2024 Annual Report

2024

ANNUAL REPORT

2024 GAAP Financial Highlights

($ in millions, except per share data)

Insurance Operations

Net premiums written Combined ratio

Underwriting income (loss) after-tax

Retuon common equity from insurance operations, after-tax

Investments

Net investment income after-tax

Net realized and unrealized investment (losses) after tax Total invested assets

Invested assets per dollar of common stockholders' equity Annual after-tax yield on investment portfolio

Retuon common equity from net investment income, after-tax

Summary Data

Total revenues

Net income available to common stockholders Retuon common equity

Non-GAAP operating income*

Non-GAAP operating retuon common equity ("operating ROE")*

Operating cash flow as % of net premiums written

Total assets

Stockholders' equity Common stockholders' equity

Per Common Share Data

Diluted net income available to common stockholders Diluted non-GAAP operating income*

Dividends to common stockholders Book value

AVERAGE ANNUAL RETURN

2024

2023

% or Point

Change Better/(Worse)

96.5% (6.5)

$104.9 (200%)

4.2% (7.9)

$309.5 17%

($2.8) (17%)

$8,693.7 11%

$3.16 5%

3.7% 0.3

12.4% 0.4

$4,232.1 15%

$356.0 (44%)

14.3% (7.3%)

$358.8 (44%)

14.4% (7.3)

18.4% 5.4

$11,802.5 15%

$2,954.4 6%

$2,754.4 6%

$5.84 (45%)

$5.89 (44%)

$1.25 14%

$45.42 6%

*Non-GAAP (U.S. Generally Accepted Accounting Priciples) operating income, non-GAAP operating income per diluted common share, and non-GAAP operating retuon common equity are non-GAAP measures. Refer to the "Financial Highlights of Results for Years Ended December 31, 2024, 2023, and 2022" section in Item 7: "Management's Discussion and Analysis of Financial Conditions and Results of Operations" in our Annual Report on

Form 10-K for the fiscal year ended December31, 2024, for a reconciliation of the non-GAAP measures to the equilvalent GAAP measures.

TO OUR STOCKHOLDERS

2024 was challenging, but we ended the year with a strong foundation. I am proud of our team's strategic progress and resilience in addressing economic uncertainty, elevated loss trends, and frequent and severe weather events.

Financial results fell short of our expectations. Elevated catastrophe lossesand our social inflation-related reservingactions drove the 103% combined ratio. However, book value per share increased 6% and non-GAAP retuon equity (ROE)

was 7.1%, benefiting from after-tax netinvestment income of $363 million.

As we look to 2025, creating long-term value for our stockholders while making a meaningful difference for our customers during moments that matter remains our focus. We pride ourselves on our long track record of delivering a target operating ROE of 12% or better and are committed to returning to that in the year ahead.

NET PREMIUMS WRITTEN

NPW($inbillions)

$2

$5

$4

$3

$-$1

*compound annual growth rate

Executing Across Our Three Segments

Success in a competitive market requires focus, commitment, and ongoing investment. In 2024, we advanced several key strategic initiatives that positionus well for long-term, profitable growth across our three insurance segments - each providing significant value to our distribution partners and the flexibility we need tosucceed in the market.

• •InStandard Commercial Lines,which represents79% of our business, we added five states to ourgeographic footprint in 2024. This segment now operates in 35 states that extend across the country. Over the next two years, we expect to add Kansas, Wyoming, and Montana, bringing us closer to our goal of writing Standard Commercial Lines in nearly every state. We continue to view organic growth - through geographic expansion and increased market share in our existing states - as a key value-creation lever.

• •Excess and Surplus Lines,representing 12%of our business, also presents profitable growthopportunities. We are further investing in this 50-state-capable business to improve processefficiency, develop new products, and increasescalability.

• •InStandard Personal Lines,representing 9% of net premiums written, we are successfully repositioningour business to the mass affluent market, where ourstrong coverage and servicing capabilities allow us to create value for our customers and distribution partners. In 2024, we took targeted repositioning actions on our book. In some cases, this required tempering new business and lowering retention rates, but these actions resulted in meaningfullyimproved underwriting profitability. To furtherenhance results, we are increasing rate levelsand refining pricing factors and policy terms andconditions, which drive appropriate risk-sharing. Growth will come in states where pricing adequatelysupports our profitability objectives.

Helping Customers and Each Other Is Core to What We Do

I am proud of our Selective team for delivering superior claims service and supporting customers and claimants during 2024's elevated catastrophe losses. Their effortsreflect our commitment to our customers, distributionpartners, and communities. The increased frequency and severity of weather events underscore our essential role in helping customers re-establish their lives and businesses after experiencing a covered loss.

To help prevent customer losses and build on our existing suite of value-added services, in 2024, we launched our online Risk Management Center. This information center provides our Standard Commercial Lines customers seamless, on-demand access to a curated selection of self-service risk management resources. We will continue exploring other avenues to help our customers decrease their exposure while they increase their resiliency to evolving risks.

In addition, our investments in technology across our portfolio have enhanced our effectiveness andefficiency, increasing decision-making speed, customerexperience, and agency satisfaction. We are leveraging general-purpose and industry-trained generativeartificial intelligence solutions to improve internalprocesses. In Claims, a multi-year modernization and process transformation strategy is underway.

Key objectives include (i) providing our adjusters withincreased quality real-time data to enhance decision-making, (ii) efficiently monitoring adjusting team workflows, (iii) optimizing processes, and (iv) delivering an exceptional customer experience.

Driving Financial Progress

Non-GAAP operating ROE for the year was 7.1% with strong after-tax net investment income contributing 12.8 points.

Our 2024 combined ratio of 103% included 6.5 points of catastrophe losses and 7.1 points of unfavorable prior-year casualty reserve development, primarily due to higher-than-expected severity trends in the generalliability line of business. Social inflation, which driveshigher severity trends, and elevated catastrophe losses are impacting Selective and the insurance industry.

Each quarter, we perform in-depth reserve reviews forall of our major lines of business, and we adjust our bestestimates accordingly. This process informs the pricing goals and underwriting actions we execute across the organization. Our disciplined approach ensures wetake the actions needed to ensure the profitability ofour underwriting portfolio, and provides us the ability to effectively balance rate, retention, and growth acrossour segments while refining our book of business.

COMBINED RATIO

GAAP Combined RatioUnderlying Combined Ratio*

105%

100%

95%

90%

85%

2016

2017

2018

2019

2020

2021

* Underlying Combined Ratio excludes catastrophe losses and prior year casualty reserve development

2022

2023

2024

"

I am proud of our team's strategic progress and resilience in

addressing economic uncertainty, elevated loss trends, and frequent and severe weather events. As we look to 2025, creating long-term value for our stockholders while making a meaningful difference for our customers during moments that matter remains our focus."

John J. Marchioni

Chairman of the Board, President and Chief Executive Officer

Based on this history, I am confident we have the team and tools to achieve our target profitability across ourportfolio, including the general liability line. We have increased general liability pricing in recent quarters toaddress the elevated loss trend environment. As weseek stronger pricing, we have naturally seen new business moderate somewhat. This is a trade-off we are comfortable with in the current environment.

Even with these actions, our total 2024 net premiums written were $4.6 billion, up 12% from last year. Withour outlook for continued, profitable growth, our Boardof Directors declared a 9% increase in our quarterly dividend to $0.38 per common share in October 2024.

Board of Directors Update

We are pleased to have welcomed Kate E. R. Sampson to our Board of Directors in July 2024. Kate is an insurance industry and technology specialist with over25 years of experience in financial, operational, andmanagement roles who brings valuable perspectives tothe Board. Her appointment reflects our commitment tobuilding a culture of innovation and delivering a superior insurance customer experience.

We would like to acknowledge and thank Philip H. Urbanfor his 10 years of Board service, and the guidance and insights he provided over this time. Phil, who most recently served as a member of the Audit Committee and Compensation and Human Capital Committee, which he chaired, will be retiring at the 2025 Annual Meeting of Stockholders. We wish him and his family the best.

2025 Annual Meetingof Stockholders

On behalf of the Selective Board and management team, thank you for your investment in Selective and your continuing support. We look forward to keeping you updated throughout the year as we capitalize onour competitive strengths - our unique field model, ourdistribution partner relationships, and our customer-experience focus - to deliver enhanced value.

Our 2025 Annual Meeting of Stockholders will be heldvirtually on April 30. We hope you will join us.

John J. Marchioni

Chairman of the Board, Presidentand Chief Executive Officer

At Selective, our vision is to make a meaningful difference for our customers during moments that matter with a unique blend of exceptional insurance solutions delivered by talented people.

As a customer-centric insurance organization, we take pride in helping our policyholders after a covered loss.

In 2024, we expanded our suite of value-added services to make it easier for our customers to mitigate and manage their risks:

• •Our Risk Management Center, accessible through the

  MySelective mobile app and website, gives business policyholders unique, curated tools and resources for identifying and lowering business risks.

• •Two different options for water monitoring and leak detection devices can alert interested homeowner policyholders of small or hidden leaks early so they can be addressed before a bigger problem develops.

• •A smart device plugged into an electrical outlet helps homeowner policyholders monitor voltage todetect, reduce, and avoid electrical fire risk.

Our Unwavering

Commitment to Service

Our Claims team works diligently throughout the year to deliver responsive and professional claims handling. One of the important times for us to make a meaningful difference in moments that matter is in the wake of severe weather events. These events, which are increasing in frequency and severity, can affect many of our customers across a broad geographic area.

In September 2024, Hurricane Helene devastated the Southeast. To help our impacted customers and agents, we immediately deployed our emergency response team. Our expert claims professionals traveled throughout the area demonstrating our commitment to service excellence, including conducting on-the-spotfield inspections for our Commercial and Personal Lines customers, helping them file claims, and issuinghundreds of payments daily. Our Catastrophe Van also served as a makeshift community relief hub, providing essential utilities and communication channels to those who needed them.

LEADING WITH PURPOSE

We are committed to promoting a welcoming culture that celebrates talent, individualism, unique backgrounds and experiences, and positively impacts the communities where we - and our customers and agents - live and work.

We also strive to make a positive philanthropic difference in the moments that matter. The Selective Insurance Group Foundation coordinates donations of time, money, and resources to important causes. Our 2024 contributions included:

$978,900	Donated to non-profit
organizations throughout our
geographic footprint.
76%	Portion of our philanthropic
giving direct to community-
based charities that support
local residents.
$135,750	Matched gifts increasing the
impact of donations made by
employees and President's
Club-level agents.
5,300	Hours our employees
volunteered. We provide
employees one paid day off
a year to do social good in
their communities.
6|SELECTIVE

Our Talented Team

At Selective, we make a concerted effort to engage across every stage of the talent lifecycle, helping our 2,800+ employees recognize how their contributions shape our collective achievements now and in the future. We encourage our employees to express their authentic selves, bringing their unique experiences, skills, and perspectives to our table. We are pleased to report that in 2024:

Our unique position as aleading insurance group and employer of choicewas recognized in various awards and honors, including listing inForbes Best Midsize Employersand certification as aGreat Place to Work®for the fifth consecutive year.

We offeredthousands of learning, training, and professional development opportunitiesto enhance employees' individual and team strengths and help prepare them for future growth and leadership roles.

Our employees had regular opportunitiesto join cross-functional project teams thatadvance corporate initiatives, strengthen their business acumen and leadership skills,and build a collaborative culture.

2024 FINANCIALS

FORM 10-K

2024 ANNUAL REPORT

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Disclaimer

Selective Insurance Group Inc. published this content on March 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 26, 2025 at 21:46:19.950.