10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2021

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 GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

New Jersey	22-2168890
(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)

973	948-3000
(Registrant’s Telephone Number, Including Area Code)
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common Stock, par value $2 per share	SIGI	The 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 value	SIGIP	The 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 ☐
Non-accelerated filer ☐		Smaller reporting company	☐
		Emerging growth 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 April 16, 2021, there were 60,024,254 shares of common stock, par value $2.00 per share, outstanding. 

	SELECTIVE INSURANCE GROUP, INC.
	Table of Contents
		Page No.
PART I.   FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of March 31, 2021 (Unaudited) and December 31, 2020	1
	Unaudited Consolidated Statements of Income for the Quarter Ended March 31, 2021 and 2020	2
	Unaudited Consolidated Statements of Comprehensive Income for the Quarter Ended March 31, 2021 and 2020	3
	Unaudited Consolidated Statements of Stockholders' Equity for the Quarter Ended March 31, 2021 and 2020	4
	Unaudited Consolidated Statements of Cash Flows for the Quarter Ended March 31, 2021 and 2020	5
	Notes to Unaudited Interim Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Forward-Looking Statements	22
	Introduction	22
	Critical Accounting Policies and Estimates	23
	Financial Highlights of Results for First Quarter 2021 and 2020	23
	Results of Operations and Related Information by Segment	25
	Federal Income Taxes	33
	Financial Condition, Liquidity, and Capital Resources	33
	Ratings	36
	Off-Balance Sheet Arrangements	36
	Contractual Obligations, Contingent Liabilities, and Commitments	36
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
PART II.  OTHER INFORMATION
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 6.	Exhibits	38
Signatures		38

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS	Unaudited
($ in thousands, except share amounts)	March 31, 2021		December 31, 2020
ASSETS
Investments:
Fixed income securities, held-to-maturity – at carrying value (fair value: $25,204 – 2021; $18,001 – 2020)	$	24,370	16,846
Less: allowance for credit losses	(26)		(22)
Fixed income securities, held-to-maturity, net of allowance for credit losses	24,344		16,824
Fixed income securities, available-for-sale – at fair value (allowance for credit losses: $8,781 – 2021 and $3,969 – 2020; amortized cost: $6,253,077 – 2021 and $6,073,517 – 2020)	6,521,641		6,455,928
Commercial mortgage loans – at carrying value (fair value: $62,233 – 2021 and $47,289 – 2020)	61,066		46,306
Less: allowance for credit losses	—		—
Commercial mortgage loans, net of allowance for credit losses	61,066		46,306
Equity securities – at fair value (cost:  $304,159 – 2021; $301,551 – 2020)	324,255		310,367
Short-term investments	337,807		409,852
Other investments	290,153		266,322
Total investments (Note 4 and 5)	7,559,266		7,505,599
Cash	488		394
Restricted cash	8,428		14,837
Interest and dividends due or accrued	46,072		45,004
Premiums receivable	916,196		857,014
Less: allowance for credit losses (Note 6)	(21,000)		(21,000)
Premiums receivable, net of allowance for credit losses	895,196		836,014
Reinsurance recoverable	582,696		589,269
Less: allowance for credit losses (Note 7)	(1,840)		(1,777)
Reinsurance recoverable, net of allowance for credit losses	580,856		587,492
Prepaid reinsurance premiums	168,575		170,531
Property and equipment – at cost, net of accumulated depreciation and amortization of: $245,844 – 2021; $240,150 – 2020	76,096		77,696
Deferred policy acquisition costs	302,652		288,578
Goodwill	7,849		7,849
Other assets	203,134		153,919
Total assets	$	9,848,612	9,687,913
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for loss and loss expense (Note 8)	$	4,360,188	4,260,355
Unearned premiums	1,689,533		1,618,271
Long-term debt	550,904		550,743
Current federal income tax	41,983		14,021
Deferred federal income tax	2,311		27,096
Accrued salaries and benefits	83,652		114,868
Other liabilities	375,996		363,670
Total liabilities	$	7,104,567	6,949,024
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 - 2021 and 2020
Common stock of $2 par value per share:
Authorized shares 360,000,000
Issued: 104,287,791 – 2021; 104,032,912 – 2020	208,576		208,066
Additional paid-in capital	446,410		438,985
Retained earnings	2,363,189		2,271,537
Accumulated other comprehensive income (Note 11)	134,600		220,186
Treasury stock – at cost (shares:  44,263,908 – 2021; 44,127,109 – 2020) (Note 12)	(608,730)		(599,885)
Total stockholders’ equity	$	2,744,045	2,738,889
Commitments and contingencies
Total liabilities and stockholders’ equity	$	9,848,612	9,687,913

See accompanying Notes to Consolidated Financial Statements.

1

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarter ended March 31,
($ in thousands, except per share amounts)	2021		2020
Revenues:
Net premiums earned	$	724,960	651,703
Net investment income earned	69,716		55,967
Net realized and unrealized investment gains (losses)	5,119		(44,666)
Other income	4,112		1,825
Total revenues	803,907		664,829
Expenses:
Loss and loss expense incurred	413,401		400,324
Amortization of deferred policy acquisition costs	149,051		136,501
Other insurance expenses	88,910		95,346
Interest expense	7,359		7,601
Corporate expenses	9,554		9,060
Total expenses	668,275		648,832
Income before federal income tax	135,632		15,997
Federal income tax expense:
Current	28,424		9,886
Deferred	(2,062)		(9,125)
Total federal income tax expense	26,362		761
Net income	$	109,270	15,236
Preferred stock dividends	2,453		—
Net income available to common stockholders	$	106,817	15,236
Earnings per common share:
Net income available to common stockholders - Basic	$	1.78	0.26
Net income available to common stockholders - Diluted	$	1.77	0.25

See accompanying Notes to Consolidated Financial Statements.

2

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	Quarter ended March 31,
($ in thousands)	2021		2020
Net income	$	109,270	15,236
Other comprehensive income (loss) ("OCI"), net of tax:
Unrealized losses on investment securities:
Unrealized holding losses arising during period	(81,613)		(74,245)
Unrealized losses on securities with credit loss recognized in earnings	(8,943)		(51,658)
Amounts reclassified into net income:
Held-to-maturity ("HTM") securities	(2)		20
Net realized losses on disposals and intent-to-sell available-for-sale ("AFS") securities	477		8,948
Credit loss expense	3,948		12,472
Total unrealized losses on investment securities	(86,133)		(104,463)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	547		596
Total defined benefit pension and post-retirement plans	547		596
Other comprehensive loss	(85,586)		(103,867)
Comprehensive income (loss)	$	23,684	(88,631)

See accompanying Notes to Consolidated Financial Statements.

3

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	Quarter ended March 31,
($ in thousands, except share and per share amounts)	2021		2020
Preferred stock:
Beginning of period	$	200,000	—
Issuance of preferred stock	—		—
End of period	200,000		—
Common stock:
Beginning of period	$	208,066	206,968
Dividend reinvestment plan	13		14
Stock purchase and compensation plans	497		683
End of period	208,576		207,665
Additional paid-in capital:
Beginning of period	438,985		418,521
Dividend reinvestment plan	429		408
Stock purchase and compensation plans	6,996		8,399
End of period	446,410		427,328
Retained earnings:
Beginning of period, as previously reported	2,271,537		2,080,529
Cumulative effect adjustment due to adoption of guidance on allowance for credit losses, net of tax	—		1,435
Balance at beginning of period, as adjusted	2,271,537		2,081,964
Net income	109,270		15,236
Dividends to preferred stockholders	(2,453)		—
Dividends to common stockholders	(15,165)		(13,860)
End of period	2,363,189		2,083,340
Accumulated other comprehensive income (loss) ("AOCI"):
Beginning of period	220,186		81,750
Other comprehensive loss	(85,586)		(103,867)
End of period	134,600		(22,117)
Treasury stock:
Beginning of period	(599,885)		(592,832)
Acquisition of treasury stock - share repurchase authorization	(3,404)		—
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans	(5,441)		(6,928)
End of period	(608,730)		(599,760)
Total stockholders’ equity	$	2,744,045	2,096,456
Dividends declared per preferred share	$	306.67	—
Dividends declared per common share	$	0.25	0.23
Preferred stock, shares outstanding:
Beginning of period	8,000		—
Issuance of preferred stock	—		—
End of period	8,000		—
Common stock, shares outstanding:
Beginning of period	59,905,803		59,461,153
Dividend reinvestment plan	6,420		6,975
Stock purchase and compensation plan	248,459		341,236
Acquisition of treasury stock - share repurchase authorization	(52,781)		—
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans	(84,018)		(101,819)
End of period	60,023,883		59,707,545

See accompanying Notes to Consolidated Financial Statements.

4

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS	Quarter ended March 31,
($ in thousands)	2021		2020
Operating Activities
Net income	$	109,270	15,236
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	13,703		15,415
Stock-based compensation expense	6,493		7,038
Undistributed gains of equity method investments	(13,905)		(5,602)
Distributions in excess of current year income of equity method investments	2,309		614
Net realized and unrealized (gains) losses	(5,119)		44,666
Loss on disposal of fixed assets	3		14
Changes in assets and liabilities:
Increase in reserve for loss and loss expense, net of reinsurance recoverable	106,468		49,077
Increase (decrease) in unearned premiums, net of prepaid reinsurance	73,218		(4,376)
Increase in net federal income taxes	25,927		276
(Increase) decrease in premiums receivable	(59,182)		25,572
(Increase) decrease in deferred policy acquisition costs	(14,074)		1,605
(Increase) decrease in interest and dividends due or accrued	(1,101)		880
Decrease in accrued salaries and benefits	(31,216)		(52,722)
(Increase) decrease in other assets	(14,302)		4,583
Decrease in other liabilities	(68,236)		(62,959)
Net cash provided by operating activities	130,256		39,317
Investing Activities
Purchase of fixed income securities, held-to-maturity	(9,000)		—
Purchase of fixed income securities, available-for-sale	(671,909)		(319,539)
Purchase of commercial mortgage loans	(14,860)		(14,096)
Purchase of equity securities	(48,910)		(45,511)
Purchase of other investments	(18,589)		(27,433)
Purchase of short-term investments	(1,723,212)		(2,086,599)
Sale of fixed income securities, available-for-sale	212,891		101,671
Proceeds from commercial mortgage loans	99		—
Sale of short-term investments	1,795,239		1,851,532
Redemption and maturities of fixed income securities, held-to-maturity	1,461		405
Redemption and maturities of fixed income securities, available-for-sale	319,469		227,686
Sale of equity securities	42,782		1,320
Sale of other investments	3,004		—
Distributions from other investments	5,162		3,152
Purchase of property and equipment	(4,561)		(8,416)
Net cash used in investing activities	(110,934)		(315,828)
Financing Activities
Dividends to preferred stockholders	(2,453)		—
Dividends to common stockholders	(14,569)		(13,313)
Acquisition of treasury stock	(8,845)		(6,928)
Net proceeds from stock purchase and compensation plans	824		1,525
Preferred stock issued, net of issuance costs	(479)		—
Proceeds from borrowings	—		387,000
Repayments of borrowings	—		(85,000)
Repayments of finance lease obligations	(115)		(142)
Net cash (used in) provided by financing activities	(25,637)		283,142
Net (decrease) increase in cash and restricted cash	(6,315)		6,631
Cash and restricted cash, beginning of year	15,231		7,975
Cash and restricted cash, end of period	$	8,916	14,606

See accompany Notes to 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 U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. These require us 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 between the Parent and its subsidiaries 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 first quarters ended March 31, 2021 (“First Quarter 2021”) and March 31, 2020 (“First Quarter 2020”). Our Financial Statements do not include all information and disclosures required by GAAP and the SEC for audited annual financial statements. Because results of operations for any interim period are not necessarily indicative of results for a full year, our Financial Statements should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”) filed with the SEC.

NOTE 2. Adoption of Accounting Pronouncements 

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). Among other items, ASU 2019-12 simplifies the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. ASU 2019-12 provides that all effects of a tax law change, including adjustment of the estimated annual effective tax rate, are recognized in the period of enactment.

For year-to-date losses in interim periods, an entity is required currently to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. When an interim period loss exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this limitation and an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate.

We adopted this guidance on January 1, 2021, and it did not have a material impact to our financial condition, cash flows, or results of operations.

Pronouncements to be effective in the future

In March 2020, the FASB issued 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 guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected 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, 2022. We are currently evaluating the impact of this guidance on our financial condition and results of operations.

6

NOTE 3. Statements of Cash Flows

Supplemental cash flow information was as follows:

	Quarter ended March 31,
($ in thousands)	2021		2020
Cash paid during the period for:
Interest	$	8,722	8,854
Federal income tax	—		—
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,226		2,130
Operating cash flows from financing leases	2		6
Financing cash flows from finance leases	115		142
Non-cash items:
Corporate actions related to fixed income securities, AFS1	26,085		8,040
Corporate actions related to fixed income securities, HTM1	—		2,596
Assets acquired under finance lease arrangements	183		29
Assets acquired under operating lease arrangements	16		3,828
Non-cash purchase of property and equipment	3		5

1Examples of corporate actions include 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)	March 31, 2021		December 31, 2020
Cash	$	488	394
Restricted cash	8,428		14,837
Total cash and restricted cash shown in the Statements of Cash Flows	$	8,916	15,231

Amounts included in restricted cash represent cash received from the National Flood Insurance Program ("NFIP"), which is restricted to pay flood claims under the Write Your Own program.

NOTE 4. Investments

(a) Information about our AFS securities as of March 31, 2021, and December 31, 2020, is as follows:

March 31, 2021
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	134,725	—	3,653	(2,104)	136,274
Foreign government	18,920		(56)	974	(136)	19,702
Obligations of states and political subdivisions	1,140,442		(201)	74,212	(360)	1,214,093
Corporate securities	2,239,066		(6,166)	122,761	(9,870)	2,345,791
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	1,188,670		(1,470)	18,917	(4,052)	1,202,065
Residential mortgage-backed securities ("RMBS")	906,266		(864)	43,367	(1,229)	947,540
Commercial mortgage-backed securities ("CMBS")	624,988		(24)	33,590	(2,378)	656,176
Total AFS fixed income securities	$	6,253,077	(8,781)	297,474	(20,129)	6,521,641

December 31, 2020
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	110,038	—	6,239	(137)	116,140
Foreign government	16,801		(1)	1,569	(3)	18,366
Obligations of states and political subdivisions	1,159,588		(4)	87,564	(11)	1,247,137
Corporate securities	2,152,203		(2,782)	180,971	(2,340)	2,328,052
CLO and other ABS	1,014,820		(592)	20,166	(7,843)	1,026,551
RMBS	999,485		(561)	53,065	(201)	1,051,788
CMBS	620,582		(29)	48,348	(1,007)	667,894
Total AFS fixed income securities	$	6,073,517	(3,969)	397,922	(11,542)	6,455,928

7

The following tables provide a roll forward of the allowance for credit losses on our AFS fixed income securities for the periods indicated:

Quarter ended March 31, 2021
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	1	56	(1)	—	—	56
Obligations of states and political subdivisions	4		186	11	—	—	201
Corporate securities	2,782		4,058	(527)	(147)	—	6,166
CLO and other ABS	592		1,001	(106)	(17)	—	1,470
RMBS	561		356	(39)	(14)	—	864
CMBS	29		10	(15)	—	—	24
Total AFS fixed income securities	$	3,969	5,667	(677)	(178)	—	8,781

Quarter ended March 31, 2020
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	—	21	—	—	—	21
Obligations of states and political subdivisions	—		29	—	—	—	29
Corporate securities	—		13,412	—	—	—	13,412
CLO and other ABS	—		1,565	—	—	—	1,565
RMBS	—		722	—	—	—	722
CMBS	—		38	—	—	—	38
Total AFS fixed income securities	$	—	15,787	—	—	—	15,787

For information on our methodology and significant inputs used to measure the amount related to credit loss, 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 2020 Annual Report. Accrued interest on AFS securities was $44.7 million as of March 31, 2021, and $43.8 million as of December 31, 2020. We did not record any write-offs during 2021 or 2020.

(b) Quantitative information about unrealized losses on our AFS portfolio is provided below.

March 31, 2021	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	53,796	(2,104)	—	—	53,796	(2,104)
Foreign government	3,313		(136)	—	—	3,313	(136)
Obligations of states and political subdivisions	18,838		(352)	369	(8)	19,207	(360)
Corporate securities	306,052		(8,560)	14,025	(1,310)	320,077	(9,870)
CLO and other ABS	282,939		(1,737)	105,261	(2,315)	388,200	(4,052)
RMBS	76,684		(1,229)	—	—	76,684	(1,229)
CMBS	70,510		(2,089)	23,474	(289)	93,984	(2,378)
Total AFS fixed income securities	$	812,132	(16,207)	143,129	(3,922)	955,261	(20,129)

December 31, 2020	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	11,519	(137)	—	—	11,519	(137)
Foreign government	1,122		(3)	—	—	1,122	(3)
Obligations of states and political subdivisions	2,223		(11)	—	—	2,223	(11)
Corporate securities	65,187		(2,152)	2,400	(188)	67,587	(2,340)
CLO and other ABS	261,746		(2,995)	165,661	(4,848)	427,407	(7,843)
RMBS	18,227		(194)	1,181	(7)	19,408	(201)
CMBS	55,482		(616)	16,093	(391)	71,575	(1,007)
Total AFS fixed income securities	$	415,506	(6,108)	185,335	(5,434)	600,841	(11,542)

8

We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. The increase in gross unrealized losses during First Quarter 2021 was driven by a significant increase in longer-dated benchmark United States Treasury rates, offset in part by tightening credit spreads as a result of reduced uncertainty in the marketplace. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" of our 2020 Annual Report, we have concluded that no allowance for credit loss is required on these balances. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral.

(c) Fixed income securities at March 31, 2021 are summarized below by contractual maturity. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. 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. 

	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	453,772	1,057	1,065
Due after one year through five years	3,400,223		14,433	15,325
Due after five years through 10 years	2,043,563		8,854	8,814
Due after 10 years	624,083		—	—
Total fixed income securities	$	6,521,641	24,344	25,204

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

Other Investments	March 31, 2021				December 31, 2020
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	182,032	104,070	286,102	157,276	100,905	258,181
Private credit	56,819		98,072	154,891	54,017	98,330	152,347
Real assets	19,689		15,891	35,580	19,659	16,493	36,152
Total alternative investments	258,540		218,033	476,573	230,952	215,728	446,680
Other securities	31,613		—	31,613	35,370	—	35,370
Total other investments	$	290,153	218,033	508,186	266,322	215,728	482,050

1The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant.

We are contractually committed to make additional investments up to the remaining commitments stated above, but we do not have a future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2021 or 2020.

The following table shows gross summarized financial information for our other investments portfolio, including the portion we do not own. The majority of these investments are carried under the equity method of accounting and report results to us on a one-quarter lag. The following table provides (i) the gross summarized financial statement information for these investments for the three-months ended December 31, and (ii) the portion of these results that are included in our First Quarter results:

Income Statement Information	Quarter ended March 31,
($ in millions)	2021		2020
Net investment income	$	481.6	12.7
Realized gains	776.0		164.8
Net change in unrealized appreciation	4,630.8		1,204.0
Net income	$	5,888.4	1,381.5
Insurance Subsidiaries’ alternative investments income	$	20.2	6.3

9

(e) Certain Insurance Subsidiaries, as members of the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"), have pledged certain AFS fixed income securities as collateral. Additionally, to comply with insurance laws, certain Insurance Subsidiaries have deposited certain securities with various state and regulatory agencies at March 31, 2021. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at March 31, 2021:

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	21.0	21.0
Obligations of states and political subdivisions	—		—	5.0	5.0
RMBS	93.7		155.5	—	249.2
CMBS	6.9		35.1	—	42.0
Total pledged as collateral	$	100.6	190.6	26.0	317.2

(f) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government-backed investments, as of March 31, 2021, or December 31, 2020.

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

	Quarter ended March 31,
($ in thousands)	2021		2020
Fixed income securities	$	52,823	50,253
Commercial mortgage loans ("CMLs")	514		62
Equity securities	2,488		1,552
Short-term investments	85		1,166
Other investments	17,433		6,342
Investment expenses	(3,627)		(3,408)
Net investment income earned	$	69,716	55,967

The increase in net investment income earned in First Quarter 2021 compared to First Quarter 2020 was driven by the alternative investments in our other investments portfolio, and it reflects the improvement in the equity markets in the fourth quarter of 2020 as our results on these holdings are recorded on a one-quarter lag.

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

	Quarter ended March 31,
($ in thousands)	2021		2020
Gross gains on sales	$	3,676	5,676
Gross losses on sales	(4,471)		(1,576)
Net realized gains (losses) on disposals	(795)		4,100
Net unrealized gains (losses) on equity securities	11,280		(17,137)
Net credit loss expense on fixed income securities, AFS	(4,997)		(15,787)
Net credit loss expense on fixed income securities, HTM	(7)		—
Net credit loss expense on CMLs	—		(240)
Losses on securities for which we have the intent to sell	(362)		(15,602)
Net realized and unrealized gains (losses)	$	5,119	(44,666)

Unrealized gains (losses) recognized in income on equity securities, as reflected in the table above, include the following:

	Quarter ended March 31,
($ in thousands)	2021		2020
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at March 31, 2021	$	10,097	(17,140)
On securities sold during period	1,183		3
Total unrealized gains (losses) recognized in income on equity securities	$	11,280	(17,137)

The improvement in net realized and unrealized gains was primarily driven by (i) unrealized gains on our equity securities compared to unrealized losses last year, which were driven by COVID-19-related market disruption, and (ii) lower intent-to-sell losses as we provided our investment managers significant trading flexibility last year given market conditions.

10

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 estimated fair values of our financial liabilities as of March 31, 2021, and December 31, 2020:

	March 31, 2021			December 31, 2020
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	49,915		60,613	49,914	66,148
6.70% Senior Notes	99,504		119,818	99,499	127,886
5.375% Senior Notes	294,263		347,155	294,241	383,669
1.61% borrowings from FHLBNY	25,000		25,107	25,000	25,182
1.56% borrowings from FHLBNY	25,000		25,127	25,000	25,198
3.03% borrowings from FHLBI	60,000		65,337	60,000	67,513
Subtotal long-term debt	553,682		643,157	553,654	695,596
Unamortized debt issuance costs	(3,355)			(3,419)
Finance lease obligations	577			508
Total long-term debt	$	550,904		550,743

For a discussion of the fair value hierarchy and techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at March 31, 2021, and December 31, 2020:

March 31, 2021			Fair Value Measurements Using
($ in thousands)	Assets  Measured at  Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1	Significant Other  Observable Inputs  (Level 2)1	Significant Unobservable  Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	136,274	58,540	77,734	—
Foreign government	19,702		—	19,702	—
Obligations of states and political subdivisions	1,214,093		—	1,206,197	7,896
Corporate securities	2,345,791		—	2,256,469	89,322
CLO and other ABS	1,202,065		—	1,137,176	64,889
RMBS	947,540		—	947,540	—
CMBS	656,176		—	656,176	—
Total AFS fixed income securities	6,521,641		58,540	6,300,994	162,107
Equity securities:
Common stock1	322,557		269,017	—	—
Preferred stock	1,698		1,698	—	—
Total equity securities	324,255		270,715	—	—
Short-term investments	337,807		337,075	732	—
Total assets measured at fair value	$	7,183,703	666,330	6,301,726	162,107

11

December 31, 2020			Fair Value Measurements Using
($ in thousands)	Assets  Measured at  Fair Value		Quoted Prices in  Active Markets for Identical Assets/Liabilities (Level 1)1	Significant Other Observable Inputs  (Level 2)1	Significant Unobservable Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	116,140	40,960	75,180	—
Foreign government	18,366		—	18,366	—
Obligations of states and political subdivisions	1,247,137		—	1,244,243	2,894
Corporate securities	2,328,052		—	2,257,352	70,700
CLO and other ABS	1,026,551		—	970,176	56,375
RMBS	1,051,788		—	1,051,788	—
CMBS	667,894		—	667,894	—
Total AFS fixed income securities	6,455,928		40,960	6,284,999	129,969
Equity securities:
Common stock1	308,632		261,846	—	—
Preferred stock	1,735		1,735	—	—
Total equity securities	310,367		263,581	—	—
Short-term investments	409,852		405,400	4,452	—
Total assets measured at fair value	$	7,176,147	709,941	6,289,451	129,969

1Investments amounting to $53.5 million at March 31, 2021, and $46.8 million at December 31, 2020, were measured at fair value using net asset value per share (or its practical expedient) and are not 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 presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

The following table provides a summary of Level 3 changes in First Quarter 2021 and First Quarter 2020:

March 31, 2021
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	Total
Fair value, December 31, 2020	$	2,894	70,700	56,375	129,969
Total net (losses) gains for the period included in:
OCI	(99)		(2,388)	(1,116)	(3,603)
Net realized and unrealized (losses) gains	—		(91)	(143)	(234)
Net investment income earned	—		1	3	4
Purchases	—		21,100	10,672	31,772
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		—	(412)	(412)
Transfers into Level 3	5,101		—	—	5,101
Transfers out of Level 3	—		—	(490)	(490)
Fair value, March 31, 2021	7,896		89,322	64,889	162,107
Change in unrealized (losses) gains for the period included in earnings for assets held at period end	—		(91)	(143)	(234)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	(99)		(2,388)	(1,116)	(3,603)

12

March 31, 2020
($ in thousands)	Obligation of state and Political Subdivisions		Corporate Securities	CLO and Other ABS	Total
Fair value, December 31, 2019	$	—	17,051	17,034	34,085
Total net (losses) gains for the period included in:
OCI	—		1	(1,756)	(1,755)
Net realized and unrealized (losses) gains	—		(61)	(214)	(275)
Net investment income earned	—		—	—	—
Purchases	—		3,002	4,831	7,833
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		—	—	—
Transfers into Level 3	2,890		4,192	20,107	27,189
Transfers out of Level 3	—		—	(3,630)	(3,630)
Fair value, March 31, 2020	$	2,890	24,185	36,372	63,447
Change in unrealized gains (losses) for the period included in earnings for assets held at period end	—		(61)	(214)	(275)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	—		1	(1,756)	(1,755)

The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at March 31, 2021, and December 31, 2020:

March 31, 2021			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	$	4,738	—	4,738	—
Corporate securities	20,466		—	20,466	—
Total HTM fixed income securities	$	25,204	—	25,204	—
CMLs	$	62,233	—	—	62,233
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	60,613	—	60,613	—
6.70% Senior Notes	119,818		—	119,818	—
5.375% Senior Notes	347,155		—	347,155	—
1.61% borrowings from FHLBNY	25,107		—	25,107	—
1.56% borrowings from FHLBNY	25,127		—	25,127	—
3.03% borrowings from FHLBI	65,337		—	65,337	—
Total long-term debt	$	643,157	—	643,157	—

13

December 31, 2020			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	$	4,795	—	4,795	—
Corporate securities	13,206		—	13,206	—
Total HTM fixed income securities	$	18,001	—	18,001	—
CMLs	$	47,289	—	—	47,289
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	66,148	—	66,148	—
6.70% Senior Notes	127,886		—	127,886	—
5.375% Senior Notes	383,669		—	383,669	—
1.61% borrowings from FHLBNY	25,182		—	25,182	—
1.56% borrowings from FHLBNY	25,198		—	25,198	—
3.03% borrowings from FHLBI	67,513		—	67,513	—
Total long-term debt	$	695,596	—	695,596	—

NOTE 6. Allowance for Uncollectible Premiums Receivable

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

	Quarter ended March 31,
($ in thousands)	2021		2020
Balance at beginning of period	$	21,000	$	6,400
Cumulative effect adjustment1	—		1,058
Balance at beginning of period, as adjusted	$	21,000	$	7,458
Current period provision for expected credit losses	808		11,195
Write-offs charged against the allowance for credit losses	(874)		(653)
Recoveries	66		—
Allowance for credit losses, end of period	$	21,000	$	18,000

1Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

In First Quarter 2020, we recognized an additional allowance for credit losses of $10.5 million, net of write-offs and recoveries. We based this increase on an evaluation of the recoverability of our premiums receivable in light of (i) the billing accommodations we announced during the first quarter of 2020 and (ii) the impact of certain state regulations that provided for deferral of payments without cancellation for a period up to 90 days and increased earned but uncollected premiums. The billing accommodations included individualized payment flexibility and suspending the effect of policy cancellations, late payment notices, and late or reinstatement fees. The heightened credit risk experienced in 2020 that resulted in the allowance for credit losses being increased to $21.0 million in the second quarter of 2020 returned to pre-COVID-19 levels in 2021, and our allowance for credit losses has remained at $21.0 million, which is consistent with the reserve as of December 31, 2020. The existing allowance is expected to absorb anticipated write-offs that will occur over the corresponding collections cycle, which could last more than a year.

14

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 March 31, 2021, and December 31, 2020:

	March 31, 2021
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers1
A++	$	37,939	$	108	$	38,047
A+	352,386		4,032		356,418
A	105,068		387		105,455
A-	2,177		—		2,177
B++	117		264		381
B+	—		—		—
Total rated reinsurers	$	497,687	$	4,791	$	502,478
Non-rated reinsurers
Federal and state pools	$	76,179	$	—	$	76,179
Other than federal and state pools	3,179		860		4,039
Total non-rated reinsurers	$	79,358	$	860	$	80,218
Total reinsurance recoverable, gross	$	577,045	$	5,651	$	582,696
Less: allowance for credit losses2					(1,840)
Total reinsurance recoverable, net					$	580,856

1Credit ratings as of March 31, 2021.

2Represents our current expectation of credit losses on total current and past due reinsurance recoverables, and is not identifiable by reinsurer.

	December 31, 2020
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers1
A++	$	37,464	$	102	$	37,566
A+	354,846		2,452		357,298
A	105,652		415		106,067
A-	2,139		—		2,139
B++	56		324		380
B+	—		—		—
Total rated reinsurers	$	500,157	$	3,293	$	503,450
Non-rated reinsurers
Federal and state pools	$	82,575	$	—	$	82,575
Other than federal and state pools	2,676		568		3,244
Total non-rated reinsurers	$	85,251	$	568	$	85,819
Total reinsurance recoverable, gross	$	585,408	$	3,861	$	589,269
Less: allowance for credit losses2					(1,777)
Total reinsurance recoverable, net					$	587,492

For a discussion of the methodology used to evaluate our estimate of expected credit losses, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.

15

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

($ in thousands)	Quarter ended March 31,
	2021		2020
Balance at beginning of period	$	1,777	$	4,400
Cumulative effect adjustment1	—		(2,903)
Balance at beginning of period, as adjusted	$	1,777	$	1,497
Current period provision for expected credit losses	63		5
Write-offs charged against the allowance for credit losses	—		—
Recoveries	—		—
Allowance for credit losses, end of period	$	1,840	1,502

1Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information about reinsurance, refer to Note 9. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report.

	Quarter ended March 31,
($ in thousands)	2021		2020
Premiums written:
Direct	$	908,774	746,431
Assumed	5,533		6,043
Ceded	(116,129)		(105,147)
Net	$	798,178	647,327
Premiums earned:
Direct	$	837,369	754,892
Assumed	5,676		6,173
Ceded	(118,085)		(109,362)
Net	$	724,960	651,703
Loss and loss expenses incurred:
Direct	$	441,507	425,795
Assumed	3,447		4,898
Ceded	(31,553)		(30,369)
Net	$	413,401	400,324

Direct premiums written ("DPW") increased $162 million, or 22%, in First Quarter 2021 compared to First Quarter 2020. The increase included 11 percentage points from the $75 million return audit and mid-term endorsement premium accrual that was recorded in First Quarter 2020, resulting in remaining growth of $87 million in First Quarter 2021. This accrual reflected lower exposure levels, which determine the premium we charge, attributable to the economic impacts of the COVID-19 pandemic and the anticipated decline in sales and payroll exposures on the general liability and workers compensation lines of business.

Ceded premiums written, ceded premiums earned, and ceded loss and loss expenses incurred related to our participation in the NFIP, to which we cede 100% of our flood premiums, losses, and loss expenses, were as follows:

Ceded to NFIP	Quarter ended March 31,
($ in thousands)	2021		2020
Ceded premiums written	$	(65,742)	(62,087)
Ceded premiums earned	(67,519)		(66,861)
Ceded loss and loss expenses incurred	(2,207)		(5,096)

16

NOTE 8. Reserve for Loss and Loss Expense

The table below provides a roll forward of reserve for loss and loss expense balances:

	Quarter ended March 31,
($ in thousands)	2021		2020
Gross reserve for loss and loss expense, at beginning of year	$	4,260,355	4,067,163
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year1	554,269		547,066
Net reserve for loss and loss expense, at beginning of year	3,706,086		3,520,097
Incurred loss and loss expense for claims occurring in the:
Current year	447,170		407,276
Prior years	(33,769)		(6,952)
Total incurred loss and loss expense	413,401		400,324
Paid loss and loss expense for claims occurring in the:
Current year	80,158		70,610
Prior years	243,687		281,736
Total paid loss and loss expense	323,845		352,346
Net reserve for loss and loss expense, at end of period	3,795,642		3,568,075
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	564,546		535,560
Gross reserve for loss and loss expense at end of period	$	4,360,188	4,103,635

1First Quarter 2020 includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

Prior year reserve development in First Quarter 2021 was favorable by $33.8 million, which included $35.0 million of casualty reserve development that was partially offset by $1.2 million of unfavorable property reserve development. The favorable casualty reserve development included $15.0 million of development in our workers compensation lines of business, $15.0 million in our general liability line of business, and $5.0 million in our Excess and Surplus ("E&S") casualty lines of business.

Prior year reserve development in First Quarter 2020 was favorable by $7.0 million and included $10.0 million of favorable casualty reserve development in our workers compensation line of business that was partially offset by $3.0 million of unfavorable property reserve development.

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 before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and 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, which are not included in non-GAAP operating income, are also included in our Investment segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses, nor do we allocate assets.

17

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

Revenue by Segment	Quarter ended March 31,
($ in thousands)	2021		2020
Standard Commercial Lines:
Net premiums earned:
Commercial property	$	102,810	93,869
Workers compensation	78,190		66,706
General liability	193,520		164,580
Commercial automobile	171,881		149,690
Businessowners' policies	28,627		27,036
Bonds	8,593		9,639
Other	5,520		5,060
Miscellaneous income	3,707		1,391
Total Standard Commercial Lines revenue	592,848		517,971
Standard Personal Lines:
Net premiums earned:
Personal automobile	41,393		42,487
Homeowners	30,598		31,490
Other	1,830		2,151
Miscellaneous income	405		434
Total Standard Personal Lines revenue	74,226		76,562
E&S Lines:
Net premiums earned:
Casualty lines	43,833		44,072
Property lines	18,165		14,923
Total E&S Lines revenue	61,998		58,995
Investments:
Net investment income	69,716		55,967
Net realized and unrealized investment gains (losses)	5,119		(44,666)
Total Investments revenue	74,835		11,301
Total revenues	$	803,907	664,829

Income Before and After Federal Income Tax	Quarter ended March 31,
($ in thousands)	2021			2020
Standard Commercial Lines:
Underwriting gain, before federal income tax	$	69,499		17,126
Underwriting gain, after federal income tax	54,904			13,529
Combined ratio	88.2		%	96.7
ROE contribution	8.6			2.4
Standard Personal Lines:
Underwriting gain, before federal income tax	$	7,695		387
Underwriting gain, after federal income tax	6,079			306
Combined ratio	89.6		%	99.5
ROE contribution	1.0			0.1
E&S Lines:
Underwriting gain, before federal income tax	$	516		3,844
Underwriting gain, after federal income tax	408			3,037
Combined ratio	99.2		%	93.5
ROE contribution	0.1			0.6
Investments:
Net investment income	$	69,716		55,967
Net realized and unrealized investment gains (losses)	5,119			(44,666)
Total investment segment income, before federal income tax	74,835			11,301
Tax on investment segment income	14,448			1,104
Total investment segment income, after federal income tax	$	60,387		10,197
ROE contribution of after-tax net investment income	8.9			8.5

18

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended March 31,
($ in thousands)	2021		2020
Underwriting gain
Standard Commercial Lines	$	69,499	17,126
Standard Personal Lines	7,695		387
E&S Lines	516		3,844
Investment income	74,835		11,301
Total all segments	152,545		32,658
Interest expense	(7,359)		(7,601)
Corporate expenses	(9,554)		(9,060)
Income, before federal income tax	$	135,632	15,997
Preferred stock dividends	(2,453)		—
Income available to common stockholders, before federal income tax	$	133,179	15,997

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”). Selective Insurance Company of America ("SICA") also sponsors the Supplemental Excess Retirement Plan (the “Excess Plan”) and a life insurance benefit plan. All plans are closed to new entrants, and benefits ceased accruing under the Pension Plan and the Excess Plan after March 31, 2016. For more information about SICA's retirement plans, see Note 15. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report.

The following tables provide information about the Pension Plan:

	Pension Plan
	Quarter ended March 31,
($ in thousands)	2021		2020
Net Periodic Pension Cost (Benefit):
Interest cost	$	2,148	2,828
Expected return on plan assets	(5,744)		(5,477)
Amortization of unrecognized net actuarial loss	625		704
Total net periodic pension cost (benefit)1	$	(2,971)	(1,945)

1 The 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.

	Pension Plan
	Quarter ended March 31,
	2021		2020
Weighted-Average Expense Assumptions:
Discount rate	2.68	%	3.33	%
Effective interest rate for calculation of interest cost	2.06		2.95
Expected return on plan assets	5.40		5.80

19

NOTE 11. Comprehensive Income

The following are the components of comprehensive income, both gross and net of tax, for First Quarter 2021 and 2020:

First Quarter 2021
($ in thousands)	Gross		Tax	Net
Net income	$	135,632	26,362	109,270
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(103,308)		(21,695)	(81,613)
Unrealized losses on securities with credit loss recognized in earnings	(11,320)		(2,377)	(8,943)
Amounts reclassified into net income:
HTM securities	(2)		—	(2)
Net realized losses on disposals and losses on intent-to-sell AFS securities	604		127	477
Credit loss expense	4,997		1,049	3,948
Total unrealized losses on investment securities	(109,029)		(22,896)	(86,133)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	693		146	547
Total defined benefit pension and post-retirement plans	693		146	547
Other comprehensive loss	(108,336)		(22,750)	(85,586)
Comprehensive income	$	27,296	3,612	23,684
First Quarter 2020
($ in thousands)	Gross		Tax	Net
Net income	$	15,997	761	15,236
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(93,981)		(19,736)	(74,245)
Unrealized losses on securities with credit loss recognized in earnings	(65,390)		(13,732)	(51,658)
Amounts reclassified into net income:
HTM securities	25		5	20
Net realized losses on disposals and losses on intent-to-sell AFS securities	11,327		2,379	8,948
Credit loss expense	15,787		3,315	12,472
Total unrealized losses on investment securities	(132,232)		(27,769)	(104,463)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	754		158	596
Total defined benefit pension and post-retirement plans	754		158	596
Other comprehensive loss	(131,478)		(27,611)	(103,867)
Comprehensive loss	$	(115,481)	(26,850)	(88,631)

The following are the balances and changes in each component of AOCI (net of taxes) as of March 31, 2021:

March 31, 2021						Defined Benefit Pension and Post-Retirement Plans
	Net Unrealized (Losses) Gains on Investment Securities						Total AOCI
($ in thousands)	Credit Loss Related1		HTM Related	All Other	Investments Subtotal
Balance, December 31, 2020	$	(2,546)	6	307,790	305,250	(85,064)	220,186
OCI before reclassifications	(8,943)		—	(81,613)	(90,556)	—	(90,556)
Amounts reclassified from AOCI	3,948		(2)	477	4,423	547	4,970
Net current period OCI	(4,995)		(2)	(81,136)	(86,133)	547	(85,586)
Balance, March 31, 2021	$	(7,541)	4	226,654	219,117	(84,517)	134,600

1Represents change in unrealized loss on securities with credit loss recognized in earnings.

20

The reclassifications out of AOCI were as follows:

	Quarter ended March 31,			Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2021		2020
HTM related
Unrealized (gains) losses on HTM disposals	$	—	1	Net realized and unrealized investment gains (losses)
Amortization of net unrealized (gains) losses on HTM securities	(2)		24	Net investment income earned
	(2)		25	Income before federal income tax
	—		(5)	Total federal income tax expense
	(2)		20	Net income
Net realized losses on disposals and intent-to-sell AFS securities
Net realized losses on disposals and intent-to-sell AFS securities	604		11,327	Net realized and unrealized investment gains (losses)
	604		11,327	Income before federal income tax
	(127)		(2,379)	Total federal income tax expense
	477		8,948	Net income
Credit loss related
Credit loss expense	4,997		15,787	Net realized and unrealized investment gains (losses)
	4,997		15,787	Income before federal income tax
	(1,049)		(3,315)	Total federal income tax expense
	3,948		12,472	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	159		162	Loss and loss expense incurred
	534		592	Other insurance expenses
Total defined benefit pension and post-retirement life	693		754	Income before federal income tax
	(146)		(158)	Total federal income tax expense
	547		596	Net income
Total reclassifications for the period	$	4,970	22,036	Net income

NOTE 12. Equity

On December 2, 2020, we announced our Board of Directors authorized a $100 million share repurchase program, which has no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock, and the repurchase program may be suspended or discounted at any time at our discretion. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion based on market conditions and other considerations. As of March 31, 2021, 52,781 shares were repurchased under the share repurchase program at a total cost of $3.4 million, and we have $96.6 million of remaining capacity under our share repurchase program.

NOTE 13. Litigation

As of March 31, 2021, 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 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 through the establishment of unpaid loss and loss expense reserves. In ordinary course claims litigation, we expect that any potential ultimate liability, after consideration of provisions made for potential losses and costs of defense, will not be material to our consolidated financial condition, results of operations, or cash flows.

All of our commercial property and businessowners' policies require direct physical loss of or damage to property by a covered cause of loss. It also is our practice to include in, or attach to, all standard lines commercial property and businessowners' policies an exclusion that states that 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 also is the subject of first-party coverage litigation against some insurers, including us. We cannot predict the outcome of litigation over these two coverage issues, including interpretation of provisions similar or identical to those in our insurance policies.

21

From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some of which assert claims for substantial amounts. Plaintiffs may style these actions as putative class actions and seek judicial certification of a state or national class for allegations involving our business practices, such as improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies or improper reimbursement for automobile parts. Similarly, our Insurance Subsidiaries can be named in individual actions seeking extra-contractual damages, punitive damages, or penalties, often alleging bad faith in the handling of insurance claims. We believe that we have valid defenses to these allegations and we account for such activity through the establishment of unpaid loss and loss expense reserves. In these other legal actions, we expect that any potential ultimate liability, after consideration of provisions made for estimated losses, will not be material to our consolidated financial condition. Nonetheless, litigation outcomes are inherently unpredictable and, because the amounts sought in certain of these actions are large or indeterminate, it is possible that any adverse outcomes could 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. In this Quarterly Report on Form 10-Q, we discuss and make statements about our intentions, beliefs, current expectations, and projections for our future operations and performance. Such statements are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements often are identified by words such as “anticipates,” “believes,” “expects,” “will,” “should,” and “intends” and their negatives. We caution prospective investors that forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in our future performance. Factors that could cause actual results to differ materially from those indicated in forward-looking statements include, without limitation, those discussed in Item 1A. “Risk Factors.” in Part II. “Other Information” of this Form 10-Q. Our stated risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors emerge from time to time. We can neither predict such new risk factors nor can we assess the impact, if any, such new risk factors may have on our businesses or the extent to which any factor or combination of factors may cause actual results to differ materially from those expressed or implied in any forward-looking statement. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this report might not occur. We make forward-looking statements based on currently available information and assume no obligation, other than as may be required under the federal securities laws, to publicly update or revise any forward-looking statements for any reason.

Introduction

We classify our business into four reportable segments:

•Standard Commercial Lines;

•Standard Personal Lines;

•E&S Lines; and

•Investments.

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, 2020 ("2020 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 ("WYO"). We write our E&S products through another subsidiary, Mesa Underwriters Specialty Insurance Company, which provides us with 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 the consolidated results of operations and financial condition, as well as known 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 2020 Annual Report filed with the U.S. Securities and Exchange Commission.

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

•Critical Accounting Policies and Estimates;

22

•Financial Highlights of Results for the first quarters ended March 31, 2021 (“First Quarter 2021”) and March 31, 2020 (“First Quarter 2020”);

•Results of Operations and Related Information by Segment;

•Federal Income Taxes;

•Financial Condition, Liquidity, and Capital Resources;

•Ratings;

•Off-Balance Sheet Arrangements; and

•Contractual Obligations, Contingent Liabilities, and Commitments.

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 2020 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; (iii) reinsurance; (iv) allowance for credit losses on premiums receivable, and (v) the accrual for auditable premium. These estimates and judgments require the use of assumptions about matters that are highly uncertain, and therefore are 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. We have made no material changes in the critical accounting policies and estimates disclosed on pages 37 through 46 of our 2020 Annual Report.

Financial Highlights of Results for First Quarter 2021 and First Quarter 20201

($ and shares in thousands, except per share amounts)	Quarter ended March 31,				Change % or Points
	2021			2020
Financial Data:
Revenues	$	803,907		664,829	21	%
After-tax net investment income	56,343			45,483	24
After-tax underwriting income	61,391			16,872	264
Net income before federal income tax	135,632			15,997	748
Net income	109,270			15,236	617
Net income available to common stockholders	106,817			15,236	601
Key Metrics:
Combined ratio	89.3		%	96.7	(7.4)	pts
Invested assets per dollar of common stockholders' equity	$	2.97		3.26	(9)	%
Annualized return on common equity ("ROE")	16.8			2.8	14.0	pts
Statutory premiums to surplus ratio	1.33		x	1.38	(0.05)
Per Common Share Amounts:
Diluted net income per share	$	1.77		0.25	608	%
Book value per share	42.38			35.11	21
Dividends declared per share to common stockholders	0.25			0.23	9
Non-GAAP Information:
Non-GAAP operating income2	$	102,773		50,522	103	%
Diluted non-GAAP operating income per common share2	1.70			0.84	102
Annualized non-GAAP operating ROE2	16.2		%	9.4	6.8	pts

1Refer to the Glossary of Terms attached to our 2020 Annual Report as Exhibit 99.1 for definitions of terms used of this Form 10-Q.

2    Non-GAAP operating income is a measure comparable to net income available to common stockholders but excludes after-tax net realized and unrealized gains and losses on investments. Non-GAAP operating income is used as an important financial measure by us, analysts, and investors because the timing of realized investment gains and losses on sales of securities in any given period is largely discretionary. In addition, net realized and unrealized investment gains and losses on investments that are charged to earnings could distort the analysis of trends.

23

Reconciliations of net income available to common stockholders, net income available to common stockholders per diluted common share, and annualized ROE to non-GAAP operating income, non-GAAP operating income per diluted common share, and annualized non-GAAP operating ROE, respectively, are provided in the tables below:

Reconciliation of net income available to common stockholders to non-GAAP operating income	Quarter ended March 31,
($ in thousands)	2021		2020
Net income available to common stockholders	$	106,817	15,236
Net realized and unrealized (gains) losses, before tax	(5,119)		44,666
Tax on reconciling items	1,075		(9,380)
Non-GAAP operating income	$	102,773	50,522

Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share	Quarter ended March 31,
	2021		2020
Net income available to common stockholders per diluted common share	$	1.77	0.25
Net realized and unrealized (gains) losses, before tax	(0.08)		0.74
Tax on reconciling items	0.01		(0.15)
Non-GAAP operating income per diluted common share	$	1.70	0.84

Reconciliation of annualized ROE to annualized non-GAAP operating ROE	Quarter ended March 31,
	2021		2020
Annualized ROE	16.8	%	2.8
Net realized and unrealized (gains) losses, before tax	(0.8)		8.3
Tax on reconciling items	0.2		(1.7)
Annualized non-GAAP operating ROE	16.2	%	9.4

The components of our annualized ROE are as follows:

Annualized ROE Components	Quarter ended March 31,			Change Points
	2021		2020
Standard Commercial Lines Segment	8.6	%	2.4	6.2
Standard Personal Lines Segment	1.0		0.1	0.9
E&S Lines Segment	0.1		0.6	(0.5)
Total insurance operations	9.7		3.1	6.6
Investment income	8.9		8.5	0.4
Net realized and unrealized investment gains (losses)	0.6		(6.6)	7.2
Total investments segment	9.5		1.9	7.6
Other	(2.4)		(2.2)	(0.2)
Annualized ROE	16.8	%	2.8	14.0

At 16.2%, our First Quarter 2021 annualized non-GAAP operating ROE is above our full year 2021 target non-GAAP operating ROE of 11% and our First Quarter 2020 annualized non-GAAP operating ROE of 9.4%. In addition, non-GAAP operating income per diluted common share increased 102% in First Quarter 2021 compared to First Quarter 2020. The increase in non-GAAP operating income per diluted common share in First Quarter 2021 compared to First Quarter 2020 was primarily driven by (i) an increase of $0.31 in favorable prior year casualty reserve development, attributable to accident years 2018 and prior, (ii) a decrease of $0.29 in underwriting expenses, driven by the $10.5 million, pre-tax, increase to our allowance for credit losses on premiums receivable recorded in First Quarter 2020 related to the COVID-19 pandemic, (iii) an increase of $0.17 in investment income, driven by our other investments portfolio, which is primarily made up of alternative investments, and (iv) a decrease of $0.09 in catastrophe losses.

In addition to the above drivers of the change in our non-GAAP operating ROE period over period, the improvement in the annualized ROE of 16.8% in First Quarter 2021 compared to 2.8% in First Quarter 2020 was driven by an increase of 7.2 points in net realized and unrealized investment gains in First Quarter 2021 compared to First Quarter 2020. The increase was primarily driven by (i) unrealized gains on our equity securities compared to unrealized losses last year, which were driven by the COVID-19-related market disruption, and (ii) lower intent-to-sell losses in First Quarter 2021, as we provided our investment managers significant trading flexibility last year given the market conditions.

24

Outlook

We entered 2021 in the strongest financial position in our Company's long history, well positioned to continue delivering growth and profitability, as our First Quarter 2021 results demonstrated. We generated an annualized non-GAAP operating ROE of 16.2% in First Quarter 2021, which was 5.2 points above our 2021 target of 11%.

During 2021, we continued to focus on several areas to position us for ongoing success:

•Delivering on our strategy for continued disciplined growth by (i) continuing to work towards our longer-term Standard Commercial Lines 3% market share target in our 27 primary operating states, primarily by gaining a greater share of our wallet from our agents and appointing new agents, (ii) expanding our geographic markets, with a plan to add Idaho, Vermont, and Alabama, subject to regulatory approval, in the near-term, and other states over time, (iii) increasing customer retention by delivering a superior omnichannel experience by offering value-added technologies and services, which has significantly improved customer capabilities, and (iv) shifting our focus towards the affluent market within our Standard Personal Lines segment, which is a customer base that is less price sensitive and drives greater value from coverage and service.

•Continuing to achieve written renewal pure price increases that meet or exceed expected loss trend, while delivering on our strategy for continued disciplined growth. In First Quarter 2021, we achieved overall renewal pure price increases of 5.4%, which was above our expected loss trend.

•Building a culture centered on the values of diversity, equity, and inclusion that fosters innovation and idea generation and develops a group of specially trained leaders who can guide us successfully into the future.

For more details about our major areas of strategic focus, refer to the "Outlook" section in "Financial Highlights of Results for Years Ended December 31, 2020, 2019, and 2018" within Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations." of our 2020 Annual Report.

For 2021, we revised our full-year guidance as follows:

•A GAAP combined ratio, excluding catastrophe losses, of 90% (prior guidance 91%) that assumes no additional prior-year casualty reserve development;

•Catastrophe losses of 4.0 points on the combined ratio;

•After-tax net investment income of $195 million (prior guidance $182 million) that includes $31 million (prior guidance $16 million) in after-tax net investment income from our alternative investments;

•An overall effective tax rate of approximately 20.5%, that includes an effective tax rate of 19.0% for net investment income and 21% for all other items; and

•Weighted average shares of 60.5 million on a diluted basis.

Results of Operations and Related Information by Segment

Insurance Operations

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

All Lines	Quarter ended March 31,				Change % or Points
($ in thousands)	2021			2020
Insurance Operations Results:
Net premiums written ("NPW")	$	798,178		647,327	23	%
Net premiums earned (“NPE”)	724,960			651,703	11
Less:
Loss and loss expense incurred	413,401			400,324	3
Net underwriting expenses incurred	232,626			229,237	1
Dividends to policyholders	1,223			785	56
Underwriting income	$	77,710		21,357	264	%
Combined Ratios:
Loss and loss expense ratio	57.0		%	61.4	(4.4)	pts
Underwriting expense ratio	32.1			35.2	(3.1)
Dividends to policyholders ratio	0.2			0.1	0.1
Combined ratio	89.3			96.7	(7.4)

25

In First Quarter 2021, NPW increased 23% from a year ago, of which 12 points were due to the COVID-19-related $75 million return audit and mid-term endorsement premium accrual that reduced First Quarter 2020 NPW. NPW growth included overall renewal pure price increases of 5.4% and higher commercial lines retention. This solid growth continues to reflect the strong relationships we have with our best-in-class distribution partners, our sophisticated underwriting and pricing tools, and excellent customer servicing capabilities.

Loss and Loss Expenses

The decrease in the loss and loss expense ratio during First Quarter 2021 compared to First Quarter 2020 was primarily the result of the following:

	First Quarter 2021				First Quarter 2020
($ in millions)	Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Change in Ratio
Catastrophe losses	$	29.9	4.1	pts	$	33.2	5.1	pts	(1.0)	pts
(Favorable) prior year casualty reserve development	(35.0)		(4.8)		(10.0)		(1.5)		(3.3)
Non-catastrophe property loss and loss expenses	115.6		15.9		108.1		16.6		(0.7)
Total	110.5		15.2		131.3		20.2		(5.0)

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

(Favorable)/Unfavorable Prior Year Casualty Reserve Development	Quarter ended March 31,
($ in millions)	2021			2020
General liability	$	(15.0)		—
Workers compensation	(15.0)			(10.0)
Total Standard Commercial Lines	(30.0)			(10.0)
E&S	(5.0)			—
Total (favorable) prior year casualty reserve development	$	(35.0)		(10.0)
(Favorable) impact on loss ratio	(4.8)		pts	(1.5)

For additional qualitative reserve development discussion, please refer to the insurance segment sections below in "Results of Operations and Related Information by Segment."

Underwriting Expenses

The underwriting expense ratio decreased 3.1 points in First Quarter 2021 compared to First Quarter 2020, primarily driven by a 1.6-point change related to our allowance for credit losses on premiums receivable. We increased this allowance by $10.5 million during 2020 due to heightened credit risk resulting from the COVID-19-related billing accommodations we offered customers that increased earned but uncollected premiums during the year. This credit risk returned to pre-COVID-19 levels in 2021, and the allowance did not require further adjustment in First Quarter 2021. The existing allowance is expected to be sufficient to cover anticipated write-offs that will occur over the corresponding collections cycle, which could last more than a year. In addition, our underwriting expense ratio decreased 1.1 points in First Quarter 2021, compared to the same prior-year period, due to temporary expense reductions in labor and travel expenses as a result of COVID-19.

26

Standard Commercial Lines Segment

	Quarter ended March 31,				Change % or Points
($ in thousands)	2021			2020
Insurance Segments Results:
NPW	$	665,565		518,432	28	%
NPE	589,141			516,580	14
Less:
Loss and loss expense incurred	324,850			312,158	4
Net underwriting expenses incurred	193,569			186,511	4
Dividends to policyholders	1,223			785	56
Underwriting income	$	69,499		17,126	306	%
Combined Ratios:
Loss and loss expense ratio	55.1		%	60.4	(5.3)	pts
Underwriting expense ratio	32.9			36.1	(3.2)
Dividends to policyholders ratio	0.2			0.2	—
Combined ratio	88.2			96.7	(8.5)

In First Quarter 2021, NPW growth was up 28% from a year ago, of which 16 points was due to the COVID-19-related $75 million return audit and mid-term endorsement premium accrual taken in the prior-year period.

NPW growth also benefited from (i) renewal pure price increases, and (ii) retention, as shown in the following table:

	Quarter ended March 31,				Change % or Points
($ in millions)	2021			2020
Direct new business	$	114.5		115.4	(1)	%
Retention	86		%	85	1	pts
Renewal pure price increases	5.7			4.0	1.7

The loss and loss expense ratio decreased 5.3 points in First Quarter 2021 compared to the respective prior-year period, driven by the following:

	First Quarter 2021				First Quarter 2020
($ in millions)	Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Change in Ratio
Catastrophe losses	$	16.1	2.7	pts	$	20.7	4.0	pts	(1.3)	pts
Non-catastrophe property loss and loss expenses	83.6		14.2		79.6		15.4		(1.2)
(Favorable) prior year casualty reserve development	(30.0)		(5.1)		(10.0)		(1.9)		(3.2)
Total	69.7		11.8		90.3		17.5		(5.7)

For quantitative information on the favorable prior-year casualty reserve development by line of business, see the "Insurance Operations" section above, and for qualitative information about the significant drivers of this development, see the line of business discussions below.

The 3.2-point decrease in the underwriting expense ratio in First Quarter 2021 compared to First Quarter 2020 was primarily driven by: (i) the increase in our allowance for credit losses on premiums receivable recorded in First Quarter 2020, as further discussed in "Insurance Operations" above, resulting in a decrease of 1.4 points in First Quarter 2021 compared to First Quarter 2020; and (ii) a decrease of 1.4 points in labor and travel expenses due to temporary expense reductions in these areas as a result of COVID-19.

27

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

General Liability
	Quarter ended March 31,				Change % or Points
($ in thousands)	2021			2020
NPW	$	222,062		150,794	47	%
Direct new business	34,253			35,886	(5)
Retention	86		%	86	—	pts
Renewal pure price increases	5.1			3.8	1.3
NPE	$	193,520		164,580	18	%
Underwriting income	36,573			13,074	180
Combined ratio	81.1		%	92.1	(11.0)	pts
% of total Standard Commercial Lines NPW	33			29

In First Quarter 2021, NPW growth was up 47% from a year ago, of which 34 points was due to the COVID-19-related $46 million return audit and mid-term endorsement premium accrual taken on this line in the prior-year period. NPW growth also benefited from renewal pure price increases in First Quarter 2021.

The fluctuations in the combined ratios illustrated in the table above included the following:

	First Quarter 2021				First Quarter 2020
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio		Change in Ratio
(Favorable) prior year casualty reserve development	$	(15.0)	(7.8)	pts	$	—	—	pts	(7.8)	pts

The First Quarter 2021 reserve development was primarily attributable to lower loss severities in accident years 2018 and prior. There was no reserve development in First Quarter 2020.

In addition, the combined ratio decreased in First Quarter 2021 compared to First Quarter 2020 due to a 3.2-point decrease in the underwriting expense ratio, driven by: (i) the increase in our allowance for credit losses on premiums receivable recorded in First Quarter 2020, as further discussed in "Insurance Operations" above, resulting in a decrease of 1.5 points in First Quarter 2021 compared to First Quarter 2020; and (ii) a decrease of 1.5 points in labor and travel expenses.

Commercial Automobile
	Quarter ended March 31,				Change % or Points
($ in thousands)	2021			2020
NPW	$	190,646		168,310	13	%
Direct new business	28,746			28,857	—
Retention	87		%	85	2	pts
Renewal pure price increases	9.0			7.6	1.4
NPE	$	171,881		149,690	15	%
Underwriting income (loss)	2,792			(774)	461
Combined ratio	98.4		%	100.5	(2.1)	pts
% of total Standard Commercial Lines NPW	29			32

The increases in NPW shown in the table above reflect 9.0% renewal pure price increases and higher retention. This growth includes an in-force vehicle count increase of 4%.

The combined ratio improvements outlined above were driven by a 3.5-point decrease in the underwriting expense ratio compared to First Quarter 2020, driven by: (i) the increase in our allowance for credit losses on premiums receivable recorded in First Quarter 2020, as further discussed in "Insurance Operations" above, resulting in a decrease of 1.6 points in First Quarter 2021 compared to First Quarter 2020; and (ii) a decrease of 0.9 points in labor and travel expenses.

28

The improved underwriting expense ratio was partially offset by a 1.3-point increase in the loss and loss expense ratio, driven by the following:

	First Quarter 2021				First Quarter 2020
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio		Change in Ratio
Catastrophe losses	$	0.2	0.1	pts	$	0.3	0.2	pts	(0.1)	pts
Non-catastrophe property loss and loss expenses	29.4		17.1		23.0		15.4		1.7
Total	29.6		17.2		23.3		15.6		1.6

Workers Compensation
	Quarter ended March 31,				Change  % or Points
($ in thousands)	2021			2020
NPW	$	92,291		51,196	80	%
Direct new business	15,946			15,357	4
Retention	86		%	84	2	pts
Renewal pure price increases	0.2			(2.6)	2.8
NPE	$	78,190		66,706	17	%
Underwriting income	20,418			11,035	85
Combined ratio	73.9		%	83.5	(9.6)	pts
% of total Standard Commercial Lines NPW	14			10

In First Quarter 2021, NPW growth was up 80% from a year ago, of which 65 points was due to the COVID-19-related $29 million return audit and mid-term endorsement premium accrual taken on this line in the prior-year period, and also benefited from higher retention and renewal pure price increases.

The decrease in the combined ratio in First Quarter 2021 compared to the same prior year period was largely driven by favorable prior year casualty reserve development, as follows:

	First Quarter 2021				First Quarter 2020
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio		Change in Ratio
(Favorable) prior year casualty reserve development	$	(15.0)	(19.2)	pts	$	(10.0)	(15.0)	pts	(4.2)	pts

The development in First Quarter 2021 was primarily due to lower severities in accident years 2018 and prior, and the development in First Quarter 2020 was primarily due to lower severities in accident years 2017 and prior.

In addition, the First Quarter 2021 combined ratio was impacted by a 3.7-point decrease in the underwriting expense ratio compared to First Quarter 2020, driven by: (i) the increase in our allowance for credit losses on premiums receivable recorded in First Quarter 2020, as further discussed in "Insurance Operations" above, resulting in a decrease of 1.2 points in First Quarter 2021 compared to First Quarter 2020; and (ii) a decrease of 2.6 points in labor and travel expenses.

Commercial Property
	Quarter ended March 31,				Change  % or Points
($ in thousands)	2021			2020
NPW	$	113,382		103,126	10	%
Direct new business	24,270			24,586	(1)
Retention	85		%	84	1	pts
Renewal pure price increases	6.0			4.2	1.8
NPE	$	102,810		93,869	10	%
Underwriting (loss) income	6,766			(8,552)	179
Combined ratio	93.4		%	109.1	(15.7)	pts
% of total Standard Commercial Lines NPW	17			20

29

The decrease in the combined ratio in First Quarter 2021 compared to First Quarter 2020 was driven by the following:

	First Quarter 2021				First Quarter 2020
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio		Change in Ratio
Catastrophe losses	$	13.7	13.3	pts	$	19.7	20.9	pts	(7.6)	pts
Non-catastrophe property loss and loss expenses	44.6		43.4		45.6		48.6		(5.2)
Total	58.3		56.7		65.3		69.5		(12.8)

Nine events were designated as catastrophes that impacted First Quarter 2021, with one winter storm in February having the most significant impact on results. Five events impacted First Quarter 2020 catastrophe losses, which included a tornado and subsequent hail event that significantly impacted Tennessee.

In addition to the items in the tables above, the underwriting expense ratio decreased 2.8 points in First Quarter 2021 compared to First Quarter 2020 primarily driven by: (i) the increase in our allowance for credit losses on premiums receivable recorded in First Quarter 2020, as further discussed in "Insurance Operations" above, resulting in a decrease of 1.4 points in First Quarter 2021 compared to First Quarter 2020; and (ii) a decrease of 0.9 points in labor and travel expenses.

Standard Personal Lines Segment

	Quarter ended March 31,				Change % or Points
($ in thousands)	2021			2020
Insurance Segments Results:
NPW	$	65,077		67,640	(4)	%
NPE	73,821			76,128	(3)
Less:
Loss and loss expense incurred	47,166			54,332	(13)
Net underwriting expenses incurred	18,960			21,409	(11)
Underwriting income	$	7,695		387	1,888	%
Combined Ratios:
Loss and loss expense ratio	63.9		%	71.4	(7.5)	pts
Underwriting expense ratio	25.7			28.1	(2.4)
Combined ratio	89.6			99.5	(9.9)

NPW decreased in First Quarter 2021 compared to the same prior year period, driven by new business that was not sufficient to compensate for the non-renewed policies lost due to the challenging competitive environment in our personal auto line of business.

	Quarter ended March 31,				Change % or Points
($ in millions)	2021			2020
Direct new business	$	9.8		9.9	(1)	%
Retention	83		%	83	—	pts
Renewal pure price increases	0.8			3.7	(2.9)

The loss and loss expense ratio decreased 7.5 points in First Quarter 2021 compared to First Quarter 2020 driven by the following:

	First Quarter 2021				First Quarter 2020
($ in millions)	Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Change in Ratio
Catastrophe losses	$	5.6	7.6	pts	$	12.0	15.7	pts	(8.1)	pts
Non-catastrophe property loss and loss expenses	23.1		31.3		22.8		30.0		1.3
Total	28.7		38.9		34.8		45.7		(6.8)

Eight events were designated as catastrophes that impacted First Quarter 2021, with a late March thunderstorm in our footprint states having the most significant impact on results. Five events impacted First Quarter 2020, which included a tornado and subsequent hail event that significantly impacted Tennessee.

The underwriting expense ratio decreased 2.4 points in First Quarter 2021 compared to First Quarter 2020, driven primarily by

30

the increase in our allowance for credit losses on premiums receivable recorded in First Quarter 2020 as further discussed in "Insurance Operations" above, resulting in a decrease of 2.2 points in First Quarter 2021 compared to First Quarter 2020.

E&S Lines Segment

	Quarter ended March 31,				Change % or Points
($ in thousands)	2021			2020
Insurance Segments Results:
NPW	$	67,536		61,255	10	%
NPE	61,998			58,995	5
Less:
Loss and loss expense incurred	41,385			33,834	22
Net underwriting expenses incurred	20,097			21,317	(6)
Underwriting income	$	516		3,844	(87)	%
Combined Ratios:
Loss and loss expense ratio	66.8		%	57.4	9.4	pts
Underwriting expense ratio	32.4			36.1	(3.7)
Combined ratio	99.2			93.5	5.7

NPW grew 10% in First Quarter 2021 compared to First Quarter 2020 due to strong new business growth and renewal pure price increases.

Quantitative information on the premium in this segment is as follows:

	Quarter ended March 31,				Change % or Points
($ in millions)	2021			2020
Direct new business	$	31.3		27.5	14	%
Renewal pure price increases	7.3		%	3.9	3.4	pts

The loss and loss expense ratio increased 9.4 points in First Quarter 2021 compared to the same prior year period, primarily driven by the items outlined in the table below:

	First Quarter 2021				First Quarter 2020
($ in millions)	Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Loss and Loss Expense Incurred		Impact on Loss and Loss Expense Ratio		Change in Ratio
Catastrophe losses	$	8.3	13.3	pts	$	0.5	0.8	pts	12.5	pts
Non-catastrophe property loss and loss expenses	8.9		14.3		5.7		9.7		4.6
(Favorable) prior year casualty reserve development	(5.0)		(8.1)		—		—		(8.1)
Total	12.2		19.5		6.2		10.5		9.0

The increase in catastrophe losses in First Quarter 2021 compared to First Quarter 2020 was primarily due to a series of large winter storms that resulted in multiple catastrophes that significantly impacted Texas and other southern and central states.

The favorable prior year casualty reserve development for First Quarter 2021 was primarily attributable to lower loss severities in accident years 2016 through 2018. There was no prior year casualty reserve development in First Quarter 2020.

The underwriting expense ratio decreased 3.7 points in First Quarter 2021 compared to the same prior-year period, primarily driven by: (i) the increase in our allowance for credit losses on premiums receivable recorded in First Quarter 2020 as further discussed in "Insurance Operations" above, resulting in a decrease of 1.7 points in First Quarter 2021 compared to First Quarter 2020; and (ii) a decrease of 1.5 points in labor and travel expenses.

Investments

The primary objective of the investment portfolio is to maximize after-tax net investment income and its overall total return while maintaining a high credit quality core fixed income portfolio and managing our duration risk profile. The effective duration of our fixed income and short-term investments was 3.9 years as of March 31, 2021, compared to the Insurance Subsidiaries' liability duration of 3.7 years at December 31, 2020. The effective duration is monitored and managed to maximize yield while managing interest rate risk at an acceptable level. We maintain a well-diversified portfolio across sectors, with credit quality and maturities that provide ample liquidity. Purchases and sales are intended to maximize investment returns in the current market environment while balancing capital preservation.

31

Our fixed income and short-term investments represented 92% of our invested assets at both March 31, 2021, and December 31, 2020. As of both dates, these investments had a weighted average credit rating of “AA-” with a 96% allocation to investment grade holdings. The sector composition and credit quality of these investments did not significantly change from December 31, 2020. We anticipate our existing "AA-" credit rating will decrease over the coming quarters to "A+" and, once that occurs, we expect to maintain the new rating as we manage new investment risk-adjusted returns. However, we do not anticipate a material shift in the overall risk/return characteristics of our fixed income investments.

Total Invested Assets
($ in thousands)	March 31, 2021		December 31, 2020	Change
Total invested assets	$	7,559,266	7,505,599	1	%
Invested assets per dollar of common stockholders' equity	2.97		2.96	—
Unrealized gain – before tax1	297,459		395,207	(25)
Unrealized gain – after tax1	234,993		312,214	(25)

1Includes unrealized gains on fixed income and equity securities.

Invested assets increased at March 31, 2021, compared to December 31, 2020, reflecting very strong operating cash flows during First Quarter 2021 of $130.3 million, that was 16% of NPW, partially offset by a decrease in pre-tax unrealized gains of $97.7 million during the quarter. The decrease in unrealized gains was driven by a significant increase in longer-dated benchmark United States Treasury rates, offset in part by tightening credit spreads as a result of reduced uncertainty in the marketplace.

For further details on the composition, credit quality, and the various risks to which our portfolio is subject, see Item 7A.

“Quantitative and Qualitative Disclosures About Market Risk.” of our 2020 Annual Report.

Net Investment Income

The components of net investment income earned were as follows:

	Quarter ended March 31,				Change % or Points
($ in thousands)	2021			2020
Fixed income securities	$	52,823		50,253	5	%
Commercial mortgage loans ("CMLs")	514			62	729
Equity securities	2,488			1,552	60
Short-term investments	85			1,166	(93)
Other investments	17,433			6,342	175
Investment expenses	(3,627)			(3,408)	6
Net investment income earned – before tax	69,716			55,967	25
Net investment income tax expense	(13,373)			(10,484)	28
Net investment income earned – after tax	$	56,343		45,483	24
Effective tax rate	19.2		%	18.7	0.5		pts
Annualized after-tax yield on fixed income investments	2.6			2.7	(0.1)
Annualized after-tax yield on investment portfolio	3.0			2.7	0.3

The increase in after-tax net investment income in First Quarter 2021 compared to First Quarter 2020 was driven by higher returns on alternative investments in our other investment portfolio. These returns are recorded on a one-quarter lag, and reflect the strong capital market performance in the fourth quarter of 2020.

32

Realized and Unrealized Gains and Losses

Our general investment philosophy is to (i) reduce our exposure to securities and sectors that we have evaluated and determined have deteriorated economic fundamentals, or (ii) determine appropriate timing for an opportunistic trade for other securities or sectors with better economic-return characteristics. Net realized and unrealized gains and losses for the indicated periods were as follows:

	Quarter ended March 31,				Change %
($ in thousands)	2021		2020
Net realized (losses) gains on disposals	$	(795)	4,100		(119)	%
Net unrealized gains (losses) equity securities	11,280		(17,137)		(166)
Net credit loss expense on fixed income securities, AFS	(4,997)		(15,787)		(68)
Net credit loss expense on fixed income securities, HTM	(7)		—		N/M
Net credit loss expense on CMLs	—		(240)		(100)
Losses on securities for which we have the intent to sell	(362)		(15,602)		(98)
Total net realized and unrealized gains (losses)	$	5,119	$	(44,666)	(111)

The improvement in net realized and unrealized gains was primarily driven by (i) unrealized gains on our equity securities compared to unrealized losses last year, which were driven by COVID-19-related market disruption, and (ii) lower intent-to-sell losses as we provided our investment managers significant trading flexibility last year given market conditions.

Federal Income Taxes

The following table provides information regarding federal income taxes:

	Quarter ended March 31,
($ in millions)	2021			2020
Federal income tax expense	$	26.4		0.8
Effective tax rate1	19.8		%	4.8

1The effective tax rate is calculated by taking "Total federal income tax expense" divided by "Income before federal income tax" less "Preferred stock dividends" on our Consolidated Statements of Income.

Our First Quarter 2021 effective tax rate in the table above differs from the statutory rate of 21% principally due to: (i) the benefit of tax-advantaged interest and dividend income; and (ii) the impact of excess tax benefits on our stock-based compensation awards, partially offset by certain disallowances of executive compensation.

The increase in our effective tax rate during First Quarter 2021 compared to First Quarter 2020 was driven by a reduced effective tax rate during First Quarter 2020, primarily due to net realized and unrealized losses of $44.7 million, pre-tax, which provided a significant offset to the other components of pre-tax net income and reduced the effective tax rate.

Financial Condition, 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 operating and growth needs.

Liquidity

We manage liquidity by focusing on generating sufficient cash flows to meet the short-term and long-term cash requirements of our business operations.

Sources of Liquidity

Sources of cash for the Parent historically have consisted of dividends from the Insurance Subsidiaries, the investment portfolio held by the Parent, borrowings under third-party lines of credit, loan agreements with certain Insurance Subsidiaries, and the issuance of equity and debt securities. We continue to monitor these sources, giving consideration to our long-term liquidity and capital preservation strategies.

The Parent's investment portfolio provides liquidity through (i) short-term investments that are generally maintained in “AAA” rated money market funds approved by the National Association of Insurance Commissioners, (ii) high-quality, highly liquid government and corporate fixed income securities; (iii) equity securities, and (iv) a cash balance. In the aggregate, Parent cash and total investments amounted to $490 million at both March 31, 2021, and December 31, 2020.

The Parent's liquidity may fluctuate 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 shareholders, and

33

asset allocation investment decisions. Our target for the Parent is to maintain liquidity matching at least twice its expected annual needs, which is currently estimated to be approximately $180 million.

Insurance Subsidiary Dividends

The Insurance Subsidiaries generate liquidity through insurance float, which is created by collecting premiums and earning investment income before claims are paid. The period of float can extend over many years. Our investment portfolio consists of maturity dates that continually provide a source of cash flow for claims payments in the ordinary course of business. As protection for the capital resources at the Insurance Subsidiaries, we purchase reinsurance coverage for any significantly large claims or catastrophes that may occur.

The Insurance Subsidiaries paid $35 million in total dividends to the Parent during First Quarter 2021. As of December 31, 2020, our allowable ordinary maximum dividend was $241 million for 2021. 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 surplus reported in its statutory 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 shareholders if either (i) the Parent would be unable to pay its debts as they became 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 shareholders is also impacted by (i) covenants in its credit agreement (discussed below under "Line of Credit") 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 to be 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. "Preferred Stock", 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 2020 Annual Report.

Line of Credit

On December 20, 2019, the Parent entered into a Credit Agreement with the lenders named therein (the “Lenders”) and the Bank of Montreal, Chicago Branch, 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. The Line of Credit will mature on December 20, 2022, and has a variable interest rate based on, among other factors, the Parent’s debt ratings.

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 2020 Annual Report. We met all covenants under our Line of Credit as of March 31, 2021.

Several Insurance Subsidiaries are members of Federal Home Loan Bank branches, as shown in the following table. Membership requires the ownership of branch stock and includes the right to borrow and gain access to liquidity. All FHLBI and 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:

Branch	Insurance Subsidiary Member
FHLBI	Selective Insurance Company of South Carolina ("SICSC")1 Selective Insurance Company of the Southeast ("SICSE")1
FHLBNY	Selective Insurance Company of America ("SICA") Selective Insurance Company of New York ("SICNY")

1These subsidiaries are jointly referred to as the "Indiana Subsidiaries" as they are domiciled in Indiana.

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. Additionally, 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. We have a remaining capacity of $338 million for Federal Home Loan Bank borrowings, with a $12.2 million additional stock purchase requirement to allow the member companies to borrow their full remaining capacity amounts.

34

Short-term Borrowings

We did not make any short-term borrowings during First Quarter 2021.

Intercompany Loan Agreements

The Parent has lending agreements with the Indiana Subsidiaries approved by the Indiana Department of Insurance, that provide it additional 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 March 31, 2021 and December 31, 2020. The remaining capacity under these intercompany loan agreements was $97.1 million as of both March 31, 2021, and December 31, 2020.

Capital Market Activities

The Parent had no private or public issuances of stock during First Quarter 2021. In the fourth quarter of 2020, we enhanced our capital structure flexibility at the Parent by issuing $200 million of 4.60% non-cumulative perpetual preferred stock. Net proceeds after issuance costs were approximately $195 million. The Parent is using these proceeds for general corporate purposes, which may include the repurchase of common stock under a $100 million share repurchase program authorized by our Board in conjunction with the preferred stock offering. During First Quarter 2021, we repurchased 52,781 shares of our common stock under this authorization at a cost of approximately $3.4 million, with a $64.49 average price per share. We have $96.6 million of remaining capacity under our share repurchase program.

Uses of Liquidity

The Parent's liquidity generated from the sources discussed above is used, among other things, to pay dividends to our shareholders. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board of Directors based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. On April 28, 2021, our Board of Directors declared:

•A cash dividend of $0.25 per common share that is payable June 1, 2021 to holders of record as of May 14, 2021; 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) that is payable June 15, 2021 to holders of record as of May 31, 2021.

Our ability to meet our interest and principal repayment obligations on our debt, as well as 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. The following summarizes our upcoming principal payments due:

•$25 million to FHLBNY on July 21, 2021;

•$25 million to FHLBNY on August 16, 2021; and

•$60 million to FHLBI 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 March 31, 2021, we had GAAP stockholders' equity of $2.7 billion and statutory surplus of $2.2 billion. With total debt of $550.9 million at March 31, 2021, our debt-to-capital ratio was 16.7%. 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 2020 Annual Report.

Our cash requirements include, without limitation, principal and interest payments on various notes payable, dividends to stockholders, payment of claims, payment of commitments under limited partnership agreements, capital expenditures, and other operating expenses, including commissions to our distribution partners, labor costs, premium taxes, general and administrative expenses, and income taxes. For further details regarding our cash requirements, refer to the section below entitled, “Contractual Obligations, Contingent Liabilities, and Commitments.”

We continually monitor our cash requirements and the amount of 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

35

and/or equity securities, repurchasing existing debt, repurchasing shares of the Parent’s common stock, and increasing 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 an attractive book of business and solid capital base, positioning us well to take advantage of market opportunities that may arise.

Book value per share was $42.38 as of March 31, 2021, equal to the book value as of December 31, 2020, as $1.77 in net income per share was partially offset by $1.44 of lower unrealized gains on our fixed income securities portfolio and $0.25 in dividends to our common shareholders.

Ratings

Our ratings remain the same as reported in our "Overview" section of Item 1. "Business." of our 2020 Annual Report and are as follows:

NRSRO	Financial Strength Rating	Outlook
AM Best Company	A	Positive
Moody's Investors Services	A2	Stable
Fitch Ratings ("Fitch")	A+	Stable
Standard & Poor's Global Ratings	A	Stable

On April 2, 2021, Fitch reaffirmed our "A+" rating with a "stable" outlook. In taking this rating action, Fitch cited our strong capitalization, financial performance, stable underwriting results, and return metrics that have remained favorable compared to peers.

Off-Balance Sheet Arrangements

At March 31, 2021, and December 31, 2020, we had no 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.

Contractual Obligations, Contingent Liabilities, and Commitments

Our future cash payments associated with (i) loss and loss expense reserves, (ii) contractual obligations pursuant to operating and financing leases for office space and equipment, and (iii) notes payable have not materially changed since December 31, 2020. At March 31, 2021, we had certain contractual obligations that may require us to invest additional amounts in our investment portfolio as follows:

($ in millions)	Amount of Obligation		Year of Expiration of Obligation
Alternative and other investments	$	218.0	2036
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio	47.8		2030
Non-publicly traded common stock within our equity portfolio	13.1		2027
CMLs	5.5		Less than a year
Privately-placed corporate securities	8.0		Less than a year
Total	$	292.4

There is no certainty that any such additional investment will be required. We expect to have the capacity to repay and/or refinance these obligations as they come due.

We have issued no material guarantees on behalf of others and have no trading activities involving non-exchange traded contracts accounted for at fair value. For additional details on transactions with related parties, see Note 18. "Related Party Transactions" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.

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 2020 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

36

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 First Quarter 2021 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 engaged in ordinary routine legal proceedings that, because litigation outcomes are inherently unpredictable, 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 March 31, 2021, 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.

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 actions we might take 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 stockholders' dividends. We operate in a continually changing business environment and new risk factors emerge from time to time. Consequently, we can neither predict such new risk factors nor assess the potential future impact, if any, they might have on our business. There have been no material changes from the risk factors disclosed in Item 1A. “Risk Factors.” in our 2020 Annual Report.

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

The following table provides information about our purchases of our common stock in First Quarter 2021:

Period	Total Number of Shares Purchased1	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Announced Programs (in millions)2
January 1 – 31, 2021	—	$	—	—	$	100.0
February 1 - 28, 2021	136,622	64.64		52,781	96.6
March 1 - 31, 2021	177	71.79		—	96.6
Total	136,799	$	64.65	52,781	$	96.6

1Of the total number of shares purchased, 84,018 shares were purchased from employees to satisfy tax withholding obligations associated with the vesting of their restricted stock units.

2On December 2, 2020, we announced that our Board of Directors authorized a $100 million share repurchase program, which has no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock, and the repurchase program may be suspended or discontinued at any time at our discretion. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion and based on market conditions and other considerations.

37

ITEM 6. EXHIBITS.

Exhibit No.
*10.1+	Selective Insurance Group, Inc. Employee Stock Purchase Plan (2021), Amended and Restated Effective July 1, 2021.
*11	Statement Re: Computation of Per Share Earnings.
*31.1	Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.
**32.1	Certification of Chief Executive Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.
**32.2	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 March 31, 2021, 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 March 31, 2021, formatted in iXBRL.

 * Filed herewith.

** Furnished and not filed herewith.

+ Management compensation plan or arrangement.

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:	April 29, 2021	By: /s/ John J. Marchioni
		John J. Marchioni
		President and Chief Executive Officer
		(principal executive officer)
Date:	April 29, 2021	By: /s/ Mark A. Wilcox
		Mark A. Wilcox
		Executive Vice President and Chief Financial Officer
		(principal financial officer)

38

EX-10.1

Exhibit 10.1

SELECTIVE INSURANCE GROUP, INC.

EMPLOYEE STOCK PURCHASE PLAN (2021)

Amended and Restated Effective July 1, 2021

ARTICLE I

Establishment and Purpose

1.1.    Selective Insurance Group, Inc. (the “Company” or “Selective”) has established the Employee Stock Purchase Plan (the “Plan”) to provide a greater community of interest between Selective stockholders and the employees of Selective and its subsidiaries which adopt the Plan, and to facilitate the purchase by employees of shares of common stock of Selective. The Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended.

1.2.    The Plan, as amended and restated, is effective July 1, 2021, subject to approval by the Company’s     stockholders at the Company’s 2021 annual meeting of stockholders, and is renamed the “Selective Insurance Group, Inc. Employee Stock Purchase Plan (2021).”

ARTICLE II

Definitions

2.1.    “Account” means a bookkeeping account established by the Company with respect to the funds that are accumulated for each individual Participant as a result of payroll deductions for the purpose of purchasing Shares under the Plan. The funds that are allocated to a Participant's Account may be commingled with the general funds of the Company.

2.2.    “Acquisition” means a merger or consolidation of Selective with and into another person or the sale, transfer, or other disposition of all or substantially all of the assets of Selective to one or more persons (other than any wholly-owned subsidiary of Selective) in a single transaction or series of related transactions.

2.3.    “Base Pay” means the portion of a Participant’s regular base salary, earnings or wages paid to the Participant during the applicable payroll period, excluding payments for overtime, bonuses and other incentive compensation, commissions, pension, welfare and fringe benefits.

2.4.    “Board” means the Board of Directors of Selective.

2.5.    “Code” means the Internal Revenue Code of 1986, as amended.

2.6.    “Commencement Date” with respect to an Option means the first day of the Offering Period in which such Option was granted.

2.7.    “Committee” means the Salary and Employee Benefits Committee of the Board.

2.8.    “Designated Subsidiary” means any Subsidiary that the Committee has designated from time to time, in its sole discretion, as eligible to participate in the Plan.

2.9.    “Employee” means any common law employee of the Company or a Designated Subsidiary, including an officer or a member of the Board who is a common law employee, who is customarily employed by the Company or a Designated Subsidiary more than five (5) months in a calendar year, and who (i) is regularly scheduled to work on a full-time basis; (ii) is regularly scheduled to work on a part-time basis; or (iii) is not regularly scheduled to work on either a full-time or part-time basis, but is customarily employed more than twenty (20) hours per week, all as set forth in the books and records of the Company or a Designated Subsidiary.

2.10.    “Exercise Date” with respect to any Option means the last day of the Offering Period in which such Option was granted.

2.11.    “Fair Market Value” of the Shares on any given date shall be calculated as follows: (i) if the Shares are listed on a national securities exchange and sale prices are regularly reported for the Shares, then the Fair Market Value shall be the closing selling price for a Share reported on the applicable composite tape or other comparable reporting system on the applicable date, or, if the applicable date is not a trading day, on the most recent trading day immediately prior to the applicable date; or (ii) if closing selling prices are not regularly reported for the Shares as described in clause (i) above but bid and asked prices for the Shares are regularly reported, then the Fair Market Value shall be the arithmetic mean between the closing or last bid and asked prices for the Shares on the applicable date or, if the applicable date is not a trading day, on the most recent trading day immediately prior to the applicable date; or (iii) if prices are not regularly reported for the Shares as described in clause (i) or (ii) above, then the Fair Market Value shall be such value as the Committee in good faith determines.

2.12.    “Offering Period” means any of the successive six-month offerings (the “Offerings”), with a new Offering commencing on January 1 and July 1 of each year, for purposes of purchasing Shares by Participants under the Plan, as described in Section 4.1. Each Offering commencing on January 1 of each year shall end on June 30 of that year, and each Offering commencing on July 1 of each year shall end on December 31 of that year.

2.13.    “Option” means the right to purchase Shares under the Plan.

2.14.    “Parent” means a parent, as that term is defined under Section 424(e) of the Code.

2.15.    “Participant” means an Employee who has elected to participate in the Plan in accordance with Article V.

2.16.    “Plan” means this Selective Insurance Group, Inc. Employee Stock Purchase Plan (2021), as amended from time to time.

2.17.    “Shares” mean shares of common stock of the Company, par value $2.00 per share, subject to adjustments which may be made in accordance with Article XV.

2.18.    “Subsidiary” means a “subsidiary corporation” of the Company, as that term is defined under Section 424(f) of the Code.

ARTICLE III

Eligibility

3.1.    Any person who is an Employee during the enrollment period established by the Committee for an Offering Period and as of the first day of an Offering Period, shall be eligible to participate in the Plan with respect to such Offering Period, subject to the limitations imposed by Section 423 of the Code.

3.2.    Notwithstanding any provision of the Plan to the contrary, no Employee shall be granted an Option:

(i)    if such Employee, immediately after the Option is granted, owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of Selective or of any Parent or Subsidiary (taking into account stock which would be attributed to such Employee pursuant to Section 424(d) of the Code); or

(ii)    that gives the Employee the right to purchase stock under all “employee stock purchase plans” (within the meaning of Section 423 of the Code) of Selective and its Parents and Subsidiaries, including the Plan, to accrue at a rate which exceeds $25,000 of the Fair Market Value of such stock (determined as of the Commencement Date of the Offering Period to which

2

the Option relates) for each calendar year in which such Option is outstanding at any time. The term “accrue” shall be interpreted in accordance with Section 423(b)(8) of the Code and the regulations thereunder.

ARTICLE IV

Offering Periods

4.1.    Shares shall be offered for purchase under the Plan through a series of successive or non-overlapping Offering Periods until such time as: (i) the maximum number of Shares available for issuance under the Plan shall have been purchased; or (ii) the Plan shall have been sooner terminated. Each Offering Period shall be of such duration (not to exceed twelve (12) months) and commence on such dates as determined by the Committee prior to the Commencement Date of such Offering Period. At any time and from time to time, the Committee may change the duration and/or the frequency of Offering Periods or suspend operation of the Plan with respect to Offering Periods not yet commenced. Unless otherwise determined by the Committee from time to time, an Offering Period shall commence on the first business day in January and July of each year and end on the last business day in the following June and December, respectively.

4.2.    The Committee may at any time suspend any Offering Period if required by law or if the Committee shall deem such suspension to be in the best interests of the Company.

ARTICLE V

Participation

5.1.    Any person who is an Employee during the enrollment period established by the Committee for an Offering Period and as of the Commencement Date of an Offering Period may become a Participant in the Plan for such Offering Period by enrolling in the Plan and authorizing payroll deductions prior to the Commencement Date of such Offering Period in the manner provided by the Committee from time to time.

5.2.    Participation in one Offering Period under the Plan shall neither limit, nor require, participation in any other Offering Period.

5.3.    Participation in the Plan shall be voluntary.

ARTICLE VI

Payroll Deductions

6.1.    Upon enrollment in the Plan, a Participant shall authorize the Company to make payroll deductions of a whole percentage of his or her Base Pay each payroll period at a rate not in excess of ten percent (10%) of such payroll period Base Pay. The Committee may, from time, change the limitations on the maximum and/or minimum percentage or amount of payroll deductions that may be made by Participants; provided, however, that, except as provided in Articles XII and XV, a Participant's existing rights under any Offering Period that has already commenced may not be adversely affected by such change.

6.2.    Payroll deductions for a Participant shall commence with the first regular payroll date occurring on or after the Commencement Date of the Offering Period for which a payroll deduction authorization has been filed. Payroll deductions shall end on the last payroll date that is on or prior to the Exercise Date, unless the Participant has discontinued his or her participation in the Plan with respect to that Offering Period earlier as provided in Article IX.

6.3.    At the conclusion of each Offering Period, the Company shall automatically re-enroll each Participant in the next Offering Period, and payroll deductions shall continue at the rate selected by the Participant in his or her payroll deduction authorization for the prior Offering Period, unless the Participant discontinues his or her participation in the Plan earlier as provided in Article IX.

3

6.4.    All payroll deductions made for a Participant shall be credited to a payroll deduction Account. The Participant may not make any separate cash payments into such Account nor may payment for Shares be made from other than the Participant's Account.

6.5.    A Participant may elect to discontinue his or her participation in the Plan and terminate his or her payroll deduction authorization as provided in Article IX, but may not alter the amount or rate of payroll deductions during an Offering Period or make any other change during an Offering Period.

6.6.    No interest will be paid or allowed in respect of any payroll deduction amount under any circumstances.

6.7.    Notwithstanding anything in this Article VI to the contrary, to the extent necessary to comply with Section 423(b)(3) or Section 423(b)(8) of the Code and Section 3.2 herein, a Participant may be excluded from participating in an Offering Period, or a Participant's payroll deductions may be limited, decreased or terminated during any Offering Period. Except to the extent required to ensure compliance with Section 423(b)(3) or Section 423(b)(8) of the Code and Section 3.2 herein, payroll deductions limited, decreased or terminated pursuant to this Section 6.7 shall re‑commence automatically at the rate provided in such Participant's payroll deduction authorization at the beginning of the next Offering Period, unless terminated by the Participant as provided in Article IX or modified by the Participant with respect to the next Offering Period.

ARTICLE VII

Terms and Conditions of Options

7.1.    Options granted pursuant to the Plan shall be evidenced by agreements, if any, in such form, including electronic form, as the Committee shall require, and shall comply with and be subject to the terms and conditions set forth in this Article VII. All Employees shall have the same rights and privileges under the Plan.

7.2.    On the Commencement Date of each Offering Period, Selective shall grant to each Participant in such Offering Period an Option to purchase as many full or fractional Shares as may be purchased by such Participant with the amount credited to his or her Account at the Exercise Date for such Option, subject to the limitations of Section 7.4. A Participant shall be granted a separate purchase right for each Offering Period in which he participates.

7.3.    The Option price of the Shares shall be the lower of:

(i)85% of the Fair Market Value of the Shares on the Commencement Date of the Offering Period; and

(ii)85% of the Fair Market Value of the Shares on the Exercise Date for the Offering Period.

7.4.    In no event may the number of Shares purchased by any Participant during an Offering Period exceed 2,400 shares, as the same may be adjusted pursuant to Article XV.

ARTICLE VIII

Exercise of an Option

8.1.    Unless a Participant has received a refund of or withdrawn the balance of his or her Account pursuant to Article IX, his or her Option for the purchase of Shares will be exercised automatically on the Exercise Date, and the maximum number of Shares shall be purchased at the applicable Option price with the accumulated payroll deductions in his or her Account.

8.2.    Any balance remaining in any Participant’s Account at the Exercise Date of an Offering Period equaling less than the sum required to purchase a full Share shall be used to purchase fractional Shares.

4

ARTICLE IX

Withdrawal or Termination

9.1.    Upon termination of a Participant’s employment with the Company and Subsidiaries for any reason, including death, prior to an Exercise Date for an Offering Period, the payroll deductions credited to the Participant's Account for such Offering Period shall be returned to him or her (or, in the event of the Participant's death, to his or her estate) in cash, without interest.

9.2.    Subject to rules and procedures adopted by the Committee, a Participant may withdraw all but not less than all of the balance in his or her Account and thereby withdraw from participation in the Plan with respect to an Offering Period by giving written notice to the Committee no later than fourteen (14) business days prior to the last day of the Offering Period. Upon receipt of such notice: (a) the Participant’s Option for the Offering Period shall automatically terminate; (b) no further contributions to his or her Account shall be permitted for such Offering Period; and (c) as soon as administratively practicable, the Company shall refund to the Participant the funds that remain in the Participant's Account, without interest.

9.3.    An Employee who has previously withdrawn from the Plan may re-enter by complying with the requirements of Article V. Upon compliance with such requirements, an Employee's re-entry into the Plan will become effective on the Commencement Date of the next Offering Period following the date the Employee complies with Article V with respect to the re-entry.

ARTICLE X

Shares Under Option

10.1.    Subject to adjustment pursuant to Article XV, the aggregate number of Shares available for issuance under the Plan shall be 5,500,000, which amount is inclusive of 1,000,000 Shares to be made available as of July 1, 2021 and all Shares previously authorized under the Plan. The Shares to be sold to Participants under this amended and restated Plan may, at the election of the Board, be either treasury Shares, Shares originally issued for such purpose, or issued and outstanding Shares purchased for such purpose in the open market.

10.2.    If for any reason any Option under the Plan terminates or is cancelled in whole or in part, Shares that may have been purchased upon the exercise of such Option may be made subject to another Option under the Plan.

10.3.    If, on any date, the total number of Shares for which outstanding Options have been granted exceeds the number of Shares then available under this Article X after deduction of all Shares that have been purchased under the Plan, the Committee shall make a pro-rata allocation of the Shares that remain available in as nearly a uniform manner as shall be practicable and as it shall determine, in its sole judgment, to be equitable. In such event, the number of Shares each Participant may purchase shall be reduced and the Committee shall give to each Participant a written notice of such reduction.

10.4.    Selective shall deliver, or cause to be delivered, to each Participant, as promptly as practicable after any Exercise Date, a statement indicating the number of Shares, including any fractional Shares, purchased upon exercise of his or her Option that are being held in an account established by Selective for and in the Participant’s name.

10.5.    A Participant will have no interest in Shares covered by his or her Option, and will have no rights as a stockholder and no voting rights with respect to any such Shares, until such Option has been exercised and such Shares issued to the Participant.

ARTICLE XI

Administration

11.1.    The Plan shall be administered by the Salary and Benefits Committee of Selective Insurance Group, Inc. For any period during which no such committee is in existence, “Committee” shall mean the Board, and all

5

authority and responsibility assigned to the Committee under the Plan shall be exercised, if at all, by the Board.

11.2.    The Committee shall be vested with full and exclusive discretionary authority to administer the Plan, to construe, interpret and apply its terms, to determine eligibility to participate in the Plan, to adjudicate all disputed claims made with respect to the Plan and to adopt such rules and regulations as it deems necessary to administer the Plan. Without limiting the generality of the foregoing, the Committee may, at any time, change the timing of an Offering Period, limit the frequency and/or number of changes in the amount withheld during an Offering Period, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company's processing of properly completed payroll deduction authorizations, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Shares for each Participant properly correspond with amounts withheld from the Participant's Base Pay, and establish such other limitations or procedures as the Committee determines in its sole discretion advisable which are consistent with the Plan.

11.3.    Any determination, decision, or action of the Committee with respect to the construction, interpretation, administration, or application of the Plan, any Option agreement entered into pursuant to the Plan or any other forms or procedures used in connection with or relating to the Plan shall be final, conclusive, and binding on all persons having or claiming any interest under this Plan.

11.4.    The Committee may, at any time and in its sole discretion by action in writing, delegate to any individual, committee or entity any of its powers and responsibilities under the Plan. Without limiting the generality of the foregoing, the Committee may appoint an employee or employees of the Company and delegate to such employee(s) its authority to administer the day-to-day operations of the Plan.

11.5.    In addition to such other rights of indemnification as they may have as directors, officers, employees or members of the Committee, the members of the Committee shall be indemnified by Selective against the reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Option granted thereunder, and against all amounts paid by them, or any of them, in settlement thereof (provided such settlement is approved by independent legal counsel selected by Selective) or in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Committee member is liable for negligence or misconduct in the performance of his or her duties; provided, that within 60 days after institution of any such action, suit or proceeding a Committee member shall in writing offer the Company the opportunity, at its own expenses, to handle and defend the same.

ARTICLE XII

Amendment and Termination of the Plan

12.1.    The Board may amend the Plan at any time in such respects as it shall deem advisable; provided, however, that stockholder approval will be required for any amendment that will increase the total number of Shares as to which Options may be granted under the Plan or for any amendment which, without such stockholder approval, would cause this Plan to fail to continue to qualify as an "employee stock purchase plan" under Section 423 of the Code.

12.2.    The Board may suspend or terminate this Plan at any time. Upon a suspension or termination of the Plan while an Offering Period is in progress, the Committee shall either shorten such Offering Period by setting a new Exercise Date before the date of such suspension or termination of the Plan, or shall refund to each Participant the balance, if any, of each Participant's Account, without interest.

12.3.    Without stockholder consent and without regard to whether any Participant rights may be considered to have been adversely affected, the Committee, as administrator of the Plan, shall be entitled to make changes

6

to the Offering Periods and other terms of participation in the Plan permitted by Article 11, including, without limitation, Section 11.2.

ARTICLE XIII

Nontransferability

13.1.    Neither the Options, the payroll deductions credited to a Participant’s Account, nor any rights with regard to the exercise of an Option or the receipt of Shares under the Plan may be assigned, transferred, pledged, or otherwise disposed of in any way by a Participant, other than by will or the laws of descent or distribution, and any such attempted assignment, transfer, pledge, or other disposition shall be null and void and without effect, but Selective may treat such act as an election to withdraw from the Plan in accordance with Article IX. No Option may be exercised during a Participant’s lifetime by any person other than the Participant.

13.2.    Unless otherwise determined by the Committee, Shares purchased under the Plan may be registered only in the name of the Participant, or, if such Participant so indicates on his or her payroll deduction authorization form, in his or her name jointly with a member of his or her family, with right of survivorship. A Participant who is a resident of a jurisdiction which does not recognize such a joint tenancy may have Shares registered in the Participant’s name as tenant in common with a member of the Participant’s family, without right of survivorship.

ARTICLE XIV

Use of Funds

14.1.    All payroll deductions received or held by the Company under this Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to, and shall not, segregate such payroll deductions. On each Exercise Date, sufficient funds to acquire the number of Shares being purchased by the Participants employed by the Company shall be transferred to Selective by the Company which employs such Participants.

ARTICLE XV

Adjustments upon Changes in Capitalization, Acquisitions, Etc.

15.1.    Subject to any required action by the stockholders of Selective, the number of Shares covered by each Option under the Plan which has not yet been exercised and the number of Shares which have been authorized for issuance under the Plan but have not yet been placed under Option (collectively, the “Reserves”), as well as the maximum number of Shares which may be purchased by a Participant in an Offering Period, the number of Shares set forth in Sections 7.4 and 10.1 above, and the price per Share covered by each Option which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of the issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares (including any such change in the number of Shares effected in connection with a change in domicile of Selective), or any other increase or decrease in the number of Shares effected without receipt of consideration by Selective; provided however, that conversion of any convertible securities of Selective shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive.

15.2.    In the event of a dissolution or liquidation of Selective, the Plan and the Offering Period then in progress will terminate immediately prior to the consummation of such action. Unless otherwise provided by the Committee, any outstanding Option granted with respect to the Offering Period then in progress will terminate immediately prior to the consummation of such action, and the entire amount credited to each Participant’s Account will be paid to him or her in cash without interest.

7

15.3.    In the event of an Acquisition, each Option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a Parent or Subsidiary of such successor corporation. In the event that the successor corporation or Parent or Subsidiary of such successor corporation refuses to assume or substitute for outstanding Options, then the Committee shall provide for either (i) or (ii) below to occur:

(i)The Offering Period then in progress shall be shortened and a new Exercise Date shall be set with respect to such Offering (the “New Exercise Date”), as of which date the Offering Period then in progress will terminate. The New Exercise Date shall be on or before the date of consummation of the transaction and the Committee shall notify each Participant in writing, at least ten (10) days prior to the New Exercise Date, that the Exercise Date for his or her Option has been changed to the New Exercise Date and that his or her Option will be exercised automatically on the New Exercise Date, unless prior to such date he has withdrawn from the Plan with respect to such Offering Period as provided in Article IX.

(ii)The Offering Period then in progress will terminate immediately prior to the consummation of the Acquisition, any outstanding Option granted with respect to the Offering Period then in progress will terminate, and the entire amount credited to each Participant’s Account will be paid to him or her in cash without interest.

For purposes of this Article XV, an Option granted under the Plan shall be deemed to be assumed, without limitation, if, at the time of issuance of the stock or other consideration upon an Acquisition, each holder of an Option would be entitled to receive upon exercise of the Option the same number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder of the number of Shares covered by the Option at such time (after giving effect to any adjustments in the number of Shares covered by the Option as provided for in this Article XV); provided, however, that if the consideration received in the transaction is not solely common stock of the successor corporation or its Parent, the Committee may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the Option to be solely common stock of the successor corporation or its Parent equal in Fair Market Value to the per Share consideration received by holders of Shares in the transaction.

15.4.    The Committee shall make an appropriate and proportionate adjustment, as determined in the exercise of its sole discretion, to the Reserves, as well as the price per Share and the kind of shares covered by each outstanding Option, in the event that Selective effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of Shares, and in the event of a merger or other consolidation of Selective with or into any other corporation.

ARTICLE XVI

Registration and Qualification of Shares

16.1.    Shares shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, applicable state securities laws and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

16.2.    As a condition to the exercise of an Option, the Committee may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Committee, such a representation is required by any of the aforementioned applicable provisions of law.

8

ARTICLE XVII

Designation of Beneficiary

17.1.    A Participant may, if and to the extent permitted by the Committee, file a written designation of a beneficiary who is to receive any Shares and cash, if any, from the participant's Account under the Plan in the event of such Participant's death subsequent to the end of an Offering Period but prior to delivery to him or her of such Shares and cash. Any such beneficiary shall also be entitled to receive any cash from the Participant's Account under the Plan in the event of such Participant's death during an Offering Period.

17.2.    Such designation of beneficiary may be changed by the Participant at any time by written notice to the Committee. In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant's death, the Committee shall deliver such Shares and/or cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Committee), the Committee, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Committee, then to such other person as the Committee may designate.

ARTICLE XVIII

Miscellaneous

18.1.    If a Participant disposes of any Shares received by him or her pursuant to an Option within two (2) years after the Commencement Date or within one (1) year after the Exercise Date of the Offering Period to which such Option relates, the Participant shall notify Selective in writing within 30 days after the date of any such disposition, and shall provide such details of the disposition, including the date of the disposition, as the Committee may require.

18.2.    No provision of the Plan or transaction hereunder shall confer upon any Participant any right to be employed by the Company or any Subsidiary or affiliate thereof, or to interfere in any way with the right of the Company to increase or decrease the amount of any compensation payable to such Participant.

18.3.    Each Participant who purchases Shares under the Plan shall thereby be deemed to have agreed that the Company shall be entitled to withhold, from any other amounts that may be payable to the Participant at or around the time of the purchase, such federal, state, local and foreign income, employment and other taxes which may be required to be withheld under applicable laws. In lieu of such withholding, the Company may require the Participant to remit such taxes to the Company as a condition of the purchase.

18.4.    In the event that any provision of the Plan shall be declared illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan but shall be fully severable, and the Plan shall be construed and enforced as if such illegal or invalid provision had never been a part of the Plan.

18.5.    The validity, construction, and effect of the Plan shall be determined in accordance with the laws of the State of New Jersey, without giving effect to principles of conflicts of laws, to the extent not preempted by federal law.

9

EX-11

Exhibit 11

SELECTIVE INSURANCE GROUP, INC. AND CONSOLIDATED SUBSIDIARIES

COMPUTATION OF EARNINGS PER COMMON SHARE

First Quarter 2021	Income (Numerator)		Shares (Denominator)	Per Share Amount
(in thousands, except per share amounts)
Basic Earnings Per Common Share ("EPS"):
Net income available to common stockholders	$	106,817	60,087	$	1.78
Effect of dilutive securities:
Stock compensation plans	—		378
Diluted EPS:
Net income available to common stockholders	$	106,817	60,465	$	1.77
First Quarter 2020	Income (Numerator)		Shares (Denominator)	Per Share Amount
(in thousands, except per share amounts)
Basic EPS:
Net income available to common stockholders	$	15,236	59,712	$	0.26
Effect of dilutive securities:
Stock compensation plans	—		495
Diluted EPS:
Net income available to common stockholders	$	15,236	60,207	$	0.25

EX-31.1

Exhibit 31.1

Certification pursuant to Rule 13a-14(a), as adopted pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, JOHN J. MARCHIONI, President and Chief Executive Officer of Selective Insurance Group, Inc. (the “Company”), certify, that:

1. I have reviewed this quarterly report on Form 10-Q of the Company;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations, comprehensive income and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 29, 2021	By: /s/ John J. Marchioni
		John J. Marchioni
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification pursuant to Rule 13a-14(a), as adopted pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, MARK A. WILCOX, Executive Vice President and Chief Financial Officer of Selective Insurance Group, Inc. (the “Company”), certify, that:

1. I have reviewed this quarterly report on Form 10-Q of the Company;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations, comprehensive income and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 29, 2021	By: /s/ Mark A. Wilcox
		Mark A. Wilcox
		Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

I, JOHN J. MARCHIONI , President and Chief Executive Officer of Selective Insurance Group, Inc. (the “Company”), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the quarterly report on Form 10-Q of the Company for the quarterly period ended March 31, 2021 (the “Form 10-Q”), which this certification accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 29, 2021	By: /s/ John J. Marchioni
		John J. Marchioni
		President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

I, MARK A. WILCOX, Executive Vice President and Chief Financial Officer of Selective Insurance Group, Inc. (the “Company”), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the quarterly report on Form 10-Q of the Company for the quarterly period ended March 31, 2021 (the “Form 10-Q”), which this certification accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 29, 2021	By: /s/ Mark A. Wilcox
		Mark A. Wilcox
		Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	Apr. 16, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-33067
Entity Registrant Name	SELECTIVE INSURANCE GROUP, INC
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	22-2168890
Entity Address, Address Line One	40 Wantage Avenue
Entity Address, City or Town	Branchville
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07890
City Area Code	973
Local Phone Number	948-3000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		60,024,254
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000230557
Current Fiscal Year End Date	--12-31
Noncumulative Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, without par value
Trading Symbol	SIGIP
Security Exchange Name	NASDAQ
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $2 per share
Trading Symbol	SIGI
Security Exchange Name	NASDAQ

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
ASSETS
Fixed income securities, held-to-maturity, carrying value, Gross	$ 24,370	$ 16,846
Fixed income securities, held-to-maturity, allowance for credit losses	(26)	(22)
Total HTM fixed income securities carrying value	24,344	16,824
Fixed income securities, available-for-sale, at fair value	6,521,641	6,455,928
Commercial mortgage loans, carrying value, Gross	61,066	46,306
Less: allowance for credit losses	0	0
Commercial mortgage loans, net of allowance for credit losses	61,066	46,306
Equity Securities, fair value	324,255	310,367
Short-term investments	337,807	409,852
Other investments	290,153	266,322
Total investments (Note 4 and 5)	7,559,266	7,505,599
Cash	488	394
Restricted cash	8,428	14,837
Interest and dividends due or accrued	46,072	45,004
Premiums receivable	916,196	857,014
Less: allowance for credit losses (Note 6)	(21,000)	(21,000)
Premiums receivable, net of allowance for credit losses	895,196	836,014
Reinsurance recoverable	582,696	589,269
Allowance for credit losses	(1,840)	(1,777)
Reinsurance recoverables, net of allowance for credit losses	580,856	587,492
Prepaid reinsurance premiums	168,575	170,531
Property and equipment, at cost, net of accumulated depreciation and amortization	76,096	77,696
Deferred policy acquisition costs	302,652	288,578
Goodwill	7,849	7,849
Other assets	203,134	153,919
Total assets	9,848,612	9,687,913
Liabilities And Stockholders' Equity
Reserve for loss and loss expense (Note 8)	4,360,188	4,260,355
Unearned premiums	1,689,533	1,618,271
Long-term Debt	550,904	550,743
Current federal income tax	41,983	14,021
Deferred federal income tax	2,311	27,096
Accrued salaries and benefits	83,652	114,868
Other liabilities	375,996	363,670
Total liabilities	7,104,567	6,949,024
Stockholders' Equity:
Preferred stock of $0 par value per share: Authorized shares 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share - 2021 and 2020	200,000	200,000
Common stock of $2 par value per share: Authorized shares 360,000,000; Issued: 104,287,791 - 2021; 104,032,912 - 2020	208,576	208,066
Additional paid-in capital	446,410	438,985
Retained Earnings	2,363,189	2,271,537
Accumulated Other Comprehensive Income (Note 11)	134,600	220,186
Treasury Stock, at cost. Shares: 44,263,908 - 2021; 44,127,109 - 2020. (Note 12)	(608,730)	(599,885)
Total stockholders' equity	2,744,045	2,738,889
Commitments and contingencies
Total liabilities and stockholders' equity	$ 9,848,612	$ 9,687,913

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues:
Net premiums earned	$ 724,960	$ 651,703
Net investment income earned	69,716	55,967
Net realized and unrealized investment gains (losses)	5,119	(44,666)
Other income	4,112	1,825
Total revenues	803,907	664,829
Expenses:
Loss and loss expense incurred	413,401	400,324
Amortization of deferred policy acquisition costs	149,051	136,501
Other insurance expenses	88,910	95,346
Interest expense	7,359	7,601
Corporate expenses	9,554	9,060
Total expenses	668,275	648,832
Income before federal income tax	135,632	15,997
Federal income tax expense:
Current	28,424	9,886
Deferred	(2,062)	(9,125)
Total federal income tax expense	26,362	761
Net income	109,270	15,236
Preferred stock dividends	2,453	0
Net Income available to common stockholders	$ 106,817	$ 15,236
Earnings per common share:
Net income available to common stockholders - Basic	$ 1.78	$ 0.26
Net income available to common stockholders - Diluted	$ 1.77	$ 0.25

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net income	$ 109,270	$ 15,236
Unrealized holding losses arising during period	(81,613)	(74,245)
Unrealized losses on securities with credit loss recognized in earnings	(8,943)	(51,658)
Amounts reclassified into net income: Held-to-maturity securities	(2)	20
Amounts reclassified into net income: Net realized losses on disposals and intent-to-sell AFS securities	477	8,948
Amounts reclassified into net income: Credit loss expense	3,948	12,472
Total Unrealized Losses on Investment Securities, Net	(86,133)	(104,463)
Amount reclassified into net income: Net actuarial loss	547	596
Total defined benefit pension and post-retirement plans, Net	547	596
Other Comprehensive loss, Net	(85,586)	(103,867)
Comprehensive Income (Loss), Net	$ 23,684	$ (88,631)

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional paid-in capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Accounting Standards Update 2016-13 [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment	Accumulated other comprehensive income (loss) [Member]	Treasury stock [Member]	Preferred Stock
Preferred Stock, Shares Outstanding	0
Beginning of year at Dec. 31, 2019		$ 206,968	$ 418,521	$ 2,080,529	$ 1,435	$ 2,081,964	$ 81,750	$ (592,832)	$ 0
Issuance of preferred stock									0
Dividend reinvestment plan		14	408
Stock purchase and compensation plans		683	8,399
Net income	$ 15,236			15,236
Dividends to preferred stockholders				0
Dividends to common stockholders				(13,860)
Other comprehensive loss	(103,867)						(103,867)
Acquisition of treasury stock - share repurchase authorization								0
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans								(6,928)
End of period at Mar. 31, 2020	$ 2,096,456	207,665	427,328	2,083,340			(22,117)	(599,760)	$ 0
Dividends declared per share to preferred stockholders	$ 0
Dividends declared per share to common stockholders	$ 0.23
Stock Issued During Period, Shares, New Issues									0
Common stock, shares outstanding, beginning of period at Dec. 31, 2019	59,461,153
Dividend reinvestment plan, shares	6,975
Stock purchase and compensation plan, shares	341,236
Acquisition of treasury stock, share repurchase authorization	0
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans	(101,819)
Common stock, shares outstanding, end of period at Mar. 31, 2020	59,707,545
Preferred Stock, Shares Outstanding	0
Preferred Stock, Shares Outstanding	8,000
Beginning of year at Dec. 31, 2020	$ 2,738,889	208,066	438,985	2,271,537	$ 0	$ 2,271,537	220,186	(599,885)	$ 200,000
Issuance of preferred stock									0
Dividend reinvestment plan		13	429
Stock purchase and compensation plans		497	6,996
Net income	109,270			109,270
Dividends to preferred stockholders				(2,453)
Dividends to common stockholders				(15,165)
Other comprehensive loss	(85,586)						(85,586)
Acquisition of treasury stock - share repurchase authorization	(3,400)							(3,404)
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans								(5,441)
End of period at Mar. 31, 2021	$ 2,744,045	$ 208,576	$ 446,410	$ 2,363,189			$ 134,600	$ (608,730)	$ 200,000
Dividends declared per share to preferred stockholders	$ 306.67
Dividends declared per share to common stockholders	$ 0.25
Stock Issued During Period, Shares, New Issues									0
Common stock, shares outstanding, beginning of period at Dec. 31, 2020	59,905,803
Dividend reinvestment plan, shares	6,420
Stock purchase and compensation plan, shares	248,459
Acquisition of treasury stock, share repurchase authorization	(52,781)
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans	(84,018)
Common stock, shares outstanding, end of period at Mar. 31, 2021	60,023,883
Preferred Stock, Shares Outstanding	8,000

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Activities
Net income	$ 109,270	$ 15,236
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	13,703	15,415
Stock-based compensation expense	6,493	7,038
Undistributed gains of equity method investments	(13,905)	(5,602)
Distributions in excess of current year income of equity method investments	2,309	614
Net realized and unrealized (gains) losses	(5,119)	44,666
Loss on disposal of fixed assets	3	14
Changes in assets and liabilities:
Increase in reserve for loss and loss expense, net of reinsurance recoverable	106,468	49,077
Increase (decrease) in unearned premiums, net of prepaid reinsurance	73,218	(4,376)
Increase in net federal income taxes	25,927	276
(Increase) decrease in premiums receivable	(59,182)	25,572
(Increase) decrease in deferred policy acquisition costs	(14,074)	1,605
(Increase) decrease in interest and dividends due or accrued	(1,101)	880
Decrease in accrued salaries and benefits	(31,216)	(52,722)
(Increase) decrease in other assets	(14,302)	4,583
Decrease in other liabilities	(68,236)	(62,959)
Net Cash Provided by Operating Activities	130,256	39,317
Investing Activities
Purchase of fixed income securities, held-to-maturity	(9,000)	0
Purchase of fixed income securities, available-for-sale	(671,909)	(319,539)
Purchase of commercial mortgage loans	(14,860)	(14,096)
Purchase of equity securities	(48,910)	(45,511)
Purchase of other investments	(18,589)	(27,433)
Purchase of short-term investments	(1,723,212)	(2,086,599)
Sale of fixed income securities, available-for-sale	212,891	101,671
Proceeds from commercial mortgage loans	99	0
Sale of short-term investments	1,795,239	1,851,532
Redemption and maturities of fixed income securities, held-to-maturity	1,461	405
Redemption and maturities of fixed income securities, available-for-sale	319,469	227,686
Sale of equity securities	42,782	1,320
Sale of other investments	3,004	0
Distributions from other investments	5,162	3,152
Purchase of property and equipment	(4,561)	(8,416)
Net Cash Used in Investing Activities	(110,934)	(315,828)
Financing Activities
Dividends to preferred stockholders	(2,453)	0
Dividends to common stockholders	(14,569)	(13,313)
Acquisition of treasury stock	(8,845)	(6,928)
Net proceeds from stock purchase and compensation plans	824	1,525
Preferred stock issued, net of issuance costs	(479)	0
Proceeds from borrowings	0	387,000
Repayments of borrowings	0	(85,000)
Repayments of finance lease obligations	(115)	(142)
Net Cash (used in) provided by Financing Activities	(25,637)	283,142
Cash and restricted cash, beginning of year	15,231	7,975
Cash and restricted cash, end of period	8,916	14,606
Net (decrease) increase in cash and restricted cash	$ (6,315)	$ 6,631

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Fixed income securities, held-to-maturity, fair value	$ 25,204	$ 18,001
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(8,781)	(3,969)
Fixed income securities, available-for-sale, amortized cost	6,253,077	6,073,517
Commercial mortgage loan, fair value	62,233	47,289
Equity Securities, cost	304,159	301,551
Property and equipment, accumulated depreciation and amortization	$ 245,844	$ 240,150
Preferred Stock, Shares Outstanding	8,000	8,000
Preferred Stock
Preferred stock, Par or Stated Value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Series B
Preferred Stock, Liquidation Preference (in dollars per share)	$ 25,000	$ 25,000
Preferred stock, shares issued	8,000	8,000
Preferred Stock, Shares Outstanding	8,000	8,000
Common Stock [Member]
Common stock, Par or Stated Value (in dollars per share)	$ 2	$ 2
Common stock, shares authorized	360,000,000	360,000,000
Common stock, shares issued	104,287,791	104,032,912
Treasury stock [Member]
Treasury stock, shares	44,263,908	44,127,109

XML

Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Basis of Presentation And Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe 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 U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. These require us 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 between the Parent and its subsidiaries 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 first quarters ended March 31, 2021 (“First Quarter 2021”) and March 31, 2020 (“First Quarter 2020”). Our Financial Statements do not include all information and disclosures required by GAAP and the SEC for audited annual financial statements. Because results of operations for any interim period are not necessarily indicative of results for a full year, our Financial Statements should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”) filed with the SEC.

XML

Accounting Pronouncements

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Accounting Pronouncements

Adoption of Accounting Pronouncements 

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). Among other items, ASU 2019-12 simplifies the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. ASU 2019-12 provides that all effects of a tax law change, including adjustment of the estimated annual effective tax rate, are recognized in the period of enactment.

For year-to-date losses in interim periods, an entity is required currently to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. When an interim period loss exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this limitation and an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate.

We adopted this guidance on January 1, 2021, and it did not have a material impact to our financial condition, cash flows, or results of operations.

Pronouncements to be effective in the future

In March 2020, the FASB issued 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 guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected 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, 2022. We are currently evaluating the impact of this guidance on our financial condition and results of operations.

XML

Statements of Cash Flows

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Information [Abstract]

Statements of Cash Flows

Statements of Cash Flows

Supplemental cash flow information was as follows:

	Quarter ended March 31,
($ in thousands)	2021		2020
Cash paid during the period for:
Interest	$	8,722	8,854
Federal income tax	—		—
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,226		2,130
Operating cash flows from financing leases	2		6
Financing cash flows from finance leases	115		142
Non-cash items:
Corporate actions related to fixed income securities, AFS1	26,085		8,040
Corporate actions related to fixed income securities, HTM1	—		2,596
Assets acquired under finance lease arrangements	183		29
Assets acquired under operating lease arrangements	16		3,828
Non-cash purchase of property and equipment	3		5

1Examples of corporate actions include 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)	March 31, 2021		December 31, 2020
Cash	$	488	394
Restricted cash	8,428		14,837
Total cash and restricted cash shown in the Statements of Cash Flows	$	8,916	15,231

Amounts included in restricted cash represent cash received from the National Flood Insurance Program ("NFIP"), which is restricted to pay flood claims under the Write Your Own program.

XML

Investments

3 Months Ended

Mar. 31, 2021

Investments [Abstract]

Investments

Investments

(a) Information about our AFS securities as of March 31, 2021, and December 31, 2020, is as follows:

March 31, 2021
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	134,725	—	3,653	(2,104)	136,274
Foreign government	18,920		(56)	974	(136)	19,702
Obligations of states and political subdivisions	1,140,442		(201)	74,212	(360)	1,214,093
Corporate securities	2,239,066		(6,166)	122,761	(9,870)	2,345,791
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	1,188,670		(1,470)	18,917	(4,052)	1,202,065
Residential mortgage-backed securities ("RMBS")	906,266		(864)	43,367	(1,229)	947,540
Commercial mortgage-backed securities ("CMBS")	624,988		(24)	33,590	(2,378)	656,176
Total AFS fixed income securities	$	6,253,077	(8,781)	297,474	(20,129)	6,521,641

December 31, 2020
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	110,038	—	6,239	(137)	116,140
Foreign government	16,801		(1)	1,569	(3)	18,366
Obligations of states and political subdivisions	1,159,588		(4)	87,564	(11)	1,247,137
Corporate securities	2,152,203		(2,782)	180,971	(2,340)	2,328,052
CLO and other ABS	1,014,820		(592)	20,166	(7,843)	1,026,551
RMBS	999,485		(561)	53,065	(201)	1,051,788
CMBS	620,582		(29)	48,348	(1,007)	667,894
Total AFS fixed income securities	$	6,073,517	(3,969)	397,922	(11,542)	6,455,928

The following tables provide a roll forward of the allowance for credit losses on our AFS fixed income securities for the periods indicated:

Quarter ended March 31, 2021
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	1	56	(1)	—	—	56
Obligations of states and political subdivisions	4		186	11	—	—	201
Corporate securities	2,782		4,058	(527)	(147)	—	6,166
CLO and other ABS	592		1,001	(106)	(17)	—	1,470
RMBS	561		356	(39)	(14)	—	864
CMBS	29		10	(15)	—	—	24
Total AFS fixed income securities	$	3,969	5,667	(677)	(178)	—	8,781

Quarter ended March 31, 2020
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	—	21	—	—	—	21
Obligations of states and political subdivisions	—		29	—	—	—	29
Corporate securities	—		13,412	—	—	—	13,412
CLO and other ABS	—		1,565	—	—	—	1,565
RMBS	—		722	—	—	—	722
CMBS	—		38	—	—	—	38
Total AFS fixed income securities	$	—	15,787	—	—	—	15,787

For information on our methodology and significant inputs used to measure the amount related to credit loss, 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 2020 Annual Report. Accrued interest on AFS securities was $44.7 million as of March 31, 2021, and $43.8 million as of December 31, 2020. We did not record any write-offs during 2021 or 2020.

(b) Quantitative information about unrealized losses on our AFS portfolio is provided below.

March 31, 2021	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	53,796	(2,104)	—	—	53,796	(2,104)
Foreign government	3,313		(136)	—	—	3,313	(136)
Obligations of states and political subdivisions	18,838		(352)	369	(8)	19,207	(360)
Corporate securities	306,052		(8,560)	14,025	(1,310)	320,077	(9,870)
CLO and other ABS	282,939		(1,737)	105,261	(2,315)	388,200	(4,052)
RMBS	76,684		(1,229)	—	—	76,684	(1,229)
CMBS	70,510		(2,089)	23,474	(289)	93,984	(2,378)
Total AFS fixed income securities	$	812,132	(16,207)	143,129	(3,922)	955,261	(20,129)

December 31, 2020	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	11,519	(137)	—	—	11,519	(137)
Foreign government	1,122		(3)	—	—	1,122	(3)
Obligations of states and political subdivisions	2,223		(11)	—	—	2,223	(11)
Corporate securities	65,187		(2,152)	2,400	(188)	67,587	(2,340)
CLO and other ABS	261,746		(2,995)	165,661	(4,848)	427,407	(7,843)
RMBS	18,227		(194)	1,181	(7)	19,408	(201)
CMBS	55,482		(616)	16,093	(391)	71,575	(1,007)
Total AFS fixed income securities	$	415,506	(6,108)	185,335	(5,434)	600,841	(11,542)

We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. The increase in gross unrealized losses during First Quarter 2021 was driven by a significant increase in longer-dated benchmark United States Treasury rates, offset in part by tightening credit spreads as a result of reduced uncertainty in the marketplace. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" of our 2020 Annual Report, we have concluded that no allowance for credit loss is required on these balances. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral.

(c) Fixed income securities at March 31, 2021 are summarized below by contractual maturity. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. 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. 

	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	453,772	1,057	1,065
Due after one year through five years	3,400,223		14,433	15,325
Due after five years through 10 years	2,043,563		8,854	8,814
Due after 10 years	624,083		—	—
Total fixed income securities	$	6,521,641	24,344	25,204

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

Other Investments	March 31, 2021				December 31, 2020
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	182,032	104,070	286,102	157,276	100,905	258,181
Private credit	56,819		98,072	154,891	54,017	98,330	152,347
Real assets	19,689		15,891	35,580	19,659	16,493	36,152
Total alternative investments	258,540		218,033	476,573	230,952	215,728	446,680
Other securities	31,613		—	31,613	35,370	—	35,370
Total other investments	$	290,153	218,033	508,186	266,322	215,728	482,050

1The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant.

We are contractually committed to make additional investments up to the remaining commitments stated above, but we do not have a future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2021 or 2020.

The following table shows gross summarized financial information for our other investments portfolio, including the portion we do not own. The majority of these investments are carried under the equity method of accounting and report results to us on a one-quarter lag. The following table provides (i) the gross summarized financial statement information for these investments for the three-months ended December 31, and (ii) the portion of these results that are included in our First Quarter results:

Income Statement Information	Quarter ended March 31,
($ in millions)	2021		2020
Net investment income	$	481.6	12.7
Realized gains	776.0		164.8
Net change in unrealized appreciation	4,630.8		1,204.0
Net income	$	5,888.4	1,381.5
Insurance Subsidiaries’ alternative investments income	$	20.2	6.3

(e) Certain Insurance Subsidiaries, as members of the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"), have pledged certain AFS fixed income securities as collateral. Additionally, to comply with insurance laws, certain Insurance Subsidiaries have deposited certain securities with various state and regulatory agencies at March 31, 2021. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at March 31, 2021:

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	21.0	21.0
Obligations of states and political subdivisions	—		—	5.0	5.0
RMBS	93.7		155.5	—	249.2
CMBS	6.9		35.1	—	42.0
Total pledged as collateral	$	100.6	190.6	26.0	317.2

(f) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government-backed investments, as of March 31, 2021, or December 31, 2020.

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

	Quarter ended March 31,
($ in thousands)	2021		2020
Fixed income securities	$	52,823	50,253
Commercial mortgage loans ("CMLs")	514		62
Equity securities	2,488		1,552
Short-term investments	85		1,166
Other investments	17,433		6,342
Investment expenses	(3,627)		(3,408)
Net investment income earned	$	69,716	55,967

The increase in net investment income earned in First Quarter 2021 compared to First Quarter 2020 was driven by the alternative investments in our other investments portfolio, and it reflects the improvement in the equity markets in the fourth quarter of 2020 as our results on these holdings are recorded on a one-quarter lag.

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

	Quarter ended March 31,
($ in thousands)	2021		2020
Gross gains on sales	$	3,676	5,676
Gross losses on sales	(4,471)		(1,576)
Net realized gains (losses) on disposals	(795)		4,100
Net unrealized gains (losses) on equity securities	11,280		(17,137)
Net credit loss expense on fixed income securities, AFS	(4,997)		(15,787)
Net credit loss expense on fixed income securities, HTM	(7)		—
Net credit loss expense on CMLs	—		(240)
Losses on securities for which we have the intent to sell	(362)		(15,602)
Net realized and unrealized gains (losses)	$	5,119	(44,666)

Unrealized gains (losses) recognized in income on equity securities, as reflected in the table above, include the following:

	Quarter ended March 31,
($ in thousands)	2021		2020
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at March 31, 2021	$	10,097	(17,140)
On securities sold during period	1,183		3
Total unrealized gains (losses) recognized in income on equity securities	$	11,280	(17,137)

The improvement in net realized and unrealized gains was primarily driven by (i) unrealized gains on our equity securities compared to unrealized losses last year, which were driven by COVID-19-related market disruption, and (ii) lower intent-to-sell losses as we provided our investment managers significant trading flexibility last year given market conditions.

XML

Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

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 estimated fair values of our financial liabilities as of March 31, 2021, and December 31, 2020:

	March 31, 2021			December 31, 2020
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	49,915		60,613	49,914	66,148
6.70% Senior Notes	99,504		119,818	99,499	127,886
5.375% Senior Notes	294,263		347,155	294,241	383,669
1.61% borrowings from FHLBNY	25,000		25,107	25,000	25,182
1.56% borrowings from FHLBNY	25,000		25,127	25,000	25,198
3.03% borrowings from FHLBI	60,000		65,337	60,000	67,513
Subtotal long-term debt	553,682		643,157	553,654	695,596
Unamortized debt issuance costs	(3,355)			(3,419)
Finance lease obligations	577			508
Total long-term debt	$	550,904		550,743

For a discussion of the fair value hierarchy and techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at March 31, 2021, and December 31, 2020:

March 31, 2021			Fair Value Measurements Using
($ in thousands)	Assets  Measured at  Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1	Significant Other  Observable Inputs  (Level 2)1	Significant Unobservable  Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	136,274	58,540	77,734	—
Foreign government	19,702		—	19,702	—
Obligations of states and political subdivisions	1,214,093		—	1,206,197	7,896
Corporate securities	2,345,791		—	2,256,469	89,322
CLO and other ABS	1,202,065		—	1,137,176	64,889
RMBS	947,540		—	947,540	—
CMBS	656,176		—	656,176	—
Total AFS fixed income securities	6,521,641		58,540	6,300,994	162,107
Equity securities:
Common stock1	322,557		269,017	—	—
Preferred stock	1,698		1,698	—	—
Total equity securities	324,255		270,715	—	—
Short-term investments	337,807		337,075	732	—
Total assets measured at fair value	$	7,183,703	666,330	6,301,726	162,107

December 31, 2020			Fair Value Measurements Using
($ in thousands)	Assets  Measured at  Fair Value		Quoted Prices in  Active Markets for Identical Assets/Liabilities (Level 1)1	Significant Other Observable Inputs  (Level 2)1	Significant Unobservable Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	116,140	40,960	75,180	—
Foreign government	18,366		—	18,366	—
Obligations of states and political subdivisions	1,247,137		—	1,244,243	2,894
Corporate securities	2,328,052		—	2,257,352	70,700
CLO and other ABS	1,026,551		—	970,176	56,375
RMBS	1,051,788		—	1,051,788	—
CMBS	667,894		—	667,894	—
Total AFS fixed income securities	6,455,928		40,960	6,284,999	129,969
Equity securities:
Common stock1	308,632		261,846	—	—
Preferred stock	1,735		1,735	—	—
Total equity securities	310,367		263,581	—	—
Short-term investments	409,852		405,400	4,452	—
Total assets measured at fair value	$	7,176,147	709,941	6,289,451	129,969

1Investments amounting to $53.5 million at March 31, 2021, and $46.8 million at December 31, 2020, were measured at fair value using net asset value per share (or its practical expedient) and are not 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 presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

The following table provides a summary of Level 3 changes in First Quarter 2021 and First Quarter 2020:

March 31, 2021
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	Total
Fair value, December 31, 2020	$	2,894	70,700	56,375	129,969
Total net (losses) gains for the period included in:
OCI	(99)		(2,388)	(1,116)	(3,603)
Net realized and unrealized (losses) gains	—		(91)	(143)	(234)
Net investment income earned	—		1	3	4
Purchases	—		21,100	10,672	31,772
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		—	(412)	(412)
Transfers into Level 3	5,101		—	—	5,101
Transfers out of Level 3	—		—	(490)	(490)
Fair value, March 31, 2021	7,896		89,322	64,889	162,107
Change in unrealized (losses) gains for the period included in earnings for assets held at period end	—		(91)	(143)	(234)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	(99)		(2,388)	(1,116)	(3,603)

March 31, 2020
($ in thousands)	Obligation of state and Political Subdivisions		Corporate Securities	CLO and Other ABS	Total
Fair value, December 31, 2019	$	—	17,051	17,034	34,085
Total net (losses) gains for the period included in:
OCI	—		1	(1,756)	(1,755)
Net realized and unrealized (losses) gains	—		(61)	(214)	(275)
Net investment income earned	—		—	—	—
Purchases	—		3,002	4,831	7,833
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		—	—	—
Transfers into Level 3	2,890		4,192	20,107	27,189
Transfers out of Level 3	—		—	(3,630)	(3,630)
Fair value, March 31, 2020	$	2,890	24,185	36,372	63,447
Change in unrealized gains (losses) for the period included in earnings for assets held at period end	—		(61)	(214)	(275)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	—		1	(1,756)	(1,755)

The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at March 31, 2021, and December 31, 2020:

March 31, 2021			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	$	4,738	—	4,738	—
Corporate securities	20,466		—	20,466	—
Total HTM fixed income securities	$	25,204	—	25,204	—
CMLs	$	62,233	—	—	62,233
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	60,613	—	60,613	—
6.70% Senior Notes	119,818		—	119,818	—
5.375% Senior Notes	347,155		—	347,155	—
1.61% borrowings from FHLBNY	25,107		—	25,107	—
1.56% borrowings from FHLBNY	25,127		—	25,127	—
3.03% borrowings from FHLBI	65,337		—	65,337	—
Total long-term debt	$	643,157	—	643,157	—

December 31, 2020			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	$	4,795	—	4,795	—
Corporate securities	13,206		—	13,206	—
Total HTM fixed income securities	$	18,001	—	18,001	—
CMLs	$	47,289	—	—	47,289
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	66,148	—	66,148	—
6.70% Senior Notes	127,886		—	127,886	—
5.375% Senior Notes	383,669		—	383,669	—
1.61% borrowings from FHLBNY	25,182		—	25,182	—
1.56% borrowings from FHLBNY	25,198		—	25,198	—
3.03% borrowings from FHLBI	67,513		—	67,513	—
Total long-term debt	$	695,596	—	695,596	—

XML

Allowance for Uncollectible Premiums Receivable (Notes)

3 Months Ended

Mar. 31, 2021

Premiums Receivable [Abstract]

Allowance for Uncollectible Premiums Receivable Note [Text Block]

Premiums Receivable

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

	Quarter ended March 31,
($ in thousands)	2021		2020
Balance at beginning of period	$	21,000	$	6,400
Cumulative effect adjustment1	—		1,058
Balance at beginning of period, as adjusted	$	21,000	$	7,458
Current period provision for expected credit losses	808		11,195
Write-offs charged against the allowance for credit losses	(874)		(653)
Recoveries	66		—
Allowance for credit losses, end of period	$	21,000	$	18,000

1Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

In First Quarter 2020, we recognized an additional allowance for credit losses of $10.5 million, net of write-offs and recoveries. We based this increase on an evaluation of the recoverability of our premiums receivable in light of (i) the billing accommodations we announced during the first quarter of 2020 and (ii) the impact of certain state regulations that provided for deferral of payments without cancellation for a period up to 90 days and increased earned but uncollected premiums. The billing accommodations included individualized payment flexibility and suspending the effect of policy cancellations, late payment notices, and late or reinstatement fees. The heightened credit risk experienced in 2020 that resulted in the allowance for credit losses being increased to $21.0 million in the second quarter of 2020 returned to pre-COVID-19 levels in 2021, and our allowance for credit losses has remained at $21.0 million, which is consistent with the reserve as of December 31, 2020. The existing allowance is expected to absorb anticipated write-offs that will occur over the corresponding collections cycle, which could last more than a year.

XML

Reinsurance

3 Months Ended

Mar. 31, 2021

Reinsurance Disclosures [Abstract]

Reinsurance

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 March 31, 2021, and December 31, 2020:

	March 31, 2021
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers1
A++	$	37,939	$	108	$	38,047
A+	352,386		4,032		356,418
A	105,068		387		105,455
A-	2,177		—		2,177
B++	117		264		381
B+	—		—		—
Total rated reinsurers	$	497,687	$	4,791	$	502,478
Non-rated reinsurers
Federal and state pools	$	76,179	$	—	$	76,179
Other than federal and state pools	3,179		860		4,039
Total non-rated reinsurers	$	79,358	$	860	$	80,218
Total reinsurance recoverable, gross	$	577,045	$	5,651	$	582,696
Less: allowance for credit losses2					(1,840)
Total reinsurance recoverable, net					$	580,856

1Credit ratings as of March 31, 2021.

2Represents our current expectation of credit losses on total current and past due reinsurance recoverables, and is not identifiable by reinsurer.

	December 31, 2020
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers1
A++	$	37,464	$	102	$	37,566
A+	354,846		2,452		357,298
A	105,652		415		106,067
A-	2,139		—		2,139
B++	56		324		380
B+	—		—		—
Total rated reinsurers	$	500,157	$	3,293	$	503,450
Non-rated reinsurers
Federal and state pools	$	82,575	$	—	$	82,575
Other than federal and state pools	2,676		568		3,244
Total non-rated reinsurers	$	85,251	$	568	$	85,819
Total reinsurance recoverable, gross	$	585,408	$	3,861	$	589,269
Less: allowance for credit losses2					(1,777)
Total reinsurance recoverable, net					$	587,492

For a discussion of the methodology used to evaluate our estimate of expected credit losses, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.

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

($ in thousands)	Quarter ended March 31,
	2021		2020
Balance at beginning of period	$	1,777	$	4,400
Cumulative effect adjustment1	—		(2,903)
Balance at beginning of period, as adjusted	$	1,777	$	1,497
Current period provision for expected credit losses	63		5
Write-offs charged against the allowance for credit losses	—		—
Recoveries	—		—
Allowance for credit losses, end of period	$	1,840	1,502

1Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information about reinsurance, refer to Note 9. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report.

	Quarter ended March 31,
($ in thousands)	2021		2020
Premiums written:
Direct	$	908,774	746,431
Assumed	5,533		6,043
Ceded	(116,129)		(105,147)
Net	$	798,178	647,327
Premiums earned:
Direct	$	837,369	754,892
Assumed	5,676		6,173
Ceded	(118,085)		(109,362)
Net	$	724,960	651,703
Loss and loss expenses incurred:
Direct	$	441,507	425,795
Assumed	3,447		4,898
Ceded	(31,553)		(30,369)
Net	$	413,401	400,324

Direct premiums written ("DPW") increased $162 million, or 22%, in First Quarter 2021 compared to First Quarter 2020. The increase included 11 percentage points from the $75 million return audit and mid-term endorsement premium accrual that was recorded in First Quarter 2020, resulting in remaining growth of $87 million in First Quarter 2021. This accrual reflected lower exposure levels, which determine the premium we charge, attributable to the economic impacts of the COVID-19 pandemic and the anticipated decline in sales and payroll exposures on the general liability and workers compensation lines of business.

Ceded premiums written, ceded premiums earned, and ceded loss and loss expenses incurred related to our participation in the NFIP, to which we cede 100% of our flood premiums, losses, and loss expenses, were as follows:

Ceded to NFIP	Quarter ended March 31,
($ in thousands)	2021		2020
Ceded premiums written	$	(65,742)	(62,087)
Ceded premiums earned	(67,519)		(66,861)
Ceded loss and loss expenses incurred	(2,207)		(5,096)

XML

Reserve for Loss and Loss Expense

3 Months Ended

Mar. 31, 2021

Insurance Loss Reserves [Abstract]

Reserve for Loss and Loss Expense

Reserve for Loss and Loss Expense

The table below provides a roll forward of reserve for loss and loss expense balances:

	Quarter ended March 31,
($ in thousands)	2021		2020
Gross reserve for loss and loss expense, at beginning of year	$	4,260,355	4,067,163
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year1	554,269		547,066
Net reserve for loss and loss expense, at beginning of year	3,706,086		3,520,097
Incurred loss and loss expense for claims occurring in the:
Current year	447,170		407,276
Prior years	(33,769)		(6,952)
Total incurred loss and loss expense	413,401		400,324
Paid loss and loss expense for claims occurring in the:
Current year	80,158		70,610
Prior years	243,687		281,736
Total paid loss and loss expense	323,845		352,346
Net reserve for loss and loss expense, at end of period	3,795,642		3,568,075
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	564,546		535,560
Gross reserve for loss and loss expense at end of period	$	4,360,188	4,103,635

1First Quarter 2020 includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

Prior year reserve development in First Quarter 2021 was favorable by $33.8 million, which included $35.0 million of casualty reserve development that was partially offset by $1.2 million of unfavorable property reserve development. The favorable casualty reserve development included $15.0 million of development in our workers compensation lines of business, $15.0 million in our general liability line of business, and $5.0 million in our Excess and Surplus ("E&S") casualty lines of business.

Prior year reserve development in First Quarter 2020 was favorable by $7.0 million and included $10.0 million of favorable casualty reserve development in our workers compensation line of business that was partially offset by $3.0 million of unfavorable property reserve development.

XML

Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

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 before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and 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, which are not included in non-GAAP operating income, are also included in our Investment segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses, nor do we allocate assets.

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

Revenue by Segment	Quarter ended March 31,
($ in thousands)	2021		2020
Standard Commercial Lines:
Net premiums earned:
Commercial property	$	102,810	93,869
Workers compensation	78,190		66,706
General liability	193,520		164,580
Commercial automobile	171,881		149,690
Businessowners' policies	28,627		27,036
Bonds	8,593		9,639
Other	5,520		5,060
Miscellaneous income	3,707		1,391
Total Standard Commercial Lines revenue	592,848		517,971
Standard Personal Lines:
Net premiums earned:
Personal automobile	41,393		42,487
Homeowners	30,598		31,490
Other	1,830		2,151
Miscellaneous income	405		434
Total Standard Personal Lines revenue	74,226		76,562
E&S Lines:
Net premiums earned:
Casualty lines	43,833		44,072
Property lines	18,165		14,923
Total E&S Lines revenue	61,998		58,995
Investments:
Net investment income	69,716		55,967
Net realized and unrealized investment gains (losses)	5,119		(44,666)
Total Investments revenue	74,835		11,301
Total revenues	$	803,907	664,829

Income Before and After Federal Income Tax	Quarter ended March 31,
($ in thousands)	2021			2020
Standard Commercial Lines:
Underwriting gain, before federal income tax	$	69,499		17,126
Underwriting gain, after federal income tax	54,904			13,529
Combined ratio	88.2		%	96.7
ROE contribution	8.6			2.4
Standard Personal Lines:
Underwriting gain, before federal income tax	$	7,695		387
Underwriting gain, after federal income tax	6,079			306
Combined ratio	89.6		%	99.5
ROE contribution	1.0			0.1
E&S Lines:
Underwriting gain, before federal income tax	$	516		3,844
Underwriting gain, after federal income tax	408			3,037
Combined ratio	99.2		%	93.5
ROE contribution	0.1			0.6
Investments:
Net investment income	$	69,716		55,967
Net realized and unrealized investment gains (losses)	5,119			(44,666)
Total investment segment income, before federal income tax	74,835			11,301
Tax on investment segment income	14,448			1,104
Total investment segment income, after federal income tax	$	60,387		10,197
ROE contribution of after-tax net investment income	8.9			8.5

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended March 31,
($ in thousands)	2021		2020
Underwriting gain
Standard Commercial Lines	$	69,499	17,126
Standard Personal Lines	7,695		387
E&S Lines	516		3,844
Investment income	74,835		11,301
Total all segments	152,545		32,658
Interest expense	(7,359)		(7,601)
Corporate expenses	(9,554)		(9,060)
Income, before federal income tax	$	135,632	15,997
Preferred stock dividends	(2,453)		—
Income available to common stockholders, before federal income tax	$	133,179	15,997

XML

Retirement Plans

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Retirement Plans

Retirement Plans

The primary pension plan for our employees is the Retirement Income Plan for Selective Insurance Company of America (the “Pension Plan”). Selective Insurance Company of America ("SICA") also sponsors the Supplemental Excess Retirement Plan (the “Excess Plan”) and a life insurance benefit plan. All plans are closed to new entrants, and benefits ceased accruing under the Pension Plan and the Excess Plan after March 31, 2016. For more information about SICA's retirement plans, see Note 15. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report.

The following tables provide information about the Pension Plan:

	Pension Plan
	Quarter ended March 31,
($ in thousands)	2021		2020
Net Periodic Pension Cost (Benefit):
Interest cost	$	2,148	2,828
Expected return on plan assets	(5,744)		(5,477)
Amortization of unrecognized net actuarial loss	625		704
Total net periodic pension cost (benefit)1	$	(2,971)	(1,945)

1 The 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.

	Pension Plan
	Quarter ended March 31,
	2021		2020
Weighted-Average Expense Assumptions:
Discount rate	2.68	%	3.33	%
Effective interest rate for calculation of interest cost	2.06		2.95
Expected return on plan assets	5.40		5.80

XML

Comprehensive Income

3 Months Ended

Mar. 31, 2021

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Comprehensive Income

Comprehensive Income

The following are the components of comprehensive income, both gross and net of tax, for First Quarter 2021 and 2020:

First Quarter 2021
($ in thousands)	Gross		Tax	Net
Net income	$	135,632	26,362	109,270
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(103,308)		(21,695)	(81,613)
Unrealized losses on securities with credit loss recognized in earnings	(11,320)		(2,377)	(8,943)
Amounts reclassified into net income:
HTM securities	(2)		—	(2)
Net realized losses on disposals and losses on intent-to-sell AFS securities	604		127	477
Credit loss expense	4,997		1,049	3,948
Total unrealized losses on investment securities	(109,029)		(22,896)	(86,133)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	693		146	547
Total defined benefit pension and post-retirement plans	693		146	547
Other comprehensive loss	(108,336)		(22,750)	(85,586)
Comprehensive income	$	27,296	3,612	23,684
First Quarter 2020
($ in thousands)	Gross		Tax	Net
Net income	$	15,997	761	15,236
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(93,981)		(19,736)	(74,245)
Unrealized losses on securities with credit loss recognized in earnings	(65,390)		(13,732)	(51,658)
Amounts reclassified into net income:
HTM securities	25		5	20
Net realized losses on disposals and losses on intent-to-sell AFS securities	11,327		2,379	8,948
Credit loss expense	15,787		3,315	12,472
Total unrealized losses on investment securities	(132,232)		(27,769)	(104,463)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	754		158	596
Total defined benefit pension and post-retirement plans	754		158	596
Other comprehensive loss	(131,478)		(27,611)	(103,867)
Comprehensive loss	$	(115,481)	(26,850)	(88,631)

The following are the balances and changes in each component of AOCI (net of taxes) as of March 31, 2021:

March 31, 2021						Defined Benefit Pension and Post-Retirement Plans
	Net Unrealized (Losses) Gains on Investment Securities						Total AOCI
($ in thousands)	Credit Loss Related1		HTM Related	All Other	Investments Subtotal
Balance, December 31, 2020	$	(2,546)	6	307,790	305,250	(85,064)	220,186
OCI before reclassifications	(8,943)		—	(81,613)	(90,556)	—	(90,556)
Amounts reclassified from AOCI	3,948		(2)	477	4,423	547	4,970
Net current period OCI	(4,995)		(2)	(81,136)	(86,133)	547	(85,586)
Balance, March 31, 2021	$	(7,541)	4	226,654	219,117	(84,517)	134,600

1Represents change in unrealized loss on securities with credit loss recognized in earnings.

The reclassifications out of AOCI were as follows:

	Quarter ended March 31,			Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2021		2020
HTM related
Unrealized (gains) losses on HTM disposals	$	—	1	Net realized and unrealized investment gains (losses)
Amortization of net unrealized (gains) losses on HTM securities	(2)		24	Net investment income earned
	(2)		25	Income before federal income tax
	—		(5)	Total federal income tax expense
	(2)		20	Net income
Net realized losses on disposals and intent-to-sell AFS securities
Net realized losses on disposals and intent-to-sell AFS securities	604		11,327	Net realized and unrealized investment gains (losses)
	604		11,327	Income before federal income tax
	(127)		(2,379)	Total federal income tax expense
	477		8,948	Net income
Credit loss related
Credit loss expense	4,997		15,787	Net realized and unrealized investment gains (losses)
	4,997		15,787	Income before federal income tax
	(1,049)		(3,315)	Total federal income tax expense
	3,948		12,472	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	159		162	Loss and loss expense incurred
	534		592	Other insurance expenses
Total defined benefit pension and post-retirement life	693		754	Income before federal income tax
	(146)		(158)	Total federal income tax expense
	547		596	Net income
Total reclassifications for the period	$	4,970	22,036	Net income

XML

Equity	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Treasury Stock	EquityOn December 2, 2020, we announced our Board of Directors authorized a $100 million share repurchase program, which has no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock, and the repurchase program may be suspended or discounted at any time at our discretion. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion based on market conditions and other considerations. As of March 31, 2021, 52,781 shares were repurchased under the share repurchase program at a total cost of $3.4 million, and we have $96.6 million of remaining capacity under our share repurchase program.

XML

Litigation

3 Months Ended

Mar. 31, 2021

Loss Contingency, Information about Litigation Matters [Abstract]

Litigation

Litigation

As of March 31, 2021, 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 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 through the establishment of unpaid loss and loss expense reserves. In ordinary course claims litigation, we expect that any potential ultimate liability, after consideration of provisions made for potential losses and costs of defense, will not be material to our consolidated financial condition, results of operations, or cash flows.

All of our commercial property and businessowners' policies require direct physical loss of or damage to property by a covered cause of loss. It also is our practice to include in, or attach to, all standard lines commercial property and businessowners' policies an exclusion that states that 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 also is the subject of first-party coverage litigation against some insurers, including us. We cannot predict the outcome of litigation over these two coverage issues, including interpretation of provisions similar or identical to those in our insurance policies.

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

XML

Statements of Cash Flows (Tables)

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Information [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

	Quarter ended March 31,
($ in thousands)	2021		2020
Cash paid during the period for:
Interest	$	8,722	8,854
Federal income tax	—		—
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,226		2,130
Operating cash flows from financing leases	2		6
Financing cash flows from finance leases	115		142
Non-cash items:
Corporate actions related to fixed income securities, AFS1	26,085		8,040
Corporate actions related to fixed income securities, HTM1	—		2,596
Assets acquired under finance lease arrangements	183		29
Assets acquired under operating lease arrangements	16		3,828
Non-cash purchase of property and equipment	3		5

1Examples of corporate actions include exchanges, non-cash acquisitions, and stock splits.

Schedule of Cash and Restricted Cash

($ in thousands)	March 31, 2021		December 31, 2020
Cash	$	488	394
Restricted cash	8,428		14,837
Total cash and restricted cash shown in the Statements of Cash Flows	$	8,916	15,231

XML

Investments (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Investments [Line Items]

Schedule of Available-for-sale Securities

March 31, 2021
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	134,725	—	3,653	(2,104)	136,274
Foreign government	18,920		(56)	974	(136)	19,702
Obligations of states and political subdivisions	1,140,442		(201)	74,212	(360)	1,214,093
Corporate securities	2,239,066		(6,166)	122,761	(9,870)	2,345,791
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	1,188,670		(1,470)	18,917	(4,052)	1,202,065
Residential mortgage-backed securities ("RMBS")	906,266		(864)	43,367	(1,229)	947,540
Commercial mortgage-backed securities ("CMBS")	624,988		(24)	33,590	(2,378)	656,176
Total AFS fixed income securities	$	6,253,077	(8,781)	297,474	(20,129)	6,521,641

December 31, 2020
($ in thousands)	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
AFS fixed income securities:
U.S. government and government agencies	$	110,038	—	6,239	(137)	116,140
Foreign government	16,801		(1)	1,569	(3)	18,366
Obligations of states and political subdivisions	1,159,588		(4)	87,564	(11)	1,247,137
Corporate securities	2,152,203		(2,782)	180,971	(2,340)	2,328,052
CLO and other ABS	1,014,820		(592)	20,166	(7,843)	1,026,551
RMBS	999,485		(561)	53,065	(201)	1,051,788
CMBS	620,582		(29)	48,348	(1,007)	667,894
Total AFS fixed income securities	$	6,073,517	(3,969)	397,922	(11,542)	6,455,928

Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block]

Quarter ended March 31, 2021
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	1	56	(1)	—	—	56
Obligations of states and political subdivisions	4		186	11	—	—	201
Corporate securities	2,782		4,058	(527)	(147)	—	6,166
CLO and other ABS	592		1,001	(106)	(17)	—	1,470
RMBS	561		356	(39)	(14)	—	864
CMBS	29		10	(15)	—	—	24
Total AFS fixed income securities	$	3,969	5,667	(677)	(178)	—	8,781

Quarter ended March 31, 2020
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
Foreign government	$	—	21	—	—	—	21
Obligations of states and political subdivisions	—		29	—	—	—	29
Corporate securities	—		13,412	—	—	—	13,412
CLO and other ABS	—		1,565	—	—	—	1,565
RMBS	—		722	—	—	—	722
CMBS	—		38	—	—	—	38
Total AFS fixed income securities	$	—	15,787	—	—	—	15,787

Schedule of Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities by Length of Time, AFS

March 31, 2021	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	53,796	(2,104)	—	—	53,796	(2,104)
Foreign government	3,313		(136)	—	—	3,313	(136)
Obligations of states and political subdivisions	18,838		(352)	369	(8)	19,207	(360)
Corporate securities	306,052		(8,560)	14,025	(1,310)	320,077	(9,870)
CLO and other ABS	282,939		(1,737)	105,261	(2,315)	388,200	(4,052)
RMBS	76,684		(1,229)	—	—	76,684	(1,229)
CMBS	70,510		(2,089)	23,474	(289)	93,984	(2,378)
Total AFS fixed income securities	$	812,132	(16,207)	143,129	(3,922)	955,261	(20,129)

December 31, 2020	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	11,519	(137)	—	—	11,519	(137)
Foreign government	1,122		(3)	—	—	1,122	(3)
Obligations of states and political subdivisions	2,223		(11)	—	—	2,223	(11)
Corporate securities	65,187		(2,152)	2,400	(188)	67,587	(2,340)
CLO and other ABS	261,746		(2,995)	165,661	(4,848)	427,407	(7,843)
RMBS	18,227		(194)	1,181	(7)	19,408	(201)
CMBS	55,482		(616)	16,093	(391)	71,575	(1,007)
Total AFS fixed income securities	$	415,506	(6,108)	185,335	(5,434)	600,841	(11,542)

Schedule of Fixed Maturity Securities By Contractual Maturities

	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	453,772	1,057	1,065
Due after one year through five years	3,400,223		14,433	15,325
Due after five years through 10 years	2,043,563		8,854	8,814
Due after 10 years	624,083		—	—
Total fixed income securities	$	6,521,641	24,344	25,204

Schedule of Other Investment Portfolio By Strategy And Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy

Other Investments	March 31, 2021				December 31, 2020
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	182,032	104,070	286,102	157,276	100,905	258,181
Private credit	56,819		98,072	154,891	54,017	98,330	152,347
Real assets	19,689		15,891	35,580	19,659	16,493	36,152
Total alternative investments	258,540		218,033	476,573	230,952	215,728	446,680
Other securities	31,613		—	31,613	35,370	—	35,370
Total other investments	$	290,153	218,033	508,186	266,322	215,728	482,050

1The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant.

Schedule of Aggregated Summarized Income Statement Financial Information For Partnerships In Our Alternative Investment Portfolio

Income Statement Information	Quarter ended March 31,
($ in millions)	2021		2020
Net investment income	$	481.6	12.7
Realized gains	776.0		164.8
Net change in unrealized appreciation	4,630.8		1,204.0
Net income	$	5,888.4	1,381.5
Insurance Subsidiaries’ alternative investments income	$	20.2	6.3

Schedule of Securities Pledged As Collateral

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	21.0	21.0
Obligations of states and political subdivisions	—		—	5.0	5.0
RMBS	93.7		155.5	—	249.2
CMBS	6.9		35.1	—	42.0
Total pledged as collateral	$	100.6	190.6	26.0	317.2

Schedule of Pre-Tax Net Investment Income Earned

	Quarter ended March 31,
($ in thousands)	2021		2020
Fixed income securities	$	52,823	50,253
Commercial mortgage loans ("CMLs")	514		62
Equity securities	2,488		1,552
Short-term investments	85		1,166
Other investments	17,433		6,342
Investment expenses	(3,627)		(3,408)
Net investment income earned	$	69,716	55,967

Schedule of realized and unrealized gains (losses) on securities

	Quarter ended March 31,
($ in thousands)	2021		2020
Gross gains on sales	$	3,676	5,676
Gross losses on sales	(4,471)		(1,576)
Net realized gains (losses) on disposals	(795)		4,100
Net unrealized gains (losses) on equity securities	11,280		(17,137)
Net credit loss expense on fixed income securities, AFS	(4,997)		(15,787)
Net credit loss expense on fixed income securities, HTM	(7)		—
Net credit loss expense on CMLs	—		(240)
Losses on securities for which we have the intent to sell	(362)		(15,602)
Net realized and unrealized gains (losses)	$	5,119	(44,666)

Unrealized Gain (Loss) on Equity Securities

	Quarter ended March 31,
($ in thousands)	2021		2020
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at March 31, 2021	$	10,097	(17,140)
On securities sold during period	1,183		3
Total unrealized gains (losses) recognized in income on equity securities	$	11,280	(17,137)

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities

	March 31, 2021			December 31, 2020
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	49,915		60,613	49,914	66,148
6.70% Senior Notes	99,504		119,818	99,499	127,886
5.375% Senior Notes	294,263		347,155	294,241	383,669
1.61% borrowings from FHLBNY	25,000		25,107	25,000	25,182
1.56% borrowings from FHLBNY	25,000		25,127	25,000	25,198
3.03% borrowings from FHLBI	60,000		65,337	60,000	67,513
Subtotal long-term debt	553,682		643,157	553,654	695,596
Unamortized debt issuance costs	(3,355)			(3,419)
Finance lease obligations	577			508
Total long-term debt	$	550,904		550,743

Schedule of Quantitative Disclosures of Our Financial Assets That Were Measured At Fair Value

March 31, 2021			Fair Value Measurements Using
($ in thousands)	Assets  Measured at  Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1	Significant Other  Observable Inputs  (Level 2)1	Significant Unobservable  Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	136,274	58,540	77,734	—
Foreign government	19,702		—	19,702	—
Obligations of states and political subdivisions	1,214,093		—	1,206,197	7,896
Corporate securities	2,345,791		—	2,256,469	89,322
CLO and other ABS	1,202,065		—	1,137,176	64,889
RMBS	947,540		—	947,540	—
CMBS	656,176		—	656,176	—
Total AFS fixed income securities	6,521,641		58,540	6,300,994	162,107
Equity securities:
Common stock1	322,557		269,017	—	—
Preferred stock	1,698		1,698	—	—
Total equity securities	324,255		270,715	—	—
Short-term investments	337,807		337,075	732	—
Total assets measured at fair value	$	7,183,703	666,330	6,301,726	162,107

December 31, 2020			Fair Value Measurements Using
($ in thousands)	Assets  Measured at  Fair Value		Quoted Prices in  Active Markets for Identical Assets/Liabilities (Level 1)1	Significant Other Observable Inputs  (Level 2)1	Significant Unobservable Inputs  (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	116,140	40,960	75,180	—
Foreign government	18,366		—	18,366	—
Obligations of states and political subdivisions	1,247,137		—	1,244,243	2,894
Corporate securities	2,328,052		—	2,257,352	70,700
CLO and other ABS	1,026,551		—	970,176	56,375
RMBS	1,051,788		—	1,051,788	—
CMBS	667,894		—	667,894	—
Total AFS fixed income securities	6,455,928		40,960	6,284,999	129,969
Equity securities:
Common stock1	308,632		261,846	—	—
Preferred stock	1,735		1,735	—	—
Total equity securities	310,367		263,581	—	—
Short-term investments	409,852		405,400	4,452	—
Total assets measured at fair value	$	7,176,147	709,941	6,289,451	129,969

1Investments amounting to $53.5 million at March 31, 2021, and $46.8 million at December 31, 2020, were measured at fair value using net asset value per share (or its practical expedient) and are not 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 presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value

Schedule of Changes in Fair Value of Securities Using Level 3 Inputs

March 31, 2021
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	Total
Fair value, December 31, 2020	$	2,894	70,700	56,375	129,969
Total net (losses) gains for the period included in:
OCI	(99)		(2,388)	(1,116)	(3,603)
Net realized and unrealized (losses) gains	—		(91)	(143)	(234)
Net investment income earned	—		1	3	4
Purchases	—		21,100	10,672	31,772
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		—	(412)	(412)
Transfers into Level 3	5,101		—	—	5,101
Transfers out of Level 3	—		—	(490)	(490)
Fair value, March 31, 2021	7,896		89,322	64,889	162,107
Change in unrealized (losses) gains for the period included in earnings for assets held at period end	—		(91)	(143)	(234)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	(99)		(2,388)	(1,116)	(3,603)

March 31, 2020
($ in thousands)	Obligation of state and Political Subdivisions		Corporate Securities	CLO and Other ABS	Total
Fair value, December 31, 2019	$	—	17,051	17,034	34,085
Total net (losses) gains for the period included in:
OCI	—		1	(1,756)	(1,755)
Net realized and unrealized (losses) gains	—		(61)	(214)	(275)
Net investment income earned	—		—	—	—
Purchases	—		3,002	4,831	7,833
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		—	—	—
Transfers into Level 3	2,890		4,192	20,107	27,189
Transfers out of Level 3	—		—	(3,630)	(3,630)
Fair value, March 31, 2020	$	2,890	24,185	36,372	63,447
Change in unrealized gains (losses) for the period included in earnings for assets held at period end	—		(61)	(214)	(275)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	—		1	(1,756)	(1,755)

Schedule of Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value

March 31, 2021			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	$	4,738	—	4,738	—
Corporate securities	20,466		—	20,466	—
Total HTM fixed income securities	$	25,204	—	25,204	—
CMLs	$	62,233	—	—	62,233
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	60,613	—	60,613	—
6.70% Senior Notes	119,818		—	119,818	—
5.375% Senior Notes	347,155		—	347,155	—
1.61% borrowings from FHLBNY	25,107		—	25,107	—
1.56% borrowings from FHLBNY	25,127		—	25,127	—
3.03% borrowings from FHLBI	65,337		—	65,337	—
Total long-term debt	$	643,157	—	643,157	—

December 31, 2020			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	$	4,795	—	4,795	—
Corporate securities	13,206		—	13,206	—
Total HTM fixed income securities	$	18,001	—	18,001	—
CMLs	$	47,289	—	—	47,289
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	66,148	—	66,148	—
6.70% Senior Notes	127,886		—	127,886	—
5.375% Senior Notes	383,669		—	383,669	—
1.61% borrowings from FHLBNY	25,182		—	25,182	—
1.56% borrowings from FHLBNY	25,198		—	25,198	—
3.03% borrowings from FHLBI	67,513		—	67,513	—
Total long-term debt	$	695,596	—	695,596	—

XML

Allowance for Uncollectible Premiums Receivable (Tables)

3 Months Ended

Mar. 31, 2021

Premiums Receivable [Abstract]

Premium Receivable, Allowance for Credit Loss [Table Text Block]

	Quarter ended March 31,
($ in thousands)	2021		2020
Balance at beginning of period	$	21,000	$	6,400
Cumulative effect adjustment1	—		1,058
Balance at beginning of period, as adjusted	$	21,000	$	7,458
Current period provision for expected credit losses	808		11,195
Write-offs charged against the allowance for credit losses	(874)		(653)
Recoveries	66		—
Allowance for credit losses, end of period	$	21,000	$	18,000

XML

Reinsurance (Tables)

3 Months Ended

Mar. 31, 2021

Reinsurance Disclosures [Abstract]

Reinsurance Recoverable, Credit Quality Indicator [Table Text Block]

	March 31, 2021
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers1
A++	$	37,939	$	108	$	38,047
A+	352,386		4,032		356,418
A	105,068		387		105,455
A-	2,177		—		2,177
B++	117		264		381
B+	—		—		—
Total rated reinsurers	$	497,687	$	4,791	$	502,478
Non-rated reinsurers
Federal and state pools	$	76,179	$	—	$	76,179
Other than federal and state pools	3,179		860		4,039
Total non-rated reinsurers	$	79,358	$	860	$	80,218
Total reinsurance recoverable, gross	$	577,045	$	5,651	$	582,696
Less: allowance for credit losses2					(1,840)
Total reinsurance recoverable, net					$	580,856

1Credit ratings as of March 31, 2021.

2Represents our current expectation of credit losses on total current and past due reinsurance recoverables, and is not identifiable by reinsurer.

	December 31, 2020
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers1
A++	$	37,464	$	102	$	37,566
A+	354,846		2,452		357,298
A	105,652		415		106,067
A-	2,139		—		2,139
B++	56		324		380
B+	—		—		—
Total rated reinsurers	$	500,157	$	3,293	$	503,450
Non-rated reinsurers
Federal and state pools	$	82,575	$	—	$	82,575
Other than federal and state pools	2,676		568		3,244
Total non-rated reinsurers	$	85,251	$	568	$	85,819
Total reinsurance recoverable, gross	$	585,408	$	3,861	$	589,269
Less: allowance for credit losses2					(1,777)
Total reinsurance recoverable, net					$	587,492

Reinsurance Recoverable, Allowance for Credit Loss [Table Text Block]

($ in thousands)	Quarter ended March 31,
	2021		2020
Balance at beginning of period	$	1,777	$	4,400
Cumulative effect adjustment1	—		(2,903)
Balance at beginning of period, as adjusted	$	1,777	$	1,497
Current period provision for expected credit losses	63		5
Write-offs charged against the allowance for credit losses	—		—
Recoveries	—		—
Allowance for credit losses, end of period	$	1,840	1,502

1Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

Schedule of List Of Direct, Assumed, And Ceded Reinsurance Amounts

	Quarter ended March 31,
($ in thousands)	2021		2020
Premiums written:
Direct	$	908,774	746,431
Assumed	5,533		6,043
Ceded	(116,129)		(105,147)
Net	$	798,178	647,327
Premiums earned:
Direct	$	837,369	754,892
Assumed	5,676		6,173
Ceded	(118,085)		(109,362)
Net	$	724,960	651,703
Loss and loss expenses incurred:
Direct	$	441,507	425,795
Assumed	3,447		4,898
Ceded	(31,553)		(30,369)
Net	$	413,401	400,324

Schedule of Ceded Premiums and Losses Related to Flood Operations

Ceded to NFIP	Quarter ended March 31,
($ in thousands)	2021		2020
Ceded premiums written	$	(65,742)	(62,087)
Ceded premiums earned	(67,519)		(66,861)
Ceded loss and loss expenses incurred	(2,207)		(5,096)

XML

Reserve for Loss and Loss Expense (Tables)

3 Months Ended

Mar. 31, 2021

Insurance Loss Reserves [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

	Quarter ended March 31,
($ in thousands)	2021		2020
Gross reserve for loss and loss expense, at beginning of year	$	4,260,355	4,067,163
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year1	554,269		547,066
Net reserve for loss and loss expense, at beginning of year	3,706,086		3,520,097
Incurred loss and loss expense for claims occurring in the:
Current year	447,170		407,276
Prior years	(33,769)		(6,952)
Total incurred loss and loss expense	413,401		400,324
Paid loss and loss expense for claims occurring in the:
Current year	80,158		70,610
Prior years	243,687		281,736
Total paid loss and loss expense	323,845		352,346
Net reserve for loss and loss expense, at end of period	3,795,642		3,568,075
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	564,546		535,560
Gross reserve for loss and loss expense at end of period	$	4,360,188	4,103,635

1First Quarter 2020 includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of Revenue By Segment

Revenue by Segment	Quarter ended March 31,
($ in thousands)	2021		2020
Standard Commercial Lines:
Net premiums earned:
Commercial property	$	102,810	93,869
Workers compensation	78,190		66,706
General liability	193,520		164,580
Commercial automobile	171,881		149,690
Businessowners' policies	28,627		27,036
Bonds	8,593		9,639
Other	5,520		5,060
Miscellaneous income	3,707		1,391
Total Standard Commercial Lines revenue	592,848		517,971
Standard Personal Lines:
Net premiums earned:
Personal automobile	41,393		42,487
Homeowners	30,598		31,490
Other	1,830		2,151
Miscellaneous income	405		434
Total Standard Personal Lines revenue	74,226		76,562
E&S Lines:
Net premiums earned:
Casualty lines	43,833		44,072
Property lines	18,165		14,923
Total E&S Lines revenue	61,998		58,995
Investments:
Net investment income	69,716		55,967
Net realized and unrealized investment gains (losses)	5,119		(44,666)
Total Investments revenue	74,835		11,301
Total revenues	$	803,907	664,829

Schedule of Income Before and After Federal Income Tax

Income Before and After Federal Income Tax	Quarter ended March 31,
($ in thousands)	2021			2020
Standard Commercial Lines:
Underwriting gain, before federal income tax	$	69,499		17,126
Underwriting gain, after federal income tax	54,904			13,529
Combined ratio	88.2		%	96.7
ROE contribution	8.6			2.4
Standard Personal Lines:
Underwriting gain, before federal income tax	$	7,695		387
Underwriting gain, after federal income tax	6,079			306
Combined ratio	89.6		%	99.5
ROE contribution	1.0			0.1
E&S Lines:
Underwriting gain, before federal income tax	$	516		3,844
Underwriting gain, after federal income tax	408			3,037
Combined ratio	99.2		%	93.5
ROE contribution	0.1			0.6
Investments:
Net investment income	$	69,716		55,967
Net realized and unrealized investment gains (losses)	5,119			(44,666)
Total investment segment income, before federal income tax	74,835			11,301
Tax on investment segment income	14,448			1,104
Total investment segment income, after federal income tax	$	60,387		10,197
ROE contribution of after-tax net investment income	8.9			8.5

Schedule of Reconciliation of Segment Results to Income Before Federal Income Tax

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended March 31,
($ in thousands)	2021		2020
Underwriting gain
Standard Commercial Lines	$	69,499	17,126
Standard Personal Lines	7,695		387
E&S Lines	516		3,844
Investment income	74,835		11,301
Total all segments	152,545		32,658
Interest expense	(7,359)		(7,601)
Corporate expenses	(9,554)		(9,060)
Income, before federal income tax	$	135,632	15,997
Preferred stock dividends	(2,453)		—
Income available to common stockholders, before federal income tax	$	133,179	15,997

XML

Retirement Plans (Table)

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Cost

	Pension Plan
	Quarter ended March 31,
($ in thousands)	2021		2020
Net Periodic Pension Cost (Benefit):
Interest cost	$	2,148	2,828
Expected return on plan assets	(5,744)		(5,477)
Amortization of unrecognized net actuarial loss	625		704
Total net periodic pension cost (benefit)1	$	(2,971)	(1,945)

1 The 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.

Schedule of Weighted-Average Expense Assumptions

	Pension Plan
	Quarter ended March 31,
	2021		2020
Weighted-Average Expense Assumptions:
Discount rate	2.68	%	3.33	%
Effective interest rate for calculation of interest cost	2.06		2.95
Expected return on plan assets	5.40		5.80

XML

Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2021

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of Components of Comprehensive Income-Gross and Net of Tax

First Quarter 2021
($ in thousands)	Gross		Tax	Net
Net income	$	135,632	26,362	109,270
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(103,308)		(21,695)	(81,613)
Unrealized losses on securities with credit loss recognized in earnings	(11,320)		(2,377)	(8,943)
Amounts reclassified into net income:
HTM securities	(2)		—	(2)
Net realized losses on disposals and losses on intent-to-sell AFS securities	604		127	477
Credit loss expense	4,997		1,049	3,948
Total unrealized losses on investment securities	(109,029)		(22,896)	(86,133)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	693		146	547
Total defined benefit pension and post-retirement plans	693		146	547
Other comprehensive loss	(108,336)		(22,750)	(85,586)
Comprehensive income	$	27,296	3,612	23,684
First Quarter 2020
($ in thousands)	Gross		Tax	Net
Net income	$	15,997	761	15,236
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(93,981)		(19,736)	(74,245)
Unrealized losses on securities with credit loss recognized in earnings	(65,390)		(13,732)	(51,658)
Amounts reclassified into net income:
HTM securities	25		5	20
Net realized losses on disposals and losses on intent-to-sell AFS securities	11,327		2,379	8,948
Credit loss expense	15,787		3,315	12,472
Total unrealized losses on investment securities	(132,232)		(27,769)	(104,463)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	754		158	596
Total defined benefit pension and post-retirement plans	754		158	596
Other comprehensive loss	(131,478)		(27,611)	(103,867)
Comprehensive loss	$	(115,481)	(26,850)	(88,631)

Schedule of Components of Accumulated Other Comprehensive Income Net of Tax

March 31, 2021						Defined Benefit Pension and Post-Retirement Plans
	Net Unrealized (Losses) Gains on Investment Securities						Total AOCI
($ in thousands)	Credit Loss Related1		HTM Related	All Other	Investments Subtotal
Balance, December 31, 2020	$	(2,546)	6	307,790	305,250	(85,064)	220,186
OCI before reclassifications	(8,943)		—	(81,613)	(90,556)	—	(90,556)
Amounts reclassified from AOCI	3,948		(2)	477	4,423	547	4,970
Net current period OCI	(4,995)		(2)	(81,136)	(86,133)	547	(85,586)
Balance, March 31, 2021	$	(7,541)	4	226,654	219,117	(84,517)	134,600

Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income

	Quarter ended March 31,			Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2021		2020
HTM related
Unrealized (gains) losses on HTM disposals	$	—	1	Net realized and unrealized investment gains (losses)
Amortization of net unrealized (gains) losses on HTM securities	(2)		24	Net investment income earned
	(2)		25	Income before federal income tax
	—		(5)	Total federal income tax expense
	(2)		20	Net income
Net realized losses on disposals and intent-to-sell AFS securities
Net realized losses on disposals and intent-to-sell AFS securities	604		11,327	Net realized and unrealized investment gains (losses)
	604		11,327	Income before federal income tax
	(127)		(2,379)	Total federal income tax expense
	477		8,948	Net income
Credit loss related
Credit loss expense	4,997		15,787	Net realized and unrealized investment gains (losses)
	4,997		15,787	Income before federal income tax
	(1,049)		(3,315)	Total federal income tax expense
	3,948		12,472	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	159		162	Loss and loss expense incurred
	534		592	Other insurance expenses
Total defined benefit pension and post-retirement life	693		754	Income before federal income tax
	(146)		(158)	Total federal income tax expense
	547		596	Net income
Total reclassifications for the period	$	4,970	22,036	Net income

XML

Statements of Cash Flows (Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Interest		$ 8,722	$ 8,854
Federal income tax		0	0
Operating cash flows from operating leases		2,226	2,130
Operating cash flows from financing leases		2	6
Financing cash flows from finance leases		115	142
Assets acquired under finance lease arrangements		183	29
Assets acquired under operating lease arrangements		16	3,828
Non-cash purchase of property and equipment		3	5
Available-for-sale Securities
Corporate actions related to securities	[1]	26,085	8,040
Held-to-maturity Securities [Member]
Corporate actions related to securities	[1]	$ 0	$ 2,596

[1] Examples of corporate actions include exchanges, non-cash acquisitions, and stock splits.

XML

Statements of Cash Flows (Schedule of Cash and Restricted Cash) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Schedule of Cash and Restricted Cash [Line Items]
Cash	$ 488	$ 394
Restricted cash	8,428	14,837
Total cash and restricted cash shown in the Statements of Cash Flows	$ 8,916	$ 15,231	$ 14,606	$ 7,975

XML

Investments (Available-For-Sale Securities Disclosure) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	$ 6,253,077		$ 6,073,517
Allowance for credit losses, Period beginning balance	3,969	$ 0
Allowance for credit losses, Period ending balance	8,781	15,787
Interest and dividends due or accrued	46,072		45,004
Current provision for securities without prior allowance	5,667	15,787
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(677)	0
Reductions for securities sold	(178)	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0
Unrealized Gains	297,474		397,922
Unrealized Losses	(20,129)		(11,542)
Debt Securities, Available-for-sale, Fair Value	6,521,641		6,455,928
Available-for-sale Securities | U.S. Government and Government Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	134,725		110,038
Allowance for credit losses, Period beginning balance	0
Allowance for credit losses, Period ending balance	0
Unrealized Gains	3,653		6,239
Unrealized Losses	(2,104)		(137)
Debt Securities, Available-for-sale, Fair Value	136,274		116,140
Available-for-sale Securities | Foreign Government [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	18,920		16,801
Allowance for credit losses, Period beginning balance	1	0
Allowance for credit losses, Period ending balance	56	21
Current provision for securities without prior allowance	56	21
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(1)	0
Reductions for securities sold	0	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0
Unrealized Gains	974		1,569
Unrealized Losses	(136)		(3)
Debt Securities, Available-for-sale, Fair Value	19,702		18,366
Available-for-sale Securities | Obligations of States and Political Subdivisions [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	1,140,442		1,159,588
Allowance for credit losses, Period beginning balance	4	0
Allowance for credit losses, Period ending balance	201	29
Current provision for securities without prior allowance	186	29
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	11	0
Reductions for securities sold	0	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0
Unrealized Gains	74,212		87,564
Unrealized Losses	(360)		(11)
Debt Securities, Available-for-sale, Fair Value	1,214,093		1,247,137
Available-for-sale Securities | Corporate Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	2,239,066		2,152,203
Allowance for credit losses, Period beginning balance	2,782	0
Allowance for credit losses, Period ending balance	6,166	13,412
Current provision for securities without prior allowance	4,058	13,412
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(527)	0
Reductions for securities sold	(147)	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0
Unrealized Gains	122,761		180,971
Unrealized Losses	(9,870)		(2,340)
Debt Securities, Available-for-sale, Fair Value	2,345,791		2,328,052
Available-for-sale Securities | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	1,188,670		1,014,820
Allowance for credit losses, Period beginning balance	592	0
Allowance for credit losses, Period ending balance	1,470	1,565
Current provision for securities without prior allowance	1,001	1,565
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(106)	0
Reductions for securities sold	(17)	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0
Unrealized Gains	18,917		20,166
Unrealized Losses	(4,052)		(7,843)
Debt Securities, Available-for-sale, Fair Value	1,202,065		1,026,551
Available-for-sale Securities | Residential Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	906,266		999,485
Allowance for credit losses, Period beginning balance	561	0
Allowance for credit losses, Period ending balance	864	722
Current provision for securities without prior allowance	356	722
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(39)	0
Reductions for securities sold	(14)	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0
Unrealized Gains	43,367		53,065
Unrealized Losses	(1,229)		(201)
Debt Securities, Available-for-sale, Fair Value	947,540		1,051,788
Available-for-sale Securities | Commercial Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost/Amortized Cost	624,988		620,582
Allowance for credit losses, Period beginning balance	29	0
Allowance for credit losses, Period ending balance	24	38
Current provision for securities without prior allowance	10	38
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(15)	0
Reductions for securities sold	0	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	$ 0
Unrealized Gains	33,590		48,348
Unrealized Losses	(2,378)		(1,007)
Debt Securities, Available-for-sale, Fair Value	656,176		667,894
Available-for-sale Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Interest and dividends due or accrued	$ 44,700		$ 43,800

XML

Investments (Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities By Length of Time) (Details) - Available-for-sale Securities - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
AFS Fair Value, Less than 12 Months	$ 812,132	$ 415,506
AFS Unrealized Losses, Less than 12 months	(16,207)	(6,108)
AFS Fair Value, 12 months or longer	143,129	185,335
AFS Unrealized Losses, 12 months or longer	(3,922)	(5,434)
AFS Fair Value	955,261	600,841
AFS Unrealized Losses	(20,129)	(11,542)
U.S. Government and Government Agencies [Member]
AFS Fair Value, Less than 12 Months	53,796	11,519
AFS Unrealized Losses, Less than 12 months	(2,104)	(137)
AFS Fair Value, 12 months or longer	0	0
AFS Unrealized Losses, 12 months or longer	0	0
AFS Fair Value	53,796	11,519
AFS Unrealized Losses	(2,104)	(137)
Foreign Government [Member]
AFS Fair Value, Less than 12 Months	3,313	1,122
AFS Unrealized Losses, Less than 12 months	(136)	(3)
AFS Fair Value, 12 months or longer	0	0
AFS Unrealized Losses, 12 months or longer	0	0
AFS Fair Value	3,313	1,122
AFS Unrealized Losses	(136)	(3)
Obligations of States and Political Subdivisions [Member]
AFS Fair Value, Less than 12 Months	18,838	2,223
AFS Unrealized Losses, Less than 12 months	(352)	(11)
AFS Fair Value, 12 months or longer	369	0
AFS Unrealized Losses, 12 months or longer	(8)	0
AFS Fair Value	19,207	2,223
AFS Unrealized Losses	(360)	(11)
Corporate Securities [Member]
AFS Fair Value, Less than 12 Months	306,052	65,187
AFS Unrealized Losses, Less than 12 months	(8,560)	(2,152)
AFS Fair Value, 12 months or longer	14,025	2,400
AFS Unrealized Losses, 12 months or longer	(1,310)	(188)
AFS Fair Value	320,077	67,587
AFS Unrealized Losses	(9,870)	(2,340)
Collateralized Loan Obligations and Other Asset Backed Securities [Member]
AFS Fair Value, Less than 12 Months	282,939	261,746
AFS Unrealized Losses, Less than 12 months	(1,737)	(2,995)
AFS Fair Value, 12 months or longer	105,261	165,661
AFS Unrealized Losses, 12 months or longer	(2,315)	(4,848)
AFS Fair Value	388,200	427,407
AFS Unrealized Losses	(4,052)	(7,843)
Residential Mortgage Backed Securities [Member]
AFS Fair Value, Less than 12 Months	76,684	18,227
AFS Unrealized Losses, Less than 12 months	(1,229)	(194)
AFS Fair Value, 12 months or longer	0	1,181
AFS Unrealized Losses, 12 months or longer	0	(7)
AFS Fair Value	76,684	19,408
AFS Unrealized Losses	(1,229)	(201)
Commercial Mortgage Backed Securities [Member]
AFS Fair Value, Less than 12 Months	70,510	55,482
AFS Unrealized Losses, Less than 12 months	(2,089)	(616)
AFS Fair Value, 12 months or longer	23,474	16,093
AFS Unrealized Losses, 12 months or longer	(289)	(391)
AFS Fair Value	93,984	71,575
AFS Unrealized Losses	$ (2,378)	$ (1,007)

XML

Investments (Fixed Income Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of Fixed Income Securities [Line Items]
Due in one year or less fair value, AFS	$ 453,772
Due after one year through five years fair value, AFS	3,400,223
Due after five years through 10 years fair value, AFS	2,043,563
Due after 10 years fair value, AFS	624,083
Total AFS fixed income securities, Fair Value	6,521,641	$ 6,455,928
Due in one year or less carrying value, HTM	1,057
Due after one year through five years carrying value, HTM	14,433
Due after five years through 10 years carrying value, HTM	8,854
Due after 10 years carrying value, HTM	0
Total HTM fixed income securities carrying value	24,344	16,824
Due in one year or less fair value, HTM	1,065
Due after one year through five years fair value, HTM	15,325
Due after five years through 10 years fair value, HTM	8,814
Due after 10 years fair value, HTM	0
Total HTM fixed income securities, Fair Value	$ 25,204	$ 18,001

XML

Investments (Other Investment Portfolio by Strategy and the Remaining Commitment Amount and Maximum Exposure to Loss Associated With Each Strategy) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Net investment income earned		$ 69,716	$ 55,967
Carrying Value		290,153		$ 266,322
Alternative Investments [Member]
Net investment income earned		20,200	$ 6,300
Other Securities [Member]
Carrying Value		31,613		35,370
Remaining Commitment		0		0
Maximum Exposure to Loss	[1]	31,613		35,370
Alternative Investments [Member]
Carrying Value		258,540		230,952
Remaining Commitment		218,033		215,728
Maximum Exposure to Loss	[1]	476,573		446,680
Alternative Investments [Member] | Private Equity Funds [Member]
Carrying Value		182,032		157,276
Remaining Commitment		104,070		100,905
Maximum Exposure to Loss	[1]	286,102		258,181
Alternative Investments [Member] | Private Credit Funds [Member]
Carrying Value		56,819		54,017
Remaining Commitment		98,072		98,330
Maximum Exposure to Loss	[1]	154,891		152,347
Alternative Investments [Member] | Real Assets [Member]
Carrying Value		19,689		19,659
Remaining Commitment		15,891		16,493
Maximum Exposure to Loss	[1]	35,580		36,152
Other Investments [Member]
Carrying Value		290,153		266,322
Remaining Commitment		218,033		215,728
Maximum Exposure to Loss	[1]	$ 508,186		$ 482,050

[1] The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant.

XML

Investments (Aggregated Income Statement Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Net investment income earned	$ 69,716	$ 55,967
Carrying Value	290,153		$ 266,322
Alternative Investments [Member]
Schedule of Equity Method Investments [Line Items]
Net investment income earned	20,200	6,300
Investments accounted for under the equity method [Member]
Schedule of Equity Method Investments [Line Items]
Net investment income	481,600	12,700
Realized gains	776,000	164,800
Net change in unrealized appreciation	4,630,800	1,204,000
Insurance Subsidiaries' alternative investments income	$ 5,888,400	$ 1,381,500

XML

Investments (Investments Pledged as Collateral) (Details) $ in Millions	Mar. 31, 2021 USD ($)
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies	$ 26.0
Securities Pledged As Collateral	317.2
Federal Home Loan Bank of Indianapolis [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	100.6
Federal Home Loan Bank of New York [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	190.6
U.S. Government and Government Agencies [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies	21.0
Securities Pledged As Collateral	21.0
U.S. Government and Government Agencies [Member] | Federal Home Loan Bank of Indianapolis [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	0.0
U.S. Government and Government Agencies [Member] | Federal Home Loan Bank of New York [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	0.0
Obligations of States and Political Subdivisions [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies	5.0
Securities Pledged As Collateral	5.0
Obligations of States and Political Subdivisions [Member] | Federal Home Loan Bank of Indianapolis [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	0.0
Obligations of States and Political Subdivisions [Member] | Federal Home Loan Bank of New York [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	0.0
Residential Mortgage Backed Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies	0.0
Securities Pledged As Collateral	249.2
Residential Mortgage Backed Securities [Member] | Federal Home Loan Bank of Indianapolis [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	93.7
Residential Mortgage Backed Securities [Member] | Federal Home Loan Bank of New York [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	155.5
Commercial Mortgage Backed Securities [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies	0.0
Securities Pledged As Collateral	42.0
Commercial Mortgage Backed Securities [Member] | Federal Home Loan Bank of Indianapolis [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	6.9
Commercial Mortgage Backed Securities [Member] | Federal Home Loan Bank of New York [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	$ 35.1

XML

Investments (Credit Concentration Risk) (Details)	Mar. 31, 2021	Dec. 31, 2020
Investments [Abstract]
Maximum exposure to credit concentration risk of the Company's stockholder's equity other than certain U.S. government-backed investments	10.00%	10.00%

XML

Investments (Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Investment Income [Line Items]
Net investment income earned	$ 69,716	$ 55,967
Investment Expense	(3,627)	(3,408)
Fixed Income Securities [Member]
Net Investment Income [Line Items]
Net investment income earned	52,823	50,253
Commercial Mortgage Loans [Member]
Net Investment Income [Line Items]
Net investment income earned	514	62
Equity Securities [Member]
Net Investment Income [Line Items]
Net investment income earned	2,488	1,552
Short-Term Investments [Member]
Net Investment Income [Line Items]
Net investment income earned	85	1,166
Other Investments [Member]
Net Investment Income [Line Items]
Net investment income earned	17,433	6,342
Alternative Investments [Member]
Net Investment Income [Line Items]
Net investment income earned	$ 20,200	$ 6,300

XML

Investments (Net Realized and Unrealized Investment Gains and (Losses)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Gross gains on sales	$ 3,676	$ 5,676
Gross losses on sales	(4,471)	(1,576)
Net realized investment gains (losses) on disposals	(795)	4,100
Net unrealized gains (losses) on equity securities	11,280	(17,137)
Losses on securities for which we have the intent to sell	(362)	(15,602)
Net realized and unrealized investment gains (losses)	5,119	(44,666)
Available-for-sale Securities [Member]
Gain (Loss) on Securities [Line Items]
Net credit loss expense on fixed maturities	(4,997)	(15,787)
Held-to-maturity Securities [Member]
Gain (Loss) on Securities [Line Items]
Net credit loss expense on fixed maturities	(7)	0
Commercial Mortgage Loans [Member]
Gain (Loss) on Securities [Line Items]
Net credit loss expense on fixed maturities	$ 0	$ (240)

XML

Investments (Unrealized Gains (Losses) on Equity Securities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Unrealized gains (losses) recognized in income on equity securities on securities remaining in our portfolio at March 31, 2021	$ 10,097	$ (17,140)
Unrealized gains (losses) recognized in income on equity securities on securities sold during period	1,183	3
Total unrealized gains (losses) recognized in income on equity securities	$ 11,280	$ (17,137)

XML

Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance lease liabilities	$ 577	$ 508
Long-term debt, carrying amount	550,904	550,743
Long-term debt, fair value	643,157	695,596
Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	60,613	66,148
Seven Point Twenty Five Percent Senior Notes [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying amount	49,915	49,914
Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	119,818	127,886
Six Point Seventy Percent Senior Notes [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying amount	99,504	99,499
Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	347,155	383,669
Five Point Three Hundred Seventy Five Senior Notes [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying amount	294,263	294,241
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	25,107	25,182
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying amount	25,000	25,000
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	25,127	25,198
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying amount	25,000	25,000
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	65,337	67,513
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying amount	60,000	60,000
Long Term Debt Excluding Issuance Costs and Finance Lease Obligations [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, carrying amount	553,682	553,654
Unamortized Debt Issuance Costs [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt issuance costs	$ (3,355)	$ (3,419)

XML

Fair Value Measurements (Quantitative Disclosures of Fair Value Assets) (Details) - USD ($) $ in Thousands		Mar. 31, 2021	Dec. 31, 2020
AFS Fixed Income Securities		$ 6,521,641	$ 6,455,928
Equity Securities		324,255	310,367
Short-term investments		337,807	409,852
Net Asset Value	[1]	53,500	46,800
Fair Value, Recurring [Member]
AFS Fixed Income Securities		6,521,641	6,455,928
Equity Securities		324,255	310,367
Short-term investments		337,807	409,852
Total assets measured at fair value		7,183,703	7,176,147
U.S. Government and Government Agencies [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		136,274	116,140
Foreign Government [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		19,702	18,366
Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		1,214,093	1,247,137
Corporate Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		2,345,791	2,328,052
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		1,202,065	1,026,551
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		947,540	1,051,788
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		656,176	667,894
Common Stock [Member] | Fair Value, Recurring [Member]
Equity Securities	[1]	322,557	308,632
Preferred Stock [Member] | Fair Value, Recurring [Member]
Equity Securities		1,698	1,735
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		58,540	40,960
Equity Securities		270,715	263,581
Short-term investments		337,075	405,400
Total assets measured at fair value		666,330	709,941
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		58,540	40,960
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Common Stock [Member] | Fair Value, Recurring [Member]
Equity Securities	[1]	269,017	261,846
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member]
Equity Securities		1,698	1,735
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		6,300,994	6,284,999
Equity Securities		0	0
Short-term investments		732	4,452
Total assets measured at fair value		6,301,726	6,289,451
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		77,734	75,180
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		19,702	18,366
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		1,206,197	1,244,243
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		2,256,469	2,257,352
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		1,137,176	970,176
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		947,540	1,051,788
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		656,176	667,894
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | Fair Value, Recurring [Member]
Equity Securities	[1]	0	0
Significant Other Observable Inputs (Level 2) [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member]
Equity Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		162,107	129,969
Equity Securities		0	0
Short-term investments		0	0
Total assets measured at fair value		162,107	129,969
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government and Government Agencies [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		7,896	2,894
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		89,322	70,700
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		64,889	56,375
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS Fixed Income Securities		0	0
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member] | Fair Value, Recurring [Member]
Equity Securities	[1]	0	0
Significant Unobservable Inputs (Level 3) [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member]
Equity Securities		$ 0	$ 0

[1] Investments amounting to $53.5 million at March 31, 2021, and $46.8 million at December 31, 2020, were measured at fair value using net asset value per share (or its practical expedient) and are not 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 presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

XML

Fair Value Measurements (Change in Fair Value of Securities Using Level 3 Inputs) (Details) - Available-for-sale Securities [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31,	$ 2,894	$ 0
Total net (losses) gains for the period included in OCI	(99)	0
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	5,101	2,890
Transfers out of Level 3	0	0
Fair value, March 31	7,896	2,890
Period change unrealized (losses) gains in earnings for assets held at period end	0	0
Period change unrealized gains (losses) in OCI for assets held at period end	(99)	0
Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31,	70,700	17,051
Total net (losses) gains for the period included in OCI	(2,388)	1
Purchases	21,100	3,002
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	4,192
Transfers out of Level 3	0	0
Fair value, March 31	89,322	24,185
Period change unrealized (losses) gains in earnings for assets held at period end	(91)	(61)
Period change unrealized gains (losses) in OCI for assets held at period end	(2,388)	1
Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31,	56,375	17,034
Total net (losses) gains for the period included in OCI	(1,116)	(1,756)
Purchases	10,672	4,831
Sales	0	0
Issuances	0	0
Settlements	(412)	0
Transfers into Level 3	0	20,107
Transfers out of Level 3	(490)	(3,630)
Fair value, March 31	64,889	36,372
Period change unrealized (losses) gains in earnings for assets held at period end	(143)	(214)
Period change unrealized gains (losses) in OCI for assets held at period end	(1,116)	(1,756)
Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31,	129,969	34,085
Total net (losses) gains for the period included in OCI	(3,603)	(1,755)
Purchases	31,772	7,833
Sales	0	0
Issuances	0	0
Settlements	(412)	0
Transfers into Level 3	5,101	27,189
Transfers out of Level 3	(490)	(3,630)
Fair value, March 31	162,107	63,447
Period change unrealized (losses) gains in earnings for assets held at period end	(234)	(275)
Period change unrealized gains (losses) in OCI for assets held at period end	(3,603)	(1,755)
Gain (Loss) on Investments [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains for the period included in net income	0	0
Gain (Loss) on Investments [Member] | Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains for the period included in net income	(91)	(61)
Gain (Loss) on Investments [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains for the period included in net income	(143)	(214)
Gain (Loss) on Investments [Member] | Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains for the period included in net income	(234)	(275)
Net Investment Income Earned [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains for the period included in net income	0	0
Net Investment Income Earned [Member] | Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains for the period included in net income	1	0
Net Investment Income Earned [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains for the period included in net income	3	0
Net Investment Income Earned [Member] | Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains for the period included in net income	$ 4	$ 0

XML

Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	$ 25,204	$ 18,001
Long-term debt, fair value	643,157	695,596
Commercial mortgage loan, fair value	62,233	47,289
Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	60,613	66,148
Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	119,818	127,886
Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	347,155	383,669
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	25,107	25,182
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	25,127	25,198
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	65,337	67,513
Long-term Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	643,157	695,596
Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	4,738	4,795
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	20,466	13,206
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	0	0
Long-term debt, fair value	0	0
Commercial mortgage loan, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	0	0
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	25,204	18,001
Long-term debt, fair value	643,157	695,596
Commercial mortgage loan, fair value	0	0
Significant Other Observable Inputs (Level 2) [Member] | Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	60,613	66,148
Significant Other Observable Inputs (Level 2) [Member] | Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	119,818	127,886
Significant Other Observable Inputs (Level 2) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	347,155	383,669
Significant Other Observable Inputs (Level 2) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	25,107	25,182
Significant Other Observable Inputs (Level 2) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	25,127	25,198
Significant Other Observable Inputs (Level 2) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	65,337	67,513
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	4,738	4,795
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	20,466	13,206
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	0	0
Long-term debt, fair value	0	0
Commercial mortgage loan, fair value	62,233	47,289
Significant Unobservable Inputs (Level 3) [Member] | Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	$ 0	$ 0

XML

Allowance for Uncollectible Premiums Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Premiums Receiveable, Allowance for Credit Loss [Line Items]
Premium Receivable, Allowance for Credit Loss	$ 21,000		$ 21,000		$ 6,400
Allowance for credit losses, net of write-offs		$ 10,500
Premiums Receivable [Member]
Premiums Receiveable, Allowance for Credit Loss [Line Items]
Premium Receivable, Allowance for Credit Loss	21,000	18,000	21,000	$ 21,000	7,458
Current period provision for expected credit losses	808	11,195
Write-offs charged against the allowance for credit losses	(874)	(653)
Recoveries	$ 66	$ 0
Premiums Receivable [Member] | Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member]
Premiums Receiveable, Allowance for Credit Loss [Line Items]
Premium Receivable, Allowance for Credit Loss			$ 0		$ 1,058	[1]

[1] Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

XML

Reinsurance Recoverable Credit Ratings (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverable, Credit Quality Indicator, Date Updated	Mar. 31, 2021
Reinsurance recoverable	$ 582,696	$ 589,269
Reinsurance Recoverable, Allowance for Credit Loss	(1,840)	(1,777)	$ (1,502)	$ (4,400)
Reinsurance recoverable, net of allowance for credit losses	580,856	587,492
AM Best, A++ Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	38,047	37,566
Reinsurance Recoverable, Current	37,939	37,464
Reinsurance Recoverable, Past Due	108	102
AM Best, A+ Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	356,418	357,298
Reinsurance Recoverable, Current	352,386	354,846
Reinsurance Recoverable, Past Due	4,032	2,452
AM Best, A Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	105,455	106,067
Reinsurance Recoverable, Current	105,068	105,652
Reinsurance Recoverable, Past Due	387	415
AM Best, A- Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	2,177	2,139
Reinsurance Recoverable, Current	2,177	2,139
Reinsurance Recoverable, Past Due	0	0
AM Best, B++ Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	381	380
Reinsurance Recoverable, Current	117	56
Reinsurance Recoverable, Past Due	264	324
AM Best, B+ Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0	0
Reinsurance Recoverable, Current	0	0
Reinsurance Recoverable, Past Due	0	0
AM Best Rated Reinsurer [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	502,478	503,450
Reinsurance Recoverable, Current	497,687	500,157
Reinsurance Recoverable, Past Due	4,791	3,293
Total federal and state pools [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	76,179	82,575
Reinsurance Recoverable, Current	76,179	82,575
Reinsurance Recoverable, Past Due	0	0
Other than Federal And State Pools [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	4,039	3,244
Reinsurance Recoverable, Current	3,179	2,676
Reinsurance Recoverable, Past Due	860	568
Total Non Rated Reinsurer [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	80,218	85,819
Reinsurance Recoverable, Current	79,358	85,251
Reinsurance Recoverable, Past Due	860	568
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments, Gross [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverable, Current	577,045	585,408
Reinsurance Recoverable, Past Due	$ 5,651	$ 3,861

XML

Reinsurance Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, beginning of period	$ 1,777	$ 4,400
Current period provision for expected credit losses	63	5
Write-offs charged against the allowance for credit losses	0	0
Recoveries	0	0
Allowance for credit losses, end of period	1,840	1,502
Reinsurance Recoverable [Domain]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, beginning of period	1,777	1,497
Retained Earnings [Member] | Reinsurance Recoverable [Domain] | Accounting Standards Update 2016-13 [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, beginning of period	$ 0	$ (2,903)	[1]

[1] includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

XML

Reinsurance (List of Direct, Assumed, and Ceded Reinsurance Amounts) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Premiums written:
Change in Direct Premiums Written	$ 162,000
Change in Direct Premiums Written Percentage	22.00%
Premiums earned:
Net	$ 724,960	$ 651,703
Loss and loss expenses incurred:
Net	$ 413,401	400,324
Return audit and midterm endorsement premium [Member] | COVID-19 [Member]
Premiums written:
Direct		75,000
Change in Direct Premiums Written Percentage	11.00%
Change in Direct Premiums Written
Premiums written:
Direct	$ 87,000
Direct Assumed and Ceded Reinsurance Amounts [Member]
Premiums written:
Direct	908,774	746,431
Assumed	5,533	6,043
Ceded	(116,129)	(105,147)
Net	798,178	647,327
Premiums earned:
Direct	837,369	754,892
Assumed	5,676	6,173
Ceded	(118,085)	(109,362)
Net	724,960	651,703
Loss and loss expenses incurred:
Direct	441,507	425,795
Assumed	3,447	4,898
Ceded	(31,553)	(30,369)
Net	$ 413,401	$ 400,324

XML

Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) - National Flood Insurance Program [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Percentage of NFIP claims ceded by federal government	100.00%
Ceded premiums written	$ (65,742)	$ (62,087)
Ceded premiums earned	(67,519)	(66,861)
Ceded loss and loss expenses incurred	$ (2,207)	$ (5,096)

XML

Reserve for Loss and Loss Expense (Rollforward of Reserve for Loss and Loss Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020		Dec. 31, 2020	Dec. 31, 2019
Liability for Claims and Claims Adjustment Expense [Line Items]
Gross reserve for loss and loss expense, at beginning of year	$ 4,260,355	$ 4,067,163
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year	554,269	547,066	[1]
Net reserve for loss and loss expense, at beginning of year	3,706,086	3,520,097
Incurred loss and loss expense for claims occurring in the current year	447,170	407,276
Total incurred loss and loss expense	413,401	400,324
Paid loss and loss expense for claims occurring in the current year	80,158	70,610
Paid loss and loss expense for claims occurring in the prior years	243,687	281,736
Total paid loss and loss expense	323,845	352,346
Net reserve for loss and loss expense, at end of period	3,795,642	3,568,075
Add: reinsurance recoverable on unpaid loss and loss expense, at end of period	564,546	535,560
Gross reserve for loss and loss expense, at end of period	4,360,188	4,103,635
Allowance for credit losses	(1,840)	(1,502)		$ (1,777)	$ (4,400)
Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(33,769)	(6,952)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(35,000)	(10,000)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | Workers' Compensation Insurance [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(15,000)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | General Liability [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(15,000)
Property Insurance [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	1,200	$ 3,000
E&S Lines | Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	$ (5,000)
Reinsurance Recoverable [Domain]
Liability for Claims and Claims Adjustment Expense [Line Items]
Allowance for credit losses				(1,777)	(1,497)
Reinsurance Recoverable [Domain] | Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Allowance for credit losses				$ 0	$ 2,903	[1]

[1] includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

XML

Segment Information Narrative (Details)	3 Months Ended
	Mar. 31, 2021
Number of Operating Segments	4

XML

Segment Information (Revenue by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Total net premiums earned	$ 724,960	$ 651,703
Miscellaneous income	4,112	1,825
Net investment income	69,716	55,967
Net realized and unrealized investment gains (losses)	5,119	(44,666)
Total Investments revenue	74,835	11,301
Total revenues	803,907	664,829
Standard Commercial Lines
Segment Reporting Information [Line Items]
Miscellaneous income	3,707	1,391
Total revenues	592,848	517,971
Standard Commercial Lines | Commercial Property [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	102,810	93,869
Standard Commercial Lines | Workers Compensation [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	78,190	66,706
Standard Commercial Lines | General Liability [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	193,520	164,580
Standard Commercial Lines | Commercial Automobile [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	171,881	149,690
Standard Commercial Lines | Business Owners Policies [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	28,627	27,036
Standard Commercial Lines | Bonds Segment [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	8,593	9,639
Standard Commercial Lines | Other Commercial [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	5,520	5,060
Standard Personal Lines
Segment Reporting Information [Line Items]
Miscellaneous income	405	434
Total revenues	74,226	76,562
Standard Personal Lines | Personal Automobile [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	41,393	42,487
Standard Personal Lines | Homeowners [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	30,598	31,490
Standard Personal Lines | Other Personal [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	1,830	2,151
E&S Lines
Segment Reporting Information [Line Items]
Total revenues	61,998	58,995
E&S Lines | Casualty Insurance Product Line [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	43,833	44,072
E&S Lines | Property Insurance [Member]
Segment Reporting Information [Line Items]
Total net premiums earned	$ 18,165	$ 14,923

XML

Segment Information (Income Before and After Federal Income Tax) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Net investment income	$ 69,716	$ 55,967
Net realized and unrealized investment gains (losses)	5,119	(44,666)
Total investment segment income, before federal income tax	74,835	11,301
Tax on investment income	14,448	1,104
Total investment segment income, after federal income tax	60,387	10,197
Standard Commercial Lines
Segment Reporting Information [Line Items]
Underwriting gain, before federal income tax	69,499	17,126
Underwriting gain, after federal income tax	$ 54,904	$ 13,529
Combined ratio	88.20%	96.70%
ROE Contribution	8.60%	2.40%
Standard Personal Lines
Segment Reporting Information [Line Items]
Underwriting gain, before federal income tax	$ 7,695	$ 387
Underwriting gain, after federal income tax	$ 6,079	$ 306
Combined ratio	89.60%	99.50%
ROE Contribution	1.00%	0.10%
E&S Lines
Segment Reporting Information [Line Items]
Underwriting gain, before federal income tax	$ 516	$ 3,844
Underwriting gain, after federal income tax	$ 408	$ 3,037
Combined ratio	99.20%	93.50%
ROE Contribution	0.10%	0.60%
Investments
Segment Reporting Information [Line Items]
ROE Contribution	8.90%	8.50%

XML

Segment Information (Reconciliation of Segment Results to Income Before Federal Income Tax (Details)) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Investment income	$ 74,835	$ 11,301
Interest expense	(7,359)	(7,601)
Corporate expenses	(9,554)	(9,060)
Income before federal income tax	135,632	15,997
Preferred stock dividends	(2,453)	0
Income available to common stockholders, before tax	133,179	15,997
Standard Commercial Lines
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting gain, before federal income tax	69,499	17,126
Standard Personal Lines
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting gain, before federal income tax	7,695	387
E&S Lines
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting gain, before federal income tax	516	3,844
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total income, before federal income tax all segments	$ 152,545	$ 32,658

XML

Retirement Plans (Components of Net Periodic Benefit Cost) (Details) - Pension Plan [Member] - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost		$ 2,148	$ 2,828
Expected return on plan assets		(5,744)	(5,477)
Amortization of unrecognized net actuarial loss		625	704
Total net periodic pension cost (benefit)	[1]	$ (2,971)	$ (1,945)

[1] The 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.

XML

Retirement Plans (Weighted-Average Expense Assumptions) (Details) - Pension Plan [Member]	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	2.68%	3.33%
Effective interest rate for calculation of interest cost	2.06%	2.95%
Expected return on plan assets	5.40%	5.80%

XML

Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net income, Gross	$ 135,632	$ 15,997
Unrealized holding losses during the period, Gross	(103,308)	(93,981)
Unrealized losses on securities with credit loss recognized in earnings; Gross	(11,320)	(65,390)
Amounts reclassified into net income: HTM securities, Gross	(2)	25
Amounts reclassified into net income: Net realized losses on disposals and losses on intent-to-sell AFS securities, Gross	604	11,327
Amounts reclassified into net income: Credit loss expense, Gross	4,997	15,787
Total unrealized losses on investment securities, Gross	(109,029)	(132,232)
Amount reclassified into net income: Net actuarial loss, Gross	693	754
Total defined benefit pension and post-retirement benefit plans, Gross	693	754
Other comprehensive loss, Gross	(108,336)	(131,478)
Comprehensive income (loss) before tax	27,296	(115,481)
Net income, Tax	26,362	761
Unrealized holding losses during the period, Tax	(21,695)	(19,736)
Unrealized losses on securities with credit loss recognized in earnings; Tax	(2,377)	(13,732)
Amounts reclassified into net income: HTM securities, Tax	0	5
Amounts reclassified into net income: Net realized losses on disposals and losses on intent-to-sell AFS securities, Tax	127	2,379
Amounts reclassified into net income: Credit loss expense, Tax	1,049	3,315
Total unrealized losses on investment securities, Tax	(22,896)	(27,769)
Amount reclassified into net income: Net actuarial loss, Tax	146	158
Total defined benefit pension and post-retirement benefit plans, Tax	146	158
Other comprehensive loss, Tax	(22,750)	(27,611)
Comprehensive income (loss), Tax	3,612	(26,850)
Net income	109,270	15,236
Unrealized holding losses arising during period, Net	(81,613)	(74,245)
Unrealized losses on securities with credit loss recognized in earnings, Net	(8,943)	(51,658)
Amounts reclassified into net income: HTM Securities, Net	(2)	20
Amounts reclassified into net income: Net realized losses on disposals and losses on intent-to-sell AFS Securities, Net	477	8,948
Amounts reclassified into net income: Credit loss expense, Net	3,948	12,472
Total Unrealized Losses on Investment Securities, Net	(86,133)	(104,463)
Amount reclassified into net income: Net actuarial loss, Net	547	596
Total defined benefit pension and post-retirement plans, Net	547	596
Other Comprehensive loss, Net	(85,586)	(103,867)
Comprehensive Income (Loss), Net	$ 23,684	$ (88,631)

XML

Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2020	$ 220,186
Amounts reclassified from AOCI, HTM related	(2)	$ 20
Amount reclassified into net income: Net actuarial loss	547	596
Other comprehensive loss	(85,586)	(103,867)
Other comprehensive income, defined pension and post retirement plans	547	596
Ending Balance, March 31, 2021	134,600
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2020	307,790
OCI before reclassifications	(81,613)
Amounts reclassified from AOCI, All Other	477
Other comprehensive loss	(81,136)
Ending Balance, March 31, 2021	226,654
Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2020	305,250
OCI before reclassifications	(90,556)
Amounts reclassified from AOCI	4,423
Other comprehensive loss	(86,133)
Ending Balance, March 31, 2021	219,117
Accumulated Other-than-Temporary Impairment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2020	(2,546)
OCI before reclassifications	(8,943)
Amounts reclassified from AOCI, Credit loss related	3,948
Other comprehensive loss	(4,995)
Ending Balance, March 31, 2021	(7,541)
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Held-to-maturity Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2020	6
OCI before reclassifications	0
Amounts reclassified from AOCI, HTM related	(2)
Other comprehensive loss	(2)
Ending Balance, March 31, 2021	4
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2020	(85,064)
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans	0
Amount reclassified into net income: Net actuarial loss	547
Ending Balance, March 31, 2021	(84,517)
Accumulated other comprehensive income (loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2020	220,186
OCI before reclassifications	(90,556)
Amounts reclassified from AOCI	4,970
Other comprehensive loss	(85,586)	$ (103,867)
Ending Balance, March 31, 2021	$ 134,600

XML

Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net realized and unrealized investment gains (losses)	$ 5,119	$ (44,666)
Net investment income earned	69,716	55,967
Loss and loss expense incurred	413,401	400,324
Other insurance expenses	88,910	95,346
Income before federal income tax	135,632	15,997
Total federal income tax expense	(26,362)	(761)
Net income	109,270	15,236
Reclassification out of AOCI
Net income	4,970	22,036
Pension Plan [Member] | Reclassification out of AOCI
Loss and loss expense incurred	159	162
Other insurance expenses	534	592
Income before federal income tax	693	754
Total federal income tax expense	(146)	(158)
Net income	547	596
Held-to-maturity Securities [Member] | Reclassification out of AOCI
Net realized and unrealized investment gains (losses)	0	1
Net investment income earned	(2)	24
Income before federal income tax	(2)	25
Total federal income tax expense	0	(5)
Net income	(2)	20
Available for sale securities, excluding credit losses [Member] | Reclassification out of AOCI
Net realized and unrealized investment gains (losses)	604	11,327
Income before federal income tax	604	11,327
Total federal income tax expense	(127)	(2,379)
Net income	477	8,948
Available for sale securities, including credit losses | Reclassification out of AOCI
Net realized and unrealized investment gains (losses)	4,997	15,787
Income before federal income tax	4,997	15,787
Total federal income tax expense	(1,049)	(3,315)
Net income	$ 3,948	$ 12,472

XML

Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 02, 2020
Equity [Abstract]
Authorized amount for share repurchase program			$ 100,000
Shares repurchased	52,781	0
Treasury stock, share repurchase authorization, cost	$ 3,400
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 96,600