EXHIBIT 99.2
Supplemental Investor Package Third Quarter 2015
Investor Contact: Jennifer DiBerardino Senior Vice President, Investor Relations and Treasurer Tel: 973-948-1364 jennifer.diberardino@selective.com
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Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||||||
Selected Balance Sheet Data | ||||||||||||
(unaudited) | ||||||||||||
September 30, | September 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 | $ | 2,901,352 | 2,904,449 | 37,945 | $ | 2,585,882 | 2,590,023 | 44,665 | $ | 2,693,324 | 2,697,332 | 47,437 | ||||||||||||||||||||||||
Government and Municipal bonds | 1,679,563 | 1,686,985 | 50,263 | 1,717,838 | 1,731,805 | 58,036 | 1,690,935 | 1,702,751 | 59,680 | |||||||||||||||||||||||||||
Total fixed income securities | 4,580,915 | 4,591,434 | 88,208 | 4,303,720 | 4,321,828 | 102,701 | 4,384,259 | 4,400,083 | 107,117 | |||||||||||||||||||||||||||
Equities | 221,951 | 221,951 | 1,131 | 211,266 | 211,266 | 30,846 | 191,400 | 191,400 | 32,389 | |||||||||||||||||||||||||||
Short-term investments | 125,855 | 125,855 | - | 181,593 | 181,593 | - | 131,972 | 131,972 | - | |||||||||||||||||||||||||||
Other investments | 85,146 | 85,146 | - | 106,548 | 106,548 | - | 99,203 | 99,203 | - | |||||||||||||||||||||||||||
Total invested assets | $ | 5,013,867 | 5,024,386 | 89,339 | $ | 4,803,127 | 4,821,235 | 133,547 | $ | 4,806,834 | 4,822,658 | 139,506 | ||||||||||||||||||||||||
Invested assets per $ of stockholders' equity | 3.69 | 3.79 | 3.77 | |||||||||||||||||||||||||||||||||
Total assets | 6,898,117 | 6,577,419 | 6,581,550 | |||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||
Reserve for loss and loss expenses | 3,517,751 | 3,445,706 | 3,477,870 | |||||||||||||||||||||||||||||||||
Unearned premium reserve | 1,218,884 | 1,143,979 | 1,095,819 | |||||||||||||||||||||||||||||||||
Total liabilities | 5,539,095 | 5,310,494 | 5,305,964 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 1,359,022 | 1,266,925 | 1,275,586 | |||||||||||||||||||||||||||||||||
Total debt to capitalization ratio | 22.5 | % | 23.6 | % | 22.9 | % | ||||||||||||||||||||||||||||||
Book value per share | 23.77 | 22.45 | 22.54 | |||||||||||||||||||||||||||||||||
Book value per share excluding | ||||||||||||||||||||||||||||||||||||
unrealized gain or loss on fixed income portfolio | 22.88 | 21.48 | 21.49 | |||||||||||||||||||||||||||||||||
NPW per insurance segment employee | 958 | 896 | 908 | |||||||||||||||||||||||||||||||||
Statutory premiums to surplus ratio | 1.5 | x | 1.4 | x | 1.4 | x | ||||||||||||||||||||||||||||||
Statutory surplus | 1,367,343 | 1,323,097 | 1,307,842 |
1Includes mortgage-backed and asset-backed securities.
Selective Insurance Group, Inc. & Consolidated Subsidiaries
Selected Income Statement Data
(unaudited)
Quarter Ended September 30, | Year-to-Date September 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 | $ | 540,457 | $ | 515,358 | $ | 1,586,322 | $ | 1,531,278 | ||||||||||||||||||||||||||
Operating income | 46,796 | 0.81 | 43,262 | 0.76 | 110,221 | 1.90 | 82,935 | 1.44 | ||||||||||||||||||||||||||
Net realized gains, after tax | 200 | 0.00 | 9,900 | 0.17 | 10,251 | 0.18 | 17,542 | 0.31 | ||||||||||||||||||||||||||
Net income | 46,996 | 0.81 | 53,162 | 0.93 | 120,472 | 2.08 | 100,477 | 1.75 | ||||||||||||||||||||||||||
Operating return on equity | 14.0 | % | 13.8 | % | 11.2 | % | 9.1 | % | ||||||||||||||||||||||||||
Total Insurance Operations | ||||||||||||||||||||||||||||||||||
Gross premiums written | 637,528 | 598,638 | 1,868,760 | 1,742,530 | ||||||||||||||||||||||||||||||
Net premiums written | 545,025 | 495,121 | 1,595,246 | 1,451,694 | ||||||||||||||||||||||||||||||
Net premiums earned | 507,390 | 462,639 | 1,473,822 | 1,382,759 | ||||||||||||||||||||||||||||||
Underwriting gain | - before tax | 44,831 | 34,437 | 99,976 | 39,506 | |||||||||||||||||||||||||||||
- after tax | 29,140 | 0.50 | 22,384 | 0.39 | 64,984 | 1.12 | 25,679 | 0.45 | ||||||||||||||||||||||||||
GAAP combined ratio | 91.2 | % | 92.6 | % | 93.2 | % | 97.1 | % | ||||||||||||||||||||||||||
Standard Commercial Lines | ||||||||||||||||||||||||||||||||||
Net premiums earned | 389,542 | 352,143 | 1,132,280 | 1,056,091 | ||||||||||||||||||||||||||||||
GAAP combined ratio | 88.7 | % | 92.1 | % | 90.3 | % | 96.2 | % | ||||||||||||||||||||||||||
Standard Personal Lines | ||||||||||||||||||||||||||||||||||
Net premiums earned | 72,088 | 74,377 | 216,638 | 223,739 | ||||||||||||||||||||||||||||||
GAAP combined ratio | 96.1 | % | 89.2 | % | 102.0 | % | 100.0 | % | ||||||||||||||||||||||||||
Excess and Surplus Lines | ||||||||||||||||||||||||||||||||||
Net premiums earned | 45,760 | 36,119 | 124,904 | 102,929 | ||||||||||||||||||||||||||||||
GAAP combined ratio | 104.4 | % | 103.8 | % | 104.0 | % | 100.4 | % | ||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||||
Net investment income | - before tax | 32,061 | 34,292 | 91,208 | 106,600 | |||||||||||||||||||||||||||||
- after tax | 24,555 | 0.42 | 25,765 | 0.45 | 70,542 | 1.22 | 79,672 | 1.39 | ||||||||||||||||||||||||||
Effective tax rate | 23.4 | % | 24.9 | % | 22.7 | % | 25.3 | % | ||||||||||||||||||||||||||
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 | 3.69 | 3.79 | ||||||||||||||||||||||||||||||||
Other expenses (net of other income) | ||||||||||||||||||||||||||||||||||
Interest expense | - before tax | (5,489 | ) | (5,558 | ) | (16,458 | ) | (16,544 | ) | |||||||||||||||||||||||||
- after tax | (3,568 | ) | (0.06 | ) | (3,613 | ) | (0.06 | ) | (10,698 | ) | (0.18 | ) | (10,754 | ) | (0.19) | |||||||||||||||||||
Other expense - after tax | $ | (3,331 | ) | (0.05 | ) | $ | (1,274 | ) | (0.02 | ) | $ | (14,607 | ) | (0.26 | ) | $ | (11,662 | ) | (0.21) | |||||||||||||||
Diluted weighted avg shares outstanding | 57,984 | 57,406 | 57,838 | 57,286 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries
GAAP Insurance Operations Results
(unaudited)
Third Quarter | ||||||||||||||||||||||||||||||||
($ in thousands) | Quarter Ended September 30, 2015 | Quarter Ended September 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 | 414,031 | 76,927 | 54,067 | 545,025 | 376,438 | 79,048 | 39,635 | 495,121 | ||||||||||||||||||||||||
Net Premiums Earned | 389,542 | 72,088 | 45,760 | 507,390 | 352,143 | 74,377 | 36,119 | 462,639 | ||||||||||||||||||||||||
Loss and Loss Expense Incurred | 203,621 | 49,588 | 31,952 | 285,161 | 201,352 | 45,137 | 24,443 | 270,932 | ||||||||||||||||||||||||
Net Underwriting Expenses Incurred | 139,973 | 19,674 | 15,830 | 175,477 | 121,864 | 21,203 | 13,047 | 156,114 | ||||||||||||||||||||||||
Dividends to Policyholders | 1,921 | - | - | 1,921 | 1,156 | - | - | 1,156 | ||||||||||||||||||||||||
GAAP Underwriting Gain (Loss) | 44,027 | 2,826 | (2,022 | ) | 44,831 | 27,771 | 8,037 | (1,371 | ) | 34,437 | ||||||||||||||||||||||
GAAP Ratios | ||||||||||||||||||||||||||||||||
Loss and Loss Expense Ratio | 52.3 | % | 68.8 | % | 69.8 | % | 56.2 | % | 57.2 | % | 60.7 | % | 67.7 | % | 58.6 | % | ||||||||||||||||
Underwriting Expense Ratio | 35.9 | % | 27.3 | % | 34.6 | % | 34.6 | % | 34.6 | % | 28.5 | % | 36.1 | % | 33.8 | % | ||||||||||||||||
Dividends to Policyholders Ratio | 0.5 | % | 0.0 | % | 0.0 | % | 0.4 | % | 0.3 | % | 0.0 | % | 0.0 | % | 0.2 | % | ||||||||||||||||
Combined Ratio | 88.7 | % | 96.1 | % | 104.4 | % | 91.2 | % | 92.1 | % | 89.2 | % | 103.8 | % | 92.6 | % | ||||||||||||||||
Year-to-Date | ||||||||||||||||||||||||||||||||
($ in thousands) | Year-to-Date September 30, 2015 | Year-to-Date September 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 | 1,240,110 | 217,937 | 137,199 | 1,595,246 | 1,119,648 | 224,567 | 107,479 | 1,451,694 | ||||||||||||||||||||||||
Net Premiums Earned | 1,132,280 | 216,638 | 124,904 | 1,473,822 | 1,056,091 | 223,739 | 102,929 | 1,382,759 | ||||||||||||||||||||||||
Loss and Loss Expense Incurred | 619,857 | 156,490 | 85,374 | 861,721 | 660,523 | 162,027 | 66,723 | 889,273 | ||||||||||||||||||||||||
Net Underwriting Expenses Incurred | 397,829 | 64,443 | 44,563 | 506,835 | 351,781 | 61,617 | 36,639 | 450,037 | ||||||||||||||||||||||||
Dividends to Policyholders | 5,290 | - | - | 5,290 | 3,943 | - | - | 3,943 | ||||||||||||||||||||||||
GAAP Underwriting Gain (Loss) | 109,304 | (4,295 | ) | (5,033 | ) | 99,976 | 39,844 | 95 | (433 | ) | 39,506 | |||||||||||||||||||||
GAAP Ratios | ||||||||||||||||||||||||||||||||
Loss and Loss Expense Ratio | 54.7 | % | 72.2 | % | 68.4 | % | 58.5 | % | 62.5 | % | 72.4 | % | 64.8 | % | 64.3 | % | ||||||||||||||||
Underwriting Expense Ratio | 35.1 | % | 29.8 | % | 35.6 | % | 34.3 | % | 33.3 | % | 27.6 | % | 35.6 | % | 32.5 | % | ||||||||||||||||
Dividends to Policyholders Ratio | 0.5 | % | 0.0 | % | 0.0 | % | 0.4 | % | 0.4 | % | 0.0 | % | 0.0 | % | 0.3 | % | ||||||||||||||||
Combined Ratio | 90.3 | % | 102.0 | % | 104.0 | % | 93.2 | % | 96.2 | % | 100.0 | % | 100.4 | % | 97.1 | % | ||||||||||||||||
Selective Insurance Group, Inc. and Consolidated Subsidiaries
GAAP Investment Income
September 2015 (unaudited)
Quarter Ended | % | Year-to-Date | % | |||||||||||||||||||||
September | September | Increase | September | September | Increase | |||||||||||||||||||
($ in thousands, except per share data) | 2015 | 2014 | (Decrease) | 2015 | 2014 | (Decrease) | ||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest: | ||||||||||||||||||||||||
Fixed Income Securities | $ | 30,601 | 30,706 | (0 | ) | $ | 92,227 | 95,515 | (3 | ) | ||||||||||||||
Short-term | 24 | 15 | 60 | 72 | 48 | 50 | ||||||||||||||||||
Other Investments | 1,337 | 3,906 | (66 | ) | (781 | ) | 12,677 | (106 | ) | |||||||||||||||
Dividends: | 2,370 | 1,909 | 24 | 6,546 | 5,094 | 29 | ||||||||||||||||||
34,332 | 36,536 | (6 | ) | 98,064 | 113,334 | (13 | ) | |||||||||||||||||
Investment Expense | 2,271 | 2,244 | 1 | 6,856 | 6,734 | 2 | ||||||||||||||||||
Net Investment Income Before Tax | 32,061 | 34,292 | (7 | ) | 91,208 | 106,600 | (14 | ) | ||||||||||||||||
Tax | 7,506 | 8,527 | (12 | ) | 20,666 | 26,928 | (23 | ) | ||||||||||||||||
Net Investment Income After Tax | $ | 24,555 | 25,765 | (5 | ) | $ | 70,542 | 79,672 | (11 | ) | ||||||||||||||
Net Investment Income per Share | $ | 0.42 | 0.45 | (7 | ) | $ | 1.22 | 1.39 | (12 | ) | ||||||||||||||
Effective Tax Rate | 23.4 | % | 24.9 | % | 22.7 | % | 25.3 | % | ||||||||||||||||
Average Yields : | ||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||
Pre Tax | 2.74 | % | 3.03 | % | ||||||||||||||||||||
After Tax | 2.08 | % | 2.27 | % | ||||||||||||||||||||
Portfolio: | ||||||||||||||||||||||||
Pre Tax | 2.48 | % | 3.03 | % | ||||||||||||||||||||
After Tax | 1.92 | % | 2.26 | % | ||||||||||||||||||||
Quarter Ended | Year-to-Date | |||||||||||||||||||||||
September | September | September | September | |||||||||||||||||||||
Net Realized Gains (Losses) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Fixed Income Securities | (80 | ) | 662 | 587 | 1,446 | |||||||||||||||||||
Equity Securities | 388 | 14,568 | 15,838 | 25,541 | ||||||||||||||||||||
Other Investments | - | 1 | (654 | ) | 1 | |||||||||||||||||||
Total | 308 | 15,231 | 15,771 | 26,988 | ||||||||||||||||||||
Net of Tax | 200 | 9,900 | 10,251 | 17,542 |
As of September 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 September 2015 (unaudited)
Net Premiums | Percent | Net Premiums | Percent | Loss | LAE | Underwriting Expense | Dividends to Policyholders | Combined Ratio | Combined Ratio | Underwriting | ||||||||||||||||||||||||||||||||||
($ in thousands) | Written | Change | Earned | Change | Ratio | Ratio | Ratio | Ratio | 2015 | 2014 | Gain/(Loss) | |||||||||||||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Homeowners | $ | 37,491 | (2.4 | )% | $ | 33,670 | (0.8 | )% | 56.9 | % | 8.5 | % | 31.5 | % | 0.0 | % | 96.8 | % | 86.8 | % | $ | (115 | ) | |||||||||||||||||||||
Auto | 37,610 | (3.4 | )% | 36,624 | (2.8 | )% | 63.3 | % | 8.8 | % | 31.3 | % | 0.0 | % | 103.4 | % | 100.3 | % | (1,568 | ) | ||||||||||||||||||||||||
Other (including flood) | 1,826 | 6.2 | % | 1,794 | (34.2 | )% | 67.6 | % | (7.2 | )% | (178.7 | )% | 0.0 | % | (118.3 | )% | (135.3 | )% | 3,975 | |||||||||||||||||||||||||
Total | $ | 76,927 | (2.7 | )% | $ | 72,088 | (3.1 | )% | 60.4 | % | 8.3 | % | 26.3 | % | 0.0 | % | 95.0 | % | 88.9 | % | $ | 2,292 | ||||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial property | $ | 77,674 | 8.7 | % | $ | 68,587 | 11.9 | % | 24.5 | % | 5.2 | % | 38.1 | % | 0.0 | % | 67.8 | % | 79.9 | % | $ | 18,665 | ||||||||||||||||||||||
Workers compensation | 74,446 | 13.2 | % | 74,560 | 11.7 | % | 37.1 | % | 14.2 | % | 30.2 | % | 2.5 | % | 84.0 | % | 111.2 | % | 11,996 | |||||||||||||||||||||||||
General liability | 130,722 | 11.0 | % | 123,252 | 11.1 | % | 38.0 | % | 14.7 | % | 36.4 | % | 0.0 | % | 89.1 | % | 84.2 | % | 10,761 | |||||||||||||||||||||||||
Auto | 97,941 | 8.1 | % | 90,758 | 8.6 | % | 62.0 | % | 8.9 | % | 33.5 | % | 0.1 | % | 104.5 | % | 92.8 | % | (6,478 | ) | ||||||||||||||||||||||||
Businessowners' policies | 23,936 | 9.2 | % | 23,726 | 9.6 | % | 46.9 | % | 12.4 | % | 40.7 | % | 0.0 | % | 100.0 | % | 90.3 | % | (74 | ) | ||||||||||||||||||||||||
Bonds | 5,375 | 0.2 | % | 5,031 | 5.0 | % | 16.4 | % | 8.4 | % | 66.7 | % | 0.0 | % | 91.5 | % | 86.3 | % | 197 | |||||||||||||||||||||||||
Other | 3,937 | 8.5 | % | 3,628 | 12.1 | % | (0.3 | )% | 0.1 | % | 60.2 | % | 0.0 | % | 60.0 | % | 55.8 | % | 1,265 | |||||||||||||||||||||||||
Total | $ | 414,031 | 10.0 | % | $ | 389,542 | 10.6 | % | 40.9 | % | 11.3 | % | 35.7 | % | 0.5 | % | 88.4 | % | 90.9 | % | $ | 36,332 | ||||||||||||||||||||||
E&S | $ | 54,067 | 36.4 | % | $ | 45,760 | 26.7 | % | 51.4 | % | 18.5 | % | 31.2 | % | 0.0 | % | 101.1 | % | 102.9 | % | $ | (3,088 | ) | |||||||||||||||||||||
Total Insurance Operations | $ | 545,025 | 10.1 | % | $ | 507,390 | 9.7 | % | 44.6 | % | 11.5 | % | 34.0 | % | 0.4 | % | 90.5 | % | 91.5 | % | $ | 35,536 |
Note: Some amounts may not foot due to rounding.
2015 | 2014 | ||||||||||||||||
Losses Paid | $ 237,573 | $ 227,149 | |||||||||||||||
LAE Paid | 50,084 | 50,339 | |||||||||||||||
Total Paid | $ 287,657 | $ 277,488 |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
2015 Statutory Results by Line of Business
Year-to-Date September 2015 (unaudited)
Net Premiums | Percent | Net Premiums | Percent | Loss | LAE | Underwriting Expense | Dividends to Policyholders | Combined Ratio | Combined Ratio | Underwriting | ||||||||||||||||||||||||||||||||||
($ in thousands) | Written | Change | Earned | Change | Ratio | Ratio | Ratio | Ratio | 2015 | 2014 | Gain/(Loss) | |||||||||||||||||||||||||||||||||
Standard Personal Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Homeowners | $ | 101,837 | (2.1 | )% | $ | 101,122 | 0.3 | % | 65.0 | % | 8.2 | % | 34.9 | % | 0.0 | % | 108.0 | % | 110.8 | % | $ | (8,291 | ) | |||||||||||||||||||||
Auto | 111,125 | (3.3 | )% | 110,374 | (3.1 | )% | 61.5 | % | 10.6 | % | 33.4 | % | 0.0 | % | 105.5 | % | 100.5 | % | (6,291 | ) | ||||||||||||||||||||||||
Other (including flood) | 4,975 | (11.7 | )% | 5,142 | (42.6 | )% | 66.5 | % | (2.8 | )% | (172.2 | )% | 0.0 | % | (108.5 | )% | (102.3 | )% | 10,437 | |||||||||||||||||||||||||
Total | $ | 217,937 | (3.0 | )% | $ | 216,638 | (3.2 | )% | 63.3 | % | 9.1 | % | 29.3 | % | 0.0 | % | 101.7 | % | 99.9 | % | $ | (4,145 | ) | |||||||||||||||||||||
Standard Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial property | $ | 219,308 | 10.7 | % | $ | 199,699 | 9.3 | % | 44.1 | % | 5.2 | % | 37.5 | % | 0.1 | % | 86.9 | % | 104.1 | % | $ | 18,868 | ||||||||||||||||||||||
Workers compensation | 233,722 | 13.0 | % | 213,991 | 4.3 | % | 42.1 | % | 15.5 | % | 28.0 | % | 2.2 | % | 87.7 | % | 109.6 | % | 20,788 | |||||||||||||||||||||||||
General liability | 395,840 | 11.4 | % | 357,430 | 7.9 | % | 29.6 | % | 15.7 | % | 34.6 | % | 0.1 | % | 80.0 | % | 81.8 | % | 58,078 | |||||||||||||||||||||||||
Auto | 291,547 | 9.1 | % | 265,771 | 6.6 | % | 60.0 | % | 9.2 | % | 32.3 | % | 0.1 | % | 101.5 | % | 93.7 | % | (12,374 | ) | ||||||||||||||||||||||||
Businessowners' policies | 71,776 | 8.7 | % | 69,603 | 9.1 | % | 57.8 | % | 12.1 | % | 39.0 | % | 0.0 | % | 108.9 | % | 112.4 | % | (7,071 | ) | ||||||||||||||||||||||||
Bonds | 16,404 | 5.6 | % | 15,137 | 6.0 | % | 16.4 | % | 7.0 | % | 64.1 | % | 0.0 | % | 87.5 | % | 82.7 | % | 1,075 | |||||||||||||||||||||||||
Other | 11,513 | 10.2 | % | 10,649 | 10.6 | % | 0.1 | % | 0.1 | % | 55.8 | % | 0.0 | % | 56.0 | % | 49.7 | % | 4,202 | |||||||||||||||||||||||||
Total | $ | 1,240,110 | 10.8 | % | $ | 1,132,280 | 7.2 | % | 42.9 | % | 11.8 | % | 34.2 | % | 0.5 | % | 89.4 | % | 95.5 | % | $ | 83,566 | ||||||||||||||||||||||
E&S | $ | 137,199 | 27.7 | % | $ | 124,904 | 21.3 | % | 49.5 | % | 18.8 | % | 33.5 | % | 0.0 | % | 101.8 | % | 100.3 | % | $ | (6,431 | ) | |||||||||||||||||||||
Total Insurance Operations | $ | 1,595,246 | 9.9 | % | $ | 1,473,822 | 6.6 | % | 46.5 | % | 12.0 | % | 33.4 | % | 0.4 | % | 92.3 | % | 96.6 | % | $ | 72,990 |
Note: Some amounts may not foot due to rounding.
2015 | 2014 | ||||||||||||||||
Losses Paid | $ 656,683 | $ 662,435 | |||||||||||||||
LAE Paid | 144,145 | 139,178 | |||||||||||||||
Total Paid | $ 800,828 | $ 801,613 |
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 | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 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 | $ | 5,784 | 8.0 | % | $ | 1,605 | 2.2 | % | $ | 20,381 | 9.4 | % | $ | 22,618 | 10.1 | % | ||||||||||||||||
Standard Commercial Lines | $ | 758 | 0.2 | % | $ | 3,259 | 0.9 | % | $ | 33,016 | 2.9 | % | $ | 41,946 | 4.0 | % | ||||||||||||||||
E&S | $ | 308 | 0.7 | % | $ | 511 | 1.4 | % | $ | 2,752 | 2.2 | % | $ | 2,386 | 2.3 | % | ||||||||||||||||
Total Insurance Operations | $ | 6,850 | 1.3 | % | $ | 5,375 | 1.2 | % | $ | 56,149 | 3.8 | % | $ | 66,949 | 4.8 | % | ||||||||||||||||
Prior Year Casualty Reserve Development | Quarter Ended | Year-to-Date | ||||||||||||||||||||||||||||||
(Favorable) / Unfavorable | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 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 | % | $ | (6,000 | ) | (2.7 | )% | ||||||||||||||
Standard Commercial Lines | $ | (19,000 | ) | (4.9 | )% | $ | (10,000 | ) | (2.8 | )% | $ | (61,000 | ) | (5.4 | )% | $ | (37,500 | ) | (3.6 | )% | ||||||||||||
E&S | $ | 4,000 | 8.7 | % | $ | 4,000 | 11.1 | % | $ | 6,000 | 4.8 | % | $ | 4,000 | 3.9 | % | ||||||||||||||||
Total Insurance Operations | $ | (15,000 | ) | (3.0 | )% | $ | (8,000 | ) | (1.7 | )% | $ | (55,000 | ) | (3.7 | )% | $ | (39,500 | ) | (2.9 | )% |
Note: Some amounts may not foot due to rounding.
Selective Insurance Group, Inc. & Consolidated Subsidiaries | |||||||||
Consolidated Balance Sheets |
($ in thousands, except share amounts) | (Unaudited) 2015 | December 31, 2014 | ||||||
ASSETS | ||||||||
Investments: | ||||||||
Fixed income securities, held-to-maturity – at carrying value (fair value: $240,388 – 2015; $333,961 – 2014) | $ | 229,869 | 318,137 | |||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $4,273,771 – 2015; $3,975,786 – 2014) | 4,351,046 | 4,066,122 | ||||||
Equity securities, available-for-sale – at fair value (cost: $220,820 – 2015; $159,011 – 2014) | 221,951 | 191,400 | ||||||
Short-term investments (at cost which approximates fair value) | 125,855 | 131,972 | ||||||
Other investments | 85,146 | 99,203 | ||||||
Total investments | 5,013,867 | 4,806,834 | ||||||
Cash | 15,113 | 23,959 | ||||||
Interest and dividends due or accrued | 38,009 | 38,901 | ||||||
Premiums receivable, net of allowance for uncollectible accounts of: $4,612 – 2015; $4,137 – 2014 | 653,966 | 558,778 | ||||||
Reinsurance recoverable, net | 561,364 | 581,548 | ||||||
Prepaid reinsurance premiums | 148,634 | 146,993 | ||||||
Deferred federal income tax | 93,062 | 98,449 | ||||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: $184,406 – 2015; $172,183 – 2014 | 65,657 | 59,416 | ||||||
Deferred policy acquisition costs | 213,666 | 185,608 | ||||||
Goodwill | 7,849 | 7,849 | ||||||
Other assets | 86,930 | 73,215 | ||||||
Total assets | $ | 6,898,117 | 6,581,550 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Reserve for loss and loss expenses | $ | 3,517,751 | 3,477,870 | |||||
Unearned premiums | 1,218,884 | 1,095,819 | ||||||
Notes payable | 394,309 | 379,297 | ||||||
Current federal income tax | 12,607 | 3,921 | ||||||
Accrued salaries and benefits | 158,044 | 158,382 | ||||||
Other liabilities | 237,500 | 190,675 | ||||||
Total liabilities | $ | 5,539,095 | 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: 100,673,864 – 2015; 99,947,933 – 2014 | 201,348 | 199,896 | ||||||
Additional paid-in capital | 320,987 | 305,385 | ||||||
Retained earnings | 1,409,536 | 1,313,440 | ||||||
Accumulated other comprehensive (loss) income | (6,039 | ) | 19,788 | |||||
Treasury stock – at cost (shares: 43,492,212 – 2015; 43,353,181 – 2014) | (566,810 | ) | (562,923 | ) | ||||
Total stockholders’ equity | $ | 1,359,022 | 1,275,586 | |||||
Commitments and contingencies | ||||||||
Total liabilities and stockholders’ equity | $ | 6,898,117 | 6,581,550 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | |||||||||
Unaudited Consolidated Statements of Income |
Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
($ in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 507,390 | 462,639 | 1,473,822 | 1,382,759 | |||||||||||
Net investment income earned | 32,061 | 34,292 | 91,208 | 106,600 | ||||||||||||
Net realized gains: | ||||||||||||||||
Net realized investment gains | 1,590 | 15,231 | 23,598 | 28,370 | ||||||||||||
Other-than-temporary impairments | (1,282 | ) | - | (7,827 | ) | (1,382 | ) | |||||||||
Total net realized gains | 308 | 15,231 | 15,771 | 26,988 | ||||||||||||
Other income | 698 | 3,196 | 5,521 | 14,931 | ||||||||||||
Total revenues | 540,457 | 515,358 | 1,586,322 | 1,531,278 | ||||||||||||
Expenses: | ||||||||||||||||
Loss and loss expense incurred | 285,161 | 270,932 | 861,721 | 889,273 | ||||||||||||
Policy acquisition costs | 174,802 | 158,101 | 509,295 | 462,540 | ||||||||||||
Interest expense | 5,489 | 5,558 | 16,458 | 16,544 | ||||||||||||
Other expenses | 9,166 | 5,441 | 29,954 | 22,990 | ||||||||||||
Total expenses | 474,618 | 440,032 | 1,417,428 | 1,391,347 | ||||||||||||
Income before federal income tax | 65,839 | 75,326 | 168,894 | 139,931 | ||||||||||||
Federal income tax expense: | ||||||||||||||||
Current | 9,141 | 7,373 | 29,128 | 22,692 | ||||||||||||
Deferred | 9,702 | 14,791 | 19,294 | 16,762 | ||||||||||||
Total federal income tax expense | 18,843 | 22,164 | 48,422 | 39,454 | ||||||||||||
Net income | $ | 46,996 | 53,162 | 120,472 | 100,477 | |||||||||||
Earnings per share: | ||||||||||||||||
Basic net income | $ | 0.82 | 0.94 | 2.11 | 1.79 | |||||||||||
Diluted net income | $ | 0.81 | 0.93 | 2.08 | 1.75 | |||||||||||
Dividends to stockholders | $ | 0.14 | 0.13 | 0.42 | 0.39 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||||||||||
Unaudited Consolidated Statements of Comprehensive Income | Quarter Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | |||||||||||||||
($ in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 46,996 | 53,162 | 120,472 | 100,477 | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||||||
Unrealized holding gains (losses) arising during period | 5,442 | (8,988 | ) | (18,132 | ) | 41,767 | ||||||||||
Amount reclassified into net income: | ||||||||||||||||
Held-to-maturity securities | (63 | ) | (243 | ) | (353 | ) | (683 | ) | ||||||||
Non-credit other-than-temporary impairments | — | 780 | 232 | 1,085 | ||||||||||||
Realized gains on available-for-sale securities | (199 | ) | (10,683 | ) | (10,906 | ) | (18,637 | ) | ||||||||
Total unrealized gains (losses) on investment securities | 5,180 | (19,134 | ) | (29,159 | ) | 23,532 | ||||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||||||
Amounts reclassified into net income: | ||||||||||||||||
Net actuarial loss | 1,110 | 247 | 3,332 | 742 | ||||||||||||
Total defined benefit pension and post-retirement plans | 1,110 | 247 | 3,332 | 742 | ||||||||||||
Other comprehensive income (loss) | 6,290 | (18,887 | ) | (25,827 | ) | 24,274 | ||||||||||
Comprehensive income | $ | 53,286 | 34,275 | 94,645 | 124,751 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||
Unaudited Consolidated Statements of Stockholders’ Equity | Nine Months Ended | |||||||
September 30, | ||||||||
($ in thousands, except share amounts) | 2015 | 2014 | ||||||
Common stock: | ||||||||
Beginning of year | $ | 199,896 | 198,240 | |||||
Dividend reinvestment plan (shares: 38,947 – 2015; 44,322 – 2014) | 78 | 89 | ||||||
Stock purchase and compensation plans (shares: 686,984 – 2015; 588,858– 2014) | 1,374 | 1,178 | ||||||
End of period | 201,348 | 199,507 | ||||||
Additional paid-in capital: | ||||||||
Beginning of year | 305,385 | 288,182 | ||||||
Dividend reinvestment plan | 1,014 | 957 | ||||||
Stock purchase and compensation plans | 14,588 | 11,286 | ||||||
End of period | 320,987 | 300,425 | ||||||
Retained earnings: | ||||||||
Beginning of year | 1,313,440 | 1,202,015 | ||||||
Net income | 120,472 | 100,477 | ||||||
Dividends to stockholders ($0.42 per share – 2015; $0.39 per share – 2014) | (24,376 | ) | (22,344 | ) | ||||
End of period | 1,409,536 | 1,280,148 | ||||||
Accumulated other comprehensive (loss) income: | ||||||||
Beginning of year | 19,788 | 24,851 | ||||||
Other comprehensive (loss) income | (25,827 | ) | 24,274 | |||||
End of period | (6,039 | ) | 49,125 | |||||
Treasury stock: | ||||||||
Beginning of year | (562,923 | ) | (559,360 | ) | ||||
Acquisition of treasury stock (shares: 139,031 – 2015; 130,573 – 2014) | (3,887 | ) | (2,920 | ) | ||||
End of period | (566,810 | ) | (562,280 | ) | ||||
Total stockholders’ equity | $ | 1,359,022 | 1,266,925 |
Selective Insurance Group, Inc. & Consolidated Subsidiaries | ||||||||
Unaudited Consolidated Statements of Cash Flow | Nine Months Ended | |||||||
September 30, | ||||||||
($ in thousands) | 2015 | 2014 | ||||||
Operating Activities: | ||||||||
Net Income | $ | 120,472 | 100,477 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 43,868 | 31,059 | ||||||
Sale of renewal rights | — | (8,000 | ) | |||||
Stock-based compensation expense | 7,626 | 7,421 | ||||||
Undistributed losses (gains) of equity method investments | 781 | (131 | ) | |||||
Net realized gains | (15,771 | ) | (26,988 | ) | ||||
Changes in assets and liabilities: | ||||||||
Increase in reserve for loss and loss expenses, net of reinsurance recoverables | 60,065 | 86,887 | ||||||
Increase in unearned premiums, net of prepaid reinsurance | 121,424 | 68,935 | ||||||
Decrease in net federal income taxes | 27,980 | 33,596 | ||||||
Increase in premiums receivable | (95,188 | ) | (66,816 | ) | ||||
Increase in deferred policy acquisition costs | (28,058 | ) | (16,700 | ) | ||||
Decrease (increase) in interest and dividends due or accrued | 979 | (82 | ) | |||||
Decrease in accrued salaries and benefits | (338 | ) | (13,958 | ) | ||||
Increase (decrease) in accrued insurance expenses | 7,154 | (12,545 | ) | |||||
Increase (decrease) in other assets and other liabilities | 8,039 | (25,036 | ) | |||||
Net adjustments | 138,561 | 57,642 | ||||||
Net cash provided by operating activities | 259,033 | 158,119 | ||||||
Investing Activities: | ||||||||
Purchase of fixed income securities, available-for-sale | (731,154 | ) | (560,493 | ) | ||||
Purchase of equity securities, available-for-sale | (192,717 | ) | (185,529 | ) | ||||
Purchase of other investments | (6,589 | ) | (8,498 | ) | ||||
Purchase of short-term investments | (1,084,794 | ) | (1,082,192 | ) | ||||
Sale of fixed income securities, available-for-sale | 22,323 | 35,499 | ||||||
Sale of short-term investments | 1,090,911 | 1,074,850 | ||||||
Redemption and maturities of fixed income securities, held-to-maturity | 79,972 | 56,375 | ||||||
Redemption and maturities of fixed income securities, available-for-sale | 403,510 | 336,939 | ||||||
Sale of equity securities, available-for-sale | 148,228 | 186,001 | ||||||
Distributions from other investments | 22,038 | 13,514 | ||||||
Purchase of property and equipment | (11,869 | ) | (9,178 | ) | ||||
Sale of renewal rights | — | 8,000 | ||||||
Net cash used in investing activities | (260,141 | ) | (134,712 | ) | ||||
Financing Activities: | ||||||||
Dividends to stockholders | (22,848 | ) | (20,899 | ) | ||||
Acquisition of treasury stock | (3,887 | ) | (2,920 | ) | ||||
Net proceeds from stock purchase and compensation plans | 6,016 | 3,554 | ||||||
Proceeds from borrowings | 15,000 | — | ||||||
Excess tax benefits from share-based payment arrangements | 1,498 | 1,024 | ||||||
Repayment of capital lease obligations | (3,517 | ) | (1,858 | ) | ||||
Net cash used in financing activities | (7,738 | ) | (21,099 | ) | ||||
Net (decrease) increase in cash | (8,846 | ) | 2,308 | |||||
Cash, beginning of year | 23,959 | 193 | ||||||
Cash, end of period | $ | 15,113 | 2,501 |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Statutory Balance Sheets
(unaudited)
September 30, | September 30, | December 31, | ||||||||||
($ in thousands) | 2015 | 2014 | 2014 | |||||||||
ASSETS | ||||||||||||
Bonds | $ | 4,438,650 | 4,166,759 | 4,241,580 | ||||||||
Common stocks | 210,197 | 211,265 | 191,400 | |||||||||
Preferred stocks | 11,708 | - | - | |||||||||
Affiliated mortgage loan | 35,366 | 36,155 | 35,961 | |||||||||
Other investments | 136,591 | 172,505 | 152,154 | |||||||||
Short-term investments | 109,393 | 139,193 | 115,342 | |||||||||
Total investments | 4,941,905 | 4,725,877 | 4,736,437 | |||||||||
Cash on hand and in banks | (6,272 | ) | 232 | 12,381 | ||||||||
Interest and dividends due and accrued | 37,944 | 37,460 | 38,908 | |||||||||
Premiums receivable | 648,264 | 588,789 | 556,086 | |||||||||
Reinsurance recoverable on paid losses and expenses | 11,288 | 10,558 | 9,570 | |||||||||
Deferred tax recoverable | 146,936 | 153,305 | 147,610 | |||||||||
EDP equipment | 436 | 567 | 518 | |||||||||
Equities and deposits in pools and associations | 12,394 | 9,966 | 9,915 | |||||||||
Receivable for sold securities | 64 | 723 | 34 | |||||||||
Other assets | 26,798 | 27,008 | 26,629 | |||||||||
Total assets | $ | 5,819,757 | 5,554,485 | 5,538,088 | ||||||||
LIABILITIES | ||||||||||||
Reserve for losses | $ | 2,427,024 | 2,408,287 | 2,398,531 | ||||||||
Reinsurance payable on paid loss and loss expense | 2,677 | 2,680 | 2,957 | |||||||||
Reserve for loss expenses | 526,253 | 475,933 | 493,510 | |||||||||
Unearned premiums | 1,070,250 | 985,089 | 948,826 | |||||||||
Reserve for commissions payable | 73,293 | 60,739 | 70,259 | |||||||||
Ceded balances payable | 32,626 | 30,036 | 29,624 | |||||||||
Federal income tax payable | 22,996 | 26,750 | 20,524 | |||||||||
Premium and other taxes payable | 24,257 | 18,068 | 20,137 | |||||||||
Borrowed money | 60,029 | 58,042 | 45,027 | |||||||||
Reserve for dividends to policyholders | 5,989 | 2,606 | 3,895 | |||||||||
Reserves for unauthorized reinsurance | 7,661 | 2,735 | 7,661 | |||||||||
Payable for securities | 31,974 | 44,712 | 19,950 | |||||||||
Funds withheld on account of others | 7,695 | 7,933 | 7,473 | |||||||||
Accrued salaries and benefits | 69,837 | 61,074 | 64,207 | |||||||||
Other liabilities | 89,853 | 46,704 | 97,665 | |||||||||
Total liabilities | 4,452,414 | 4,231,388 | 4,230,246 | |||||||||
POLICYHOLDERS' SURPLUS | ||||||||||||
Capital | 42,725 | 42,725 | 42,725 | |||||||||
Paid in surplus | 492,869 | 492,869 | 492,869 | |||||||||
Unassigned surplus | 831,749 | 787,503 | 772,248 | |||||||||
Total policyholders' surplus | 1,367,343 | 1,323,097 | 1,307,842 | |||||||||
Total liabilities and policyholders' surplus | $ | 5,819,757 | 5,554,485 | 5,538,088 |
Selective Insurance Group, Inc.
Combined Insurance Company Subsidiaries
Statutory Statements Of Income
(unaudited)
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
($ in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||
UNDERWRITING | ||||||||||||||||||||||||||||||||
Net premiums written | $ | 545,025 | 495,121 | 1,595,246 | 1,451,694 | |||||||||||||||||||||||||||
Net premiums earned | 507,390 | 462,639 | 1,473,822 | 1,382,759 | ||||||||||||||||||||||||||||
Net losses paid | 237,573 | 227,149 | 656,683 | 662,435 | ||||||||||||||||||||||||||||
Change in reserve for losses | (11,051 | ) | (12,187 | ) | 28,493 | 66,811 | ||||||||||||||||||||||||||
Net losses incurred | 226,522 | 44.6 | % | 214,962 | 46.5 | % | 685,176 | 46.5 | % | 729,246 | 52.7 | % | ||||||||||||||||||||
Net loss expenses paid | 50,084 | 50,339 | 144,145 | 139,178 | ||||||||||||||||||||||||||||
Change in reserve for loss expenses | 8,083 | 4,730 | 32,744 | 19,949 | ||||||||||||||||||||||||||||
Net loss expenses incurred | 58,167 | 11.5 | % | 55,069 | 11.9 | % | 176,889 | 12.0 | % | 159,127 | 11.5 | % | ||||||||||||||||||||
Net underwriting expenses incurred | 185,183 | 33.9 | % | 165,184 | 33.4 | % | 537,019 | 33.6 | % | 478,387 | 33.0 | % | ||||||||||||||||||||
Total deductions | 469,872 | 435,215 | 1,399,084 | 1,366,760 | ||||||||||||||||||||||||||||
Statutory underwriting gain / (loss) | 37,518 | 27,424 | 74,738 | 15,999 | ||||||||||||||||||||||||||||
Net loss from premium balances charged off | (833 | ) | (999 | ) | (2,146 | ) | (2,768 | ) | ||||||||||||||||||||||||
Finance charges and other income | 772 | 3,419 | 5,688 | 15,587 | ||||||||||||||||||||||||||||
Total other income | (61 | ) | 0.1 | % | 2,420 | -0.5 | % | 3,542 | -0.2 | % | 12,819 | -0.9 | % | |||||||||||||||||||
Policyholders' dividends incurred | (1,921 | ) | 0.4 | % | (1,156 | ) | 0.2 | % | (5,290 | ) | 0.4 | % | (3,943 | ) | 0.3 | % | ||||||||||||||||
Total underwriting gain / (loss) | 35,536 | 90.5 | % | 28,688 | 91.5 | % | 72,990 | 92.3 | % | 24,875 | 96.6 | % | ||||||||||||||||||||
INVESTMENT | ||||||||||||||||||||||||||||||||
Net investment income earned | 31,821 | 33,778 | 91,103 | 105,925 | ||||||||||||||||||||||||||||
Net realized gain | 309 | 15,231 | 15,770 | 26,983 | ||||||||||||||||||||||||||||
Total income before income tax | 67,666 | 77,697 | 179,863 | 157,783 | ||||||||||||||||||||||||||||
Federal income tax expense | 17,938 | 19,099 | 37,729 | 32,052 | ||||||||||||||||||||||||||||
Net income | $ | 49,728 | 58,598 | 142,134 | 125,731 | |||||||||||||||||||||||||||
Policyholders' Surplus | ||||||||||||||||||||||||||||||||
Surplus, beginning of period | $ | 1,344,630 | 1,292,961 | 1,307,842 | 1,256,431 | |||||||||||||||||||||||||||
Net income | 49,728 | 58,598 | 142,134 | 125,731 | ||||||||||||||||||||||||||||
Change in deferred taxes | 752 | (3,477 | ) | (11,401 | ) | (10,162 | ) | |||||||||||||||||||||||||
Change in net unrealized capital (losses) | (6,554 | ) | (9,553 | ) | (20,101 | ) | (4,414 | ) | ||||||||||||||||||||||||
Dividends to stockholders | (14,438 | ) | (14,379 | ) | (43,314 | ) | (43,133 | ) | ||||||||||||||||||||||||
Change in non-admitted assets | (8,390 | ) | (1,336 | ) | (12,661 | ) | (2,203 | ) | ||||||||||||||||||||||||
Change in Overfunded Contra Asset | (281 | ) | (1,547 | ) | (842 | ) | (4,640 | ) | ||||||||||||||||||||||||
Qual Pen Trans Liab | 1,845 | 1,815 | 5,534 | 5,446 | ||||||||||||||||||||||||||||
Excess Plan Trans Liab | 44 | 8 | 130 | 23 | ||||||||||||||||||||||||||||
PRL Plan Trans Liab | 7 | 7 | 22 | 18 | ||||||||||||||||||||||||||||
Net change in surplus for period | 22,713 | 30,136 | 59,501 | 66,666 | ||||||||||||||||||||||||||||
Surplus, end of period | $ | 1,367,343 | 1,323,097 | 1,367,343 | 1,323,097 | |||||||||||||||||||||||||||
Statutory underwriting gain | $ | 35,536 | 28,688 | 72,990 | 24,875 | |||||||||||||||||||||||||||
Adjustments under GAAP: | ||||||||||||||||||||||||||||||||
Deferred policy acquisition costs | 10,442 | 7,595 | 28,058 | 16,700 | ||||||||||||||||||||||||||||
Other, net | (1,147 | ) | (1,846 | ) | (1,072 | ) | (2,069 | ) | ||||||||||||||||||||||||
GAAP underwriting gain | $ | 44,831 | 34,437 | 99,976 | 39,506 | |||||||||||||||||||||||||||
Note: Some amounts or ratios may not foot due to rounding
Selective Insurance Group, Inc. and Consolidated Subsidiaries
Alternative Investments
as of September 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 | 2,070,860 | 6,516,961 | 1,635,744 | 0.86 | 1.17 | |||||||||||||||||||||
Silverpeak RE III | 2008 | 15,000,000 | 7,847,821 | 2,337,031 | (240,492 | ) | 0.08 | 0.40 | ||||||||||||||||||||
Total - Real Estate | 35,000,000 | 9,918,681 | 8,853,992 | 1,395,252 | 0.66 | 0.97 | ||||||||||||||||||||||
Mezzanine Financing | ||||||||||||||||||||||||||||
Neovara Euro Mezz | 2004 | 9,000,000 | - | - | - | 0.98 | 0.98 | |||||||||||||||||||||
GS Mezz V | 2007 | 25,000,000 | 10,223,976 | 2,535,000 | 172,683 | 1.20 | 1.33 | |||||||||||||||||||||
New Canaan V | 2012 | 7,000,000 | 1,315,741 | 3,477,477 | 110,093 | 0.57 | 1.12 | |||||||||||||||||||||
Centerfield Capital | 2012 | 3,000,000 | 1,843,500 | 935,459 | 41,656 | 0.21 | 1.02 | |||||||||||||||||||||
Total - Mezz. Financing | 44,000,000 | 13,383,218 | 6,947,937 | 324,432 | 0.99 | 1.17 | ||||||||||||||||||||||
Distressed Debt | ||||||||||||||||||||||||||||
Varde VIII | 2006 | 10,000,000 | - | 1,700,551 | 67,336 | 1.18 | 1.35 | |||||||||||||||||||||
Distressed Managers III | 2007 | 15,000,000 | 3,048,054 | 5,188,639 | (216,722 | ) | 0.82 | 1.21 | ||||||||||||||||||||
Total - Distressed Debt | 25,000,000 | 3,048,054 | 6,889,190 | (149,386 | ) | 0.98 | 1.27 | |||||||||||||||||||||
Private Equity | ||||||||||||||||||||||||||||
Prospector | 1997 | 5,000,000 | - | 442,132 | 161,758 | 2.82 | 2.91 | |||||||||||||||||||||
Trilantic Capital Partners III | 2004 | 10,000,000 | 1,373,537 | 1,776,610 | (646,819 | ) | 1.63 | 1.82 | ||||||||||||||||||||
NB Co-Invest | 2006 | 15,000,000 | 1,398,786 | 5,866,795 | 671,800 | 1.06 | 1.47 | |||||||||||||||||||||
NB Co-Invest III | 2015 | 15,000,000 | 15,000,000 | - | - | - | - | |||||||||||||||||||||
Trilantic Capital Partners IV | 2007 | 11,098,351 | 1,512,816 | 5,628,312 | (1,023,151 | ) | 1.16 | 1.67 | ||||||||||||||||||||
Trilantic Capital Partners V | 2012 | 7,000,000 | 4,540,668 | 2,077,943 | (268,965 | ) | 0.01 | 0.85 | ||||||||||||||||||||
Total - Private Equity | 63,098,351 | 23,825,807 | 15,791,792 | (1,105,376 | ) | 1.36 | 1.73 | |||||||||||||||||||||
Private Equity, Secondary Market | ||||||||||||||||||||||||||||
NB SOF | 2005 | 12,000,000 | 899,494 | 3,214,009 | 69,034 | 1.06 | 1.35 | |||||||||||||||||||||
Vintage IV | 2007 | 20,000,000 | 4,241,625 | 8,932,506 | 124,854 | 0.91 | 1.37 | |||||||||||||||||||||
NB SOF II | 2008 | 12,000,000 | 1,953,370 | 5,356,496 | 145,951 | 1.08 | 1.51 | |||||||||||||||||||||
Total - Pvt. Eq. Sec. Mkt. | 44,000,000 | 7,094,489 | 17,503,011 | 339,839 | 1.00 | 1.40 | ||||||||||||||||||||||
Energy/Power Generation | ||||||||||||||||||||||||||||
ArcLight I | 2002 | 15,000,000 | - | 12,455 | - | 1.81 | 1.81 | |||||||||||||||||||||
ArcLight II | 2003 | 15,000,000 | - | 210,482 | 51,814 | 1.41 | 1.42 | |||||||||||||||||||||
ArcLight III | 2006 | 15,000,000 | 2,037,794 | 1,163,392 | 190,825 | 1.36 | 1.43 | |||||||||||||||||||||
Quintana Energy | 2006 | 10,000,000 | 284,272 | 5,299,590 | (3,033,428 | ) | 0.60 | 1.14 | ||||||||||||||||||||
ArcLight IV | 2007 | 10,000,000 | 2,287,578 | 2,204,965 | 80,582 | 1.23 | 1.45 | |||||||||||||||||||||
Arclight VI | 2014 | 15,000,000 | 12,247,768 | 2,752,232 | - | - | 1.00 | |||||||||||||||||||||
Total - Energy/Power Generation | 80,000,000 | 16,857,412 | 11,643,116 | (2,710,207 | ) | 1.30 | 1.46 | |||||||||||||||||||||
Venture Capital | ||||||||||||||||||||||||||||
Venture V | 2001 | 9,400,000 | 150,000 | 6,538,705 | 1,124,400 | 0.82 | 1.53 | |||||||||||||||||||||
Total - Venture Capital | 9,400,000 | 150,000 | 6,538,705 | 1,124,400 | 0.82 | 1.53 | ||||||||||||||||||||||
TOTAL - ALTERNATIVE INVESTMENTS | $ | 300,498,351 | 74,277,660 | 74,167,743 | (781,046 | ) | 1.10 | 1.38 |
(1) Distributed to paid in ratio
(2)Total value to paid in ratio
Exhibit may not foot due to rounding