Net Income of $0.92 per Diluted Common Share and Non-GAAP
Operating Income1 of $0.99
per Diluted Common Share
Return on Common Equity ("ROE") of 9.1% and
Non-GAAP Operating ROE1 of 9.8%
In the second quarter of 2023:
- Net premiums written ("NPW") increased 17% compared to the
second quarter of 2022;
- GAAP combined ratio was 100.2%, inclusive of $100 million, or 10.6 points, of pre-tax net
catastrophe losses, compared to 95.5% in the second quarter of
2022;
- Commercial Lines renewal pure price increases averaged 6.7%,
compared to 5.3% in the second quarter of 2022;
- After-tax net investment income of $78
million, up 37% compared to the second quarter of 2022;
- Book value per common share was $40.81, unchanged in the second quarter; and
- Adjusted book value per common share¹ was $47.34, up 2% in the second quarter.
BRANCHVILLE, N.J., Aug. 2, 2023
/PRNewswire/ -- Selective Insurance Group, Inc. (NASDAQ: SIGI)
reported financial results for the second quarter ended
June 30, 2023, with net income per
diluted common share of $0.92 and
non-GAAP operating income1 per diluted common share of
$0.99. The second quarter
combined ratio was 100.2%, including 10.6 points of catastrophe
losses. Elevated catastrophe losses impacted each of our
underwriting segments, driven mainly by storms affecting our
Midwest and East Coast footprint states.
In the quarter, NPW grew 17% from a year ago with renewal pure
price increases, exposure growth, stable retention, and strong new
business. The investments segment generated 12.6 points of
annualized ROE in the quarter, benefiting from higher interest
rates and our active portfolio management.
"We delivered exceptional growth in the quarter, and I am
pleased with our team's commitment to serving customers through
many challenging weather events. Despite these elevated catastrophe
losses, we benefited from our consistent, disciplined underwriting
and excellent distribution partner relationships. We continue to
execute our long-term strategy for profitable growth," said
John J. Marchioni, Chairman,
President and Chief Executive Officer.
"Our unique operating model, with regionally-based underwriting,
claims, and safety management professionals, is a competitive
differentiator for Selective, enabling us to navigate successfully
through various market environments," added Mr. Marchioni.
Mr. Marchioni concluded, "We are well-positioned, with a strong
balance sheet, sophisticated underwriting capabilities, and robust
risk management, to deliver profitable growth through our existing
distribution partners and state footprint expansion."
Operating Highlights
Consolidated
Financial Results
|
Quarter ended June
30,
|
Change
|
Year-to-Date June
30,
|
Change
|
$ and shares in
millions, except per share data
|
2023
|
2022
|
2023
|
2022
|
Net premiums
written
|
$
1,084.9
|
|
930.7
|
17
|
%
|
$
2,084.7
|
|
1,820.5
|
15
|
%
|
Net premiums
earned
|
942.2
|
|
834.4
|
13
|
|
1,844.5
|
|
1,646.7
|
12
|
|
Net investment income
earned
|
97.7
|
|
70.2
|
39
|
|
189.2
|
|
142.8
|
32
|
|
Net realized and
unrealized gains (losses), pre-tax
|
(5.4)
|
|
(42.9)
|
(87)
|
|
(2.1)
|
|
(83.2)
|
(97)
|
|
Total
revenues
|
1,040.5
|
|
864.8
|
20
|
|
2,040.3
|
|
1,710.9
|
19
|
|
Net underwriting income
(loss), after-tax
|
(1.2)
|
|
29.8
|
(104)
|
|
29.7
|
|
73.9
|
(60)
|
|
Net investment income,
after-tax
|
77.8
|
|
56.7
|
37
|
|
150.9
|
|
115.2
|
31
|
|
Net income available to
common stockholders
|
56.3
|
|
37.2
|
51
|
|
146.6
|
|
91.3
|
61
|
|
Non-GAAP operating
income1
|
60.6
|
|
71.1
|
(15)
|
|
148.2
|
|
157.0
|
(6)
|
|
Combined
ratio
|
100.2
|
%
|
95.5
|
4.7
|
pts
|
98.0
|
%
|
94.3
|
3.7
|
pts
|
Loss and loss expense
ratio
|
68.6
|
|
62.9
|
5.7
|
|
65.8
|
|
61.8
|
4.0
|
|
Underwriting expense
ratio
|
31.4
|
|
32.5
|
(1.1)
|
|
32.0
|
|
32.3
|
(0.3)
|
|
Dividends to
policyholders ratio
|
0.2
|
|
0.1
|
0.1
|
|
0.2
|
|
0.2
|
—
|
|
Net catastrophe
losses
|
10.6
|
pts
|
5.5
|
5.1
|
|
8.4
|
pts
|
4.0
|
4.4
|
|
Non-catastrophe
property losses and loss expenses
|
16.7
|
|
16.6
|
0.1
|
|
16.6
|
|
17.5
|
(0.9)
|
|
(Favorable) prior year
reserve development on casualty lines
|
(0.4)
|
|
(1.4)
|
1.0
|
|
(0.9)
|
|
(1.9)
|
1.0
|
|
Net income available to
common stockholders per diluted common share
|
$ 0.92
|
|
0.61
|
51
|
%
|
$ 2.41
|
|
1.50
|
61
|
%
|
Non-GAAP operating
income per diluted common share1
|
0.99
|
|
1.17
|
(15)
|
|
2.44
|
|
2.58
|
(5)
|
|
Weighted average
diluted common shares
|
60.9
|
|
60.8
|
—
|
|
60.9
|
|
60.8
|
—
|
|
Book value per common
share
|
$ 40.81
|
|
39.68
|
3
|
|
40.81
|
|
39.68
|
3
|
|
Adjusted book value per
common share1
|
47.34
|
|
44.18
|
7
|
|
47.34
|
|
44.18
|
7
|
|
Overall Insurance Operations
For the second quarter, overall NPW increased 17%, or
$154 million, from a year ago
reflecting robust new business and effective management of our
renewal portfolio. Average renewal pure price increased 6.4%, with
strong retention and exposure growth. Our 100.2% combined ratio in
the quarter was up from 95.5% a year ago, driven principally by
higher catastrophe losses and lower prior year favorable casualty
reserve development. Catastrophe losses totaled $100.0 million pre-tax in the quarter, up from
$45.6 million in the second quarter
of 2022. Results in the current quarter were impacted by 19 named
events, with no single storm large enough to attach to our
catastrophe reinsurance treaty. Prior year favorable casualty
reserve development totaled $3.5
million, including $7.5
million from our workers compensation line of business that
was partially offset by $4.0 million
of unfavorable development in our personal auto line of business.
In the second quarter of 2022, prior year favorable casualty
reserve development totaled $12.0
million.
Standard Commercial Lines Segment
For the second quarter, Standard Commercial Lines premiums
(representing 80% of total NPW) increased 14% compared to a year
ago. The premium growth reflected average renewal pure price
increases of 6.7%, new business growth of 23%, strong exposure
growth, and consistent retention of 85%. The second quarter
combined ratio was 97.1%. The following table shows the variances
relative to the 93.1% combined ratio a year ago:
Standard Commercial
Lines Segment
|
Quarter ended June
30,
|
Change
|
Year-to-Date June
30,
|
Change
|
$ in
millions
|
2023
|
2022
|
2023
|
2022
|
Net premiums
written
|
$ 870.1
|
|
760.3
|
14
|
%
|
$
1,683.5
|
|
1,497.9
|
12
|
%
|
Net premiums
earned
|
762.7
|
|
680.2
|
12
|
|
1,494.3
|
|
1,341.7
|
11
|
|
Combined
ratio
|
97.1
|
%
|
93.1
|
4.0
|
pts
|
95.9
|
%
|
93.4
|
2.5
|
pts
|
Loss and loss expense
ratio
|
65.0
|
|
59.7
|
5.3
|
|
63.1
|
|
60.1
|
3.0
|
|
Underwriting expense
ratio
|
31.9
|
|
33.2
|
(1.3)
|
|
32.6
|
|
33.1
|
(0.5)
|
|
Dividends to
policyholders ratio
|
0.2
|
|
0.2
|
—
|
|
0.2
|
|
0.2
|
—
|
|
Net catastrophe
losses
|
8.2
|
pts
|
3.3
|
4.9
|
|
6.5
|
pts
|
2.8
|
3.7
|
|
Non-catastrophe
property losses and loss expenses
|
14.6
|
|
14.6
|
—
|
|
14.5
|
|
16.0
|
(1.5)
|
|
(Favorable) prior year
reserve development on casualty lines
|
(1.0)
|
|
(1.8)
|
0.8
|
|
(1.2)
|
|
(2.4)
|
1.2
|
|
Standard Personal Lines Segment
For the second quarter, Standard Personal Lines premiums
(representing 10% of total NPW) increased 32% compared to a year
ago. Renewal pure price increases averaged 3.4%, retention was 88%,
and new business was up $19.0 million
compared to last year as we continued our transition to the mass
affluent market. The second quarter combined ratio was 126.5%,
including 24.3 points of catastrophe losses and 4.6 points of
unfavorable casualty reserve development from the personal auto
line of business. The following table shows the variances relative
to the 116.9% combined ratio a year ago:
Standard Personal
Lines Segment
|
Quarter ended June
30,
|
Change
|
Year-to-Date June
30,
|
Change
|
$ in
millions
|
2023
|
2022
|
2023
|
2022
|
Net premiums
written
|
$ 109.1
|
|
82.6
|
32
|
%
|
$ 194.4
|
|
147.6
|
32
|
%
|
Net premiums
earned
|
87.2
|
|
73.3
|
19
|
|
169.0
|
|
146.0
|
16
|
|
Combined
ratio
|
126.5
|
%
|
116.9
|
9.6
|
pts
|
121.4
|
%
|
104.0
|
17.4
|
pts
|
Loss and loss expense
ratio
|
101.0
|
|
90.8
|
10.2
|
|
95.4
|
|
78.9
|
16.5
|
|
Underwriting expense
ratio
|
25.5
|
|
26.1
|
(0.6)
|
|
26.0
|
|
25.1
|
0.9
|
|
Net catastrophe
losses
|
24.3
|
pts
|
28.7
|
(4.4)
|
|
21.2
|
pts
|
17.4
|
3.8
|
|
Non-catastrophe
property losses and loss expenses
|
43.3
|
|
36.7
|
6.6
|
|
42.4
|
|
36.0
|
6.4
|
|
Unfavorable prior year
reserve development on casualty lines
|
4.6
|
|
—
|
4.6
|
|
3.5
|
|
—
|
3.5
|
|
Excess and Surplus Lines Segment
For the second quarter, Excess and Surplus Lines premiums
(representing 10% of total NPW) increased 20% compared to the
prior-year period, driven by average renewal pure price increases
of 7.5% and new business growth of 27%. The second quarter combined
ratio was 100.7%, including 17.6 points of catastrophe losses. The
following table shows the variances relative to the 95.8% combined
ratio a year ago:
Excess and Surplus
Lines Segment
|
Quarter ended June
30,
|
Change
|
Year-to-Date June
30,
|
Change
|
$ in
millions
|
2023
|
2022
|
2023
|
2022
|
Net premiums
written
|
$ 105.7
|
|
87.9
|
20
|
%
|
$ 206.8
|
|
175.0
|
18
|
%
|
Net premiums
earned
|
92.3
|
|
80.9
|
14
|
|
181.1
|
|
159.0
|
14
|
|
Combined
ratio
|
100.7
|
%
|
95.8
|
4.9
|
pts
|
93.0
|
%
|
93.5
|
(0.5)
|
pts
|
Loss and loss expense
ratio
|
67.9
|
|
63.5
|
4.4
|
|
60.5
|
|
61.3
|
(0.8)
|
|
Underwriting expense
ratio
|
32.8
|
|
32.3
|
0.5
|
|
32.5
|
|
32.2
|
0.3
|
|
Net catastrophe
losses
|
17.6
|
pts
|
2.8
|
14.8
|
|
12.1
|
pts
|
2.2
|
9.9
|
|
Non-catastrophe
property losses and loss expenses
|
8.8
|
|
15.4
|
(6.6)
|
|
9.4
|
|
13.6
|
(4.2)
|
|
(Favorable) prior year
reserve development on casualty lines
|
—
|
|
—
|
—
|
|
(2.8)
|
|
—
|
(2.8)
|
|
Investments Segment
For the second quarter, after-tax net investment income of
$78 million was 37% higher than the
prior year period. Pre-tax investment income from our fixed income
securities portfolio was up 35% compared to the second quarter of
2022, driven by higher book yields and the investment of operating
and investing cash flows over the past year. Pre-tax alternative
investment income of $11 million was
$2 million higher than the prior-year
period. Invested assets per dollar of common stockholders' equity
was $3.29 on June 30, 2023, and the investment portfolio
generated 12.6 points of non-GAAP operating ROE for the
quarter.
Investments
Segment
|
Quarter ended June
30,
|
Change
|
Year-to-Date June
30,
|
Change
|
$ in millions,
except per share data
|
2023
|
2022
|
2023
|
2022
|
Net investment income
earned, after-tax
|
$ 77.8
|
|
56.7
|
37
|
%
|
$ 150.9
|
|
115.2
|
31
|
%
|
Net investment income
per common share
|
1.28
|
|
0.93
|
38
|
|
2.48
|
|
1.89
|
31
|
|
Effective tax
rate
|
20.4
|
%
|
19.3
|
1.1
|
pts
|
20.3
|
%
|
19.4
|
0.9
|
pts
|
Average
yields:
|
|
|
|
|
|
|
|
|
|
|
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
4.9
|
|
3.7
|
1.2
|
|
4.7
|
|
3.7
|
1.0
|
|
After-tax
|
3.9
|
|
3.0
|
0.9
|
|
3.8
|
|
3.0
|
0.8
|
|
Fixed income
securities:
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
4.9
|
%
|
3.8
|
1.1
|
pts
|
4.8
|
%
|
3.5
|
1.3
|
pts
|
After-tax
|
3.9
|
|
3.1
|
0.8
|
|
3.8
|
|
2.8
|
1.0
|
|
Annualized ROE
contribution
|
12.6
|
|
9.1
|
3.5
|
|
12.5
|
|
8.9
|
3.6
|
|
Balance Sheet
$ in millions, except
per share data
|
June 30,
2023
|
|
December 31,
2022
|
|
Change
|
Total assets
|
$
11,217.2
|
|
|
10,802.3
|
|
|
4 %
|
|
Total
investments
|
8,133.2
|
|
|
7,837.5
|
|
|
4
|
|
Long-term
debt
|
503.6
|
|
|
504.7
|
|
|
—
|
|
Stockholders'
equity
|
2,671.4
|
|
|
2,527.6
|
|
|
6
|
|
Common stockholders'
equity
|
2,471.4
|
|
|
2,327.6
|
|
|
6
|
|
Invested assets per
dollar of common stockholders' equity
|
3.29
|
|
|
3.37
|
|
|
(2)
|
|
Net premiums written to
policyholders' surplus
|
1.52
|
|
|
1.44
|
|
|
0.08
|
|
Book value per common
share
|
$
40.81
|
|
|
38.57
|
|
|
6
|
|
Adjusted book value per
common share1
|
47.34
|
|
|
45.49
|
|
|
4
|
|
Debt to total
capitalization
|
15.9
|
%
|
|
16.6
|
%
|
|
(0.7)
|
pts
|
Book value per common share increased by $2.24, or 6%, during the first half of 2023. The
increase was primarily driven by $2.41 of net income per diluted common share and
a $0.35 reduction in after-tax net
unrealized losses on our fixed income securities portfolio,
partially offset by $0.60 of
dividends on our common stock paid to shareholders. During the
first half of 2023, the Company did not repurchase any shares of
common stock. Capacity under our existing repurchase authorization
was $84.2 million as of June 30, 2023.
Selective's Board of Directors declared:
- A quarterly cash dividend on common stock of $0.30 per common share that is payable
September 1, 2023, to holders of
record on August 15, 2023; and
- A cash dividend of $287.50 per
share on our 4.60% Non-Cumulative Preferred Stock, Series B
(equivalent to $0.28750 per
depositary share) payable on September 15,
2023, to holders of record as of August 31, 2023.
Guidance
For 2023, we increased our expectation for net catastrophe
losses while maintaining other full-year expectations as
follows:
- A GAAP combined ratio of 96.5%, including net catastrophe
losses of 6.0 points, up from prior guidance of 4.5 points. Our
combined ratio estimate assumes no additional prior year casualty
reserve development;
- After-tax net investment income of $300
million that includes $30
million of after-tax net investment income from our
alternative investments;
- An overall effective tax rate of approximately 21%, which
assumes an effective tax rate of 20% for net investment income and
21% for all other items; and
- Weighted average shares of 61 million on a fully diluted
basis.
The supplemental investor package, with financial information
not included in 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 11:00 AM ET, on Thursday,
August 3, 2023, on www.Selective.com. The webcast will be
available for rebroadcast until the close of business on
September 1, 2023.
About Selective Insurance Group, Inc.
Selective
Insurance Group, Inc. (Nasdaq: SIGI) is a holding company for 10
property and casualty insurance companies rated "A+" (Superior) 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 Forbes
Best Midsize Employers in 2023 and certification as a Great Place
to Work® in 2023 for the fourth consecutive year. 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 included in net income. Adjusted book value
per common share differs from book value per common share by
excluding total after-tax unrealized gains and losses on
investments included in accumulated other comprehensive (loss)
income. These non-GAAP measures are used as important financial
measures by management, analysts, and investors, because the timing
of realized and unrealized investment gains and losses on
securities in any given period is largely discretionary. In
addition, net realized and unrealized gains and losses on
investments could distort the analysis of trends. These operating
measurements are not intended to be a substitute for net income
available to common stockholders, net income available to common
stockholders per diluted common share, return on common equity, and
book value per common share 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, return on common
equity, and book value per common share to non-GAAP operating
income, non-GAAP operating income per diluted common share,
non-GAAP operating return on common equity, and adjusted book value
per common share, 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 June
30,
|
|
Year-to-Date June
30,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income available to
common stockholders
|
$
56.3
|
|
37.2
|
|
146.6
|
|
91.3
|
Net realized and
unrealized investment (gains) losses included in net income, before
tax
|
5.4
|
|
42.9
|
|
2.1
|
|
83.2
|
Tax on reconciling
items
|
(1.1)
|
|
(9.0)
|
|
(0.4)
|
|
(17.5)
|
Non-GAAP operating
income
|
$
60.6
|
|
71.1
|
|
148.2
|
|
157.0
|
Reconciliation of
Net Income Available to Common Stockholders per Diluted Common
Share to Non-GAAP Operating Income per
Diluted Common Share
|
|
Quarter ended June
30,
|
|
Year-to-Date June
30,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income available to
common stockholders per diluted common share
|
$
0.92
|
|
0.61
|
|
2.41
|
|
1.50
|
Net realized and
unrealized investment (gains) losses included in net income, before
tax
|
0.09
|
|
0.70
|
|
0.04
|
|
1.37
|
Tax on reconciling
items
|
(0.02)
|
|
(0.14)
|
|
(0.01)
|
|
(0.29)
|
Non-GAAP operating
income per diluted common share
|
$
0.99
|
|
1.17
|
|
2.44
|
|
2.58
|
Reconciliation of
Return on Common Equity to Non-GAAP Operating Return on Common
Equity
|
|
Quarter ended June
30,
|
|
Year-to-Date June
30,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Return on Common
Equity
|
9.1
|
%
|
|
6.0
|
|
12.1
|
|
7.1
|
Net realized and
unrealized investment (gains) losses included in net income, before
tax
|
0.9
|
|
|
6.9
|
|
0.1
|
|
6.4
|
Tax on reconciling
items
|
(0.2)
|
|
|
(1.5)
|
|
—
|
|
(1.4)
|
Non-GAAP Operating
Return on Common Equity
|
9.8
|
%
|
|
11.4
|
|
12.2
|
|
12.1
|
Reconciliation of
Book Value per Common Share to Adjusted Book Value per Common
Share
|
|
Quarter ended June
30,
|
|
Year-to-Date June
30,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Book value per common
share
|
$
40.81
|
|
39.68
|
|
40.81
|
|
39.68
|
Total unrealized
investment (gains) losses included in accumulated other
comprehensive
(loss) income, before tax
|
8.27
|
|
5.69
|
|
8.27
|
|
5.69
|
Tax on reconciling
items
|
(1.74)
|
|
(1.19)
|
|
(1.74)
|
|
(1.19)
|
Adjusted book value per
common share
|
47.34
|
|
44.18
|
|
47.34
|
|
44.18
|
|
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" defined
in the Private Securities Litigation Reform Act of 1995
("PSLRA"). The PSLRA provides a forward-looking statement
safe harbor under the Securities Act of 1933 and the Securities
Exchange Act of 1934. These statements discuss our intentions,
beliefs, projections, estimations, or forecasts of future events
and financial performance. They involve known and unknown risks,
uncertainties, and other factors that may cause our or our
industry's actual results, activity levels, or performance to
materially differ from those in or implied by the forward-looking
statements. In some cases, forward-looking statements include
the words "may," "will," "could," "would," "should," "expect,"
"plan," "anticipate," "target," "project," "intend," "believe,"
"estimate," "predict," "potential," "pro forma," "seek," "likely,"
"continue," or comparable terms. Our forward-looking
statements are only predictions, and we cannot guarantee or assure
that such expectations will prove correct. We undertake no
obligation to publicly update or revise any forward-looking
statements for any reason, except as may be required by law.
Factors that could cause our actual results to differ materially
from what we project, forecast, or estimate in forward-looking
statements include, without limitation:
- Challenging conditions in the economy, global capital markets,
the banking sector, and commercial real estate, including 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 catastrophic events, including
natural events that may be impacted by climate change, such as
hurricanes, severe convective storms, tornadoes, windstorms,
earthquakes, hail, severe winter weather, floods, and fires, and
man-made events such as criminal and terrorist acts, including
cyber-attacks, explosions, and civil unrest;
- Adverse market, governmental, regulatory, legal, or judicial
conditions or actions;
- The significant 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;
- Related to COVID-19:
-
- We have been successful in defending against payment of
COVID-19-related business interruption losses based on our
policies' terms, conditions, and exclusions. However, should the
highest courts determine otherwise, our loss and loss expenses may
increase, our related reserves may not be adequate, and our
financial condition and liquidity may be materially impacted.
- We cannot predict the amount our premiums may be reduced, or
the impact on our underwriting results, from any future (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, (iii) voluntary
efforts or directives from various state insurance regulators to
extend individualized payment flexibility or suspend policy
cancellation, late payment notices, and late or reinstatement fees,
or (iv) litigation brought by policyholders to recover premiums
they allege were excessive during the period of any
governmental directive.
- The ongoing Russian war against Ukraine is impacting global economic, banking,
commodity, and financial markets, exacerbating ongoing economic
challenges, including inflation and supply chain disruption, which
influences insurance loss costs, premiums, and investment
valuations;
- 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;
- Potential tax or federal financial regulatory reform provisions
that could pose certain risks to our operations;
- Our ability to maintain favorable financial ratings, which may
include sustainability considerations, 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 our
Annual Report on Form 10-K and other periodic reports.
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SOURCE Selective Insurance Group, Inc.