0.86
|
|
40
|
|
|
3.66
|
|
|
3.11
|
|
18
|
|
|
Weighted average
diluted shares
|
59.8
|
|
|
59.5
|
|
1
|
|
|
59.7
|
|
|
59.4
|
|
1
|
|
|
Book value per
share
|
$
|
30.40
|
|
|
29.28
|
|
4
|
|
|
30.40
|
|
|
29.28
|
|
4
|
|
|
Standard Commercial Lines
Standard Commercial Lines premiums, which represented 79% of
total 2018 net premiums written, were up 6% in the fourth quarter
compared to a year ago. This growth reflects strong renewal
pure price increases of 3.4%, retention of 83%, and an increase in
new business of 10%, to $92
million. The 0.9-point increase in the fourth
quarter's combined ratio, to 92.9%, was driven by the items in the
table below coupled with a $13.5
million, or 2.8 points, increase in current year loss costs
above expectations driven by our commercial auto line of
business. The favorable prior year casualty reserve
development was predominantly driven by the workers compensation
line of business, partially offset by adverse development in the
commercial auto line of business that was driven by the 2015 to
2017 accident years.
For the year, premiums were up 6%, driven by 3.5% of renewal
pure price increases and a 4% increase in new business. The
combined ratio was 94.3%, compared to 91.6% from 2017, the drivers
of which are outlined in the table below, as well as a $29.5 million, or 1.5 points, increase in current
year loss costs above expectations driven by our commercial auto
line of business. The favorable prior year casualty reserve
development was predominantly driven by the workers compensation
and general liability lines of business, partially offset by
adverse development in the commercial auto line of business that
was driven by the 2015 to 2017 accident years.
Standard
Commercial Lines
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ in
millions
|
2018
|
|
2017
|
2018
|
|
2017
|
Net premiums
written
|
$
|
449.4
|
|
|
424.2
|
|
6
|
%
|
|
$
|
1,975.7
|
|
|
1,858.7
|
|
6
|
%
|
|
Net premiums
earned
|
489.8
|
|
|
461.2
|
|
6
|
|
|
1,912.2
|
|
|
1,788.5
|
|
7
|
|
|
Combined
ratio
|
92.9
|
%
|
|
92.0
|
|
0.9
|
pts
|
|
94.3
|
%
|
|
91.6
|
|
2.7
|
pts
|
|
Loss and loss expense
ratio
|
57.8
|
|
|
56.1
|
|
1.7
|
|
|
59.7
|
|
|
56.3
|
|
3.4
|
|
|
Underwriting expense
ratio
|
34.8
|
|
|
35.5
|
|
(0.7)
|
|
|
34.2
|
|
|
35.0
|
|
(0.8)
|
|
|
Dividends to
policyholders ratio
|
0.3
|
|
|
0.4
|
|
(0.1)
|
|
|
0.4
|
|
|
0.3
|
|
0.1
|
|
|
Catastrophe
losses
|
2.5
|
pts
|
|
0.4
|
|
2.1
|
|
|
3.4
|
pts
|
|
2.2
|
|
1.2
|
|
|
Non-catastrophe
property losses
|
11.8
|
|
|
12.5
|
|
(0.7)
|
|
|
12.8
|
|
|
11.5
|
|
1.3
|
|
|
(Favorable) prior
year reserve development on casualty
lines
|
(4.5)
|
|
|
(2.8)
|
|
(1.7)
|
|
|
(3.0)
|
|
|
(3.7)
|
|
0.7
|
|
|
Standard Personal Lines
Standard Personal Lines premiums, which represented 12% of total
2018 net premiums written, was similar in the quarter compared to a
year ago and included renewal pure price increases of 4.6% and
stable retention of 84%. The combined ratio in the fourth
quarter was 91.8%, a 3.4-point decrease from a year ago, the
drivers of which are outlined in the table below. The
unfavorable prior year casualty reserve development was
predominantly driven by the personal auto line of business for the
2016 and 2017 accident years.
For the year, premiums were up 4%, driven by renewal pure price
increases of 3.8% and stable retention of 84%. The combined
ratio was 95.8%, a 0.4-point decrease from a year ago, the drivers
of which are outlined in the table below.
Standard Personal
Lines
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ in
millions
|
2018
|
|
2017
|
2018
|
|
2017
|
Net premiums
written
|
$
|
72.7
|
|
|
72.8
|
|
—
|
%
|
|
$
|
309.3
|
|
|
296.8
|
|
4
|
%
|
|
Net premiums
earned
|
77.4
|
|
|
74.2
|
|
4
|
|
|
304.4
|
|
|
289.7
|
|
5
|
|
|
Combined
ratio
|
91.8
|
%
|
|
95.2
|
|
(3.4)
|
pts
|
|
95.8
|
%
|
|
96.2
|
|
(0.4)
|
pts
|
|
Loss and loss expense
ratio
|
63.8
|
|
|
64.9
|
|
(1.1)
|
|
|
67.9
|
|
|
65.4
|
|
2.5
|
|
|
Underwriting expense
ratio
|
28.0
|
|
|
30.3
|
|
(2.3)
|
|
|
27.9
|
|
|
30.8
|
|
(2.9)
|
|
|
Catastrophe
losses
|
(0.8)
|
pts
|
|
1.0
|
|
(1.8)
|
|
|
5.7
|
pts
|
|
5.6
|
|
0.1
|
|
|
Non-catastrophe
property losses
|
27.5
|
|
|
28.0
|
|
(0.5)
|
|
|
30.1
|
|
|
26.3
|
|
3.8
|
|
|
Unfavorable prior
year reserve development on casualty
lines
|
5.8
|
|
|
4.0
|
|
1.8
|
|
|
1.5
|
|
|
2.8
|
|
(1.3)
|
|
|
Excess and Surplus Lines
Excess and Surplus Lines premiums, which represented 9% of total
2018 net premiums written, increased 7% in the quarter compared to
a year ago, driven by a 29% increase in new business. We
continue to address profitability in this line through targeted
price increases, business mix shifts, and improved underwriting
standards. Over the past year, we have taken steps to exit
some underperforming classes of E&S business, while entering
into new distribution relationships. The premium growth in
the fourth quarter continues to reflect the impact of one
particularly large relationship that we established in the second
quarter of 2018. The combined ratio for the fourth quarter
was 92.9%, which was 3.6 points lower than a year ago, the drivers
of which are outlined in the table below.
For the year, premiums were up 7%, driven by an 8% increase in
new business, to $98 million, coupled
with overall renewal pure price increases of 4.7%. The
combined ratio was 100.3%, a 2.7-point decrease from a year ago,
the drivers of which are outlined in the table below. The
unfavorable prior year casualty reserve development was primarily
driven by the 2015 and 2016 accident years, reflecting for the most
part severity.
Excess and Surplus
Lines
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ in
millions
|
2018
|
|
2017
|
2018
|
|
2017
|
Net premiums
written
|
$
|
60.7
|
|
|
56.9
|
|
7
|
%
|
|
$
|
229.3
|
|
|
215.1
|
|
7
|
%
|
|
Net premiums
earned
|
58.1
|
|
|
54.6
|
|
6
|
|
|
219.6
|
|
|
212.8
|
|
3
|
|
|
Combined
ratio
|
92.9
|
%
|
|
96.5
|
|
(3.6)
|
pts
|
|
100.3
|
%
|
|
103.0
|
|
(2.7)
|
pts
|
|
Loss and loss expense
ratio
|
61.5
|
|
|
63.0
|
|
(1.5)
|
|
|
68.5
|
|
|
69.4
|
|
(0.9)
|
|
|
Underwriting expense
ratio
|
31.4
|
|
|
33.5
|
|
(2.1)
|
|
|
31.8
|
|
|
33.6
|
|
(1.8)
|
|
|
Catastrophe
losses
|
6.0
|
pts
|
|
(1.0)
|
|
7.0
|
|
|
2.8
|
pts
|
|
5.3
|
|
(2.5)
|
|
|
Non-catastrophe
property losses
|
7.1
|
|
|
15.5
|
|
(8.4)
|
|
|
11.2
|
|
|
10.6
|
|
0.6
|
|
|
Unfavorable prior
year reserve development on casualty
lines
|
—
|
|
|
—
|
|
—
|
|
|
5.5
|
|
|
4.7
|
|
0.8
|
|
|
Investment Income
Net investment income, after-tax, in the fourth quarter was
$44 million, up 42% compared to a
year ago. For the year, after-tax investment income was
$160 million, up 35% from the prior
year. The improvements in both periods were driven by:
(i) higher interest rates; (ii) active portfolio management; (iii)
excellent operating cash flow that was 18% of NPW; (iv) improved
alternative investment returns; and (v) a lower Federal income tax
rate. Our alternative investments generated $14 million in after-tax income in 2018, compared
to $8 million in the prior
year. In addition, after-tax net investment income benefited
from higher reinvestment yields in 2018, including a 111 basis
point increase in the 90-day London Interbank Offered Rate
("LIBOR"), which affected our floating rate securities that
represented approximately 16% of our fixed income securities
portfolio at year-end. The after-tax earned income yield on
the portfolio averaged 2.8% during 2018. After-tax new money
yields averaged 2.9%, and the weighted average after-tax book yield
on the fixed income portfolio was 3.0% at year-end. Invested
assets per dollar of stockholders' equity was 3.33 at year-end.
Investments
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ in millions,
except per share data
|
2018
|
|
2017
|
2018
|
|
2017
|
Net investment income
earned, after-tax
|
$
|
44.2
|
|
|
31.2
|
|
42
|
%
|
|
$
|
160.5
|
|
|
118.5
|
|
35
|
%
|
|
Net investment income
per share
|
0.74
|
|
|
0.52
|
|
42
|
|
|
2.69
|
|
|
2.00
|
|
35
|
|
|
Effective tax
rate
|
18.3
|
%
|
|
26.8
|
|
(8.5)
|
pts
|
|
17.8
|
%
|
|
26.8
|
|
(9.0)
|
pts
|
|
Average
yields:
|
|
|
|
|
|
|
|
|
|
|
Fixed income
securities:
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
3.6
|
%
|
|
3.1
|
|
0.5
|
pts
|
|
3.4
|
%
|
|
3.0
|
|
0.4
|
pts
|
|
After-tax
|
2.9
|
|
|
2.3
|
|
0.6
|
|
|
2.8
|
|
|
2.2
|
|
0.6
|
|
|
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
3.7
|
|
|
3.0
|
|
0.7
|
|
|
3.4
|
|
|
2.9
|
|
0.5
|
|
|
After-tax
|
3.0
|
|
|
2.2
|
|
0.8
|
|
|
2.8
|
|
|
2.1
|
|
0.7
|
|
|
Balance Sheet
$ in millions,
except per share data
|
December 31,
2018
|
December 31,
2017
|
Change
|
Total
assets
|
$
|
7,952.7
|
|
7,686.4
|
|
3
|
%
|
Total
investments
|
5,960.7
|
|
5,685.2
|
|
5
|
|
Long-term
debt
|
439.5
|
|
439.1
|
|
—
|
|
Stockholders'
equity
|
1,791.8
|
|
1,713.0
|
|
5
|
|
Invested assets per
dollar of stockholders' equity
|
3.33
|
|
3.32
|
|
—
|
|
Book value per
share
|
30.40
|
|
29.28
|
|
4
|
|
Book value per share increased 4% for the year, driven by net
income, partially offset by unrealized losses on our fixed income
securities portfolio from rising interest rates, coupled with
dividends paid to shareholders.
Guidance
For 2019, Selective expects to generate the following
results:
- A GAAP combined ratio, excluding catastrophe losses, of
92.0%. This assumes no prior year casualty reserve
development;
- Catastrophe losses of 3.5 points;
- After-tax net investment income of $175
million, which includes $8
million of after-tax net investment income from our
alternative investments;
- An overall effective tax rate of approximately 19%, which also
includes an effective tax rate of 18% for net investment income,
reflecting a tax rate of 5.25% for tax-advantaged municipal bonds,
and a tax rate of 21% for all other items; and
- Weighted average shares outstanding of 60 million.
The supplemental investor package, including financial
information that is not part of this press release, is available on
the Investors page of Selective's website at
www.Selective.com. Selective's quarterly analyst conference
call will be simulcast at 10:00 a.m.
ET, on Friday, February 1,
2019 at www.Selective.com. The webcast will be
available for rebroadcast until the close of business on
March 1, 2019.
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.
1Reconciliation of Net Income to Non-GAAP
Operating Income and Certain Other Non-GAAP Measures
Non-GAAP operating income, non-GAAP operating income per diluted
share, and non-GAAP operating return on equity differ from net
income, net income per diluted share, and return on equity,
respectively, by the exclusion of after-tax net realized and
unrealized gains and losses on investments and the deferred tax
asset charge that was recognized in 2017 in relation to tax
reform. They are used as important financial measures by
management, analysts, and investors, because the realization of net
investment gains and losses on sales of securities in any given
period is largely discretionary as to timing. In addition,
these net realized investment gains and losses,
other-than-temporary investment impairments that are charged to
earnings, unrealized gains and losses on equity securities, and the
deferred tax asset charge could distort the analysis of
trends. These operating measurements are not intended as a
substitute for net income, income per share, or return on equity
prepared in accordance with U.S. generally accepted accounting
principles (GAAP). Reconciliations of net income, net income
per diluted share, and return on equity to non-GAAP operating
income, non-GAAP operating income per diluted share, and non-GAAP
operating return on equity, respectively, are provided in the
tables below.
Note: All amounts included in this release exclude intercompany
transactions.
Reconciliation of Net Income to Non-GAAP Operating
Income
$ in
millions
|
Quarter ended
December 31,
|
|
Year-to-Date
December 31,
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income
|
$
|
45.8
|
|
|
30.2
|
|
|
178.9
|
|
|
168.8
|
|
Net realized and
unrealized losses (gains), before tax
|
37.9
|
|
|
1.1
|
|
|
54.9
|
|
|
(6.4)
|
|
Tax on net realized
and unrealized losses (gains)
|
(11.7)
|
|
|
(0.3)
|
|
|
(15.3)
|
|
|
2.2
|
|
Net realized and
unrealized losses (gains)
|
26.2
|
|
|
0.7
|
|
|
39.6
|
|
|
(4.1)
|
|
Tax reform
impact2
|
—
|
|
|
20.2
|
|
|
—
|
|
|
20.2
|
|
Non-GAAP operating
income
|
$
|
72.0
|
|
|
51.2
|
|
|
218.6
|
|
|
184.9
|
|
Reconciliation of Net Income per Diluted Share to Non-GAAP
Operating Income per Diluted Share
|
Quarter ended
December 31,
|
|
Year-to-Date
December 31,
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income per
diluted share
|
$
|
0.76
|
|
|
0.51
|
|
|
3.00
|
|
|
2.84
|
|
Net realized and
unrealized losses (gains), before tax
|
0.63
|
|
|
0.02
|
|
|
0.92
|
|
|
(0.11)
|
|
Tax on net realized
and unrealized losses (gains)
|
(0.20)
|
|
|
(0.01)
|
|
|
(0.26)
|
|
|
0.04
|
|
Net realized and
unrealized losses (gains)
|
0.44
|
|
|
0.01
|
|
|
0.66
|
|
|
(0.07)
|
|
Tax reform
impact2
|
—
|
|
|
0.34
|
|
|
—
|
|
|
0.34
|
|
Non-GAAP operating
income per diluted share
|
$
|
1.20
|
|
|
0.86
|
|
|
3.66
|
|
|
3.11
|
|
Reconciliation of Return on Equity to Non-GAAP Operating
Return on Equity
|
Quarter ended
December 31,
|
|
Year-to-Date
December 31,
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Annualized Return on
Equity
|
10.4
|
%
|
|
7.1
|
|
|
10.2
|
|
|
10.4
|
|
Net realized and
unrealized losses (gains), before tax
|
8.6
|
|
|
0.3
|
|
|
3.1
|
|
|
(0.4)
|
|
Tax on net realized
and unrealized losses (gains)
|
(2.7)
|
|
|
(0.1)
|
|
|
(0.8)
|
|
|
0.2
|
|
Net realized and
unrealized losses (gains)
|
5.9
|
|
|
0.2
|
|
|
2.3
|
|
|
(0.2)
|
|
Tax reform
impact2
|
—
|
|
|
4.7
|
|
|
—
|
|
|
1.2
|
|
Annualized Non-GAAP
Operating Return on Equity
|
16.3
|
%
|
|
12.0
|
|
|
12.5
|
|
|
11.4
|
|
Note: Amounts in the tables above may not foot due to
rounding.
2 Deferred tax write-off that was recognized in
the fourth quarter of 2017 in relation to the adoption of tax
reform.
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;
- the impact of changes in U.S. trade policies and imposition of
tariffs on imports that may lead to higher than anticipated
inflationary trends for our loss and loss adjustment expenses;
- 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 Investors
page of Selective's website, www.Selective.com, or through the
SEC's EDGAR Database at www.sec.gov (Selective EDGAR CIK No.
0000230557).
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SOURCE Selective Insurance Group, Inc.