AM Best confirms the credit ratings of Selective Insurance Group, Inc. and its subsidiaries

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OLDWICK, NJ–()–AM Best affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long Term Issuer Credit Rating (Long Term ICR) of “aa-” (Superior) of the aggregated members of Selective Insurance Group (Selective ). In addition, AM Best affirmed the long-term ICR of “a-” (Excellent) and the long-term issue credit ratings (long-term IR) of the ultimate parent company, Selective Insurance Group, Inc. [NASDAQ: SIGI]. The outlook for these Credit Ratings (ratings) is stable. All companies are headquartered in Branchville, NJ. (Please see below for a detailed list of companies and ratings.)

The ratings reflect Selective’s balance sheet strength, which AM Best rates as the strongest, as well as its strong operational performance, favorable business profile and appropriate management of business risks.

Selective’s balance sheet strength is supported by its risk-adjusted capital position and the financial flexibility provided by its publicly traded parent company and is partially offset by exposure to disaster and terrorism-related losses. Profitability has improved over the past five years in absolute terms and relative to its peers. Group underwriting results benefited from a combination of low to medium risk business, a conservative underwriting philosophy and disaster risk mitigation initiatives. In addition, the group improved underwriting results in its more challenging commercial and surplus automotive business portfolios through various underwriting initiatives and targeted rate increases. The favorable business profile is based in part on the group’s close working relationships with its selected agencies and its use of technology to enhance its underwriting and service capabilities.

The FSR of A+ (Superior) and the long-term ICRs of “aa-” (Superior) have been confirmed with a stable outlook for members of the pool of Selective Insurance Group:

  • Selective Insurance Company of America

  • Insurance company selectively

  • South East Selective Insurance Company

  • New York Selective Insurance Company

  • South Carolina Selective Insurance Company

  • New England Selective Insurance Company

  • New Jersey Select Auto Insurance Company

  • Mesa Underwriters Specialty Insurance Company

  • Selective multi-risk insurance company

  • Selective fire and damage insurance company

The following long-term IRs have been confirmed with a stable outlook:

Selective Insurance Group, Inc.—

–“a-” (Excellent) on $49.9 million 7.25% senior unsecured notes, due 2034

–“a-” (Excellent) on $99.4 million 6.70% senior unsecured notes, due 2035

–“a-” (Excellent) on $294.2 million 5.375% senior unsecured notes, due 2049

The following indicative long-term IRs have been confirmed with a stable outlook on the current shelf record:

Selective Insurance Group, Inc.—

–“a-” (Excellent) on senior unsecured debt

–“bbb+” (good) on subordinated debt

–“bbb” (good) on preferred stock

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best performance reviews, Best preliminary credit ratings and AM Best press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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