EXHIBIT 99.2
Supplemental Investor Package Second Quarter 2015
Investor Contact: Jennifer DiBerardino Senior Vice President, Investor Relations and Treasurer Tel: 973-948-1364 jennifer.diberardino@selective.com
|
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||||||
Selected Balance Sheet Data | ||||||||||||
(unaudited) |
June 30, | June 30, | December 31, | ||||||||||||||||||||||||||||||||||
($ in thousands, except per share data) | 2015 | 2014 | 2014 | |||||||||||||||||||||||||||||||||
Unrecognized/ | Unrecognized/ | Unrecognized/ | ||||||||||||||||||||||||||||||||||
Balance | Market | Unrealized | Balance | Market | Unrealized | Balance | Market | Unrealized | ||||||||||||||||||||||||||||
Sheet | Value | Gain | Sheet | Value | Gain | Sheet | Value | Gain | ||||||||||||||||||||||||||||
Invested Assets: | ||||||||||||||||||||||||||||||||||||
Corporate bonds 1 | $ | 2,782,479 | 2,785,884 | 36,643 | $ | 2,625,026 | 2,629,567 | 63,986 | $ | 2,693,324 | 2,697,332 | 47,437 | ||||||||||||||||||||||||
Government and Municipal bonds | 1,658,198 | 1,666,636 | 35,307 | 1,630,112 | 1,646,135 | 56,322 | 1,690,935 | 1,702,751 | 59,680 | |||||||||||||||||||||||||||
Total fixed income securities | 4,440,677 | 4,452,520 | 71,950 | 4,255,138 | 4,275,702 | 120,308 | 4,384,259 | 4,400,083 | 107,117 | |||||||||||||||||||||||||||
Equities | 228,883 | 228,883 | 10,745 | 211,348 | 211,348 | 45,134 | 191,400 | 191,400 | 32,389 | |||||||||||||||||||||||||||
Short-term investments | 168,349 | 168,349 | - | 166,488 | 166,488 | - | 131,972 | 131,972 | - | |||||||||||||||||||||||||||
Other investments | 85,420 | 85,420 | - | 106,125 | 106,125 | - | 99,203 | 99,203 | - | |||||||||||||||||||||||||||
Total invested assets | $ | 4,923,329 | 4,935,172 | 82,695 | $ | 4,739,099 | 4,759,663 | 165,442 | $ | 4,806,834 | 4,822,658 | 139,506 | ||||||||||||||||||||||||
Invested assets per $ of stockholders' equity | 3.76 | 3.83 | 3.77 | |||||||||||||||||||||||||||||||||
Total assets | 6,784,313 | 6,490,585 | 6,581,550 | |||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||
Reserve for loss and loss expenses | 3,535,433 | 3,451,306 | 3,477,870 | |||||||||||||||||||||||||||||||||
Unearned premium reserve | 1,177,901 | 1,100,864 | 1,095,819 | |||||||||||||||||||||||||||||||||
Total liabilities | 5,474,000 | 5,252,510 | 5,305,964 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 1,310,313 | 1,238,075 | 1,275,586 | |||||||||||||||||||||||||||||||||
Total debt to capitalization ratio | 23.1 | % | 24.1 | % | 22.9 | % | ||||||||||||||||||||||||||||||
Book value per share | 22.95 | 21.96 | 22.54 | |||||||||||||||||||||||||||||||||
Book value per share excluding | ||||||||||||||||||||||||||||||||||||
unrealized gain or loss on fixed income portfolio | 22.26 | 20.81 | 21.49 | |||||||||||||||||||||||||||||||||
NPW per insurance segment employee | 945 | 927 | 908 | |||||||||||||||||||||||||||||||||
Statutory premiums to surplus ratio | 1.5 | x | 1.4 | x | 1.4 | x | ||||||||||||||||||||||||||||||
Statutory surplus | 1,344,630 | 1,292,961 | 1,307,842 |
1 Includes mortgage-backed and asset-backed securities. |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||||||||||||
Selected Income Statement Data | ||||||||||||||||||
(unaudited) |
Quarter Ended June 30, | Year-to-Date June 30, | ||||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||||
Per diluted share | Per diluted share | Per diluted share | Per diluted share | ||||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||
Revenue | $ | 521,973 | $ | 506,849 | $ | 1,045,865 | $ | 1,015,920 | |||||||||||||||||||||||||
Operating income | 35,991 | 0.62 | 26,390 | 0.46 | 63,425 | 1.10 | 39,673 | 0.70 | |||||||||||||||||||||||||
Net realized (losses) gains, after tax | (2,223 | ) | (0.04 | ) | 2,951 | 0.05 | 10,051 | 0.17 | 7,642 | 0.13 | |||||||||||||||||||||||
Net income | 33,768 | 0.58 | 29,341 | 0.51 | 73,476 | 1.27 | 47,315 | 0.83 | |||||||||||||||||||||||||
Operating return on equity | 11.0 | % | 8.7 | % | 9.8 | % | 6.6 | % | |||||||||||||||||||||||||
Total Insurance Operations | |||||||||||||||||||||||||||||||||
Gross premiums written | 626,368 | 578,151 | 1,231,232 | 1,143,892 | |||||||||||||||||||||||||||||
Net premiums written | 532,133 | 479,823 | 1,050,221 | 956,573 | |||||||||||||||||||||||||||||
Net premiums earned | 490,309 | 463,625 | 966,432 | 920,120 | |||||||||||||||||||||||||||||
Underwriting gain | - before tax | 29,124 | 10,084 | 55,145 | 5,069 | ||||||||||||||||||||||||||||
- after tax | 18,930 | 0.33 | 6,555 | 0.11 | 35,844 | 0.62 | 3,295 | 0.06 | |||||||||||||||||||||||||
GAAP combined ratio | 94.1 | % | 97.8 | % | 94.3 | % | 99.4 | % | |||||||||||||||||||||||||
Standard Commercial Lines | |||||||||||||||||||||||||||||||||
Net premiums earned | 377,205 | 354,507 | 742,738 | 703,948 | |||||||||||||||||||||||||||||
GAAP combined ratio | 90.7 | % | 95.6 | % | 91.2 | % | 98.3 | % | |||||||||||||||||||||||||
Standard Personal Lines | |||||||||||||||||||||||||||||||||
Net premiums earned | 72,071 | 74,544 | 144,550 | 149,362 | |||||||||||||||||||||||||||||
GAAP combined ratio | 106.5 | % | 107.5 | % | 104.9 | % | 105.3 | % | |||||||||||||||||||||||||
Excess and Surplus Lines | |||||||||||||||||||||||||||||||||
Net premiums earned | 41,033 | 34,574 | 79,144 | 66,810 | |||||||||||||||||||||||||||||
GAAP combined ratio | 103.6 | % | 100.1 | % | 103.8 | % | 98.6 | % | |||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
Net investment income | - before tax | 32,230 | 36,774 | 59,147 | 72,308 | ||||||||||||||||||||||||||||
- after tax | 24,779 | 0.43 | 27,421 | 0.48 | 45,987 | 0.80 | 53,907 | 0.94 | |||||||||||||||||||||||||
Effective tax rate | 23.1 | % | 25.4 | % | 22.2 | % | 25.4 | % | |||||||||||||||||||||||||
Annualized after-tax yield on investment portfolio | 1.9 | % | 2.3 | % | |||||||||||||||||||||||||||||
Annualized after-tax, after-interest expense yield | 1.6 | % | 2.0 | % | |||||||||||||||||||||||||||||
Invested assets per $ of stockholders' equity | 3.76 | 3.83 | |||||||||||||||||||||||||||||||
Other expenses (net of other income) | |||||||||||||||||||||||||||||||||
Interest expense | - before tax | (5,490 | ) | (5,425 | ) | (10,969 | ) | (10,986 | ) | ||||||||||||||||||||||||
- after tax | (3,569 | ) | (0.06 | ) | (3,526 | ) | (0.06 | ) | (7,130 | ) | (0.12 | ) | (7,141 | ) | (0.12 | ) | |||||||||||||||||
Other Expense - after tax | $ | (4,149 | ) | (0.08 | ) | $ | (4,060 | ) | (0.07 | ) | $ | (11,276 | ) | (0.20 | ) | $ | (10,388 | ) | (0.18 | ) | |||||||||||||
Diluted weighted avg shares outstanding | 57,805 | 57,260 | 57,761 | 57,215 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | |||||||||
GAAP Insurance Operations Results | |||||||||
(unaudited) |
Second Quarter | ||||||||||||||||||||||||||||||||
($ in thousands) | Quarter Ended June 30, 2015 | Quarter Ended June 30, 2014 | ||||||||||||||||||||||||||||||
Standard Commercial Lines | Standard Personal Lines | Excess & Surplus Lines | Grand Total | Standard Commercial Lines | Standard Personal Lines | Excess & Surplus Lines | Grand Total | |||||||||||||||||||||||||
Net Premiums Written | 410,821 | 75,986 | 45,326 | 532,133 | 363,860 | 78,181 | 37,782 | 479,823 | ||||||||||||||||||||||||
Net Premiums Earned | 377,205 | 72,071 | 41,033 | 490,309 | 354,507 | 74,544 | 34,574 | 463,625 | ||||||||||||||||||||||||
Loss and Loss Expense Incurred | 210,088 | 53,933 | 27,540 | 291,561 | 216,532 | 58,863 | 22,400 | 297,795 | ||||||||||||||||||||||||
Net Underwriting Expenses Incurred | 130,032 | 22,793 | 14,955 | 167,780 | 120,723 | 21,263 | 12,211 | 154,197 | ||||||||||||||||||||||||
Dividends to Policyholders | 1,844 | - | - | 1,844 | 1,549 | - | - | 1,549 | ||||||||||||||||||||||||
GAAP Underwriting Gain (Loss) | 35,241 | (4,655 | ) | (1,462 | ) | 29,124 | 15,703 | (5,582 | ) | (37 | ) | 10,084 | ||||||||||||||||||||
GAAP Ratios | ||||||||||||||||||||||||||||||||
Loss and Loss Expense Ratio | 55.7 | % | 74.8 | % | 67.1 | % | 59.5 | % | 61.1 | % | 79.0 | % | 64.8 | % | 64.2 | % | ||||||||||||||||
Underwriting Expense Ratio | 34.5 | % | 31.7 | % | 36.5 | % | 34.2 | % | 34.1 | % | 28.5 | % | 35.3 | % | 33.3 | % | ||||||||||||||||
Dividends to Policyholders Ratio | 0.5 | % | 0.0 | % | 0.0 | % | 0.4 | % | 0.4 | % | 0.0 | % | 0.0 | % | 0.3 | % | ||||||||||||||||
Combined Ratio | 90.7 | % | 106.5 | % | 103.6 | % | 94.1 | % | 95.6 | % | 107.5 | % | 100.1 | % | 97.8 | % | ||||||||||||||||
Year-to-Date | ||||||||||||||||||||||||||||||||
($ in thousands) | Year-to-Date June 30, 2015 | Year-to-Date June 30, 2014 | ||||||||||||||||||||||||||||||
Standard Commercial Lines | Standard Personal Lines | Excess & Surplus Lines | Grand Total | Standard Commercial Lines | Standard Personal Lines | Excess & Surplus Lines | Grand Total | |||||||||||||||||||||||||
Net Premiums Written | 826,079 | 141,010 | 83,132 | 1,050,221 | 743,210 | 145,519 | 67,844 | 956,573 | ||||||||||||||||||||||||
Net Premiums Earned | 742,738 | 144,550 | 79,144 | 966,432 | 703,948 | 149,362 | 66,810 | 920,120 | ||||||||||||||||||||||||
Loss and Loss Expense Incurred | 416,236 | 106,902 | 53,422 | 576,560 | 459,171 | 116,890 | 42,280 | 618,341 | ||||||||||||||||||||||||
Net Underwriting Expenses Incurred | 257,856 | 44,769 | 28,733 | 331,358 | 229,917 | 40,414 | 23,592 | 293,923 | ||||||||||||||||||||||||
Dividends to Policyholders | 3,369 | - | - | 3,369 | 2,787 | - | - | 2,787 | ||||||||||||||||||||||||
GAAP Underwriting Gain (Loss) | 65,277 | (7,121 | ) | (3,011 | ) | 55,145 | 12,073 | (7,942 | ) | 938 | 5,069 | |||||||||||||||||||||
GAAP Ratios | ||||||||||||||||||||||||||||||||
Loss and Loss Expense Ratio | 56.0 | % | 74.0 | % | 67.5 | % | 59.7 | % | 65.2 | % | 78.3 | % | 63.3 | % | 67.2 | % | ||||||||||||||||
Underwriting Expense Ratio | 34.7 | % | 30.9 | % | 36.3 | % | 34.3 | % | 32.7 | % | 27.0 | % | 35.3 | % | 31.9 | % | ||||||||||||||||
Dividends to Policyholders Ratio | 0.5 | % | 0.0 | % | 0.0 | % | 0.3 | % | 0.4 | % | 0.0 | % | 0.0 | % | 0.3 | % | ||||||||||||||||
Combined Ratio | 91.2 | % | 104.9 | % | 103.8 | % | 94.3 | % | 98.3 | % | 105.3 | % | 98.6 | % | 99.4 | % | ||||||||||||||||
Selective Insurance Group, Inc. and Consolidated Subsidiaries | |||||||||||||
GAAP Investment Income | |||||||||||||
June 2015 (unaudited) |
Quarter Ended | % | Year-to-Date | % | |||||||||||||||||||||
June | June | Increase/ | June | June | Increase/ | |||||||||||||||||||
($ in thousands, except per share data) | 2015 | 2014 | (Decrease) | 2015 | 2014 | (Decrease) | ||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest: | ||||||||||||||||||||||||
Fixed Income Securities | $ | 30,659 | 33,781 | (9 | ) | $ | 61,626 | 64,809 | (5 | ) | ||||||||||||||
Short-term | 23 | 14 | 64 | 48 | 33 | 46 | ||||||||||||||||||
Other Investments | 1,422 | 3,553 | (60 | ) | (2,118 | ) | 8,771 | (124 | ) | |||||||||||||||
Dividends | 2,384 | 1,736 | 37 | 4,176 | 3,185 | 31 | ||||||||||||||||||
34,488 | 39,084 | (12 | ) | 63,732 | 76,798 | (17 | ) | |||||||||||||||||
Investment Expense | 2,258 | 2,310 | (2 | ) | 4,585 | 4,490 | 2 | |||||||||||||||||
Net Investment Income Before Tax | 32,230 | 36,774 | (12 | ) | 59,147 | 72,308 | (18 | ) | ||||||||||||||||
Tax | 7,451 | 9,353 | (20 | ) | 13,160 | 18,401 | (29 | ) | ||||||||||||||||
Net Investment Income After Tax | $ | 24,779 | 27,421 | (10 | ) | $ | 45,987 | $ | 53,907 | (15 | ) | |||||||||||||
Net Investment Income per Share | $ | 0.43 | 0.48 | (10 | ) | $ | 0.80 | $ | 0.94 | (15 | ) | |||||||||||||
Effective Tax Rate | 23.1 | % | 25.4 | % | 22.2 | % | 25.4 | % | ||||||||||||||||
Average Yields : | ||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||
Pre Tax | 2.79 | % | 3.10 | % | ||||||||||||||||||||
After Tax | 2.12 | % | 2.31 | % | ||||||||||||||||||||
Portfolio: | ||||||||||||||||||||||||
Pre Tax | 2.43 | % | 3.10 | % | ||||||||||||||||||||
After Tax | 1.89 | % | 2.31 | % | ||||||||||||||||||||
Quarter Ended | Year-to-Date | |||||||||||||||||||||||
June | June | June | June | |||||||||||||||||||||
Net Realized Gains (Losses) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Fixed Income Securities | 288 | 749 | 667 | 784 | ||||||||||||||||||||
Equity Securities | (3,708 | ) | 3,790 | 15,450 | 10,973 | |||||||||||||||||||
Other Investments | - | - | (654 | ) | - | |||||||||||||||||||
Total | (3,420 | ) | 4,539 | 15,463 | 11,757 | |||||||||||||||||||
Net of Tax | (2,223 | ) | 2,951 | 10,051 | 7,642 |
As of June 30, 2015 year-to-date new money rates for fixed income securities were 2.2% on a pre-tax basis and 1.6% on an after tax-basis. |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
2015 Statutory Results by Line of Business
Quarter Ended June 2015 (unaudited)
Net | Net | Underwriting | Dividends to | Combined | Combined | |||||||||||||||||||||||||||||||||||||||
Premiums | Percent | Premiums | Percent | Loss | LAE | Expense | Policyholders | Ratio | Ratio | Underwriting | ||||||||||||||||||||||||||||||||||
($ in thousands) | Written | Change | Earned | Change | Ratio | Ratio | Ratio | Ratio | 2015 | 2014 | Gain/(Loss) | |||||||||||||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Homeowners | $ | 36,269 | (1.8 | )% | $ | 33,730 | 0.5 | % | 70.5 | % | 8.5 | % | 35.3 | % | 0.0 | % | 114.3 | % | 124.5 | % | $ | (5,734 | ) | |||||||||||||||||||||
Auto | 37,935 | (3.1 | )% | 36,741 | (3.4 | )% | 60.3 | % | 11.6 | % | 34.5 | % | 0.0 | % | 106.4 | % | 100.2 | % | (2,745 | ) | ||||||||||||||||||||||||
Other (including flood) | 1,782 | (14.9 | )% | 1,600 | (45.7 | )% | 66.7 | % | (7.5 | )% | (152.3 | )% | 0.0 | % | (93.1 | )% | (82.6 | )% | 3,368 | |||||||||||||||||||||||||
Total | $ | 75,986 | (2.8 | )% | $ | 72,071 | (3.3 | )% | 65.3 | % | 9.7 | % | 30.4 | % | 0.0 | % | 105.4 | % | 106.1 | % | $ | (5,111 | ) | |||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial property | $ | 70,736 | 12.9 | % | $ | 66,549 | 8.7 | % | 52.1 | % | 5.6 | % | 37.5 | % | 0.1 | % | 95.3 | % | 101.7 | % | $ | 1,522 | ||||||||||||||||||||||
Workers compensation | 75,471 | 15.7 | % | 70,954 | 2.8 | % | 41.3 | % | 17.6 | % | 28.0 | % | 2.3 | % | 89.2 | % | 112.1 | % | 6,386 | |||||||||||||||||||||||||
General liability | 134,636 | 13.9 | % | 119,207 | 6.8 | % | 28.2 | % | 15.3 | % | 34.0 | % | 0.1 | % | 77.6 | % | 80.7 | % | 21,413 | |||||||||||||||||||||||||
Auto | 97,019 | 11.0 | % | 88,659 | 6.2 | % | 58.4 | % | 10.1 | % | 32.0 | % | 0.1 | % | 100.6 | % | 93.5 | % | (3,226 | ) | ||||||||||||||||||||||||
Business owners policies | 23,588 | 7.4 | % | 23,178 | 8.9 | % | 57.3 | % | 12.4 | % | 38.9 | % | 0.0 | % | 108.6 | % | 117.7 | % | (2,144 | ) | ||||||||||||||||||||||||
Bonds | 5,817 | 9.5 | % | 5,105 | 7.8 | % | 16.4 | % | 8.5 | % | 61.7 | % | 0.0 | % | 86.6 | % | 84.1 | % | 245 | |||||||||||||||||||||||||
Other | 3,554 | 12.7 | % | 3,553 | 10.6 | % | (0.1 | )% | 0.1 | % | 55.8 | % | 0.0 | % | 55.8 | % | 51.0 | % | 1,572 | |||||||||||||||||||||||||
Total | $ | 410,821 | 12.9 | % | $ | 377,205 | 6.4 | % | 43.3 | % | 12.4 | % | 33.9 | % | 0.5 | % | 90.1 | % | 95.5 | % | $ | 25,767 | ||||||||||||||||||||||
E&S | $ | 45,326 | 20.0 | % | $ | 41,033 | 18.7 | % | 48.3 | % | 18.9 | % | 35.5 | % | 0.0 | % | 102.7 | % | 99.9 | % | $ | (2,629 | ) | |||||||||||||||||||||
Total Insurance Operations | $ | 532,133 | 10.9 | % | $ | 490,309 | 5.8 | % | 47.0 | % | 12.5 | % | 33.6 | % | 0.4 | % | 93.5 | % | 97.5 | % | $ | 18,027 | ||||||||||||||||||||||
Note: Some amounts may not foot due to rounding. |
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
Losses Paid | $ | 224,744 | $ | 221,989 | ||||||||||||||||||||||||||||||||||||||||
LAE Paid | 49,067 | 44,075 | ||||||||||||||||||||||||||||||||||||||||||
Total Paid | $ | 273,811 | $ | 266,064 | ||||||||||||||||||||||||||||||||||||||||
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
2015 Statutory Results by Line of Business
Year-to-Date June 2015 (unaudited)
Net | Net | Underwriting | Dividends to | Combined | Combined | |||||||||||||||||||||||||||||||||||||||
Premiums | Percent | Premiums | Percent | Loss | LAE | Expense | Policyholders | Ratio | Ratio | Underwriting | ||||||||||||||||||||||||||||||||||
($ in thousands) | Written | Change | Earned | Change | Ratio | Ratio | Ratio | Ratio | 2015 | 2014 | Gain/(Loss) | |||||||||||||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Homeowners | $ | 64,347 | (2.0 | )% | $ | 67,452 | 0.9 | % | 69.1 | % | 8.0 | % | 36.7 | % | 0.0 | % | 113.8 | % | 123.0 | % | $ | (8,176 | ) | |||||||||||||||||||||
Auto | 73,515 | (3.2 | )% | 73,750 | (3.3 | )% | 60.7 | % | 11.4 | % | 34.4 | % | 0.0 | % | 106.5 | % | 100.6 | % | (4,723 | ) | ||||||||||||||||||||||||
Other (including flood) | 3,149 | (19.5 | )% | 3,348 | (46.3 | )% | 65.9 | % | (0.4 | )% | (168.5 | )% | 0.0 | % | (103.0 | )% | (87.8 | )% | 6,461 | |||||||||||||||||||||||||
Total | $ | 141,010 | (3.1 | )% | $ | 144,550 | (3.2 | )% | 64.7 | % | 9.5 | % | 31.0 | % | 0.0 | % | 105.2 | % | 105.3 | % | $ | (6,437 | ) | |||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial property | $ | 141,634 | 11.8 | % | $ | 131,112 | 8.0 | % | 54.4 | % | 5.3 | % | 37.1 | % | 0.1 | % | 96.9 | % | 116.4 | % | $ | 203 | ||||||||||||||||||||||
Workers compensation | 159,276 | 12.8 | % | 139,431 | 0.7 | % | 44.7 | % | 16.2 | % | 27.0 | % | 2.0 | % | 89.9 | % | 108.8 | % | 8,792 | |||||||||||||||||||||||||
General liability | 265,118 | 11.5 | % | 234,178 | 6.2 | % | 25.3 | % | 16.3 | % | 33.6 | % | 0.1 | % | 75.3 | % | 80.7 | % | 47,317 | |||||||||||||||||||||||||
Auto | 193,606 | 9.7 | % | 175,013 | 5.6 | % | 59.0 | % | 9.3 | % | 31.6 | % | 0.1 | % | 100.0 | % | 94.2 | % | (5,896 | ) | ||||||||||||||||||||||||
Business owners policies | 47,840 | 8.5 | % | 45,877 | 8.8 | % | 63.5 | % | 12.0 | % | 38.1 | % | 0.0 | % | 113.6 | % | 123.7 | % | (6,996 | ) | ||||||||||||||||||||||||
Bonds | 11,030 | 8.4 | % | 10,106 | 6.5 | % | 16.4 | % | 6.4 | % | 62.8 | % | 0.0 | % | 85.6 | % | 80.8 | % | 878 | |||||||||||||||||||||||||
Other | 7,575 | 11.1 | % | 7,021 | 9.8 | % | 0.3 | % | 0.1 | % | 53.5 | % | 0.0 | % | 53.9 | % | 46.5 | % | 2,936 | |||||||||||||||||||||||||
Total | $ | 826,079 | 11.2 | % | $ | 742,738 | 5.5 | % | 44.0 | % | 12.1 | % | 33.3 | % | 0.5 | % | 89.9 | % | 97.8 | % | $ | 47,234 | ||||||||||||||||||||||
E&S | $ | 83,132 | 22.5 | % | $ | 79,144 | �� | 18.5 | % | 48.4 | % | 19.0 | % | 35.1 | % | 0.0 | % | 102.5 | % | 98.8 | % | $ | (3,343 | ) | ||||||||||||||||||||
Total Insurance Operations | $ | 1,050,221 | 9.8 | % | $ | 966,432 | 5.0 | % | 47.5 | % | 12.2 | % | 33.2 | % | 0.3 | % | 93.2 | % | 99.2 | % | $ | 37,454 | ||||||||||||||||||||||
Note: Some amounts may not foot due to rounding. |
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
Losses Paid | $ | 419,110 | $ | 435,286 | ||||||||||||||||||||||||||||||||||||||||
LAE Paid | 94,061 | 88,839 | ||||||||||||||||||||||||||||||||||||||||||
Total Paid | $ | 513,171 | $ | 524,125 | ||||||||||||||||||||||||||||||||||||||||
Selective Insurance Group, Inc. | |||||||||||
Combined Insurance Company Subsidiaries | |||||||||||
2015 Net Catastrophe Losses and Prior Year Casualty Reserve Development | |||||||||||
Statutory Results by Line of Business | |||||||||||
(unaudited) |
Quarter Ended | Year-to-Date | |||||||||||||||||||||||||||||||
Net Catastrophe Losses Incurred | June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | ||||||||||||||||||||||||||||
($ in thousands) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | ||||||||||||||||||||||||
Standard Personal Lines | $ | 8,279 | 11.5 | % | $ | 12,733 | 17.1 | % | $ | 14,597 | 10.1 | % | $ | 21,013 | 14.1 | % | ||||||||||||||||
Standard Commercial Lines | $ | 13,609 | 3.6 | % | $ | 12,781 | 3.6 | % | $ | 32,258 | 4.3 | % | $ | 38,687 | 5.5 | % | ||||||||||||||||
E&S | $ | 2,092 | 5.1 | % | $ | 1,688 | 4.9 | % | $ | 2,444 | 3.1 | % | $ | 1,874 | 2.8 | % | ||||||||||||||||
Total Insurance Operations | $ | 23,980 | 4.9 | % | $ | 27,202 | 5.9 | % | $ | 49,299 | 5.1 | % | $ | 61,574 | 6.7 | % | ||||||||||||||||
Prior Year Casualty Reserve Development | Quarter Ended | Year-to-Date | ||||||||||||||||||||||||||||||
(Favorable) / Unfavorable | June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | ||||||||||||||||||||||||||||
($ in thousands) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | ||||||||||||||||||||||||
Standard Personal Lines | $ | - | 0.0 | % | $ | (2,000 | ) | (2.7 | )% | $ | - | 0.0 | % | $ | (4,000 | ) | (2.7 | )% | ||||||||||||||
Standard Commercial Lines | $ | (21,000 | ) | (5.6 | )% | $ | (15,500 | ) | (4.4 | )% | $ | (42,000 | ) | (5.7 | )% | $ | (27,500 | ) | (3.9 | )% | ||||||||||||
E&S | $ | 1,000 | 2.4 | % | $ | - | 0.0 | % | $ | 2,000 | 2.5 | % | $ | - | 0.0 | % | ||||||||||||||||
Total Insurance Operations | $ | (20,000 | ) | (4.1 | )% | $ | (17,500 | ) | (3.8 | )% | $ | (40,000 | ) | (4.1 | )% | $ | (31,500 | ) | (3.4 | )% |
Note: Some amounts may not foot due to rounding.
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
(Unaudited) June 30, | December 31, | |||||||
($ in thousands, except share amounts) | 2015 | 2014 | ||||||
ASSETS | ||||||||
Investments: | ||||||||
Fixed income securities, held-to-maturity – at carrying value (fair value: $259,702 – 2015; $333,961 – 2014) | $ | 247,859 | 318,137 | |||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $4,133,223 – 2015; $3,975,786 – 2014) | 4,192,818 | 4,066,122 | ||||||
Equity securities, available-for-sale – at fair value (cost: $218,138 – 2015; $159,011 – 2014) | 228,883 | 191,400 | ||||||
Short-term investments (at cost which approximates fair value) | 168,349 | 131,972 | ||||||
Other investments | 85,420 | 99,203 | ||||||
Total investments | 4,923,329 | 4,806,834 | ||||||
Cash | 368 | 23,959 | ||||||
Interest and dividends due or accrued | 38,488 | 38,901 | ||||||
Premiums receivable, net of allowance for uncollectible accounts of: $4,210 – 2015; $4,137 – 2014 | 647,591 | 558,778 | ||||||
Reinsurance recoverable, net | 572,502 | 581,548 | ||||||
Prepaid reinsurance premiums | 145,286 | 146,993 | ||||||
Deferred federal income tax | 106,152 | 98,449 | ||||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: $180,146 – 2015; $172,183 – 2014 | 62,182 | 59,416 | ||||||
Deferred policy acquisition costs | 203,224 | 185,608 | ||||||
Goodwill | 7,849 | 7,849 | ||||||
Other assets | 77,342 | 73,215 | ||||||
Total assets | 6,784,313 | 6,581,550 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Reserve for loss and loss expenses | 3,535,433 | 3,477,870 | ||||||
Unearned premiums | 1,177,901 | 1,095,819 | ||||||
Notes payable | 394,305 | 379,297 | ||||||
Current federal income tax | 13,562 | 3,921 | ||||||
Accrued salaries and benefits | 140,211 | 158,382 | ||||||
Other liabilities | 212,588 | 190,675 | ||||||
Total liabilities | 5,474,000 | 5,305,964 | ||||||
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: 100,585,852 – 2015; 99,947,933 – 2014 | 201,172 | 199,896 | ||||||
Additional paid-in capital | 317,295 | 305,385 | ||||||
Retained earnings | 1,370,681 | 1,313,440 | ||||||
Accumulated other comprehensive (loss) income | (12,329 | ) | 19,788 | |||||
Treasury stock – at cost (shares: 43,482,533– 2015; 43,353,181 – 2014) | (566,506 | ) | (562,923 | ) | ||||
Total stockholders’ equity | 1,310,313 | 1,275,586 | ||||||
Commitments and contingencies | ||||||||
Total liabilities and stockholders’ equity | $ | 6,784,313 | 6,581,550 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||||||||||
Unaudited Consolidated Statements of Income | ||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
($ in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 490,309 | 463,625 | 966,432 | 920,120 | |||||||||||
Net investment income earned | 32,230 | 36,774 | 59,147 | 72,308 | ||||||||||||
Net realized (losses) gains: | ||||||||||||||||
Net realized investment gains | 1,031 | 4,958 | 22,008 | 13,139 | ||||||||||||
Other-than-temporary impairments | (4,451 | ) | (419 | ) | (6,545 | ) | (1,382 | ) | ||||||||
Total net realized (losses) gains | (3,420 | ) | 4,539 | 15,463 | 11,757 | |||||||||||
Other income | 2,854 | 1,911 | 4,823 | 11,735 | ||||||||||||
Total revenues | 521,973 | 506,849 | 1,045,865 | 1,015,920 | ||||||||||||
Expenses: | ||||||||||||||||
Loss and loss expense incurred | 291,561 | 297,795 | 576,560 | 618,341 | ||||||||||||
Policy acquisition costs | 169,770 | 155,173 | 334,493 | 304,439 | ||||||||||||
Interest expense | 5,490 | 5,425 | 10,969 | 10,986 | ||||||||||||
Other expenses | 8,387 | 8,935 | 20,788 | 17,549 | ||||||||||||
Total expenses | 475,208 | 467,328 | 942,810 | 951,315 | ||||||||||||
Income before federal income tax | 46,765 | 39,521 | 103,055 | 64,605 | ||||||||||||
Federal income tax expense: | ||||||||||||||||
Current | 7,733 | 8,781 | 19,987 | 15,319 | ||||||||||||
Deferred | 5,264 | 1,399 | 9,592 | 1,971 | ||||||||||||
Total federal income tax expense | 12,997 | 10,180 | 29,579 | 17,290 | ||||||||||||
Net income | $ | 33,768 | 29,341 | 73,476 | 47,315 | |||||||||||
Earnings per share: | ||||||||||||||||
Basic net income | $ | 0.59 | 0.52 | 1.29 | 0.84 | |||||||||||
Diluted net income | $ | 0.58 | 0.51 | 1.27 | 0.83 | |||||||||||
Dividends to stockholders | 0.14 | 0.13 | 0.28 | 0.26 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||||||||||
Unaudited Consolidated Statements of Comprehensive Income | Quarter Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | |||||||||||||||
($ in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 33,768 | 29,341 | 73,476 | 47,315 | |||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||
Unrealized (losses) gains on investment securities: | ||||||||||||||||
Unrealized holding (losses) gains arising during period | (39,160 | ) | 29,329 | (23,574 | ) | 50,755 | ||||||||||
Amount reclassified into net income: | ||||||||||||||||
Held-to-maturity securities | (120 | ) | (144 | ) | (290 | ) | (440 | ) | ||||||||
Non-credit other-than-temporary impairments | - | 305 | 232 | 305 | ||||||||||||
Realized losses (gains) on available for sale securities | 2,225 | (3,255 | ) | (10,707 | ) | (7,954 | ) | |||||||||
Total unrealized (losses) gains on investment securities | (37,055 | ) | 26,235 | (34,339 | ) | 42,666 | ||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||
Net actuarial loss | 1,111 | 248 | 2,222 | 495 | ||||||||||||
Total defined benefit pension and post-retirement plans | 1,111 | 248 | 2,222 | 495 | ||||||||||||
Other comprehensive (loss) income | (35,944 | ) | 26,483 | (32,117 | ) | 43,161 | ||||||||||
Comprehensive (loss) income | $ | (2,176 | ) | 55,824 | 41,359 | 90,476 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||
Unaudited Consolidated Statements of Stockholders’ Equity | Six Months Ended | |||||||
June 30, | ||||||||
($ in thousands, except share amounts) | 2015 | 2014 | ||||||
Common stock: | ||||||||
Beginning of year | $ | 199,896 | 198,240 | |||||
Dividend reinvestment plan (shares: 26,843 – 2015; 29,949 – 2014) | 54 | 60 | ||||||
Stock purchase and compensation plans (shares: 611,076 – 2015; 547,190– 2014) | 1,222 | 1,095 | ||||||
End of period | 201,172 | 199,395 | ||||||
Additional paid-in capital: | ||||||||
Beginning of year | 305,385 | 288,182 | ||||||
Dividend reinvestment plan | 677 | 642 | ||||||
Stock purchase and compensation plans | 11,233 | 9,528 | ||||||
End of period | 317,295 | 298,352 | ||||||
Retained earnings: | ||||||||
Beginning of year | 1,313,440 | 1,202,015 | ||||||
Net income | 73,476 | 47,315 | ||||||
Dividends to stockholders ($0.28 per share – 2015; $0.26 per share – 2014) | (16,235 | ) | (14,868 | ) | ||||
End of period | 1,370,681 | 1,234,462 | ||||||
Accumulated other comprehensive (loss) income: | ||||||||
Beginning of year | 19,788 | 24,851 | ||||||
Other comprehensive (loss) income | (32,117 | ) | 43,161 | |||||
End of period | (12,329 | ) | 68,012 | |||||
Treasury stock: | ||||||||
Beginning of year | (562,923 | ) | (559,360 | ) | ||||
Acquisition of treasury stock (shares: 129,352 – 2015; 124,819 – 2014) | (3,583 | ) | (2,786 | ) | ||||
End of period | (566,506 | ) | (562,146 | ) | ||||
Total stockholders’ equity | $ | 1,310,313 | 1,238,075 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||
Unaudited Consolidated Statements of Cash Flow | Six Months ended | |||||||
June 30, | ||||||||
($ in thousands) | 2015 | 2014 | ||||||
Operating Activities: | ||||||||
Net Income | $ | 73,476 | 47,315 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 29,085 | 18,912 | ||||||
Sale of renewal rights | - | (8,000 | ) | |||||
Stock-based compensation expense | 6,049 | 6,102 | ||||||
Undistributed losses (gains) of equity method investments | 2,117 | (138 | ) | |||||
Net realized gains | (15,463 | ) | (11,757 | ) | ||||
Changes in assets and liabilities: | ||||||||
Increase in reserves for loss and loss expenses, net of reinsurance recoverables | 66,609 | 93,675 | ||||||
Increase in unearned premiums, net of prepaid reinsurance | 83,789 | 36,453 | ||||||
Decrease in net federal income taxes | 19,232 | 12,634 | ||||||
Increase in premiums receivable | (88,813 | ) | (64,747 | ) | ||||
Increase in deferred policy acquisition costs | (17,616 | ) | (9,106 | ) | ||||
Decrease (increase) in interest and dividends due or accrued | 395 | (361 | ) | |||||
Decrease in accrued salaries and benefits | (18,171 | ) | (26,557 | ) | ||||
Decrease in accrued insurance expenses | (5,091 | ) | (16,872 | ) | ||||
Increase (decrease) in other assets and other liabilities | 29,999 | (4,881 | ) | |||||
Net adjustments | 92,121 | 25,357 | ||||||
Net cash provided by operating activities | 165,597 | 72,672 | ||||||
Investing Activities: | ||||||||
Purchase of fixed income securities, available-for-sale | (463,758 | ) | (339,362 | ) | ||||
Purchase of equity securities, available-for-sale | (177,386 | ) | (111,886 | ) | ||||
Purchase of other investments | (2,947 | ) | (6,039 | ) | ||||
Purchase of short-term investments | (732,278 | ) | (764,692 | ) | ||||
Sale of fixed maturity securities, available-for-sale | 22,323 | 19,557 | ||||||
Sale of short-term investments | 695,901 | 772,455 | ||||||
Redemption and maturities of fixed income securities, held-to-maturity | 68,704 | 28,595 | ||||||
Redemption and maturities of fixed income securities, available-for-sale | 254,995 | 222,568 | ||||||
Sale of equity securities, available-for-sale | 135,548 | 111,996 | ||||||
Distributions from other investments | 17,840 | 7,726 | ||||||
Purchase of property and equipment | (7,591 | ) | (6,628 | ) | ||||
Sale of renewal rights | - | 8,000 | ||||||
Net cash used in investing activities | (188,649 | ) | (57,710 | ) | ||||
Financing Activities: | ||||||||
Dividends to stockholders | (15,211 | ) | (13,914 | ) | ||||
Acquisition of treasury stock | (3,583 | ) | (2,786 | ) | ||||
Net proceeds from stock purchase and compensation plans | 4,037 | 3,091 | ||||||
Proceeds from borrowings | 15,000 | - | ||||||
Excess tax benefits from share-based payment arrangements | 1,549 | 955 | ||||||
Repayment of capital lease obligations | (2,331 | ) | (954 | ) | ||||
Net cash used in financing activities | (539 | ) | (13,608 | ) | ||||
Net (decrease) increase in cash | (23,591 | ) | 1,354 | |||||
Cash, beginning of year | 23,959 | 193 | ||||||
Cash, end of period | $ | 368 | 1,547 |
Selective Insurance Group, Inc. | |||||||
Combined Insurance Company Subsidiaries | |||||||
Statutory Balance Sheets | |||||||
(unaudited) |
June 30, | June 30, | December 31, | ||||||||||
($ in thousands) | 2015 | 2014 | 2014 | |||||||||
ASSETS | ||||||||||||
Bonds | $ | 4,317,425 | 4,094,993 | 4,241,580 | ||||||||
Common stocks | 211,119 | 211,348 | 191,400 | |||||||||
Preferred stocks | 17,742 | - | - | |||||||||
Affiliated mortgage loan | 35,567 | 36,346 | 35,961 | |||||||||
Other investments | 137,366 | 172,089 | 152,154 | |||||||||
Short-term investments | 144,696 | 137,181 | 115,342 | |||||||||
Total investments | 4,863,915 | 4,651,957 | 4,736,437 | |||||||||
Cash on hand and in banks | (27,701 | ) | (18,072 | ) | 12,381 | |||||||
Interest and dividends due and accrued | 38,438 | 37,642 | 38,908 | |||||||||
Premiums receivable | 644,590 | 586,586 | 556,086 | |||||||||
Reinsurance recoverable on paid losses and expenses | 7,224 | 9,995 | 9,570 | |||||||||
Deferred tax recoverable | 140,904 | 149,770 | 147,610 | |||||||||
EDP equipment | 406 | 667 | 518 | |||||||||
Equities and deposits in pools and associations | 10,930 | 9,595 | 9,915 | |||||||||
Receivable for sold securities | 3,695 | 7 | 34 | |||||||||
Other assets | 25,226 | 26,544 | 26,629 | |||||||||
Total assets | $ | 5,707,627 | 5,454,691 | 5,538,088 | ||||||||
LIABILITIES | ||||||||||||
Reserve for losses | $ | 2,438,075 | 2,420,474 | 2,398,531 | ||||||||
Reinsurance payable on paid loss and loss expense | 3,301 | 2,853 | 2,957 | |||||||||
Reserve for loss expenses | 518,171 | 471,202 | 493,510 | |||||||||
Unearned premiums | 1,032,615 | 952,608 | 948,826 | |||||||||
Reserve for commissions payable | 62,229 | 54,191 | 70,259 | |||||||||
Ceded balances payable | 28,475 | 34,379 | 29,624 | |||||||||
Federal income tax payable | 15,291 | 10,953 | 20,524 | |||||||||
Premium and other taxes payable | 23,076 | 20,289 | 20,137 | |||||||||
Borrowed money | 60,029 | 58,042 | 45,027 | |||||||||
Reserve for dividends to policyholders | 5,192 | 2,443 | 3,895 | |||||||||
Reserves for unauthorized reinsurance | 7,661 | 2,735 | 7,661 | |||||||||
Payable for securities | 15,929 | 30,125 | 19,950 | |||||||||
Funds withheld on account of others | 7,503 | 7,560 | 7,473 | |||||||||
Accrued salaries and benefits | 53,551 | 46,806 | 64,207 | |||||||||
Other liabilities | 91,899 | 47,070 | 97,665 | |||||||||
Total liabilities | 4,362,997 | 4,161,730 | 4,230,246 | |||||||||
POLICYHOLDERS' SURPLUS | ||||||||||||
Capital | 42,725 | 42,725 | 42,725 | |||||||||
Paid in surplus | 492,869 | 492,869 | 492,869 | |||||||||
Unassigned surplus | 809,036 | 757,367 | 772,248 | |||||||||
Total policyholders' surplus | 1,344,630 | 1,292,961 | 1,307,842 | |||||||||
Total liabilities and policyholders' surplus | $ | 5,707,627 | 5,454,691 | 5,538,088 |
Selective Insurance Group, Inc. | ||||||||||
Combined Insurance Company Subsidiaries | ||||||||||
Statutory Statements Of Income | ||||||||||
(unaudited) |
Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||
($ in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||
UNDERWRITING | ||||||||||||||||||||||||||||||||
Net premiums written | $ | 532,133 | 479,823 | 1,050,221 | 956,573 | |||||||||||||||||||||||||||
Net premiums earned | 490,309 | 463,625 | 966,432 | 920,120 | ||||||||||||||||||||||||||||
Net losses paid | 224,744 | 221,989 | 419,110 | 435,286 | ||||||||||||||||||||||||||||
Change in reserve for losses | 5,530 | 24,057 | 39,544 | 78,998 | ||||||||||||||||||||||||||||
Net losses incurred | 230,274 | 47.0 | % | 246,046 | 53.1 | % | 458,654 | 47.5 | % | 514,284 | 55.9 | % | ||||||||||||||||||||
Net loss expenses paid | 49,067 | 44,075 | 94,061 | 88,839 | ||||||||||||||||||||||||||||
Change in reserve for loss expenses | 12,418 | 7,675 | 24,661 | 15,219 | ||||||||||||||||||||||||||||
Net loss expenses incurred | 61,485 | 12.5 | % | 51,750 | 11.1 | % | 118,722 | 12.2 | % | 104,058 | 11.3 | % | ||||||||||||||||||||
Net underwriting expenses incurred | 180,898 | 33.9 | % | 159,413 | 33.2 | % | 351,836 | 33.5 | % | 313,203 | 32.8 | % | ||||||||||||||||||||
Total deductions | 472,657 | 457,209 | 929,212 | 931,545 | ||||||||||||||||||||||||||||
Statutory underwriting gain / (loss) | 17,652 | 6,416 | 37,220 | (11,425 | ) | |||||||||||||||||||||||||||
Net loss from premium balances charged off | (703 | ) | (895 | ) | (1,313 | ) | (1,769 | ) | ||||||||||||||||||||||||
Finance charges and other income | 2,922 | 2,129 | 4,916 | 12,168 | ||||||||||||||||||||||||||||
Total other income | 2,219 | -0.3 | % | 1,234 | -0.2 | % | 3,603 | -0.3 | % | 10,339 | -1.1 | % | ||||||||||||||||||||
Policyholders' dividends incurred | (1,844 | ) | 0.4 | % | (1,549 | ) | 0.3 | % | (3,369 | ) | 0.3 | % | (2,787 | ) | 0.3 | % | ||||||||||||||||
Total underwriting gain / (loss) | 18,027 | 93.5 | % | 6,101 | 97.5 | % | 37,454 | 93.2 | % | (3,813 | ) | 99.2 | % | |||||||||||||||||||
INVESTMENT | ||||||||||||||||||||||||||||||||
Net investment income earned | 32,155 | 36,652 | 59,282 | 72,147 | ||||||||||||||||||||||||||||
Net realized gain | (3,422 | ) | 4,537 | 15,461 | 11,752 | |||||||||||||||||||||||||||
Total income before income tax | 46,760 | 47,290 | 112,197 | 80,086 | ||||||||||||||||||||||||||||
Federal income tax expense | 12,530 | 7,108 | 19,791 | 12,953 | ||||||||||||||||||||||||||||
Net income | $ | 34,230 | 40,182 | 92,406 | 67,133 | |||||||||||||||||||||||||||
Policyholders' Surplus | ||||||||||||||||||||||||||||||||
Surplus, beginning of period | $ | 1,322,422 | 1,263,795 | 1,307,842 | 1,256,431 | |||||||||||||||||||||||||||
Net income | 34,230 | 40,182 | 92,406 | 67,133 | ||||||||||||||||||||||||||||
Change in deferred taxes | (1,959 | ) | (5,403 | ) | (12,153 | ) | (6,685 | ) | ||||||||||||||||||||||||
Change in net unrealized capital (losses) | (637 | ) | 6,451 | (13,547 | ) | 5,139 | ||||||||||||||||||||||||||
Dividends to stockholders | (14,438 | ) | (14,378 | ) | (28,876 | ) | (28,754 | ) | ||||||||||||||||||||||||
Change in non-admitted assets | 3,398 | 2,033 | (4,271 | ) | (867 | ) | ||||||||||||||||||||||||||
Change in Overfunded Contra Asset | (280 | ) | (1,546 | ) | (561 | ) | (3,093 | ) | ||||||||||||||||||||||||
Qual Pen Trans Liab | 1,843 | 1,815 | 3,689 | 3,631 | ||||||||||||||||||||||||||||
Excess Plan Trans Liab | 43 | 7 | 86 | 15 | ||||||||||||||||||||||||||||
PRL Plan Trans Liab | 8 | 5 | 15 | 11 | ||||||||||||||||||||||||||||
Net change in surplus for period | 22,208 | 29,166 | 36,788 | 36,530 | ||||||||||||||||||||||||||||
Surplus, end of period | $ | 1,344,630 | 1,292,961 | 1,344,630 | 1,292,961 | |||||||||||||||||||||||||||
Statutory underwriting gain / (loss) | $ | 18,027 | 6,101 | 37,454 | (3,813 | ) | ||||||||||||||||||||||||||
Adjustments under GAAP: | ||||||||||||||||||||||||||||||||
Deferred policy acquisition costs | 11,268 | 4,409 | 17,616 | 9,105 | ||||||||||||||||||||||||||||
Other, net | (171 | ) | (426 | ) | 75 | (223 | ) | |||||||||||||||||||||||||
GAAP underwriting gain / (loss) | $ | 29,124 | 10,084 | 55,145 | 5,069 | |||||||||||||||||||||||||||
Note: Some amounts or ratios may not foot due to rounding |
Selective Insurance Group, Inc. and Consolidated Subsidiaries | |||||||
Alternative Investments | |||||||
as of June 30, 2015 | |||||||
(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 | 2,100,857 | 5,913,410 | 1,032,193 | 0.86 | 1.14 | |||||||||||||||||||||
Silverpeak RE III | 2008 | 15,000,000 | 7,873,466 | 2,328,469 | (249,054 | ) | 0.07 | 0.40 | ||||||||||||||||||||
Total - Real Estate | 35,000,000 | 9,974,323 | 8,241,879 | 783,139 | 0.66 | 0.95 | ||||||||||||||||||||||
Mezzanine Financing | ||||||||||||||||||||||||||||
Neovara Euro Mezz | 2004 | 9,000,000 | - | 1 | - | 0.98 | 0.98 | |||||||||||||||||||||
GS Mezz V | 2007 | 25,000,000 | 10,223,976 | 3,240,463 | 104,186 | 1.15 | 1.33 | |||||||||||||||||||||
New Canaan V | 2012 | 7,000,000 | 1,315,741 | 3,421,476 | (17,575 | ) | 0.55 | 1.10 | ||||||||||||||||||||
Centerfield Capital | 2012 | 3,000,000 | 1,843,500 | 901,213 | 7,410 | 0.21 | 0.99 | |||||||||||||||||||||
Total - Mezz. Financing | 44,000,000 | 13,383,218 | 7,563,153 | 94,021 | 0.97 | 1.17 | ||||||||||||||||||||||
Distressed Debt | ||||||||||||||||||||||||||||
Varde VIII | 2006 | 10,000,000 | - | 1,771,327 | 63,459 | 1.18 | 1.35 | |||||||||||||||||||||
Distressed Managers III | 2007 | 15,000,000 | 3,048,054 | 5,228,698 | (176,663 | ) | 0.82 | 1.21 | ||||||||||||||||||||
Total - Distressed Debt | 25,000,000 | 3,048,054 | 7,000,025 | (113,204 | ) | 0.97 | 1.27 | |||||||||||||||||||||
Private Equity | ||||||||||||||||||||||||||||
Prospector | 1997 | 5,000,000 | - | 324,131 | 43,757 | 2.82 | 2.88 | |||||||||||||||||||||
Trilantic Capital Partners III | 2004 | 10,000,000 | 1,373,537 | 1,846,136 | (577,293 | ) | 1.63 | 1.82 | ||||||||||||||||||||
NB Co-Invest | 2006 | 15,000,000 | 1,398,786 | 6,039,739 | 563,724 | 1.04 | 1.46 | |||||||||||||||||||||
Trilantic Capital Partners IV | 2007 | 11,098,351 | 1,510,319 | 5,654,367 | (997,095 | ) | 1.16 | 1.68 | ||||||||||||||||||||
Trilantic Capital Partners V | 2012 | 7,000,000 | 4,540,668 | 2,162,354 | (184,554 | ) | 0.01 | 0.89 | ||||||||||||||||||||
Total - Private Equity | 48,098,351 | 8,823,310 | 16,026,727 | (1,151,461 | ) | 1.35 | 1.73 | |||||||||||||||||||||
Private Equity, Secondary Market | ||||||||||||||||||||||||||||
NB SOF | 2005 | 12,000,000 | 899,494 | 3,447,399 | (247 | ) | 1.03 | 1.34 | ||||||||||||||||||||
Vintage IV | 2007 | 20,000,000 | 4,203,550 | 9,801,260 | (249,716 | ) | 0.84 | 1.35 | ||||||||||||||||||||
NB SOF II | 2008 | 12,000,000 | 1,969,217 | 5,747,985 | (20,059 | ) | 1.03 | 1.50 | ||||||||||||||||||||
Total - Pvt. Eq. Sec. Mkt. | 44,000,000 | 7,072,261 | 18,996,644 | (270,021 | ) | 0.95 | 1.39 | |||||||||||||||||||||
Energy/Power Generation | ||||||||||||||||||||||||||||
ArcLight I | 2002 | 15,000,000 | - | 12,455 | - | 1.81 | 1.81 | |||||||||||||||||||||
ArcLight II | 2003 | 15,000,000 | - | 212,983 | 54,315 | 1.41 | 1.42 | |||||||||||||||||||||
ArcLight III | 2006 | 15,000,000 | 2,037,794 | 1,127,981 | 155,414 | 1.36 | 1.43 | |||||||||||||||||||||
Quintana Energy | 2006 | 10,000,000 | 284,272 | 6,153,171 | (2,179,847 | ) | 0.60 | 1.23 | ||||||||||||||||||||
ArcLight IV | 2007 | 10,000,000 | 2,287,578 | 2,155,931 | (311,025 | ) | 1.20 | 1.41 | ||||||||||||||||||||
Arclight VI | 2014 | 15,000,000 | 15,000,000 | - | - | |||||||||||||||||||||||
Total - Energy/Power Generation | 80,000,000 | 19,609,644 | 9,662,521 | (2,281,143 | ) | 1.35 | 1.48 | |||||||||||||||||||||
Venture Capital | ||||||||||||||||||||||||||||
Venture V | 2001 | 9,600,000 | 350,000 | 6,696,703 | 821,179 | 0.77 | 1.49 | |||||||||||||||||||||
Total - Venture Capital | 9,600,000 | 350,000 | 6,696,703 | 821,179 | 0.77 | 1.49 | ||||||||||||||||||||||
TOTAL - ALTERNATIVE INVESTMENTS | $ | 285,698,351 | 62,260,809 | 74,187,652 | (2,117,491 | ) | 1.09 | 1.38 |
(1)Distributed to paid in ratio
(2)Total value to paid in ratio
Exhibit may not foot due to rounding