AM Best Affirms Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of the pooled members of Selective Insurance Group (Selective). Additionally, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IR) of the ultimate parent, Selective Insurance Group, Inc. [NASDAQ: SIGI]. The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Branchville, NJ. (Please see below for a detailed listing of companies and ratings.)

The ratings reflect Selective’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

Selective’s balance sheet strength is supported by its risk-adjusted capital position and the financial flexibility provided by its publicly traded parent, and is offset partially by exposure to catastrophe losses. While the company has experienced elevated level of catastrophe losses over the past few years, its underwriting results continue to outperform its peers. The group’s underwriting results have benefited from a low- to medium-hazard business mix, conservative underwriting philosophy and catastrophe risk mitigation initiatives. In addition, the group continues to implement various underwriting initiatives and targeted rate increases in its more-challenged commercial auto and personal lines books of business. The favorable business profile is based partly on the group’s close working relationship with its selected agencies, and the use of technology to enhance its underwriting and servicing capabilities.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed with stable outlooks for the pooled members of Selective Insurance Group:

• Selective Insurance Company of America

• Selective Way Insurance Company
  
• Selective Insurance Company of the Southeast

• Selective Insurance Company of New York

• Selective Insurance Company of South Carolina
• Selective Insurance Company of New England

• Selective Auto Insurance Company of New Jersey

• Mesa Underwriters Specialty Insurance Company

• Selective Casualty Insurance Company

• Selective Fire and Casualty Insurance Company

The following Long-Term IRs have been affirmed with stable outlooks:

Selective Insurance Group, Inc.—

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

--“a-” (Excellent) on $99.5 million 6.70% senior unsecured notes, due 2035

--“a-” (Excellent) on $294.4 million 5.375% senior unsecured notes, due 2049

The following indicative Long-Term IRs have been affirmed with stable outlooks on the current shelf registration:

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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Edin Imsirovic
Director

+1 908 882 1903

edin.imsirovic@ambest.com

Michael Lagomarsino, CFA, FRM

Senior Director

+1 908 882 1993

michael.lagomarsino@ambest.com

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best