BRANCHVILLE, N.J., Oct. 27, 2021 /PRNewswire/ -- Selective Insurance
Group, Inc. (NASDAQ: SIGI) reported financial results for the third
quarter ended September 30, 2021,
with net income per diluted common share of $1.18. Non-GAAP operating
income1 per diluted common share was also
$1.18. The third quarter combined
ratio was a profitable 98.6%, despite $76
million of net catastrophe losses, or 10.0 points on the
combined ratio. Hurricane Ida accounted for $43 million of net catastrophe losses, with a
number of other events accounting for the remainder. Overall NPW
increased 13% from a year ago, driven primarily by continued
renewal pure price increases, solid retention rates, and strong new
business growth. The Investments segment contributed 11.0 points of
annualized ROE, principally due to exceptionally strong alternative
investment returns.
![(PRNewsfoto/Selective Insurance Group, Inc.) (PRNewsfoto/Selective Insurance Group, Inc.)](https://mma.prnewswire.com/media/942365/Selective__Logo.jpg)
"We generated profitable underwriting results and delivered a
solid ROE in the third quarter despite elevated catastrophe losses
for the industry and Selective. Our 14.5% non-GAAP operating ROE
for the first nine months builds on our seven-year track record of
double-digit operating ROEs. I am proud of our strong and
consistent operating performance and the strength of our balance
sheet and capital position. We are well-positioned, with
high-quality distribution partner relationships and superior
underwriting capabilities, as we look ahead to 2022," said
John Marchioni, President and
CEO.
Operating
Highlights
|
|
Consolidated
Financial Results
|
Quarter ended
September 30,
|
Change
|
Year-to-Date
September 30,
|
Change
|
$ and shares in
millions, except per share data
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net premiums
written
|
$
|
812.9
|
|
719.5
|
|
13
|
%
|
$
|
2,444.3
|
|
2,091.6
|
|
17
|
%
|
Net premiums
earned
|
767.2
|
|
694.5
|
|
10
|
|
2,232.7
|
|
1,976.9
|
|
13
|
|
Net investment income
earned
|
93.0
|
|
68.2
|
|
36
|
|
246.5
|
|
158.6
|
|
55
|
|
Net realized and
unrealized gains (losses), pre-tax
|
0.2
|
|
7.7
|
|
(98)
|
|
15.4
|
|
(24.3)
|
|
(163)
|
|
Total
revenues
|
865.0
|
|
776.6
|
|
11
|
|
2,509.5
|
|
2,123.8
|
|
18
|
|
Net underwriting
income, after-tax
|
8.6
|
|
16.6
|
|
(48)
|
|
130.0
|
|
41.3
|
|
215
|
|
Net investment
income, after-tax
|
74.7
|
|
55.1
|
|
35
|
|
198.5
|
|
129.2
|
|
54
|
|
Net income available
to common stockholders
|
71.4
|
|
69.9
|
|
2
|
|
297.8
|
|
119.3
|
|
150
|
|
Non-GAAP operating
income1
|
71.3
|
|
63.8
|
|
12
|
|
285.7
|
|
138.5
|
|
106
|
|
Combined
ratio
|
98.6
|
%
|
97.0
|
|
1.6
|
pts
|
92.6
|
%
|
97.4
|
|
(4.8)
|
pts
|
Loss and loss expense
ratio
|
65.9
|
|
64.5
|
|
1.4
|
|
60.0
|
|
63.4
|
|
(3.4)
|
|
Underwriting expense
ratio
|
32.6
|
|
32.4
|
|
0.2
|
|
32.4
|
|
33.9
|
|
(1.5)
|
|
Dividends to
policyholders ratio
|
0.1
|
|
0.1
|
|
—
|
|
0.2
|
|
0.1
|
|
0.1
|
|
Net catastrophe
losses
|
10.0
|
pts
|
11.4
|
|
(1.4)
|
|
5.8
|
pts
|
9.9
|
|
(4.1)
|
|
Non-catastrophe
property losses and loss expenses
|
16.1
|
|
15.2
|
|
0.9
|
|
15.5
|
|
14.9
|
|
0.6
|
|
(Favorable) prior
year reserve development on casualty lines
|
(1.8)
|
|
(3.6)
|
|
1.8
|
|
(3.0)
|
|
(2.5)
|
|
(0.5)
|
|
Net income available
to common stockholders per diluted common share
|
$
|
1.18
|
|
1.16
|
|
2
|
%
|
$
|
4.92
|
|
1.98
|
|
148
|
%
|
Non-GAAP operating
income per diluted common share1
|
1.18
|
|
1.06
|
|
11
|
|
4.72
|
|
2.30
|
|
105
|
|
Weighted average
diluted common shares
|
60.6
|
|
60.4
|
|
—
|
|
60.5
|
|
60.3
|
|
—
|
|
Book value per common
share
|
$
|
45.27
|
|
40.00
|
|
13
|
|
45.27
|
|
40.00
|
|
13
|
|
Overall Insurance Operations
For the third quarter, overall NPW increased 13% from a year
ago. The increase in NPW reflected overall renewal pure price
increases averaging 4.9%, solid retention rates, and new business
growth of 20%. Our combined ratio was 98.6% in the quarter,
compared to 97.0% a year ago. Both periods included elevated levels
of net catastrophe losses with 10.0 points in the third quarter of
2021 and 11.4 points in the third quarter of 2020, both well above
our longer-term averages. Our Insurance Operations generated 1.3
points of annualized ROE in the quarter.
Standard Commercial Lines Segment
For the third quarter, Standard Commercial Lines premiums,
representing 80% of total NPW, increased 13% compared to a year
ago. Renewal pure price increases that averaged 5.3%, solid
retention rates, and new business growth of 24% drove the NPW
growth. The third quarter combined ratio was 97.2%, up 4.9 points
from a year ago, driven by the items listed in the table below.
Standard
Commercial Lines Segment
|
Quarter ended
September 30,
|
Change
|
Year-to-Date
September 30,
|
Change
|
$ in
millions
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net premiums
written
|
$
|
652.6
|
|
577.8
|
|
13
|
%
|
$
|
1,995.3
|
|
1,679.5
|
|
19
|
%
|
Net premiums
earned
|
619.6
|
|
558.1
|
|
11
|
|
1,808.5
|
|
1,575.7
|
|
15
|
|
Combined
ratio
|
97.2
|
%
|
92.3
|
|
4.9
|
pts
|
91.4
|
%
|
95.1
|
|
(3.7)
|
pts
|
Loss and loss expense
ratio
|
63.5
|
|
59.3
|
|
4.2
|
|
57.9
|
|
60.3
|
|
(2.4)
|
|
Underwriting expense
ratio
|
33.5
|
|
32.9
|
|
0.6
|
|
33.3
|
|
34.7
|
|
(1.4)
|
|
Dividends to
policyholders ratio
|
0.2
|
|
0.1
|
|
0.1
|
|
0.2
|
|
0.1
|
|
0.1
|
|
Net catastrophe
losses
|
8.1
|
pts
|
7.0
|
|
1.1
|
|
4.3
|
pts
|
7.0
|
|
(2.7)
|
|
Non-catastrophe
property losses and loss expenses
|
14.5
|
|
13.5
|
|
1.0
|
|
13.7
|
|
13.7
|
|
—
|
|
(Favorable)
prior-year reserve development on casualty lines
|
(2.3)
|
|
(4.5)
|
|
2.2
|
|
(3.3)
|
|
(3.2)
|
|
(0.1)
|
|
Standard Personal Lines Segment
For the third quarter, Standard Personal Lines premiums,
representing 10% of total NPW, were down 2% compared to the
prior-year period. Renewal pure price increases averaged 1.2%,
retention was 84%, and new business was down 15% compared to the
prior year. The third quarter combined ratio was 115.2%, down
3.8 points from a year ago, driven by the items listed in the table
below.
Standard Personal
Lines Segment
|
Quarter ended
September 30,
|
Change
|
Year-to-Date
September 30,
|
Change
|
$ in
millions
|
2021
|
|
2020
|
2021
|
|
2020
|
|
Net premiums
written
|
$
|
78.2
|
|
79.7
|
|
(2)
|
%
|
$
|
221.9
|
|
225.5
|
|
(2)
|
%
|
Net premiums
earned
|
73.4
|
|
76.0
|
|
(3)
|
|
220.5
|
|
223.7
|
|
(1)
|
|
Combined
ratio
|
115.2
|
%
|
119.0
|
|
(3.8)
|
pts
|
99.0
|
%
|
109.1
|
|
(10.1)
|
pts
|
Loss and loss expense
ratio
|
88.8
|
|
91.7
|
|
(2.9)
|
|
72.7
|
|
81.4
|
|
(8.7)
|
|
Underwriting expense
ratio
|
26.4
|
|
27.3
|
|
(0.9)
|
|
26.3
|
|
27.7
|
|
(1.4)
|
|
Net catastrophe
losses
|
26.7
|
pts
|
37.4
|
|
(10.7)
|
|
13.7
|
pts
|
29.7
|
|
(16.0)
|
|
Non-catastrophe
property losses and loss expenses
|
39.1
|
|
29.5
|
|
9.6
|
|
34.8
|
|
27.1
|
|
7.7
|
|
(Favorable)
prior-year reserve development on casualty lines
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Excess and Surplus Lines Segment
For the third quarter, Excess and Surplus Lines premiums,
representing 10% of total NPW, were up 32% compared to the
prior-year period, driven by renewal pure price increases that
averaged 5.6%, increased retention rates, and new business growth
of 20%. The third quarter combined ratio was 93.7%, down 18.3
points from a year ago, driven by the items listed in the table
below.
Excess and Surplus
Lines Segment
|
Quarter ended
September 30,
|
Change
|
Year-to-Date
September 30,
|
Change
|
$ in
millions
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net premiums
written
|
$
|
82.1
|
|
62.1
|
|
32
|
%
|
$
|
227.1
|
|
186.6
|
|
22
|
%
|
Net premiums
earned
|
74.3
|
|
60.5
|
|
23
|
|
203.8
|
|
177.5
|
|
15
|
|
Combined
ratio
|
93.7
|
%
|
112.0
|
|
(18.3)
|
pts
|
96.3
|
%
|
102.2
|
|
(5.9)
|
pts
|
Loss and loss expense
ratio
|
62.8
|
|
77.8
|
|
(15.0)
|
|
64.7
|
|
67.4
|
|
(2.7)
|
|
Underwriting expense
ratio
|
30.9
|
|
34.2
|
|
(3.3)
|
|
31.6
|
|
34.8
|
|
(3.2)
|
|
Net catastrophe
losses
|
9.2
|
pts
|
19.5
|
|
(10.3)
|
|
10.5
|
pts
|
10.6
|
|
(0.1)
|
|
Non-catastrophe
property losses and loss expenses
|
6.5
|
|
13.2
|
|
(6.7)
|
|
10.5
|
|
10.9
|
|
(0.4)
|
|
(Favorable) prior
year reserve development on casualty lines
|
—
|
|
—
|
|
—
|
|
(3.4)
|
|
—
|
|
(3.4)
|
|
Investments Segment
For the third quarter, net investment income, after-tax, of
$75 million was up $20 million, or 35%, compared to the third
quarter of 2020. Alternative investments, which are reported on a
one-quarter lag, drove the increase with $34
million in after-tax gains, an increase of $19 million from the third quarter of 2020. For
the quarter, the after-tax earned income yield on the overall
portfolio averaged 3.8%, and the after-tax earned income yield on
the fixed income securities portfolio averaged 2.5%. For the third
quarter, the investment portfolio generated 11.0 points of
annualized ROE. Invested assets per dollar of common stockholders'
equity was $2.89 at September 30, 2021.
Investments
Segment
|
Quarter ended
September 30,
|
Change
|
|
Year-to-Date
September 30,
|
Change
|
$ in millions,
except per share data
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net investment income
earned, after-tax
|
$
|
74.7
|
|
55.1
|
|
35
|
%
|
$
|
198.5
|
|
129.2
|
|
54
|
%
|
Net investment income
per common share
|
1.23
|
|
0.91
|
|
35
|
|
3.28
|
|
2.14
|
|
53
|
|
Effective tax
rate
|
19.7
|
%
|
19.1
|
|
0.6
|
pts
|
19.5
|
%
|
18.6
|
|
0.9
|
pts
|
Average
yields:
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
4.8
|
|
3.8
|
|
1.0
|
|
4.3
|
|
3.0
|
|
1.3
|
|
After-tax
|
3.8
|
|
3.1
|
|
0.7
|
|
3.4
|
|
2.5
|
|
0.9
|
|
Fixed income
securities:
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
3.1
|
%
|
3.2
|
|
(0.1)
|
pts
|
3.2
|
%
|
3.2
|
|
—
|
pts
|
After-tax
|
2.5
|
|
2.6
|
|
(0.1)
|
|
2.6
|
|
2.6
|
|
—
|
|
Annualized ROE
contribution
|
11.0
|
|
9.4
|
|
1.6
|
|
10.1
|
|
7.5
|
|
2.6
|
|
Balance
Sheet
|
|
$ in millions, except
per share data
|
September 30,
2021
|
|
December 31,
2020
|
|
Change
|
Total
assets
|
$
|
10,442.2
|
|
|
9,687.9
|
|
|
8
|
%
|
Total
investments
|
7,859.2
|
|
|
7,505.6
|
|
|
5
|
|
Long-term
debt
|
500.9
|
|
|
550.7
|
|
|
(9)
|
|
Stockholders'
equity
|
2,922.1
|
|
|
2,738.9
|
|
|
7
|
|
Common stockholders'
equity
|
2,722.1
|
|
|
2,538.9
|
|
|
7
|
|
Invested assets per
dollar of common stockholders' equity
|
2.89
|
|
|
2.96
|
|
|
(2)
|
|
Net premiums written
to policyholders' surplus
|
1.35
|
x
|
|
1.30
|
x
|
|
0.05
|
x
|
Book value per common
share
|
$
|
45.27
|
|
|
42.38
|
|
|
7
|
|
Debt to total
capitalization
|
14.6
|
%
|
|
16.7
|
%
|
|
(2.1)
|
pts
|
Book value per common share was up 7% in the first nine months
of 2021. The increase was driven by $4.92 of net income per diluted common share,
partially offset by (i) a $1.36
reduction in net unrealized gains on our fixed income securities
portfolio from higher long-term interest rates in 2021, and (ii)
$0.75 of dividends on our common
stock paid to shareholders. During the first nine months of 2021,
the Company repurchased 52,781 shares at an average price of
$64.49 per share for a total of
$3.4 million, with all share
repurchases made in the first quarter. Capacity under our existing
repurchase authorization remained at $96.6
million as of September 30,
2021.
Selective's Board of Directors declared:
- A 12% increase in the quarterly cash dividend on common stock,
to $0.28 per common share, that is
payable December 1, 2021, to holders
of record on November 15, 2021;
and
- A cash dividend of $287.50 per
share on our 4.60% Non-Cumulative Preferred Stock, Series B
(equivalent to $0.28750 per
depository share) payable on December 15,
2021, to holders of record as of November 30, 2021.
Guidance
For 2021, Selective has revised its full-year guidance as
follows:
- A GAAP combined ratio, excluding net catastrophe losses, of 88%
(prior guidance 89%) that assumes no fourth quarter prior-year
casualty reserve development;
- Net catastrophe losses of 5.0 points (prior guidance 4.0
points) on the combined ratio;
- After-tax net investment income of $240
million (prior guidance $220
million) that includes $75
million (prior guidance of $55
million) in after-tax net investment income from our
alternative investments;
- An overall effective tax rate of approximately 20.5% that
includes an effective tax rate of 19.5% (prior guidance 19.0%) for
net investment income and 21.0% for all other items; and
- Weighted average shares of 60.5 million on a fully diluted
basis.
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 9:00 a.m.
ET, on Thursday, October 28,
2021, at www.Selective.com. The webcast will be
available for rebroadcast until the close of business on
November 27, 2021.
About Selective Insurance Group, Inc.
Selective
Insurance Group, Inc. is a holding company for 10 property and
casualty insurance companies rated "A" (Excellent) by AM
Best. Through independent agents, the insurance companies
offer standard and specialty insurance for commercial and personal
risks and flood insurance through the National Flood Insurance
Program's Write Your Own Program. Selective's unique position as
both a leading insurance group and an employer of choice is
recognized in a wide variety of awards and honors, including
listing in the Fortune 1000 and being named one of "America's Best
Mid-Size Employers" by Forbes Magazine. For more information
about Selective, visit www.Selective.com.
1Reconciliation of Net Income Available
to Common Stockholders to Non-GAAP Operating Income and Certain
Other Non-GAAP Measures Non-GAAP operating income, non-GAAP
operating income per diluted common share, and non-GAAP operating
return on common equity differ from net income available to common
stockholders, net income available to common stockholders per
diluted common share, and return on common equity, respectively, by
the exclusion of after-tax net realized and unrealized gains and
losses on investments. They are used as important financial
measures by management, analysts, and investors, because the timing
of realized investment gains and losses on sales of securities in
any given period is largely discretionary. In addition, net
realized and unrealized gains and losses on investments that are
charged to earnings could distort the analysis of trends.
These operating measurements are not intended as a substitute for
net income available to common stockholders, net income available
to common stockholders per diluted common share, and return on
common equity prepared in accordance with U.S. generally accepted
accounting principles (GAAP). Reconciliations of net income
available to common stockholders, net income available to common
stockholders per diluted common share, and return on common equity
to non-GAAP operating income, non-GAAP operating income per diluted
common share, and non-GAAP operating return on common equity,
respectively, are provided in the tables below.
|
|
Note: All amounts
included in this release exclude intercompany
transactions.
|
Reconciliation of
Net Income Available to Common Stockholders to Non-GAAP Operating
Income
|
|
$ in
millions
|
Quarter ended
September 30,
|
|
Year-to-Date
September 30,
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income available
to common stockholders
|
$
|
71.4
|
|
|
69.9
|
|
|
297.8
|
|
|
119.3
|
|
Net realized and
unrealized (gains) losses, before tax
|
(0.2)
|
|
|
(7.7)
|
|
|
(15.4)
|
|
|
24.3
|
|
Tax on reconciling
items
|
—
|
|
|
1.6
|
|
|
3.2
|
|
|
(5.1)
|
|
Non-GAAP operating
income
|
$
|
71.3
|
|
|
63.8
|
|
|
285.7
|
|
|
138.5
|
|
|
Reconciliation of
Net Income Available to Common Stockholders per Diluted Common
Share to Non-GAAP Operating Income per
Diluted Common Share
|
|
|
Quarter ended
September 30,
|
|
Year-to-Date
September 30,
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income available
to common stockholders per diluted common share
|
$
|
1.18
|
|
|
1.16
|
|
|
4.92
|
|
|
1.98
|
|
Net realized and
unrealized (gains) losses, before tax
|
—
|
|
|
(0.13)
|
|
|
(0.25)
|
|
|
0.40
|
|
Tax on reconciling
items
|
—
|
|
|
0.03
|
|
|
0.05
|
|
|
(0.08)
|
|
Non-GAAP operating
income per diluted common share
|
$
|
1.18
|
|
|
1.06
|
|
|
4.72
|
|
|
2.30
|
|
|
Reconciliation of
Return on Equity to Non-GAAP Operating Return on
Equity
|
|
|
Quarter ended
September 30,
|
|
Year-to-Date
September 30,
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Annualized Return on
Equity
|
10.6
|
%
|
|
11.9
|
|
|
15.1
|
|
|
6.9
|
|
Net realized and
unrealized (gains) losses, before tax
|
—
|
|
|
(1.3)
|
|
|
(0.8)
|
|
|
1.4
|
|
Tax on reconciling
items
|
—
|
|
|
0.3
|
|
|
0.2
|
|
|
(0.3)
|
|
Annualized Non-GAAP
Operating Return on Equity
|
10.6
|
%
|
|
10.9
|
|
|
14.5
|
|
|
8.0
|
|
|
Note: Amounts in the
tables above may not foot due to rounding.
|
Forward-Looking Statements
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 for any reason.
Factors that could cause our actual results to differ materially
from what we project, forecast, or estimate in forward-looking
statements, include without limitation:
- Related to COVID-19:
-
- Governmental directives to contain or delay the spread of the
COVID-19 pandemic have disrupted ordinary business commerce and
impacted financial markets. These governmental actions, the extent,
duration, and possible alteration based on future COVID-19-related
developments that we cannot predict, could materially and adversely
affect our results of operations, net investment income, financial
position, and liquidity.
- The amount of premium we record may be reduced and our
underwriting results may be adversely impacted by (i) voluntary
premium credits on in-force commercial and personal automobile
policies, (ii) state insurance commissioner or other regulatory
directives to implement premium-based credit in lines other than
commercial and personal automobile, and we may be required to
return more premium than warranted by our filed rating plans and
actual loss experience, (iii) the effects of our voluntary efforts
or the directives from various state insurance regulators to extend
individualized payment flexibility and suspend policy
cancellations, late payment notices, and late or reinstatement
fees, (iv) return premiums that could be significant because our
general liability and workers compensation policies provide for
premium audit of revenues and payrolls, and (v) collectability of
premiums, which may be impacted by policyholder financial distress
and insolvency.
- Our loss and loss expenses may increase, our related reserves
may not be adequate, and our financial condition and liquidity may
be materially impacted if litigation or changes in statutory or
common law (i) require payment of COVID-19-related business
interruption losses despite contrary terms, conditions, and
exclusions in our policies or (ii) presume that COVID-19 is a
work-related illness compensable under workers compensation
policies for employees who contract the virus, regardless of
whether they worked in industries defined as essential in various
COVID-19-related governmental directives or interacted with the
public as part of their job duties.
- Our net investment income may be impacted by the significant
equity and debt financial market volatility resulting from the
COVID-19 pandemic and the related governmental orders because (i)
financial market volatility is reflected in our alternative
investments' performance, (ii) increased spreads on fixed income
securities may create mark-to-market investment valuation losses
that reduce unrealized capital gains and impact GAAP equity, and
(iii) net realized losses may increase if we intend to sell more
securities, particularly in asset classes that are more
significantly impacted by COVID-19-related governmental directives
and to which the Federal Reserve Board is providing liquidity and
structural support.
- To varying degrees, the effect, lifting, or lapsing of
COVID-19-related governmental directives in 2021 have disrupted
supply chains and caused shortages of products, services, and
labor. These shortages may impact our ability to attract and retain
labor, including increasing attrition rates, wages, and the cost
and difficulty of obtaining third-party non-U.S.-based
resources.
- Difficult conditions in global capital markets and the economy,
including the risk of prolonged higher inflation, could increase
loss costs and negatively impact investment portfolios;
- Deterioration in the public debt and equity markets and private
investment marketplace that could lead to investment losses and
interest rate fluctuations;
- Ratings downgrades on individual securities we own could affect
investment values and, therefore, statutory surplus;
- The adequacy of our loss reserves and loss expense
reserves;
- Frequency and severity of natural and man-made catastrophic
events, including without limitation hurricanes, tornadoes,
windstorms, earthquakes, hail, terrorism, including cyber-attacks,
explosions, severe winter weather, floods, and fires;
- Adverse market, governmental, regulatory, legal, or judicial
conditions or actions;
- The geographic concentration of our business in the eastern
portion of the United States;
- The cost, terms and conditions, 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 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;
- The effects of data privacy or cyber security laws and
regulations on our operations;
- Major defect or failure in our internal controls or information
technology and application systems that result in harm to our brand
in the marketplace, increased senior executive focus on crisis and
reputational management issues and/or increased expenses,
particularly if we experience a significant privacy breach;
- Recent federal financial regulatory reform provisions that
could pose certain risks to our operations;
- Our ability to maintain favorable ratings from rating agencies,
including AM 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
that we cannot predict or assess may emerge from time-to-time.
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.