Companies: 10,796     total market cap: C$195.320 T
$USD๐Ÿ‡บ๐Ÿ‡ธโ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณยฃGBP๐Ÿ‡ฌ๐Ÿ‡ง$AUD๐Ÿ‡ฆ๐Ÿ‡บ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
Selective Insurance
SIGI
#3204
Rank
C$6.68 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
C$111.35
Share price
-1.03%
Change (1 day)
-8.06%
Change (1 year)
๐Ÿฆ Insurance
Categories
  1. Selective Insurance
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2023 Q3

Selective Insurance - 10-Q quarterly report FY2023 Q3


Text size:
FALSE2023Q3000023055712-3100002305572023-01-012023-09-300000230557us-gaap:CommonStockMember2023-01-012023-09-300000230557us-gaap:NoncumulativePreferredStockMember2023-01-012023-09-3000002305572023-10-31xbrli:shares00002305572023-09-30iso4217:USD00002305572022-12-31iso4217:USDxbrli:shares00002305572023-07-012023-09-3000002305572022-07-012022-09-3000002305572022-01-012022-09-300000230557us-gaap:PreferredStockMember2023-06-300000230557us-gaap:PreferredStockMember2022-06-300000230557us-gaap:PreferredStockMember2022-12-310000230557us-gaap:PreferredStockMember2021-12-310000230557us-gaap:PreferredStockMember2023-07-012023-09-300000230557us-gaap:PreferredStockMember2022-07-012022-09-300000230557us-gaap:PreferredStockMember2023-01-012023-09-300000230557us-gaap:PreferredStockMember2022-01-012022-09-300000230557us-gaap:PreferredStockMember2023-09-300000230557us-gaap:PreferredStockMember2022-09-300000230557us-gaap:CommonStockMember2023-06-300000230557us-gaap:CommonStockMember2022-06-300000230557us-gaap:CommonStockMember2022-12-310000230557us-gaap:CommonStockMember2021-12-310000230557us-gaap:CommonStockMember2023-07-012023-09-300000230557us-gaap:CommonStockMember2022-07-012022-09-300000230557us-gaap:CommonStockMember2023-01-012023-09-300000230557us-gaap:CommonStockMember2022-01-012022-09-300000230557us-gaap:CommonStockMember2023-09-300000230557us-gaap:CommonStockMember2022-09-300000230557us-gaap:AdditionalPaidInCapitalMember2023-06-300000230557us-gaap:AdditionalPaidInCapitalMember2022-06-300000230557us-gaap:AdditionalPaidInCapitalMember2022-12-310000230557us-gaap:AdditionalPaidInCapitalMember2021-12-310000230557us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000230557us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000230557us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300000230557us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300000230557us-gaap:AdditionalPaidInCapitalMember2023-09-300000230557us-gaap:AdditionalPaidInCapitalMember2022-09-300000230557us-gaap:RetainedEarningsMember2023-06-300000230557us-gaap:RetainedEarningsMember2022-06-300000230557us-gaap:RetainedEarningsMember2022-12-310000230557us-gaap:RetainedEarningsMember2021-12-310000230557us-gaap:RetainedEarningsMember2023-07-012023-09-300000230557us-gaap:RetainedEarningsMember2022-07-012022-09-300000230557us-gaap:RetainedEarningsMember2023-01-012023-09-300000230557us-gaap:RetainedEarningsMember2022-01-012022-09-300000230557us-gaap:RetainedEarningsMember2023-09-300000230557us-gaap:RetainedEarningsMember2022-09-300000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000230557us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000230557us-gaap:TreasuryStockCommonMember2023-06-300000230557us-gaap:TreasuryStockCommonMember2022-06-300000230557us-gaap:TreasuryStockCommonMember2022-12-310000230557us-gaap:TreasuryStockCommonMember2021-12-310000230557us-gaap:TreasuryStockCommonMember2023-07-012023-09-300000230557us-gaap:TreasuryStockCommonMember2022-07-012022-09-300000230557us-gaap:TreasuryStockCommonMember2023-01-012023-09-300000230557us-gaap:TreasuryStockCommonMember2022-01-012022-09-300000230557us-gaap:TreasuryStockCommonMember2023-09-300000230557us-gaap:TreasuryStockCommonMember2022-09-3000002305572022-09-3000002305572023-06-3000002305572022-06-3000002305572021-12-310000230557us-gaap:AvailableforsaleSecuritiesMember2023-01-012023-09-300000230557us-gaap:AvailableforsaleSecuritiesMember2022-01-012022-09-300000230557us-gaap:EquitySecuritiesMember2023-01-012023-09-300000230557us-gaap:EquitySecuritiesMember2022-01-012022-09-300000230557us-gaap:USTreasuryAndGovernmentMember2023-09-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2023-09-300000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2023-09-300000230557us-gaap:CorporateDebtSecuritiesMember2023-09-300000230557us-gaap:AssetBackedSecuritiesMember2023-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2023-09-300000230557us-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000230557us-gaap:USTreasuryAndGovernmentMember2022-12-310000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2022-12-310000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000230557us-gaap:CorporateDebtSecuritiesMember2022-12-310000230557us-gaap:AssetBackedSecuritiesMember2022-12-310000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310000230557us-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2023-06-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2023-07-012023-09-300000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2023-06-300000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2023-07-012023-09-300000230557us-gaap:CorporateDebtSecuritiesMember2023-06-300000230557us-gaap:CorporateDebtSecuritiesMember2023-07-012023-09-300000230557us-gaap:AssetBackedSecuritiesMember2023-06-300000230557us-gaap:AssetBackedSecuritiesMember2023-07-012023-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2023-06-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2023-07-012023-09-300000230557us-gaap:CommercialMortgageBackedSecuritiesMember2023-06-300000230557us-gaap:CommercialMortgageBackedSecuritiesMember2023-07-012023-09-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2022-06-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2022-07-012022-09-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2022-09-300000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2022-06-300000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2022-07-012022-09-300000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2022-09-300000230557us-gaap:CorporateDebtSecuritiesMember2022-06-300000230557us-gaap:CorporateDebtSecuritiesMember2022-07-012022-09-300000230557us-gaap:CorporateDebtSecuritiesMember2022-09-300000230557us-gaap:AssetBackedSecuritiesMember2022-06-300000230557us-gaap:AssetBackedSecuritiesMember2022-07-012022-09-300000230557us-gaap:AssetBackedSecuritiesMember2022-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2022-06-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2022-07-012022-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2022-09-300000230557us-gaap:CommercialMortgageBackedSecuritiesMember2022-06-300000230557us-gaap:CommercialMortgageBackedSecuritiesMember2022-07-012022-09-300000230557us-gaap:CommercialMortgageBackedSecuritiesMember2022-09-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2023-01-012023-09-300000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2023-01-012023-09-300000230557us-gaap:CorporateDebtSecuritiesMember2023-01-012023-09-300000230557us-gaap:AssetBackedSecuritiesMember2023-01-012023-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2023-01-012023-09-300000230557us-gaap:CommercialMortgageBackedSecuritiesMember2023-01-012023-09-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2021-12-310000230557us-gaap:ForeignGovernmentDebtSecuritiesMember2022-01-012022-09-300000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310000230557us-gaap:USStatesAndPoliticalSubdivisionsMember2022-01-012022-09-300000230557us-gaap:CorporateDebtSecuritiesMember2021-12-310000230557us-gaap:CorporateDebtSecuritiesMember2022-01-012022-09-300000230557us-gaap:AssetBackedSecuritiesMember2021-12-310000230557us-gaap:AssetBackedSecuritiesMember2022-01-012022-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2021-12-310000230557us-gaap:ResidentialMortgageBackedSecuritiesMember2022-01-012022-09-300000230557us-gaap:CommercialMortgageBackedSecuritiesMember2021-12-310000230557us-gaap:CommercialMortgageBackedSecuritiesMember2022-01-012022-09-300000230557us-gaap:AvailableforsaleSecuritiesMember2023-09-300000230557us-gaap:AvailableforsaleSecuritiesMember2022-12-310000230557us-gaap:AvailableforsaleSecuritiesMember2023-09-300000230557us-gaap:AvailableforsaleSecuritiesMember2022-12-310000230557us-gaap:PrivateEquityFundsMember2023-09-300000230557us-gaap:PrivateEquityFundsMember2022-12-310000230557sigi:PrivateCreditFundsMember2023-09-300000230557sigi:PrivateCreditFundsMember2022-12-310000230557sigi:RealAssetsMember2023-09-300000230557sigi:RealAssetsMember2022-12-310000230557srt:PartnershipInterestMember2023-09-300000230557srt:PartnershipInterestMember2022-12-310000230557sigi:InvestmentsAccountedForUnderTheEquityMethodMember2023-07-012023-09-300000230557sigi:InvestmentsAccountedForUnderTheEquityMethodMember2022-07-012022-09-300000230557sigi:InvestmentsAccountedForUnderTheEquityMethodMember2023-01-012023-09-300000230557sigi:InvestmentsAccountedForUnderTheEquityMethodMember2022-01-012022-09-300000230557srt:PartnershipInterestMember2023-07-012023-09-300000230557srt:PartnershipInterestMember2022-07-012022-09-300000230557srt:PartnershipInterestMember2023-01-012023-09-300000230557srt:PartnershipInterestMember2022-01-012022-09-300000230557srt:FederalHomeLoanBankOfIndianapolisMemberus-gaap:USTreasuryAndGovernmentMember2023-09-300000230557srt:FederalHomeLoanBankOfNewYorkMemberus-gaap:USTreasuryAndGovernmentMember2023-09-300000230557srt:FederalHomeLoanBankOfIndianapolisMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-09-300000230557srt:FederalHomeLoanBankOfNewYorkMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMembersrt:FederalHomeLoanBankOfIndianapolisMember2023-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMembersrt:FederalHomeLoanBankOfNewYorkMember2023-09-300000230557srt:FederalHomeLoanBankOfIndianapolisMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000230557srt:FederalHomeLoanBankOfNewYorkMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000230557srt:FederalHomeLoanBankOfIndianapolisMember2023-09-300000230557srt:FederalHomeLoanBankOfNewYorkMember2023-09-30xbrli:pure0000230557us-gaap:FixedMaturitiesMember2023-07-012023-09-300000230557us-gaap:FixedMaturitiesMember2022-07-012022-09-300000230557us-gaap:FixedMaturitiesMember2023-01-012023-09-300000230557us-gaap:FixedMaturitiesMember2022-01-012022-09-300000230557sigi:CommercialMortgageLoansMember2023-07-012023-09-300000230557sigi:CommercialMortgageLoansMember2022-07-012022-09-300000230557sigi:CommercialMortgageLoansMember2023-01-012023-09-300000230557sigi:CommercialMortgageLoansMember2022-01-012022-09-300000230557us-gaap:EquitySecuritiesMember2023-07-012023-09-300000230557us-gaap:EquitySecuritiesMember2022-07-012022-09-300000230557us-gaap:ShortTermInvestmentsMember2023-07-012023-09-300000230557us-gaap:ShortTermInvestmentsMember2022-07-012022-09-300000230557us-gaap:ShortTermInvestmentsMember2023-01-012023-09-300000230557us-gaap:ShortTermInvestmentsMember2022-01-012022-09-300000230557us-gaap:OtherInvestmentsMember2023-07-012023-09-300000230557us-gaap:OtherInvestmentsMember2022-07-012022-09-300000230557us-gaap:OtherInvestmentsMember2023-01-012023-09-300000230557us-gaap:OtherInvestmentsMember2022-01-012022-09-300000230557us-gaap:InvestmentIncomeExpenseMember2023-07-012023-09-300000230557us-gaap:InvestmentIncomeExpenseMember2022-07-012022-09-300000230557us-gaap:InvestmentIncomeExpenseMember2023-01-012023-09-300000230557us-gaap:InvestmentIncomeExpenseMember2022-01-012022-09-300000230557us-gaap:AvailableforsaleSecuritiesMember2023-07-012023-09-300000230557us-gaap:AvailableforsaleSecuritiesMember2022-07-012022-09-300000230557us-gaap:HeldtomaturitySecuritiesMember2023-07-012023-09-300000230557us-gaap:HeldtomaturitySecuritiesMember2022-07-012022-09-300000230557us-gaap:HeldtomaturitySecuritiesMember2023-01-012023-09-300000230557us-gaap:HeldtomaturitySecuritiesMember2022-01-012022-09-300000230557sigi:SevenPointTwentyFivePercentSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300000230557sigi:SevenPointTwentyFivePercentSeniorNotesMember2023-09-300000230557sigi:SevenPointTwentyFivePercentSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000230557sigi:SevenPointTwentyFivePercentSeniorNotesMember2022-12-310000230557sigi:SixPointSeventyPercentSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300000230557sigi:SixPointSeventyPercentSeniorNotesMember2023-09-300000230557sigi:SixPointSeventyPercentSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000230557sigi:SixPointSeventyPercentSeniorNotesMember2022-12-310000230557sigi:FivePointThreeHundredSeventyFiveMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300000230557sigi:FivePointThreeHundredSeventyFiveMember2023-09-300000230557sigi:FivePointThreeHundredSeventyFiveMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000230557sigi:FivePointThreeHundredSeventyFiveMember2022-12-310000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member2023-09-300000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member2022-12-310000230557sigi:LongTermDebtExcludingIssuanceCostsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300000230557sigi:LongTermDebtExcludingIssuanceCostsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000230557sigi:UnamortizedDebtIssuanceCostsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300000230557sigi:UnamortizedDebtIssuanceCostsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-09-300000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-09-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-09-300000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-09-300000230557us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000230557us-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-09-300000230557us-gaap:CommonStockMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:CommonStockMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:CommonStockMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:NonredeemablePreferredStockMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NonredeemablePreferredStockMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NonredeemablePreferredStockMember2023-09-300000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NonredeemablePreferredStockMember2023-09-300000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2022-12-310000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2022-12-310000230557us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000230557us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000230557us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310000230557us-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000230557us-gaap:CommonStockMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:CommonStockMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:CommonStockMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:CommonStockMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000230557us-gaap:FairValueMeasurementsRecurringMemberus-gaap:NonredeemablePreferredStockMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NonredeemablePreferredStockMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NonredeemablePreferredStockMember2022-12-310000230557us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NonredeemablePreferredStockMember2022-12-310000230557us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2023-09-300000230557us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2022-12-310000230557us-gaap:CommonStockMember2022-12-310000230557us-gaap:InvestmentsMember2022-12-310000230557us-gaap:CommonStockMember2023-01-012023-09-300000230557us-gaap:InvestmentsMember2023-01-012023-09-300000230557us-gaap:GainLossOnInvestmentsMember1us-gaap:USStatesAndPoliticalSubdivisionsMember2023-01-012023-09-300000230557us-gaap:CorporateDebtSecuritiesMemberus-gaap:GainLossOnInvestmentsMember12023-01-012023-09-300000230557us-gaap:GainLossOnInvestmentsMember1us-gaap:AssetBackedSecuritiesMember2023-01-012023-09-300000230557us-gaap:GainLossOnInvestmentsMember1us-gaap:CommercialMortgageBackedSecuritiesMember2023-01-012023-09-300000230557us-gaap:CommonStockMemberus-gaap:GainLossOnInvestmentsMember12023-01-012023-09-300000230557us-gaap:InvestmentsMemberus-gaap:GainLossOnInvestmentsMember12023-01-012023-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-01-012023-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:CorporateDebtSecuritiesMember2023-01-012023-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:AssetBackedSecuritiesMember2023-01-012023-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-01-012023-09-300000230557us-gaap:CommonStockMembersigi:NetInvestmentIncomeEarnedMember2023-01-012023-09-300000230557us-gaap:InvestmentsMembersigi:NetInvestmentIncomeEarnedMember2023-01-012023-09-300000230557us-gaap:CommonStockMember2023-09-300000230557us-gaap:InvestmentsMember2023-09-300000230557us-gaap:InvestmentsMember2021-12-310000230557us-gaap:InvestmentsMember2022-01-012022-09-300000230557us-gaap:GainLossOnInvestmentsMember1us-gaap:USStatesAndPoliticalSubdivisionsMember2022-01-012022-09-300000230557us-gaap:CorporateDebtSecuritiesMemberus-gaap:GainLossOnInvestmentsMember12022-01-012022-09-300000230557us-gaap:GainLossOnInvestmentsMember1us-gaap:AssetBackedSecuritiesMember2022-01-012022-09-300000230557us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:GainLossOnInvestmentsMember12022-01-012022-09-300000230557us-gaap:GainLossOnInvestmentsMember1us-gaap:CommercialMortgageBackedSecuritiesMember2022-01-012022-09-300000230557us-gaap:InvestmentsMemberus-gaap:GainLossOnInvestmentsMember12022-01-012022-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-01-012022-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:CorporateDebtSecuritiesMember2022-01-012022-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:AssetBackedSecuritiesMember2022-01-012022-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-01-012022-09-300000230557sigi:NetInvestmentIncomeEarnedMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-01-012022-09-300000230557us-gaap:InvestmentsMembersigi:NetInvestmentIncomeEarnedMember2022-01-012022-09-300000230557us-gaap:InvestmentsMember2022-09-300000230557us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CorporateDebtSecuritiesMember2023-09-300000230557us-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CorporateDebtSecuritiesMembersrt:MinimumMember2023-09-300000230557srt:MaximumMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CorporateDebtSecuritiesMember2023-09-300000230557srt:WeightedAverageMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CorporateDebtSecuritiesMember2023-09-300000230557us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000230557us-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000230557srt:MaximumMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000230557srt:WeightedAverageMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:AssetBackedSecuritiesMember2023-09-300000230557us-gaap:InvestmentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-09-300000230557us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CorporateDebtSecuritiesMember2022-12-310000230557us-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CorporateDebtSecuritiesMembersrt:MinimumMember2022-12-310000230557srt:MaximumMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CorporateDebtSecuritiesMember2022-12-310000230557srt:WeightedAverageMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:CorporateDebtSecuritiesMember2022-12-310000230557us-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000230557us-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000230557srt:MaximumMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000230557srt:WeightedAverageMemberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:AssetBackedSecuritiesMember2022-12-310000230557us-gaap:InvestmentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2023-09-300000230557us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2023-09-300000230557us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-09-300000230557us-gaap:FairValueInputsLevel1Member2023-09-300000230557us-gaap:FairValueInputsLevel2Member2023-09-300000230557us-gaap:FairValueInputsLevel3Member2023-09-300000230557sigi:SevenPointTwentyFivePercentSeniorNotesMemberus-gaap:FairValueInputsLevel1Member2023-09-300000230557us-gaap:FairValueInputsLevel2Membersigi:SevenPointTwentyFivePercentSeniorNotesMember2023-09-300000230557sigi:SevenPointTwentyFivePercentSeniorNotesMemberus-gaap:FairValueInputsLevel3Member2023-09-300000230557us-gaap:FairValueInputsLevel1Membersigi:SixPointSeventyPercentSeniorNotesMember2023-09-300000230557us-gaap:FairValueInputsLevel2Membersigi:SixPointSeventyPercentSeniorNotesMember2023-09-300000230557sigi:SixPointSeventyPercentSeniorNotesMemberus-gaap:FairValueInputsLevel3Member2023-09-300000230557sigi:FivePointThreeHundredSeventyFiveMemberus-gaap:FairValueInputsLevel1Member2023-09-300000230557sigi:FivePointThreeHundredSeventyFiveMemberus-gaap:FairValueInputsLevel2Member2023-09-300000230557sigi:FivePointThreeHundredSeventyFiveMemberus-gaap:FairValueInputsLevel3Member2023-09-300000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Memberus-gaap:FairValueInputsLevel1Member2023-09-300000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Memberus-gaap:FairValueInputsLevel2Member2023-09-300000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Memberus-gaap:FairValueInputsLevel3Member2023-09-300000230557us-gaap:LongTermDebtMember2023-09-300000230557us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000230557us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000230557us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2022-12-310000230557us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2022-12-310000230557us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-12-310000230557us-gaap:FairValueInputsLevel1Member2022-12-310000230557us-gaap:FairValueInputsLevel2Member2022-12-310000230557us-gaap:FairValueInputsLevel3Member2022-12-310000230557sigi:SevenPointTwentyFivePercentSeniorNotesMemberus-gaap:FairValueInputsLevel1Member2022-12-310000230557us-gaap:FairValueInputsLevel2Membersigi:SevenPointTwentyFivePercentSeniorNotesMember2022-12-310000230557sigi:SevenPointTwentyFivePercentSeniorNotesMemberus-gaap:FairValueInputsLevel3Member2022-12-310000230557us-gaap:FairValueInputsLevel1Membersigi:SixPointSeventyPercentSeniorNotesMember2022-12-310000230557us-gaap:FairValueInputsLevel2Membersigi:SixPointSeventyPercentSeniorNotesMember2022-12-310000230557sigi:SixPointSeventyPercentSeniorNotesMemberus-gaap:FairValueInputsLevel3Member2022-12-310000230557sigi:FivePointThreeHundredSeventyFiveMemberus-gaap:FairValueInputsLevel1Member2022-12-310000230557sigi:FivePointThreeHundredSeventyFiveMemberus-gaap:FairValueInputsLevel2Member2022-12-310000230557sigi:FivePointThreeHundredSeventyFiveMemberus-gaap:FairValueInputsLevel3Member2022-12-310000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Memberus-gaap:FairValueInputsLevel1Member2022-12-310000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Memberus-gaap:FairValueInputsLevel2Member2022-12-310000230557sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Memberus-gaap:FairValueInputsLevel3Member2022-12-310000230557us-gaap:LongTermDebtMember2022-12-310000230557srt:AMBestAPlusPlusRatingMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000230557us-gaap:FinancialAssetPastDueMembersrt:AMBestAPlusPlusRatingMember2023-09-300000230557srt:AMBestAPlusPlusRatingMember2023-09-300000230557srt:AMBestAPlusRatingMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000230557us-gaap:FinancialAssetPastDueMembersrt:AMBestAPlusRatingMember2023-09-300000230557srt:AMBestAPlusRatingMember2023-09-300000230557us-gaap:FinancialAssetNotPastDueMembersrt:AMBestARatingMember2023-09-300000230557us-gaap:FinancialAssetPastDueMembersrt:AMBestARatingMember2023-09-300000230557srt:AMBestARatingMember2023-09-300000230557us-gaap:FinancialAssetNotPastDueMembersrt:AMBestAMinusRatingMember2023-09-300000230557us-gaap:FinancialAssetPastDueMembersrt:AMBestAMinusRatingMember2023-09-300000230557srt:AMBestAMinusRatingMember2023-09-300000230557sigi:AMBestRatedReinsurerMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000230557sigi:AMBestRatedReinsurerMemberus-gaap:FinancialAssetPastDueMember2023-09-300000230557sigi:AMBestRatedReinsurerMember2023-09-300000230557sigi:TotalfederalandstatepoolsMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000230557us-gaap:FinancialAssetPastDueMembersigi:TotalfederalandstatepoolsMember2023-09-300000230557sigi:TotalfederalandstatepoolsMember2023-09-300000230557sigi:OtherFederalAndStatePoolsMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000230557us-gaap:FinancialAssetPastDueMembersigi:OtherFederalAndStatePoolsMember2023-09-300000230557sigi:OtherFederalAndStatePoolsMember2023-09-300000230557sigi:TotalNonRatedReinsurerMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000230557sigi:TotalNonRatedReinsurerMemberus-gaap:FinancialAssetPastDueMember2023-09-300000230557sigi:TotalNonRatedReinsurerMember2023-09-300000230557sigi:ReinsuranceRecoverableforPaidandUnpaidClaimsandClaimsAdjustmentsGrossMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000230557us-gaap:FinancialAssetPastDueMembersigi:ReinsuranceRecoverableforPaidandUnpaidClaimsandClaimsAdjustmentsGrossMember2023-09-300000230557srt:AMBestAPlusPlusRatingMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000230557us-gaap:FinancialAssetPastDueMembersrt:AMBestAPlusPlusRatingMember2022-12-310000230557srt:AMBestAPlusPlusRatingMember2022-12-310000230557srt:AMBestAPlusRatingMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000230557us-gaap:FinancialAssetPastDueMembersrt:AMBestAPlusRatingMember2022-12-310000230557srt:AMBestAPlusRatingMember2022-12-310000230557us-gaap:FinancialAssetNotPastDueMembersrt:AMBestARatingMember2022-12-310000230557us-gaap:FinancialAssetPastDueMembersrt:AMBestARatingMember2022-12-310000230557srt:AMBestARatingMember2022-12-310000230557us-gaap:FinancialAssetNotPastDueMembersrt:AMBestAMinusRatingMember2022-12-310000230557us-gaap:FinancialAssetPastDueMembersrt:AMBestAMinusRatingMember2022-12-310000230557srt:AMBestAMinusRatingMember2022-12-310000230557sigi:AMBestRatedReinsurerMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000230557sigi:AMBestRatedReinsurerMemberus-gaap:FinancialAssetPastDueMember2022-12-310000230557sigi:AMBestRatedReinsurerMember2022-12-310000230557sigi:TotalfederalandstatepoolsMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000230557us-gaap:FinancialAssetPastDueMembersigi:TotalfederalandstatepoolsMember2022-12-310000230557sigi:TotalfederalandstatepoolsMember2022-12-310000230557sigi:OtherFederalAndStatePoolsMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000230557us-gaap:FinancialAssetPastDueMembersigi:OtherFederalAndStatePoolsMember2022-12-310000230557sigi:OtherFederalAndStatePoolsMember2022-12-310000230557sigi:TotalNonRatedReinsurerMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000230557sigi:TotalNonRatedReinsurerMemberus-gaap:FinancialAssetPastDueMember2022-12-310000230557sigi:TotalNonRatedReinsurerMember2022-12-310000230557sigi:ReinsuranceRecoverableforPaidandUnpaidClaimsandClaimsAdjustmentsGrossMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000230557us-gaap:FinancialAssetPastDueMembersigi:ReinsuranceRecoverableforPaidandUnpaidClaimsandClaimsAdjustmentsGrossMember2022-12-310000230557sigi:NationalFloodInsuranceProgramMember2023-01-012023-09-300000230557sigi:DirectAssumedAndCededReinsuranceAmountsMember2023-07-012023-09-300000230557sigi:DirectAssumedAndCededReinsuranceAmountsMember2022-07-012022-09-300000230557sigi:DirectAssumedAndCededReinsuranceAmountsMember2023-01-012023-09-300000230557sigi:DirectAssumedAndCededReinsuranceAmountsMember2022-01-012022-09-300000230557sigi:ChangeinHistoricalClaimRateExperienceMember2023-01-012023-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMember2023-01-012023-09-300000230557sigi:ChangeinHistoricalClaimRateExperienceMemberus-gaap:PropertyInsuranceProductLineMember2023-01-012023-09-300000230557us-gaap:WorkersCompensationInsuranceMembersigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMember2023-01-012023-09-300000230557sigi:ESLinesMembersigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMember2023-01-012023-09-300000230557sigi:PersonalAutomobileMembersigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMember2023-01-012023-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMembersigi:CommercialAutomobileMember2023-01-012023-09-300000230557sigi:ChangeinHistoricalClaimRateExperienceMember2022-01-012022-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMember2022-01-012022-09-300000230557sigi:ChangeinHistoricalClaimRateExperienceMemberus-gaap:PropertyInsuranceProductLineMember2022-01-012022-09-300000230557us-gaap:WorkersCompensationInsuranceMembersigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMember2022-01-012022-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMembersigi:SuretyLinesMember2022-01-012022-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMembersigi:BusinessOwnersPoliciesMember2022-01-012022-09-300000230557us-gaap:GeneralLiabilityMembersigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMember2022-01-012022-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ChangeinHistoricalClaimRateExperienceMembersigi:CommercialAutomobileMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMemberus-gaap:GeneralLiabilityMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMemberus-gaap:GeneralLiabilityMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMemberus-gaap:GeneralLiabilityMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMemberus-gaap:GeneralLiabilityMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:CommercialAutomobileMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:CommercialAutomobileMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:CommercialAutomobileMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:CommercialAutomobileMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:CommercialPropertyMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:CommercialPropertyMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:CommercialPropertyMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:CommercialPropertyMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:WorkersCompensationMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:WorkersCompensationMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:WorkersCompensationMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:WorkersCompensationMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:BusinessOwnersPoliciesMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:BusinessOwnersPoliciesMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:BusinessOwnersPoliciesMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:BusinessOwnersPoliciesMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMemberus-gaap:SuretySegmentMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMemberus-gaap:SuretySegmentMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMemberus-gaap:SuretySegmentMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMemberus-gaap:SuretySegmentMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:OtherCommercialMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:OtherCommercialMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:OtherCommercialMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:OtherCommercialMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:MiscellaneousIncomeMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:MiscellaneousIncomeMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMembersigi:MiscellaneousIncomeMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMembersigi:MiscellaneousIncomeMember2022-01-012022-09-300000230557sigi:StandardCommercialLinesMember2023-07-012023-09-300000230557sigi:StandardCommercialLinesMember2022-07-012022-09-300000230557sigi:StandardCommercialLinesMember2023-01-012023-09-300000230557sigi:StandardCommercialLinesMember2022-01-012022-09-300000230557sigi:StandardPersonalLinesMembersigi:PersonalAutomobileMember2023-07-012023-09-300000230557sigi:StandardPersonalLinesMembersigi:PersonalAutomobileMember2022-07-012022-09-300000230557sigi:StandardPersonalLinesMembersigi:PersonalAutomobileMember2023-01-012023-09-300000230557sigi:StandardPersonalLinesMembersigi:PersonalAutomobileMember2022-01-012022-09-300000230557sigi:StandardPersonalLinesMembersigi:HomeownersMember2023-07-012023-09-300000230557sigi:StandardPersonalLinesMembersigi:HomeownersMember2022-07-012022-09-300000230557sigi:StandardPersonalLinesMembersigi:HomeownersMember2023-01-012023-09-300000230557sigi:StandardPersonalLinesMembersigi:HomeownersMember2022-01-012022-09-300000230557sigi:StandardPersonalLinesMembersigi:OtherPersonalMember2023-07-012023-09-300000230557sigi:StandardPersonalLinesMembersigi:OtherPersonalMember2022-07-012022-09-300000230557sigi:StandardPersonalLinesMembersigi:OtherPersonalMember2023-01-012023-09-300000230557sigi:StandardPersonalLinesMembersigi:OtherPersonalMember2022-01-012022-09-300000230557sigi:StandardPersonalLinesMembersigi:MiscellaneousIncomeMember2023-07-012023-09-300000230557sigi:StandardPersonalLinesMembersigi:MiscellaneousIncomeMember2022-07-012022-09-300000230557sigi:StandardPersonalLinesMembersigi:MiscellaneousIncomeMember2023-01-012023-09-300000230557sigi:StandardPersonalLinesMembersigi:MiscellaneousIncomeMember2022-01-012022-09-300000230557sigi:StandardPersonalLinesMember2023-07-012023-09-300000230557sigi:StandardPersonalLinesMember2022-07-012022-09-300000230557sigi:StandardPersonalLinesMember2023-01-012023-09-300000230557sigi:StandardPersonalLinesMember2022-01-012022-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ESLinesMember2023-07-012023-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ESLinesMember2022-07-012022-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ESLinesMember2023-01-012023-09-300000230557sigi:CasualtyInsuranceProductLineMembersigi:ESLinesMember2022-01-012022-09-300000230557sigi:ESLinesMemberus-gaap:PropertyInsuranceProductLineMember2023-07-012023-09-300000230557sigi:ESLinesMemberus-gaap:PropertyInsuranceProductLineMember2022-07-012022-09-300000230557sigi:ESLinesMemberus-gaap:PropertyInsuranceProductLineMember2023-01-012023-09-300000230557sigi:ESLinesMemberus-gaap:PropertyInsuranceProductLineMember2022-01-012022-09-300000230557sigi:ESLinesMember2023-07-012023-09-300000230557sigi:ESLinesMember2022-07-012022-09-300000230557sigi:ESLinesMember2023-01-012023-09-300000230557sigi:ESLinesMember2022-01-012022-09-300000230557sigi:InvestmentsSIGIMember2023-07-012023-09-300000230557sigi:InvestmentsSIGIMember2022-07-012022-09-300000230557sigi:InvestmentsSIGIMember2023-01-012023-09-300000230557sigi:InvestmentsSIGIMember2022-01-012022-09-300000230557sigi:OperatingSegmentsSIGIMember2023-07-012023-09-300000230557sigi:OperatingSegmentsSIGIMember2022-07-012022-09-300000230557sigi:OperatingSegmentsSIGIMember2023-01-012023-09-300000230557sigi:OperatingSegmentsSIGIMember2022-01-012022-09-300000230557us-gaap:PensionPlansDefinedBenefitMember2023-07-012023-09-300000230557us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300000230557us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300000230557us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300000230557us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310000230557us-gaap:AvailableforsaleSecuritiesMember2022-12-310000230557us-gaap:InvestmentsMember2022-12-310000230557us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000230557us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-09-300000230557us-gaap:AvailableforsaleSecuritiesMember2023-01-012023-09-300000230557us-gaap:InvestmentsMember2023-01-012023-09-300000230557us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300000230557us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-09-300000230557us-gaap:AvailableforsaleSecuritiesMember2023-09-300000230557us-gaap:InvestmentsMember2023-09-300000230557us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-09-300000230557us-gaap:HeldtomaturitySecuritiesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000230557us-gaap:HeldtomaturitySecuritiesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000230557us-gaap:HeldtomaturitySecuritiesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000230557us-gaap:HeldtomaturitySecuritiesMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000230557us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithoutAllowanceForCreditLossParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000230557us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithoutAllowanceForCreditLossParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000230557us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithoutAllowanceForCreditLossParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000230557us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithoutAllowanceForCreditLossParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000230557us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000230557us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000230557us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000230557us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000230557us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000230557us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000230557us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000230557us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000230557us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000230557us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000230557us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000230557us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended: September 30, 2023
or 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from_____________________________to_____________________________
 
Commission File Number: 001-33067

Selective Insurance Logo.jpg

SELECTIVE INSURANCE GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)

New Jersey22-2168890
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)

40 Wantage Avenue, Branchville, New Jersey 07890
(Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code: (973) 948-3000

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol (s)Name of each exchange on which registered
Common Stock, par value $2 per shareSIGIThe Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, without par valueSIGIPThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☒Accelerated filer☐Emerging growth company☐
Non-accelerated filer☐Smaller reporting company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 31, 2023, there were 60,588,494 shares of common stock, par value $2.00 per share, outstanding. 

    
SELECTIVE INSURANCE GROUP, INC.
Table of Contents
  Page No.
 
 
 
1
 
2
 
3
 
4
 
5
 
6
 
 
22
 
22
 
23
 
24
 
27
 
38
 
38
 
42
42
42
42
43
43
43
43
43
44
44

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.

SELECTIVE INSURANCE GROUP, INC.
CONSOLIDATED BALANCE SHEETS		Unaudited
($ in thousands, except share amounts)September 30, 2023December 31, 2022
ASSETS  
Investments:  
Fixed income securities, held-to-maturity – at carrying value (fair value: $21,892 – 2023; $29,837 – 2022)
$23,240 31,157 
Less: allowance for credit losses— — 
Fixed income securities, held-to-maturity, net of allowance for credit losses23,240 31,157 
Fixed income securities, available-for-sale – at fair value
(allowance for credit losses: $33,538 – 2023 and $45,721 – 2022; amortized cost: $7,689,350 – 2023 and $7,185,754 – 2022)
7,027,104 6,612,107 
Commercial mortgage loans – at carrying value (fair value: $171,386 – 2023 and $139,243 – 2022)
186,114 149,305 
Less: allowance for credit losses(181)(116)
Commercial mortgage loans, net of allowance for credit losses185,933 149,189 
Equity securities – at fair value (cost:  $122,388 – 2023; $167,431 – 2022)
125,618 162,000 
Short-term investments315,026 440,456 
Alternative investments446,805 371,316 
Other investments72,188 71,244 
Total investments (Note 4 and 5)$8,195,914 7,837,469 
Cash109 26 
Restricted cash13,236 25,183 
Accrued investment income62,172 59,167 
Premiums receivable1,348,948 1,101,787 
Less: allowance for credit losses (Note 6)(18,900)(16,100)
Premiums receivable, net of allowance for credit losses1,330,048 1,085,687 
Reinsurance recoverable687,141 784,410 
Less: allowance for credit losses (Note 7)(1,800)(1,600)
Reinsurance recoverable, net of allowance for credit losses685,341 782,810 
Prepaid reinsurance premiums205,189 172,371 
Current federal income tax— 3,545 
Deferred federal income tax199,317 172,733 
Property and equipment – at cost, net of accumulated depreciation and amortization of:
$268,260 – 2023; $251,209 – 2022
81,372 84,306 
Deferred policy acquisition costs425,754 368,624 
Goodwill7,849 7,849 
Other assets221,658 202,491 
Total assets$11,427,959 10,802,261 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Liabilities:  
Reserve for loss and loss expense (Note 8)$5,301,370 5,144,821 
Unearned premiums2,342,196 1,992,781 
Long-term debt504,591 504,676 
Current federal income tax2,538 — 
Accrued salaries and benefits114,239 115,185 
Other liabilities518,602 517,234 
Total liabilities$8,783,536 8,274,697 
Stockholders’ Equity:  
Preferred stock of $0 par value per share:
$200,000 200,000 
Authorized shares: 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share – 2023 and 2022
Common stock of $2 par value per share:
Authorized shares 360,000,000
Issued: 105,172,002 – 2023; 104,847,111 – 2022
210,344 209,694 
Additional paid-in capital516,854 493,488 
Retained earnings2,928,177 2,749,703 
Accumulated other comprehensive income (loss) (Note 11)(575,869)(498,042)
Treasury stock – at cost (shares:  44,585,641 – 2023; 44,508,211 – 2022)
(635,083)(627,279)
Total stockholders’ equity$2,644,423 2,527,564 
Commitments and contingencies
Total liabilities and stockholders’ equity$11,427,959 10,802,261 
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
1
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME		Quarter ended September 30,Nine Months ended September 30,
($ in thousands, except per share amounts)2023202220232022
Revenues:  
Net premiums earned$981,917 853,879 $2,826,403 2,500,601 
Net investment income earned100,863 63,889 290,065 206,713 
Net realized and unrealized investment gains (losses)(6,880)(25,681)(8,962)(108,913)
Other income5,181 2,933 13,919 7,499 
Total revenues1,081,081 895,020 3,121,425 2,605,900 
Expenses:  
Loss and loss expense incurred645,897 547,826 1,859,465 1,566,930 
Amortization of deferred policy acquisition costs201,106 179,048 585,660 522,186 
Other insurance expenses108,504 102,806 325,949 298,310 
Interest expense7,186 7,179 21,610 21,599 
Corporate expenses5,871 5,522 27,308 24,442 
Total expenses968,564 842,381 2,819,992 2,433,467 
Income before federal income tax112,517 52,639 301,433 172,433 
Federal income tax expense:  
Current24,133 14,813 67,004 41,682 
Deferred(824)(4,699)(5,961)(7,624)
Total federal income tax expense23,309 10,114 61,043 34,058 
Net income$89,208 42,525 $240,390 138,375 
Preferred stock dividends2,300 2,300 6,900 6,900 
Net income available to common stockholders$86,908 40,225 $233,490 131,475 
Earnings per common share:  
Net income available to common stockholders - Basic$1.43 0.67 $3.85 2.18 
Net income available to common stockholders - Diluted$1.42 0.66 $3.83 2.16 
    
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.


2
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME		Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Net income $89,208 42,525 $240,390 138,375 
Other comprehensive income (loss), net of tax:  
Unrealized gains (losses) on investment securities:  
Unrealized holding gains (losses) arising during period(80,361)(149,803)(76,219)(532,744)
Unrealized gains (losses) on securities with credit loss recognized in earnings(25,989)(53,946)(13,032)(179,803)
Amounts reclassified into net income:
Held-to-maturity securities— 1 — 2 
Net realized (gains) losses on disposals and losses on intent-to-sell available-for-sale securities3,656 11,246 15,891 38,233 
Credit loss (benefit) expense1,949 3,532 (6,261)33,214 
Total unrealized gains (losses) on investment securities(100,745)(188,970)(79,621)(641,098)
Defined benefit pension and post-retirement plans:  
Amounts reclassified into net income:
Net actuarial loss598 329 1,794 988 
Total defined benefit pension and post-retirement plans598 329 1,794 988 
Other comprehensive income (loss)(100,147)(188,641)(77,827)(640,110)
Comprehensive income (loss)$(10,939)(146,116)$162,563 (501,735)
 
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.


3
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY		Quarter ended September 30,Nine Months ended September 30,
($ in thousands, except share and per share amounts)2023202220232022
Preferred stock:
Beginning of period$200,000 200,000 $200,000 200,000 
Issuance of preferred stock— — — — 
End of period200,000 200,000 200,000 200,000 
Common stock:  
Beginning of period210,296 209,506 209,694 208,902 
Dividend reinvestment plan8 11 27 34 
Stock purchase and compensation plans40 41 623 622 
End of period210,344 209,558 210,344 209,558 
Additional paid-in capital:  
Beginning of period512,040 481,380 493,488 464,347 
Dividend reinvestment plan427 438 1,335 1,325 
Stock purchase and compensation plans4,387 4,421 22,031 20,567 
End of period516,854 486,239 516,854 486,239 
Retained earnings:  
Beginning of period2,859,569 2,660,584 2,749,703 2,603,472 
Net income89,208 42,525 240,390 138,375 
Dividends to preferred stockholders(2,300)(2,300)(6,900)(6,900)
Dividends to common stockholders(18,300)(17,046)(55,016)(51,184)
End of period2,928,177 2,683,763 2,928,177 2,683,763 
Accumulated other comprehensive income (loss):  
Beginning of period(475,722)(336,370)(498,042)115,099 
Other comprehensive income (loss) (100,147)(188,641)(77,827)(640,110)
End of period(575,869)(525,011)(575,869)(525,011)
Treasury stock:  
Beginning of period(634,791)(621,010)(627,279)(608,935)
Acquisition of treasury stock - share repurchase authorization— (5,931)— (12,423)
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans(292)(75)(7,804)(5,658)
End of period(635,083)(627,016)(635,083)(627,016)
Total stockholders’ equity$2,644,423 2,427,533 $2,644,423 2,427,533 
Dividends declared per preferred share$287.50 287.50 $862.50 862.50 
Dividends declared per common share$0.30 0.28 $0.90 0.84 
Preferred stock, shares outstanding:
Beginning of period 8,000 8,000 8,000 8,000 
Issuance of preferred stock— — — — 
End of period8,000 8,000 8,000 8,000 
Common stock, shares outstanding:
Beginning of period60,565,483 60,327,734 60,338,900 60,184,382 
Dividend reinvestment plan4,362 5,647 13,677 17,152 
Stock purchase and compensation plan19,475 20,073 311,214 310,760 
Acquisition of treasury stock - share repurchase authorization— (79,100)— (165,159)
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans(2,959)(863)(77,430)(73,644)
End of period60,586,361 60,273,491 60,586,361 60,273,491 

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

4
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS		Nine Months ended September 30,
($ in thousands)20232022
Operating Activities  
Net income$240,390 138,375 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:  
Depreciation and amortization23,432 34,350 
Stock-based compensation expense16,374 15,123 
Undistributed gains of equity method investments(16,266)(12,971)
Distributions in excess of current year income of equity method investments8,656 33,365 
Net realized and unrealized losses8,962 108,913 
Loss (gain) on disposal of fixed assets(6)— 
Changes in assets and liabilities:  
Increase in reserve for loss and loss expense, net of reinsurance recoverable254,018 271,311 
Increase in unearned premiums, net of prepaid reinsurance316,597 223,332 
Decrease (increase) in net federal income taxes216 (31,607)
Increase in premiums receivable(244,361)(168,286)
Increase in deferred policy acquisition costs(57,130)(44,010)
Increase in accrued investment income(3,038)(5,936)
Decrease in accrued salaries and benefits(946)(8,830)
Increase in other assets(12,496)(31,241)
Decrease in other liabilities(12,096)(36,444)
Net cash provided by (used in) operating activities522,306 485,444 
Investing Activities  
Purchases of fixed income securities, held-to-maturity— (6,692)
Purchases of fixed income securities, available-for-sale(1,999,665)(2,183,013)
Purchases of commercial mortgage loans(38,281)(57,289)
Purchases of equity securities(13,731)(21,044)
Purchases of alternative investments and other investments(83,810)(45,495)
Purchases of short-term investments(3,483,923)(3,123,086)
Sales of fixed income securities, available-for-sale1,115,260 986,367 
Proceeds from commercial mortgage loans1,473 7,875 
Sales of short-term investments3,609,991 3,302,140 
Redemption and maturities of fixed income securities, held-to-maturity7,918 2,508 
Redemption and maturities of fixed income securities, available-for-sale367,495 539,680 
Sales of equity securities53,344 155,670 
Sales of other investments900 2,156 
Distributions from alternative investments and other investments7,765 11,114 
Purchases of property and equipment(14,763)(21,758)
Net cash provided by (used in) investing activities(470,027)(450,867)
Financing Activities  
Dividends to preferred stockholders(6,900)(6,900)
Dividends to common stockholders(53,122)(49,307)
Acquisition of treasury stock(7,804)(18,081)
Net proceeds from stock purchase and compensation plans5,616 5,500 
Proceeds from borrowings20,000 35,000 
Repayments of borrowings(20,000)(35,000)
Repayments of finance lease obligations(1,933)(1,819)
Net cash provided by (used in) financing activities(64,143)(70,607)
Net decrease in cash and restricted cash(11,864)(36,030)
Cash and restricted cash, beginning of period25,209 45,063 
Cash and restricted cash, end of period$13,345 9,033 

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
5
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. Basis of Presentation
The words "Company,” “we,” “us,” or “our” refer to Selective Insurance Group, Inc. (the "Parent") and its subsidiaries, except as expressly indicated or the context requires otherwise. We have prepared our interim unaudited consolidated financial statements (“Financial Statements”) in conformity with (i) United States ("U.S.") generally accepted accounting principles (“GAAP”), and (ii) the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. These require management to make estimates and assumptions that affect the reported financial statement balances and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany accounts and transactions are eliminated in consolidation.

Our Financial Statements reflect all adjustments that, in our opinion, are normal, recurring, and necessary for a fair presentation of our results of operations and financial condition. Our Financial Statements cover the third quarters ended September 30, 2023 (“Third Quarter 2023”) and September 30, 2022 (“Third Quarter 2022”), and the nine-month periods ended September 30, 2023 ("Nine Months 2023") and September 30, 2022 ("Nine Months 2022"). Our Financial Statements do not include all information and disclosures required by GAAP and the SEC for audited annual financial statements. Because interim period results of operations are not necessarily indicative of full-year results, our Financial Statements should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Annual Report”) filed with the SEC.

NOTE 2. Adoption of Accounting Pronouncements 
In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the market transition away from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. Companies can elect to adopt ASU 2020-04 as of the beginning of the interim period that includes March 2020, or any date thereafter through December 31, 2024, as permitted by ASU 2022-06, Reference Rate Reform (Topic 848) — Deferral of the Sunset Date of Topic 848 issued in December 2022. We adopted this guidance in the first quarter of 2023. We are not required to measure the effect of adoption on our financial position, cash flows, or net income because the guidance provides relief from accounting for the effects of the change to a replacement rate.

Pronouncements to be effective in the future
In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual sales restriction on an equity security is not considered when determining the security's fair value. This ASU was issued to eliminate diversity in practice by clarifying that contractual arrangements restricting an entity's ability to sell the security for a certain period of time is a characteristic of the reporting entity and should not be contemplated when determining the security's fair value. ASU 2022-03 requires new disclosures that provide investors with information about the restriction, including the nature and remaining duration of the restriction. The ASU is effective for annual periods beginning after December 15, 2023, including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of this guidance.

In March 2023, the FASB issued ASU 2023-02, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method ("ASU 2023-02"). This ASU allows companies to elect to account for qualifying tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Companies were previously permitted to apply the proportional amortization method only to qualifying tax equity investments in low-income-housing tax credit structures. ASU 2023-02 extends the application of the proportional amortization method to qualifying tax equity investments that generate tax credits through other programs. It also requires new disclosures that provide a better understanding of the nature of the tax equity investments and the effect the tax equity investments and related income tax credits and other income tax benefits have on a company's financial position and results of operations. The ASU is effective for annual periods beginning after December 15, 2023, including interim periods within those fiscal years. We are currently evaluating the impact of this guidance.
6
NOTE 3. Statements of Cash Flows
Supplemental cash flow information was as follows:

 Nine Months ended September 30,
($ in thousands)20232022
Cash paid (received) during the period for:  
Interest$22,712 22,699 
Federal income tax57,000 61,000 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases5,773 6,096 
Operating cash flows from financing leases41 33 
Financing cash flows from finance leases1,933 1,819 
Non-cash items:
Corporate actions related to fixed income securities, available-for-sale ("AFS")1
18,840 32,546 
Conversion of AFS fixed income securities to equity securities— 1,463 
Assets acquired under finance lease arrangements1,584 650 
Assets acquired under operating lease arrangements5,068 15,514 
Non-cash purchase of property and equipment22 — 
1Examples of corporate actions include like-kind exchanges, non-cash acquisitions, and stock splits.

The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equate to the amount reported in the Consolidated Statements of Cash Flows:

($ in thousands)September 30, 2023December 31, 2022
Cash$109 26 
Restricted cash13,236 25,183 
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows$13,345 25,209 

Amounts in restricted cash represent cash received from the National Flood Insurance Program ("NFIP") that can only be used to pay flood claims under the Write Your Own program.

NOTE 4. Investments
(a) Information regarding our AFS securities as of September 30, 2023 and December 31, 2022, were as follows:

September 30, 2023Cost/
Amortized
Cost		Allowance for Credit LossesUnrealized
Gains		Unrealized
Losses		Fair
Value
($ in thousands)
AFS fixed income securities:
U.S. government and government agencies$253,174 — — (26,445)226,729 
Foreign government11,155 (32)— (1,807)9,316 
Obligations of states and political subdivisions672,075 (892)125 (56,557)614,751 
Corporate securities2,684,453 (17,765)2,003 (228,556)2,440,135 
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")1,819,454 (3,218)4,144 (106,665)1,713,715 
Residential mortgage-backed securities ("RMBS")
1,548,758 (11,625)500 (153,174)1,384,459 
Commercial mortgage-backed securities ("CMBS")700,281 (6)— (62,276)637,999 
Total AFS fixed income securities$7,689,350 (33,538)6,772 (635,480)7,027,104 

December 31, 2022Cost/
Amortized
Cost		Allowance for Credit LossesUnrealized
Gains		Unrealized
Losses		Fair
Value
($ in thousands)
AFS fixed income securities:
U.S. government and government agencies$209,528 — 37 (20,326)189,239 
Foreign government11,199 (284)— (1,307)9,608 
Obligations of states and political subdivisions965,231 (1,024)1,812 (48,001)918,018 
Corporate securities2,558,655 (30,330)3,509 (196,809)2,335,025 
CLO and other ABS1,607,660 (2,375)2,408 (121,720)1,485,973 
RMBS1,169,546 (11,597)1,148 (99,265)1,059,832 
CMBS663,935 (111)348 (49,760)614,412 
Total AFS fixed income securities$7,185,754 (45,721)9,262 (537,188)6,612,107 
7
The following tables provide a roll forward of the allowance for credit losses on our AFS fixed income securities for the indicated periods:

Quarter ended September 30, 2023Beginning BalanceCurrent Provision for Securities without Prior AllowanceInitial Allowance for Purchased Credit Deteriorated Assets with Credit DeteriorationIncrease (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell SecuritiesReductions for Securities SoldReductions for Securities Identified as Intent (or Requirement) to Sell during the PeriodEnding Balance
($ in thousands)
Foreign government$34 — — (2)— — 32 
Obligations of states and political subdivisions769 96 — 55 (28)— 892 
Corporate securities16,149 1,939 — (111)(212)— 17,765 
CLO and other ABS2,915 148 — 167 (12)— 3,218 
RMBS11,550 23 — 154 (102)— 11,625 
CMBS8 — — (1)(1)— 6 
Total AFS fixed income securities$31,425 2,206 — 262 (355)— 33,538 

Quarter ended September 30, 2022Beginning BalanceCurrent Provision for Securities without Prior AllowanceInitial Allowance for Purchased Credit Deteriorated Assets with Credit DeteriorationIncrease (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell SecuritiesReductions for Securities SoldReductions for Securities Identified as Intent (or Requirement) to Sell during the PeriodEnding Balance
($ in thousands)
Foreign government$265 40 — 15 — — 320 
Obligations of states and political subdivisions1,206 313 — (181)(27)— 1,311 
Corporate securities35,072 4,061 — 633 (2,733)(63)36,970 
CLO and other ABS3,623 35 — (527)(17)— 3,114 
RMBS10,616 35 — 46 (94)— 10,603 
CMBS18 — — 1 — — 19 
Total AFS fixed income securities$50,800 4,484 — (13)(2,871)(63)52,337 

Nine Months ended September 30, 2023Beginning BalanceCurrent Provision for Securities without Prior AllowanceInitial Allowance for Purchased Credit Deteriorated Assets with Credit DeteriorationIncrease (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell SecuritiesReductions for Securities SoldReductions for Securities Identified as Intent (or Requirement) to Sell during the PeriodEnding Balance
($ in thousands)
Foreign government$284 — — (252)— — 32 
Obligations of states and political subdivisions1,024 100 — (120)(112)— 892 
Corporate securities30,330 6,078 — (14,992)(3,600)(51)17,765 
CLO and other ABS2,375 904 — (40)(21)— 3,218 
RMBS11,597 24 — 334 (330)— 11,625 
CMBS111 1 — 38 (144)— 6 
Total AFS fixed income securities$45,721 7,107 — (15,032)(4,207)(51)33,538 

Nine Months ended September 30, 2022Beginning BalanceCurrent Provision for Securities without Prior AllowanceInitial Allowance for Purchased Credit Deteriorated Assets with Credit DeteriorationIncrease (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell SecuritiesReductions for Securities SoldReductions for Securities Identified as Intent (or Requirement) to Sell during the PeriodEnding Balance
($ in thousands)
Foreign government$46 292 — (4)(14)— 320 
Obligations of states and political subdivisions137 1,371 — (6)(191)— 1,311 
Corporate securities6,682 33,096 — 4,384 (5,925)(1,267)36,970 
CLO and other ABS939 1,580 — 623 (28)— 3,114 
RMBS1,909 225 8,318 473 (322)— 10,603 
CMBS11 18 — (10)— — 19 
Total AFS fixed income securities$9,724 36,582 8,318 5,460 (6,480)(1,267)52,337 

During Nine Months 2023 and Nine Months 2022, we had no write-offs or recoveries of our AFS fixed income securities.
8
For information on our methodology and significant inputs used to measure expected credit losses, our accounting policy for recognizing write-offs of uncollectible amounts, and our treatment of accrued interest, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2022 Annual Report. Accrued interest on AFS securities was $60.7 million as of September 30, 2023, and $56.4 million as of December 31, 2022. We did not record any (i) write-offs of accrued interest during Nine Months 2023, or (ii) material write-offs of accrued interest in Nine Months 2022.

(b) Quantitative information about unrealized losses on our AFS portfolio follows:

September 30, 2023Less than 12 months12 months or longerTotal
($ in thousands)Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
AFS fixed income securities:    
U.S. government and government agencies$126,898 (1,428)99,831 (25,017)226,729 (26,445)
Foreign government1,528 (122)7,788 (1,685)9,316 (1,807)
Obligations of states and political subdivisions307,144 (8,921)282,238 (47,636)589,382 (56,557)
Corporate securities808,733 (27,732)1,392,386 (200,824)2,201,119 (228,556)
CLO and other ABS522,941 (13,560)1,014,419 (93,105)1,537,360 (106,665)
RMBS609,952 (28,785)725,818 (124,389)1,335,770 (153,174)
CMBS182,481 (8,363)455,518 (53,913)637,999 (62,276)
Total AFS fixed income securities$2,559,677 (88,911)3,977,998 (546,569)6,537,675 (635,480)

December 31, 2022Less than 12 months12 months or longerTotal
($ in thousands)Fair
Value		Unrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
AFS fixed income securities:    
U.S. government and government agencies$166,975 (13,658)16,011 (6,668)182,986 (20,326)
Foreign government5,573 (608)2,456 (699)8,029 (1,307)
Obligations of states and political subdivisions681,795 (43,767)16,618 (4,234)698,413 (48,001)
Corporate securities1,889,492 (164,197)133,223 (32,612)2,022,715 (196,809)
CLO and other ABS916,423 (69,155)411,283 (52,565)1,327,706 (121,720)
RMBS887,229 (76,432)108,041 (22,833)995,270 (99,265)
CMBS512,953 (37,815)77,181 (11,945)590,134 (49,760)
Total AFS fixed income securities$5,060,440 (405,632)764,813 (131,556)5,825,253 (537,188)

We currently do not intend to sell any of the securities summarized in the tables above, nor do we believe we will be required to sell any of them. The increase in gross unrealized losses as of September 30, 2023, compared to December 31, 2022, was primarily driven by an increase in benchmark U.S. Treasury rates, partially offset by a tightening of credit spreads. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2022 Annual Report, we have concluded that no additional allowance for credit loss is required on these balances beyond the allowance for credit loss recorded as of September 30, 2023. This conclusion reflects our current judgment about the financial position and future prospects of the entities that issued the investment security and underlying collateral.

(c) AFS and held-to-maturity ("HTM") fixed income securities at September 30, 2023, by contractual maturity are shown below. The maturities of RMBS, CMBS, CLO and other ABS securities were calculated using each security's estimated average life. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
AFSHTM
($ in thousands)Fair ValueCarrying ValueFair Value
Due in one year or less$428,247 224 223 
Due after one year through five years3,197,277 13,833 13,179 
Due after five years through 10 years2,463,374 9,183 8,490 
Due after 10 years938,206 — — 
Total fixed income securities$7,027,104 23,240 21,892 

9
(d) The following table summarizes our alternative investment portfolio by strategy:

September 30, 2023December 31, 2022
($ in thousands)Carrying ValueRemaining CommitmentMaximum Exposure to LossCarrying ValueRemaining CommitmentMaximum Exposure to Loss
Alternative Investments  
   Private equity$306,357 138,325 444,682 280,980 134,676 415,656 
   Private credit102,373 89,809 192,182 54,866 89,481 144,347 
   Real assets38,075 19,161 57,236 35,470 21,945 57,415 
Total alternative investments$446,805 247,295 694,100 371,316 246,102 617,418 

We are contractually committed to make additional investments up to the remaining commitments stated above. We did not provide any non-contractual financial support during 2023 or 2022.

The following table shows gross summarized financial information for our alternative investments portfolio, including the portion we do not own. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information is for the three- and nine-month periods ended June 30:

Income Statement InformationQuarter ended September 30,Nine Months ended September 30,
($ in millions)2023202220232022
Net investment income (loss)$74.3 205.6 $(66.9)612.0 
Realized gains1,108.5 1,983.5 3,752.8 10,964.9 
Net change in unrealized appreciation (depreciation)2,216.3 (3,188.9)7,414.1 (1,973.0)
Net income$3,399.1 (999.8)$11,100.0 9,603.9 
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income$6.5 (5.6)$25.6 22.8 

(e) We have pledged certain AFS fixed income securities as collateral related to our borrowing relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, we had certain securities on deposit with various state and regulatory agencies at September 30, 2023 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral.

The following table summarizes the market value of these securities at September 30, 2023:

($ in millions)FHLBI CollateralFHLBNY CollateralState and
Regulatory Deposits		Total
U.S. government and government agencies$— — 18.7 18.7 
Obligations of states and political subdivisions— — 3.5 3.5 
RMBS61.7 24.7 — 86.4 
CMBS2.5 8.5 — 11.0 
Total pledged as collateral$64.2 33.2 22.2 119.6 

(f) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than to certain U.S. government agencies, as of September 30, 2023, or December 31, 2022.

(g) The components of pre-tax net investment income earned were as follows:

 Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Fixed income securities$90,013 68,236 $254,016 184,305 
Commercial mortgage loans ("CMLs")2,516 1,600 6,680 3,762 
Equity securities2,083 2,604 5,524 7,661 
Short-term investments3,941 1,152 11,483 1,660 
Alternative investments6,473 (5,581)25,637 22,821 
Other investments284 112 515 75 
Investment expenses(4,447)(4,234)(13,790)(13,571)
Net investment income earned$100,863 63,889 $290,065 206,713 

10
(h) The following table summarizes net realized and unrealized investment gains and losses for the periods indicated:

Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Gross gains on sales$367 7,094 $5,307 23,843 
Gross losses on sales(5,264)(19,668)(30,146)(52,573)
Net realized gains (losses) on disposals(4,897)(12,574)(24,839)(28,730)
Net unrealized gains (losses) on equity securities489 (7,777)8,662 (31,791)
Net credit loss benefit (expense) on fixed income securities, AFS(2,468)(4,471)7,925 (42,042)
Net credit loss benefit (expense) on fixed income securities, HTM— 54 — 62 
Net credit loss (expense) on CMLs(4)— (65)— 
Losses on securities for which we have the intent to sell— (913)(645)(6,412)
Net realized and unrealized investment gains (losses)$(6,880)(25,681)$(8,962)(108,913)

Net realized and unrealized investment losses decreased $18.8 million in Third Quarter 2023 compared to Third Quarter 2022, primarily due to (i) an increase in valuations reflecting the current public equities market, and (ii) a decrease in net realized losses on disposals from our AFS fixed income securities portfolio.

Net realized and unrealized investment losses decreased $100.0 million in Nine Months 2023 compared to Nine Months 2022, primarily due to (i) a credit loss benefit recorded on our AFS fixed income securities portfolio in Nine Months 2023 compared to credit loss expense recorded in Nine Months 2022, and (ii) an increase in valuations reflecting the current public equities market. The credit loss benefit in Nine Months 2023 reflected the tightening of credit spreads, partially offset by rising benchmark U.S. Treasury rates.

Net unrealized gains and losses recognized in income on equity securities, as reflected in the table above, included the following:

Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at end of period$200 (5,832)$2,744 (16,334)
On securities sold in period289 (1,945)5,918 (15,457)
Total unrealized gains (losses) recognized in income on equity securities$489 (7,777)$8,662 (31,791)

NOTE 5. Fair Value Measurements
The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and fair values of our financial liabilities as of September 30, 2023, and December 31, 2022:

September 30, 2023December 31, 2022
($ in thousands)Carrying AmountFair ValueCarrying AmountFair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes$49,925 50,293 49,921 51,705 
6.70% Senior Notes99,559 98,175 99,542 99,264 
5.375% Senior Notes294,497 254,421 294,424 258,459 
3.03% borrowings from FHLBI60,000 56,580 60,000 57,175 
Subtotal long-term debt503,981 459,469 503,887 466,603 
Unamortized debt issuance costs(2,759)(2,929)
Finance lease obligations3,369 3,718 
Total long-term debt$504,591 504,676 

For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2022 Annual Report.

11
The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at September 30, 2023, and December 31, 2022:

September 30, 2023 Fair Value Measurements Using
($ in thousands)Assets
 Measured at
 Fair Value		Quoted Prices in
Active Markets for
Identical Assets/
Liabilities (Level 1)		Significant Other
 Observable
Inputs
 (Level 2)		Significant Unobservable
 Inputs
 (Level 3)
Description    
Measured on a recurring basis:    
AFS fixed income securities:
U.S. government and government agencies$226,729 67,185 159,544 — 
Foreign government9,316 — 9,316 — 
Obligations of states and political subdivisions614,751 — 608,108 6,643 
Corporate securities2,440,135 — 2,179,656 260,479 
CLO and other ABS1,713,715 — 1,503,308 210,407 
RMBS1,384,459 — 1,384,459 — 
CMBS637,999 — 637,655 344 
Total AFS fixed income securities7,027,104 67,185 6,482,046 477,873 
Equity securities:
Common stock1
123,942 19,041 — 933 
Preferred stock1,676 1,676 — — 
Total equity securities125,618 20,717 — 933 
Short-term investments315,026 303,193 11,833 — 
Total assets measured at fair value$7,467,748 391,095 6,493,879 478,806 

December 31, 2022 Fair Value Measurements Using
($ in thousands)Assets
 Measured at
 Fair Value		Quoted Prices in
 Active Markets for
Identical Assets/Liabilities
(Level 1)		Significant
Other Observable Inputs
(Level 2)		Significant Unobservable
Inputs
 (Level 3)
Description    
Measured on a recurring basis:    
AFS fixed income securities:
U.S. government and government agencies$189,239 109,240 79,999 — 
Foreign government9,608 — 9,608 — 
Obligations of states and political subdivisions918,018 — 911,357 6,661 
Corporate securities2,335,025 — 2,147,045 187,980 
CLO and other ABS1,485,973 — 1,332,631 153,342 
RMBS1,059,832 — 1,059,832 — 
CMBS614,412 — 614,037 375 
Total AFS fixed income securities6,612,107 109,240 6,154,509 348,358 
Equity securities:
Common stock1
160,355 55,846 — 897 
Preferred stock1,645 1,645 — — 
Total equity securities162,000 57,491 — 897 
Short-term investments440,456 418,199 22,257 — 
Total assets measured at fair value$7,214,563 584,930 6,176,766 349,255 
1Investments amounting to $104.0 million at September 30, 2023, and $103.6 million at December 31, 2022, were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. These investments are not redeemable and the timing of liquidations of the underlying assets is unknown at each reporting period. The fair value amounts in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

12
The following tables provide a summary of Level 3 changes in Nine Months 2023 and Nine Months 2022:

September 30, 2023
($ in thousands)Obligations of States and Political SubdivisionsCorporate SecuritiesCLO and Other ABSCMBSCommon StockTotal
Fair value, December 31, 2022
$6,661 187,980 153,342 375 897 349,255 
Total net gains (losses) for the period included in:
Other comprehensive income (loss) ("OCI")(80)(517)(2,433)35 — (2,995)
   Net realized and unrealized gains (losses)62 289 (110)— (157)84 
Net investment income earned— 359 (12)(264)— 83 
Purchases— 77,567 60,015 — — 137,582 
Sales— — — — — — 
Issuances— — — — — — 
Settlements— (7,437)(4,343)(24)— (11,804)
Transfers into Level 3— 2,238 14,148 2,848 193 19,427 
Transfers out of Level 3— — (10,200)(2,626)— (12,826)
Fair value, September 30, 2023
$6,643 260,479 210,407 344 933 478,806 
Change in unrealized gains (losses) for the period included in earnings for assets held at period end62 289 (110)— (157)84 
Change in unrealized gains (losses) for the period included in OCI for assets held at period end(80)(528)(2,433)35 — (3,006)

September 30, 2022
($ in thousands)Obligation of state and Political SubdivisionsCorporate SecuritiesCLO and Other ABSRMBSCMBSTotal
Fair value, December 31, 2021
$7,745 114,127 124,909 245 4,256 251,282 
Total net gains (losses) for the period included in:
OCI(879)(23,847)(11,436)(17)(477)(36,656)
   Net realized and unrealized gains (losses)(155)(2,345)(771)— (7)(3,278)
Net investment income earned— 49 127 — 46 222 
Purchases— 74,327 44,167 — — 118,494 
Sales— — — — — — 
Issuances— — — — — — 
Settlements— (8,663)(6,678)(11)(15)(15,367)
Transfers into Level 3— 19,214 — — — 19,214 
Transfers out of Level 3— (7,038)(24,646)(217)(3,430)(35,331)
Fair value, September 30, 2022
$6,711 165,824 125,672 — 373 298,580 
Change in unrealized gains (losses) for the period included in earnings for assets held at period end(155)(2,330)(771)— (7)(3,263)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end(879)(23,852)(11,395)(17)(477)(36,620)

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at September 30, 2023, and December 31, 2022:

September 30, 2023
($ in thousands)Assets Measured at Fair ValueValuation TechniquesUnobservable InputsRange Weighted Average
Internal valuations:
Corporate securities$121,401 Discounted Cash FlowIlliquidity Spread
(4.4)% - 5.3%
2.1%
CLO and other ABS98,801 Discounted Cash FlowIlliquidity Spread
0.01% - 19.6%
2.6%
Total internal valuations220,202 
Other1
258,604 
Total Level 3 securities$478,806 

13
December 31, 2022
($ in thousands)Assets Measured at Fair ValueValuation TechniquesUnobservable InputsRangeWeighted Average
Internal valuations:
Corporate securities$81,867 Discounted Cash FlowIlliquidity Spread
(4.4)% - 5.3%
1.3%
CLO and other ABS59,452 Discounted Cash FlowIlliquidity Spread
0.01% - 19.6%
2.5%
Total internal valuations141,319 
Other1
207,936 
Total Level 3 securities$349,255 
1Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency into the inputs used to develop the valuations. The quantitative details of these unobservable inputs are neither provided to us, nor reasonably available to us, and therefore are not included in the tables above.

For the securities in the tables above valued using a discounted cash flow analysis, we apply an illiquidity spread in our determination of fair value. An increase in this assumption would result in a lower fair value measurement.

The following tables provide quantitative information about our financial assets and liabilities that were not measured at fair value, but were disclosed as such at September 30, 2023, and December 31, 2022:

September 30, 2023 Fair Value Measurements Using
($ in thousands)Assets/
Liabilities
Disclosed at
Fair Value		Quoted Prices in
 Active Markets for
 Identical Assets/
Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Financial Assets    
HTM:    
Corporate securities$21,892 — 21,892 — 
Total HTM fixed income securities21,892 — 21,892 — 
CMLs$171,386 — — 171,386 
Financial Liabilities    
Long-term debt:
7.25% Senior Notes$50,293 — 50,293 — 
6.70% Senior Notes98,175 — 98,175 — 
5.375% Senior Notes254,421 — 254,421 — 
3.03% borrowings from FHLBI56,580 — 56,580 — 
Total long-term debt$459,469 — 459,469 — 

December 31, 2022 Fair Value Measurements Using
($ in thousands)Assets/
Liabilities
Disclosed at
Fair Value		Quoted Prices in
 Active Markets for
 Identical Assets/
Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Financial Assets    
HTM:    
Obligations of states and political subdivisions$3,405 — 3,405 — 
Corporate securities26,432 — 26,432 — 
Total HTM fixed income securities$29,837 — 29,837 — 
CMLs$139,243 — — 139,243 
Financial Liabilities    
Long-term debt:
7.25% Senior Notes$51,705 — 51,705 — 
6.70% Senior Notes99,264 — 99,264 — 
5.375% Senior Notes258,459 — 258,459 — 
3.03% borrowings from FHLBI57,175 — 57,175 — 
Total long-term debt$466,603 — 466,603 — 

14
NOTE 6. Allowance for Credit Losses on Premiums Receivable
The following table provides a roll forward of the allowance for credit losses on our premiums receivable balance for the indicated periods:

Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Balance at beginning of period$17,900 $14,900 $16,100 $13,600 
Current period change for expected credit losses1,973 2,250 5,398 4,335 
Write-offs charged against the allowance for credit losses(1,257)(2,349)(3,468)(3,787)
Recoveries284 399 870 1,052 
Allowance for credit losses, end of period$18,900 $15,200 $18,900 $15,200 

For a discussion of the methodology used to evaluate our estimate of expected credit losses on premiums receivable, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2022 Annual Report.

NOTE 7. Reinsurance
We evaluate and monitor the financial condition of our reinsurers under voluntary reinsurance arrangements to minimize our exposure to significant losses from reinsurer insolvencies. The following tables provide (i) a disaggregation of our reinsurance recoverable balance by financial strength rating, and (ii) an aging analysis of our past due reinsurance recoverable balances as of September 30, 2023, and December 31, 2022:

September 30, 2023
($ in thousands)CurrentPast DueTotal Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++$87,295 $20 $87,315 
A+377,078 4,876 381,954 
A116,903 1,981 118,884 
A-3,669 89 3,758 
Total rated reinsurers$584,945 $6,966 $591,911 
Non-rated reinsurers
Federal and state pools$88,777 $16 $88,793 
Other than federal and state pools6,227 210 6,437 
Total non-rated reinsurers$95,004 $226 $95,230 
Total reinsurance recoverable, gross$679,949 $7,192 $687,141 
Less: allowance for credit losses(1,800)
Total reinsurance recoverable, net$685,341 

December 31, 2022
($ in thousands)CurrentPast DueTotal Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++$46,282 $1 $46,283 
A+425,395 3,191 428,586 
A106,102 1,315 107,417 
A-7,148 89 7,237 
Total rated reinsurers$584,927 $4,596 $589,523 
Non-rated reinsurers
Federal and state pools$180,794 $— $180,794 
Other than federal and state pools13,678 415 14,093 
Total non-rated reinsurers$194,472 $415 $194,887 
Total reinsurance recoverable, gross$779,399 $5,011 $784,410 
Less: allowance for credit losses(1,600)
Total reinsurance recoverable, net$782,810 

The $92.0 million decrease in "Federal and state pools" as of September 30, 2023, compared to December 31, 2022, was
15
primarily due to a decrease in the NFIP reserves recorded as of December 31, 2022, for flood losses in Florida and surrounding states as a result of Hurricane Ian, which are 100% ceded to the NFIP and continue to be paid as the associated claims are settled.

The following table provides a roll forward of the allowance for credit losses on our reinsurance recoverable balance for the periods indicated:

($ in thousands)Quarter ended September 30,Nine Months ended September 30,
2023202220232022
Balance at beginning of period$1,800 1,600 $1,600 1,600 
Current period change for expected credit losses— — 200 — 
Write-offs charged against the allowance for credit losses— — — — 
Recoveries— — — — 
Allowance for credit losses, end of period$1,800 1,600 $1,800 1,600 

For a discussion of the methodology used to evaluate our estimate of expected credit losses on our reinsurance recoverable balance, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2022 Annual Report.

The following table lists direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expense incurred for the indicated periods. For more information about reinsurance, refer to Note 9. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2022 Annual Report.

Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Premiums written:    
Direct$1,214,444 1,037,612 $3,579,700 3,089,166 
Assumed9,087 9,531 20,058 23,398 
Ceded(165,206)(143,749)(456,758)(388,631)
Net$1,058,325 903,394 $3,143,000 2,723,933 
Premiums earned:    
Direct$1,123,444 984,981 $3,229,170 2,872,008 
Assumed8,916 8,514 21,174 21,523 
Ceded(150,443)(139,616)(423,941)(392,930)
Net$981,917 853,879 $2,826,403 2,500,601 
Loss and loss expense incurred:
    
Direct$741,288 732,568 $2,053,511 1,821,069 
Assumed8,182 6,443 19,115 15,846 
Ceded(103,573)(191,185)(213,161)(269,985)
Net$645,897 547,826 $1,859,465 1,566,930 

NOTE 8. Reserve for Loss and Loss Expense
The table below provides a roll forward of the reserve for loss and loss expense for beginning and ending reserve balances:

Nine Months ended September 30,
($ in thousands)20232022
Gross reserve for loss and loss expense, at beginning of period$5,144,821 4,580,903 
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of period757,513 578,641 
Net reserve for loss and loss expense, at beginning of period4,387,308 4,002,262 
Incurred loss and loss expense for claims occurring in the:  
Current year1,865,247 1,610,940 
Prior years(5,782)(44,010)
Total incurred loss and loss expense1,859,465 1,566,930 
Paid loss and loss expense for claims occurring in the:  
Current year607,595 513,118 
Prior years988,859 779,438 
Total paid loss and loss expense1,596,454 1,292,556 
Net reserve for loss and loss expense, at end of period4,650,319 4,276,636 
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period651,051 688,641 
Gross reserve for loss and loss expense, at end of period$5,301,370 4,965,277 
16
Prior year reserve development in Nine Months 2023 was favorable by $5.8 million, consisting of $16.5 million of favorable casualty reserve development, partially offset by $10.7 million of unfavorable property reserve development. The favorable casualty reserve development included $24.5 million in our workers compensation line of business and $5.0 million in our Excess and Surplus ("E&S") casualty lines of business, partially offset by $9.0 million of unfavorable casualty reserve development in our personal automobile line of business and $4.0 million in our commercial automobile line of business.

Prior year reserve development in Nine Months 2022 was favorable by $44.0 million, consisting of $48.0 million of favorable casualty reserve development, partially offset by $4.0 million of unfavorable property reserve development. The favorable casualty reserve development included $40.0 million in our workers compensation line of business, $10.0 million in our bonds line of business, $8.0 million in our businessowners' policies line of business, and $5.0 million in our general liability line of business, partially offset by $15.0 million of unfavorable casualty reserve development in our commercial automobile line of business.

NOTE 9. Segment Information
We evaluate the results of our four reportable segments as follows:

•Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated on (i) before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), (ii) their return on equity ("ROE") contribution, and (iii) their combined ratios.

•Our Investments segment is primarily evaluated on after-tax net investment income and its ROE contribution. After-tax net realized and unrealized gains and losses are also included in our Investments segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses. No segment has a separate investment portfolio or allocated assets.

The following summaries present revenues (net investment income and net realized and unrealized gains and losses on investments in the case of the Investments segment) and pre-tax income for the individual segments:

Revenue by SegmentQuarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Standard Commercial Lines:  
Net premiums earned:  
General liability$261,551 225,302 $759,410 667,912 
Commercial automobile234,622 207,129 677,060 599,340 
Commercial property152,495 128,268 429,135 371,892 
Workers compensation81,672 81,996 254,602 250,178 
Businessowners' policies36,016 32,130 103,572 93,682 
Bonds11,715 11,094 34,731 32,136 
Other7,257 6,518 21,142 19,003 
Miscellaneous income4,606 2,444 12,355 6,141 
Total Standard Commercial Lines revenue789,934 694,881 2,292,007 2,040,284 
Standard Personal Lines:
Net premiums earned:
Personal automobile51,906 40,746 145,050 120,414 
Homeowners40,175 32,619 112,090 95,436 
Other3,088 2,273 7,069 5,768 
Miscellaneous income575 489 1,564 1,358 
Total Standard Personal Lines revenue95,744 76,127 265,773 222,976 
E&S Lines:
Net premiums earned:
Casualty lines67,718 59,640 190,686 170,305 
Property lines33,702 26,164 91,856 74,535 
Total E&S Lines revenue101,420 85,804 282,542 244,840 
Investments:    
Net investment income earned100,863 63,889 290,065 206,713 
Net realized and unrealized investment gains (losses)(6,880)(25,681)(8,962)(108,913)
Total Investments revenue93,983 38,208 281,103 97,800 
Total revenues $1,081,081 895,020 $3,121,425 2,605,900 
17
Income Before and After Federal Income TaxQuarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Standard Commercial Lines:  
Underwriting income (loss), before federal income tax$41,339 22,501 $102,406 111,593 
Underwriting income (loss), after federal income tax32,658 17,776 80,901 88,158 
Combined ratio94.7 %96.8 95.5 94.5 
ROE contribution5.4 3.1 4.4 4.7 
Standard Personal Lines:
Underwriting income (loss), before federal income tax$(26,099)(1,385)$(62,232)(7,232)
Underwriting income (loss), after federal income tax(20,618)(1,094)(49,163)(5,713)
Combined ratio127.4 %101.8 123.6 103.3 
ROE contribution(3.4)(0.2)(2.7)(0.3)
E&S Lines:
Underwriting income (loss), before federal income tax$16,351 6,016 $29,074 16,313 
Underwriting income (loss), after federal income tax12,917 4,753 22,968 12,887 
Combined ratio83.9 %93.0 89.7 93.3 
ROE contribution2.1 0.8 1.3 0.7 
Investments:  
Net investment income earned$100,863 63,889 $290,065 206,713 
Net realized and unrealized investment gains (losses)(6,880)(25,681)(8,962)(108,913)
Total investments segment income, before federal income tax93,983 38,208 281,103 97,800 
Tax on investments segment income19,191 6,964 57,092 17,136 
Total investments segment income, after federal income tax$74,792 31,244 $224,011 80,664 
ROE contribution of after-tax net investment income earned13.1 8.9 12.7 8.9 

Reconciliation of Segment Results to Income Before Federal Income TaxQuarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Underwriting income
Standard Commercial Lines$41,339 22,501 $102,406 111,593 
Standard Personal Lines(26,099)(1,385)(62,232)(7,232)
E&S Lines16,351 6,016 29,074 16,313 
Investment income93,983 38,208 281,103 97,800 
Total all segments125,574 65,340 350,351 218,474 
Interest expense(7,186)(7,179)(21,610)(21,599)
Corporate expenses(5,871)(5,522)(27,308)(24,442)
Income, before federal income tax$112,517 52,639 $301,433 172,433 
Preferred stock dividends(2,300)(2,300)(6,900)(6,900)
Income available to common stockholders, before federal income tax$110,217 50,339 $294,533 165,533 

NOTE 10. Retirement Plans
The primary pension plan for our employees is the Retirement Income Plan for Selective Insurance Company of America (the “Pension Plan”). The plan is closed to new entrants, and benefits ceased accruing under the Pension Plan after March 31, 2016. For more information about Selective Insurance Company of America's ("SICA") retirement plans, see Note 15. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2022 Annual Report.

The following tables provide information about the Pension Plan:

Pension Plan
Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Net Periodic Pension Cost (Benefit):
Interest cost$3,867 2,486 $11,599 7,458 
Expected return on plan assets(5,774)(5,537)(17,319)(16,611)
Amortization of unrecognized net actuarial loss750 366 2,251 1,099 
Total net periodic pension cost (benefit)1
$(1,157)(2,685)$(3,469)(8,054)
1The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income.

18
Pension Plan
Nine Months ended September 30,
20232022
Weighted-Average Expense Assumptions:
Discount rate5.21 %2.98 %
Effective interest rate for calculation of interest cost5.09 2.48 
Expected return on plan assets6.90 5.00 

NOTE 11. Comprehensive Income
The components of comprehensive income, both gross and net of tax, for Third Quarter 2023 and Nine Months 2023 and Third Quarter 2022 and Nine Months 2022 were as follows:

Third Quarter 2023   
($ in thousands)GrossTaxNet
Net income$112,517 23,309 89,208 
Components of OCI:   
Unrealized gains (losses) on investment securities:
   
Unrealized holding gains (losses) during the period(101,722)(21,361)(80,361)
Unrealized gains (losses) on securities with credit loss recognized in earnings(32,898)(6,909)(25,989)
Amounts reclassified into net income:
Net realized (gains) losses on disposals and intent-to-sell AFS securities4,628 972 3,656 
Credit loss (benefit) expense2,468 519 1,949 
    Total unrealized gains (losses) on investment securities(127,524)(26,779)(100,745)
Defined benefit pension and post-retirement plans:   
Amounts reclassified into net income:   
Net actuarial (gain) loss756 158 598 
    Total defined benefit pension and post-retirement plans756 158 598 
Other comprehensive income (loss)(126,768)(26,621)(100,147)
Comprehensive income (loss)$(14,251)(3,312)(10,939)
Third Quarter 2022   
($ in thousands)GrossTaxNet
Net income$52,639 10,114 42,525 
Components of OCI:   
Unrealized gains (losses) on investment securities:   
Unrealized holding gains (losses) during the period(189,622)(39,819)(149,803)
Unrealized gains (losses) on securities with credit loss recognized in earnings(68,287)(14,341)(53,946)
Amounts reclassified into net income:
HTM securities1 — 1 
Net realized (gains) losses on disposals and intent-to-sell AFS securities14,235 2,989 11,246 
Credit loss (benefit) expense4,471 939 3,532 
    Total unrealized gains (losses) on investment securities(239,202)(50,232)(188,970)
Defined benefit pension and post-retirement plans:   
Amounts reclassified into net income:   
Net actuarial (gain) loss417 88 329 
    Total defined benefit pension and post-retirement plans417 88 329 
Other comprehensive income (loss)(238,785)(50,144)(188,641)
Comprehensive income (loss)$(186,146)(40,030)(146,116)
19
Nine Months 2023
($ in thousands)GrossTaxNet
Net income$301,433 61,043 240,390 
Components of OCI:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) during the period(96,478)(20,259)(76,219)
Unrealized gains (losses) on securities with credit loss recognized in earnings(16,497)(3,465)(13,032)
Amounts reclassified into net income:
Net realized (gains) losses on disposals and intent-to-sell AFS securities20,115 4,224 15,891 
Credit loss (benefit) expense(7,925)(1,664)(6,261)
Total unrealized gains (losses) on investment securities(100,785)(21,164)(79,621)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial (gain) loss2,270 476 1,794 
Total defined benefit pension and post-retirement plans2,270 476 1,794 
Other comprehensive income (loss)(98,515)(20,688)(77,827)
Comprehensive income (loss)$202,918 40,355 162,563 
Nine Months 2022
($ in thousands)GrossTaxNet
Net income$172,433 34,058 138,375 
Components of OCI:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) during the period(674,357)(141,613)(532,744)
Unrealized gains (losses) on securities with credit loss recognized in earnings(227,599)(47,796)(179,803)
Amounts reclassified into net income:
HTM securities2 — 2 
Net realized (gains) losses on disposals and intent-to-sell AFS securities48,396 10,163 38,233 
Credit loss (benefit) expense42,042 8,828 33,214 
Total unrealized gains (losses) on investment securities(811,516)(170,418)(641,098)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial (gain) loss1,251 263 988 
Total defined benefit pension and post-retirement plans1,251 263 988 
Other comprehensive income (loss)(810,265)(170,155)(640,110)
Comprehensive income (loss)$(637,832)(136,097)(501,735)

The balances of, and changes in, each component of accumulated other comprehensive income ("AOCI") (net of taxes) as of September 30, 2023, were as follows:

September 30, 2023Net Unrealized Gains (Losses) on Investment SecuritiesDefined Benefit Pension and Post-Retirement PlansTotal AOCI
($ in thousands)
Credit Loss Related1
All
Other		Investments
Subtotal
Balance, December 31, 2022
$(121,838)(295,197)(417,035)(81,007)(498,042)
OCI before reclassifications(13,032)(76,219)(89,251)— (89,251)
Amounts reclassified from AOCI(6,261)15,891 9,630 1,794 11,424 
Net current period OCI(19,293)(60,328)(79,621)1,794 (77,827)
Balance, September 30, 2023
$(141,131)(355,525)(496,656)(79,213)(575,869)
1Represents change in unrealized gains (losses) on securities with credit loss recognized in earnings.

20
The reclassifications out of AOCI were as follows:

Quarter ended September 30,Nine Months ended September 30,Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)2023202220232022
HTM related
Unrealized (gains) losses on HTM disposals$— 1 $— 1 Net realized and unrealized investment gains (losses)
Amortization of net unrealized (gains) losses on HTM securities
— — — 1 Net investment income earned
— 1 — 2 Income before federal income tax
— — — — Total federal income tax expense
— 1 — 2 Net income
Net realized (gains) losses on disposals and intent-to-sell AFS securities
Net realized (gains) losses on disposals and intent-to-sell AFS securities4,628 14,235 20,115 48,396 Net realized and unrealized investment gains (losses)
4,628 14,235 20,115 48,396 Income before federal income tax
(972)(2,989)(4,224)(10,163)Total federal income tax expense
3,656 11,246 15,891 38,233 Net income
Credit loss related
Credit loss (benefit) expense2,468 4,471 (7,925)42,042 Net realized and unrealized investment gains (losses)
2,468 4,471 (7,925)42,042 Income before federal income tax
(519)(939)1,664 (8,828)Total federal income tax expense
1,949 3,532 (6,261)33,214 Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss 173 90 521 270 Loss and loss expense incurred
583 327 1,749 981 Other insurance expenses
Total defined benefit pension and post-retirement life756 417 2,270 1,251 Income before federal income tax
(158)(88)(476)(263)Total federal income tax expense
598 329 1,794 988 Net income
Total reclassifications for the period$6,203 15,108 $11,424 72,437 Net income

NOTE 12. Earnings per Common Share
The following table presents the calculations of earnings per common share ("EPS") on a basic and diluted basis:

Quarter ended September 30,Nine Months ended September 30,
(in thousands, except per share amounts)2023202220232022
Net income available to common stockholders:$86,908 40,225 233,490 131,475 
Weighted average common shares outstanding:
Weighted average common shares outstanding - basic60,67660,40460,60960,409
Effect of dilutive securities - stock compensation plans340431339420
Weighted average common shares outstanding - diluted61,01660,83560,94860,829
EPS:
Basic$1.43 0.67 3.85 2.18 
Diluted1.42 0.66 3.83 2.16 

NOTE 13. Litigation
As of September 30, 2023, we do not believe we are involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

In the ordinary course of conducting business, we are parties in various legal actions. Most are claims litigation involving our ten insurance subsidiaries (collectively referred to as "Insurance Subsidiaries") as (i) liability insurers defending or providing indemnity for third-party claims brought against our customers, (ii) insurers defending first-party coverage claims brought against them, or (iii) liability insurers seeking declaratory judgment on our insurance coverage obligations. We account for such activity by establishing unpaid loss and loss expense reserves. Considering potential losses and defense costs reserves, we expect that any potential ultimate liability for ordinary course claims litigation will not be material to our consolidated financial
21
condition, results of operations, or cash flows.

All our commercial property and businessowners' policies require direct physical loss of or damage to property by a covered cause of loss. All our standard lines commercial property and businessowners' policies also include or attach an exclusion that states all loss or property damage caused by or resulting from any virus, bacterium, or other microorganism that induces or is capable of inducing physical distress, illness, or disease is not a covered cause of loss ("Virus Exclusion"). Whether COVID-19-related contamination, the existence of the COVID-19 pandemic, and the resulting COVID-19-related government shutdown orders cause physical loss of or damage to property is the subject of much public debate and first-party coverage litigation against some insurers, including us. The Virus Exclusion is also the subject of first-party coverage litigation against some insurers, including us. To date, insurers (including us) have prevailed in the majority of these suits, with most decisions holding that COVID-19 does not cause physical loss of or damage to property and the Virus Exclusion is valid. Nonetheless, these two matters continue to be litigated in trial courts, are subject to review by state and federal appellate courts, and their ultimate outcome cannot be assured.

From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some asserting claims for substantial amounts. Plaintiffs may style these actions as class actions and seek judicial certification of a state or national class for allegations involving our business practices, such as improper medical provider reimbursement under workers compensation and personal and commercial automobile insurance policies or improper reimbursement for automobile parts. Similarly, our Insurance Subsidiaries can be named defendants in individual actions seeking extra-contractual damages, punitive damages, or penalties, often alleging bad faith in handling insurance claims. We believe that we have valid defenses to these allegations, and we account for such activity by establishing unpaid loss and loss expense reserves. Considering estimated losses and defense costs reserves, we expect that any potential ultimate liability for these other legal actions will not be material to our consolidated financial condition. As litigation outcomes are inherently unpredictable and the amounts sought in certain actions are large or indeterminate, adverse outcomes could potentially have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements
The terms "Company," "we," "us," and "our" refer to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or the context otherwise requires. Certain statements in this Quarterly Report on Form 10-Q, including information incorporated by reference, are “forward-looking statements” defined in the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. In some cases, forward-looking statements include the words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” “continue,” or comparable terms. Our forward-looking statements are only predictions, and we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, except as may be required by law.

Factors that could cause our actual results to differ materially from what we project, forecast, or estimate in forward-looking statements are discussed in further detail in Item 1A. “Risk Factors.” in Part II. “Other Information” of this Form 10-Q. These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge at anytime. We can neither predict these new risk factors nor assess their impact, if any, on our businesses or the extent any factor or combination of factors may cause actual results to differ materially from any forward-looking statements. Given these risks, uncertainties, and assumptions, the forward-looking events we discuss in this report might not occur.

Introduction
We classify our business into four reportable segments:

•Standard Commercial Lines;
•Standard Personal Lines;
•Excess and Surplus Lines ("E&S Lines"); and
•Investments.

22
For more details about these segments, refer to Note 9. "Segment Information" in Item 1. "Financial Statements." of this Form 10-Q and Note 12. "Segment Information" in Item 8. "Financial Statements and Supplementary Data." of our Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 Annual Report").

We write our Standard Commercial and Standard Personal Lines products and services through nine of our insurance subsidiaries, some of which participate in the federal government's National Flood Insurance Program's ("NFIP") Write Your Own Program. We write our E&S products through another subsidiary, Mesa Underwriters Specialty Insurance Company, a nationally-authorized non-admitted platform for customers who generally cannot obtain coverage in the standard marketplace. Collectively, we refer to our ten insurance subsidiaries as the "Insurance Subsidiaries."

The following is Management’s Discussion and Analysis (“MD&A”) of our financial condition and consolidated results of operations, including an evaluation of the amounts and certainty of cash flows from operations and outside sources, trends, and uncertainties that may have a material impact in future periods. Investors should read the MD&A in conjunction with Item 1. "Financial Statements." of this Form 10-Q and the consolidated financial statements in our 2022 Annual Report filed with the United States ("U.S.") Securities and Exchange Commission.

In the MD&A, we will discuss and analyze the following:

•Critical Accounting Policies and Estimates;
•Financial Highlights of Results for the third quarters ended September 30, 2023 (“Third Quarter 2023”) and September 30, 2022 (“Third Quarter 2022”); and the nine-month periods ended September 30, 2023 ("Nine Months 2023") and September 30, 2022 ("Nine Months 2022");
•Results of Operations and Related Information by Segment;
•Federal Income Taxes;
•Liquidity and Capital Resources; and
•Ratings.

Critical Accounting Policies and Estimates
Our unaudited interim consolidated financial statements include amounts for which we have made informed estimates and judgments for transactions not yet completed. Such estimates and judgments affect the reported amounts in the consolidated financial statements. As outlined in our 2022 Annual Report, those estimates and judgments most critical to the preparation of the consolidated financial statements involved the following: (i) reserves for loss and loss expense; (ii) investment valuation and the allowance for credit losses on available-for-sale ("AFS") fixed income securities; and (iii) reinsurance. These estimates and judgments require the use of assumptions about highly uncertain matters, making them subject to change as facts and circumstances develop. If different estimates and judgments had been applied, materially different amounts might have been reported in the financial statements. For additional information regarding our critical accounting policies and estimates, refer to pages 37 through 45 of our 2022 Annual Report.

23
Financial Highlights of Results for Third Quarter and Nine Months 2023 and Third Quarter and Nine Months 20221
($ and shares in thousands, except per share amounts)Quarter ended September 30,Change
% or Points		Nine Months ended September 30,Change
% or Points
20232022 20232022
Financial Data:
Revenues$1,081,081 895,020 21 %$3,121,425 2,605,900 20 %
After-tax net investment income80,227 51,533 56  231,091 166,706 39  
After-tax underwriting income24,957 21,434 16 54,706 95,333 (43)
Net income before federal income tax112,517 52,639 114 301,433 172,433 75 
Net income89,208 42,525 110 240,390 138,375 74 
Net income available to common stockholders86,908 40,225 116 233,490 131,475 78 
Key Metrics:
Combined ratio96.8 %96.8 — pts97.5 %95.2 2.3 pts
Invested assets per dollar of common stockholders' equity$3.35 3.38 (1)%$3.35 3.38 (1)%
Annualized after-tax yield on investment portfolio3.9 %2.7 1.2 pts3.8 
%
2.9 0.9 pts
Return on common equity ("ROE")14.1 7.0 7.1 12.8 7.0 5.8 
Net premiums written ("NPW") to statutory surplus ratio1.53 x1.45 0.08 1.53 x1.45 0.08 
Per Common Share Amounts:
Diluted net income per share$1.42 0.66 115 %$3.83 2.16 77 %
Book value per share40.35 36.96 9 40.35 36.96 9 
Dividends declared per share to common stockholders0.30 0.28 7 0.90 0.84 7 
Non-GAAP Information:
Non-GAAP operating income2
$92,343 60,514 53 %$240,570 217,517 11 %
Non-GAAP operating income per diluted common share2
1.51 0.99 53 3.95 3.57 11 
Non-GAAP operating ROE2
15.0 %10.5 4.5 pts13.2 %11.6 1.6 pts
Adjusted book value per common share2
$48.54 44.59 9 %$48.54 44.59 9 %
1Refer to the Glossary of Terms attached to our 2022 Annual Report as Exhibit 99.1 for definitions of terms used in this Form 10-Q.
2Non-GAAP operating income, non-GAAP operating income per diluted common share, and non-GAAP operating ROE are measures comparable to net income available to common stockholders, net income available to common stockholders per diluted common share, and ROE, respectively, but exclude after-tax net realized and unrealized gains and losses on investments included in net income. Adjusted book value per common share is a measure comparable to book value per common share, but excludes total after-tax unrealized gains and losses on investments included in accumulated other comprehensive (loss) income. These non-GAAP measures are important financial measures used by us, analysts, and investors because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized investment gains and losses on investments could distort the analysis of trends.

Reconciliations of our GAAP to non-GAAP measures are provided in the tables below:

Reconciliation of net income available to common stockholders to non-GAAP operating incomeQuarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Net income available to common stockholders$86,908 40,225 $233,490 131,475 
Net realized and unrealized investment (gains) losses included in net income, before tax6,880 25,681 8,962 108,913 
Tax on reconciling items(1,445)(5,392)(1,882)(22,871)
Non-GAAP operating income$92,343 60,514 $240,570 217,517 

Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common shareQuarter ended September 30,Nine Months ended September 30,
2023202220232022
Net income available to common stockholders per diluted common share$1.42 0.66 $3.83 2.16 
Net realized and unrealized investment (gains) losses included in net income, before tax0.11 0.42 0.15 1.79 
Tax on reconciling items(0.02)(0.09)(0.03)(0.38)
Non-GAAP operating income per diluted common share$1.51 0.99 $3.95 3.57 

Reconciliation of ROE to non-GAAP operating ROEQuarter ended September 30,Nine Months ended September 30,
2023202220232022
ROE14.1 %7.0 12.8 %7.0 
Net realized and unrealized investment (gains) losses included in net income, before tax1.1 4.4 0.5 5.8 
Tax on reconciling items(0.2)(0.9)(0.1)(1.2)
Non-GAAP operating ROE15.0 %10.5 13.2 %11.6 
24
Reconciliation of book value per common share to adjusted book value per common shareQuarter ended September 30,Nine Months ended September 30,
2023202220232022
Book value per common share$40.35 36.96 $40.35 36.96 
Total unrealized investment (gains) losses included in accumulated other comprehensive income (loss), before tax10.38 9.67 10.38 9.67 
Tax on reconciling items(2.19)(2.04)(2.19)(2.04)
Adjusted book value per common share$48.54 44.59 $48.54 44.59 

The components of our ROE and non-GAAP operating ROE are as follows:

ROE and non-GAAP operating ROE ComponentsQuarter ended September 30,Change PointsNine Months ended September 30,Change Points
2023202220232022
Standard Commercial Lines Segment5.4 %3.1 2.3 4.4 %4.7 (0.3)
Standard Personal Lines Segment(3.4)(0.2)(3.2)(2.7)(0.3)(2.4)
E&S Lines Segment2.1 0.8 1.3 1.3 0.7 0.6 
Total insurance operations4.1 3.7 0.4 3.0 5.1 (2.1)
Investment income13.1 8.9 4.2 12.7 8.9 3.8 
Net realized and unrealized investment gains (losses)(0.9)(3.5)2.6 (0.4)(4.6)4.2 
Total investments segment12.2 5.4 6.8 12.3 4.3 8.0 
Other(2.2)(2.1)(0.1)(2.5)(2.4)(0.1)
ROE14.1 7.0 7.1 12.8 7.0 5.8 
Net realized and unrealized investment (gains) losses, after tax0.9 3.5 (2.6)0.4 4.6 (4.2)
Non-GAAP operating ROE15.0 10.5 4.5 13.2 11.6 1.6 

Our non-GAAP operating ROE in both Third Quarter 2023 and Nine Months 2023 was above our full-year 2023 target non-GAAP operating ROE of 12%, and above our non-GAAP operating ROE in the same prior-year periods.

The increase in our non-GAAP operating ROE in Third Quarter 2023 of 4.5 points and Nine Months 2023 of 1.6 points, compared to the same prior-year periods was primarily driven by an increase in after-tax net investment income of $28.7 million, or 4.2-points, in Third Quarter 2023 and $64.4 million, or 3.8-points, in Nine Months 2023, compared to the same prior-year periods. The increase in both periods resulted from greater after-tax net investment income earned on our fixed income securities portfolio due to higher book yields received from the investment of operating and investing cash flows over the past year in the higher interest rate environment.

The increase in after-tax net investment income in Nine Months 2023 compared to Nine Months 2022 was partially offset by a a $40.6 million, or 2.1-point, reduction in after-tax underwriting income, primarily resulting from (i) an increase in net catastrophe losses in Nine Months 2023 compared to Nine Months 2022, and (ii) lower favorable prior year casualty reserve development in Nine Months 2023 compared to Nine Months 2022. Pre-tax net catastrophe losses in Nine Months 2023 were $219.9 million, or 7.8 points on the combined ratio, compared to $100.2 million, or 4.0 points, in Nine Months 2022. We were impacted by 60 Property Claim Services ("PCS") named events in Nine Months 2023, mostly in our Midwest, Southern, and East Coast footprint states. None of these events were large enough to attach to our catastrophe reinsurance treaty. Nine Months 2022 included 45 PCS named events, mostly in our Midwest, Southern, and East Coast footprint states.

In addition, a decrease in net realized and unrealized investment losses in Third Quarter 2023 and Nine Months 2023 compared to the same prior-year periods drove the increase in our ROE of 2.6 points in Third Quarter 2023 and 4.2 points in Nine Months 2023 compared to the same prior-year periods. The decrease in Third Quarter 2023 compared to Third Quarter 2022 was primarily due to (i) an increase in valuations reflecting the current public equities market, and (ii) a decrease in net realized losses on disposals from our AFS fixed income securities portfolio. The decrease in Nine Months 2023 compared to Nine Months 2022 was primarily due to (i) a credit loss benefit recorded on our AFS fixed income securities portfolio in Nine Months 2023 compared to credit loss expense recorded in Nine Months 2022, and (ii) an increase in valuations reflecting the current public equities market. The credit loss benefit in Nine Months 2023 reflected the tightening of credit spreads, partially offset by rising benchmark U.S. Treasury rates.
25

Outlook
We entered 2023 well positioned to navigate the on-going challenges of elevated economic and social inflation, increased interest rates, and financial market volatility. Our overall Nine Months 2023 financial results were strong with 15% NPW growth and a 13.2% non-GAAP operating ROE, which was above our full-year target of 12%.

We continue to focus on several foundational areas to position us for ongoing success:

•Delivering on our strategy for continued disciplined and profitable growth by:
◦Executing our distribution model strategy that emphasizes franchise value, meaning we focus on appointing and having meaningful, close business relationships with high-quality, independent distribution partners who value our relationships and provide us the opportunity to grow profitably with them;
◦Continuing to provide our teams with sophisticated tools and technologies to inform underwriting decisions at a granular level, which contributes to strong and stable underwriting performance over time. We are actively working towards deploying our new underwriting platform in our E&S segment, which also improves agents' ease of interactions with us;
◦Achieving Standard Commercial Lines and E&S Lines renewal pure price increases that reflect our current profitability and forward loss trend expectations;
◦Continuing to expand our Standard Commercial Lines market share by (i) increasing our share towards our 12% target of our agents' premiums, (ii) strategically appointing new agents, and (iii) maximizing new business growth in the small business market through utilization of our enhanced small business platform;
◦Expanding our geographic footprint. In 2022, we began writing Standard Commercial Lines business in Vermont, Alabama, and Idaho. We expect to write new business in West Virginia and Maine in early 2024, and Washington, Oregon, and Nevada in late 2024. We plan to expand our Standard Commercial Lines footprint into most of the contiguous U.S. over time;
◦Increasing customer retention by delivering a superior omnichannel experience and offering value-added technologies and services;
◦Aggressively managing our Standard Personal Lines segment by prioritizing additional rate filings on a state-by-state basis and refining pricing for both catastrophe and non-catastrophe perils. These filed rate increases began to take effect on a written basis during the first quarter of 2023 and continued to take effect through Third Quarter 2023. We expect our overall written renewal rate to be 9% in the fourth quarter of 2023 and in the range of approximately 20% to 25% in 2024, subject to regulatory approvals. In addition, other underwriting actions include the following:
▪Seeking to improve our homeowners’ line of business profitability through the introduction of new policy terms and conditions, including (i) coverage for actual cash value based on a schedule of factors rather than replacement cost on older roofs, and (ii) implementing mandatory wind/hail deductibles in states exposed to severe convective storms; and
▪Accelerating the migration of our Standard Personal Lines products and services towards customers in the mass affluent market, where we believe we can be more competitive with the strong coverage and servicing capabilities that we offer.

•Continuing to further develop our culture centered on the values of diversity, equity, and inclusion that fosters innovation, idea generation, and the development of a group of specially trained leaders who can guide us successfully into the future.

For 2023, our full-year expectations are as follows:

•A GAAP combined ratio of 96.5%, unchanged from last quarter, including net catastrophe losses of 6.5 points, up from prior guidance of 6.0 points. Our combined ratio estimate assumes no additional prior year casualty reserve development;
•After-tax net investment income of $310 million, up from prior guidance of $300 million. After-tax net investment income includes $20 million of after-tax net investment income from our alternative investments, down from prior guidance of $30 million;
•An overall effective tax rate of approximately 21.0%, which assumes an effective tax rate of 20.0% for net investment income and 21.0% for all other items; and
•Weighted average shares of 61.0 million on a fully diluted basis, which assumes no additional share repurchases we may make under our authorization.
26

Results of Operations and Related Information by Segment

Insurance Operations
The following table provides quantitative information for analyzing the combined ratio:

All LinesQuarter ended September 30,Change % or PointsNine Months ended September 30,Change % or Points
($ in thousands)20232022 20232022
Insurance Operations Results:   
Net premiums written
$1,058,325 903,394 17 %$3,143,000 2,723,933 15 %
Net premiums earned (“NPE”)981,917 853,879 15  2,826,403 2,500,601 13  
Less:    
Loss and loss expense incurred645,897 547,826 18  1,859,465 1,566,930 19  
Net underwriting expenses incurred303,076 277,988 9 892,716 809,455 10 
Dividends to policyholders1,353 933 45  4,974 3,542 40  
Underwriting income$31,591 27,132 16 %$69,248 120,674 (43)%
Combined Ratios:    
Loss and loss expense ratio65.8 %64.1 1.7 pts 65.7 %62.7 3.0 pts 
Underwriting expense ratio30.9 32.6 (1.7)31.6 32.4 (0.8)
Dividends to policyholders ratio0.1 0.1 —  0.2 0.1 0.1  
Combined ratio96.8 96.8 —  97.5 95.2 2.3  

The NPW growth of 17% in Third Quarter 2023 and 15% in Nine Months 2023 compared to the same prior-year periods reflected (i) overall renewal pure price increases, and (ii) higher direct new business, as shown in the following table:

Quarter ended September 30,Nine Months ended September 30,
($ in millions)2023202220232022
Direct new business premiums$232.3 184.3 $690.8 543.5 
Renewal pure price increases7.0 %5.3 6.6 %5.0 

Our NPW growth in Third Quarter 2023 and Nine Months 2023 also benefited from strong retention and exposure growth on renewal policies.

The increase in NPE in Third Quarter 2023 and Nine Months 2023 compared to the same prior-year periods resulted from the same impacts to NPW described above.

Loss and Loss Expenses
The loss and loss expense ratio increased 1.7 points in Third Quarter 2023 and 3.0 points in Nine Months 2023 compared to the same prior-year periods, primarily due to the following:

Third Quarter 2023Third Quarter 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Loss and Loss Expense Ratio		Loss and Loss
Expense
Incurred		Impact on
Loss and Loss Expense Ratio		Change in Ratio
Net catastrophe losses$64.6 6.6 pts$34.1 4.0 pts2.6 pts
(Favorable) prior year casualty reserve development— — (16.0)(1.9)1.9 
Non-catastrophe property loss and loss expenses172.8 17.6 167.5 19.6 (2.0)
Total$237.4 24.2 $185.6 21.7 2.5 

Nine Months 2023Nine Months 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Loss and Loss Expense Ratio		Loss and Loss
Expense
Incurred		Impact on
Loss and Loss Expense Ratio		Change in Ratio
Net catastrophe losses$219.9 7.8 pts$100.2 4.0 pts3.8 pts
(Favorable) prior year casualty reserve development(16.5)(0.6)(48.0)(1.9)1.3 
Non-catastrophe property loss and loss expenses478.2 16.9 456.4 18.3 (1.4)
Total$681.6 24.1 $508.6 20.4 3.7 

We had higher net catastrophe losses in Third Quarter 2023 and Nine Months 2023 compared to the same prior-year periods. In Third Quarter 2023, 23 wind and thunderstorm PCS named events impacted our footprint, compared to 15 PCS named events
27
impacting our footprint in Third Quarter 2022. Nine Months 2023 included 60 PCS named events compared to 45 PCS named events in Nine Months 2022. In Third Quarter 2023 and Nine Months 2023, net catastrophe losses primarily impacted our commercial property line of business, homeowners line of business, and E&S Lines. In Third Quarter 2022 and Nine Months 2022, net catastrophe losses primarily impacted our commercial property and homeowners lines of business.

Details of the prior year casualty reserve development were as follows:

(Favorable)/Unfavorable Prior Year Casualty Reserve DevelopmentQuarter ended September 30,Nine Months ended September 30,
($ in millions)2023202220232022
General liability$— — $— (5.0)
Commercial automobile4.0 15.0 4.0 15.0 
Workers compensation(7.0)(20.0)(24.5)(40.0)
Businessowners' policies— (8.0)— (8.0)
Bonds— (3.0)— (10.0)
   Total Standard Commercial Lines(3.0)(16.0)(20.5)(48.0)
Homeowners— — — — 
Personal automobile3.0 — 9.0 — 
   Total Standard Personal Lines3.0 — 9.0 — 
E&S— — (5.0)— 
Total (favorable) prior year casualty reserve development$— (16.0)$(16.5)(48.0)
(Favorable) impact on loss ratio— pts(1.9)(0.6)pts(1.9)

In addition, the loss and loss expense ratio was impacted by a decrease in current year casualty loss costs of 0.8 points in Third Quarter 2023 and 0.6 points in Nine Months 2023, compared to the same prior-year periods, primarily due to (i) the mix of business from the impact of premium growth in both current-year periods compared to the same prior-year periods, partially offset by (ii) an increase in current year casualty loss costs in our commercial and personal automobile line of business.

For additional qualitative discussion on prior year casualty reserve development, current year casualty loss costs, and non-catastrophe property loss and loss expenses, refer to the insurance segment sections below.

Underwriting Expenses
The underwriting expense ratio decreased 1.7 points in Third Quarter 2023 and 0.8 points in Nine Months 2023, compared to the same prior-year periods, primarily due to premium growth outpacing the growth in underwriting expenses in both current-year periods compared to the same prior-year periods.

Standard Commercial Lines Segment
 Quarter ended September 30,Change
% or
Points		 Nine Months ended September 30,Change
% or
Points
($ in thousands)20232022 20232022
Insurance Segments Results:    
NPW$833,576 727,463 15 %$2,517,037 2,225,395 13 %
NPE785,328 692,437 13  2,279,652 2,034,143 12  
Less:       
Loss and loss expense incurred493,771 438,264 13  1,436,604 1,244,639 15  
Net underwriting expenses incurred248,865 230,739 8  735,668 674,369 9  
Dividends to policyholders1,353 933 45  4,974 3,542 40  
Underwriting income41,339 22,501 84 $102,406 111,593 (8)
Combined Ratios:      
Loss and loss expense ratio62.8 %63.4 (0.6)pts63.0 %61.1 1.9 pts
Underwriting expense ratio31.7 33.3 (1.6) 32.3 33.2 (0.9) 
Dividends to policyholders ratio0.2 0.1 0.1  0.2 0.2 —  
Combined ratio94.7 96.8 (2.1) 95.5 94.5 1.0  

28
NPW growth of 15% in Third Quarter 2023 and 13% in Nine Months 2023 compared to the same prior-year periods reflected (i) renewal pure price increases, (ii) higher direct new business, and (iii) strong retention as shown in the table below. In addition, NPW growth in both current-year periods benefited from strong exposure growth on renewal policies.

Quarter ended September 30,Nine Months ended September 30,
($ in millions)2023202220232022
Direct new business premiums$145.5 128.2 $452.3 385.6 
Retention86 86 85 85 
Renewal pure price increases7.1 5.8 6.9 5.3 

The increase in NPE in Third Quarter 2023 and Nine Months 2023 compared to the same prior-year periods resulted from the same impacts to NPW described above.

The loss and loss expense ratio decreased 0.6 points in Third Quarter 2023 and increased 1.9 points in Nine Months 2023 compared to the same prior-year periods, primarily driven by the following:

Third Quarter 2023Third Quarter 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Loss and Loss Expense Ratio		Loss and Loss
Expense
Incurred		Impact on
Loss and Loss Expense Ratio		Change in Ratio
Net catastrophe losses$36.7 4.7 pts$18.2 2.6 2.1 pts
Non-catastrophe property loss and loss expenses122.8 15.6 129.8 18.7 (3.1)
(Favorable) prior year casualty reserve development(3.0)(0.4)(16.0)(2.3)1.9 
Total156.5 19.9 132.0 19.0 0.9 

Nine Months 2023Nine Months 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Loss and Loss Expense Ratio		Loss and Loss
Expense
Incurred		Impact on
Loss and Loss Expense Ratio		Change in Ratio
Net catastrophe losses$134.4 5.9 pts$55.4 2.7 3.2 pts
Non-catastrophe property loss and loss expenses339.6 14.9 344.7 16.9 (2.0)
(Favorable) prior year casualty reserve development(20.5)(0.9)(48.0)(2.4)1.5 
Total453.5 19.9 352.1 17.2 2.7 

Third Quarter 2023 and Nine Months 2023 experienced elevated net catastrophe losses compared to the same prior-year periods as discussed in the "Insurance Operations" section above. Refer to the line of business sections below for qualitative discussion on non-catastrophe property loss and loss expenses and the significant drivers of favorable prior year casualty reserve development.

In addition, the loss and loss expense ratio was impacted by a decrease in current year casualty loss costs of 1.2 points in Third Quarter 2023 and 0.8 points in Nine Months 2023 compared to the same prior-year periods, primarily due to (i) the mix of business from the impact of premium growth in Third Quarter 2023 and Nine Months 2023, partially offset by (ii) an increase in current year casualty loss costs in our commercial automobile line of business. Refer to the "Commercial Automobile" section below for qualitative discussion on these current year loss costs.

The underwriting expense ratio decreased 1.6 points in Third Quarter 2023 and 0.9 points in Nine Months 2023, compared to the same prior-year periods, primarily due to premium growth outpacing the growth in underwriting expenses in both current-year periods compared to the same prior-year periods.

29
The following is a discussion of our most significant Standard Commercial Lines of business:

General Liability
 Quarter ended September 30,
Change
 % or
Points1
Nine Months ended September 30,
Change
 % or
Points1
($ in thousands)2023202220232022
NPW$273,880 234,975 17 %$838,852 736,561 14 %
  Direct new business42,015 38,537 n/a135,155 112,700 n/a
  Retention86 %86 n/a85 %85 n/a
  Renewal pure price increases5.5 4.9 n/a5.4 4.4 n/a
NPE$261,551 225,302 16 %$759,410 667,912 14 %
Underwriting income34,326 21,943 56 94,078 75,765 24 
Combined ratio86.9 %90.3 (3.4)pts87.6 %88.7 (1.1)pts
% of total Standard Commercial Lines NPW33 32  33 33 
1n/a: not applicable.

NPW growth of 17% in Third Quarter 2023 and 14% in Nine Months 2023, compared to the same prior-year periods benefited from exposure growth on renewal policies, strong retention, renewal pure price increases, and higher direct new business.

The combined ratio decreased by 3.4 points in Third Quarter 2023 and 1.1 points in Nine Months 2023, compared to the same prior-year periods, primarily driven by a decrease in the underwriting expense ratio of 2.3 points in Third Quarter 2023 and 1.5 points in Nine Months 2023, compared to the same prior-year periods, as discussed in the "Standard Commercial Lines Segment" section above.

In addition, while there was no prior year casualty reserve development in Third Quarter 2023 and Third Quarter 2022, Nine Months 2023 was impacted by less favorable prior year casualty reserve development as follows:
Nine Months 2023Nine Months 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Combined Ratio		Loss and Loss Expense IncurredImpact on
Combined Ratio		Change in Ratio
(Favorable) prior year casualty reserve development$— — pts$(5.0)(0.7)0.7 pts

This line of business has experienced a long-term historical trend of meaningful severity increases, which have been largely offset by decreases in claim frequencies. In response to potential social inflationary impacts, we have been embedding higher severity assumptions in our initial loss ratio estimates in recent years, which we are seeing materialize in actual results. As the trend of lower frequencies has continued, those initial estimates have remained reasonable. However, if the favorable frequency trend moderates and severities emerge higher than expected, we could see additional pressure on this line.

The favorable prior year casualty reserve development in Nine Months 2022 was primarily attributable to improved loss severities in accident years 2019 and prior.

Commercial Automobile
 Quarter ended September 30,
Change
 % or
Points1
Nine Months ended September 30,
Change
 % or
Points1
($ in thousands)2023202220232022
NPW$252,688 223,809 13 %$750,137 659,251 14 %
  Direct new business36,635 31,503 n/a113,517 92,795 n/a
  Retention86 %87 n/a85 %86 n/a
  Renewal pure price increases9.6 8.7 n/a9.7 8.0 n/a
NPE$234,622 207,129 13 %$677,060 599,340 13 %
Underwriting (loss) income(12,348)(30,612)60 (28,271)(45,790)38 
Combined ratio105.3 %114.8 (9.5)pts104.2 %107.6 (3.4)pts
% of total Standard Commercial Lines NPW30 31  30 30  
1n/a: not applicable.

NPW growth of 13% in Third Quarter 2023 and 14% in Nine Months 2023 compared to the same prior-year periods benefited from renewal pure price increases, higher direct new business, and strong retention. This higher new business and strong retention contributed to a 4% growth of in-force vehicle counts as of September 30, 2023, compared to September 30, 2022.

30
The combined ratio decreased 9.5 points in Third Quarter 2023 and 3.4 points in Nine Months 2023, compared to the same prior-year periods, primarily driven by the following:

Third Quarter 2023Third Quarter 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Combined Ratio		Loss and Loss Expense IncurredImpact on
Combined Ratio		Change in Ratio
Net catastrophe losses$2.1 0.9 pts$1.4 0.7 0.2 pts
Non-catastrophe property loss and loss expenses43.8 18.7 46.2 22.3 (3.6)
Unfavorable prior year casualty reserve development4.0 1.7 15.0 7.2 (5.5)
Total$49.9 21.3 $62.6 30.2 (8.9)

Nine Months 2023Nine Months 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Combined Ratio		Loss and Loss Expense IncurredImpact on
Combined Ratio		Change in Ratio
Net catastrophe losses$4.2 0.6 pts$2.3 0.4 0.2 pts
Non-catastrophe property loss and loss expenses133.0 19.6 124.0 20.7 (1.1)
Unfavorable prior year casualty reserve development4.0 0.6 15.0 2.5 (1.9)
Total$141.2 20.8 $141.3 23.6 (2.8)

Compared to the same prior-year periods, Third Quarter 2023 and Nine Months 2023 experienced (i) elevated net catastrophe losses, as discussed in the "Insurance Operations" section above, and (ii) lower non-catastrophe property loss and loss expenses, primarily due to lower claim frequencies.

The unfavorable prior year casualty reserve development in Third Quarter 2023 and Nine Months 2023 was primarily due to increased loss expenses in accident years 2022 and prior. The unfavorable prior year casualty reserve development in Third Quarter 2022 and Nine Months 2022 was primarily due to increased severities in the 2021 accident year.

In addition, the combined ratio was impacted by:

•A 1.6-point decrease in the underwriting expense ratio in Third Quarter 2023 and a 1.1-point decrease in Nine Months 2023 compared to the same prior-year periods, as discussed in the "Standard Commercial Lines Segment" section above; and

•A 1.1-point increase in current year casualty loss costs in Third Quarter 2023 and a 0.3-point increase in Nine Months 2023, compared to the same prior-year periods, reflecting (i) elevated prior-year severities, which influenced our current-year severity estimates, and (ii) increased claim frequencies in the current year.

Commercial Property1
 Quarter ended September 30,
Change
 % or
Points2
Nine Months ended September 30,
Change
 % or
Points2
($ in thousands)2023202220232022
NPW$174,559 143,117 22 %$493,828 414,170 19 %
  Direct new business37,875 30,691 n/a109,949 89,826 n/a
  Retention85 %85 n/a84 %84 n/a
Renewal pure price increases10.1 6.2 n/a9.7 6.1 n/a
NPE$152,495 128,268 19 %$429,135 371,892 15 %
Underwriting income950 (2,385)140 (13,382)608 (2,301)
Combined ratio99.4 %101.9 (2.5)pts103.1 %99.8 3.3 pts
% of total Standard Commercial Lines NPW21 20  20 19 
1includes Inland Marine.
2n/a: not applicable.

NPW growth of 22% in Third Quarter 2023 and 19% in Nine Months 2023, compared to the same prior-year periods benefited from renewal pure price increases, strong retention, exposure growth on renewal policies, and higher direct new business.

31
The combined ratio decreased 2.5 points in Third Quarter 2023 and increased 3.3 points in Nine Months 2023, compared to the same prior-year periods, primarily driven by the following:

Third Quarter 2023Third Quarter 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Combined Ratio		Loss and Loss Expense IncurredImpact on
Combined Ratio		Change in Ratio
Net catastrophe losses$30.3 19.8 pts13.3 10.4 9.4 pts
Non-catastrophe property loss and loss expenses66.2 43.4 69.4 54.1 (10.7)
Total$96.5 63.2 82.7 64.5 (1.3)

Nine Months 2023Nine Months 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Combined Ratio		Loss and Loss Expense IncurredImpact on
Combined Ratio		Change in Ratio
Net catastrophe losses$114.1 26.6 pts45.4 12.2 14.4 pts
Non-catastrophe property loss and loss expenses170.3 39.7 188.0 50.6 (10.9)
Total$284.4 66.3 233.4 62.8 3.5 

Third Quarter 2023 and Nine Months 2023 experienced elevated net catastrophe losses as discussed in the "Insurance Operations" section above. We had lower non-catastrophe property loss and loss expense ratios in Third Quarter 2023 and Nine Months 2023 compared to the same prior-year periods. While this change continues to reflect the variability from period to period that is normally associated with the commercial property line of business, we have also seen a decline in claim frequencies in the current year. We continue to manage our long-term profitability through (i) price increases, and (ii) targeted underwriting actions, including an ongoing focus on appropriate policy terms and conditions and achieving accurate insurance to value ratios.

The combined ratio was also impacted by a decrease in the underwriting expense ratio of 1.4 points in Third Quarter 2023 and 0.3 points in Nine Months 2023, compared to the same prior-year periods, as discussed in the "Standard Commercial Lines Segment" section above.

Workers Compensation
 Quarter ended September 30,
Change
 % or
Points1
Nine Months ended September 30,
Change
 % or
Points1
($ in thousands)2023202220232022
NPW$75,553 74,698 1 %$264,587 260,557 2 %
Direct new business14,448 13,597 n/a49,387 47,552 n/a
Retention85 %85 n/a84 %86 n/a
Renewal pure price increases (decreases)(1.7)(0.1)n/a(1.3)(0.4)n/a
NPE$81,672 81,996 — %$254,602 250,178 2 %
Underwriting income13,915 23,220 (40)41,087 54,756 (25)
Combined ratio83.0 %71.7 11.3 pts83.9 %78.1 5.8 pts
% of total Standard Commercial Lines NPW9 10  11 12 
1n/a: not applicable.

NPW increased 1% in Third Quarter 2023 and 2% in Nine Months 2023, compared to the same prior-year periods, primarily due to higher direct new business, strong retention, and exposure growth on renewal policies.

The combined ratio increased 11.3 points in Third Quarter 2023 and 5.8 points in Nine Months 2023, compared to the same prior-year periods, primarily driven by less favorable prior year casualty reserve development as follows:

Third Quarter 2023Third Quarter 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Combined Ratio		Loss and Loss Expense IncurredImpact on
Combined Ratio		Change in Ratio
(Favorable) prior year casualty reserve development$(7.0)(8.6)pts$(20.0)(24.4)15.8 pts

32
Nine Months 2023Nine Months 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Combined Ratio		Loss and Loss Expense IncurredImpact on
Combined Ratio		Change in Ratio
(Favorable) prior year casualty reserve development$(24.5)(9.6)pts$(40.0)(16.0)6.4 pts

The favorable prior year casualty reserve development in Third Quarter 2023 and Nine Months 2023 was primarily due to improved loss severities in accident years 2020 and prior. The favorable prior year casualty reserve development in Third Quarter 2022 and Nine Months 2022 was primarily due to improved loss severities in accident years 2019 and prior.

In addition, the combined ratio was impacted by a decrease in the underwriting expense ratio of 1.2 points in Third Quarter 2023 and 0.1 points in Nine Months 2023, compared to the same prior-year periods, as discussed in the "Standard Commercial Lines Segment" section above.

Standard Personal Lines Segment
Quarter ended September 30,Change
% or
Points		 Nine Months ended September 30,Change
% or
Points
($ in thousands)20232022 20232022
Insurance Segments Results:    
NPW$113,160 86,844 30 %$307,541 234,465 31 %
NPE95,169 75,638 26  264,209 221,618 19  
Less:    
Loss and loss expense incurred99,496 57,263 74  260,646 172,396 51  
Net underwriting expenses incurred21,772 19,760 10 65,795 56,454 17 
Underwriting income (loss)$(26,099)(1,385)(1,784)$(62,232)(7,232)(761)
Combined Ratios:    
Loss and loss expense ratio104.5 %75.7 28.8 pts98.7 %77.8 20.9 pts
Underwriting expense ratio22.9 26.1 (3.2)24.9 25.5 (0.6)
Combined ratio127.4 101.8 25.6  123.6 103.3 20.3  

NPW increased 30% in Third Quarter 2023 and 31% in Nine Months 2023, compared to the same prior-year periods, due to (i) higher direct new business, (ii) stronger retention, (iii) renewal pure price increases, (iv) higher homeowners coverage amounts due to inflation, and (v) higher average policy sizes from our mass affluent market strategy. In the third quarter of 2021, we transitioned our personal lines strategy to target customers in the mass affluent market where we believe our strong coverage and servicing capabilities will be more competitive.

Quarter ended September 30,Nine Months ended September 30,
($ in millions)2023202220232022
Direct new business premiums1
$31.6 17.4 $90.5 40.5 
Retention88 %85 87 %85 
Renewal pure price increases6.1 0.5 3.9 0.6 
1Excludes our Flood direct premiums written, which is 100% ceded to the NFIP and therefore, has no impact on our NPW.

The increase in NPE in Third Quarter 2023 and Nine Months 2023 compared to the same prior-year periods resulted from the same impacts to NPW described above.

The loss and loss expense ratio increased 28.8 points in Third Quarter 2023 and 20.9 points in Nine Months 2023, compared to the same prior-year periods, driven by the following:

Third Quarter 2023Third Quarter 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Loss and Loss Expense Ratio		Loss and Loss
Expense
Incurred		Impact on
Loss and Loss Expense Ratio		Change in Ratio
Net catastrophe losses$24.4 25.6 pts11.3 14.9 10.7 pts
Non-catastrophe property loss and loss expenses42.5 44.7 29.0 38.4 6.3 
Unfavorable prior year casualty reserve development3.0 3.2 — — 3.2 
Flood claims handling fee reimbursement(1.2)(1.2)(2.7)(3.6)2.4 
Total$68.7 72.3 37.6 49.7 22.6 

33
Nine Months 2023Nine Months 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Loss and Loss Expense Ratio		Loss and Loss
Expense
Incurred		Impact on
Loss and Loss Expense Ratio		Change in Ratio
Net catastrophe losses$60.2 22.8 pts36.7 16.5 6.3 pts
Non-catastrophe property loss and loss expenses114.1 43.2 81.5 36.8 6.4 
Unfavorable prior year casualty reserve development9.0 3.4 — — 3.4 
Flood claims handling fee reimbursement(2.9)(1.1)(4.0)(1.8)0.7 
Total$180.4 68.3 114.2 51.5 16.8 

Net catastrophe losses in both current- and prior-year periods exceeded our 10-year historical average, with Third Quarter 2023 and Nine Months 2023 being elevated over the comparable prior year periods, as discussed in the "Insurance Operations" section above.

We experienced elevated non-catastrophe property loss and loss expenses in Third Quarter 2023 and Nine Months 2023, driven by higher personal automobile physical damage and homeowners property losses. The higher automobile damage losses resulted from increasing claim frequencies, as well as greater severities from inflationary and supply chain impacts that have increased labor and repair costs, and claim duration. Higher homeowners property losses were attributable to elevated severities due to (i) higher construction costs impacted by economic inflation, and (ii) increasing home values resulting from higher average policy sizes from our mass affluent market strategy. The likely continuation of elevated non-catastrophe property loss and loss expenses, coupled with renewal pure price increases below loss trend, will put pressure on this segment's profitability in the near-term, while our filed rate increases approach current loss cost levels.

The unfavorable prior year casualty reserve development in Third Quarter 2023 and Nine Months 2023 was primarily due to increased loss severities in accident year 2022. There was no prior year casualty reserve development in Third Quarter 2022 or Nine Months 2022.

In addition, the loss and loss expense ratio was impacted by an increase in current year casualty loss costs of 8.7 points in Third Quarter 2023, and 4.8 points in Nine Months 2023, compared to the same prior-year periods, in response to (i) elevated prior- year severities, which influenced our current-year severity estimates, and (ii) increased claim frequencies in the current year.

The underwriting expense ratio decreased 3.2 points in Third Quarter 2023 compared to Third Quarter 2022, and 0.6 points in Nine Months 2023 compared to Nine Months 2022, primarily due to premium growth outpacing the growth in underwriting expenses.

To address profitability challenges in this segment and position us for ongoing success, we are aggressively managing this business by continuing to prioritize rate filings on a state-by-state basis to mitigate these inflationary impacts, and refining pricing for both catastrophe and non-catastrophe perils. These filed rate increases began to take effect on a written basis during the first quarter of 2023 and continued to take effect through Third Quarter 2023. We expect the number of rate filings and their rate impacts to continue to increase in the fourth quarter of 2023 and throughout 2024. In addition, we are seeking to improve profitability within our homeowners' line of business by introducing new policy terms and conditions, including (i) coverage for actual cash value based on a schedule of factors rather than replacement cost on older roofs, and (ii) implementing mandatory wind/hail deductibles in states exposed to severe convective storms.

E&S Lines Segment
 Quarter ended September 30,Change
% or
Points		Nine Months ended September 30,Change
% or
Points
($ in thousands)2023202220232022
Insurance Segments Results:   
NPW$111,589 89,087 25 %$318,422 264,073 21 %
NPE101,420 85,804 18  282,542 244,840 15  
Less:        
Loss and loss expense incurred52,630 52,299 1  162,215 149,895 8  
Net underwriting expenses incurred32,439 27,489 18  91,253 78,632 16  
Underwriting income (loss)16,351 6,016 172 $29,074 16,313 78 
Combined Ratios:        
Loss and loss expense ratio51.9 %61.0 (9.1)pts57.4 %61.2 (3.8)pts
Underwriting expense ratio32.0 32.0 — 32.3 32.1 0.2 
Combined ratio83.9 93.0 (9.1) 89.7 93.3 (3.6) 

34
NPW growth of 25% in Third Quarter 2023 and 21% in Nine Months 2023, compared to the same prior-year periods, reflected renewal pure price increases and higher direct new business as shown in the table below. In addition, NPW growth in Third Quarter 2023 and Nine Months 2023 benefited from both property and casualty exposure growth on renewal policies driven by higher rates and increased construction costs resulting from economic inflation.

Quarter ended September 30,Nine Months ended September 30,
($ in millions)2023202220232022
Direct new business premiums$55.2 38.6 $148.1 117.3 
Renewal pure price increases6.6 %6.7 7.1 %7.1 

The increase in NPE in Third Quarter 2023 and Nine Months 2023 compared to the same prior-year periods resulted from the same impacts to NPW described above.

The loss and loss expense ratio decreased 9.1 points in Third Quarter 2023 and 3.8 points in Nine Months 2023, compared to the same prior-year periods, primarily driven by the following:

Third Quarter 2023Third Quarter 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Loss and Loss Expense Ratio		Loss and Loss
Expense
Incurred		Impact on
Loss and Loss Expense Ratio		Change in Ratio
Net catastrophe losses$3.5 3.5 pts$4.6 5.4 (1.9)pts
Non-catastrophe property loss and loss expenses7.5 7.4 8.7 10.1 (2.7)
Total$11.0 10.9 $13.3 15.5 (4.6)

Nine Months 2023Nine Months 2022
($ in millions)Loss and Loss Expense IncurredImpact on
Loss and Loss Expense Ratio		Loss and Loss
Expense
Incurred		Impact on
Loss and Loss Expense Ratio		Change in Ratio
Net catastrophe losses$25.4 9.0 pts$8.1 3.3 5.7 pts
Non-catastrophe property loss and loss expenses24.6 8.7 30.2 12.4 (3.7)
(Favorable) prior year casualty reserve development(5.0)(1.8)— — (1.8)
Total$45.0 15.9 $38.3 15.7 0.2 

We experienced elevated net catastrophe losses in Nine Months 2023 compared to Nine Months 2022, as discussed in the "Insurance Operations" section above.

The favorable prior year casualty reserve development in Nine Months 2023 was primarily due to improved loss severities in accident years 2021 and prior. There was no prior year casualty reserve development in Third Quarter 2022 and Nine Months 2022.

In addition, the loss and loss expense ratio was favorably impacted by a decrease in current year casualty loss costs of 4.5 points in Third Quarter 2023 and 4.0 points in Nine Months 2023, compared to the same prior-year periods. Our E&S casualty lines results have improved over recent years from several underwriting and claims initiatives and strong rate increases. The decrease in current year casualty loss costs reflected the impacts of these actions.

Reinsurance
We successfully completed negotiations of our July 1, 2023 excess of loss treaties, which cover our Standard Commercial Lines, Standard Personal Lines, and E&S Lines.

We renewed the Casualty Excess of Loss Treaty ("Casualty Treaty") with substantially the same structure as the expiring treaty. The treaty year 2023 deposit premium increased $28.3 million, or 33%, reflecting (i) higher projected subject earned premium due to growth in our book of business, including pure renewal rate increases; (ii) a modest reinsurance rate increase; and (iii) additional reinstatement coverage in the first three layers.

We renewed the Property Excess of Loss Treaty (“Property Treaty”) and elected to increase the first layer retention from $3.0 million to $5.0 million. We elected to increase our retention in recognition of the growing overall size of our book of business and to manage our overall reinsurance cost while maintaining an appropriate level of capital and earnings protection. In addition, the first layer reinstatement provision was revised to 15 free reinstatements, from the expiring treaty's unlimited free reinstatements. The attachment points and limits for the subsequent layers remained the same. The treaty year deposit
35
premium decreased $5.6 million, or 11%, reflecting the premium reduction associated with the aforementioned first layer retention increase, partially offset by a risk-adjusted rate increase and an increase in exposure.

The following table summarizes the Property Treaty and Casualty Treaty arrangements covering our Insurance Subsidiaries:

Treaty NameReinsurance CoverageTerrorism Coverage
Property Excess of Loss (covers all insurance operations)
There are three layers covering 100% of $65 million in excess of $5 million. Losses other than Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA") certified losses are subject to the following reinstatements and annual aggregate limits:

- $5 million in excess of $5 million layer provides 15
        reinstatements, $80 million in aggregate limits;
- $20 million in excess of $10 million layer provides three
        reinstatements, $80 million in aggregate limits; and
- $40 million in excess of $30 million layer provides two
        reinstatements, $120 million in aggregate limits.
All nuclear, biological, chemical, and radioactive ("NBCR") losses are excluded regardless of whether or not they are certified under the TRIPRA. For non-NBCR losses, the treaty distinguishes between acts committed on behalf of foreign persons or foreign interests ("Foreign Terrorism") and those that are not. The treaty provides annual aggregate limits for Foreign Terrorism (other than NBCR) acts of $15 million for the first layer, $60 million for the second layer, and $40 million for the third layer. Non-Foreign Terrorism losses (other than NBCR) are covered to the same extent as non-terrorism losses.
Casualty Excess of Loss (covers all insurance operations)
There are six layers covering 100% of $88 million in excess of $2 million. Losses other than terrorism losses are subject to the following:

- $3 million in excess of $2 million layer provides 48
      reinstatements, $147 million annual aggregate limit;
- $7 million in excess of $5 million layer provides eight
      reinstatements, $63 million annual aggregate limit;
- $9 million in excess of $12 million layer provides three
      reinstatements, $36 million annual aggregate limit;
- $9 million in excess of $21 million layer provides one
      reinstatement, $18 million annual aggregate limit;
- $20 million in excess of $30 million layer provides one
      reinstatement, $40 million annual aggregate limit; and
- $40 million in excess of $50 million layer provides one
      reinstatement, $80 million annual aggregate limit.
All NBCR losses are excluded. All other losses stemming from the acts of terrorism are subject to the following:

- $3 million in excess of $2 million layer with $15 million net
       annual terrorism aggregate limit;
- $7 million in excess of $5 million layer with $28 million net
      annual terrorism aggregate limit;
- $9 million in excess of $12 million layer with $27 million net
      annual terrorism aggregate limit;
- $9 million in excess of $21 million layer with $18 million net
      annual terrorism aggregate limit;
- $20 million in excess of $30 million layer with $40 million
      net annual terrorism aggregate limit; and
 - $40 million in excess of $50 million layer with $80 million
      net annual terrorism aggregate limit.

Investments
Our investment portfolio's objectives are to maximize after-tax net investment income and generate long-term growth in book value per share by maximizing the overall total return of the portfolio by investing the premiums we receive from our insurance operations and the amounts generated through our capital management strategies, which may include debt and equity security issuances. We balance those objectives against prevailing market conditions, capital preservation considerations, and our enterprise risk-taking appetite. We maintain (i) a well-diversified portfolio across issuers, sectors, and asset classes; and (ii) a high credit quality fixed income securities portfolio with a duration and maturity profile at an acceptable risk level that provides ample liquidity.

The effective duration of the fixed income securities portfolio, including short-term investments, was 4.1 years as of September 30, 2023. The effective duration is monitored and managed to maximize yield while managing interest rate risk at an acceptable level. Purchases and sales are made with the intent of maximizing investment returns in the current market environment while balancing capital preservation.

Our fixed income and short-term investments represented 92% of our invested assets at September 30, 2023 and December 31, 2022. Our fixed income and short-term investments portfolio had a weighted average credit rating of "A+" as of September 30, 2023 and "AA-" as of December 31, 2022, with investment grade holdings representing 96% of the total portfolio on both dates. The weighted average credit rating decline reflects the impact from the recent Fitch Ratings ("Fitch") downgrade of the U.S. sovereign ratings in Third Quarter 2023. This downgrade impacted the credit ratings of our U.S. government and government agency securities and agency mortgage-backed securities, which represented about 17% of our fixed income and short-term investments portfolio as of September 30, 2023.

For further details on the composition, credit quality, and various risks to which our portfolio is subject, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk.” of our 2022 Annual Report.

36
Total Invested Assets
($ in thousands)September 30, 2023December 31, 2022Change
Total invested assets$8,195,914 7,837,469 5 %
Invested assets per dollar of common stockholders' equity3.35 3.37 (1)
Components of unrealized gains (losses) – before tax:
Fixed income securities(628,678)(527,892)19 %
Equity securities3,231 (5,431)(159)%
Net unrealized gains (losses) – before tax(625,447)(533,323)17 %
Components of unrealized gains (losses) – after tax:
Fixed income securities(496,655)(417,035)19 %
Equity securities2,552 (4,290)(159)%
Net unrealized gains (losses) – after tax(494,103)(421,325)17 %

Invested assets increased $358.4 million at September 30, 2023, compared to December 31, 2022, reflecting our active investment of operating and investing cash flows in 2023. Operating cash flows during Nine Months 2023 were 17% of NPW. The increase in invested assets was partially offset by a $92.1 million increase in pre-tax unrealized losses during Nine Months 2023. The increase in pre-tax unrealized losses was primarily driven by an increase in benchmark U.S. Treasury rates, partially offset by a tightening of credit spreads.

Net Investment Income
The components of net investment income earned were as follows:

 Quarter ended September 30,Change
% or Points		Nine Months ended September 30,Change
% or Points
($ in thousands)2023202220232022
Fixed income securities$90,013 68,236 32 %$254,016 184,305 38 %
Commercial mortgage loans ("CMLs")2,516 1,600 57 6,680 3,762 78 
Equity securities2,083 2,604 (20)5,524 7,661 (28)
Short-term investments3,941 1,152 242 11,483 1,660 592 
Alternative investments6,473 (5,581)(216)25,637 22,821 12 
Other investments284 112 154 515 75 587 
Investment expenses(4,447)(4,234)5 (13,790)(13,571)2 
Net investment income earned – before tax100,863 63,889 58 290,065 206,713 40 
Net investment income tax expense(20,636)(12,356)67 (58,974)(40,007)47 
Net investment income earned – after tax$80,227 51,533 56 $231,091 166,706 39 
Effective tax rate20.5 %19.3 1.2 pts20.3 %19.4 0.9 pts
Annualized after-tax yield on fixed income investments4.1 3.4 0.7 4.0 3.0 1.0 
Annualized after-tax yield on investment portfolio3.9 2.7 1.2 3.8 2.9 0.9 

After-tax net investment income earned increased 56% in Third Quarter 2023 and 39% in Nine Months 2023, compared to the same prior-year periods, primarily driven by an increase in income earned on our fixed income securities portfolio due to higher book yields received from the investment of operating and investing cash flows over the past year in the higher interest rate environment.

37
Realized and Unrealized Gains and Losses
When evaluating securities for sale, our general philosophy is to reduce our exposure to securities and sectors based on economic evaluations of whether (i) the fundamentals for that security or sector have deteriorated or (ii) the timing is appropriate to opportunistically trade for other securities with better economic-return characteristics. Net realized and unrealized gains and losses for the indicated periods were as follows:

 Quarter ended September 30,Change %Nine Months ended September 30,Change %
($ in thousands)2023202220232022
Net realized gains (losses) on disposals$(4,897)(12,574)(61)%$(24,839)(28,730)(14)%
Net unrealized gains (losses) on equity securities489 (7,777)(106)8,662 (31,791)(127)
Net credit loss benefit (expense) on fixed income securities, AFS(2,468)(4,471)(45)7,925 (42,042)(119)
Net credit loss benefit (expense) on fixed income securities, held-to-maturity— 54 (100)— 62 (100)
Net credit loss benefit (expense) on CMLs(4)— — (65)— — 
Losses on securities for which we have the intent to sell— (913)(100)(645)(6,412)(90)
Total net realized and unrealized investment gains (losses)$(6,880)(25,681)(73)$(8,962)(108,913)(92)

Net realized and unrealized investment losses decreased 73% in Third Quarter 2023 compared to Third Quarter 2022, primarily due to (i) an increase in valuations reflecting the current public equities market, and (ii) a decrease in net realized losses on disposals from our AFS fixed income securities portfolio.

Net realized and unrealized investment losses decreased 92% in Nine Months 2023 compared to Nine Months 2022, primarily due to (i) a credit loss benefit recorded on our AFS fixed income securities portfolio in Nine Months 2023 compared to credit loss expense recorded in Nine Months 2022, and (ii) an increase in valuations reflecting the current public equities market. The credit loss benefit in Nine Months 2023 reflected the tightening of credit spreads, partially offset by rising benchmark U.S. Treasury rates.

Federal Income Taxes
The following table provides information regarding federal income taxes and reconciles federal income tax at the corporate rate to the effective tax rate:

Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Tax at statutory rate$23,629 11,054 $63,301 36,211 
Tax-advantaged interest(508)(981)(1,766)(3,097)
Dividends received deduction(38)(95)(174)(355)
Executive compensation617 598 1,886 1,340 
Stock-based compensation(51)(25)(1,775)(812)
Other(340)(437)(429)771 
Federal income tax expense$23,309 10,114 $61,043 34,058 
Income before federal income tax, less preferred stock dividends$110,217 50,339 $294,533 165,533 
Effective tax rate21.1 %20.1 20.7 %20.6 

Liquidity and Capital Resources
Capital resources and liquidity reflect our ability to generate cash flows from business operations, borrow funds at competitive rates, and raise new capital to meet our operating and growth needs.

Liquidity
We manage liquidity by generating sufficient cash flows to meet the short-term and long-term cash requirements of our business operations. We adjust our liquidity requirements based on economic conditions, market conditions, and future cash flow commitments, as discussed further below.

Sources of Liquidity
Sources of cash for the Parent historically have consisted of dividends from the Insurance Subsidiaries, the investment portfolio held at the Parent, borrowings under third-party lines of credit, loan agreements with certain Insurance Subsidiaries, and the issuance of equity (common or preferred) and debt securities. We continue to monitor these sources, considering our short-term and long-term liquidity and capital preservation strategies.

The Parent's investment portfolio includes (i) short-term investments that have historically been maintained in “AAA” rated
38
money market funds, (ii) high-quality, highly liquid government and corporate fixed income securities, (iii) equity securities, (iv) alternative investments, and (v) a cash balance. In the aggregate, Parent cash and total investments amounted to $486 million at September 30, 2023, and $484 million at December 31, 2022.

The amount and composition of the Parent's investment portfolio may change over time based on various factors, including the amount and availability of dividends from our Insurance Subsidiaries, investment income, expenses, other Parent cash needs, such as dividends payable to stockholders, asset allocation investment decisions, inorganic growth opportunities, debt retirement, and share repurchases. Our target is for the Parent to maintain highly liquid investments of at least twice its expected annual net cash outflow needs, or $180 million.

Insurance Subsidiary Dividends
The Insurance Subsidiaries generate liquidity through insurance float, which is created by collecting premiums and earning investment income before paying claims. The period of float can extend over many years. Our investment portfolio consists of securities with maturity dates that continually provide a source of cash flow for claims payments in the ordinary course of business. To protect our Insurance Subsidiaries' capital, we purchase reinsurance coverage for significantly large claims or catastrophes that may occur.

The Insurance Subsidiaries paid $80 million in total dividends to the Parent in Nine Months 2023. The Insurance Subsidiaries' Boards of Directors did not declare a dividend payable to the Parent during Third Quarter 2023 and do not intend to declare a dividend in the fourth quarter of 2023 to support the continued growth of the Insurance Subsidiaries. As of December 31, 2022, our allowable ordinary maximum dividend is $283 million for 2023. All Insurance Subsidiary dividends to the Parent are (i) subject to the approval and/or review of its domiciliary state insurance regulator, and (ii) generally payable only from earned statutory surplus reported in its annual statements as of the preceding December 31. Although domiciliary state insurance regulators historically have approved dividends, there is no assurance they will approve future Insurance Subsidiary dividends.

New Jersey corporate law also limits the maximum amount of dividends the Parent can pay our stockholders if either (i) the Parent would be unable to pay its debts as they become due in the usual course of business, or (ii) the Parent’s total assets would be less than its total liabilities. The Parent’s ability to pay dividends to stockholders is also impacted by (i) covenants in its credit agreement that obligate it, among other things, to maintain a minimum consolidated net worth and a maximum ratio of consolidated debt to total capitalization, and (ii) the terms of our preferred stock that prohibit dividends from being declared or paid on our common stock if dividends are not declared and paid, or made payable, on all outstanding preferred stock for the latest completed dividend period.

For additional information regarding dividend restrictions and financial covenants, where applicable, see Note 11. "Indebtedness," Note 17. "Equity," and Note 22. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” in Item 8. “Financial Statements and Supplementary Data.” of our 2022 Annual Report.

Line of Credit
On November 7, 2022, the Parent entered into a Credit Agreement with the lenders named therein (the “Lenders”) and Wells Fargo Bank, National Association, as Administrative Agent ("Line of Credit"). Under the Line of Credit, the Lenders have agreed to provide the Parent with a $50 million revolving credit facility that can be increased to $125 million with the Lenders' consent. No borrowings were made under the Line of Credit in Nine Months 2023. The Line of Credit will mature on November 7, 2025, and has a variable interest rate based on the Parent’s debt ratings. We expect to continue to maintain a credit facility for liquidity purposes. For additional information regarding the Line of Credit and corresponding representations, warranties, and covenants, refer to Note 11. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2022 Annual Report. We met all covenants under our Line of Credit as of September 30, 2023.

Four of the Insurance Subsidiaries are members of Federal Home Loan Bank ("FHLB") branches, as shown in the following table. Membership requires the ownership of branch stock and includes the right to access liquidity. All Federal Home Loan Bank of Indianapolis ("FHLBI") and Federal Home Loan Bank of New York ("FHLBNY") borrowings are required to be secured by investments pledged as collateral. For additional information regarding collateral outstanding, refer to Note 4. "Investments" in Item 1. "Financial Statements." of this Form 10-Q.

BranchInsurance Subsidiary Member
FHLBI
Selective Insurance Company of South Carolina ("SICSC")1
Selective Insurance Company of the Southeast ("SICSE")1
FHLBNYSelective Insurance Company of America ("SICA")
Selective Insurance Company of New York ("SICNY")
1These subsidiaries are jointly referred to as the "Indiana Subsidiaries" because they are domiciled in Indiana.
39

The Line of Credit permits aggregate borrowings from the FHLBI and the FHLBNY up to 10% of the respective member company’s admitted assets for the previous year. As SICNY is domiciled in New York, its FHLBNY borrowings are limited by New York insurance regulations to the lower of 5% of admitted assets for the most recently completed fiscal quarter, or 10% of admitted assets for the previous year-end. As of September 30, 2023, we had remaining capacity of $470.7 million for FHLB borrowings, with a $18.7 million additional stock purchase requirement to allow the member companies to borrow their remaining capacity amounts.

Short-term Borrowings
On April 6, 2023, SICA borrowed $20 million from the FHLBNY at an interest rate of 5.00% that was repaid on May 8, 2023. These funds were used for general corporate purposes.

Intercompany Loan Agreements
The Parent has lending agreements with the Indiana Subsidiaries, approved by the Indiana Department of Insurance, that provide the Parent with additional intercompany liquidity. Similar to the Line of Credit, these lending agreements limit the Parent’s borrowings from the Indiana Subsidiaries to 10% of the admitted assets of the respective Indiana Subsidiary. The outstanding balance on these intercompany loans was $40.0 million as of both September 30, 2023, and December 31, 2022. The remaining capacity under these intercompany loan agreements was $121.5 million as of both September 30, 2023, and December 31, 2022. Additionally, we have other insurance regulator-approved intercompany agreements in place that facilitate liquidity management between the Parent and the Insurance Subsidiaries to enhance flexibility.

Capital Market Activities
The Parent had no private or public stock issuances during Nine Months 2023. In addition, we had no common stock share repurchases during Nine Months 2023 under our existing share repurchase program. We had $84.2 million of remaining capacity under our share repurchase program as of September 30, 2023. For additional information on the share repurchase program, refer to Note 17. “Equity” in Item 8. "Financial Statements and Supplementary Data." of our 2022 Annual Report.

Uses of Liquidity
The Parent's liquidity generated from the sources discussed above is used, among other things, to pay dividends to our stockholders. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. On November 1, 2023, our Board declared:

•A 17% increase in the quarterly cash dividend on common stock, to $0.35 per common share, that is payable December 1, 2023, to holders of record on November 15, 2023; and
•A cash dividend of $287.50 per share on our 4.60% Non-Cumulative Preferred Stock, Series B (equivalent to $0.28750 per depository share) payable on December 15, 2023, to holders of record as of November 30, 2023.

Our ability to meet our interest and principal repayment obligations on our debt and our ability to continue to pay dividends to our stockholders is dependent on (i) liquidity at the Parent, (ii) the ability of the Insurance Subsidiaries to pay dividends, if necessary, and/or (iii) the availability of other sources of liquidity to the Parent. Our next borrowing principal repayment is $60 million to FHLBI due on December 16, 2026.

Restrictions on the ability of the Insurance Subsidiaries to declare and pay dividends, without alternative liquidity options, could materially affect our ability to service debt and pay dividends on common and preferred stock.

Capital Resources
Capital resources ensure we can pay policyholder claims, furnish the financial strength to support the business of underwriting insurance risks, and facilitate continued business growth. At September 30, 2023, we had GAAP stockholders' equity and statutory surplus of $2.6 billion. With total debt of $504.6 million at September 30, 2023, our debt-to-capital ratio was 16%. For additional information on our statutory surplus, see Note 22. "Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds" in Item 8. "Financial Statements and Supplementary Data." of our 2022 Annual Report.

40
The following table summarizes certain contractual obligations we had at September 30, 2023, that may require us to invest additional amounts into our investment portfolio, which we would fund primarily with operating cash flows.

($ in millions)Amount of Obligation
Alternative and other investments$247.3 
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio95.2 
Non-publicly traded common stock within our equity portfolio24.4 
CMLs1.3 
Privately-placed corporate securities32.0 
Total$400.2 

There is no certainty (i) that any such additional investments will be required, and (ii) of the timing of funding. We expect to have the capacity to fund these commitments through our normal operating and investing activities as they come due.

Our current and long-term material cash requirements associated with (i) loss and loss expense reserves, (ii) contractual obligations under operating and financing leases for office space and equipment, and (iii) notes payable, funded primarily with operating cash flows, have not materially changed since December 31, 2022. The Insurance Subsidiaries' net loss and loss expense reserves duration was 3.1 years at December 31, 2022.

Our other cash requirements include, without limitation, dividends to stockholders, capital expenditures, and other operating expenses, including commissions to our distribution partners, labor costs, premium taxes, general and administrative expenses, and income taxes.

As of September 30, 2023, and December 31, 2022, we had no (i) material guarantees on behalf of others and trading activities involving non-exchange traded contracts accounted for at fair value, (ii) material transactions with related parties other than those disclosed in Note 18. “Related Party Transactions” in Item 8. “Financial Statements and Supplementary Data.” of our 2022 Annual Report, and (iii) material relationships with unconsolidated entities or financial partnerships, such as structured finance or special purpose entities, established to facilitate off-balance sheet arrangements or other contractually narrow or limited purposes. Consequently, we are not exposed to any material financing, liquidity, market, or credit risk related to off-balance sheet arrangements.

We continually monitor our cash requirements and the capital resources we maintain at the holding company and operating subsidiary levels. As part of our long-term capital strategy, we strive to maintain capital metrics that support our targeted financial strength relative to the macroeconomic environment. Based on our analysis and market conditions, we may take a variety of actions, including, without limitation, contributing capital to the Insurance Subsidiaries, issuing additional debt and/or equity securities, repurchasing existing debt, repurchasing shares of the Parent’s common stock, and increasing common stockholders’ dividends.

Our capital management strategy is intended to protect the interests of the policyholders of the Insurance Subsidiaries and our stockholders while enhancing our financial strength and underwriting capacity. We have a profitable book of business and solid capital base, positioning us well to take advantage of potential market opportunities.

Book value per common share increased 5% to $40.35 as of September 30, 2023, from $38.57 as of December 31, 2022, driven by $3.83 in net income available to common stockholders per diluted common share, partially offset by a $1.31 increase in unrealized losses on our fixed income securities portfolio and $0.90 in dividends to our common stockholders. The increase in net unrealized losses on our fixed income securities was primarily driven by an increase in benchmark U.S. Treasury rates, partially offset by a tightening of credit spreads. Our adjusted book value per share, which is book value per share excluding total after-tax unrealized gains or losses on investments included in accumulated other comprehensive income (loss), increased to $48.54 as of September 30, 2023, from $45.49 as of December 31, 2022.

Cash Flows
Net cash provided by operating activities increased to $522.3 million in Nine Months 2023, compared to $485.4 million in Nine Months 2022, primarily driven by higher levels of cash received for premiums.

Net cash used in investing activities increased to $470.0 million in Nine Months 2023, compared to $450.9 million in Nine Months 2022, as a result of investing more cash from operating activities. Operating cash flows during Nine Months 2023 were 17% of NPW.

Net cash used in financing activities decreased to $64.1 million in Nine Months 2023, compared to $70.6 million in Nine
41
Months 2022, primarily due to decreased activity in our share repurchase program in Nine Months 2023, partially offset by increased dividends to our common stockholders in Nine Months 2023.

Ratings
Our ratings are as follows:

Nationally Recognized Statistical Rating Organizations
Financial Strength RatingOutlook
AM Best CompanyA+Stable
Moody's Investors Services ("Moody's")A2Positive
Fitch Ratings
A+Stable
Standard & Poor's Global Ratings ("S&P")AStable

On May 25, 2023, Fitch reaffirmed our "A+" rating with a "stable" outlook. In taking this rating action, Fitch cited our (i) business profile as a regional commercial lines writer with strong independent agency relationships, (ii) strong capitalization, and (iii) strong financial performance with stable underwriting results and return metrics that have remained favorable compared to peers.

On July 18, 2023, Moody's reaffirmed our "A2" rating and changed our rating outlook to "positive" from "stable." In taking this rating action, Moody's cited our (i) long record of consistent underwriting profitability and measured geographic expansion while maintaining a sound balance sheet, (ii) strong regional market presence with strong independent agency relationships, and (iii) conservative investment portfolio.

On October 9, 2023, S&P reaffirmed our "A" rating with a "stable" outlook. In taking this rating action, S&P cited our (i) strong financial and business risk profiles, (ii) sound underwriting process that produces profitable operating performance, and (iii) very strong and stable capital adequacy.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in the information about market risk set forth in our 2022 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this report. In performing this evaluation, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework ("COSO Framework") in 2013. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures as of the end of such period are (i) effective in recording, processing, summarizing, and reporting information on a timely basis that we are required to disclose in the reports that we file or submit under the Exchange Act, and (ii) effective in ensuring that information that we are required to disclose in the reports that we file or submit under the Exchange Act is appropriately accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions about required disclosure. No changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) occurred during Third Quarter 2023 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Incidental to our insurance operations, we are routinely engaged in legal proceedings with inherently unpredictable outcomes that could have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. For additional information regarding our legal risks, refer to Note 13. "Litigation" in Item 1. "Financial Statements." of this Form 10-Q and Item 1A. “Risk Factors.” below in Part II. “Other Information.” As of September 30, 2023, we have no material pending legal proceedings that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

42
ITEM 1A. RISK FACTORS.

Certain risk factors can significantly impact our business, liquidity, capital resources, results of operations, financial condition, and debt ratings. These risk factors might affect, alter, or change our actions in executing our long-term capital strategy. Examples include, without limitation, contributing capital to any or all of the Insurance Subsidiaries, issuing additional debt and/or equity securities, repurchasing our existing debt and/or equity securities, or increasing or decreasing common stockholders' dividends. We operate in a continually changing business environment, and new risk factors that we cannot predict or assess may emerge at anytime. Consequently, we can neither predict such new risk factors nor assess the potential future impact on our business. There have been no material changes from the risk factors disclosed in Item 1A. “Risk Factors.” in our 2022 Annual Report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The following table provides information regarding our purchases of our common stock in Third Quarter 2023:

Period
Total Number of
Shares Purchased1
Average Price
Paid per Share
Total Number of
Shares Purchased
as Part of Publicly
Announced Programs2
Approximate Dollar Value of
Shares that May Yet
Be Purchased Under the Announced Programs
(in millions)2
July 1-31, 2023
659 $97.45 — $84.2 
August 1-31, 2023
105 103.30 — 84.2 
September 1-30, 2023
2,195 98.66 — 84.2 
Total2,959 $98.55 — $84.2 
1We purchased these shares from employees to satisfy tax withholding obligations associated with the vesting of their restricted stock units.
2On December 2, 2020, we announced our Board of Directors authorized a $100 million share repurchase program with no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock. Management will determine the timing and amount of any share repurchases under the authorization at its discretion based on market conditions and other considerations.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

During the three months ended September 30, 2023, no director or officer of the Company adopted, modified, or terminated any contract, instruction, or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (a “Rule 10b5-1 trading arrangement") or any "non-Rule 10b5-1 trading arrangement" (as defined in Item 408(c) of Regulation S-K).

43
Table of Contents
ITEM 6. EXHIBITS.

Exhibit No. 
Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Executive Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.
**101
The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements.
**104
The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in iXBRL.
* Filed herewith.
** Furnished and not filed herewith.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SELECTIVE INSURANCE GROUP, INC.
Registrant 
Date:November 2, 2023By: /s/ John J. Marchioni
 John J. Marchioni
 Chairman of the Board, President and Chief Executive Officer
(principal executive officer)
Date:November 2, 2023By: /s/ Mark A. Wilcox
Mark A. Wilcox
Executive Vice President and Chief Financial Officer
(principal financial officer)

44

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com