OLDWICK, NJ–(BUSINESS WIRE)–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
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