EXHIBIT 99.2
Supplemental Investor Package ___________________________________________________ Second Quarter 2012 Investor Contact: Jennifer DiBerardino Senior Vice President, Investor Relations and Treasurer Tel: 973-948-1364 jennifer.diberardino@selective.com |
Selective Insurance Group, Inc. | ||||||||||||||||||||||||||||||||||||
Selected Balance Sheet Data (unaudited) | ||||||||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | December 31, | ||||||||||||||||||||||||||||||||||
2012 | 2011 | 2011 | ||||||||||||||||||||||||||||||||||
Unrecognized/ | Unrecognized/ | Unrecognized/ | ||||||||||||||||||||||||||||||||||
Balance | Market | Unrealized | Balance | Market | Unrealized | Balance | Market | Unrealized | ||||||||||||||||||||||||||||
Sheet | Value | Gain/(Loss) | Sheet | Value | Gain/(Loss) | Sheet | Value | Gain/(Loss) | ||||||||||||||||||||||||||||
Invested Assets: | ||||||||||||||||||||||||||||||||||||
Corporate bonds1 | $ | 2,127,036 | 776,480 | 26,312 | $ | 1,833,490 | 1,852,486 | 52,861 | $ | 1,967,498 | 1,981,909 | 73,085 | ||||||||||||||||||||||||
Gov't\ Municipal bonds | 1,639,471 | 3,034,507 | 172,001 | 1,762,325 | 1,793,729 | 91,461 | 1,642,223 | 1,673,508 | 108,694 | |||||||||||||||||||||||||||
Total bonds | 3,766,507 | 3,810,987 | 198,313 | 3,595,815 | 3,646,215 | 144,322 | 3,609,721 | 3,655,417 | 181,779 | |||||||||||||||||||||||||||
Equities | 148,117 | 148,117 | 17,860 | 136,577 | 136,577 | 8,390 | 157,355 | 157,355 | 13,529 | |||||||||||||||||||||||||||
Short-term investments | 135,823 | 135,823 | - | 142,809 | 142,809 | - | 217,044 | 217,044 | - | |||||||||||||||||||||||||||
Other investments | 125,540 | 125,540 | (4,517 | ) | 132,137 | 132,137 | (4,255 | ) | 128,301 | 128,301 | (4,520 | ) | ||||||||||||||||||||||||
Total invested assets | 4,175,987 | 4,220,467 | 211,656 | 4,007,338 | 4,057,738 | 148,457 | 4,112,421 | 4,158,117 | 190,788 | |||||||||||||||||||||||||||
Invested assets per $ of stockholders' equity2 | 3.85 | 3.83 | 3.89 | |||||||||||||||||||||||||||||||||
Total assets2 | 5,687,408 | 5,314,673 | 5,685,469 | |||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||
Reserve for losses and loss expenses | 3,044,363 | 2,898,592 | 3,144,924 | |||||||||||||||||||||||||||||||||
Unearned premium reserve | 970,806 | 858,627 | 906,991 | |||||||||||||||||||||||||||||||||
Total liabilities | 4,602,362 | 4,268,614 | 4,627,141 | |||||||||||||||||||||||||||||||||
Stockholders' equity2 | 1,085,046 | 1,046,059 | 1,058,328 | |||||||||||||||||||||||||||||||||
Total debt to capitalization ratio2 | 22.1 | % | 20.1 | % | 22.5 | % | ||||||||||||||||||||||||||||||
Adjusted total debt to capitalization ratio 2, 3 | 15.6 | % | 13.2 | % | 15.9 | % | ||||||||||||||||||||||||||||||
Book value per share2 | 19.75 | 19.31 | 19.45 | |||||||||||||||||||||||||||||||||
Book value per share excluding | ||||||||||||||||||||||||||||||||||||
unrealized gain or loss on bond portfolio2 | 17.93 | 18.19 | 17.82 | |||||||||||||||||||||||||||||||||
NPW per insurance segment employee (excludes E&S) | 807 | 760 | 791 | |||||||||||||||||||||||||||||||||
Statutory premiums to surplus ratio | 1.5 | x | 1.3 | x | 1.4 | x | ||||||||||||||||||||||||||||||
Statutory surplus | 1,067,881 | 1,070,297 | 1,062,707 |
1 Includes mortgage-backed and asset-backed securities. |
2 Prior year results have been restated to reflect the adoption of ASU 2010-26, "Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts." |
3 The adjusted debt to capitalization ratio reflects an estimated equity treatment of 90% applied to our $100 million Junior Subordinated Notes issued September 25, 2006 as applied by A.M. Best. |
Selective Insurance Group, Inc. | |||||||||||||||||||||||||||||||||
Selected Income Statement Data (unaudited) | |||||||||||||||||||||||||||||||||
June 2012 | THREE MONTHS ENDED June 30, | SIX MONTHS ENDED June 30, | |||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||
Per diluted share | Per diluted share | Per diluted share | Per diluted share | ||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||
Revenue | $ | 428,907 | $ | 399,570 | $ | 848,255 | $ | 803,026 | |||||||||||||||||||||||||
Operating income1 | 172 | 0.01 | 72 | - | 15,432 | 0.28 | 16,828 | 0.31 | |||||||||||||||||||||||||
Net realized gains, after tax | 116 | - | 1,395 | 0.03 | 2,949 | 0.05 | 5,139 | 0.09 | |||||||||||||||||||||||||
Net income1 | 288 | 0.01 | 1,467 | 0.03 | 18,381 | 0.33 | 21,967 | 0.40 | |||||||||||||||||||||||||
Operating return on equity1 | 0.1 | % | 0.0 | % | 2.9 | % | 3.3 | % | |||||||||||||||||||||||||
Insurance Operations | |||||||||||||||||||||||||||||||||
Gross premiums written | 512,267 | 449,132 | 1,010,222 | 878,127 | |||||||||||||||||||||||||||||
Net premiums written | 425,563 | 374,503 | 845,735 | 736,338 | |||||||||||||||||||||||||||||
Net premiums earned | 392,212 | 355,580 | 771,041 | 706,923 | |||||||||||||||||||||||||||||
Underwriting loss1 | - before tax | (26,962 | ) | (34,002 | ) | (28,325 | ) | (46,700 | ) | ||||||||||||||||||||||||
- after tax | (17,525 | ) | (0.31 | ) | (22,101 | ) | (0.40 | ) | (18,411 | ) | (0.33 | ) | (30,355 | ) | (0.55 | ) | |||||||||||||||||
GAAP combined ratio1 | 106.9 | % | 109.6 | % | 103.7 | % | 106.6 | % | |||||||||||||||||||||||||
Commercial lines | |||||||||||||||||||||||||||||||||
Net premiums earned | 322,256 | 290,295 | 632,476 | 577,058 | |||||||||||||||||||||||||||||
GAAP combined ratio1 | 106.1 | % | 108.1 | % | 103.8 | % | 105.1 | % | |||||||||||||||||||||||||
Personal lines | |||||||||||||||||||||||||||||||||
Net premiums earned | 69,956 | 65,285 | 138,565 | 129,865 | |||||||||||||||||||||||||||||
GAAP combined ratio1 | 110.6 | % | 116.2 | % | 103.1 | % | 113.1 | % | |||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
Net investment income | - before tax | 34,006 | 39,345 | 66,634 | 82,818 | ||||||||||||||||||||||||||||
- after tax | 25,710 | 0.46 | 29,420 | 0.53 | 50,485 | 0.91 | 61,545 | 1.12 | |||||||||||||||||||||||||
Effective tax rate | 24.4 | % | 25.2 | % | 24.2 | % | 25.7 | % | |||||||||||||||||||||||||
Annual after-tax yield on investment portfolio | 2.4 | % | 3.1 | % | |||||||||||||||||||||||||||||
Annual after-tax, after-interest expense yield | 2.1 | % | 2.8 | % | |||||||||||||||||||||||||||||
Invested assets per $ of stockholders' equity | 3.85 | 3.83 | |||||||||||||||||||||||||||||||
Other expenses (net of other income) | |||||||||||||||||||||||||||||||||
Interest expense | - before tax | (4,723 | ) | (4,559 | ) | (9,423 | ) | (9,116 | ) | ||||||||||||||||||||||||
- after tax | (3,070 | ) | (0.06 | ) | (2,963 | ) | (0.05 | ) | (6,125 | ) | (0.11 | ) | (5,925 | ) | (0.11 | ) | |||||||||||||||||
Other Expense - after tax | $ | (4,944 | ) | (0.08 | ) | $ | (4,284 | ) | (0.08 | ) | $ | (10,517 | ) | (0.19 | ) | $ | (8,437 | ) | (0.15 | ) | |||||||||||||
Diluted weighted avg shares outstanding | 55,681 | 55,135 | 55,642 | 55,092 |
1 Prior year results have been restated to reflect the adoption of ASU 2010-26, "Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts." |
Selective Insurance Group, Inc. and Consolidated Subsidiaries | |||||||||||||||||||||||||
GAAP Investment Income | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
For the three months ended | % | Year to Date | % | ||||||||||||||||||||||
June | June | Increase | June | June | Increase | ||||||||||||||||||||
2012 | 2011 | (Decrease) | 2012 | 2011 | (Decrease) | ||||||||||||||||||||
Investment Income: | |||||||||||||||||||||||||
Interest: | |||||||||||||||||||||||||
Fixed Maturity Securities | $ | 31,759 | 32,752 | (3.0 | ) | $ | 63,109 | 65,875 | (4.2 | ) | |||||||||||||||
Short-term | 29 | 33 | (12.1 | ) | 67 | 95 | (29.5 | ) | |||||||||||||||||
Other Investments: | |||||||||||||||||||||||||
Alternative Investments | 3,166 | 7,900 | (59.9 | ) | 5,461 | 19,541 | (72.1 | ) | |||||||||||||||||
Other | (203 | ) | - | N/M | (498 | ) | - | N/M | |||||||||||||||||
Dividends | 1,280 | 785 | 63.1 | 2,517 | 1,102 | 128.4 | |||||||||||||||||||
Miscellaneous | 25 | 22 | 13.6 | 64 | 47 | 36.2 | |||||||||||||||||||
36,056 | 41,492 | (13.1 | ) | 70,720 | 86,660 | (18.4 | ) | ||||||||||||||||||
Investment Expense | 2,050 | 2,147 | (4.5 | ) | 4,086 | 3,842 | 6.4 | ||||||||||||||||||
Net Investment Income Before Tax | 34,006 | 39,345 | (13.6 | ) | 66,634 | 82,818 | (19.5 | ) | |||||||||||||||||
Tax | 8,296 | 9,925 | (16.4 | ) | 16,149 | 21,273 | (24.1 | ) | |||||||||||||||||
Net Investment Income After Tax | $ | 25,710 | 29,420 | (12.6 | ) | $ | 50,485 | 61,545 | (18.0 | ) | |||||||||||||||
Net Investment Income per Share | $ | 0.46 | 0.53 | (13.2 | ) | $ | 0.91 | 1.12 | (18.8 | ) | |||||||||||||||
Effective Tax Rate | 24.4 | % | 25.2 | % | 24.2 | % | 25.7 | % | |||||||||||||||||
Average Yields : | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Pre Tax | 3.42 | % | 3.68 | % | |||||||||||||||||||||
After Tax | 2.59 | % | 2.81 | % | |||||||||||||||||||||
Portfolio: | |||||||||||||||||||||||||
Pre Tax | 3.22 | % | 4.18 | % | |||||||||||||||||||||
After Tax | 2.44 | % | 3.10 | % | |||||||||||||||||||||
For the three months ended | Year to date: | ||||||||||||||||||||||||
June | June | June | June | ||||||||||||||||||||||
Net Realized Gains(Losses) | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
Fixed Maturities | 177 | 1,678 | 361 | 1,235 | |||||||||||||||||||||
Equity Securities | - | 468 | 4,176 | 6,671 | |||||||||||||||||||||
Short Term | - | - | (2 | ) | - | ||||||||||||||||||||
Other Investments | 1 | - | 1 | - | |||||||||||||||||||||
Total | 178 | 2,146 | 4,536 | 7,906 | |||||||||||||||||||||
Net of Tax | 116 | 1,395 | 2,949 | 5,139 |
As of June 30, 2012 new money rates for taxable fixed maturity securities were 2.45% on a pre-tax basis and 1.86% on an after-tax basis.
Selective Insurance Group, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
2012 Statutory Results by Line of Business | ||||||||||||||||||||||||||||||||||||||||||||
2nd Qtr 2012 (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Underwriting | Dividends to | |||||||||||||||||||||||||||||||||||||||||
Premiums | Percent | Premiums | Percent | Loss | LAE | Expense | Policyholders | Combined Ratio | Combined Ratio | Underwriting | ||||||||||||||||||||||||||||||||||
Written | Change | Earned | Change | Ratio | Ratio | Ratio | Ratio | 2012 | 2011 | Gain/(Loss) | ||||||||||||||||||||||||||||||||||
Personal Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Homeowners | $ | 32,964 | 14.8 | % | $ | 28,808 | 15.0 | % | 80.9 | % | 7.6 | % | 31.2 | % | 0.0 | % | 119.7 | % | 127.0 | % | $ | (6,981 | ) | |||||||||||||||||||||
Auto | 40,166 | 2.4 | % | 37,897 | 1.9 | % | 68.7 | % | 11.8 | % | 30.0 | % | 0.0 | % | 110.5 | % | 114.8 | % | (4,639 | ) | ||||||||||||||||||||||||
Other (including flood) | 3,675 | 12.6 | % | 3,251 | 7.1 | % | 72.7 | % | (11.8 | )% | (56.5 | )% | 0.0 | % | 4.4 | % | 23.2 | % | 3,349 | |||||||||||||||||||||||||
Total | $ | 76,805 | 7.9 | % | $ | 69,956 | 7.2 | % | 74.0 | % | 8.9 | % | 26.3 | % | 0.0 | % | 109.2 | % | 115.3 | % | $ | (8,271 | ) | |||||||||||||||||||||
Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Commerical property | $ | 53,194 | 8.4 | % | $ | 50,377 | 5.2 | % | 72.9 | % | 5.8 | % | 37.5 | % | 0.1 | % | 116.3 | % | 130.9 | % | $ | (9,291 | ) | |||||||||||||||||||||
Workers compensation | 66,764 | 0.1 | % | 66,661 | 4.4 | % | 68.4 | % | 16.4 | % | 26.4 | % | 1.5 | % | 112.7 | % | 116.3 | % | (8,519 | ) | ||||||||||||||||||||||||
General liability | 99,222 | 9.7 | % | 92,632 | 8.1 | % | 51.0 | % | 18.0 | % | 33.3 | % | 0.0 | % | 102.3 | % | 103.0 | % | (4,361 | ) | ||||||||||||||||||||||||
Auto | 74,912 | 3.0 | % | 71,540 | 3.4 | % | 55.7 | % | 8.3 | % | 31.8 | % | 0.2 | % | 96.0 | % | 92.5 | % | 1,751 | |||||||||||||||||||||||||
Business owners policies | 17,956 | 7.7 | % | 17,266 | 5.2 | % | 48.8 | % | 14.3 | % | 40.2 | % | 0.0 | % | 103.3 | % | 120.3 | % | (841 | ) | ||||||||||||||||||||||||
Bonds | 5,531 | 8.1 | % | 4,700 | (0.5 | )% | 17.5 | % | 9.7 | % | 57.1 | % | 0.0 | % | 84.3 | % | 88.9 | % | 265 | |||||||||||||||||||||||||
Other | 31,179 | N/M | 19,080 | N/M | 45.2 | % | 17.6 | % | 41.6 | % | 0.0 | % | 104.4 | % | 44.1 | % | (5,861 | ) | ||||||||||||||||||||||||||
Total | $ | 348,758 | 15.0 | % | $ | 322,256 | 11.0 | % | 58.1 | % | 13.2 | % | 33.9 | % | 0.4 | % | 105.6 | % | 108.2 | % | $ | (26,858 | ) | |||||||||||||||||||||
Grand Total | $ | 425,563 | 13.6 | % | $ | 392,212 | 10.3 | % | 60.9 | % | 12.5 | % | 32.5 | % | 0.3 | % | 106.2 | % | 109.5 | % | $ | (35,129 | ) | |||||||||||||||||||||
Note: Some amounts may not foot due to rounding. | ||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||
Losses Paid | $ | 232,122 | $ | 208,085 | ||||||||||||||||||||||||||||||||||||||||
LAE Paid | 41,031 | 39,894 | ||||||||||||||||||||||||||||||||||||||||||
Total Paid | $ | 273,153 | $ | 247,979 |
Selective Insurance Group, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
2012 Statutory Results by Line of Business | ||||||||||||||||||||||||||||||||||||||||||||
June 2012 YTD (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Net | Net | Underwriting | Dividends to | |||||||||||||||||||||||||||||||||||||||||
Premiums | Percent | Premiums | Percent | Loss | LAE | Expense | Policyholders | Combined Ratio | Combined Ratio | Underwriting | ||||||||||||||||||||||||||||||||||
Written | Change | Earned | Change | Ratio | Ratio | Ratio | Ratio | 2012 | 2011 | Gain/(Loss) | ||||||||||||||||||||||||||||||||||
Personal Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Homeowners | $ | 58,171 | 14.3 | % | $ | 56,766 | 14.4 | % | 63.4 | % | 9.8 | % | 32.6 | % | 0.0 | % | 105.8 | % | 119.3 | % | $ | (3,769 | ) | |||||||||||||||||||||
Auto | 77,441 | 2.4 | % | 75,353 | 1.6 | % | 68.1 | % | 12.0 | % | 30.0 | % | 0.0 | % | 110.1 | % | 116.8 | % | (8,264 | ) | ||||||||||||||||||||||||
Other (including flood) | 6,738 | 9.2 | % | 6,446 | 5.7 | % | 61.5 | % | (3.9 | )% | (51.8 | )% | 0.0 | % | 5.8 | % | 20.9 | % | 6,224 | |||||||||||||||||||||||||
Total | $ | 142,351 | 7.3 | % | $ | 138,565 | 6.7 | % | 65.9 | % | 10.3 | % | 27.2 | % | 0.0 | % | 103.4 | % | 113.3 | % | $ | (5,809 | ) | |||||||||||||||||||||
Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Commerical property | $ | 106,222 | 9.1 | % | $ | 99,748 | 3.8 | % | 56.8 | % | 6.0 | % | 37.5 | % | 0.0 | % | 100.3 | % | 108.8 | % | $ | (2,711 | ) | |||||||||||||||||||||
Workers compensation | 139,952 | 4.1 | % | 132,472 | 4.8 | % | 68.3 | % | 16.3 | % | 25.6 | % | 1.6 | % | 111.8 | % | 119.5 | % | (17,510 | ) | ||||||||||||||||||||||||
General liability | 199,850 | 11.5 | % | 182,775 | 8.6 | % | 50.9 | % | 17.7 | % | 32.7 | % | 0.0 | % | 101.3 | % | 101.7 | % | (7,891 | ) | ||||||||||||||||||||||||
Auto | 150,750 | 4.3 | % | 142,024 | 2.3 | % | 56.8 | % | 8.3 | % | 31.2 | % | 0.0 | % | 96.3 | % | 92.4 | % | 2,474 | |||||||||||||||||||||||||
Business owners policies | 36,187 | 9.2 | % | 34,123 | 3.7 | % | 46.3 | % | 14.2 | % | 40.9 | % | 0.0 | % | 101.4 | % | 116.1 | % | (1,307 | ) | ||||||||||||||||||||||||
Bonds | 10,175 | 5.6 | % | 9,363 | (1.4 | )% | 17.5 | % | 8.7 | % | 59.7 | % | 0.0 | % | 85.9 | % | 81.0 | % | 833 | |||||||||||||||||||||||||
Other | 60,248 | N/M | 31,971 | N/M | 43.4 | % | 17.5 | % | 42.1 | % | 0.0 | % | 103.0 | % | 45.6 | % | (12,879 | ) | ||||||||||||||||||||||||||
Total | $ | 703,384 | 16.5 | % | $ | 632,476 | 9.6 | % | 55.7 | % | 13.1 | % | 33.3 | % | 0.3 | % | 102.4 | % | 104.4 | % | $ | (38,991 | ) | |||||||||||||||||||||
Grand Total | $ | 845,735 | 14.9 | % | $ | 771,041 | 9.1 | % | 57.5 | % | 12.6 | % | 32.3 | % | 0.3 | % | 102.7 | % | 106.1 | % | $ | (44,800 | ) | |||||||||||||||||||||
Note: Some amounts may not foot due to rounding. | ||||||||||||||||||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||
Losses Paid | $ | 439,015 | $ | 396,926 | ||||||||||||||||||||||||||||||||||||||||
LAE Paid | 84,567 | 77,908 | ||||||||||||||||||||||||||||||||||||||||||
Total Paid | $ | 523,582 | $ | 474,834 |
SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS | Unaudited | |||||||
($ in thousands, except share amounts) | June 30, 2012 | December 31, 2011 | ||||||
ASSETS | ||||||||
Investments: | ||||||||
Fixed maturity securities, held-to-maturity – at carrying value (fair value: $687,981 – 2012; $758,043 – 2011) | $ | 643,501 | 712,348 | |||||
Fixed maturity securities, available-for-sale – at fair value (amortized cost: $2,974,819 – 2012; $2,766,856 – 2011) | 3,123,006 | 2,897,373 | ||||||
Equity securities, available-for-sale – at fair value (cost: $130,257 – 2012; $143,826 – 2011) | 148,117 | 157,355 | ||||||
Short-term investments (at cost which approximates fair value) | 135,823 | 217,044 | ||||||
Other investments | 125,540 | 128,301 | ||||||
Total investments | 4,175,987 | 4,112,421 | ||||||
Cash | 141 | 762 | ||||||
Interest and dividends due or accrued | 36,110 | 35,842 | ||||||
Premiums receivable, net of allowance for uncollectible accounts of: $3,470 – 2012; $3,768 – 2011 | 523,588 | 466,294 | ||||||
Reinsurance recoverables, net | 441,492 | 561,855 | ||||||
Prepaid reinsurance premiums | 136,808 | 147,686 | ||||||
Current federal income tax | 1,230 | 731 | ||||||
Deferred federal income tax | 113,925 | 120,094 | ||||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: | ||||||||
$164,835 – 2012; $160,294 – 2011 | 45,689 | 43,947 | ||||||
Deferred policy acquisition costs | 152,399 | 135,761 | ||||||
Goodwill | 7,849 | 7,849 | ||||||
Other assets | 52,190 | 52,227 | ||||||
Total assets | $ | 5,687,408 | 5,685,469 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Reserve for losses and loss expenses | $ | 3,044,363 | 3,144,924 | |||||
Unearned premiums | 970,806 | 906,991 | ||||||
Notes payable | 307,373 | 307,360 | ||||||
Accrued salaries and benefits | 113,598 | 119,297 | ||||||
Other liabilities | 166,222 | 148,569 | ||||||
Total liabilities | $ | 4,602,362 | 4,627,141 | |||||
Stockholders’ Equity: | ||||||||
Preferred stock of $0 par value per share: | ||||||||
Authorized shares 5,000,000; no shares issued or outstanding | $ | — | — | |||||
Common stock of $2 par value per share Authorized shares 360,000,000 Issued: 97,960,814 – 2012; 97,246,711 – 2011 | 195,921 | 194,494 | ||||||
Additional paid-in capital | 265,729 | 257,370 | ||||||
Retained earnings | 1,120,143 | 1,116,319 | ||||||
Accumulated other comprehensive income | 58,504 | 42,294 | ||||||
Treasury stock – at cost (shares: 43,009,821 – 2012; 42,836,201 – 2011) | (555,251 | ) | (552,149 | ) | ||||
Total stockholders’ equity | 1,085,046 | 1,058,328 | ||||||
Commitments and contingencies | ||||||||
Total liabilities and stockholders’ equity | $ | 5,687,408 | 5,685,469 |
SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | Quarter ended June 30, | Six Months ended June 30, | ||||||||||||||
($ in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 392,212 | 355,580 | $ | 771,041 | 706,923 | ||||||||||
Net investment income earned | 34,006 | 39,345 | 66,634 | 82,818 | ||||||||||||
Net realized gains (losses): | ||||||||||||||||
Net realized investment gains | 272 | 2,315 | 5,051 | 8,705 | ||||||||||||
Other-than-temporary impairments | (40 | ) | 163 | (297 | ) | (369 | ) | |||||||||
Other-than-temporary impairments on fixed maturity securities recognized in other comprehensive income | (54 | ) | (332 | ) | (218 | ) | (430 | ) | ||||||||
Total net realized gains (losses) | 178 | 2,146 | 4,536 | 7,906 | ||||||||||||
Other income | 2,511 | 2,499 | 6,044 | 5,379 | ||||||||||||
Total revenues | 428,907 | 399,570 | 848,255 | 803,026 | ||||||||||||
Expenses: | ||||||||||||||||
Losses and loss expenses incurred | 287,903 | 274,555 | 540,809 | 523,761 | ||||||||||||
Policy acquisition costs | 131,219 | 115,163 | 259,177 | 230,207 | ||||||||||||
Interest expense | 4,723 | 4,559 | 9,423 | 9,116 | ||||||||||||
Other expenses | 5,754 | 5,392 | 16,347 | 13,883 | ||||||||||||
Total expenses | 429,599 | 399,669 | 825,756 | 776,967 | ||||||||||||
(Loss) income before federal income tax | (692 | ) | (99 | ) | 22,499 | 26,059 | ||||||||||
Federal income tax expense (benefit): | ||||||||||||||||
Current | (500 | ) | 3,111 | 6,678 | 7,387 | |||||||||||
Deferred | (480 | ) | (4,677 | ) | (2,560 | ) | (3,295 | ) | ||||||||
Total federal income tax expense (benefit) | (980 | ) | (1,566 | ) | 4,118 | 4,092 | ||||||||||
Net income | $ | 288 | 1,467 | $ | 18,381 | 21,967 | ||||||||||
Earnings per share: | ||||||||||||||||
Basic net income | $ | 0.01 | 0.03 | $ | 0.34 | 0.41 | ||||||||||
Diluted net income | $ | 0.01 | 0.03 | $ | 0.33 | 0.40 | ||||||||||
Dividends to stockholders | $ | 0.13 | 0.13 | $ | 0.26 | 0.26 |
SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
Quarter ended June 30, | Six Months ended June 30, | |||||||||||||||
($ in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income | $ | 288 | 1,467 | 18,381 | 21,967 | |||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Unrealized gains on investment securities: | ||||||||||||||||
Unrealized holding gains arising during period | 5,101 | 19,563 | 17,974 | 18,957 | ||||||||||||
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | 75 | 272 | 313 | 389 | ||||||||||||
Amortization of net unrealized gains on held-to-maturity securities | (443 | ) | (817 | ) | (959 | ) | (1,581 | ) | ||||||||
Less: reclassification adjustment for gains included in net income | (142 | ) | (1,393 | ) | (2,975 | ) | (5,130 | ) | ||||||||
Total unrealized gains on investment securities | 4,591 | 17,625 | 14,353 | 12,635 | ||||||||||||
Defined benefit pension plans: | ||||||||||||||||
Amortization of net actuarial loss included in net income | 905 | 718 | 1,808 | 1,436 | ||||||||||||
Amortization of prior service cost included in net income | 24 | 25 | 49 | 49 | ||||||||||||
Total defined benefit pension plans | 929 | 743 | 1,857 | 1,485 | ||||||||||||
Other comprehensive income | 5,520 | 18,368 | 16,210 | 14,120 | ||||||||||||
Comprehensive income | $ | 5,808 | 19,835 | $ | 34,591 | 36,087 |
SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | ||||||||
Six Months ended June 30, | ||||||||
($ in thousands) | 2012 | 2011 | ||||||
Common stock: | ||||||||
Beginning of year | $ | 194,494 | 192,725 | |||||
Dividend reinvestment plan (shares: 46,603 – 2012; 47,488 – 2011) | 93 | 95 | ||||||
Stock purchase and compensation plans (shares: 667,500 – 2012; 577,745 – 2011) | 1,334 | 1,156 | ||||||
End of period | 195,921 | 193,976 | ||||||
Additional paid-in capital: | ||||||||
Beginning of year | 257,370 | 244,613 | ||||||
Dividend reinvestment plan | 712 | 716 | ||||||
Stock purchase and compensation plans | 7,647 | 6,860 | ||||||
End of period | 265,729 | 252,189 | ||||||
Retained earnings: | ||||||||
Beginning of year, as previously reported | 1,116,319 | 1,176,155 | ||||||
Add: Adjustment for the cumulative effect on prior years of applying retroactively the new method of accounting for deferred policy acquisition costs | — | (53,068 | ) | |||||
Balance at beginning of year, as adjusted | 1,116,319 | 1,123,087 | ||||||
Net income | 18,381 | 21,967 | ||||||
Dividends to stockholders ($0.26 per share – 2012 and 2011) | (14,557 | ) | (14,370 | ) | ||||
End of period | 1,120,143 | 1,130,684 | ||||||
Accumulated other comprehensive income: | ||||||||
Beginning of year | 42,294 | 7,024 | ||||||
Other comprehensive income | 16,210 | 14,120 | ||||||
End of period | 58,504 | 21,144 | ||||||
Treasury stock: | ||||||||
Beginning of year | (552,149 | ) | (549,408 | ) | ||||
Acquisition of treasury stock (shares: 173,620 – 2012; 136,904 – 2011) | (3,102 | ) | (2,526 | ) | ||||
End of period | (555,251 | ) | (551,934 | ) | ||||
Total stockholders’ equity | $ | 1,085,046 | 1,046,059 |
SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW | Six Months ended June 30, | |||||||
($ in thousands) | 2012 | 2011 | ||||||
Operating Activities | ||||||||
Net income | $ | 18,381 | 21,967 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 19,550 | 16,261 | ||||||
Stock-based compensation expense | 5,160 | 5,286 | ||||||
Undistributed losses (income) of equity method investments | 496 | (726 | ) | |||||
Net realized gains | (4,536 | ) | (7,906 | ) | ||||
Changes in assets and liabilities: | ||||||||
Increase in reserves for losses and loss expenses, net of reinsurance recoverables | 19,802 | 49,164 | ||||||
Increase in unearned premiums, net of prepaid reinsurance and advance premiums | 75,172 | 30,183 | ||||||
(Decrease) increase in net federal income taxes | (3,058 | ) | 601 | |||||
Increase in premiums receivable | (57,294 | ) | (53,017 | ) | ||||
Increase in deferred policy acquisition costs | (16,638 | ) | (3,624 | ) | ||||
(Increase) decrease in interest and dividends due or accrued | (500 | ) | 514 | |||||
Decrease in accrued salaries and benefits | (5,699 | ) | (555 | ) | ||||
Decrease in accrued insurance expenses | (4,500 | ) | (7,045 | ) | ||||
Other-net | 5,823 | 8,694 | ||||||
Net adjustments | 33,778 | 37,830 | ||||||
Net cash provided by operating activities | 52,159 | 59,797 | ||||||
Investing Activities | ||||||||
Purchase of fixed maturity securities, available-for-sale | (426,346 | ) | (252,529 | ) | ||||
Purchase of equity securities, available-for-sale | (40,430 | ) | (123,141 | ) | ||||
Purchase of other investments | (6,355 | ) | (7,715 | ) | ||||
Purchase of short-term investments | (795,707 | ) | (694,764 | ) | ||||
Purchase of subsidiary | 255 | — | ||||||
Sale of subsidiary | 445 | 670 | ||||||
Sale of fixed maturity securities, available-for-sale | 37,699 | 64,104 | ||||||
Sale of short-term investments | 876,928 | 713,111 | ||||||
Redemption and maturities of fixed maturity securities, held-to-maturity | 57,152 | 99,560 | ||||||
Redemption and maturities of fixed maturity securities, available-for-sale | 197,199 | 66,805 | ||||||
Sale of equity securities, available-for-sale | 58,176 | 59,663 | ||||||
Distributions from other investments | 8,442 | 14,046 | ||||||
Sale of other investments | 1 | 16,357 | ||||||
Purchase of property and equipment | (6,793 | ) | (2,843 | ) | ||||
Net cash used in investing activities | (39,334 | ) | (46,676 | ) | ||||
Financing Activities | ||||||||
Dividends to stockholders | (13,442 | ) | (13,225 | ) | ||||
Acquisition of treasury stock | (3,102 | ) | (2,526 | ) | ||||
Net proceeds from stock purchase and compensation plans | 2,225 | 2,355 | ||||||
Excess tax benefits from share-based payment arrangements | 873 | (185 | ) | |||||
Net cash used in financing activities | (13,446 | ) | (13,581 | ) | ||||
Net decrease in cash | (621 | ) | (460 | ) | ||||
Cash, beginning of year | 762 | 645 | ||||||
Cash, end of period | $ | 141 | 185 |
Selective Insurance Group, Inc. | ||||||||||||
Combined Insurance Company Subsidiaries | ||||||||||||
Unaudited Statutory Balance Sheets | ||||||||||||
($ in thousands) | ||||||||||||
Jun-30 | Jun-30 | Dec-31 * | ||||||||||
2012 | 2011 | 2011 | ||||||||||
ASSETS | ||||||||||||
Bonds | $ | 3,569,892 | 3,488,872 | 3,452,204 | ||||||||
Common stocks | 148,117 | 136,577 | 157,355 | |||||||||
Affiliated mortgage loan | 37,791 | 38,462 | 38,131 | |||||||||
Other investments | 191,608 | 162,290 | 197,409 | |||||||||
Short-term investments | 113,584 | 102,166 | 183,070 | |||||||||
Total investments | 4,060,992 | 3,928,367 | 4,028,169 | |||||||||
Cash on hand and in banks | (29,939 | ) | (38,996 | ) | (20,701 | ) | ||||||
Interest and dividends due and accrued | 36,069 | 36,703 | 35,880 | |||||||||
Premiums receivable | 521,684 | 465,437 | 461,482 | |||||||||
Reinsurance recoverable on paid losses and expenses | 9,852 | 5,204 | 12,365 | |||||||||
Deferred tax recoverable | 148,848 | 131,197 | 137,659 | |||||||||
EDP equipment | 1,527 | 1,097 | 1,804 | |||||||||
Equities and deposits in pools and associations | 6,168 | 5,814 | 4,837 | |||||||||
Receivable for sold securities | 1,154 | 14 | 644 | |||||||||
Other assets | 27,065 | 29,475 | 27,964 | |||||||||
Total assets | $ | 4,783,420 | 4,564,312 | 4,690,103 | ||||||||
LIABILITIES | ||||||||||||
Reserve for losses | $ | 2,177,438 | 2,158,586 | 2,173,028 | ||||||||
Reinsurance payable on paid loss and loss expense | 1,282 | 886 | 1,285 | |||||||||
Reserve for loss expenses | 431,272 | 403,575 | 418,542 | |||||||||
Unearned premiums | 833,998 | 742,684 | 759,304 | |||||||||
Reserve for commissions payable | 43,046 | 40,309 | 44,488 | |||||||||
Ceded balances payable | 17,516 | 11,885 | 21,871 | |||||||||
Federal income tax payable | 6,563 | 4,884 | 12,176 | |||||||||
Premium and other taxes payable | 20,531 | 19,696 | 23,588 | |||||||||
Borrowed money | 58,042 | 13,017 | 58,043 | |||||||||
Reserve for dividends to policyholders | 3,670 | 3,197 | 3,470 | |||||||||
Reserves for unauthorized reinsurance | 1,785 | 1,811 | 1,785 | |||||||||
Payable for securities | 17,171 | 9,026 | - | |||||||||
Funds withheld on account of others | 7,136 | 5,156 | 6,538 | |||||||||
Accrued salaries and benefits | 76,876 | 63,729 | 80,601 | |||||||||
Other liabilities | 19,213 | 15,574 | 22,677 | |||||||||
Total liabilities | 3,715,539 | 3,494,015 | 3,627,396 | |||||||||
POLICYHOLDERS' SURPLUS | ||||||||||||
Capital | 34,225 | 28,325 | 32,325 | |||||||||
Aggregate write-ins for special surplus funds | - | 38,940 | 44,296 | |||||||||
Paid in surplus | 305,122 | 255,792 | 307,022 | |||||||||
Unassigned surplus | 728,534 | 747,240 | 679,064 | |||||||||
Total policyholders' surplus | 1,067,881 | 1,070,297 | 1,062,707 | |||||||||
Total liabilities and policyholders' surplus | $ | 4,783,420 | 4,564,312 | 4,690,103 |
* Includes the December 31, 2011 acquisition of Montpelier U.S. Insurance Company (now known as Mesa Underwriters Specialty Insurance Company). Combined statutory filings for 2011 do not reflect the acquisition as this Company was not included in our intercompany pooling until January 1, 2012.
Selective Insurance Group, Inc. | ||||||||||||||||||||||||||||||||
Combined Insurance Company Subsidiaries | ||||||||||||||||||||||||||||||||
Unaudited Statutory Statements Of Income | ||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
June | June | |||||||||||||||||||||||||||||||
UNDERWRITING | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||
Net premiums written | $ | 425,563 | 374,503 | 845,735 | 736,338 | |||||||||||||||||||||||||||
Net premiums earned | 392,212 | 355,580 | 771,041 | 706,923 | ||||||||||||||||||||||||||||
Net losses paid | 232,122 | 208,085 | 439,015 | 396,926 | ||||||||||||||||||||||||||||
Change in reserve for losses | 6,841 | 25,695 | 4,411 | 47,029 | ||||||||||||||||||||||||||||
Net losses incurred | 238,963 | 60.9 | % | 233,780 | 65.7 | % | 443,426 | 57.5 | % | 443,955 | 62.8 | % | ||||||||||||||||||||
Net loss expenses paid | 41,031 | 39,894 | 84,567 | 77,908 | ||||||||||||||||||||||||||||
Change in reserve for loss expenses | 7,942 | 975 | 12,730 | 2,067 | ||||||||||||||||||||||||||||
Net loss expenses incurred | 48,973 | 12.5 | % | 40,869 | 11.5 | % | 97,297 | 12.6 | % | 79,975 | 11.3 | % | ||||||||||||||||||||
Net underwriting expenses incurred | 139,245 | 32.8 | % | 120,322 | 32.2 | % | 275,764 | 32.6 | % | 235,131 | 32.0 | % | ||||||||||||||||||||
Total deductions | 427,181 | 394,971 | 816,487 | 759,061 | ||||||||||||||||||||||||||||
Statutory underwriting loss | (34,969 | ) | (39,391 | ) | (45,446 | ) | (52,138 | ) | ||||||||||||||||||||||||
Net loss from premium balances charged off | (864 | ) | (1,345 | ) | (2,105 | ) | (2,703 | ) | ||||||||||||||||||||||||
Finance charges and other income | 1,934 | 2,481 | 4,895 | 5,339 | ||||||||||||||||||||||||||||
Total other income | 1,070 | -0.3 | % | 1,136 | -0.3 | % | 2,790 | -0.3 | % | 2,636 | -0.4 | % | ||||||||||||||||||||
Policyholders' dividends incurred | (1,230 | ) | 0.3 | % | (1,461 | ) | 0.4 | % | (2,144 | ) | 0.3 | % | (2,747 | ) | 0.4 | % | ||||||||||||||||
Total underwriting loss | (35,129 | ) | 106.2 | % | (39,716 | ) | 109.5 | % | (44,800 | ) | 102.7 | % | (52,249 | ) | 106.1 | % | ||||||||||||||||
INVESTMENT | ||||||||||||||||||||||||||||||||
Net investment income earned | 33,793 | 41,321 | 67,272 | 82,579 | ||||||||||||||||||||||||||||
Net realized gain | 175 | 2,117 | 4,533 | 7,877 | ||||||||||||||||||||||||||||
Total income before income tax | (1,161 | ) | 3,722 | 27,005 | 38,207 | |||||||||||||||||||||||||||
Federal income tax expense | 1,529 | 3,014 | 11,122 | 12,284 | ||||||||||||||||||||||||||||
Net income / (loss) | $ | (2,690 | ) | 708 | 15,883 | 25,923 | ||||||||||||||||||||||||||
Policyholders' Surplus | ||||||||||||||||||||||||||||||||
Surplus, beginning of period | $ | 1,083,174 | 1,083,848 | 1,062,707 | 1,073,025 | |||||||||||||||||||||||||||
Net income / (loss) | (2,690 | ) | 708 | 15,883 | 25,923 | |||||||||||||||||||||||||||
Change in deferred taxes | 5,578 | 473 | 7,664 | 920 | ||||||||||||||||||||||||||||
Change in unrealized gains | (2,917 | ) | (1,211 | ) | 2,041 | (1,160 | ) | |||||||||||||||||||||||||
Dividends to stockholders | (12,709 | ) | (14,506 | ) | (28,474 | ) | (29,012 | ) | ||||||||||||||||||||||||
Change in cum. effect of acctg principle | - | - | 44,296 | - | ||||||||||||||||||||||||||||
Surplus - transferred to capital | (1,900 | ) | - | (1,900 | ) | - | ||||||||||||||||||||||||||
Paid in common stock | 1,900 | - | 1,900 | - | ||||||||||||||||||||||||||||
Change in non-admitted assets | (2,524 | ) | (602 | ) | 8,035 | 2,182 | ||||||||||||||||||||||||||
Change in additional admitted deferred taxes | - | 1,587 | (44,296 | ) | (1,581 | ) | ||||||||||||||||||||||||||
Surplus adjustments | (31 | ) | - | 25 | - | |||||||||||||||||||||||||||
Net change in surplus for period | (15,293 | ) | (13,551 | ) | 5,174 | (2,728 | ) | |||||||||||||||||||||||||
Surplus, end of period | $ | 1,067,881 | 1,070,297 | 1,067,881 | 1,070,297 | |||||||||||||||||||||||||||
Statutory underwriting loss | $ | (35,129 | ) | (39,716 | ) | (44,800 | ) | (52,249 | ) | |||||||||||||||||||||||
Adjustments under GAAP: | ||||||||||||||||||||||||||||||||
Deferred policy acquisition costs1 | 8,068 | 4,620 | 16,638 | 3,624 | ||||||||||||||||||||||||||||
Pension costs | 70 | 902 | 140 | 1,805 | ||||||||||||||||||||||||||||
Other, net | 29 | 192 | (303 | ) | 120 | |||||||||||||||||||||||||||
GAAP underwriting loss | $ | (26,962 | ) | (34,002 | ) | (28,325 | ) | (46,700 | ) | |||||||||||||||||||||||
1Prior year results have been restated to reflect the adoption of ASU 2010-26, "Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts."
Note: Some amounts or ratios may not foot due to rounding.
Selective Insurance Group, Inc. and Consolidated Subsidiaries | |||||||||||||||||||||||||
Alternative Investments | |||||||||||||||||||||||||
as of June 30, 2012 | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
Inception | Original | Remaining | Current | YTD | DPI(1) | TVPI(2) | |||||||||||||||||||
Fund | Year | Commitment | Commitment | Market Value | Income | Ratio | Ratio | ||||||||||||||||||
Real Estate | |||||||||||||||||||||||||
Silverpeak RE II | 2005 | 20,000,000 | 2,409,941 | 9,766,552 | 218,730 | 0.49 | 0.97 | ||||||||||||||||||
Silverpeak RE III | 2008 | 15,000,000 | 8,063,280 | 3,194,035 | (183,347 | ) | 0.02 | 0.48 | |||||||||||||||||
Total - Real Estate | 35,000,000 | 10,473,221 | 12,960,587 | 35,383 | 0.38 | 0.85 | |||||||||||||||||||
Mezzanine Financing | |||||||||||||||||||||||||
Neovara Euro Mezz | 2004 | 9,000,000 | - | 788,057 | (284,236 | ) | 0.95 | 1.01 | |||||||||||||||||
GS Mezz V | 2007 | 25,000,000 | 15,255,707 | 8,537,660 | 1,201,962 | 0.63 | 1.25 | ||||||||||||||||||
New Canaan V | 2012 | 7,000,000 | 5,179,212 | 1,820,787 | - | - | 1.00 | ||||||||||||||||||
Centerfield Capital | 2012 | 3,000,000 | 3,000,000 | - | - | - | - | ||||||||||||||||||
Total - Mezz. Financing | 44,000,000 | 23,434,919 | 11,146,504 | 917,726 | 1.58 | 1.12 | |||||||||||||||||||
Distressed Debt | |||||||||||||||||||||||||
Varde VIII | 2006 | 10,000,000 | - | 6,001,370 | 67,487 | 0.53 | 1.13 | ||||||||||||||||||
GS Distressed Opp III | 2007 | 15,000,000 | 2,985,812 | 8,700,642 | (32,915 | ) | 0.32 | 0.99 | |||||||||||||||||
Total - Distressed Debt | 25,000,000 | 2,985,812 | 14,702,012 | 34,572 | 0.41 | 1.05 | |||||||||||||||||||
Private Equity | |||||||||||||||||||||||||
Prospector | 1997 | 5,000,000 | - | 410,981 | (140 | ) | 2.79 | 2.88 | |||||||||||||||||
Trilantic Capital Partners III | 2004 | 10,000,000 | 1,242,835 | 4,005,128 | 193,363 | 1.29 | 1.72 | ||||||||||||||||||
NB Co-Invest | 2006 | 15,000,000 | 1,818,701 | 9,899,339 | 992,858 | 0.59 | 1.29 | ||||||||||||||||||
Trilantic Capital Partners IV | 2007 | 11,098,351 | 922,808 | 9,423,717 | 679,353 | 0.36 | 1.22 | ||||||||||||||||||
Total - Private Equity | 41,098,351 | 3,984,344 | 23,739,165 | 1,865,434 | 0.97 | 1.57 | |||||||||||||||||||
Private Equity, Secondary Market | |||||||||||||||||||||||||
NB SOF | 2005 | 12,000,000 | 899,494 | 6,476,281 | 262,569 | 0.68 | 1.26 | ||||||||||||||||||
GS Vintage IV | 2007 | 20,000,000 | 4,544,079 | 14,570,906 | 62,247 | 0.43 | 1.20 | ||||||||||||||||||
NB SOF II | 2008 | 12,000,000 | 3,207,509 | 8,548,882 | 510,837 | 0.43 | 1.35 | ||||||||||||||||||
Total - Pvt. Eq. Sec. Mkt. | 44,000,000 | 8,651,082 | 29,596,069 | 835,653 | 0.50 | 1.25 | |||||||||||||||||||
Energy/Power Generation | |||||||||||||||||||||||||
ArcLight I | 2002 | 15,000,000 | 1,655,505 | 130,689 | (56,510 | ) | 1.80 | 1.81 | |||||||||||||||||
ArcLight II | 2003 | 15,000,000 | 2,295,492 | 2,789,988 | (182,795 | ) | 1.23 | 1.38 | |||||||||||||||||
ArcLight III | 2006 | 15,000,000 | 2,037,794 | 8,135,801 | (341,699 | ) | 0.71 | 1.23 | |||||||||||||||||
Quintana Energy | 2006 | 10,000,000 | 1,676,467 | 7,236,789 | 1,343,626 | 0.36 | 1.23 | ||||||||||||||||||
ArcLight IV | 2007 | 10,000,000 | 2,717,373 | 3,284,522 | 132,037 | 0.99 | 1.33 | ||||||||||||||||||
Total - Energy/Power Generation | 65,000,000 | 10,382,631 | 21,577,789 | 894,659 | 1.11 | 1.42 | |||||||||||||||||||
Venture Capital | |||||||||||||||||||||||||
Venture V | 2001 | 10,000,000 | 800,000 | 7,856,075 | 877,440 | 0.34 | 1.19 | ||||||||||||||||||
Total - Venture Capital | 10,000,000 | 800,000 | 7,856,075 | 877,440 | 0.34 | 1.19 | |||||||||||||||||||
TOTAL - ALTERNATIVE INVESTMENTS | $ | 264,098,351 | 60,712,009 | 121,578,201 | 5,460,867 | 0.76 | 1.27 | ||||||||||||||||||
(1) Distributed to paid in ratio | |||||||||||||||||||||||||
(2) Total value to paid in ratio | |||||||||||||||||||||||||
Note: Some amounts may not foot due to rounding |
Selective Insurance Group, Inc. and Consolidated Subsidiaries
Municipal Bond Portfolio
State and Repayment Source Composition
June 30, 2012
($ in thousands)
(unaudited)
Exposure = 45% Held-to-Maturity; 55% Available-for-Sale
Repayment Source Composition by State
Market Values
State | Revenue | % of State | General Obligation (GO)-Local | % of State | General Obligation (GO)-State | % of State | TX - Permanent School Fund (PSF) | % of State | Total | % of Total | ||||||||||||||||||||||||||||||
TX | 54,345 | 54 | % | 44,361 | 45 | % | 1,120 | 1 | % | - | 0 | % | 99,826 | 7 | % | |||||||||||||||||||||||||
TX-PSF | - | 0 | % | - | 0 | % | - | 0 | % | 35,072 | 100 | % | 35,072 | 3 | % | |||||||||||||||||||||||||
WA | 35,592 | 39 | % | 49,282 | 53 | % | 7,084 | 8 | % | - | 0 | % | 91,958 | 7 | % | |||||||||||||||||||||||||
NY | 81,363 | 96 | % | 3,564 | 4 | % | - | 0 | % | - | 0 | % | 84,927 | 6 | % | |||||||||||||||||||||||||
AZ | 65,353 | 90 | % | 7,189 | 10 | % | - | 0 | % | - | 0 | % | 72,542 | 5 | % | |||||||||||||||||||||||||
CO | 21,929 | 38 | % | 34,405 | 59 | % | 1,775 | 3 | % | - | 0 | % | 58,109 | 4 | % | |||||||||||||||||||||||||
FL | 50,243 | 93 | % | - | 0 | % | 3,619 | 7 | % | - | 0 | % | 53,862 | 4 | % | |||||||||||||||||||||||||
IL | 27,397 | 57 | % | 20,353 | 43 | % | - | 0 | % | - | 0 | % | 47,750 | 4 | % | |||||||||||||||||||||||||
OH | 22,818 | 53 | % | 13,398 | 31 | % | 7,133 | 16 | % | - | 0 | % | 43,349 | 3 | % | |||||||||||||||||||||||||
NC | 24,259 | 58 | % | 13,791 | 33 | % | 3,724 | 9 | % | - | 0 | % | 41,774 | 3 | % | |||||||||||||||||||||||||
MO | 21,052 | 55 | % | 17,017 | 45 | % | - | 0 | % | - | 0 | % | 38,069 | 3 | % | |||||||||||||||||||||||||
Pre-refunded | 50,901 | 58 | % | 20,717 | 24 | % | 12,170 | 14 | % | 3,623 | 4 | % | 87,411 | 7 | % | |||||||||||||||||||||||||
Other | 357,350 | 62 | % | 118,756 | 20 | % | 105,032 | 18 | % | - | 0 | % | 581,138 | 44 | % | |||||||||||||||||||||||||
Grand Total | 812,602 | 61 | % | 342,833 | 26 | % | 141,657 | 10 | % | 38,695 | 3 | % | 1,335,787 | 100 | % |
Selective Insurance Group, Inc. and Consolidated Subsidiaries | |||||||||||
Credit Quality of Available-for-Sale Fixed Maturity Securities | |||||||||||
June 30, 2012 | |||||||||||
($ in millions) | |||||||||||
(unaudited) | |||||||||||
Fair Value | Unrealized Gain (Loss) | Average Credit Quality | |||||||||
AFS Fixed Maturity Portfolio: | |||||||||||
U.S. government obligations1 | $ | 288.0 | 19.1 | AA+ | |||||||
Foreign government obligations | 42.8 | 1.2 | AA | ||||||||
State and municipal obligations | 736.5 | 41.3 | AA | ||||||||
Corporate securities | 1,348.7 | 65.6 | A | ||||||||
Mortgage-backed securities ("MBS") | 612.2 | 19.2 | AA | ||||||||
Asset-backed securities ("ABS") | 94.8 | 1.8 | AAA | ||||||||
Total AFS fixed maturity portfolio | $ | 3,123.0 | 148.2 | AA- | |||||||
State and Municipal Obligations: | |||||||||||
Government obligations | $ | 327.2 | 20.3 | AA+ | |||||||
Special revenue obligations | 409.3 | 21.0 | AA | ||||||||
Total state and municipal obligations | $ | 736.5 | 41.3 | AA | |||||||
Corporate Securities: | |||||||||||
Financial | $ | 430.3 | 13.9 | A | |||||||
Industrials | 95.9 | 7.3 | A | ||||||||
Utilities | 89.8 | 4.8 | A- | ||||||||
Consumer discretion | 124.6 | 6.9 | BBB+ | ||||||||
Consumer staples | 148.8 | 8.2 | A | ||||||||
Healthcare | 160.3 | 9.7 | A+ | ||||||||
Materials | 66.7 | 4.0 | A- | ||||||||
Energy | 88.0 | 3.9 | A- | ||||||||
Information technology | 81.3 | 3.1 | A | ||||||||
Telecommunications services | 51.6 | 2.4 | BBB+ | ||||||||
Other | 11.4 | 1.4 | AA+ | ||||||||
Total corporate securities | $ | 1,348.7 | 65.6 | A | |||||||
MBS: | |||||||||||
Government Guaranteed Agency commercial mortgage-backed securities ("CMBS") | $ | 67.0 | 3.5 | AA+ | |||||||
Non-agency CMBS | 51.1 | (1.4 | ) | A+ | |||||||
Government Guaranteed Agency residential mortgage-backed securities ("RMBS") | 102.6 | 4.8 | AA+ | ||||||||
Other Agency RMBS | 340.1 | 11.8 | AA+ | ||||||||
Non-agency RMBS | 44.6 | 0.4 | BBB+ | ||||||||
Alternative-A ("Alt-A") RMBS | 6.8 | 0.1 | AA+ | ||||||||
Total MBS | $ | 612.2 | 19.2 | AA | |||||||
ABS: | |||||||||||
ABS | $ | 93.5 | 1.8 | AAA | |||||||
Alt-A ABS3 | 0.7 | - | D | ||||||||
Sub-prime ABS2,3 | 0.6 | - | D | ||||||||
Total ABS | $ | 94.8 | 1.8 | AAA |
1 U.S. Government includes coporate securities fully guaranteed by the FDIC. |
2 We define sub-prime exposure as exposure to direct and indirect investments in non-agency residential mortgages with average FICO® scores below 650. |
3 Alt-A ABS and sub-prime ABS each consist of one security that is currently expected by rating agencies to default on its obligations. |
Selective Insurance Group, Inc. and Consolidated Subsidiaries | ||||||||||||||||||||||||
Credit Quality of Held-to-Maturity Securities | ||||||||||||||||||||||||
June 30, 2012 | ||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Fair Value | Carry Value | Unrecognized Holding Gain (Loss) | Unrealized Gain (Loss) in Accumulated Other Comprehensive Income | Total Unrealized Unrecognized Gain (Loss) | Average Credit Quality | |||||||||||||||||||
HTM Fixed Maturity Portfolio: | ||||||||||||||||||||||||
Foreign government obligations | $ | 5.4 | 5.5 | (0.1 | ) | 0.2 | 0.1 | AA+ | ||||||||||||||||
State and municipal obligations | 599.3 | 566.6 | 32.7 | 9.3 | 42.0 | AA | ||||||||||||||||||
Corporate securities | 62.0 | 56.7 | 5.3 | (1.3 | ) | 4.0 | A | |||||||||||||||||
MBS | 13.8 | 8.4 | 5.4 | (1.4 | ) | 4.0 | AA- | |||||||||||||||||
ABS | 7.5 | 6.3 | 1.2 | (1.2 | ) | - | A | |||||||||||||||||
Total HTM fixed maturity portfolio | $ | 688.0 | 643.5 | 44.5 | 5.6 | 50.1 | AA | |||||||||||||||||
State and Municipal Obligations: | ||||||||||||||||||||||||
Government obligations | $ | 196.0 | 186.6 | 9.4 | 5.0 | 14.4 | AA | |||||||||||||||||
Special revenue obligations | 403.3 | 380.0 | 23.3 | 4.3 | 27.6 | AA | ||||||||||||||||||
Total state and municipal obligations | $ | 599.3 | 566.6 | 32.7 | 9.3 | 42.0 | AA | |||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||
Financial | $ | 15.6 | 14.0 | 1.6 | (1.0 | ) | 0.6 | BBB+ | ||||||||||||||||
Industrials | 19.1 | 17.4 | 1.7 | (0.3 | ) | 1.4 | A | |||||||||||||||||
Utilities | 15.4 | 13.7 | 1.7 | (0.1 | ) | 1.6 | A | |||||||||||||||||
Consumer discretion | 4.8 | 4.6 | 0.2 | 0.1 | 0.3 | AA | ||||||||||||||||||
Consumer staples | 5.0 | 5.0 | - | - | - | A | ||||||||||||||||||
Materials | 2.1 | 2.0 | 0.1 | - | 0.1 | BBB | ||||||||||||||||||
Total corporate securities | $ | 62.0 | 56.7 | 5.3 | (1.3 | ) | 4.0 | A | ||||||||||||||||
MBS: | ||||||||||||||||||||||||
Non-agency CMBS | 13.8 | 8.4 | 5.4 | (1.4 | ) | 4.0 | AA- | |||||||||||||||||
Total MBS | $ | 13.8 | 8.4 | 5.4 | (1.4 | ) | 4.0 | AA- | ||||||||||||||||
ABS: | ||||||||||||||||||||||||
ABS | $ | 5.2 | 4.6 | 0.6 | (0.4 | ) | 0.2 | BBB+ | ||||||||||||||||
Alt-A ABS | 2.3 | 1.7 | 0.6 | (0.8 | ) | (0.2 | ) | AAA | ||||||||||||||||
Total ABS | $ | 7.5 | 6.3 | 1.2 | (1.2 | ) | - | A |