AM Best Revises Outlooks to Positive for Selective Insurance Group, Inc. and Its Subsidiaries
October 31 2019 - 8:35AM
Business Wire
AM Best has revised the outlooks to positive from stable
and affirmed the Financial Strength Rating (FSR) of A (Excellent)
and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of
the 10 pooled members of Selective Insurance Group (Selective).
Additionally, AM Best has revised the outlook to positive from
stable and 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]. All
companies are headquartered in Branchville, NJ. (Please see below
for a detailed listing of companies and ratings.)
These Credit Ratings (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
outlook reflects improved profitability over the past five years on
an absolute basis and relative to its peers. AM Best expects that
the group will 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 outlooks have been revised to positive from stable and 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 outlooks have been revised to positive from stable and the
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 $300.0 million 5.375% senior
unsecured notes, due 2049
The outlooks have been revised to positive from stable and the
following indicative Long-Term IRs have been affirmed for the 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 Understanding
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 rating agency and information provider
with an exclusive focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20191031005549/en/
Edin Imsirovic Senior Financial Analyst +1 908 439
2200, ext. 5740 edin.imsirovic@ambest.com
Jacqalene Lentz, CPA Director +1 908 439 2200,
ext. 5762 jacqalene.lentz@ambest.com
Christopher Sharkey Manager, Public Relations +1 908
439 2200, ext. 5159 christopher.sharkey@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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