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: September 30, 2022

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 October 31, 2022, there were 60,275,170 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 September 30, 2022 (Unaudited) and December 31, 2021	1
	Unaudited Consolidated Statements of Income for the Quarter and Nine Months Ended September 30, 2022 and 2021	2
	Unaudited Consolidated Statements of Comprehensive Income for the Quarter and Nine Months Ended September 30, 2022 and 2021	3
	Unaudited Consolidated Statements of Stockholders' Equity for the Quarter and Nine Months Ended September 30, 2022 and 2021	4
	Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021	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	24
	Introduction	25
	Critical Accounting Policies and Estimates	25
	Financial Highlights of Results for Third Quarter and Nine Months 2022 and 2021	26
	Results of Operations and Related Information by Segment	29
	Federal Income Taxes	39
	Liquidity and Capital Resources	39
	Ratings	43
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	Controls and Procedures	43
PART II.  OTHER INFORMATION
Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3.	Defaults Upon Senior Securities	44
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	45
Signatures		46

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS	Unaudited
($ in thousands, except share amounts)	September 30, 2022		December 31, 2021
ASSETS
Investments:
Fixed income securities, held-to-maturity – at carrying value (fair value: $31,482 – 2022; $29,460 – 2021)	$	33,008	28,850
Less: allowance for credit losses	—		(65)
Fixed income securities, held-to-maturity, net of allowance for credit losses	33,008		28,785
Fixed income securities, available-for-sale – at fair value (allowance for credit losses: $52,337 – 2022 and $9,724 – 2021; amortized cost: $7,107,011 – 2022 and $6,490,753 – 2021)	6,472,100		6,709,976
Commercial mortgage loans – at carrying value (fair value: $136,652 – 2022 and $97,598 – 2021)	145,209		95,795
Less: allowance for credit losses	—		—
Commercial mortgage loans, net of allowance for credit losses	145,209		95,795
Equity securities – at fair value (cost:  $188,964 – 2022; $308,840 – 2021)	183,868		335,537
Short-term investments	269,302		447,863
Other investments	432,624		409,032
Total investments (Note 4 and 5)	$	7,536,111	8,026,988
Cash	538		455
Restricted cash	8,495		44,608
Accrued investment income	54,024		48,247
Premiums receivable	1,128,673		958,787
Less: allowance for credit losses (Note 6)	(15,200)		(13,600)
Premiums receivable, net of allowance for credit losses	1,113,473		945,187
Reinsurance recoverable	714,731		601,668
Less: allowance for credit losses (Note 7)	(1,600)		(1,600)
Reinsurance recoverable, net of allowance for credit losses	713,131		600,068
Prepaid reinsurance premiums	178,708		183,007
Current federal income tax	24,565		772
Deferred federal income tax	164,557		—
Property and equipment – at cost, net of accumulated depreciation and amortization of: $271,563 – 2022; $253,427 – 2021	85,333		82,053
Deferred policy acquisition costs	370,925		326,915
Goodwill	7,849		7,849
Other assets	262,772		195,240
Total assets	$	10,520,481	10,461,389
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for loss and loss expense (Note 8)	$	4,965,277	4,580,903
Unearned premiums	2,022,240		1,803,207
Long-term debt	505,151		506,050
Deferred federal income tax	—		13,413
Accrued salaries and benefits	112,227		121,057
Other liabilities	488,053		453,874
Total liabilities	$	8,092,948	7,478,504
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 - 2022 and 2021
Common stock of $2 par value per share:
Authorized shares 360,000,000
Issued: 104,778,828 – 2022; 104,450,916 – 2021	209,558		208,902
Additional paid-in capital	486,239		464,347
Retained earnings	2,683,763		2,603,472
Accumulated other comprehensive (loss) income (Note 11)	(525,011)		115,099
Treasury stock – at cost (shares:  44,505,337 – 2022; 44,266,534 – 2021)	(627,016)		(608,935)
Total stockholders’ equity	$	2,427,533	2,982,885
Commitments and contingencies
Total liabilities and stockholders’ equity	$	10,520,481	10,461,389

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

1

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands, except per share amounts)	2022		2021	2022		2021
Revenues:
Net premiums earned	$	853,879	767,247	$	2,500,601	2,232,725
Net investment income earned	63,889		93,032	206,713		246,479
Net realized and unrealized investment (losses) gains	(25,681)		177	(108,913)		15,353
Other income	2,933		4,588	7,499		14,912
Total revenues	895,020		865,044	2,605,900		2,509,469
Expenses:
Loss and loss expense incurred	547,826		505,269	1,566,930		1,340,293
Amortization of deferred policy acquisition costs	179,048		160,868	522,186		464,276
Other insurance expenses	102,806		94,759	298,310		278,531
Interest expense	7,179		7,242	21,599		21,967
Corporate expenses	5,522		4,270	24,442		22,936
Total expenses	842,381		772,408	2,433,467		2,128,003
Income before federal income tax	52,639		92,636	172,433		381,466
Federal income tax expense:
Current	14,813		18,878	41,682		79,319
Deferred	(4,699)		53	(7,624)		(2,711)
Total federal income tax expense	10,114		18,931	34,058		76,608
Net income	$	42,525	73,705	$	138,375	304,858
Preferred stock dividends	2,300		2,300	6,900		7,053
Net income available to common stockholders	$	40,225	71,405	$	131,475	297,805
Earnings per common share:
Net income available to common stockholders - Basic	$	0.67	1.19	$	2.18	4.95
Net income available to common stockholders - Diluted	$	0.66	1.18	$	2.16	4.92

    

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

2

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Net income	$	42,525	73,705	$	138,375	304,858
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains on investment securities:
Unrealized holding losses arising during period	(149,803)		(27,875)	(532,744)		(81,402)
Unrealized losses on securities with credit loss recognized in earnings	(53,946)		(1,851)	(179,803)		(2,906)
Amounts reclassified into net income:
Held-to-maturity securities	1		1	2		(3)
Net realized losses (gains) on disposals and intent-to-sell available-for-sale securities	11,246		(1,024)	38,233		(501)
Credit loss expense	3,532		1,054	33,214		3,207
Total unrealized losses on investment securities	(188,970)		(29,695)	(641,098)		(81,605)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	329		548	988		1,643
Total defined benefit pension and post-retirement plans	329		548	988		1,643
Other comprehensive loss	(188,641)		(29,147)	(640,110)		(79,962)
Comprehensive (loss) income	$	(146,116)	44,558	$	(501,735)	224,896

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

3

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands, except share and per share amounts)	2022		2021	2022		2021
Preferred stock:
Beginning of period	$	200,000	200,000	$	200,000	200,000
Issuance of preferred stock	—		—	—		—
End of period	200,000		200,000	200,000		200,000
Common stock:
Beginning of period	209,506		208,742	208,902		208,066
Dividend reinvestment plan	11		10	34		34
Stock purchase and compensation plans	41		26	622		678
End of period	209,558		208,778	209,558		208,778
Additional paid-in capital:
Beginning of period	481,380		454,459	464,347		438,985
Dividend reinvestment plan	438		416	1,325		1,261
Stock purchase and compensation plans	4,421		3,268	20,567		17,897
End of period	486,239		458,143	486,239		458,143
Retained earnings:
Beginning of period	2,660,584		2,467,596	2,603,472		2,271,537
Net income	42,525		73,705	138,375		304,858
Dividends to preferred stockholders	(2,300)		(2,300)	(6,900)		(7,053)
Dividends to common stockholders	(17,046)		(15,191)	(51,184)		(45,532)
End of period	2,683,763		2,523,810	2,683,763		2,523,810
Accumulated other comprehensive (loss) income:
Beginning of period	(336,370)		169,371	115,099		220,186
Other comprehensive loss	(188,641)		(29,147)	(640,110)		(79,962)
End of period	(525,011)		140,224	(525,011)		140,224
Treasury stock:
Beginning of period	(621,010)		(608,801)	(608,935)		(599,885)
Acquisition of treasury stock - share repurchase authorization	(5,931)		—	(12,423)		(3,404)
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans	(75)		(58)	(5,658)		(5,570)
End of period	(627,016)		(608,859)	(627,016)		(608,859)
Total stockholders’ equity	$	2,427,533	2,922,096	$	2,427,533	2,922,096
Dividends declared per preferred share	$	287.50	287.50	$	862.50	881.67
Dividends declared per common share	$	0.28	0.25	$	0.84	0.75
Preferred stock, shares outstanding:
Beginning of period	8,000		8,000	8,000		8,000
Issuance of preferred stock	—		—	—		—
End of period	8,000		8,000	8,000		8,000
Common stock, shares outstanding:
Beginning of period	60,327,734		60,106,236	60,184,382		59,905,803
Dividend reinvestment plan	5,647		5,096	17,152		17,152
Stock purchase and compensation plan	20,073		12,946	310,760		339,061
Acquisition of treasury stock - share repurchase authorization	(79,100)		—	(165,159)		(52,781)
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans	(863)		(743)	(73,644)		(85,700)
End of period	60,273,491		60,123,535	60,273,491		60,123,535

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

4

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS	Nine Months ended September 30,
($ in thousands)	2022		2021
Operating Activities
Net income	$	138,375	304,858
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	34,350		40,706
Stock-based compensation expense	15,123		13,431
Undistributed gains of equity method investments	(12,971)		(65,215)
Distributions in excess of current year income of equity method investments	33,365		2,750
Net realized and unrealized losses (gains)	108,913		(15,353)
Loss on disposal of fixed assets	—		50
Changes in assets and liabilities:
Increase in reserve for loss and loss expense, net of reinsurance recoverable	271,311		251,260
Increase in unearned premiums, net of prepaid reinsurance	223,332		211,564
Increase in net federal income taxes	(31,607)		(17,866)
Increase in premiums receivable	(168,286)		(148,817)
Increase in deferred policy acquisition costs	(44,010)		(45,417)
Increase in accrued investment income	(5,936)		(1,249)
Decrease in accrued salaries and benefits	(8,830)		(1,160)
Increase in other assets	(31,241)		(22,045)
(Decrease) increase in other liabilities	(36,444)		35,806
Net cash provided by operating activities	485,444		543,303
Investing Activities
Purchases of fixed income securities, held-to-maturity	(6,692)		(11,250)
Purchases of fixed income securities, available-for-sale	(2,183,013)		(1,660,798)
Purchases of commercial mortgage loans	(57,289)		(38,129)
Purchases of equity securities	(21,044)		(82,223)
Purchases of other investments	(45,495)		(63,661)
Purchases of short-term investments	(3,123,086)		(3,443,597)
Sales of fixed income securities, available-for-sale	986,367		384,586
Proceeds from commercial mortgage loans	7,875		442
Sales of short-term investments	3,302,140		3,497,243
Redemption and maturities of fixed income securities, held-to-maturity	2,508		2,735
Redemption and maturities of fixed income securities, available-for-sale	539,680		910,741
Sales of equity securities	155,670		85,373
Sales of other investments	2,156		5,377
Distributions from other investments	11,114		10,524
Purchases of property and equipment	(21,758)		(15,123)
Net cash used in investing activities	(450,867)		(417,760)
Financing Activities
Dividends to preferred stockholders	(6,900)		(7,053)
Dividends to common stockholders	(49,307)		(43,756)
Acquisition of treasury stock	(18,081)		(8,974)
Net proceeds from stock purchase and compensation plans	5,500		4,575
Preferred stock issued, net of issuance costs	—		(479)
Proceeds from borrowings	35,000		—
Repayments of borrowings	(35,000)		(50,000)
Repayments of finance lease obligations	(1,819)		(298)
Net cash used in financing activities	(70,607)		(105,985)
Net (decrease) increase in cash and restricted cash	(36,030)		19,558
Cash and restricted cash, beginning of period	45,063		15,231
Cash and restricted cash, end of period	$	9,033	34,789

The accompanying notes are an integral part of these unaudited interim 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 (i) United States ("U.S.") generally accepted accounting principles (“GAAP”), and (ii) the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. These require management 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 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 third quarters ended September 30, 2022 (“Third Quarter 2022”) and September 30, 2021 (“Third Quarter 2021”), and the nine-month periods ended September 30, 2022 ("Nine Months 2022") and September 30, 2021 ("Nine Months 2021"). Our Financial Statements do not include all information and disclosures required by GAAP and the SEC for audited annual financial statements. Because interim period results of operations are not necessarily indicative of full-year results, our Financial Statements should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Annual Report”) filed with the SEC.

NOTE 2. Adoption of Accounting Pronouncements 

There was no adoption of accounting pronouncements in Third Quarter and Nine Months 2022.

Pronouncements to be effective in the future

In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 GAAP guidance 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, but we do not anticipate its adoption to have a material impact on our financial condition and results of operations.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual sales restriction on an equity security is not considered when determining the security's fair value. This ASU was issued to eliminate diversity in practice by clarifying that contractual arrangements restricting an entity's ability to sell the security for a certain period of time is a characteristic of the reporting entity and should not be contemplated when determining the security's fair value. ASU 2022-03 requires new disclosures that provide investors with information about the restriction, including the nature and remaining duration of the restriction. The ASU is effective for annual periods beginning after December 15, 2023, including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of this guidance.

6

NOTE 3. Statements of Cash Flows

Supplemental cash flow information was as follows:

	Nine Months ended September 30,
($ in thousands)	2022		2021
Cash paid (received) during the period for:
Interest	$	22,699	23,278
Federal income tax	61,000		93,000
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	6,096		6,480
Operating cash flows from financing leases	33		5
Financing cash flows from finance leases	1,819		298
Non-cash items:
Corporate actions related to fixed income securities, available-for-sale ("AFS")1	32,546		50,501
Corporate actions related to equity securities1	—		527
Conversion of AFS fixed income securities to equity securities	1,463		—
Assets acquired under finance lease arrangements	650		183
Assets acquired under operating lease arrangements	15,514		273
Non-cash purchase of property and equipment	—		—

1Examples of corporate actions include like-kind 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)	September 30, 2022		December 31, 2021
Cash	$	538	455
Restricted cash	8,495		44,608
Cash and restricted cash shown in the Consolidated Statements of Cash Flows	$	9,033	45,063

Amounts in restricted cash represent cash received from the National Flood Insurance Program ("NFIP") that can only be used to pay flood claims under the Write Your Own program. Restricted cash was elevated at December 31, 2021, primarily to pay Hurricane Ida flood claims.

NOTE 4. Investments

(a) Information regarding our AFS securities as of September 30, 2022 and December 31, 2021, were as follows:

September 30, 2022
($ 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	$	168,340	—	6	(20,115)	148,231
Foreign government	16,060		(320)	—	(1,960)	13,780
Obligations of states and political subdivisions	1,031,937		(1,311)	141	(63,137)	967,630
Corporate securities	2,535,367		(36,970)	1,222	(234,983)	2,264,636
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	1,581,097		(3,114)	1,732	(112,292)	1,467,423
Residential mortgage-backed securities ("RMBS")	1,130,752		(10,603)	764	(104,856)	1,016,057
Commercial mortgage-backed securities ("CMBS")	643,458		(19)	102	(49,198)	594,343
Total AFS fixed income securities	$	7,107,011	(52,337)	3,967	(586,541)	6,472,100

7

December 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	$	127,974	—	3,629	(1,145)	130,458
Foreign government	15,420		(46)	609	(123)	15,860
Obligations of states and political subdivisions	1,121,422		(137)	68,258	(235)	1,189,308
Corporate securities	2,478,348		(6,682)	106,890	(4,953)	2,573,603
CLO and other ABS	1,343,687		(939)	14,350	(6,284)	1,350,814
RMBS	756,280		(1,909)	24,813	(2,932)	776,252
CMBS	647,622		(11)	27,752	(1,682)	673,681
Total AFS fixed income securities	$	6,490,753	(9,724)	246,301	(17,354)	6,709,976

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

Quarter ended September 30, 2022
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	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	$	265	40	—	15	—	—	320
Obligations of states and political subdivisions	1,206		313	—	(181)	(27)	—	1,311
Corporate securities	35,072		4,061	—	633	(2,733)	(63)	36,970
CLO and other ABS	3,623		35	—	(527)	(17)	—	3,114
RMBS	10,616		35	—	46	(94)	—	10,603
CMBS	18		—	—	1	—	—	19
Total AFS fixed income securities	$	50,800	4,484	—	(13)	(2,871)	(63)	52,337

Quarter ended September 30, 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	$	49	—	(2)	—	—	47
Obligations of states and political subdivisions	38		61	—	—	—	99
Corporate securities	3,477		1,307	64	(49)	(80)	4,719
CLO and other ABS	1,399		46	(517)	(2)	—	926
RMBS	1,034		248	125	(44)	—	1,363
CMBS	14		4	(3)	—	—	15
Total AFS fixed income securities	$	6,011	1,666	(333)	(95)	(80)	7,169

Nine Months ended September 30, 2022
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	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	$	46	292	—	(4)	(14)	—	320
Obligations of states and political subdivisions	137		1,371	—	(6)	(191)	—	1,311
Corporate securities	6,682		33,096	—	4,384	(5,925)	(1,267)	36,970
CLO and other ABS	939		1,580	—	623	(28)	—	3,114
RMBS	1,909		225	8,318	473	(322)	—	10,603
CMBS	11		18	—	(10)	—	—	19
Total AFS fixed income securities	$	9,724	36,582	8,318	5,460	(6,480)	(1,267)	52,337

8

Nine Months ended September 30, 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	47	(1)	—	—	47
Obligations of states and political subdivisions	4		84	11	—	—	99
Corporate securities	2,782		3,413	(765)	(570)	(141)	4,719
CLO and other ABS	592		573	(219)	(20)	—	926
RMBS	561		1,018	(95)	(121)	—	1,363
CMBS	29		4	(18)	—	—	15
Total AFS fixed income securities	$	3,969	5,139	(1,087)	(711)	(141)	7,169

During Third Quarter and Nine Months 2022 and 2021, we had no write-offs or recoveries of our AFS fixed income securities.

For information on our methodology and significant inputs used to measure expected credit losses, 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 2021 Annual Report. Accrued interest on AFS securities was $52.8 million as of September 30, 2022, and $46.3 million as of December 31, 2021. We did not record any material write-offs of accrued interest during 2022 and 2021.

(b) Quantitative information about unrealized losses on our AFS portfolio follows:

September 30, 2022	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	$	138,136	(16,003)	9,819	(4,112)	147,955	(20,115)
Foreign government	12,069		(1,501)	1,711	(459)	13,780	(1,960)
Obligations of states and political subdivisions	921,980		(62,494)	3,886	(643)	925,866	(63,137)
Corporate securities	2,037,738		(217,328)	61,315	(17,655)	2,099,053	(234,983)
CLO and other ABS	1,107,292		(82,751)	269,902	(29,541)	1,377,194	(112,292)
RMBS	937,823		(93,871)	45,296	(10,985)	983,119	(104,856)
CMBS	538,907		(40,359)	52,313	(8,839)	591,220	(49,198)
Total AFS fixed income securities	$	5,693,945	(514,307)	444,242	(72,234)	6,138,187	(586,541)

December 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	$	34,857	(746)	7,827	(399)	42,684	(1,145)
Foreign government	2,000		(84)	1,061	(39)	3,061	(123)
Obligations of states and political subdivisions	25,837		(235)	—	—	25,837	(235)
Corporate securities	300,549		(4,903)	2,520	(50)	303,069	(4,953)
CLO and other ABS	663,976		(4,934)	53,368	(1,350)	717,344	(6,284)
RMBS	236,010		(2,931)	20	(1)	236,030	(2,932)
CMBS	112,899		(1,016)	20,326	(666)	133,225	(1,682)
Total AFS fixed income securities	$	1,376,128	(14,849)	85,122	(2,505)	1,461,250	(17,354)

We currently do not intend to sell any of the securities summarized in the tables above, nor will we be required to sell any of them. The increase in gross unrealized losses as of September 30, 2022, compared to December 31, 2021, was driven by an increase in benchmark U.S. Treasury rates and a widening of credit spreads, with the increase in interest rates having the most significant impact. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report, we have concluded that no allowance for credit loss is required on these balances beyond the allowance for credit loss recorded as of September 30, 2022. This conclusion reflects our current judgment about the financial position and future prospects of the entities that issued the investment security and underlying collateral.

9

(c) AFS and held-to-maturity ("HTM") fixed income securities at September 30, 2022, by contractual maturity are shown below. The maturities of mortgage-backed securities were calculated using each security's estimated average life. 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	$	322,189	6,577	6,595
Due after one year through five years	2,826,402		4,955	4,907
Due after five years through 10 years	2,410,981		21,476	19,980
Due after 10 years	912,528		—	—
Total fixed income securities	$	6,472,100	33,008	31,482

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

Other Investments	September 30, 2022				December 31, 2021
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	284,538	126,446	410,984	273,070	99,734	372,804
Private credit	55,398		91,196	146,594	63,138	92,674	155,812
Real assets	27,885		29,103	56,988	23,524	22,579	46,103
Total alternative investments	367,821		246,745	614,566	359,732	214,987	574,719
Other securities	64,803		—	64,803	49,300	—	49,300
Total other investments	$	432,624	246,745	679,369	409,032	214,987	624,019

1In addition to the amounts in this table, previously recognized tax credits are subject to the risk of recapture. We do not consider the risk of recapture to be significant and therefore do not reflect this risk in the Maximum Exposure to Loss column in this table.

We are contractually committed to make additional investments up to the remaining commitments stated above. We did not provide any non-contractual financial support during 2022 or 2021.

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 total net income reported by these investments to all of their investors for the three and nine months ended June 30, 2022 and June 30, 2021, and (ii) the portion of these results that are included in our Third Quarter and Nine Months 2022 and 2021 results:

Income Statement Information	Quarter ended September 30,			Nine Months ended September 30,
($ in millions)	2022		2021	2022		2021
Net investment income	$	205.6	60.4	$	612.0	550.3
Realized gains	1,983.5		1,857.6	10,964.9		4,026.2
Net change in unrealized appreciation	(3,188.9)		11,188.2	(1,973.0)		20,767.9
Net income	$	(999.8)	13,106.2	$	9,603.9	25,344.4
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income	$	(5.6)	42.8	$	22.8	92.9

(e) We have pledged certain AFS fixed income securities as collateral related to our borrowing relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, we had certain securities on deposit with various state and regulatory agencies at September 30, 2022 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral.

10

The following table summarizes the market value of these securities at September 30, 2022:

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	18.9	18.9
Obligations of states and political subdivisions	—		—	3.6	3.6
RMBS	60.5		29.7	—	90.2
CMBS	4.8		10.0	—	14.8
Total pledged as collateral	$	65.3	39.7	22.5	127.5

(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 agencies, as of September 30, 2022, or December 31, 2021.

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

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Fixed income securities	$	68,236	51,683	$	184,305	157,114
Commercial mortgage loans ("CMLs")	1,600		683	3,762		1,892
Equity securities	2,604		2,955	7,661		8,425
Short-term investments	1,152		64	1,660		204
Other investments	(5,469)		42,865	22,896		93,158
Investment expenses	(4,234)		(5,218)	(13,571)		(14,314)
Net investment income earned	$	63,889	93,032	$	206,713	246,479

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

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Gross gains on sales	$	7,094	7,151	$	23,843	12,906
Gross losses on sales	(19,668)		(2,505)	(52,573)		(8,787)
Net realized (losses) gains on disposals	(12,574)		4,646	(28,730)		4,119
Net unrealized (losses) gains on equity securities	(7,777)		(3,111)	(31,791)		15,830
Net credit loss expense on fixed income securities, AFS	(4,471)		(1,334)	(42,042)		(4,059)
Net credit loss benefit (expense) on fixed income securities, HTM	54		6	62		(54)
Losses on securities for which we have the intent to sell	(913)		(30)	(6,412)		(483)
Net realized and unrealized (losses) gains	$	(25,681)	177	$	(108,913)	15,353

Net realized and unrealized investment gains decreased $25.9 million in Third Quarter 2022 and $124.3 million in Nine Months 2022 compared to the same prior-year periods, primarily driven by (i) a decrease in valuations reflecting the current public equities market, (ii) active trading of our fixed income securities in an effort to opportunistically increase yield given the rising interest rate environment, and (iii) higher credit loss expense on our AFS fixed income securities portfolio.

Net unrealized losses and gains recognized in income on equity securities, as reflected in the table above, included the following:

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Unrealized (losses) gains recognized in income on equity securities:
On securities remaining in our portfolio at end of period	$	(5,832)	269	$	(16,334)	14,767
On securities sold in period	(1,945)		(3,380)	(15,457)		1,063
Total unrealized (losses) gains recognized in income on equity securities	$	(7,777)	(3,111)	$	(31,791)	15,830

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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 fair values of our financial liabilities as of September 30, 2022, and December 31, 2021:

	September 30, 2022			December 31, 2021
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	49,920	50,225	49,917	63,719
6.70% Senior Notes	99,536		97,098	99,520	127,574
5.375% Senior Notes	294,400		255,216	294,330	395,652
3.03% borrowings from FHLBI	60,000		57,025	60,000	64,126
Subtotal long-term debt	503,856		459,564	503,767	651,071
Unamortized debt issuance costs	(2,986)			(3,167)
Finance lease obligations	4,281			5,450
Total long-term debt	$	505,151		506,050

For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at September 30, 2022, and December 31, 2021:

September 30, 2022			Fair Value Measurements Using
($ in thousands)	Assets  Measured 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)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	148,231	75,858	72,373	—
Foreign government	13,780		—	13,780	—
Obligations of states and political subdivisions	967,630		—	960,919	6,711
Corporate securities	2,264,636		—	2,098,812	165,824
CLO and other ABS	1,467,423		—	1,341,751	125,672
RMBS	1,016,057		—	1,016,057	—
CMBS	594,343		—	593,970	373
Total AFS fixed income securities	6,472,100		75,858	6,097,662	298,580
Equity securities:
Common stock1	182,138		81,029	—	—
Preferred stock	1,730		1,730	—	—
Total equity securities	183,868		82,759	—	—
Short-term investments	269,302		268,982	320	—
Total assets measured at fair value	$	6,925,270	427,599	6,097,982	298,580

12

December 31, 2021			Fair Value Measurements Using
($ in thousands)	Assets  Measured 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)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	130,458	60,615	69,843	—
Foreign government	15,860		—	15,860	—
Obligations of states and political subdivisions	1,189,308		—	1,181,563	7,745
Corporate securities	2,573,603		—	2,459,476	114,127
CLO and other ABS	1,350,814		—	1,225,905	124,909
RMBS	776,252		—	776,007	245
CMBS	673,681		—	669,425	4,256
Total AFS fixed income securities	6,709,976		60,615	6,398,079	251,282
Equity securities:
Common stock1	333,449		249,846	—	—
Preferred stock	2,088		2,088	—	—
Total equity securities	335,537		251,934	—	—
Short-term investments	447,863		442,723	5,140	—
Total assets measured at fair value	$	7,493,376	755,272	6,403,219	251,282

1Investments amounting to $101.1 million at September 30, 2022, and $83.6 million at December 31, 2021, were measured at fair value using the net asset value per share (or its practical expedient) and have not been 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 in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

The following tables provide a summary of Level 3 changes in Nine Months 2022 and Nine Months 2021:

September 30, 2022
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	RMBS	CMBS	Total
Fair value, December 31, 2021	$	7,745	114,127	124,909	245	4,256	251,282
Total net (losses) gains for the period included in:
Other comprehensive income ("OCI")	(879)		(23,847)	(11,436)	(17)	(477)	(36,656)
Net realized and unrealized (losses) gains	(155)		(2,345)	(771)	—	(7)	(3,278)
Net investment income earned	—		49	127	—	46	222
Purchases	—		74,327	44,167	—	—	118,494
Sales	—		—	—	—	—	—
Issuances	—		—	—	—	—	—
Settlements	—		(8,663)	(6,678)	(11)	(15)	(15,367)
Transfers into Level 3	—		19,214	—	—	—	19,214
Transfers out of Level 3	—		(7,038)	(24,646)	(217)	(3,430)	(35,331)
Fair value, September 30, 2022	$	6,711	165,824	125,672	—	373	298,580
Change in unrealized losses for the period included in earnings for assets held at period end	(155)		(2,330)	(771)	—	(7)	(3,263)
Change in unrealized losses for the period included in OCI for assets held at period end	(879)		(23,852)	(11,395)	(17)	(477)	(36,620)

13

September 30, 2021
($ in thousands)	Obligation of state 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	9		2,607	206	2,822
Net realized and unrealized (losses) gains	—		(185)	(35)	(220)
Net investment income earned	—		14	9	23
Purchases	—		43,833	19,041	62,874
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		(210)	(1,750)	(1,960)
Transfers into Level 3	5,101		981	3,226	9,308
Transfers out of Level 3	—		(7,454)	(14,643)	(22,097)
Fair value, September 30, 2021	$	8,004	110,286	62,429	180,719
Change in unrealized (losses) gains for the period included in earnings for assets held at period end	—		(185)	(35)	(220)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	9		2,607	206	2,822

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at September 30, 2022, and December 31, 2021:

September 30, 2022
($ in thousands)	Assets Measured at Fair Value		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Internal valuations:
Corporate securities	$	77,424	Discounted Cash Flow	Illiquidity Spread	(4.4)% - 19.6%	1.8%
CLO and other ABS	40,883		Discounted Cash Flow	Illiquidity Spread	0.01% - 8.0%	1.9%
Total internal valuations	118,307
Other1	180,273
Total Level 3 securities	$	298,580

December 31, 2021
($ in thousands)	Assets Measured at Fair Value		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Internal valuations:
Corporate securities	$	54,135	Discounted Cash Flow	Illiquidity Spread	0.3% - 3.0%	1.2%
CLO and other ABS	34,903		Discounted Cash Flow	Illiquidity Spread	0.7% - 8.0%	2.1%
Total internal valuations	89,038
Other1	162,244
Total Level 3 securities	$	251,282

1Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency into the inputs used to develop the valuations. The quantitative details of these unobservable inputs is neither provided to us, nor reasonably available to us, and therefore are not included in the tables above.

For the securities in the tables above valued using a discounted cash flow analysis, we apply an illiquidity spread in our determination of fair value. An increase in this assumption would result in a lower fair value measurement.

14

The following tables provide quantitative information about our financial assets and liabilities that were not measured at fair value, but were disclosed as such at September 30, 2022, and December 31, 2021:

September 30, 2022			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	$	3,424	—	3,424	—
Corporate securities	28,058		—	28,058	—
Total HTM fixed income securities	$	31,482	—	31,482	—
CMLs	$	136,652	—	—	136,652
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	50,225	—	50,225	—
6.70% Senior Notes	97,098		—	97,098	—
5.375% Senior Notes	255,216		—	255,216	—
3.03% borrowings from FHLBI	57,025		—	57,025	—
Total long-term debt	$	459,564	—	459,564	—

December 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	$	3,576	—	3,576	—
Corporate securities	25,884		—	25,884	—
Total HTM fixed income securities	$	29,460	—	29,460	—
CMLs	$	97,598	—	—	97,598
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	63,719	—	63,719	—
6.70% Senior Notes	127,574		—	127,574	—
5.375% Senior Notes	395,652		—	395,652	—
3.03% borrowings from FHLBI	64,126		—	64,126	—
Total long-term debt	$	651,071	—	651,071	—

NOTE 6. Allowance for Credit Losses on Premiums Receivable

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

	Quarter ended September 30,				Nine Months ended September 30,
($ in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	14,900	$	18,300	$	13,600	$	21,000
Current period change for expected credit losses	2,250		180		4,335		1,721
Write-offs charged against the allowance for credit losses	(2,349)		(2,154)		(3,787)		(6,554)
Recoveries	399		174		1,052		333
Allowance for credit losses, end of period	$	15,200	$	16,500	$	15,200	$	16,500

In Third Quarter 2022, we recognized an additional allowance for credit losses on premiums receivable of $2.6 million, excluding the impact of write-offs. The additional allowance consisted of a reserve of $2.7 million on 2022 premiums based on our historical write-off percentages and assumptions, partially offset by a $0.1 million allowance reduction on 2021 and older policies.

15

In Nine Months 2022, we recognized an additional allowance for credit losses on premiums receivable of $5.4 million, excluding the impact of write-offs. The additional allowance consisted of a reserve of $7.0 million on 2022 premiums based on our historical write-off percentages and assumptions, partially offset by a $1.6 million allowance reduction on 2021 and older policies, primarily impacted by the COVID-19 pandemic, for which the credit loss did not fully materialize.

In Third Quarter 2021, we recognized expected credit losses, excluding the impact of write-offs, of $1.2 million on 2021 policies based on our historical write-off percentages and assumptions, partially offset by a $0.8 million allowance reduction on older policies. In Nine Months 2021, we recognized expected credit losses, excluding the impact of write-offs, of $6.3 million on 2021 policies based on our historical write-off percentages and assumptions, partially offset by a $4.2 million allowance reduction on older policies.

For a discussion of the methodology used to evaluate our estimate of expected credit losses on premiums receivable, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

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 September 30, 2022, and December 31, 2021:

	September 30, 2022
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	45,356	$	—	$	45,356
A+	360,085		920		361,005
A	98,860		176		99,036
A-	2,301		90		2,391
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	506,602	$	1,186	$	507,788
Non-rated reinsurers
Federal and state pools	$	202,989	$	—	$	202,989
Other than federal and state pools	3,676		278		3,954
Total non-rated reinsurers	$	206,665	$	278	$	206,943
Total reinsurance recoverable, gross	$	713,267	$	1,464	$	714,731
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	713,131

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	December 31, 2021
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	38,601	$	9	$	38,610
A+	339,857		1,520		341,377
A	95,675		1,227		96,902
A-	3,209		145		3,354
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	477,342	$	2,901	$	480,243
Non-rated reinsurers
Federal and state pools	$	116,378	$	—	$	116,378
Other than federal and state pools	4,597		450		5,047
Total non-rated reinsurers	$	120,975	$	450	$	121,425
Total reinsurance recoverable, gross	$	598,317	$	3,351	$	601,668
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	600,068

The $86.6 million increase in "Federal and state pools" as of September 30, 2022, compared to December 31, 2021, was primarily due to NFIP reserves recorded in Third Quarter 2022 for flood losses in Florida and surrounding states as a result of Hurricane Ian, which are 100% ceded to the NFIP.

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

($ in thousands)	Quarter ended September 30,			Nine Months ended September 30,
	2022		2021	2022		2021
Balance at beginning of period	$	1,600	1,777	$	1,600	1,777
Current period change for expected credit losses	—		(182)	—		(182)
Write-offs charged against the allowance for credit losses	—		—	—		—
Recoveries	—		—	—		—
Allowance for credit losses, end of period	$	1,600	1,595	$	1,600	1,595

For a discussion of the methodology used to evaluate our estimate of expected credit losses on our reinsurance recoverable balance, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

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The following table lists direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the indicated periods. For more information about reinsurance, refer to Note 9. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2021 Annual Report.

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Premiums written:
Direct	$	1,037,612	932,752	$	3,089,166	2,796,296
Assumed	9,531		7,136	23,398		17,541
Ceded	(143,749)		(126,982)	(388,631)		(369,548)
Net	$	903,394	812,906	$	2,723,933	2,444,289
Premiums earned:
Direct	$	984,981	877,620	$	2,872,008	2,568,445
Assumed	8,514		6,304	21,523		16,391
Ceded	(139,616)		(116,677)	(392,930)		(352,111)
Net	$	853,879	767,247	$	2,500,601	2,232,725
Loss and loss expenses incurred:
Direct	$	732,568	655,483	$	1,821,069	1,557,063
Assumed	6,443		4,143	15,846		10,807
Ceded	(191,185)		(154,357)	(269,985)		(227,577)
Net	$	547,826	505,269	$	1,566,930	1,340,293

NOTE 8. Reserve for Loss and Loss Expense

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

	Nine Months ended September 30,
($ in thousands)	2022		2021
Gross reserve for loss and loss expense, at beginning of period	$	4,580,903	4,260,355
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of period	578,641		554,269
Net reserve for loss and loss expense, at beginning of period	4,002,262		3,706,086
Incurred loss and loss expense for claims occurring in the:
Current year	1,610,940		1,408,240
Prior years	(44,010)		(67,947)
Total incurred loss and loss expense	1,566,930		1,340,293
Paid loss and loss expense for claims occurring in the:
Current year	513,118		430,288
Prior years	779,438		675,782
Total paid loss and loss expense	1,292,556		1,106,070
Net reserve for loss and loss expense, at end of period	4,276,636		3,940,309
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	688,641		670,031
Gross reserve for loss and loss expense at end of period	$	4,965,277	4,610,340

Prior year reserve development in Nine Months 2022 was favorable by $44.0 million, consisting of $48.0 million of favorable casualty reserve development, partially offset by $4.0 million of unfavorable property reserve development. The favorable casualty reserve development included $40.0 million in our workers compensation line of business, $10.0 million in our bonds line of business, $8.0 million in our businessowners' policies line of business, and $5.0 million in our general liability line of business, partially offset by $15.0 million of unfavorable casualty reserve development in our commercial automobile line of business.

Prior year reserve development in Nine Months 2021 was favorable by $67.9 million, primarily consisting of $66.0 million of casualty reserve development. The favorable casualty reserve development included $29.0 million in our general liability line of business, $28.0 million in our workers compensation line of business, $7.0 million in our Excess and Surplus (E&S") casualty lines of business, and $2.0 million in our businessowners' policies line of business.

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 based 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.

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•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 Investments segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses. No segment has a separate investment portfolio or allocated assets.

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

Revenue by Segment	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Standard Commercial Lines:
Net premiums earned:
General liability	$	225,302	205,904	$	667,912	596,717
Commercial automobile	207,129		185,610	599,340		535,519
Commercial property	128,268		111,981	371,892		320,904
Workers compensation	81,996		78,318	250,178		230,845
Businessowners' policies	32,130		23,025	93,682		80,963
Bonds	11,094		8,850	32,136		26,436
Other	6,518		5,883	19,003		17,082
Miscellaneous income	2,444		4,168	6,141		13,670
Total Standard Commercial Lines revenue	694,881		623,739	2,040,284		1,822,136
Standard Personal Lines:
Net premiums earned:
Personal automobile	40,746		40,575	120,414		122,977
Homeowners	32,619		30,633	95,436		91,801
Other	2,273		2,154	5,768		5,698
Miscellaneous income	489		420	1,358		1,242
Total Standard Personal Lines revenue	76,127		73,782	222,976		221,718
E&S Lines:
Net premiums earned:
Casualty lines	59,640		52,983	170,305		144,458
Property lines	26,164		21,331	74,535		59,325
Total E&S Lines revenue	85,804		74,314	244,840		203,783
Investments:
Net investment income	63,889		93,032	206,713		246,479
Net realized and unrealized investment (losses) gains	(25,681)		177	(108,913)		15,353
Total Investments revenue	38,208		93,209	97,800		261,832
Total revenues	$	895,020	865,044	$	2,605,900	2,509,469

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Income Before and After Federal Income Tax	Quarter ended September 30,				Nine Months ended September 30,
($ in thousands)	2022			2021	2022		2021
Standard Commercial Lines:
Underwriting income, before federal income tax	$	22,501		17,413	$	111,593	154,850
Underwriting income, after federal income tax	17,776			13,756	88,158		122,332
Combined ratio	96.8		%	97.2	94.5		91.4
ROE contribution	3.1			2.1	4.7		6.2
Standard Personal Lines:
Underwriting (loss) income, before federal income tax	$	(1,385)		(11,146)	$	(7,232)	2,193
Underwriting (loss) income, after federal income tax	(1,094)			(8,805)	(5,713)		1,732
Combined ratio	101.8		%	115.2	103.3		99.0
ROE contribution	(0.2)			(1.3)	(0.3)		0.1
E&S Lines:
Underwriting income, before federal income tax	$	6,016		4,672	$	16,313	7,494
Underwriting income, after federal income tax	4,753			3,691	12,887		5,920
Combined ratio	93.0		%	93.7	93.3		96.3
ROE contribution	0.8			0.5	0.7		0.3
Investments:
Net investment income earned	$	63,889		93,032	$	206,713	246,479
Net realized and unrealized investment (losses) gains	(25,681)			177	(108,913)		15,353
Total investments segment income, before federal income tax	38,208			93,209	97,800		261,832
Tax on investments segment income	6,964			18,379	17,136		51,229
Total investments segment income, after federal income tax	$	31,244		74,830	$	80,664	210,603
ROE contribution of after-tax net investment income earned	8.9			11.0	8.9		10.1

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Underwriting income (loss)
Standard Commercial Lines	$	22,501	17,413	$	111,593	154,850
Standard Personal Lines	(1,385)		(11,146)	(7,232)		2,193
E&S Lines	6,016		4,672	16,313		7,494
Investment income	38,208		93,209	97,800		261,832
Total all segments	65,340		104,148	218,474		426,369
Interest expense	(7,179)		(7,242)	(21,599)		(21,967)
Corporate expenses	(5,522)		(4,270)	(24,442)		(22,936)
Income, before federal income tax	$	52,639	92,636	$	172,433	381,466
Preferred stock dividends	(2,300)		(2,300)	(6,900)		(7,053)
Income available to common stockholders, before federal income tax	$	50,339	90,336	$	165,533	374,413

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 2021 Annual Report.

The following tables provide information about the Pension Plan:

	Pension Plan
	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Net Periodic Pension Cost (Benefit):
Interest cost	$	2,486	2,148	$	7,458	6,445
Expected return on plan assets	(5,537)		(5,744)	(16,611)		(17,232)
Amortization of unrecognized net actuarial loss	366		626	1,099		1,876
Total net periodic pension cost (benefit)1	$	(2,685)	(2,970)	$	(8,054)	(8,911)

1The 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.

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	Pension Plan
	Nine Months ended September 30,
	2022		2021
Weighted-Average Expense Assumptions:
Discount rate	2.98	%	2.68	%
Effective interest rate for calculation of interest cost	2.48		2.06
Expected return on plan assets	5.00		5.40

NOTE 11. Comprehensive Income

The components of comprehensive income, both gross and net of tax, for Third Quarter and Nine Months 2022 and 2021 are as follows:

Third Quarter 2022
($ in thousands)	Gross		Tax	Net
Net income	$	52,639	10,114	42,525
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(189,622)		(39,819)	(149,803)
Unrealized losses on securities with credit loss recognized in earnings	(68,287)		(14,341)	(53,946)
Amounts reclassified into net income:
HTM securities	1		—	1
Net realized losses on disposals and intent-to-sell AFS securities	14,235		2,989	11,246
Credit loss expense	4,471		939	3,532
Total unrealized losses on investment securities	(239,202)		(50,232)	(188,970)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	417		88	329
Total defined benefit pension and post-retirement plans	417		88	329
Other comprehensive loss	(238,785)		(50,144)	(188,641)
Comprehensive loss	$	(186,146)	(40,030)	(146,116)
Third Quarter 2021
($ in thousands)	Gross		Tax	Net
Net income	$	92,636	18,931	73,705
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(35,285)		(7,410)	(27,875)
Unrealized losses on securities with credit loss recognized in earnings	(2,343)		(492)	(1,851)
Amounts reclassified into net income:
HTM securities	1		—	1
Net realized gains on disposals and intent-to-sell AFS securities	(1,296)		(272)	(1,024)
Credit loss expense	1,334		280	1,054
Total unrealized losses on investment securities	(37,589)		(7,894)	(29,695)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	693		145	548
Total defined benefit pension and post-retirement plans	693		145	548
Other comprehensive loss	(36,896)		(7,749)	(29,147)
Comprehensive income	$	55,740	11,182	44,558

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Nine Months 2022
($ in thousands)	Gross		Tax	Net
Net income	$	172,433	34,058	138,375
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(674,357)		(141,613)	(532,744)
Unrealized losses on securities with credit loss recognized in earnings	(227,599)		(47,796)	(179,803)
Amounts reclassified into net income:
HTM securities	2		—	2
Net realized losses on disposals and intent-to-sell AFS securities	48,396		10,163	38,233
Credit loss expense	42,042		8,828	33,214
Total unrealized losses on investment securities	(811,516)		(170,418)	(641,098)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,251		263	988
Total defined benefit pension and post-retirement plans	1,251		263	988
Other comprehensive loss	(810,265)		(170,155)	(640,110)
Comprehensive loss	$	(637,832)	(136,097)	(501,735)
Nine Months 2021
($ in thousands)	Gross		Tax	Net
Net income	$	381,466	76,608	304,858
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(103,040)		(21,638)	(81,402)
Unrealized losses on securities with credit loss recognized in earnings	(3,678)		(772)	(2,906)
Amounts reclassified into net income:
HTM securities	(4)		(1)	(3)
Net realized gains on disposals and intent-to-sell AFS securities	(634)		(133)	(501)
Credit loss expense	4,059		852	3,207
Total unrealized losses on investment securities	(103,297)		(21,692)	(81,605)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	2,079		436	1,643
Total defined benefit pension and post-retirement plans	2,079		436	1,643
Other comprehensive loss	(101,218)		(21,256)	(79,962)
Comprehensive income	$	280,248	55,352	224,896

The balances of, and changes in, each component of accumulated other comprehensive income ("AOCI") (net of taxes) as of September 30, 2022, were as follows:

September 30, 2022	Net Unrealized (Losses) Gains on Investment Securities					Defined Benefit Pension and Post-Retirement Plans	Total AOCI
($ in thousands)	Credit Loss Related1		HTM Related	All Other	Investments Subtotal
Balance, December 31, 2021	$	(4,287)	(3)	185,170	180,880	(65,781)	115,099
OCI before reclassifications	(179,803)		—	(532,744)	(712,547)	—	(712,547)
Amounts reclassified from AOCI	33,214		2	38,233	71,449	988	72,437
Net current period OCI	(146,589)		2	(494,511)	(641,098)	988	(640,110)
Balance, September 30, 2022	$	(150,876)	(1)	(309,341)	(460,218)	(64,793)	(525,011)

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

22

The reclassifications out of AOCI were as follows:

	Quarter ended September 30,			Nine Months ended September 30,			Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2022		2021	2022		2021
HTM related
Unrealized losses (gains) on HTM disposals	$	1	(1)	$	1	(1)	Net realized and unrealized investment (losses) gains
Amortization of net unrealized losses (gains) on HTM securities	—		2	1		(3)	Net investment income earned
	1		1	2		(4)	Income before federal income tax
	—		—	—		1	Total federal income tax expense
	1		1	2		(3)	Net income
Net realized losses (gains) on disposals and intent-to-sell AFS securities
Net realized losses (gains) on disposals and intent-to-sell AFS securities	14,235		(1,296)	48,396		(634)	Net realized and unrealized investment (losses) gains
	14,235		(1,296)	48,396		(634)	Income before federal income tax
	(2,989)		272	(10,163)		133	Total federal income tax expense
	11,246		(1,024)	38,233		(501)	Net income
Credit loss related
Credit loss expense	4,471		1,334	42,042		4,059	Net realized and unrealized investment (losses) gains
	4,471		1,334	42,042		4,059	Income before federal income tax
	(939)		(280)	(8,828)		(852)	Total federal income tax expense
	3,532		1,054	33,214		3,207	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	90		159	270		478	Loss and loss expense incurred
	327		534	981		1,601	Other insurance expenses
Total defined benefit pension and post-retirement life	417		693	1,251		2,079	Income before federal income tax
	(88)		(145)	(263)		(436)	Total federal income tax expense
	329		548	988		1,643	Net income
Total reclassifications for the period	$	15,108	579	$	72,437	4,346	Net income

NOTE 12. Equity

On December 2, 2020, we announced that our Board of Directors authorized a $100 million share repurchase program, with no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock. 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. In Nine Months 2022, we repurchased 165,159 shares of our common stock under our share repurchase program, of which 79,100 were repurchased in Third Quarter 2022. The total cost of repurchases, including commissions, was $12.4 million in Nine Months 2022. We had $84.2 million of remaining capacity under our share repurchase program as of September 30, 2022.

NOTE 13. Earnings per Common Share

The following table presents the calculations of earnings per common share ("EPS") on a basic and diluted basis:

	Quarter ended September 30,			Nine months ended September 30,
(in thousands, except per share amounts)	2022		2021	2022	2021
Net income available to common stockholders:	$	40,225	71,405	131,475	297,805
Weighted average common shares outstanding:
Weighted average common shares outstanding - basic	60,404		60,231	60,409	60,161
Effect of dilutive securities - stock compensation plans	431		355	420	348
Weighted average common shares outstanding - diluted	60,835		60,586	60,829	60,509
EPS:
Basic	$	0.67	1.19	2.18	4.95
Diluted	0.66		1.18	2.16	4.92

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NOTE 14. Litigation

As of September 30, 2022, 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 by establishing unpaid loss and loss expense reserves. Considering potential losses and defense costs reserves, we expect that any potential ultimate liability for ordinary course claims litigation will not be material to our consolidated financial condition, results of operations, or cash flows.

All our commercial property and businessowners' policies require direct physical loss of or damage to property by a covered cause of loss. All our standard lines commercial property and businessowners' policies also include or attach an exclusion that states 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. To date, insurers (including us) have prevailed in the majority of these suits, with most decisions holding that COVID-19 does not cause physical loss of or damage to property and the Virus Exclusion is valid. Nonetheless, these two matters continue to be litigated in trial courts, are subject to review by state and federal appellate courts, and their ultimate outcome cannot be assured.

From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some asserting claims for substantial amounts. Plaintiffs may punitively style these actions as class actions and seek judicial certification of a state or national class for allegations involving our business practices, such as improper medical provider reimbursement under workers compensation and personal and commercial automobile insurance policies or improper reimbursement for automobile parts. Similarly, our Insurance Subsidiaries can be defendants in individual actions seeking extra-contractual damages, punitive damages, or penalties, often alleging bad faith claims handling. We believe that we have valid defenses to these allegations, and we account for such activity by establishing unpaid loss and loss expense reserves. Considering estimated losses and defense costs reserves, we expect that any potential ultimate liability for these other legal actions will not be material to our consolidated financial condition. As litigation outcomes are inherently unpredictable and the amounts sought in certain actions are large or indeterminate, adverse outcomes could potentially 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. Certain statements in this Quarterly Report on Form 10-Q, including information incorporated by reference, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The PSLRA provides a safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements. These statements relate to our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or industry actual results, activity levels, or performance to materially differ from those expressed or implied by the forward-looking statements. In some cases, forward-looking statements include the words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” “continue,” or comparable terms. Our forward-looking statements are only predictions, and we can give no assurance that such expectations will prove correct. We undertake no obligation, other than as federal securities laws may require, to publicly update or revise any forward-looking statements for any reason.

Factors that could cause our actual results to differ materially from what we project, forecast, or estimate in forward-looking statements are discussed in further detail in Item 1A. “Risk Factors.” in Part II. “Other Information” of this Form 10-Q. These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge anytime. We can neither predict these new risk factors nor assess their impact, if any, on our businesses or the extent any factor or combination of factors may cause actual results to differ materially from any forward-looking statements. Given these risks, uncertainties, and assumptions, the forward-looking events we discuss in this report might not occur.

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Introduction

We classify our business into four reportable segments:

•Standard Commercial Lines;

•Standard Personal Lines;

•Excess and Surplus 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, 2021 ("2021 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. We write our E&S products through another subsidiary, Mesa Underwriters Specialty Insurance Company, 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 2021 Annual Report filed with the United States ("U.S.") Securities and Exchange Commission.

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

•Critical Accounting Policies and Estimates;

•Financial Highlights of Results for the third quarters ended September 30, 2022 (“Third Quarter 2022”) and September 30, 2021 (“Third Quarter 2021”); and the nine-month periods ended September 30, 2022 ("Nine Months 2022") and September 30, 2021 ("Nine Months 2021");

•Results of Operations and Related Information by Segment;

•Federal Income Taxes;

•Liquidity and Capital Resources; and

•Ratings.

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 2021 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; and (iii) reinsurance. These estimates and judgments require the use of assumptions about highly uncertain matters, making them 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. For additional information regarding our critical accounting policies and estimates, refer to pages 35 through 43 of our 2021 Annual Report.

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Financial Highlights of Results for Third Quarter and Nine Months 2022 and Third Quarter and Nine Months 20211

($ and shares in thousands, except per share amounts)	Quarter ended September 30,				Change % or Points		Nine Months ended September 30,				Change % or Points
	2022			2021			2022			2021
Financial Data:
Revenues	$	895,020		865,044	3	%	$	2,605,900		2,509,469	4	%
After-tax net investment income	51,533			74,690	(31)		166,706			198,474	(16)
After-tax underwriting income	21,434			8,642	148		95,333			129,984	(27)
Net income before federal income tax	52,639			92,636	(43)		172,433			381,466	(55)
Net income	42,525			73,705	(42)		138,375			304,858	(55)
Net income available to common stockholders	40,225			71,405	(44)		131,475			297,805	(56)
Key Metrics:
Combined ratio	96.8		%	98.6	(1.8)	pts	95.2		%	92.6	2.6	pts
Invested assets per dollar of common stockholders' equity	$	3.38		2.89	17	%	$	3.38		2.89	17	%
Return on common equity ("ROE")	7.0			10.6	(3.6)	pts	7.0			15.1	(8.1)	pts
Net premiums written ("NPW") to statutory surplus ratio	1.45		x	1.35	0.10		1.45		x	1.35	0.10
Per Common Share Amounts:
Diluted net income per share	$	0.66		1.18	(44)	%	$	2.16		4.92	(56)	%
Book value per share	36.96			45.27	(18)		36.96			45.27	(18)
Dividends declared per share to common stockholders	0.28			0.25	12		0.84			0.75	12
Non-GAAP Information:
Non-GAAP operating income2	$	60,514		71,265	(15)	%	$	217,517		285,676	(24)	%
Non-GAAP operating income per diluted common share2	0.99			1.18	(16)		3.57			4.72	(24)
Non-GAAP operating ROE2	10.5		%	10.6	(0.1)	pts	11.6		%	14.5	(2.9)	pts
Adjusted book value per common share2	$	44.59		41.56	7	%	$	44.59		41.56	7	%

1Refer to the Glossary of Terms attached to our 2021 Annual Report as Exhibit 99.1 for definitions of terms used of this Form 10-Q.

2Non-GAAP operating income, non-GAAP operating income per diluted common share, and non-GAAP operating ROE are measures comparable to net income available to common stockholders, net income available to common stockholders per diluted common share, and ROE, respectively, but exclude after-tax net realized and unrealized gains and losses on investments included in net income. Adjusted book value per common share is a measure comparable to book value per common share, but excludes total after-tax unrealized gains and losses on investments included in accumulated other comprehensive (loss) income. These non-GAAP measures are important financial measures used by us, analysts, and investors because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized investment gains and losses on investments could distort the analysis of trends.

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

Reconciliation of net income available to common stockholders to non-GAAP operating income	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Net income available to common stockholders	$	40,225	71,405	$	131,475	297,805
Net realized and unrealized investment losses (gains) included in net income, before tax	25,681		(177)	108,913		(15,353)
Tax on reconciling items	(5,392)		37	(22,871)		3,224
Non-GAAP operating income	$	60,514	71,265	$	217,517	285,676

Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share	Quarter ended September 30,			Nine Months ended September 30,
	2022		2021	2022		2021
Net income available to common stockholders per diluted common share	$	0.66	1.18	$	2.16	4.92
Net realized and unrealized investment losses (gains) included in net income, before tax	0.42		—	1.79		(0.25)
Tax on reconciling items	(0.09)		—	(0.38)		0.05
Non-GAAP operating income per diluted common share	$	0.99	1.18	$	3.57	4.72

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Reconciliation of ROE to non-GAAP operating ROE	Quarter ended September 30,			Nine Months ended September 30,
	2022		2021	2022		2021
ROE	7.0	%	10.6	7.0	%	15.1
Net realized and unrealized investment losses (gains) included in net income, before tax	4.4		—	5.8		(0.8)
Tax on reconciling items	(0.9)		—	(1.2)		0.2
Non-GAAP operating ROE	10.5	%	10.6	11.6	%	14.5

Reconciliation of book value per common share to adjusted book value per common share	Quarter ended September 30,			Nine Months ended September 30,
	2022		2021	2022		2021
Book value per common share	$	36.96	45.27	$	36.96	45.27
Total unrealized investment losses (gains) included in accumulated other comprehensive (loss) income, before tax	9.67		(4.71)	9.67		(4.71)
Tax on reconciling items	(2.04)		1.00	(2.04)		1.00
Adjusted book value per common share	$	44.59	41.56	$	44.59	41.56

The components of our ROE and non-GAAP operating ROE are as follows:

ROE and non-GAAP operating ROE Components	Quarter ended September 30,			Change Points	Nine Months ended September 30,				Change Points
	2022		2021		2022		2021
Standard Commercial Lines Segment	3.1	%	2.1	1.0	4.7	%	6.2		(1.5)
Standard Personal Lines Segment	(0.2)		(1.3)	1.1	(0.3)		0.1		(0.4)
E&S Lines Segment	0.8		0.5	0.3	0.7		0.3		0.4
Total insurance operations	3.7		1.3	2.4	5.1		6.6		(1.5)
Investment income	8.9		11.0	(2.1)	8.9		10.1	%	(1.2)
Net realized and unrealized investment (losses) gains	(3.5)		—	(3.5)	(4.6)		0.6		(5.2)
Total investments segment	5.4		11.0	(5.6)	4.3		10.7		(6.4)
Other	(2.1)		(1.7)	(0.4)	(2.4)		(2.2)		(0.2)
ROE	7.0		10.6	(3.6)	7.0		15.1		(8.1)
Net realized and unrealized investment losses (gains), after tax	3.5		—	3.5	4.6		(0.6)		5.2
Non-GAAP Operating ROE	10.5		10.6	(0.1)	11.6		14.5		(2.9)

Our Nine Months 2022 non-GAAP operating ROE of 11.6% was above our full-year 2022 targeted non-GAAP operating ROE of 11%, but below our Nine Months 2021 non-GAAP operating ROE of 14.5%.

The decrease in Nine Months 2022 compared to Nine Months 2021 was primarily driven by a reduction in after-tax underwriting and investment income. After-tax underwriting income decreased $34.7 million, or 1.5 ROE points, in Nine Months 2022 compared to Nine Months 2021, primarily from increased non-catastrophe property loss and loss expenses and lower favorable prior year casualty reserve development, offset partially by a decrease in net catastrophe losses. The higher non-catastrophe property loss and loss expenses were mainly due to the higher inflationary environment.

After-tax investment income decreased $31.8 million, or 1.2 ROE points, in Nine Months 2022 compared to Nine Months 2021, from lower after-tax alternative investment income in Nine Months 2022.

In addition, our ROE was reduced by the impact of net realized and unrealized investment gains and losses, which was 5.2 ROE points in Nine Months 2022. Net realized and unrealized investment losses in both current-year periods compared to net realized and unrealized investment gains in the same prior-year periods drove the reduction in our ROE. The increase in net realized and unrealized losses resulted from (i) a decrease in valuations reflecting the current public equities market, (ii) active trading of our fixed income securities to increase the book yield of our fixed income portfolio due to increasing new money rates, resulting in realized losses, and (iii) higher credit loss expense on our AFS fixed income securities portfolio.

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Outlook

We entered 2022 in the strongest financial position in our 95-year history, with a record level of GAAP equity, statutory capital and surplus, and holding company cash and investments. We are well positioned to continue executing on our strategic objectives and delivering growth and profitability. Although not as favorable as Nine Months 2021, our overall Nine Months 2022 financial results were strong, with 11% growth in NPW and a 11.6% non-GAAP operating ROE, which was above our full-year target of 11%.

In 2022, the elevated level of economic inflation, the significant increase in interest rates, and predictions of a recession in the near term, which have led to a widening of credit spreads, have all contributed to lower investment valuations and significant financial market volatility. The higher interest rates and widening of credit spreads, with interest rates having the most significant impact, have reduced the fair value of our fixed income securities, which in turn has negatively impacted our stockholders' equity, which was down 19% during Nine Months 2022. The higher economic inflation has also negatively impacted our property loss and loss expenses through increased severities in our short-tail property lines, which has reduced our underwriting income. Should these trends continue, and in the absence of taking rate and other underwriting actions, our underwriting profitability could be negatively impacted in the near term. We will continue to focus on underwriting improvements and achieving written renewal pure price increases that meet or exceed expected loss trend. In Third Quarter 2022, we achieved Standard Commercial Lines renewal pure price increases of 5.8% and exposure growth of 3.8%, resulting in total renewal premium growth of 9.6%. These rates were up sequentially from the second quarter of 2022, which experienced renewal pure price increases of 5.3% and exposure growth of 3.9%, resulting in total renewal premium growth of 9.2%.

While higher interest rates, wider credit spreads, and financial market volatility have negatively impacted our investment valuations and certain key financial metrics, such as stockholders' equity and book value per common share, they have also provided us with the opportunity to invest our cash flows at significantly higher new money rates. Our pre-tax new money purchase rates for fixed income securities averaged 4.2% in Nine Months 2022, compared to 2.2% for Nine Months 2021. The pre-tax new money purchase rates for fixed income securities increased to 5.1% in Third Quarter 2022, which was above our Third Quarter 2022 average pre-tax fixed income investment yield of 4.2%. The portfolio's net investment income also benefits from our 14% allocation to floating rate fixed income securities, which are primarily tied to 90-day LIBOR, which increased from 0.21% at December 31, 2021, to 3.75% at September 30, 2022. These floating securities have reset quarterly at higher rates, which combined with our higher new money purchase rates for fixed income securities, is contributing to higher net investment income from our fixed income securities. Partially offsetting the increase in net investment income from fixed income securities, are lower returns from our allocation to alternative investments. These assumptions are factored into our full-year after-tax net investment income expectations, as discussed below.

We continue to focus on several other foundational areas to position us for ongoing success:

•Delivering on our strategy for continued disciplined and profitable growth by:

◦Continuing to expand our Standard Commercial Lines market share by (i) increasing our share towards our 12% target of our agents' premiums, (ii) strategically appointing new agents, and (iii) maximizing new business growth in the small business market through utilization of our enhanced small business platform;

◦Expanding our geographic footprint. In June 2022, we began writing Standard Commercial Lines business in Vermont. In October 2022, we began writing Standard Commercial Lines business in Alabama and Idaho. We plan to expand our Standard Commercial Lines footprint into other states over time;

◦Increasing customer retention by delivering a superior omnichannel experience and offering value-added technologies and services;

◦Shifting our Standard Personal Lines products and services towards customers in the mass affluent market, where we believe we can be more competitive with the strong coverage and servicing capabilities that we offer; and

◦Deploying our new underwriting platform in our E&S segment and improving agents' ease of interactions with us.

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

Our full-year expectations are as follows:

•A GAAP combined ratio, excluding net catastrophe losses, of 91.5% (prior guidance was 90.5%). Our combined ratio estimate assumes no additional prior year casualty reserve development;

•Net catastrophe losses of 3.5 points (prior guidance 4.0 points) on the combined ratio;

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•After-tax net investment income of $215 million (prior guidance was $215 million) that includes after-tax net investment income from our alternative investments of $7 million (prior guidance was $15 million);

•An overall effective tax rate of approximately 20.5%, which assumes an effective tax rate of 19.5% for net investment income and 21.0% for all other items; and

•Weighted average shares of 61 million on a fully diluted basis, which assumes no additional share repurchases we may make under our authorization.

As we look ahead to 2023, we believe the elevated level of economic inflation will persist and continue to negatively impact our short-tail property lines of business and may impact our general and administrative expenses. In addition, we expect reduced reinsurance capacity and higher demand for new and expanded reinsurance purchases by U.S. primary companies will likely result in higher reinsurance prices in 2023 and less favorable terms and conditions for the industry. These factors could negatively impact our 2023 combined ratio and underwriting profits, although we are well-positioned to navigate these challenges and expect to continue generating strong overall returns.

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 September 30,				Change % or Points		Nine Months ended September 30,				Change % or Points
($ in thousands)	2022			2021			2022			2021
Insurance Operations Results:
Net premiums written ("NPW")	$	903,394		812,906	11	%	$	2,723,933		2,444,289	11	%
Net premiums earned (“NPE”)	853,879			767,247	11		2,500,601			2,232,725	12
Less:
Loss and loss expense incurred	547,826			505,269	8		1,566,930			1,340,293	17
Net underwriting expenses incurred	277,988			250,033	11		809,455			724,484	12
Dividends to policyholders	933			1,006	(7)		3,542			3,411	4
Underwriting income	$	27,132		10,939	148	%	$	120,674		164,537	(27)	%
Combined Ratios:
Loss and loss expense ratio	64.1		%	65.9	(1.8)	pts	62.7		%	60.0	2.7	pts
Underwriting expense ratio	32.6			32.6	—		32.4			32.4	—
Dividends to policyholders ratio	0.1			0.1	—		0.1			0.2	(0.1)
Combined ratio	96.8			98.6	(1.8)		95.2			92.6	2.6

The NPW growth of 11% in Third Quarter and Nine Months 2022 compared to the same prior-year periods reflected (i) overall renewal pure price increases, and (ii) higher direct new business, as shown in the following table:

	Quarter ended September 30,				Nine Months ended September 30,
($ in millions)	2022			2021	2022			2021
Direct new business premiums	$	184.3		168.3	$	543.5		497.3
Renewal pure price increases on NPW	5.3		%	4.9	5.0		%	5.1

Our NPW growth in Third Quarter and Nine Months 2022 benefited from strong retention. In addition, increased economic activity and inflation in the U.S. resulted in our customers increasing their sales, payrolls, and exposure units, all of which favorably impacted our NPW.

The increase in NPE in Third Quarter and Nine Months 2022 compared to the same prior-year periods resulted from the same impacts to NPW described above.

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Loss and Loss Expenses

The loss and loss expense ratio decreased 1.8 points in Third Quarter 2022 and increased 2.7 points in Nine Months 2022 compared to the same prior-year periods, primarily due to the following:

	Third Quarter 2022				Third Quarter 2021
($ 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
Net catastrophe losses	$	34.1	4.0	pts	$	76.3	10.0	pts	(6.0)	pts
(Favorable) prior year casualty reserve development	(16.0)		(1.9)		(14.0)		(1.8)		(0.1)
Non-catastrophe property loss and loss expenses	167.5		19.6		123.7		16.1		3.5
Total	$	185.6	21.7		$	186.0	24.3		(2.6)
	Nine Months 2022				Nine Months 2021
($ 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
Net catastrophe losses	$	100.2	4.0	pts	$	128.9	5.8	pts	(1.8)	pts
(Favorable) prior year casualty reserve development	(48.0)		(1.9)		(66.0)		(3.0)		1.1
Non-catastrophe property loss and loss expenses	456.4		18.3		346.6		15.5		2.8
Total	$	508.6	20.4		$	409.5	18.3		2.1

Net catastrophe losses in Third Quarter and Nine Months 2022 included $10.0 million, or 1.2 points in Third Quarter 2022, and 0.4 points in Nine Months 2022, of net losses from Hurricane Ian, which affected the Southeastern states of our footprint. These losses were partially offset by $1.9 million, or 0.2 points in Third Quarter 2022 and 0.1 points in Nine Months 2022, of flood claims handling fees.

We had less losses from Hurricane Ian in Third Quarter and Nine Months 2022 than Hurricane Ida in Third Quarter and Nine Months 2021. Net catastrophe losses from Hurricane Ida contributed 5.6 percentage points in Third Quarter 2021 and 1.9 percentage points in Nine Months 2021. Losses from Hurricane Ida were primarily attributable to property losses, including personal and commercial automobiles, in New Jersey and the surrounding states. Accordingly, we experienced lower net catastrophe losses in Third Quarter and Nine Months 2022 compared to the same prior-year periods.

Also negatively impacting our loss and loss expense ratio was the recognition of $9.3 million of ceded earned casualty reinstatement premium on the second layer of our Casualty Excess of Loss Treaty (“Casualty Treaty”), which increased the ratio by 0.8 points in Third Quarter 2022 and 0.3 points in Nine Months 2022, compared to the same prior-year periods. The recognition of this reinstatement premium was principally due to development on one large loss from the 2018 treaty year and two large losses from the 2020 treaty year. Despite the development on this casualty treaty layer, our prior year loss development, on a net basis, remains favorable as reflected in the table below:

(Favorable)/Unfavorable Prior Year Casualty Reserve Development	Quarter ended September 30,				Nine Months ended September 30,
($ in millions)	2022			2021	2022		2021
General liability	$	—		(4.0)	$	(5.0)	(29.0)
Commercial automobile	15.0			—	15.0		—
Workers compensation	(20.0)			(8.0)	(40.0)		(28.0)
Businessowners' policies	(8.0)			(2.0)	(8.0)		(2.0)
Bonds	(3.0)			—	(10.0)		—
Total Standard Commercial Lines	(16.0)			(14.0)	(48.0)		(59.0)
Homeowners	—			—	—		—
Personal automobile	—			—	—		—
Total Standard Personal Lines	—			—	—		—
E&S	—			—	—		(7.0)
Total (favorable) prior year casualty reserve development	$	(16.0)		(14.0)	$	(48.0)	(66.0)
(Favorable) impact on loss ratio	(1.9)		pts	(1.8)	(1.9)		(3.0)

For additional qualitative discussion on reserve development and non-catastrophe property loss and loss expenses, refer to the insurance segment sections below in "Results of Operations and Related Information by Segment."

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Standard Commercial Lines Segment

	Quarter ended September 30,				Change % or Points		Nine Months ended September 30,				Change % or Points
($ in thousands)	2022			2021			2022			2021
Insurance Segments Results:
NPW	$	727,463		652,603	11	%	$	2,225,395		1,995,297	12	%
NPE	692,437			619,571	12		2,034,143			1,808,466	12
Less:
Loss and loss expense incurred	438,264			393,503	11		1,244,639			1,048,170	19
Net underwriting expenses incurred	230,739			207,649	11		674,369			602,035	12
Dividends to policyholders	933			1,006	(7)		3,542			3,411	4
Underwriting income	22,501			17,413	29		$	111,593		154,850	(28)
Combined Ratios:
Loss and loss expense ratio	63.4		%	63.5	(0.1)	pts	61.1		%	57.9	3.2	pts
Underwriting expense ratio	33.3			33.5	(0.2)		33.2			33.3	(0.1)
Dividends to policyholders ratio	0.1			0.2	(0.1)		0.2			0.2	—
Combined ratio	96.8			97.2	(0.4)		94.5			91.4	3.1

NPW growth of 11% in Third Quarter 2022 and 12% in Nine Months 2022 compared to the same prior-year periods reflected (i) renewal pure price increases, (ii) higher direct new business, and (iii) strong retention as shown in the table below. In addition, NPW growth in both current-year periods benefited from exposure growth.

	Quarter ended September 30,				Nine Months ended September 30,
($ in millions)	2022			2021	2022			2021
Direct new business premiums	$	128.2		122.3	$	385.6		365.6
Retention	86		%	86	85		%	85
Renewal pure price increases on NPW	5.8			5.3	5.3			5.5

The increase in NPE in Third Quarter and Nine Months 2022 compared to the same prior-year periods resulted from the same impacts to NPW described above.

The loss and loss expense ratio decreased 0.1 points in Third Quarter 2022 and increased 3.2 points in Nine Months 2022 compared to the same prior-year periods, primarily driven by the following:

	Third Quarter 2022				Third Quarter 2021
($ 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
Net catastrophe losses	$	18.2	2.6	pts	$	50.0	8.1	(5.5)	pts
Non-catastrophe property loss and loss expenses	129.8		18.7		90.1		14.5	4.2
(Favorable) prior year casualty reserve development	(16.0)		(2.3)		(14.0)		(2.3)	—
Total	132.0		19.0		126.1		20.3	(1.3)
	Nine Months 2022				Nine Months 2021
($ 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
Net catastrophe losses	$	55.4	2.7	pts	$	77.3	4.3	(1.6)	pts
Non-catastrophe property loss and loss expenses	344.7		16.9		248.4		13.7	3.2
(Favorable) prior year casualty reserve development	(48.0)		(2.4)		(59.0)		(3.3)	0.9
Total	352.1		17.2		266.7		14.7	2.5

Compared to the same prior-year periods, Third Quarter and Nine Months 2022 included (i) lower net catastrophe losses, and (ii) an increase to the loss and loss expense ratio of 0.9 points in Third Quarter 2022 and 0.3 points in Nine Months 2022 due to higher ceded earned casualty reinstatement premium. See the "Insurance Operations" section above for more information.

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

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

General Liability
	Quarter ended September 30,				Change  % or Points1		Nine Months ended September 30,				Change  % or Points1
($ in thousands)	2022			2021			2022			2021
NPW	$	234,975		216,897	8	%	$	736,561		664,462	11	%
Direct new business	38,537			38,376	n/a		112,700			109,803	n/a
Retention	86		%	86	n/a		85		%	85	n/a
Renewal pure price increases	4.9			4.4	n/a		4.4			4.5	n/a
NPE	$	225,302		205,904	9	%	$	667,912		596,717	12	%
Underwriting income	21,943			29,993	(27)		75,765			97,611	(22)
Combined ratio	90.3		%	85.4	4.9	pts	88.7		%	83.6	5.1	pts
% of total Standard Commercial Lines NPW	32			33			33			33

1n/a: not applicable.

NPW growth of 8% in Third Quarter 2022 and 11% in Nine Months 2022 compared to the same prior-year periods benefited from exposure growth, strong retention, renewal pure price increases, and direct new business.

The combined ratio increased 4.9 points in Third Quarter 2022 and 5.1 points in Nine Months 2022 compared to the same prior-year periods, partly driven by less favorable prior year casualty reserve development, as follows:

	Third Quarter 2022				Third Quarter 2021
($ 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	$	—	—	pts	$	(4.0)	(1.9)	1.9	pts
	Nine Months 2022				Nine Months 2021
($ 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	$	(5.0)	(0.7)	pts	$	(29.0)	(4.9)	4.2	pts

The favorable prior year casualty reserve development in Nine Months 2022 was primarily attributable to improved loss severities in accident years 2019 and prior. The Third Quarter and Nine Months 2021 favorable prior year casualty reserve development was primarily attributable to improved loss severities in accident years 2018 and prior.

The combined ratio increase in Third Quarter and Nine Months 2022 also included the following loss and loss expense ratio impacts:

•An increase in ceded earned casualty reinstatement premium, adding 1.9 points in Third Quarter 2022 and 0.7 points in Nine Months 2022 compared to the same prior-year periods, as discussed in the "Insurance Operations" section above; and

•An increase in current year casualty loss costs of 0.7 points in Third Quarter 2022 and 0.5 points in Nine Months 2022 compared to the same prior-year periods, in anticipation of higher loss trend for this line.

Commercial Automobile
	Quarter ended September 30,				Change  % or Points1		Nine Months ended September 30,				Change  % or Points1
($ in thousands)	2022			2021			2022			2021
NPW	$	223,809		197,459	13	%	$	659,251		594,011	11	%
Direct new business	31,503			28,968	n/a		92,795			91,120	n/a
Retention	87		%	87	n/a		86		%	86	n/a
Renewal pure price increases	8.7			7.9	n/a		8.0			8.6	n/a
NPE	$	207,129		185,610	12	%	$	599,340		535,519	12	%
Underwriting (loss) income	(30,612)			(12,547)	144		(45,790)			(5,514)	730
Combined ratio	114.8		%	106.8	8.0	pts	107.6		%	101.0	6.6	pts
% of total Standard Commercial Lines NPW	31			30			30			30

1n/a: not applicable.

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NPW growth of 13% in Third Quarter 2022 and 11% in Nine Months 2022 compared to the same prior-year periods benefited from renewal pure price increases, higher direct new business, and strong retention. NPW also benefited from 4% growth of in-force vehicle counts as of September 30, 2022, compared to September 30, 2021.

The combined ratio increased 8.0 points in Third Quarter 2022 and 6.6 points in Nine Months 2022 compared to the same prior-year periods, primarily driven by the following:

	Third Quarter 2022				Third Quarter 2021
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio	Change in Ratio
Net catastrophe losses	$	1.4	0.7	pts	$	8.3	4.4	(3.7)	pts
Non-catastrophe property loss and loss expenses	46.2		22.3		35.2		18.9	3.4
Unfavorable prior year casualty reserve development	15.0		7.2		—		—	7.2
Total	$	62.6	30.2		$	43.5	23.3	6.9
	Nine Months 2022				Nine Months 2021
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio	Change in Ratio
Net catastrophe losses	$	2.3	0.4	pts	$	8.9	1.7	(1.3)	pts
Non-catastrophe property loss and loss expenses	124.0		20.7		90.8		16.9	3.8
Unfavorable prior year casualty reserve development	15.0		2.5		—		—	2.5
Total	$	141.3	23.6		$	99.7	18.6	5.0

Compared to the same prior-year periods, Third Quarter and Nine Months 2022 experienced (i) lower net catastrophe losses, as discussed in the "Insurance Operations" section above, and (ii) elevated non-catastrophe property loss and loss expenses, primarily due to higher severities from inflationary and supply chain impacts that have increased labor and material costs, as well as the duration of claims, which impacts vehicle rental days.

The unfavorable prior year casualty reserve development in Third Quarter and Nine Months 2022 was primarily due to increased severities in the 2021 accident year. There was no prior year casualty reserve development in Third Quarter and Nine Months 2021.

In addition, the combined ratio was impacted by a 0.9-point increase in current year casualty loss costs in Third Quarter 2022 and a 1.5-point increase in Nine Months 2022, compared to the same prior-year periods. The increase in current year casualty loss costs in both periods was primarily due to an expected increase in claim frequencies from a more normalized amount of miles driven as COVID-19-related impacts continue to lessen.

Commercial Property
	Quarter ended September 30,				Change  % or Points1		Nine Months ended September 30,				Change  % or Points1
($ in thousands)	2022			2021			2022			2021
NPW	$	143,117		124,725	15	%	$	414,170		357,248	16	%
Direct new business	30,691			28,024	n/a		89,826			82,237	n/a
Retention	85		%	85	n/a		84		%	84	n/a
Renewal pure price increases	6.2			6.4	n/a		6.1			6.0	n/a
NPE	$	128,268		111,981	15	%	$	371,892		320,904	16	%
Underwriting income	(2,385)			(12,137)	80		608			11,449	(95)
Combined ratio	101.9		%	110.8	(8.9)	pts	99.8		%	96.4	3.4	pts
% of total Standard Commercial Lines NPW	20			19			19			18

1n/a: not applicable.

NPW growth of 15% in Third Quarter 2022 and 16% in Nine Months 2022 compared to the same prior-year periods benefited from renewal pure price increases, exposure growth, strong retention, and higher direct new business.

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The combined ratio decreased 8.9 points in Third Quarter 2022 and increased 3.4 points in Nine Months 2022 compared to the same prior-year periods, primarily driven by the following:

	Third Quarter 2022				Third Quarter 2021
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred	Impact on Combined Ratio	Change in Ratio
Net catastrophe losses	$	13.3	10.4	pts	32.8	29.3	(18.9)	pts
Non-catastrophe property loss and loss expenses	69.4		54.1		48.8	43.6	10.5
Total	$	82.7	64.5		81.6	72.9	(8.4)
	Nine Months 2022				Nine Months 2021
($ in millions)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred	Impact on Combined Ratio	Change in Ratio
Net catastrophe losses	$	45.4	12.2	pts	55.7	17.3	(5.1)	pts
Non-catastrophe property loss and loss expenses	188.0		50.6		133.7	41.7	8.9
Total	$	233.4	62.8		189.4	59.0	3.8

Compared to the same prior-year periods, Third Quarter and Nine Months 2022 experienced (i) lower net catastrophe losses, as discussed in the "Insurance Operations" section above, and (ii) elevated non-catastrophe property loss and loss expenses. The elevated non-catastrophe property loss and loss expenses was primarily due to increased severity compared to the same prior-year periods reflecting period-to-period volatility generally associated with our commercial property line of business and inflationary pressures on building material and labor costs.

Workers Compensation
	Quarter ended September 30,				Change  % or Points1		Nine Months ended September 30,				Change  % or Points1
($ in thousands)	2022			2021			2022			2021
NPW	$	74,698		76,317	(2)	%	$	260,557		249,099	5	%
Direct new business	13,597			15,408	n/a		47,552			47,355	n/a
Retention	85		%	86	n/a		86		%	86	n/a
Renewal pure price increases	(0.1)			—	n/a		(0.4)			—	n/a
NPE	$	81,996		78,318	5	%	$	250,178		230,845	8	%
Underwriting income	23,220			15,527	50		54,756			44,631	23
Combined ratio	71.7		%	80.2	(8.5)	pts	78.1		%	80.7	(2.6)	pts
% of total Standard Commercial Lines NPW	10			12			12			12

1n/a: not applicable.

NPW did not significantly change in Third Quarter 2022 compared to Third Quarter 2021, but NPW increased 5% in Nine Months 2022 compared to Nine Months 2021 due to exposure growth and strong retention.

The combined ratio decreased 8.5 points in Third Quarter 2022 and 2.6 points in Nine Months 2022 compared to the same prior-year periods, primarily driven by favorable prior year casualty reserve development, as follows:

	Third Quarter 2022				Third Quarter 2021
($ 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	$	(20.0)	(24.4)	pts	$	(8.0)	(10.2)	(14.2)	pts
	Nine Months 2022				Nine Months 2021
($ 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	$	(40.0)	(16.0)	pts	$	(28.0)	(12.1)	(3.9)	pts

The favorable prior year casualty reserve development in Third Quarter and Nine Months 2022 was primarily due to improved loss severities in accident years 2019 and prior. The favorable prior year casualty reserve development in Third Quarter and Nine Months 2021 was primarily due to improved loss severities in accident years 2018 and prior.

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Partially offsetting the increase in favorable prior year casualty reserve development this year, was an increase in ceded earned casualty reinstatement premium that impacted the loss and loss expense ratio by 4.2 points in Third Quarter 2022 and 1.4 points in Nine Months 2022, compared to the same prior-year periods, as discussed in the "Insurance Operations" section above.

Standard Personal Lines Segment

	Quarter ended September 30,				Change % or Points		Nine Months ended September 30,				Change % or Points
($ in thousands)	2022			2021			2022			2021
Insurance Segments Results:
NPW	$	86,844		78,247	11	%	$	234,465		221,883	6	%
NPE	75,638			73,362	3		221,618			220,476	1
Less:
Loss and loss expense incurred	57,263			65,123	(12)		172,396			160,273	8
Net underwriting expenses incurred	19,760			19,385	2		56,454			58,010	(3)
Underwriting income (loss)	(1,385)			(11,146)	88		$	(7,232)		2,193	(430)	%
Combined Ratios:
Loss and loss expense ratio	75.7		%	88.8	(13.1)	pts	77.8		%	72.7	5.1	pts
Underwriting expense ratio	26.1			26.4	(0.3)		25.5			26.3	(0.8)
Combined ratio	101.8			115.2	(13.4)		103.3			99.0	4.3

NPW increased 11% in Third Quarter 2022 and 6% in Nine Months 2022 compared to the same prior-year periods, due to (i) higher direct new business, (ii) stronger retention, (iii) higher homeowner coverage amounts due to inflation adjustments, and (iv) higher average policy sizes from our mass affluent market strategy. In the third quarter of 2021, we transitioned our personal lines strategy to targeting customers in the mass affluent market where we believe our strong coverage and servicing capabilities will be more competitive.

	Quarter ended September 30,				Nine Months ended September 30,
($ in millions)	2022			2021	2022			2021
Direct new business premiums1	$	17.4		10.2	$	40.5		31.0
Retention	85		%	84	85		%	83
Renewal pure price increases on NPW	0.5			1.2	0.6			1.0

1Excludes our Flood direct premiums written, which is 100% ceded to the NFIP and therefore, has no impact on our NPW.

The increase in NPE in Third Quarter and Nine Months 2022 compared to the same prior-year periods resulted from the same impacts to NPW described above.

The loss and loss expense ratio decreased 13.1 points in Third Quarter 2022 and increased 5.1 points in Nine Months 2022 compared to the same prior-year periods, driven by the following:

	Third Quarter 2022				Third Quarter 2021
($ 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
Net catastrophe losses	$	11.3	14.9	pts	19.5	26.7	(11.8)	pts
Non-catastrophe property loss and loss expenses	29.0		38.4		28.7	39.1	(0.7)
Flood claims handling fee reimbursement	(2.7)		(3.6)		(2.9)	(4.0)	0.4
Total	$	37.6	49.7		45.3	61.8	(12.1)
	Nine Months 2022				Nine Months 2021
($ 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
Net catastrophe losses	$	36.7	16.5	pts	30.1	13.7	2.8	pts
Non-catastrophe property loss and loss expenses	81.5		36.8		76.7	34.8	2.0
Flood claims handling fee reimbursement	(4.0)		(1.8)		(4.5)	(2.0)	0.2
Total	$	114.2	51.5		102.3	46.5	5.0

Third Quarter 2022 experienced lower net catastrophe losses compared to the same prior-year period, as discussed in the "Insurance Operations" section above. Our Third Quarter 2022 net catastrophe losses were impacted by Hurricane Ian, which primarily affected the Southeastern states in our footprint in late September 2022. Partially offsetting these losses was $1.9 million of flood claims handling fees. Nine Months 2022 experienced elevated net catastrophe losses compared to the same

35

prior-year period as a result of several Midwest wind and thunderstorm events that occurred throughout the second quarter of 2022.

Nine Months 2022 experienced elevated non-catastrophe property loss and loss expenses, driven by higher personal automobile physical damage losses. These higher losses resulted from (i) higher frequencies from increased miles driven, and (ii) greater severities from inflationary and supply chain impacts that have increased labor and material costs, and the duration of claims, which impacts vehicle rental days. The likely continuation of elevated non-catastrophe property loss and loss expenses, coupled with renewal pure price increases below loss trend, will put pressure on this segment's profitability in the near-term. We are filing rate increases to mitigate these inflationary impacts.

E&S Lines Segment

	Quarter ended September 30,				Change % or Points		Nine Months ended September 30,				Change % or Points
($ in thousands)	2022			2021			2022			2021
Insurance Segments Results:
NPW	$	89,087		82,056	9	%	$	264,073		227,109	16	%
NPE	85,804			74,314	15		244,840			203,783	20
Less:
Loss and loss expense incurred	52,299			46,643	12		149,895			131,850	14
Net underwriting expenses incurred	27,489			22,999	20		78,632			64,439	22
Underwriting income (loss)	6,016			4,672	29		$	16,313		7,494	118
Combined Ratios:
Loss and loss expense ratio	61.0		%	62.8	(1.8)	pts	61.2		%	64.7	(3.5)	pts
Underwriting expense ratio	32.0			30.9	1.1		32.1			31.6	0.5
Combined ratio	93.0			93.7	(0.7)		93.3			96.3	(3.0)

NPW growth of 9% in Third Quarter 2022 and 16% in Nine Months 2022 compared to the same prior-year periods reflected renewal pure price increases and higher direct new business as shown in the table below. In addition, NPW growth in Third Quarter and Nine Months 2022 benefited from exposure growth driven by favorable E&S Lines marketplace conditions.

	Quarter ended September 30,				Nine Months ended September 30,
($ in millions)	2022			2021	2022			2021
Direct new business premiums	$	38.6		35.7	$	117.3		100.7
Renewal pure price increases on NPW	6.7		%	5.6	7.1		%	6.5

The increase in NPE in Third Quarter and Nine Months 2022 compared to the same prior-year periods resulted from the same impacts to NPW described above.

The loss and loss expense ratio decreased 1.8 points in Third Quarter 2022 and 3.5 points in Nine Months 2022 compared to the same prior-year periods, primarily driven by the following:

	Third Quarter 2022				Third Quarter 2021
($ 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
Net catastrophe losses	$	4.6	5.4	pts	$	6.8	9.2		(3.8)	pts
Non-catastrophe property loss and loss expenses	8.7		10.1		4.8		6.5		3.6
Total	$	13.3	15.5		$	11.6	15.7		(0.2)
	Nine Months 2022				Nine Months 2021
($ 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
Net catastrophe losses	$	8.1	3.3	pts	$	21.5	10.5	pts	(7.2)	pts
Non-catastrophe property loss and loss expenses	30.2		12.4		21.5		10.5		1.9
(Favorable) prior year casualty reserve development	—		—		(7.0)		(3.4)		3.4
Total	$	38.3	15.7		$	36.0	17.6		(1.9)

Third Quarter and Nine Months 2022 experienced lower net catastrophe losses compared to the same prior-year periods, primarily due to (i) Hurricane Ida in 2021, and (ii) a series of large storms that significantly impacted Texas and other Southern and Midwestern states in Nine Months 2021. These catastrophe events resulted in greater net catastrophe losses in Third

36

Quarter and Nine Months 2021 compared to events in Third Quarter and Nine Months 2022.

Third Quarter and Nine Months 2022 experienced elevated non-catastrophe property loss and loss expenses compared to the same prior-year periods, primarily due to increased severity that reflects the normal period-to-period volatility of our property lines of business in this segment and inflationary pressures on labor and material costs.

There was no prior year casualty reserve development in Third Quarter and Nine Months 2022. The favorable prior year casualty reserve development in Nine Months 2021 was primarily due to lower loss severities in accident years 2016 through 2018.

In addition, the loss and loss expense ratio was favorably impacted by a 1.6-point decrease in current year casualty loss costs in both Third Quarter 2022 and Nine Months 2022 compared to the same prior year periods. Our E&S casualty lines results have improved over recent years after several underwriting and claims initiatives and strong rate increases. The decrease in current year casualty loss costs reflects the impacts of these actions.

The underwriting expense ratio increased 1.1 points in Third Quarter 2022 compared to Third Quarter 2021, primarily due to an increase of (i) 0.7 points in labor expenses, and (ii) 0.4 points in commissions. In addition, the underwriting expense ratio increased 0.5 points in Nine Months 2022 compared to Nine Months 2021, primarily due to increased travel expenses.

Reinsurance

We successfully completed negotiations of our July 1, 2022 excess of loss treaties, which cover our Standard Commercial Lines, Standard Personal Lines, and E&S Lines.

We renewed the Casualty Treaty with substantially the same structure as the expiring treaty. The treaty year 2022 deposit premium increased by $16.2 million, or 23%, reflecting higher projected subject earned premium due to growth in our book of business and pure renewal rate increases, coupled with a modest risk-adjusted reinsurance rate increase.

The Property Excess of Loss Treaty (“Property Treaty”) was renewed with a $10 million limit increase in the highest layer. The treaty year 2022 deposit premium increased by $11.3 million, or 28%, from 2021, reflecting (i) an increase in projected subject premium driven by growth in total insured values, insured locations, and rate increases on our underlying policies, (ii) the purchase of additional coverage, and (iii) risk-adjusted insurance rate increases. We anticipate the increase in expected ceded premium will be partially offset by the premium reduction benefit of reduced facultative reinsurance placements resulting from the higher treaty limit.

The following table summarizes the Property Treaty and Casualty Treaty arrangements covering our Insurance Subsidiaries:

Treaty Name	Reinsurance Coverage	Terrorism Coverage
Property Excess of Loss (covers all insurance operations)	$67 million above $3 million retention covering 100% in three layers. Losses other than Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA") certified losses are subject to the following reinstatements and annual aggregate limits: - $7 million in excess of $3 million layer provides unlimited         reinstatements; - $20 million in excess of $10 million layer provides three         reinstatements, $80 million in aggregate limits; and - $40 million in excess of $30 million layer provides two         reinstatements, $120 million in aggregate limits.	All nuclear, biological, chemical, and radioactive ("NBCR") losses are excluded regardless of whether or not they are certified under the TRIPRA. For non-NBCR losses, the treaty distinguishes between acts committed on behalf of foreign persons or foreign interests ("Foreign Terrorism") and those that are not. The treaty provides annual aggregate limits for Foreign Terrorism (other than NBCR) acts of $21 million for the first layer, $60 million for the second layer, and $40 million for the third layer. Non-foreign terrorism losses (other than NBCR) are covered to the same extent as non-terrorism losses.
Casualty Excess of Loss (covers all insurance operations)	There are six layers covering 100% of $88 million in excess of $2 million. Losses other than terrorism losses are subject to the following: - $3 million in excess of $2 million layer provides 41       reinstatements, $126 million annual aggregate limit; - $7 million in excess of $5 million layer provides six       reinstatements, $49 million annual aggregate limit; - $9 million in excess of $12 million layer provides three       reinstatements, $36 million annual aggregate limit; - $9 million in excess of $21 million layer provides one       reinstatement, $18 million annual aggregate limit; - $20 million in excess of $30 million layer provides one       reinstatement, $40 million annual aggregate limit; and - $40 million in excess of $50 million layer provides one       reinstatement, $80 million annual aggregate limit.	All NBCR losses are excluded. All other losses stemming from the acts of terrorism are subject to the following: - $3 million in excess of $2 million layer with $15 million net        annual terrorism aggregate limit; - $7 million in excess of $5 million layer with $28 million net       annual terrorism aggregate limit; - $9 million in excess of $12 million layer with $27 million net       annual terrorism aggregate limit; - $9 million in excess of $21 million layer with $18 million net       annual terrorism aggregate limit; - $20 million in excess of $30 million layer with $40 million       net annual terrorism aggregate limit; and  - $40 million in excess of $50 million layer with $80 million       net annual terrorism aggregate limit.

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Investments

The primary objectives of the investment portfolio are to maximize after-tax net investment income and generate long-term growth in book value by maximizing the overall total return of the portfolio. Each objective is balanced against prevailing market conditions, capital preservation considerations, and our enterprise risk-taking appetite. We maintain (i) a well-diversified portfolio across issuers, sectors, and asset classes, and (ii) a high credit quality core fixed income securities portfolio with a duration and maturity profile at an acceptable risk level that provides ample liquidity. The effective duration of the fixed income securities portfolio, including short-term investments, was 4.2 years as of September 30, 2022, compared to the Insurance Subsidiaries' net loss and loss expense reserves duration of 3.5 years at December 31, 2021.

Our fixed income and short-term investments represented 92% of our invested assets at September 30, 2022, and 91% at December 31, 2021. Our fixed income and short-term investments portfolio had a weighted average credit rating of "AA-" as of September 30, 2022 and "A+" as of December 31, 2021, with investment grade holdings representing 96% of the total portfolio at both periods. The improvement in our weighted average credit rating reflects active management of our investment portfolio in Nine Months 2022 to optimize our risk-adjusted investment yields in the rising interest rate environment, resulting in higher credit quality fixed income security purchases.

For further details on the composition, credit quality, and various risks to which our portfolio is subject, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk.” of our 2021 Annual Report.

Total Invested Assets
($ in thousands)	September 30, 2022		December 31, 2021	Change
Total invested assets	$	7,536,111	8,026,988	(6)	%
Invested assets per dollar of common stockholders' equity	3.38		2.88	17
Unrealized (loss) gain – before tax1	(587,650)		255,658	(330)
Unrealized (loss) gain – after tax1	(464,244)		201,970	(330)

1Includes unrealized losses on fixed income securities of $583 million and unrealized losses on equity securities of $5 million at September 30, 2022, and unrealized gains on fixed income securities of $229 million and unrealized gains of $27 million at December 31, 2021.

Invested assets decreased $490.9 million at September 30, 2022, compared to December 31, 2021, reflecting an $843.3 million increase in pre-tax unrealized losses during Nine Months 2022. The increase in pre-tax unrealized losses was primarily due to an increase in benchmark U.S. Treasury rates and the widening of credit spreads, with the increase in interest rates having the most significant impact. This decrease in invested assets was partially offset by operating cash flows during Nine Months 2022 that were 18% of NPW.

Net Investment Income

The components of net investment income earned were as follows:

	Quarter ended September 30,				Change % or Points		Nine Months ended September 30,				Change % or Points
($ in thousands)	2022			2021			2022			2021
Fixed income securities	$	68,236		51,683	32	%	$	184,305		157,114	17	%
Commercial mortgage loans ("CMLs")	1,600			683	134		3,762			1,892	99
Equity securities	2,604			2,955	(12)		7,661			8,425	(9)
Short-term investments	1,152			64	1,700		1,660			204	714
Other investments	(5,469)			42,865	(113)		22,896			93,158	(75)
Investment expenses	(4,234)			(5,218)	(19)		(13,571)			(14,314)	(5)
Net investment income earned – before tax	63,889			93,032	(31)		206,713			246,479	(16)
Net investment income tax expense	(12,356)			(18,342)	(33)		(40,007)			(48,005)	(17)
Net investment income earned – after tax	$	51,533		74,690	(31)		$	166,706		198,474	(16)
Effective tax rate	19.3		%	19.7	(0.4)	pts	19.4		%	19.5	(0.1)	pts
Annualized after-tax yield on fixed income investments	3.4			2.5	0.9		3.0			2.6	0.4
Annualized after-tax yield on investment portfolio	2.7			3.8	(1.1)		2.9			3.4	(0.5)

Net investment income earned decreased 31% in Third Quarter 2022 and 16% in Nine Months 2022 compared to the same prior-year periods. The decrease in both periods was driven by lower returns on the alternative investments in our other investments portfolio, reflecting lower public market returns.

Partially offsetting the decrease in net investment income earned in both periods, was an increase in income earned on fixed income securities. During Nine Months 2022, we managed our fixed income securities portfolio to opportunistically increase yield in the rising interest rate environment. The average pre-tax new purchase yield on fixed income securities in Third

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Quarter 2022 was 5.1%, up sequentially from 4.5% in the second quarter of 2022 and 3.3% in the first quarter of 2022. In addition, as of September 30, 2022, 14% of our fixed income securities portfolio was invested in floating rate securities that reset principally to 90-day U.S. dollar-denominated London Interbank Offered Rate ("LIBOR"). LIBOR increased 324 basis points in Nine Months 2022, from 0.21% at December 31, 2021 to 3.75% at September 30, 2022.

Over the remainder of 2022, we expect higher reinvestment yields within our fixed income securities portfolio, which will result in higher net investment income from our fixed income securities. However, we expect this higher income will be largely offset by the impact of Third Quarter 2022 capital market volatility that will likely result in lower valuations on our alternative investments in the fourth quarter of 2022, as our alternative investment results are reported to us on a one-quarter lag.

Realized and Unrealized Gains and Losses

When evaluating securities for sale, our general philosophy is to reduce our exposure to securities and sectors based on economic evaluations of whether the fundamentals for that security or sector have deteriorated or the timing is appropriate to opportunistically trade for other securities with better economic-return characteristics.

Net realized and unrealized gains and losses for the indicated periods were as follows:

	Quarter ended September 30,			Change %		Nine Months ended September 30,			Change %
($ in thousands)	2022		2021			2022		2021
Net realized (losses) gains on disposals	$	(12,574)	4,646	(371)	%	$	(28,730)	4,119	(797)	%
Net unrealized (losses) gains on equity securities	(7,777)		(3,111)	150		(31,791)		15,830	(301)
Net credit loss expense on fixed income securities, AFS	(4,471)		(1,334)	235		(42,042)		(4,059)	936
Net credit loss (expense) benefit on fixed income securities, held-to-maturity	54		6	800		62		(54)	(215)
Losses on securities for which we have the intent to sell	(913)		(30)	2,943		(6,412)		(483)	1,228
Total net realized and unrealized investment (losses) gains	$	(25,681)	177	(14,609)		$	(108,913)	15,353	(809)

Net realized and unrealized investment losses were primarily driven by (i) a decrease in valuations reflecting the current public equities market, (ii) active trading of our fixed income securities to opportunistically increase yield in the rising interest rate environment, and (iii) higher credit loss expense on our AFS fixed income securities portfolio.

Federal Income Taxes

The following table provides information regarding federal income taxes and reconciles federal income tax at the corporate rate to the effective tax rate:

	Quarter ended September 30,				Nine Months ended September 30,
($ in thousands)	2022			2021	2022		2021
Tax at statutory rate	$	11,054		19,454	$	36,211	80,108
Tax-advantaged interest	(981)			(1,114)	(3,097)		(3,432)
Dividends received deduction	(95)			(101)	(355)		(377)
Executive compensation	598			566	1,340		1,536
Stock-based compensation	(25)			(29)	(812)		(652)
Other	(437)			155	771		(575)
Federal income tax expense	10,114			18,931	34,058		76,608
Income before federal income tax, less preferred stock dividends	50,339			90,336	165,533		374,413
Effective tax rate	20.1		%	21.0	20.6		20.5

As of September 30, 2022, our deferred federal income tax asset was $164.6 million compared to a deferred federal income tax liability of $13.4 million as of December 31, 2021. This change was primarily due to an increase in unrealized losses on our investment portfolio resulting from an increase in benchmark U.S. Treasury rates and the widening of credit spreads, with the increase in interest rates having the most significant impact. We believe this change is temporary and recoverable, and therefore, we had no valuation allowance recognized for our deferred federal income tax asset as of September 30, 2022.

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 our 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

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our business operations. We adjust our liquidity requirements based on economic conditions, market conditions, and future cash flow commitments, as discussed further below.

Sources of Liquidity

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

The Parent's investment portfolio includes (i) short-term investments 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; (iv) other investments, and (v) a cash balance. In the aggregate, Parent cash and total investments amounted to $506 million at September 30, 2022, and $527 million at December 31, 2021.

The amount and composition of the Parent's investment portfolio may change over time 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 stockholders, asset allocation investment decisions, inorganic growth opportunities, debt retirement, and share repurchases. Our target is for the Parent to maintain highly liquid investments of at least twice its expected annual net cash outflow needs, or $180 million.

Insurance Subsidiary Dividends

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

The Insurance Subsidiaries paid $120 million in total dividends to the Parent during Nine Months 2022. As of December 31, 2021, our allowable ordinary maximum dividend is $322 million for 2022. 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 statutory surplus reported in its 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 stockholders 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 stockholders is also impacted by (i) covenants in its credit agreement 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. "Equity," 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 2021 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. No borrowings were made under the Line of Credit in Nine Months 2022. The Line of Credit will mature on December 20, 2022, and has a variable interest rate based on the Parent’s debt ratings, among other factors. We expect to continue to maintain a credit facility for liquidity purposes. 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 2021 Annual Report. We met all covenants under our Line of Credit as of September 30, 2022.

Four of the Insurance Subsidiaries are members of Federal Home Loan Bank ("FHLB") branches, as shown in the following table. Membership requires the ownership of branch stock and includes the right to access liquidity. All Federal Home Loan Bank of Indianapolis ("FHLBI") and Federal Home Loan Bank of New York ("FHLBNY") borrowings are required to be secured by investments pledged as collateral. For additional information regarding collateral outstanding, refer to Note 4.

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"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" because 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. 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. As of September 30, 2022, we had remaining capacity of $436.5 million for FHLB borrowings, with a $17.2 million additional stock purchase requirement to allow the member companies to borrow their remaining capacity amounts.

Short-term Borrowings

During Nine Months 2022, SICA borrowed $35 million from the FHLBNY on April 1, 2022 at an interest rate of 0.70% with repayment due on May 2, 2022. This borrowing was refinanced upon its maturity on May 2, 2022, at an interest rate of 1.10% and was subsequently repaid on June 27, 2022. These funds were used for general corporate purposes.

Intercompany Loan Agreements

The Parent has lending agreements with the Indiana Subsidiaries approved by the Indiana Department of Insurance that provide 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 September 30, 2022, and December 31, 2021. The remaining capacity under these intercompany loan agreements was $109.9 million as of both September 30, 2022, and December 31, 2021.

Capital Market Activities

The Parent had no private or public stock issuances during Nine Months 2022. During Nine Months 2022, we repurchased 165,159 shares of our common stock under our existing share repurchase program for $12.4 million, or a $75.20 average price per share, excluding commission costs paid. We had $84.2 million of remaining capacity under our share repurchase program as of September 30, 2022. For additional information on the share repurchase program, refer to Note 17. “Equity” in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

Uses of Liquidity

The Parent's liquidity generated from the sources discussed above is used, among other things, to pay dividends to our stockholders. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. On November 2, 2022, our Board declared:

•A 7% increase in the quarterly cash dividend on common stock, to $0.30 per common share, that is payable December 1, 2022, to holders of record on November 15, 2022; 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) payable on December 15, 2022, to holders of record as of November 30, 2022.

Our ability to meet our interest and principal repayment obligations on our debt and 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. Our next FHLB borrowing principal repayment is $60 million to FHLBI due 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 September 30, 2022, we had GAAP stockholders' equity of $2.4 billion and statutory surplus of $2.4 billion. With total debt of $505.2 million at September 30, 2022, our debt-to-capital ratio was 17.2%. For additional information on our statutory surplus, see Note 22. "Statutory Financial Information, Capital

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Requirements, and Restrictions on Dividends and Transfers of Funds" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

The following table summarizes certain contractual obligations we had at September 30, 2022, that may require us to invest additional amounts into our investment portfolio, which we would fund primarily with operating cash flows.

($ in millions)	Amount of Obligation
Alternative and other investments	$	246.7
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio	49.0
Non-publicly traded common stock within our equity portfolio	37.1
CMLs	6.4
Privately-placed corporate securities	45.0
Total	$	384.2

There is no certainty (i) that any such additional investments will be required, and (ii) of the actual timing of the funding. We expect to have the capacity to fund these commitments through our normal operating and investing activities as they come due. Our current and long-term material cash requirements associated with (i) loss and loss expense reserves, (ii) contractual obligations under operating and financing leases for office space and equipment, and (iii) notes payable, funded primarily with operating cash flows, have not materially changed since December 31, 2021.

Our other cash requirements include, without limitation, dividends to stockholders, capital expenditures, and other operating expenses, including commissions to our distribution partners, labor costs, premium taxes, general and administrative expenses, and income taxes.

As of September 30, 2022, and December 31, 2021, we had no (i) material guarantees on behalf of others and trading activities involving non-exchange traded contracts accounted for at fair value, (ii) material transactions with related parties other than those disclosed in Note 18. “Related Party Transactions” in Item 8. “Financial Statements and Supplementary Data.” of our 2021 Annual Report, and (iii) 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.

We continually monitor our cash requirements and the 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 and/or equity securities, repurchasing existing debt, repurchasing shares of the Parent’s common stock, and increasing common 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 a profitable book of business and solid capital base, positioning us well to take advantage of potential market opportunities.

Book value per common share decreased 20% to $36.96 as of September 30, 2022, from $46.24 as of December 31, 2021, driven by a $10.64 change in net unrealized losses on our fixed income securities portfolio and $0.84 in dividends to our common stockholders, partially offset by $2.16 in net income available to common stockholders per diluted common share. The increase in net unrealized losses on our fixed income securities was primarily driven by an increase in benchmark U.S. Treasury rates and the widening of credit spreads, with the increase in interest rates having the most significant impact. Our adjusted book value per share, which is book value per share excluding total after-tax unrealized gains or losses on investments included in accumulated other comprehensive (loss) income, increased slightly to $44.59 as of September 30, 2022, from $43.23 as of December 31, 2021.

Cash Flows

Net cash provided by operating activities was $485.4 million in Nine Months 2022 compared to $543.3 million in Nine Months 2021. The decrease was primarily driven by lower underwriting results in our insurance operations. For more information on our underwriting results, refer to "Insurance Operations" above in this MD&A.

Net cash used in investing activities increased to $450.9 million in Nine Months 2022 compared to $417.8 million in Nine Months 2021, as a result of investing more cash from operating activities. Operating cash flows during Nine Months 2022 were

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18% of NPW.

Net cash used in financing activities decreased to $70.6 million in Nine Months 2022 compared to $106.0 million in Nine Months 2021, primarily due to a decrease in borrowing repayments made in Nine Months 2022, partially offset by increased dividends to our common stockholders and increased activity in our share repurchase program in Nine Months 2022.

Ratings

Our ratings remain the same as reported in our "Overview" section of Item 1. "Business." of our 2021 Annual Report and are as follows:

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

On March 24, 2022, Fitch reaffirmed our "A+" rating with a "stable" outlook. In taking this rating action, Fitch cited our (i) business profile as a regional commercial lines writer with strong independent agency relationships, (ii) strong capitalization, and (iii) strong financial performance with stable underwriting results and return metrics that have remained favorable compared to peers.

On October 13, 2022, S&P reaffirmed our "A" rating with a "stable" outlook. In taking this rating action, S&P cited our strong financial and business risk profiles, driven by strong capital adequacy and operating performance.

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 2021 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 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 Third Quarter 2022 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 routinely engaged in legal proceedings with inherently unpredictable outcomes that 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 14. "Litigation" in Item 1. "Financial Statements." of this Form 10-Q and Item 1A. “Risk Factors.” below in Part II. “Other Information.” As of September 30, 2022, 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 our actions in executing our long-term capital strategy.

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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 common stockholders' dividends. We operate in a continually changing business environment, and new risk factors that we cannot predict or assess may emerge anytime. Consequently, we can neither predict such new risk factors nor assess the potential future impact they might have on our business. Except as discussed below, there have been no material changes from the risk factors disclosed in Item 1A. “Risk Factors.” in our 2021 Annual Report.

Our ability to reduce our risk exposure depends on the availability and cost of reinsurance.

We transfer a significant portion of our underwriting risk exposure – specifically parts of our loss and loss expense – to reinsurance companies in exchange for specified amounts or percentages of premiums. The availability, amount, and cost of reinsurance depend on market conditions, including retrocessional reinsurance market capacity. By purchasing reinsurance, we have direct and indirect counterparty credit risk to our reinsurers and the reinsurance industry.

The combination of recent economic, geopolitical, and insured loss events increased global reinsurance market uncertainty. The impacts of (i) higher inflation-related reinsurance demand, (ii) reduced capacity due to reinsurer investment portfolio losses, (iii) weakened Euro-United States dollar currency exchange rates, (iv) recent Hurricane Ian-related reinsurer losses, (v) poor reinsurer profitability over the past five years, and (vi) investor and reinsurer concerns about the potential impacts of climate change are all likely to raise prices and reduce the availability of reinsurance. Current market conditions may put pressure on the availability and pricing of reinsurance as we negotiate the January 1, 2023 renewal of our property catastrophe reinsurance treaty.

To the extent we are exposed to primary policy losses from risks that may be excluded from our upcoming reinsurance treaty renewal coverage, we face increased underwriting risk. Increased underwriting risk could increase our net loss and loss expenses, increasing our underwriting results volatility. Decreased reinsurance capacity also would increase our underwriting risk if we cannot fully place our existing reinsurance treaty coverage on renewal. If our reinsurers have difficulty collecting on their retrocession programs or reinstating retrocession coverage after a large loss, we also may not receive timely or full payment of our reinsurance claims.

National and global economic conditions could adversely and materially affect our business, results of operations, financial condition, and growth.

We write business domestically in the United States, and our insurance operations do not have direct exposure to businesses or individuals in Russia or the Ukraine. We do not have material exposure to investments subject to embargoes or Russian reinsurance counterparties. However, the ongoing Russian war against Ukraine is impacting global economic, banking, commodity, and financial markets, exacerbating ongoing economic challenges, including inflation and supply chain disruption, which influence insurance loss costs, premiums, and investment valuation.

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

The following table provides information regarding our purchases of our common stock in Third Quarter 2022:

Period	Total Number of Shares Purchased1	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs2	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Announced Programs (in millions)2
July 1 – 31, 2022	727	$	87.52	—	$	90.1
August 1 - 31, 2022	136	80.37		79,100	84.2
September 1 - 30, 2022	—	—		—	84.2
Total	863	$	86.40	79,100	$	84.2

1We purchased these shares from employees to satisfy tax withholding obligations associated with the vesting of their restricted stock units.

2On December 2, 2020, we announced our Board of Directors authorized a $100 million share repurchase program with no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock. Management will determine the timing and amount of any share repurchases under the authorization at its discretion based on market conditions and other considerations.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

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ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

The information set forth below is included herein, by our option, for the purpose of providing disclosure under "Item 5.03 – Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year" of Form 8-K.

On November 2, 2022, the Board of Directors of Selective Insurance Group, Inc. (the "Company") adopted the following amendments to the Company’s By-Laws (the "By-Laws"), effective November 2, 2022:

•Section 3A. of the By-Laws has been amended to provide that a meeting of stockholders may be held solely or in part by means of remote communication, consistent with applicable provisions of the New Jersey Business Corporation Act.

•Section 3B. of the By-Laws has been amended to enhance certain procedural mechanics and disclosure requirements in connection with stockholder nominations of directors, including to provide that, at the request of the Company, the proposed nominee must submit all completed and signed questionnaires prepared by the Company (including those required of the Company’s directors and officers and any other questionnaire the Company determines is necessary or advisable to assess whether the proposed nominee will satisfy any qualifications or requirements imposed by the Company’s Certificate of Incorporation or By-Laws, any applicable law, rule, regulation or listing requirement, and any Company policies and guidelines applicable to directors).

•Section 7C. of the By-Laws has been amended to provide that no person who has attained his or her 72nd birthday shall be eligible for election as a director of the Company.

The By-Laws, as amended, also incorporate certain ministerial, non-substantive and conforming changes.

The foregoing description is a summary and is qualified in its entirety by reference to the full text of the amended By-Laws, a copy of which is attached as Exhibit 3.2 to this Quarterly Report on Form 10-Q and is incorporated by reference herein.

ITEM 6. EXHIBITS.

Exhibit No.
*3.1	By-Laws of Selective Insurance Group, Inc., effective November 2, 2022.
*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 September 30, 2022, 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 September 30, 2022, formatted in iXBRL.

* Filed herewith.

** Furnished and not filed herewith.

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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:	November 3, 2022	By: /s/ John J. Marchioni
		John J. Marchioni
		Chairperson of the Board, President and Chief Executive Officer
		(principal executive officer)
Date:	November 3, 2022	By: /s/ Mark A. Wilcox
		Mark A. Wilcox
		Executive Vice President and Chief Financial Officer
		(principal financial officer)

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EX-3.1

Exhibit 3.1

BY-LAWS

OF

SELECTIVE INSURANCE GROUP, INC.

EFFECTIVE

NOVEMBER 2, 2022

OFFICES

Section 1. The principal office of Selective Insurance Group, Inc. (the “Company”) shall be located at 40 Wantage Avenue, Branchville, New Jersey, 07890. The Company may also establish and have offices at such other places as the Board of Directors may designate from time to time.

SEAL

Section 2. The Company shall have a seal with the name of the Company, the year of its organization, the words "Corporate Seal" and the state of its incorporation thereon.

MEETINGS OF STOCKHOLDERS

Section 3A. The annual meeting of the stockholders shall be held on a business day at a time the Board of Directors shall affix during the last week in April at the principal office of the Company or at such other time, date, and place in or outside the State of New Jersey as a majority of the Directors may previously designate for the election of Directors and the transaction of such other business properly brought before the meeting. A meeting of the stockholders may be held solely or in part by remote communication means consistent with the New Jersey Business Corporation Act. Notice of the annual meeting shall be given by the Secretary by mail addressed to each stockholder at the address appearing on the Company records not less than ten (10) nor more than sixty (60) days before the meeting. Any stockholder that attends a meeting without objecting to a lack of meeting notice before the meeting’s conclusion shall be deemed to have waived his/her right to notice of the meeting.

Special meetings of the stockholders may be held at the Company’s principal office or at such other place in or outside the State of New Jersey as the Directors may previously designate, whenever called, by any of the affirmative vote of a majority of the whole Board of Directors, the Chief Executive Officer, or the President. Notice of such a special meeting shall identify its purpose and be mailed to each stockholder at the address appearing on the Company’s records not less than ten (10) nor more than sixty (60) days before the meeting. Such notice shall be completely given upon mailing.

The holders of shares entitled to cast a majority of the votes at a meeting shall constitute a quorum at such meeting for the election of Directors or the transaction of other business. This paragraph shall apply in determining the presence of a quorum whenever the holders of any class or series are entitled to vote separately on a specified item of business, for the transaction of such specified item of business.

Section 3B. (i) Nature of Business at Meetings of Stockholders. Only such business (other than nominations for election to the Board of Directors, which must comply with the provisions of Section 3(B)(ii)) may be transacted at an annual meeting of stockholders as is either (a) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors (or any duly authorized committee thereof), (b) otherwise properly brought before the annual meeting by or at the direction of the Board of Directors (or any duly authorized committee thereof), or (c) otherwise properly brought before the annual meeting by any stockholder of the Company (i) who is a stockholder of record on the date of the giving of the notice provided for in this Section 3B(i) and on the record date for the determination of stockholders entitled to notice of and to vote at such annual meeting and (ii) who complies with the notice procedures set forth in this Section 3B(i).

In addition to any other applicable requirements, for business to be properly brought before an annual meeting by a stockholder, such stockholder must have given timely notice thereof in proper written form to the Secretary of the Company.

To be timely, a stockholder’s notice to the Secretary must be delivered to or be mailed and received at the principal executive offices of the Company not less than one hundred twenty (120) days nor more than one hundred fifty (150) days before the anniversary date of the immediately preceding annual meeting of stockholders; provided, however, that if the annual meeting is called for a date that is not within twenty-five (25) days before or after such anniversary date, notice by the stockholder must be so received not later than the close of business on the tenth (10th) day following the day on which such notice of the date of the annual meeting was mailed or such public disclosure of the date of the annual meeting was made, whichever first occurs. In no event shall the adjournment or postponement of an annual meeting, or the public announcement of such an adjournment or postponement, commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

To be in proper written form, a stockholder’s notice to the Secretary must set forth the following information: (a) as to each matter such stockholder proposes to bring before the annual meeting, a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, and (b) as to the stockholder giving notice and the beneficial owner, if any, on whose behalf the proposal is being made, (i) the name and address of such person, (ii) (A) the class or series and number of all shares of stock of the Company which are owned beneficially or of record by such person and any affiliates or associates of such person, (B) the name of each nominee holder of shares of all stock of the Company owned beneficially but not of record by such person or any affiliates or associates of such person, and the number of such shares of stock of the Company held by each such nominee holder, (C) whether and the extent to which any derivative instrument, swap, option, warrant, short interest, hedge or profit interest or other transaction has been entered into by or on behalf of such person, or any affiliates or associates of such person, with respect to stock of the Company and (D) whether and the extent to which any other transaction, agreement, arrangement or understanding (including any short position or any borrowing or lending of shares of stock of the Company) has been made by or on behalf of such person, or any affiliates or associates of such person, the effect or intent of any of the foregoing being to mitigate loss to, or to manage risk or benefit of stock price changes for, such person, or any affiliates or associates of such person, or to increase or decrease the voting power or pecuniary or economic interest of such person, or any affiliates or associates of such person, with respect to stock of the Company; (iii) a description of all agreements, arrangements, or understandings (whether written or oral) between or among such person, or any affiliates or associates of such person, and any other person or persons (including their names) in connection with the proposal of such business and any material interest of such person or any affiliates or associates of such person, in such business, including any anticipated benefit therefrom to such person, or any affiliates or associates of such person, (iv) a representation that the stockholder giving notice intends to appear in person or by proxy at the annual meeting to bring such business before the meeting; and (v) any other information relating to such person that would be required to be disclosed in a proxy statement or other filing required to be made in connection with the solicitation of proxies by such person with respect to the proposed business to be brought by such person before the annual meeting pursuant to Section 14 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder.

A stockholder providing notice of business proposed to be brought before an annual meeting shall further update and supplement such notice, if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 3B(i) shall be true and correct as of the record date for determining the stockholders entitled to receive notice of the annual meeting and such update and supplement shall be delivered to or be mailed and received by the Secretary at the principal executive offices of the Company not later than five (5) business days after the record date for determining the stockholders entitled to receive notice of the annual meeting.

No business shall be conducted at the annual meeting of stockholders except business brought before the annual meeting in accordance with the procedures set forth in this Section 3B(i); provided, however, that, once business has been properly brought before the annual meeting in accordance with such procedures, nothing in this Section 3B(i) shall be deemed to preclude discussion by any stockholder of any such business. If the chairperson

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of an annual meeting determines that business was not properly brought before the annual meeting in accordance with the foregoing procedures, the chairperson shall declare to the meeting that the business was not properly brought before the meeting and such business shall not be transacted.

Nothing contained in this Section 3B(i) shall be deemed to affect any rights of stockholders to request inclusion of proposals in the Company's proxy statement pursuant to Rule 14a-8 under the Exchange Act (or any successor provision of law).

(ii) Nomination of Directors. Only persons who are nominated in accordance with the following procedures shall be eligible for election as Directors of the Company, except as may be otherwise provided in the Amended and Restated Certificate of Incorporation with respect to the right of holders of preferred stock of the Company to nominate and elect a specified number of Directors in certain circumstances. Nominations of persons for election to the Board of Directors may be made at any annual meeting of stockholders, or at any special meeting of stockholders called for the purpose of electing Directors, (a) by or at the direction of the Board of Directors (or any duly authorized committee thereof) or (b) by any stockholder of the Company (i) who is a stockholder of record on the date of the giving of the notice provided for in this Section 3B(ii) and on the record date for the determination of stockholders entitled to notice of and to vote at such annual meeting or special meeting and (ii) who complies with the notice procedures set forth in this Section 3B(ii).

In addition to any other applicable requirements, a stockholder making a nomination must have given timely notice in proper written form to the Secretary of the Company.

To be timely, a stockholder’s notice to the Secretary must be delivered to or be mailed and received at the principal executive offices of the Company (a) in the case of an annual meeting, not less than one hundred twenty (120) days nor more than one hundred fifty (150) days prior to the anniversary date of the immediately preceding annual meeting of stockholders; provided, however, that in the event that the annual meeting is called for a date that is not within twenty-five (25) days before or after such anniversary date, notice by the stockholder in order to be timely must be so received not later than the close of business on the tenth (10th) day following the day on which such notice of the date of the annual meeting was mailed or such public disclosure of the date of the annual meeting was made, whichever first occurs; and (b) in the case of a special meeting of stockholders called for the purpose of electing directors, not later than the close of business on the tenth (10th) day following the day on which notice of the date of the special meeting was mailed or public disclosure of the date of the special meeting was made, whichever first occurs. In no event shall the adjournment or postponement of an annual meeting or a special meeting called for the purpose of electing directors, or the public announcement of such an adjournment or postponement, commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

To be in proper written form, a stockholder’s notice to the Secretary must set forth the following information: (a) as to each person whom the stockholder proposes to nominate for election as a Director (i) the name, age, business address and residence address of such person, (ii) the principal occupation or employment of such person, (iii) (A) the class or series and number of all shares of stock of the Company which are owned beneficially or of record by such person and any affiliates or associates of such person, (B) the name of each nominee holder of shares of all stock of the Company owned beneficially but not of record by such person or any affiliates or associates of such person, and the number of such shares of stock of the Company held by each such nominee holder, (C) whether and the extent to which any derivative instrument, swap, option, warrant, short interest, hedge or profit interest or other transaction has been entered into by or on behalf of such person, or any affiliates or associates of such person, with respect to stock of the Company and (D) whether and the extent to which any other transaction, agreement, arrangement or understanding (including any short position or any borrowing or lending of shares of stock of the Company) has been made by or on behalf of such person, or any affiliates or associates of such person, the effect or intent of any of the foregoing being to mitigate loss to, or to manage risk or benefit of stock price changes for, such person, or any affiliates or associates of such person, or to increase or decrease the voting power or pecuniary or economic interest of such person, or any affiliates or associates of such person, with respect to stock of the Company; and (iv) any other information relating to such person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for

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election of directors pursuant to Section 14 of the Exchange Act, and the rules and regulations promulgated thereunder; and (b) as to the stockholder giving the notice, and the beneficial owner, if any, on whose behalf the nomination is being made, (i) the name and record address of the stockholder giving the notice and the name and principal place of business of such beneficial owner; (ii) (A) the class or series and number of all shares of stock of the Company which are owned beneficially or of record by such person and any affiliates or associates of such person, (B) the name of each nominee holder of shares of the Company owned beneficially but not of record by such person or any affiliates or associates of such person, and the number of shares of stock of the Company held by each such nominee holder, (C) whether and the extent to which any derivative instrument, swap, option, warrant, short interest, hedge or profit interest or other transaction has been entered into by or on behalf of such person, or any affiliates or associates of such person, with respect to stock of the Company and (D) whether and the extent to which any other transaction, agreement, arrangement or understanding (including any short position or any borrowing or lending of shares of stock of the Company) has been made by or on behalf of such person, or any affiliates or associates of such person, the effect or intent of any of the foregoing being to mitigate loss to, or to manage risk or benefit of stock price changes for, such person, or any affiliates or associates of such person, or to increase or decrease the voting power or pecuniary or economic interest of such person, or any affiliates or associates of such person, with respect to stock of the Company; (iii) a description of all agreements, arrangements, or understandings (whether written or oral) between such person, or any affiliates or associates of such person, and any proposed nominee or any other person or persons (including their names) pursuant to which the nomination(s) are being made by such person, and any material interest of such person, or any affiliates or associates of such person, in such nomination, including any anticipated benefit therefrom to such person, or any affiliates or associates of such person; (iv) a representation that the stockholder giving notice intends to appear in person or by proxy at the annual meeting or special meeting to nominate the persons named in its notice; and (v) any other information relating to such person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with the solicitation of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder. Such notice must be accompanied by a written consent of each proposed nominee to being named as a nominee and to serve as a director if elected. At the request of the Company, any proposed nominee must submit all completed and signed questionnaires the Company requests and requires of the Company’s Directors and any other questionnaire the Company determines is necessary or advisable to assess whether the proposed nominee will satisfy any qualifications or requirements imposed by the Amended and Restated Certificate of Incorporation, these By-Laws,any applicable law, rule, regulation or listing requirement, and any Company policies and guidelines applicable to Directors.

A stockholder providing notice of any nomination proposed to be made at an annual meeting or special meeting shall further update and supplement such notice, if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 3B(ii) shall be true and correct as of the record date for determining the stockholders entitled to receive notice of the annual meeting or special meeting, and such update and supplement shall be delivered to or be mailed and received by the Secretary at the principal executive offices of the Company not later than five (5) business days after the record date for determining the stockholders entitled to receive notice of such annual meeting or special meeting.

No person shall be eligible for election as a Director of the Company unless nominated in accordance with the procedures set forth in this Section 3B(ii). If the chairperson of the meeting determines that a nomination was not made in accordance with the foregoing procedures, the chairperson shall declare to the meeting that the nomination was defective and such defective nomination shall be disregarded.

Section 3C. Except as provided in Section 7B of these By-Laws, a nominee for director shall be elected to the Board of Directors if the votes cast for such nominee's election exceed the votes cast against such nominee's election; provided, however, that directors shall be elected by a plurality of the votes cast at any meeting of stockholders for which the Secretary of the Company determines that the number of nominees exceeds the number of directors to be elected as of the date seven days prior to the scheduled mailing date of the proxy statement for such meeting.

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INSPECTORS OF ELECTION

Section 4. At the annual meeting of the stockholders, two (2) stockholders, not candidates for the office of Director, shall be appointed as inspectors of the election, whose duty it shall be honestly and fairly to conduct such election, and who shall furnish a certificate over their signatures of the result thereof, which certificate shall be presented to and filed by the Secretary.

RIGHTS OF STOCKHOLDERS

Section 5. Every stockholder shall be entitled at any meeting of the stockholders to one (1) vote for each share of stock held by him/her, except as may otherwise be set forth in the Amended and Restated Certificate of Incorporation.

Section 6. The Board of Directors shall have power to close the stock transfer books of the Company for a period not exceeding fifty (50) days preceding the date of any meeting of stockholders or the date for payment of any dividend, or the date for the allotment of rights, or the date when any change or conversion or exchange of capital stock shall go into effect; provided that, in lieu of so closing the stock transfer books, the Board of Directors may fix in advance a date, not exceeding sixty (60) days preceding the date of any meeting of stockholders, or the date for the payment of any dividend, or the date for the allotment of rights, or the date when any change or conversion or exchange of capital stock shall go into effect, as a record date for the determination of the stockholders entitled to notice of, and to vote at, any such meeting, or entitled to receive payment of any such dividend, or any such allotment of rights, or to exercise the rights in respect to any such change, conversion or exchange of capital stock, and in such case only stockholders of record on the date so fixed shall be entitled to such notice of, and to vote at, such meeting or to receive payment of such dividend, or allotment of rights or exercise of such rights, as the case may be, and notwithstanding any transfer of any stock on the books of the Company after any such record date fixed as aforesaid.

Certificates of stock of the Company shall be in such form as the Board of Directors shall from time to time prescribe and shall be signed by the Chairperson of the Board of Directors, the President or a Vice President and by either the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary. The Board of Directors shall have power to appoint one or more Transfer Agents and/or one (1) or more Registrars for the transfer and/or registration of the certificates of stock and may require that stock certificates shall be countersigned and/or registered by a Transfer Agent and/or Registrar; provided, that when any certificate is signed by a Transfer Agent and registered by a Registrar, if the Board of Directors shall by resolution so provide, the signatures of the officers of the Company who sign such certificate may be facsimiles and the seal of the Company imprinted thereon. The Board of Directors has the authority to issue some or all stock of any class or series of the Company’s capital stock with or without certificates.

Shares of stock of the Company shall be transferable on the books of the Company by the holder of record thereon in person or by duly authorized attorney and upon the surrender of the certificate properly endorsed.

No stockholder shall be personally liable for any of the debts or obligations of the Company or for any assessment on his/her stock.

Stockholders shall have no right to any division of the assets or profits of the Company or to any dividends therefrom, except as the Board of Directors shall from time to time declare.

The Company shall be entitled to treat the holder of record of any share or shares of stock as the holder in fact thereof and accordingly shall not be bound to recognize any equitable or other claim to or interest in such share on the part of any other person whether or not it shall have express or other notice thereof, save as expressly provided by the laws of the State of New Jersey.

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DIRECTORS

Section 7A. The business and affairs of the Company shall be managed by a Board of Directors which shall have and may exercise all of the powers of the Company, except such as are expressly conferred upon the stockholders by law, by the Amended and Restated Certificate of Incorporation or by these By-Laws. Subject to the rights of the holders of shares of any series of preferred stock then outstanding, the Board of Directors shall consist of not less than seven (7) nor more than twenty (20) persons. The exact number of Directors within the minimum and maximum limitations specified in the preceding sentence shall be fixed from time to time by the Board of Directors pursuant to a resolution adopted by a majority of the whole Board of Directors, and if such number is not so fixed, the number shall be twelve (12). No decrease in the number of Directors constituting the Board of Directors shall shorten the term of any incumbent Director. Commencing at the annual meeting of stockholders that is held in calendar year 2010 (the “2010 Annual Meeting”), Directors shall be elected annually for terms of one (1) year, except that any Director in office at the 2010 Annual Meeting whose term does not expire until the annual meeting of stockholders held in calendar year 2011 or calendar year 2012 (a “Continuing Classified Director”) shall continue to hold office until the end of the term for which such Continuing Classified Director was previously elected and until such Continuing Classified Director’s successor shall have been elected and qualified. Except as otherwise required by law, until the term of a Continuing Classified Director or any other Director expires or otherwise terminates as aforesaid, such Directors may be removed from office by the stockholders of the Corporation only for cause pursuant to the applicable provisions of the New Jersey Business Corporation Act.

Section 7B. Vacancies, however caused, occurring in the Board of Directors, and newly created directorships resulting from an increase in the authorized number of Directors may be filled by the affirmative vote of a majority of the remaining Directors at any regular or special meeting and such newly appointed Director shall serve a term expiring at the next annual meeting of stockholders and until such Director’s successor shall have been elected and qualified.

Section 7C. No person who has attained his/her 72nd birthday shall be eligible for election as a Director.

Section 7D. Members of the Board of Directors shall receive such compensation as the Board of Directors may from time to time direct or determine.

MEETINGS OF THE BOARD OF DIRECTORS

Section 8. Regular meetings of the Board of Directors shall be held at a time and place to be fixed by the Board of Directors.

Any of the Chairperson of the Board of Directors, the Lead Independent Director or the Chief Executive Officer may call a special meeting of the Board of Directors when in his/her opinion the interests of the Company require it. It shall be the duty of the Chief Executive Officer, President or Secretary to call a special meeting of the Board of Directors at the request, in writing, of one-third (1/3) of the Directors then in office; and if the Chief Executive Officer, President, or Secretary fails or refuses to do so one-third (1/3) of the Directors then in office may call a special meeting of the Board of Directors. In the absence of the Chairperson of the Board of Directors, the Lead Independent Director (or his or her designee) shall preside at all meetings of the Board of Directors and shall act as temporary chairperson at, and call to order, all meetings of the stockholders.

At any meeting of the Board of Directors, the participation of the Directors with a majority of the votes of the then-current Board of Directors shall constitute a quorum but a lesser number may adjourn the meeting from time to time until a quorum appears.

Twenty-Four (24) hours notice of the time and place of any meeting of the Board of Directors shall be given to all Directors but business transacted at any meeting at which all Directors are present shall be legal even though no notice of the applicable meeting was given.

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Members of the Board of Directors, or any committee designated by the Board of Directors, may participate in a meeting thereof by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this provision shall constitute presence in person at such meeting.

Any action required or permitted to be taken pursuant to authorization voted at a meeting of the Board of Directors, or any committee designated by the Board of Directors, may be taken without a meeting, if, prior or subsequent to such action, all members of the Board of Directors or of such committee, as the case may be, consent theretoin writing (including by facsimile, electronic mail or any other electronic means) and such written consents are filed with the minutes of the proceedings of the Board of Directors or committee. Such consent shall have the same effect as a unanimous vote of the Board of Directors or committee for all purposes and may be stated as such in any certificate or other document filed with the Treasurer of the State of New Jersey, or other equivalent body in a foreign jurisdiction.

EXECUTIVE COMMITTEE

Section 9A. The Board of Directors shall annually at its organizational meeting elect from its members an Executive Committee consisting of the Chairperson of the Board of Directors, the Lead Independent Director and a minimum of three (3) other Directors who shall constitute the Executive Committee, as fixed by the Board of Directors. The Executive Committee shall meet at the call of any of the Chairperson of the Board of Directors, the Lead Independent Director, or any two (2) members of the Executive Committee but business transacted at any meeting at which all Directors comprising the Executive Committee are present (and do not object to the lack of notice prior to the conclusion of the meeting) shall be legal even though no notice of the applicable committee meeting was given. The Executive Committee shall have authority, when the Board of Directors is not in session, to take action upon any matters that may be brought before it, except the Company's investments and except as expressly prohibited by the New Jersey Business Corporation Act as amended, and shall report its proceedings to the Board of Directors at the Board of Director's next meeting. The participation of Executive Committee members with a majority of the votes of the entire Executive Committee shall constitute a quorum thereof.

The Chairperson of the Board of Directors shall be chairperson of the Executive Committee.

The action of (i) a majority of the members of the Executive Committee expressed at meetings or (ii) all of the members of the Executive Committee expressed by a writing (including by facsimile, electronic mail or any other electronic means), without a meeting, shall, for all purposes, constitute the action of the Executive Committee.

FINANCE COMMITTEE

Section 9B. The Board of Directors shall annually elect from its members a chairperson and a minimum of three (3) other Directors, who shall constitute the Finance Committee, as fixed by the Board of Directors. The Finance Committee shall meet on at least twenty-four (24) hours' notice at the call of such chairperson or any two (2) members but business transacted at any meeting at which all Directors comprising the Finance committee are present (and do not object to the lack of notice prior to the conclusion of the meeting) shall be legal even though no notice of the applicable committee meeting was given. The Finance Committee shall have authority to purchase and sell stocks, bonds, notes and other securities, to sell properties acquired in foreclosure suits or in satisfaction of debts, and otherwise to invest and reinvest the funds of the Company. All such purchases, sales, investments and reinvestments must be reported to the Board of Directors at its next meeting. A majority of the Finance Committee shall constitute a quorum thereof.

The action of (i) a majority of the members of the Finance Committee expressed at meetings or (ii) all of the members of the Finance Committee expressed by a writing (including by facsimile, electronic mail or any other electronic means), without a meeting, shall, for all purposes, constitute the action of the Finance Committee.

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AUDIT COMMITTEE

Section 9C. The Board of Directors shall annually arrange for an audit of the Company's accounts by a certified public accountant. It shall fix the number of and elect from its members an Audit Committee none of whom shall be an officer of the Company. The Audit Committee shall meet on at least twenty-four (24) hours' notice at the call of such chairperson or any two (2) members but business transacted at any meeting at which all Directors comprising the Audit Committee are present (and do not object to the lack of notice prior to the conclusion of the meeting) shall be legal even though no notice of the applicable committee meeting was given. The Audit Committee shall examine the report of such audit and report to the Board of Directors any matters therein requiring action or consideration. Such Audit Committee or the accountant shall have the right of access at all reasonable times to the accounts, books and vouchers of the Company, and the officers of the Company shall supply such information and explanation as may be necessary for the full performance of their duties.

The action of (i) a majority of the members of the Audit Committee expressed at meetings or (ii) all of the members of the Audit Committee expressed by a writing (including by facsimile, electronic mail or any other electronic means), without a meeting, shall, for all purposes, constitute the action of the Audit Committee.

SALARY AND EMPLOYEE BENEFITS COMMITTEE

Section 9D. The Board of Directors shall annually elect from its members a chairperson and a minimum of three (3) Directors, each of whom shall be an independent director, who shall constitute the Salary and Employee Benefits Committee, as fixed by the Board of Directors. The Salary and Employee Benefits Committee shall meet at least quarterly and more frequently as necessary to carry out its responsibilities. Meetings may be called by the chairperson and/or by the management of the Company. The Salary and Employee Benefits Committee shall oversee the Company’s compensation and employee benefit plans and practices, including its executive compensation plans, and its incentive compensation and equity-based plans. A majority of the Salary and Employee Benefits Committee shall constitute a quorum thereof.

The action of (i) a majority of the members of the Salary and Employee Benefits Committee expressed at meetings or (ii) all of the members of the Salary and Employee Benefits Committee expressed by a writing (including by facsimile, electronic mail or any other electronic means), without a meeting, shall, for all purposes, constitute the action of the Salary and Employee Benefits Committee.

CORPORATE GOVERNANCE AND NOMINATING COMMITTEE

Section 9E. The Board of Directors shall annually elect from its members a chairperson and a minimum of three (3) Directors, each of whom shall be an independent director, who shall constitute the Corporate Governance and Nominating Committee, as fixed by the Board of Directors. The Corporate Governance and Nominating Committee shall meet at least annually and more frequently as necessary to carry out its responsibilities. Meetings may be called by the chairperson and/or by the management of the Company. The Corporate Governance and Nominating Committee shall establish criteria for the selection of directors, identify and recommend to the Board nominees for director in connection with the Company’s annual meeting of the stockholders, advise the Board with respect to the Board composition, procedures and committees, identify and recommend to the Board the members of the Board to serve on the Board’s committees, oversee the evaluation of the Board and oversee the Company’s corporate governance policies and procedures. A majority of the Corporate Governance and Nominating Committee shall constitute a quorum thereof.

The action of (i) a majority of the members of the Corporate Governance and Nominating Committee expressed at meetings or (ii) all of the members of the Corporate Governance and Nominating Committee expressed by a writing (including by facsimile, electronic mail or any other electronic means), without a meeting, shall, for all purposes, constitute the action of the Corporate Governance and Nominating Committee.

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OTHER COMMITTEES

Section 10. The Board of Directors shall have the power to create other committees and shall have the power to appoint the members thereof.

NOTICE TO DIRECTORS, OFFICERS AND COMMITTEE MEMBERS

Section 11. Any notice required to be given to any Director, officer or committee member under the provisions of these By-Laws or otherwise shall be duly and sufficiently given if mailed to such Director, officer or committee member at his/her address as the same appears on the stock books of the Company (or, in the case of an officer who is not a stockholder, at his/her address appearing on the payroll records), or if given personally or by telephone, facsimile, electronic mail or other electronic means. Such notice shall be completely given upon mailing, or upon personal or telephonic notification, or upon the sending of a facsimile, electronic mail or other electronic transmission, to such Director, officer or committee member, as the case may be, at his/her address, telephone number, facsimile number, electronic mail address or other electronic transmission, in each case as the same appears on the books of the Company. Any such notice may be waived by any Director, officer or committee member to whom it is required to be given either before or after the meeting or occurrence for which such notice is required. Any Director that attends a meeting of the Board of Directors or a meeting of any committee designated by the Board of Directors without objecting to a lack of notice of the meeting prior to the meeting’s conclusion shall be deemed to have waived his/her right to notice of the meeting.

OFFICERS

Section 12A. The Board of Directors immediately after the annual meeting of the stockholders shall meet and elect or appoint a Chairperson of the Board of Directors, Lead Independent Director, Chief Executive Officer, President, one or more Vice Presidents, a Secretary and a Treasurer. They may appoint such other officers as the needs of the Company may from time to time require. All officers shall serve for one (1) year, or until the election and qualification of their successors, subject to the power of the Directors to remove any officer at pleasure by a majority vote of the Board of Directors. Any two (2) offices except those of the President and Secretary may be held by the same person. The compensation of the executive officers shall be fixed by the Board of Directors in accordance with any applicable stock exchange listing rules.

Section 12B. Chief Executive Officer. The Chief Executive Officer shall have the powers and duties of management of the Company usually vested in a chief executive officer, including general supervision, direction, and control of the business and supervision of the other officers of the Company, subject only to the authority of the Board of Directors. The Chief Executive Officer shall see that all orders and resolutions of the Board of Directors are carried into effect. The Chief Executive Officer may enter into and execute in the name of the Company contracts or other instruments in the regular course of business or contracts or other instruments not in the regular course of business that are authorized, either generally or specifically, by the Board of Directors. The Chief Executive Officer shall have such otherpowers and duties as may be prescribed by the Board of Directors or these By-Laws. At a meeting of the Board of Directors during the first quarter of the Company’s fiscal year, the Chief Executive Officer shall submit a complete report of the operations and the business of the Company for the previous fiscal year, together with a statement of the Company's affairs at the close of such year, and shall submit a similar report at each annual meeting of the stockholders. The Chief Executive Officer shall also report to the Board of Directors from time to time all matters coming to his/her notice, relating to the interests of the Company that should be brought to the attention of the Board of Directors.

Section 12C. President. The President shall have the general powers and duties of management of the Company and supervision, direction and control of the business as are authorized either generally or specifically by the Chief Executive Officer, the Board of Directors or these By-Laws. When the offices of President and Chief Executive Officer are not held by the same individual, the President shall report to the Chief Executive Officer. The President may enter into and execute in the name of the Company contracts or other instruments in the regular course of business or contracts or other instruments not in the regular course of business that are authorized, either

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generally or specifically, by the Board of Directors. During the absence or disability of the Chief Executive Officer, the President shall have all the powers and functions of the Chief Executive Officer.

Section 12D. During the absence or disability of the President, the Board of Directors shall determine who shall have all of the powers and functions of the President. Each Vice President shall perform such other duties as the Chief Executive Officer, President or Board of Directors shall prescribe.

Section 12E. Secretary. The Secretary shall attend all meetings of the Board of Directors and of the stockholders, and shall record all votes and the minutes of all proceedings in a book to be kept for that purpose. The Secretary shall give or cause to be given notice of all meetings of the stockholders and the Board of Directors, and shall affix the seal of the Company to such papers as may require it. The Secretary shall have charge of the Company's seal, stock certificates and such other books and papers as the Board of Directors may prescribe. The Secretary shall make such reports of the Board of Directors as they may request, and shall prepare and cause to be filed such reports and statements as may be required by law.

Section 12F. Chief Financial Officer. The Chief Financial Officer shall keep full and accurate accounts of receipts and disbursements in books belonging to the Company, and shall see that all expenditures are duly authorized and are evidenced by proper receipts and vouchers. The Chief Financial Officer shall render to the Chief Executive Officer, the President and Directors at the regular meetings of the Board of Directors, or whenever they may require it, an account of all Company transactions, and of the financial condition of the Company, and shall also make a full report of the financial condition of the Company at each annual meeting of the stockholders.

Section 12G. Treasurer. The Treasurer shall have the care and custody of all the funds and securities of the Company and shall deposit the same in the name of the Company in such bank or banks as the Board of Directors may designate, and shall disburse the same under such rules and regulations as may be made by the Board of Directors, and shall perform such other duties as the Board of Directors may from time to time prescribe.

Section 12H. Chairperson of the Board of Directors. The Chairperson of the Board of Directors shall preside at all meetings of the stockholders and the Board of Directors and he shall perform such other duties and exercise such other powers as the Board of Directors or the Executive Committee may prescribe.

INDEMNIFICATION OF DIRECTORS AND OFFICERS

Section 13. Indemnification and Insurance

(i) Right to Indemnification. Each person who was or is made a party or is threatened to be made a party to or is involved in any pending, threatened or completed civil, criminal, administrative or arbitrative action, suit or proceeding, or any appeal therein or any inquiry or investigation which could lead to such action, suit or proceeding (a "proceeding"), by reason of his/her being or having been a Director or officer of the Company or of any constituent company absorbed by the Company in a consolidation or merger, or by reason of his/her being or having been a director, officer, trustee, employee or agent of any other company (domestic or foreign) or of any partnership, joint venture, sole proprietorship, trust, employee benefit plan or other enterprise (whether or not for profit), serving as such at the request of the Company, or the legal representative of any such director, officer, trustee, employee or agent, shall be indemnified and held harmless by the Company to the fullest extent permitted by the New Jersey Business Corporation Act, as the same exists or may hereafter be amended (but, in the case of any such amendment, except as otherwise provided by law, only to the extent that such amendment permits the Company to provide broader indemnification rights than New Jersey Business Corporation Act permitted prior to such amendment), from and against any and all reasonable costs, disbursements and attorney's fees, and any and all amounts paid or incurred in satisfaction of settlements, judgments, fines and penalties, incurred or suffered in connection with any such proceeding, and such indemnification shall continue as to a person who has ceased to be a director, officer, trustee, employee or agent and shall inure to the benefit of his/her heirs, executors, administrators and assigns; provided, however, that, except as provided in Section 13(ii) hereof, the Company shall indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person only

10

if such proceeding (or part thereof) was specifically authorized by the Board of Directors of the Company or as otherwise required by law. The right to indemnification conferred in this subsection shall be a contract right and shall include the right to be paid by the Company the expenses incurred in connection with any proceeding in advance of the final disposition of such proceeding as authorized by the Board of Directors; provided, however, that, if the New Jersey Business Corporation Act so requires, the payment of such expenses incurred by any indemnitee in advance of the final disposition of a proceeding shall be made only upon receipt by the Company of an undertaking, by or on behalf of such indemnitee, to repay all amounts so advanced unless it shall ultimately be determined that such indemnitee is entitled to be indemnified under this subsection or otherwise. The Company may, by action of the Board of Directors, provide for indemnification and advancement of expenses to employees and agents of the Company with the same scope and effect as the foregoing indemnification of Directors and officers.

(ii) Right of Claimant to Bring Suit. If a claim under Section 13(i) is not paid in full by the Company within thirty (30) days after a written request has been received by the Company, the claimant may at any time thereafter apply to a court for an award of indemnification by the Company for the unpaid amount of the claim and, if successful on the merits or otherwise in connection with any proceeding, or in the defense of any claim, issue or matter therein, the claimant shall be entitled also to be paid by the Company any and all expenses incurred or suffered in connection with such proceeding. Except as otherwise provided by law, it shall be a defense to any such action (other than an action brought to enforce a claim for the advancement of expenses incurred in connection with any proceeding where the required undertaking, if any, has been tendered to the Company) that the claimant has not met the standard of conduct which makes it permissible under the New Jersey Business Corporation Act for the Company to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Company. Neither the failure of the Company (including its Board of Directors, independent legal counsel or its stockholders) to have made a determination prior to the commencement of such proceeding that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the New Jersey Business Corporation Act, nor an actual determination by the Company (including its Board of Directors, independent legal counsel or its stockholders) that the claimant has not met such applicable standard of conduct, nor the termination of any proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent, shall be a defense to the action or create a presumption that the claimant has not met the applicable standard of conduct.

(iii) Non-Exclusivity of Rights. The right to indemnification and advancement of expenses provided by or granted pursuant to this Section 13 shall not exclude or be exclusive of any other rights to which any person may be entitled under a certificate of incorporation, by-law, agreement, vote of stockholders or otherwise, provided that no indemnification shall be made to or on behalf of such person if a judgment or other final adjudication adverse to such person establishes that such person has not met the applicable standard of conduct required to be met under the New Jersey Business Corporation Act.

(iv) Insurance. The Company may purchase and maintain insurance on behalf of any director, officer, employee or agent of the Company or another company, partnership, joint venture, trust, employee benefit plan or other enterprise against any expenses incurred in any proceeding and any liabilities asserted against him/her by reason of such person being or having been such a director, officer, employee or agent, whether or not the Company would have the power to indemnify such person against such expenses and liabilities under the provisions of this Section 13 or otherwise.

GENERAL COUNSEL

Section 14. The Board of Directors shall annually appoint a General Counsel of the Company whose duty it shall be to afford and communicate to the officers, Directors and committees, in writing or otherwise, whenever requested, such counsel, legal advice and information as may be requested to guide them in the discharge and performance of their duties.

FISCAL YEAR

Section 15. The fiscal year of the Company shall be fixed by resolution of the Board of Directors.

11

SIGNATURES

Section 16. All checks issued by the Company shall bear the signatures or facsimile signatures of at least two (2) persons designated by the Board of Directors.

All other notes, drafts, orders for the payment of money and all other documents requiring the signature of an officer or officers of the Company shall be signed by such officer or officers or such other person or persons as the Board of Directors may from time to time designate.

BOOKS OF THE COMPANY

Section 17. No stockholders, other than an officer or Director, shall have any right to inspect any account or book or document of the Company except as such right may be conferred by law or authorized by the Board of Directors after evidence satisfactory to the Board of Directors is presented that such inspection is desired for a proper purpose.

AMENDMENTS

Section 18. Notwithstanding any other provision contained in these By-Laws to the contrary, Sections 7A and 7B and this Section 18 of these By-Laws may be altered, amended, supplemented or repealed only by the affirmative vote of 66-2/3% or more of the voting power of all of the shares of the Company entitled to vote generally in the election of Directors, voting together as a single class.

Subject to the foregoing, these By-Laws may be altered, amended, supplemented or repealed and new By-Laws may be adopted by the Board of Directors at any meeting, provided that ten (10) days' notice, in writing has been given to each Director of any proposed alteration, amendment, supplemental repeal or adoption. The affirmative vote of a majority of the whole Board of Directors shall be necessary to accomplish any proposed alteration, amendment, supplement, repeal or adoption. Any By-Law contained in these By-Laws may be altered, amended, supplemented, repealed or adopted without such previous notice by the vote of three-fourths (3/4ths) of the whole Board of Directors.

12

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:	November 3, 2022	By: /s/ John J. Marchioni
		John J. Marchioni
		Chairperson of the Board, 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:	November 3, 2022	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 September 30, 2022 (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:	November 3, 2022	By: /s/ John J. Marchioni
		John J. Marchioni
		Chairperson of the Board, 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 September 30, 2022 (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:	November 3, 2022	By: /s/ Mark A. Wilcox
		Mark A. Wilcox
		Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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		60,275,170
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
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	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Fixed income securities, held-to-maturity - at carrying value	$ 33,008	$ 28,850
Less: allowance for credit losses	0	(65)
Fixed income securities, held-to-maturity, net of allowance for credit losses	33,008	28,785
Fixed income securities, available-for-sale - at fair value	6,472,100	6,709,976
Commercial mortgage loans - at carrying value	145,209	95,795
Less: allowance for credit losses	0	0
Commercial mortgage loans, net of allowance for credit losses	145,209	95,795
Equity securities - at fair value	183,868	335,537
Short-term investments	269,302	447,863
Other investments	432,624	409,032
Total investments (Note 4 and 5)	7,536,111	8,026,988
Cash	538	455
Restricted cash	8,495	44,608
Accrued investment income	54,024	48,247
Premiums receivable	1,128,673	958,787
Less: allowance for credit losses (Note 6)	(15,200)	(13,600)
Premiums receivable, net of allowance for credit losses	1,113,473	945,187
Reinsurance recoverable, gross	714,731	601,668
Less: allowance for credit losses (Note 7)	(1,600)	(1,600)
Reinsurance recoverable, net of allowance for credit losses	713,131	600,068
Prepaid reinsurance premiums	178,708	183,007
Current federal income tax	24,565	772
Deferred federal income tax	164,557	0
Property and equipment - at cost, net of accumulated depreciation and amortization	85,333	82,053
Deferred policy acquisition costs	370,925	326,915
Goodwill	7,849	7,849
Other assets	262,772	195,240
Total assets	10,520,481	10,461,389
Liabilities
Reserve for loss and loss expense (Note 8)	4,965,277	4,580,903
Unearned premiums	2,022,240	1,803,207
Long-term debt	505,151	506,050
Deferred federal income tax	0	13,413
Accrued salaries and benefits	112,227	121,057
Other liabilities	488,053	453,874
Total liabilities	8,092,948	7,478,504
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 - 2022 and 2021	200,000	200,000
Common stock of $2 par value per share: Authorized shares 360,000,000; Issued: 104,778,828 - 2022; 104,450,916 - 2021	209,558	208,902
Additional paid-in capital	486,239	464,347
Retained earnings	2,683,763	2,603,472
Accumulated other comprehensive (loss) income (Note 11)	(525,011)	115,099
Treasury Stock, at cost (shares: 44,505,337 - 2022; 44,266,534 - 2021)	(627,016)	(608,935)
Total stockholders' equity	2,427,533	2,982,885
Commitments and contingencies
Total liabilities and stockholders' equity	$ 10,520,481	$ 10,461,389
Preferred Stock [Member]
Preferred stock, Par or Stated Value (in dollars per share)	$ 0	$ 0

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Net premiums earned	$ 853,879	$ 767,247	$ 2,500,601	$ 2,232,725
Net investment income earned	63,889	93,032	206,713	246,479
Net realized and unrealized investment (losses) gains	(25,681)	177	(108,913)	15,353
Other income	2,933	4,588	7,499	14,912
Total revenues	895,020	865,044	2,605,900	2,509,469
Expenses:
Loss and loss expense incurred	547,826	505,269	1,566,930	1,340,293
Amortization of deferred policy acquisition costs	179,048	160,868	522,186	464,276
Other insurance expenses	102,806	94,759	298,310	278,531
Interest expense	7,179	7,242	21,599	21,967
Corporate expenses	5,522	4,270	24,442	22,936
Total expenses	842,381	772,408	2,433,467	2,128,003
Income before federal income tax	52,639	92,636	172,433	381,466
Federal income tax expense:
Current	14,813	18,878	41,682	79,319
Deferred	(4,699)	53	(7,624)	(2,711)
Total federal income tax expense	10,114	18,931	34,058	76,608
Net income	42,525	73,705	138,375	304,858
Preferred stock dividends	2,300	2,300	6,900	7,053
Net Income available to common stockholders	$ 40,225	$ 71,405	$ 131,475	$ 297,805
Earnings per common share:
Earnings per common share - net income available to common stockholders - Basic	$ 0.67	$ 1.19	$ 2.18	$ 4.95
Earnings per common share - net income available to common stockholders - Diluted	$ 0.66	$ 1.18	$ 2.16	$ 4.92

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income	$ 42,525	$ 73,705	$ 138,375	$ 304,858
Unrealized holding losses arising during period	(149,803)	(27,875)	(532,744)	(81,402)
Unrealized losses on securities with credit loss recognized in earnings	(53,946)	(1,851)	(179,803)	(2,906)
Amounts reclassified into net income: Held-to-maturity securities	1	1	2	(3)
Amounts reclassified into net income: Net realized losses (gains) on disposals and intent-to-sell AFS securities	11,246	(1,024)	38,233	(501)
Amounts reclassified into net income: Credit loss expense	3,532	1,054	33,214	3,207
Total Unrealized Losses on Investment Securities	(188,970)	(29,695)	(641,098)	(81,605)
Amount reclassified into net income: Net actuarial loss, Net	329	548	988	1,643
Total defined benefit pension and post-retirement plans, Net	329	548	988	1,643
Other Comprehensive loss	(188,641)	(29,147)	(640,110)	(79,962)
Comprehensive loss (income)	$ (146,116)	$ 44,558	$ (501,735)	$ 224,896

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional paid-in capital [Member]	Retained Earnings [Member]	Accumulated other comprehensive income (loss) [Member]	Treasury stock [Member]
Preferred Stock, Shares Outstanding	8,000
Beginning of period at Dec. 31, 2020		$ 200,000	$ 208,066	$ 438,985	$ 2,271,537	$ 220,186	$ (599,885)
Issuance of preferred stock		0
Dividend reinvestment plan			34	1,261
Stock purchase and compensation plans			678	17,897
Net income	$ 304,858				304,858
Dividends to preferred stockholders					(7,053)
Dividends to common stockholders					(45,532)
Other comprehensive loss	(79,962)					(79,962)
Acquisition of treasury stock - share repurchase authorization							(3,404)
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans							(5,570)
End of period at Sep. 30, 2021	$ 2,922,096	$ 200,000	208,778	458,143	2,523,810	140,224	(608,859)
Dividends declared per share to preferred stockholders	$ 881.67
Dividends declared per share to common stockholders	$ 0.75
Issuance of preferred stock, shares		0
Common stock, shares outstanding, beginning of period at Dec. 31, 2020	59,905,803
Dividend reinvestment plan, shares	17,152
Stock purchase and compensation plan, shares	339,061
Acquisition of treasury stock, share repurchase authorization, shares	(52,781)
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans, shares	(85,700)
Common stock, shares outstanding, end of period at Sep. 30, 2021	60,123,535
Preferred Stock, Shares Outstanding	8,000
Beginning of period at Jun. 30, 2021		$ 200,000	208,742	454,459	2,467,596	169,371	(608,801)
Issuance of preferred stock		0
Dividend reinvestment plan			10	416
Stock purchase and compensation plans			26	3,268
Net income	$ 73,705				73,705
Dividends to preferred stockholders					(2,300)
Dividends to common stockholders					(15,191)
Other comprehensive loss	(29,147)					(29,147)
Acquisition of treasury stock - share repurchase authorization							0
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans							(58)
End of period at Sep. 30, 2021	$ 2,922,096	$ 200,000	208,778	458,143	2,523,810	140,224	(608,859)
Dividends declared per share to preferred stockholders	$ 287.50
Dividends declared per share to common stockholders	$ 0.25
Issuance of preferred stock, shares		0
Common stock, shares outstanding, beginning of period at Jun. 30, 2021	60,106,236
Dividend reinvestment plan, shares	5,096
Stock purchase and compensation plan, shares	12,946
Acquisition of treasury stock, share repurchase authorization, shares	0
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans, shares	(743)
Common stock, shares outstanding, end of period at Sep. 30, 2021	60,123,535
Preferred Stock, Shares Outstanding	8,000
Preferred Stock, Shares Outstanding	8,000
Beginning of period at Dec. 31, 2021	$ 2,982,885	$ 200,000	208,902	464,347	2,603,472	115,099	(608,935)
Issuance of preferred stock		0
Dividend reinvestment plan			34	1,325
Stock purchase and compensation plans			622	20,567
Net income	138,375				138,375
Dividends to preferred stockholders					(6,900)
Dividends to common stockholders					(51,184)
Other comprehensive loss	(640,110)					(640,110)
Acquisition of treasury stock - share repurchase authorization	(12,400)						(12,423)
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans							(5,658)
End of period at Sep. 30, 2022	$ 2,427,533	$ 200,000	209,558	486,239	2,683,763	(525,011)	(627,016)
Dividends declared per share to preferred stockholders	$ 862.50
Dividends declared per share to common stockholders	$ 0.84
Issuance of preferred stock, shares		0
Common stock, shares outstanding, beginning of period at Dec. 31, 2021	60,184,382
Dividend reinvestment plan, shares	17,152
Stock purchase and compensation plan, shares	310,760
Acquisition of treasury stock, share repurchase authorization, shares	(165,159)
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans, shares	(73,644)
Common stock, shares outstanding, end of period at Sep. 30, 2022	60,273,491
Preferred Stock, Shares Outstanding	8,000
Beginning of period at Jun. 30, 2022		$ 200,000	209,506	481,380	2,660,584	(336,370)	(621,010)
Issuance of preferred stock		0
Dividend reinvestment plan			11	438
Stock purchase and compensation plans			41	4,421
Net income	$ 42,525				42,525
Dividends to preferred stockholders					(2,300)
Dividends to common stockholders					(17,046)
Other comprehensive loss	(188,641)					(188,641)
Acquisition of treasury stock - share repurchase authorization							(5,931)
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans							(75)
End of period at Sep. 30, 2022	$ 2,427,533	$ 200,000	$ 209,558	$ 486,239	$ 2,683,763	$ (525,011)	$ (627,016)
Dividends declared per share to preferred stockholders	$ 287.50
Dividends declared per share to common stockholders	$ 0.28
Issuance of preferred stock, shares		0
Common stock, shares outstanding, beginning of period at Jun. 30, 2022	60,327,734
Dividend reinvestment plan, shares	5,647
Stock purchase and compensation plan, shares	20,073
Acquisition of treasury stock, share repurchase authorization, shares	(79,100)
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans, shares	(863)
Common stock, shares outstanding, end of period at Sep. 30, 2022	60,273,491
Preferred Stock, Shares Outstanding	8,000

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating Activities
Net income	$ 138,375	$ 304,858
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	34,350	40,706
Stock-based compensation expense	15,123	13,431
Undistributed gains of equity method investments	(12,971)	(65,215)
Distributions in excess of current year income of equity method investments	33,365	2,750
Net realized and unrealized losses (gains)	108,913	(15,353)
Loss on disposal of fixed assets	0	50
Changes in assets and liabilities:
Increase in reserve for loss and loss expense, net of reinsurance recoverable	271,311	251,260
Increase in unearned premiums, net of prepaid reinsurance	223,332	211,564
Increase in net federal income taxes	(31,607)	(17,866)
Increase in premiums receivable	(168,286)	(148,817)
Increase in deferred policy acquisition costs	(44,010)	(45,417)
Increase in accrued investment income	(5,936)	(1,249)
Decrease in accrued salaries and benefits	(8,830)	(1,160)
Increase in other assets	(31,241)	(22,045)
(Decrease) increase in other liabilities	(36,444)	35,806
Net Cash Provided by Operating Activities	485,444	543,303
Investing Activities
Purchases of fixed income securities, held-to-maturity	(6,692)	(11,250)
Purchases of fixed income securities, available-for-sale	(2,183,013)	(1,660,798)
Purchases of commercial mortgage loans	(57,289)	(38,129)
Purchases of equity securities	(21,044)	(82,223)
Purchases of other investments	(45,495)	(63,661)
Purchases of short-term investments	(3,123,086)	(3,443,597)
Sales of fixed income securities, available-for-sale	986,367	384,586
Proceeds from commercial mortgage loans	7,875	442
Sale of short-term investments	3,302,140	3,497,243
Redemption and maturities of fixed income securities, held-to-maturity	2,508	2,735
Redemption and maturities of fixed income securities, available-for-sale	539,680	910,741
Sales of Equity Securities	155,670	85,373
Sales of other investments	2,156	5,377
Distributions from other investments	11,114	10,524
Purchases of property and equipment	(21,758)	(15,123)
Net Cash Used in Investing Activities	(450,867)	(417,760)
Financing Activities
Dividends to preferred stockholders	(6,900)	(7,053)
Dividends to common stockholders	(49,307)	(43,756)
Acquisition of treasury stock	(18,081)	(8,974)
Net proceeds from stock purchase and compensation plans	5,500	4,575
Preferred stock issued, net of issuance costs	0	(479)
Proceeds from borrowings	35,000	0
Repayments of borrowings	(35,000)	(50,000)
Repayments of finance lease obligations	(1,819)	(298)
Net Cash used in Financing Activities	(70,607)	(105,985)
Net (decrease) increase in cash and restricted cash	(36,030)	19,558
Cash and restricted cash, beginning of period	45,063	15,231
Cash and restricted cash, end of period	$ 9,033	$ 34,789

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Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Fixed income securities, held-to-maturity, fair value	$ 31,482	$ 29,460
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(52,337)	(9,724)
Commercial mortgage loans, fair value	136,652	97,598
Fixed income securities, available-for-sale, amortized cost	7,107,011	6,490,753
Equity Securities, cost	188,964	308,840
Property and equipment, accumulated depreciation and amortization	$ 271,563	$ 253,427
Preferred Stock, Shares Outstanding	8,000	8,000
Preferred Stock [Member]
Preferred stock, Par or Stated Value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	8,000	8,000
Preferred Stock, Shares Outstanding	8,000	8,000
Preferred Stock, Liquidation Preference (in dollars per share)	$ 25,000	$ 25,000
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	104,778,828	104,450,916
Treasury stock [Member]
Treasury stock, shares	44,505,337	44,266,534

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Basis of Presentation	9 Months Ended
	Sep. 30, 2022
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 (i) United States ("U.S.") generally accepted accounting principles (“GAAP”), and (ii) the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. These require management 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 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 third quarters ended September 30, 2022 (“Third Quarter 2022”) and September 30, 2021 (“Third Quarter 2021”), and the nine-month periods ended September 30, 2022 ("Nine Months 2022") and September 30, 2021 ("Nine Months 2021"). Our Financial Statements do not include all information and disclosures required by GAAP and the SEC for audited annual financial statements. Because interim period results of operations are not necessarily indicative of full-year results, our Financial Statements should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Annual Report”) filed with the SEC.

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Accounting Pronouncements

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Accounting Pronouncements

Adoption of Accounting Pronouncements 

There was no adoption of accounting pronouncements in Third Quarter and Nine Months 2022.

Pronouncements to be effective in the future

In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 GAAP guidance 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, but we do not anticipate its adoption to have a material impact on our financial condition and results of operations.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual sales restriction on an equity security is not considered when determining the security's fair value. This ASU was issued to eliminate diversity in practice by clarifying that contractual arrangements restricting an entity's ability to sell the security for a certain period of time is a characteristic of the reporting entity and should not be contemplated when determining the security's fair value. ASU 2022-03 requires new disclosures that provide investors with information about the restriction, including the nature and remaining duration of the restriction. The ASU is effective for annual periods beginning after December 15, 2023, including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact of this guidance.

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Statements of Cash Flows

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Information [Abstract]

Statements of Cash Flows

Statements of Cash Flows

Supplemental cash flow information was as follows:

	Nine Months ended September 30,
($ in thousands)	2022		2021
Cash paid (received) during the period for:
Interest	$	22,699	23,278
Federal income tax	61,000		93,000
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	6,096		6,480
Operating cash flows from financing leases	33		5
Financing cash flows from finance leases	1,819		298
Non-cash items:
Corporate actions related to fixed income securities, available-for-sale ("AFS")1	32,546		50,501
Corporate actions related to equity securities1	—		527
Conversion of AFS fixed income securities to equity securities	1,463		—
Assets acquired under finance lease arrangements	650		183
Assets acquired under operating lease arrangements	15,514		273
Non-cash purchase of property and equipment	—		—

1Examples of corporate actions include like-kind 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)	September 30, 2022		December 31, 2021
Cash	$	538	455
Restricted cash	8,495		44,608
Cash and restricted cash shown in the Consolidated Statements of Cash Flows	$	9,033	45,063

Amounts in restricted cash represent cash received from the National Flood Insurance Program ("NFIP") that can only be used to pay flood claims under the Write Your Own program. Restricted cash was elevated at December 31, 2021, primarily to pay Hurricane Ida flood claims.

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Investments

9 Months Ended

Sep. 30, 2022

Investments [Abstract]

Investments

Investments

(a) Information regarding our AFS securities as of September 30, 2022 and December 31, 2021, were as follows:

September 30, 2022
($ 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	$	168,340	—	6	(20,115)	148,231
Foreign government	16,060		(320)	—	(1,960)	13,780
Obligations of states and political subdivisions	1,031,937		(1,311)	141	(63,137)	967,630
Corporate securities	2,535,367		(36,970)	1,222	(234,983)	2,264,636
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	1,581,097		(3,114)	1,732	(112,292)	1,467,423
Residential mortgage-backed securities ("RMBS")	1,130,752		(10,603)	764	(104,856)	1,016,057
Commercial mortgage-backed securities ("CMBS")	643,458		(19)	102	(49,198)	594,343
Total AFS fixed income securities	$	7,107,011	(52,337)	3,967	(586,541)	6,472,100

December 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	$	127,974	—	3,629	(1,145)	130,458
Foreign government	15,420		(46)	609	(123)	15,860
Obligations of states and political subdivisions	1,121,422		(137)	68,258	(235)	1,189,308
Corporate securities	2,478,348		(6,682)	106,890	(4,953)	2,573,603
CLO and other ABS	1,343,687		(939)	14,350	(6,284)	1,350,814
RMBS	756,280		(1,909)	24,813	(2,932)	776,252
CMBS	647,622		(11)	27,752	(1,682)	673,681
Total AFS fixed income securities	$	6,490,753	(9,724)	246,301	(17,354)	6,709,976

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

Quarter ended September 30, 2022
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	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	$	265	40	—	15	—	—	320
Obligations of states and political subdivisions	1,206		313	—	(181)	(27)	—	1,311
Corporate securities	35,072		4,061	—	633	(2,733)	(63)	36,970
CLO and other ABS	3,623		35	—	(527)	(17)	—	3,114
RMBS	10,616		35	—	46	(94)	—	10,603
CMBS	18		—	—	1	—	—	19
Total AFS fixed income securities	$	50,800	4,484	—	(13)	(2,871)	(63)	52,337

Quarter ended September 30, 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	$	49	—	(2)	—	—	47
Obligations of states and political subdivisions	38		61	—	—	—	99
Corporate securities	3,477		1,307	64	(49)	(80)	4,719
CLO and other ABS	1,399		46	(517)	(2)	—	926
RMBS	1,034		248	125	(44)	—	1,363
CMBS	14		4	(3)	—	—	15
Total AFS fixed income securities	$	6,011	1,666	(333)	(95)	(80)	7,169

Nine Months ended September 30, 2022
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	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	$	46	292	—	(4)	(14)	—	320
Obligations of states and political subdivisions	137		1,371	—	(6)	(191)	—	1,311
Corporate securities	6,682		33,096	—	4,384	(5,925)	(1,267)	36,970
CLO and other ABS	939		1,580	—	623	(28)	—	3,114
RMBS	1,909		225	8,318	473	(322)	—	10,603
CMBS	11		18	—	(10)	—	—	19
Total AFS fixed income securities	$	9,724	36,582	8,318	5,460	(6,480)	(1,267)	52,337

Nine Months ended September 30, 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	47	(1)	—	—	47
Obligations of states and political subdivisions	4		84	11	—	—	99
Corporate securities	2,782		3,413	(765)	(570)	(141)	4,719
CLO and other ABS	592		573	(219)	(20)	—	926
RMBS	561		1,018	(95)	(121)	—	1,363
CMBS	29		4	(18)	—	—	15
Total AFS fixed income securities	$	3,969	5,139	(1,087)	(711)	(141)	7,169

During Third Quarter and Nine Months 2022 and 2021, we had no write-offs or recoveries of our AFS fixed income securities.

For information on our methodology and significant inputs used to measure expected credit losses, 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 2021 Annual Report. Accrued interest on AFS securities was $52.8 million as of September 30, 2022, and $46.3 million as of December 31, 2021. We did not record any material write-offs of accrued interest during 2022 and 2021.

(b) Quantitative information about unrealized losses on our AFS portfolio follows:

September 30, 2022	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	$	138,136	(16,003)	9,819	(4,112)	147,955	(20,115)
Foreign government	12,069		(1,501)	1,711	(459)	13,780	(1,960)
Obligations of states and political subdivisions	921,980		(62,494)	3,886	(643)	925,866	(63,137)
Corporate securities	2,037,738		(217,328)	61,315	(17,655)	2,099,053	(234,983)
CLO and other ABS	1,107,292		(82,751)	269,902	(29,541)	1,377,194	(112,292)
RMBS	937,823		(93,871)	45,296	(10,985)	983,119	(104,856)
CMBS	538,907		(40,359)	52,313	(8,839)	591,220	(49,198)
Total AFS fixed income securities	$	5,693,945	(514,307)	444,242	(72,234)	6,138,187	(586,541)

December 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	$	34,857	(746)	7,827	(399)	42,684	(1,145)
Foreign government	2,000		(84)	1,061	(39)	3,061	(123)
Obligations of states and political subdivisions	25,837		(235)	—	—	25,837	(235)
Corporate securities	300,549		(4,903)	2,520	(50)	303,069	(4,953)
CLO and other ABS	663,976		(4,934)	53,368	(1,350)	717,344	(6,284)
RMBS	236,010		(2,931)	20	(1)	236,030	(2,932)
CMBS	112,899		(1,016)	20,326	(666)	133,225	(1,682)
Total AFS fixed income securities	$	1,376,128	(14,849)	85,122	(2,505)	1,461,250	(17,354)

We currently do not intend to sell any of the securities summarized in the tables above, nor will we be required to sell any of them. The increase in gross unrealized losses as of September 30, 2022, compared to December 31, 2021, was driven by an increase in benchmark U.S. Treasury rates and a widening of credit spreads, with the increase in interest rates having the most significant impact. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report, we have concluded that no allowance for credit loss is required on these balances beyond the allowance for credit loss recorded as of September 30, 2022. This conclusion reflects our current judgment about the financial position and future prospects of the entities that issued the investment security and underlying collateral.

(c) AFS and held-to-maturity ("HTM") fixed income securities at September 30, 2022, by contractual maturity are shown below. The maturities of mortgage-backed securities were calculated using each security's estimated average life. 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	$	322,189	6,577	6,595
Due after one year through five years	2,826,402		4,955	4,907
Due after five years through 10 years	2,410,981		21,476	19,980
Due after 10 years	912,528		—	—
Total fixed income securities	$	6,472,100	33,008	31,482

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

Other Investments	September 30, 2022				December 31, 2021
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	284,538	126,446	410,984	273,070	99,734	372,804
Private credit	55,398		91,196	146,594	63,138	92,674	155,812
Real assets	27,885		29,103	56,988	23,524	22,579	46,103
Total alternative investments	367,821		246,745	614,566	359,732	214,987	574,719
Other securities	64,803		—	64,803	49,300	—	49,300
Total other investments	$	432,624	246,745	679,369	409,032	214,987	624,019

1In addition to the amounts in this table, previously recognized tax credits are subject to the risk of recapture. We do not consider the risk of recapture to be significant and therefore do not reflect this risk in the Maximum Exposure to Loss column in this table.

We are contractually committed to make additional investments up to the remaining commitments stated above. We did not provide any non-contractual financial support during 2022 or 2021.

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 total net income reported by these investments to all of their investors for the three and nine months ended June 30, 2022 and June 30, 2021, and (ii) the portion of these results that are included in our Third Quarter and Nine Months 2022 and 2021 results:

Income Statement Information	Quarter ended September 30,			Nine Months ended September 30,
($ in millions)	2022		2021	2022		2021
Net investment income	$	205.6	60.4	$	612.0	550.3
Realized gains	1,983.5		1,857.6	10,964.9		4,026.2
Net change in unrealized appreciation	(3,188.9)		11,188.2	(1,973.0)		20,767.9
Net income	$	(999.8)	13,106.2	$	9,603.9	25,344.4
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income	$	(5.6)	42.8	$	22.8	92.9

(e) We have pledged certain AFS fixed income securities as collateral related to our borrowing relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, we had certain securities on deposit with various state and regulatory agencies at September 30, 2022 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral.

The following table summarizes the market value of these securities at September 30, 2022:

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	18.9	18.9
Obligations of states and political subdivisions	—		—	3.6	3.6
RMBS	60.5		29.7	—	90.2
CMBS	4.8		10.0	—	14.8
Total pledged as collateral	$	65.3	39.7	22.5	127.5

(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 agencies, as of September 30, 2022, or December 31, 2021.

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

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Fixed income securities	$	68,236	51,683	$	184,305	157,114
Commercial mortgage loans ("CMLs")	1,600		683	3,762		1,892
Equity securities	2,604		2,955	7,661		8,425
Short-term investments	1,152		64	1,660		204
Other investments	(5,469)		42,865	22,896		93,158
Investment expenses	(4,234)		(5,218)	(13,571)		(14,314)
Net investment income earned	$	63,889	93,032	$	206,713	246,479

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

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Gross gains on sales	$	7,094	7,151	$	23,843	12,906
Gross losses on sales	(19,668)		(2,505)	(52,573)		(8,787)
Net realized (losses) gains on disposals	(12,574)		4,646	(28,730)		4,119
Net unrealized (losses) gains on equity securities	(7,777)		(3,111)	(31,791)		15,830
Net credit loss expense on fixed income securities, AFS	(4,471)		(1,334)	(42,042)		(4,059)
Net credit loss benefit (expense) on fixed income securities, HTM	54		6	62		(54)
Losses on securities for which we have the intent to sell	(913)		(30)	(6,412)		(483)
Net realized and unrealized (losses) gains	$	(25,681)	177	$	(108,913)	15,353

Net realized and unrealized investment gains decreased $25.9 million in Third Quarter 2022 and $124.3 million in Nine Months 2022 compared to the same prior-year periods, primarily driven by (i) a decrease in valuations reflecting the current public equities market, (ii) active trading of our fixed income securities in an effort to opportunistically increase yield given the rising interest rate environment, and (iii) higher credit loss expense on our AFS fixed income securities portfolio.

Net unrealized losses and gains recognized in income on equity securities, as reflected in the table above, included the following:

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Unrealized (losses) gains recognized in income on equity securities:
On securities remaining in our portfolio at end of period	$	(5,832)	269	$	(16,334)	14,767
On securities sold in period	(1,945)		(3,380)	(15,457)		1,063
Total unrealized (losses) gains recognized in income on equity securities	$	(7,777)	(3,111)	$	(31,791)	15,830

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Fair Value Measurements

9 Months Ended

Sep. 30, 2022

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 fair values of our financial liabilities as of September 30, 2022, and December 31, 2021:

	September 30, 2022			December 31, 2021
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	49,920	50,225	49,917	63,719
6.70% Senior Notes	99,536		97,098	99,520	127,574
5.375% Senior Notes	294,400		255,216	294,330	395,652
3.03% borrowings from FHLBI	60,000		57,025	60,000	64,126
Subtotal long-term debt	503,856		459,564	503,767	651,071
Unamortized debt issuance costs	(2,986)			(3,167)
Finance lease obligations	4,281			5,450
Total long-term debt	$	505,151		506,050

For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at September 30, 2022, and December 31, 2021:

September 30, 2022			Fair Value Measurements Using
($ in thousands)	Assets  Measured 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)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	148,231	75,858	72,373	—
Foreign government	13,780		—	13,780	—
Obligations of states and political subdivisions	967,630		—	960,919	6,711
Corporate securities	2,264,636		—	2,098,812	165,824
CLO and other ABS	1,467,423		—	1,341,751	125,672
RMBS	1,016,057		—	1,016,057	—
CMBS	594,343		—	593,970	373
Total AFS fixed income securities	6,472,100		75,858	6,097,662	298,580
Equity securities:
Common stock1	182,138		81,029	—	—
Preferred stock	1,730		1,730	—	—
Total equity securities	183,868		82,759	—	—
Short-term investments	269,302		268,982	320	—
Total assets measured at fair value	$	6,925,270	427,599	6,097,982	298,580

December 31, 2021			Fair Value Measurements Using
($ in thousands)	Assets  Measured 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)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	130,458	60,615	69,843	—
Foreign government	15,860		—	15,860	—
Obligations of states and political subdivisions	1,189,308		—	1,181,563	7,745
Corporate securities	2,573,603		—	2,459,476	114,127
CLO and other ABS	1,350,814		—	1,225,905	124,909
RMBS	776,252		—	776,007	245
CMBS	673,681		—	669,425	4,256
Total AFS fixed income securities	6,709,976		60,615	6,398,079	251,282
Equity securities:
Common stock1	333,449		249,846	—	—
Preferred stock	2,088		2,088	—	—
Total equity securities	335,537		251,934	—	—
Short-term investments	447,863		442,723	5,140	—
Total assets measured at fair value	$	7,493,376	755,272	6,403,219	251,282

1Investments amounting to $101.1 million at September 30, 2022, and $83.6 million at December 31, 2021, were measured at fair value using the net asset value per share (or its practical expedient) and have not been 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 in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

The following tables provide a summary of Level 3 changes in Nine Months 2022 and Nine Months 2021:

September 30, 2022
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	RMBS	CMBS	Total
Fair value, December 31, 2021	$	7,745	114,127	124,909	245	4,256	251,282
Total net (losses) gains for the period included in:
Other comprehensive income ("OCI")	(879)		(23,847)	(11,436)	(17)	(477)	(36,656)
Net realized and unrealized (losses) gains	(155)		(2,345)	(771)	—	(7)	(3,278)
Net investment income earned	—		49	127	—	46	222
Purchases	—		74,327	44,167	—	—	118,494
Sales	—		—	—	—	—	—
Issuances	—		—	—	—	—	—
Settlements	—		(8,663)	(6,678)	(11)	(15)	(15,367)
Transfers into Level 3	—		19,214	—	—	—	19,214
Transfers out of Level 3	—		(7,038)	(24,646)	(217)	(3,430)	(35,331)
Fair value, September 30, 2022	$	6,711	165,824	125,672	—	373	298,580
Change in unrealized losses for the period included in earnings for assets held at period end	(155)		(2,330)	(771)	—	(7)	(3,263)
Change in unrealized losses for the period included in OCI for assets held at period end	(879)		(23,852)	(11,395)	(17)	(477)	(36,620)

September 30, 2021
($ in thousands)	Obligation of state 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	9		2,607	206	2,822
Net realized and unrealized (losses) gains	—		(185)	(35)	(220)
Net investment income earned	—		14	9	23
Purchases	—		43,833	19,041	62,874
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		(210)	(1,750)	(1,960)
Transfers into Level 3	5,101		981	3,226	9,308
Transfers out of Level 3	—		(7,454)	(14,643)	(22,097)
Fair value, September 30, 2021	$	8,004	110,286	62,429	180,719
Change in unrealized (losses) gains for the period included in earnings for assets held at period end	—		(185)	(35)	(220)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	9		2,607	206	2,822

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at September 30, 2022, and December 31, 2021:

September 30, 2022
($ in thousands)	Assets Measured at Fair Value		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Internal valuations:
Corporate securities	$	77,424	Discounted Cash Flow	Illiquidity Spread	(4.4)% - 19.6%	1.8%
CLO and other ABS	40,883		Discounted Cash Flow	Illiquidity Spread	0.01% - 8.0%	1.9%
Total internal valuations	118,307
Other1	180,273
Total Level 3 securities	$	298,580

December 31, 2021
($ in thousands)	Assets Measured at Fair Value		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Internal valuations:
Corporate securities	$	54,135	Discounted Cash Flow	Illiquidity Spread	0.3% - 3.0%	1.2%
CLO and other ABS	34,903		Discounted Cash Flow	Illiquidity Spread	0.7% - 8.0%	2.1%
Total internal valuations	89,038
Other1	162,244
Total Level 3 securities	$	251,282

1Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency into the inputs used to develop the valuations. The quantitative details of these unobservable inputs is neither provided to us, nor reasonably available to us, and therefore are not included in the tables above.

For the securities in the tables above valued using a discounted cash flow analysis, we apply an illiquidity spread in our determination of fair value. An increase in this assumption would result in a lower fair value measurement.

The following tables provide quantitative information about our financial assets and liabilities that were not measured at fair value, but were disclosed as such at September 30, 2022, and December 31, 2021:

September 30, 2022			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	$	3,424	—	3,424	—
Corporate securities	28,058		—	28,058	—
Total HTM fixed income securities	$	31,482	—	31,482	—
CMLs	$	136,652	—	—	136,652
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	50,225	—	50,225	—
6.70% Senior Notes	97,098		—	97,098	—
5.375% Senior Notes	255,216		—	255,216	—
3.03% borrowings from FHLBI	57,025		—	57,025	—
Total long-term debt	$	459,564	—	459,564	—

December 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	$	3,576	—	3,576	—
Corporate securities	25,884		—	25,884	—
Total HTM fixed income securities	$	29,460	—	29,460	—
CMLs	$	97,598	—	—	97,598
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	63,719	—	63,719	—
6.70% Senior Notes	127,574		—	127,574	—
5.375% Senior Notes	395,652		—	395,652	—
3.03% borrowings from FHLBI	64,126		—	64,126	—
Total long-term debt	$	651,071	—	651,071	—

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Allowance for Credit Losses on Premiums Receivable (Notes)

9 Months Ended

Sep. 30, 2022

Premiums Receivable [Abstract]

Allowance for Credit Losses on 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 indicated periods:

	Quarter ended September 30,				Nine Months ended September 30,
($ in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	14,900	$	18,300	$	13,600	$	21,000
Current period change for expected credit losses	2,250		180		4,335		1,721
Write-offs charged against the allowance for credit losses	(2,349)		(2,154)		(3,787)		(6,554)
Recoveries	399		174		1,052		333
Allowance for credit losses, end of period	$	15,200	$	16,500	$	15,200	$	16,500

In Third Quarter 2022, we recognized an additional allowance for credit losses on premiums receivable of $2.6 million, excluding the impact of write-offs. The additional allowance consisted of a reserve of $2.7 million on 2022 premiums based on our historical write-off percentages and assumptions, partially offset by a $0.1 million allowance reduction on 2021 and older policies.

In Nine Months 2022, we recognized an additional allowance for credit losses on premiums receivable of $5.4 million, excluding the impact of write-offs. The additional allowance consisted of a reserve of $7.0 million on 2022 premiums based on our historical write-off percentages and assumptions, partially offset by a $1.6 million allowance reduction on 2021 and older policies, primarily impacted by the COVID-19 pandemic, for which the credit loss did not fully materialize.

In Third Quarter 2021, we recognized expected credit losses, excluding the impact of write-offs, of $1.2 million on 2021 policies based on our historical write-off percentages and assumptions, partially offset by a $0.8 million allowance reduction on older policies. In Nine Months 2021, we recognized expected credit losses, excluding the impact of write-offs, of $6.3 million on 2021 policies based on our historical write-off percentages and assumptions, partially offset by a $4.2 million allowance reduction on older policies.

For a discussion of the methodology used to evaluate our estimate of expected credit losses on premiums receivable, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

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Reinsurance

9 Months Ended

Sep. 30, 2022

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 September 30, 2022, and December 31, 2021:

	September 30, 2022
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	45,356	$	—	$	45,356
A+	360,085		920		361,005
A	98,860		176		99,036
A-	2,301		90		2,391
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	506,602	$	1,186	$	507,788
Non-rated reinsurers
Federal and state pools	$	202,989	$	—	$	202,989
Other than federal and state pools	3,676		278		3,954
Total non-rated reinsurers	$	206,665	$	278	$	206,943
Total reinsurance recoverable, gross	$	713,267	$	1,464	$	714,731
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	713,131

	December 31, 2021
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	38,601	$	9	$	38,610
A+	339,857		1,520		341,377
A	95,675		1,227		96,902
A-	3,209		145		3,354
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	477,342	$	2,901	$	480,243
Non-rated reinsurers
Federal and state pools	$	116,378	$	—	$	116,378
Other than federal and state pools	4,597		450		5,047
Total non-rated reinsurers	$	120,975	$	450	$	121,425
Total reinsurance recoverable, gross	$	598,317	$	3,351	$	601,668
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	600,068

The $86.6 million increase in "Federal and state pools" as of September 30, 2022, compared to December 31, 2021, was primarily due to NFIP reserves recorded in Third Quarter 2022 for flood losses in Florida and surrounding states as a result of Hurricane Ian, which are 100% ceded to the NFIP.

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

($ in thousands)	Quarter ended September 30,			Nine Months ended September 30,
	2022		2021	2022		2021
Balance at beginning of period	$	1,600	1,777	$	1,600	1,777
Current period change for expected credit losses	—		(182)	—		(182)
Write-offs charged against the allowance for credit losses	—		—	—		—
Recoveries	—		—	—		—
Allowance for credit losses, end of period	$	1,600	1,595	$	1,600	1,595

For a discussion of the methodology used to evaluate our estimate of expected credit losses on our reinsurance recoverable balance, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

The following table lists direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the indicated periods. For more information about reinsurance, refer to Note 9. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2021 Annual Report.

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Premiums written:
Direct	$	1,037,612	932,752	$	3,089,166	2,796,296
Assumed	9,531		7,136	23,398		17,541
Ceded	(143,749)		(126,982)	(388,631)		(369,548)
Net	$	903,394	812,906	$	2,723,933	2,444,289
Premiums earned:
Direct	$	984,981	877,620	$	2,872,008	2,568,445
Assumed	8,514		6,304	21,523		16,391
Ceded	(139,616)		(116,677)	(392,930)		(352,111)
Net	$	853,879	767,247	$	2,500,601	2,232,725
Loss and loss expenses incurred:
Direct	$	732,568	655,483	$	1,821,069	1,557,063
Assumed	6,443		4,143	15,846		10,807
Ceded	(191,185)		(154,357)	(269,985)		(227,577)
Net	$	547,826	505,269	$	1,566,930	1,340,293

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Reserve for Loss and Loss Expense

9 Months Ended

Sep. 30, 2022

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 for beginning and ending reserve balances:

	Nine Months ended September 30,
($ in thousands)	2022		2021
Gross reserve for loss and loss expense, at beginning of period	$	4,580,903	4,260,355
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of period	578,641		554,269
Net reserve for loss and loss expense, at beginning of period	4,002,262		3,706,086
Incurred loss and loss expense for claims occurring in the:
Current year	1,610,940		1,408,240
Prior years	(44,010)		(67,947)
Total incurred loss and loss expense	1,566,930		1,340,293
Paid loss and loss expense for claims occurring in the:
Current year	513,118		430,288
Prior years	779,438		675,782
Total paid loss and loss expense	1,292,556		1,106,070
Net reserve for loss and loss expense, at end of period	4,276,636		3,940,309
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	688,641		670,031
Gross reserve for loss and loss expense at end of period	$	4,965,277	4,610,340

Prior year reserve development in Nine Months 2022 was favorable by $44.0 million, consisting of $48.0 million of favorable casualty reserve development, partially offset by $4.0 million of unfavorable property reserve development. The favorable casualty reserve development included $40.0 million in our workers compensation line of business, $10.0 million in our bonds line of business, $8.0 million in our businessowners' policies line of business, and $5.0 million in our general liability line of business, partially offset by $15.0 million of unfavorable casualty reserve development in our commercial automobile line of business.

Prior year reserve development in Nine Months 2021 was favorable by $67.9 million, primarily consisting of $66.0 million of casualty reserve development. The favorable casualty reserve development included $29.0 million in our general liability line of business, $28.0 million in our workers compensation line of business, $7.0 million in our Excess and Surplus (E&S") casualty lines of business, and $2.0 million in our businessowners' policies line of business.

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Segment Information

9 Months Ended

Sep. 30, 2022

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 based 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 Investments segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses. No segment has a separate investment portfolio or allocated assets.

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

Revenue by Segment	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Standard Commercial Lines:
Net premiums earned:
General liability	$	225,302	205,904	$	667,912	596,717
Commercial automobile	207,129		185,610	599,340		535,519
Commercial property	128,268		111,981	371,892		320,904
Workers compensation	81,996		78,318	250,178		230,845
Businessowners' policies	32,130		23,025	93,682		80,963
Bonds	11,094		8,850	32,136		26,436
Other	6,518		5,883	19,003		17,082
Miscellaneous income	2,444		4,168	6,141		13,670
Total Standard Commercial Lines revenue	694,881		623,739	2,040,284		1,822,136
Standard Personal Lines:
Net premiums earned:
Personal automobile	40,746		40,575	120,414		122,977
Homeowners	32,619		30,633	95,436		91,801
Other	2,273		2,154	5,768		5,698
Miscellaneous income	489		420	1,358		1,242
Total Standard Personal Lines revenue	76,127		73,782	222,976		221,718
E&S Lines:
Net premiums earned:
Casualty lines	59,640		52,983	170,305		144,458
Property lines	26,164		21,331	74,535		59,325
Total E&S Lines revenue	85,804		74,314	244,840		203,783
Investments:
Net investment income	63,889		93,032	206,713		246,479
Net realized and unrealized investment (losses) gains	(25,681)		177	(108,913)		15,353
Total Investments revenue	38,208		93,209	97,800		261,832
Total revenues	$	895,020	865,044	$	2,605,900	2,509,469

Income Before and After Federal Income Tax	Quarter ended September 30,				Nine Months ended September 30,
($ in thousands)	2022			2021	2022		2021
Standard Commercial Lines:
Underwriting income, before federal income tax	$	22,501		17,413	$	111,593	154,850
Underwriting income, after federal income tax	17,776			13,756	88,158		122,332
Combined ratio	96.8		%	97.2	94.5		91.4
ROE contribution	3.1			2.1	4.7		6.2
Standard Personal Lines:
Underwriting (loss) income, before federal income tax	$	(1,385)		(11,146)	$	(7,232)	2,193
Underwriting (loss) income, after federal income tax	(1,094)			(8,805)	(5,713)		1,732
Combined ratio	101.8		%	115.2	103.3		99.0
ROE contribution	(0.2)			(1.3)	(0.3)		0.1
E&S Lines:
Underwriting income, before federal income tax	$	6,016		4,672	$	16,313	7,494
Underwriting income, after federal income tax	4,753			3,691	12,887		5,920
Combined ratio	93.0		%	93.7	93.3		96.3
ROE contribution	0.8			0.5	0.7		0.3
Investments:
Net investment income earned	$	63,889		93,032	$	206,713	246,479
Net realized and unrealized investment (losses) gains	(25,681)			177	(108,913)		15,353
Total investments segment income, before federal income tax	38,208			93,209	97,800		261,832
Tax on investments segment income	6,964			18,379	17,136		51,229
Total investments segment income, after federal income tax	$	31,244		74,830	$	80,664	210,603
ROE contribution of after-tax net investment income earned	8.9			11.0	8.9		10.1

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Underwriting income (loss)
Standard Commercial Lines	$	22,501	17,413	$	111,593	154,850
Standard Personal Lines	(1,385)		(11,146)	(7,232)		2,193
E&S Lines	6,016		4,672	16,313		7,494
Investment income	38,208		93,209	97,800		261,832
Total all segments	65,340		104,148	218,474		426,369
Interest expense	(7,179)		(7,242)	(21,599)		(21,967)
Corporate expenses	(5,522)		(4,270)	(24,442)		(22,936)
Income, before federal income tax	$	52,639	92,636	$	172,433	381,466
Preferred stock dividends	(2,300)		(2,300)	(6,900)		(7,053)
Income available to common stockholders, before federal income tax	$	50,339	90,336	$	165,533	374,413

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Retirement Plans

9 Months Ended

Sep. 30, 2022

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 2021 Annual Report.

The following tables provide information about the Pension Plan:

	Pension Plan
	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Net Periodic Pension Cost (Benefit):
Interest cost	$	2,486	2,148	$	7,458	6,445
Expected return on plan assets	(5,537)		(5,744)	(16,611)		(17,232)
Amortization of unrecognized net actuarial loss	366		626	1,099		1,876
Total net periodic pension cost (benefit)1	$	(2,685)	(2,970)	$	(8,054)	(8,911)

1The 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
	Nine Months ended September 30,
	2022		2021
Weighted-Average Expense Assumptions:
Discount rate	2.98	%	2.68	%
Effective interest rate for calculation of interest cost	2.48		2.06
Expected return on plan assets	5.00		5.40

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Comprehensive Income

9 Months Ended

Sep. 30, 2022

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

Comprehensive Income

Comprehensive Income

The components of comprehensive income, both gross and net of tax, for Third Quarter and Nine Months 2022 and 2021 are as follows:

Third Quarter 2022
($ in thousands)	Gross		Tax	Net
Net income	$	52,639	10,114	42,525
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(189,622)		(39,819)	(149,803)
Unrealized losses on securities with credit loss recognized in earnings	(68,287)		(14,341)	(53,946)
Amounts reclassified into net income:
HTM securities	1		—	1
Net realized losses on disposals and intent-to-sell AFS securities	14,235		2,989	11,246
Credit loss expense	4,471		939	3,532
Total unrealized losses on investment securities	(239,202)		(50,232)	(188,970)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	417		88	329
Total defined benefit pension and post-retirement plans	417		88	329
Other comprehensive loss	(238,785)		(50,144)	(188,641)
Comprehensive loss	$	(186,146)	(40,030)	(146,116)
Third Quarter 2021
($ in thousands)	Gross		Tax	Net
Net income	$	92,636	18,931	73,705
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(35,285)		(7,410)	(27,875)
Unrealized losses on securities with credit loss recognized in earnings	(2,343)		(492)	(1,851)
Amounts reclassified into net income:
HTM securities	1		—	1
Net realized gains on disposals and intent-to-sell AFS securities	(1,296)		(272)	(1,024)
Credit loss expense	1,334		280	1,054
Total unrealized losses on investment securities	(37,589)		(7,894)	(29,695)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	693		145	548
Total defined benefit pension and post-retirement plans	693		145	548
Other comprehensive loss	(36,896)		(7,749)	(29,147)
Comprehensive income	$	55,740	11,182	44,558

Nine Months 2022
($ in thousands)	Gross		Tax	Net
Net income	$	172,433	34,058	138,375
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(674,357)		(141,613)	(532,744)
Unrealized losses on securities with credit loss recognized in earnings	(227,599)		(47,796)	(179,803)
Amounts reclassified into net income:
HTM securities	2		—	2
Net realized losses on disposals and intent-to-sell AFS securities	48,396		10,163	38,233
Credit loss expense	42,042		8,828	33,214
Total unrealized losses on investment securities	(811,516)		(170,418)	(641,098)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,251		263	988
Total defined benefit pension and post-retirement plans	1,251		263	988
Other comprehensive loss	(810,265)		(170,155)	(640,110)
Comprehensive loss	$	(637,832)	(136,097)	(501,735)
Nine Months 2021
($ in thousands)	Gross		Tax	Net
Net income	$	381,466	76,608	304,858
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(103,040)		(21,638)	(81,402)
Unrealized losses on securities with credit loss recognized in earnings	(3,678)		(772)	(2,906)
Amounts reclassified into net income:
HTM securities	(4)		(1)	(3)
Net realized gains on disposals and intent-to-sell AFS securities	(634)		(133)	(501)
Credit loss expense	4,059		852	3,207
Total unrealized losses on investment securities	(103,297)		(21,692)	(81,605)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	2,079		436	1,643
Total defined benefit pension and post-retirement plans	2,079		436	1,643
Other comprehensive loss	(101,218)		(21,256)	(79,962)
Comprehensive income	$	280,248	55,352	224,896

The balances of, and changes in, each component of accumulated other comprehensive income ("AOCI") (net of taxes) as of September 30, 2022, were as follows:

September 30, 2022	Net Unrealized (Losses) Gains on Investment Securities					Defined Benefit Pension and Post-Retirement Plans	Total AOCI
($ in thousands)	Credit Loss Related1		HTM Related	All Other	Investments Subtotal
Balance, December 31, 2021	$	(4,287)	(3)	185,170	180,880	(65,781)	115,099
OCI before reclassifications	(179,803)		—	(532,744)	(712,547)	—	(712,547)
Amounts reclassified from AOCI	33,214		2	38,233	71,449	988	72,437
Net current period OCI	(146,589)		2	(494,511)	(641,098)	988	(640,110)
Balance, September 30, 2022	$	(150,876)	(1)	(309,341)	(460,218)	(64,793)	(525,011)

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

The reclassifications out of AOCI were as follows:

	Quarter ended September 30,			Nine Months ended September 30,			Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2022		2021	2022		2021
HTM related
Unrealized losses (gains) on HTM disposals	$	1	(1)	$	1	(1)	Net realized and unrealized investment (losses) gains
Amortization of net unrealized losses (gains) on HTM securities	—		2	1		(3)	Net investment income earned
	1		1	2		(4)	Income before federal income tax
	—		—	—		1	Total federal income tax expense
	1		1	2		(3)	Net income
Net realized losses (gains) on disposals and intent-to-sell AFS securities
Net realized losses (gains) on disposals and intent-to-sell AFS securities	14,235		(1,296)	48,396		(634)	Net realized and unrealized investment (losses) gains
	14,235		(1,296)	48,396		(634)	Income before federal income tax
	(2,989)		272	(10,163)		133	Total federal income tax expense
	11,246		(1,024)	38,233		(501)	Net income
Credit loss related
Credit loss expense	4,471		1,334	42,042		4,059	Net realized and unrealized investment (losses) gains
	4,471		1,334	42,042		4,059	Income before federal income tax
	(939)		(280)	(8,828)		(852)	Total federal income tax expense
	3,532		1,054	33,214		3,207	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	90		159	270		478	Loss and loss expense incurred
	327		534	981		1,601	Other insurance expenses
Total defined benefit pension and post-retirement life	417		693	1,251		2,079	Income before federal income tax
	(88)		(145)	(263)		(436)	Total federal income tax expense
	329		548	988		1,643	Net income
Total reclassifications for the period	$	15,108	579	$	72,437	4,346	Net income

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Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Treasury Stock	EquityOn December 2, 2020, we announced that our Board of Directors authorized a $100 million share repurchase program, with no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock. 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. In Nine Months 2022, we repurchased 165,159 shares of our common stock under our share repurchase program, of which 79,100 were repurchased in Third Quarter 2022. The total cost of repurchases, including commissions, was $12.4 million in Nine Months 2022. We had $84.2 million of remaining capacity under our share repurchase program as of September 30, 2022.

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Earnings Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Common Share

The following table presents the calculations of earnings per common share ("EPS") on a basic and diluted basis:

	Quarter ended September 30,			Nine months ended September 30,
(in thousands, except per share amounts)	2022		2021	2022	2021
Net income available to common stockholders:	$	40,225	71,405	131,475	297,805
Weighted average common shares outstanding:
Weighted average common shares outstanding - basic	60,404		60,231	60,409	60,161
Effect of dilutive securities - stock compensation plans	431		355	420	348
Weighted average common shares outstanding - diluted	60,835		60,586	60,829	60,509
EPS:
Basic	$	0.67	1.19	2.18	4.95
Diluted	0.66		1.18	2.16	4.92

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Litigation

9 Months Ended

Sep. 30, 2022

Loss Contingency, Information about Litigation Matters [Abstract]

Litigation

Litigation

As of September 30, 2022, 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 by establishing unpaid loss and loss expense reserves. Considering potential losses and defense costs reserves, we expect that any potential ultimate liability for ordinary course claims litigation will not be material to our consolidated financial condition, results of operations, or cash flows.

All our commercial property and businessowners' policies require direct physical loss of or damage to property by a covered cause of loss. All our standard lines commercial property and businessowners' policies also include or attach an exclusion that states 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. To date, insurers (including us) have prevailed in the majority of these suits, with most decisions holding that COVID-19 does not cause physical loss of or damage to property and the Virus Exclusion is valid. Nonetheless, these two matters continue to be litigated in trial courts, are subject to review by state and federal appellate courts, and their ultimate outcome cannot be assured.

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

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Statements of Cash Flows (Tables)

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Information [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

	Nine Months ended September 30,
($ in thousands)	2022		2021
Cash paid (received) during the period for:
Interest	$	22,699	23,278
Federal income tax	61,000		93,000
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	6,096		6,480
Operating cash flows from financing leases	33		5
Financing cash flows from finance leases	1,819		298
Non-cash items:
Corporate actions related to fixed income securities, available-for-sale ("AFS")1	32,546		50,501
Corporate actions related to equity securities1	—		527
Conversion of AFS fixed income securities to equity securities	1,463		—
Assets acquired under finance lease arrangements	650		183
Assets acquired under operating lease arrangements	15,514		273
Non-cash purchase of property and equipment	—		—

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

Schedule of Cash and Restricted Cash

($ in thousands)	September 30, 2022		December 31, 2021
Cash	$	538	455
Restricted cash	8,495		44,608
Cash and restricted cash shown in the Consolidated Statements of Cash Flows	$	9,033	45,063

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Investments (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Investments [Line Items]

Schedule of Available-for-sale Securities

September 30, 2022
($ 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	$	168,340	—	6	(20,115)	148,231
Foreign government	16,060		(320)	—	(1,960)	13,780
Obligations of states and political subdivisions	1,031,937		(1,311)	141	(63,137)	967,630
Corporate securities	2,535,367		(36,970)	1,222	(234,983)	2,264,636
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	1,581,097		(3,114)	1,732	(112,292)	1,467,423
Residential mortgage-backed securities ("RMBS")	1,130,752		(10,603)	764	(104,856)	1,016,057
Commercial mortgage-backed securities ("CMBS")	643,458		(19)	102	(49,198)	594,343
Total AFS fixed income securities	$	7,107,011	(52,337)	3,967	(586,541)	6,472,100

December 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	$	127,974	—	3,629	(1,145)	130,458
Foreign government	15,420		(46)	609	(123)	15,860
Obligations of states and political subdivisions	1,121,422		(137)	68,258	(235)	1,189,308
Corporate securities	2,478,348		(6,682)	106,890	(4,953)	2,573,603
CLO and other ABS	1,343,687		(939)	14,350	(6,284)	1,350,814
RMBS	756,280		(1,909)	24,813	(2,932)	776,252
CMBS	647,622		(11)	27,752	(1,682)	673,681
Total AFS fixed income securities	$	6,490,753	(9,724)	246,301	(17,354)	6,709,976

Debt Securities, Available-for-sale, Allowance for Credit Loss

Quarter ended September 30, 2022
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	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	$	265	40	—	15	—	—	320
Obligations of states and political subdivisions	1,206		313	—	(181)	(27)	—	1,311
Corporate securities	35,072		4,061	—	633	(2,733)	(63)	36,970
CLO and other ABS	3,623		35	—	(527)	(17)	—	3,114
RMBS	10,616		35	—	46	(94)	—	10,603
CMBS	18		—	—	1	—	—	19
Total AFS fixed income securities	$	50,800	4,484	—	(13)	(2,871)	(63)	52,337

Quarter ended September 30, 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	$	49	—	(2)	—	—	47
Obligations of states and political subdivisions	38		61	—	—	—	99
Corporate securities	3,477		1,307	64	(49)	(80)	4,719
CLO and other ABS	1,399		46	(517)	(2)	—	926
RMBS	1,034		248	125	(44)	—	1,363
CMBS	14		4	(3)	—	—	15
Total AFS fixed income securities	$	6,011	1,666	(333)	(95)	(80)	7,169

Nine Months ended September 30, 2022
($ in thousands)	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	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	$	46	292	—	(4)	(14)	—	320
Obligations of states and political subdivisions	137		1,371	—	(6)	(191)	—	1,311
Corporate securities	6,682		33,096	—	4,384	(5,925)	(1,267)	36,970
CLO and other ABS	939		1,580	—	623	(28)	—	3,114
RMBS	1,909		225	8,318	473	(322)	—	10,603
CMBS	11		18	—	(10)	—	—	19
Total AFS fixed income securities	$	9,724	36,582	8,318	5,460	(6,480)	(1,267)	52,337

Nine Months ended September 30, 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	47	(1)	—	—	47
Obligations of states and political subdivisions	4		84	11	—	—	99
Corporate securities	2,782		3,413	(765)	(570)	(141)	4,719
CLO and other ABS	592		573	(219)	(20)	—	926
RMBS	561		1,018	(95)	(121)	—	1,363
CMBS	29		4	(18)	—	—	15
Total AFS fixed income securities	$	3,969	5,139	(1,087)	(711)	(141)	7,169

During Third Quarter and Nine Months 2022 and 2021, we had no write-offs or recoveries of our AFS fixed income securities.

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

September 30, 2022	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	$	138,136	(16,003)	9,819	(4,112)	147,955	(20,115)
Foreign government	12,069		(1,501)	1,711	(459)	13,780	(1,960)
Obligations of states and political subdivisions	921,980		(62,494)	3,886	(643)	925,866	(63,137)
Corporate securities	2,037,738		(217,328)	61,315	(17,655)	2,099,053	(234,983)
CLO and other ABS	1,107,292		(82,751)	269,902	(29,541)	1,377,194	(112,292)
RMBS	937,823		(93,871)	45,296	(10,985)	983,119	(104,856)
CMBS	538,907		(40,359)	52,313	(8,839)	591,220	(49,198)
Total AFS fixed income securities	$	5,693,945	(514,307)	444,242	(72,234)	6,138,187	(586,541)

December 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	$	34,857	(746)	7,827	(399)	42,684	(1,145)
Foreign government	2,000		(84)	1,061	(39)	3,061	(123)
Obligations of states and political subdivisions	25,837		(235)	—	—	25,837	(235)
Corporate securities	300,549		(4,903)	2,520	(50)	303,069	(4,953)
CLO and other ABS	663,976		(4,934)	53,368	(1,350)	717,344	(6,284)
RMBS	236,010		(2,931)	20	(1)	236,030	(2,932)
CMBS	112,899		(1,016)	20,326	(666)	133,225	(1,682)
Total AFS fixed income securities	$	1,376,128	(14,849)	85,122	(2,505)	1,461,250	(17,354)

Schedule of Fixed Maturity Securities By Contractual Maturities

	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	322,189	6,577	6,595
Due after one year through five years	2,826,402		4,955	4,907
Due after five years through 10 years	2,410,981		21,476	19,980
Due after 10 years	912,528		—	—
Total fixed income securities	$	6,472,100	33,008	31,482

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

Other Investments	September 30, 2022				December 31, 2021
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss1	Carrying Value	Remaining Commitment	Maximum Exposure to Loss1
Alternative Investments
Private equity	$	284,538	126,446	410,984	273,070	99,734	372,804
Private credit	55,398		91,196	146,594	63,138	92,674	155,812
Real assets	27,885		29,103	56,988	23,524	22,579	46,103
Total alternative investments	367,821		246,745	614,566	359,732	214,987	574,719
Other securities	64,803		—	64,803	49,300	—	49,300
Total other investments	$	432,624	246,745	679,369	409,032	214,987	624,019

1In addition to the amounts in this table, previously recognized tax credits are subject to the risk of recapture. We do not consider the risk of recapture to be significant and therefore do not reflect this risk in the Maximum Exposure to Loss column in this table.

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

Income Statement Information	Quarter ended September 30,			Nine Months ended September 30,
($ in millions)	2022		2021	2022		2021
Net investment income	$	205.6	60.4	$	612.0	550.3
Realized gains	1,983.5		1,857.6	10,964.9		4,026.2
Net change in unrealized appreciation	(3,188.9)		11,188.2	(1,973.0)		20,767.9
Net income	$	(999.8)	13,106.2	$	9,603.9	25,344.4
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income	$	(5.6)	42.8	$	22.8	92.9

Schedule of Securities Pledged As Collateral

($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	18.9	18.9
Obligations of states and political subdivisions	—		—	3.6	3.6
RMBS	60.5		29.7	—	90.2
CMBS	4.8		10.0	—	14.8
Total pledged as collateral	$	65.3	39.7	22.5	127.5

Schedule of Pre-Tax Net Investment Income Earned

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Fixed income securities	$	68,236	51,683	$	184,305	157,114
Commercial mortgage loans ("CMLs")	1,600		683	3,762		1,892
Equity securities	2,604		2,955	7,661		8,425
Short-term investments	1,152		64	1,660		204
Other investments	(5,469)		42,865	22,896		93,158
Investment expenses	(4,234)		(5,218)	(13,571)		(14,314)
Net investment income earned	$	63,889	93,032	$	206,713	246,479

Schedule of realized and unrealized gains (losses) on securities

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Gross gains on sales	$	7,094	7,151	$	23,843	12,906
Gross losses on sales	(19,668)		(2,505)	(52,573)		(8,787)
Net realized (losses) gains on disposals	(12,574)		4,646	(28,730)		4,119
Net unrealized (losses) gains on equity securities	(7,777)		(3,111)	(31,791)		15,830
Net credit loss expense on fixed income securities, AFS	(4,471)		(1,334)	(42,042)		(4,059)
Net credit loss benefit (expense) on fixed income securities, HTM	54		6	62		(54)
Losses on securities for which we have the intent to sell	(913)		(30)	(6,412)		(483)
Net realized and unrealized (losses) gains	$	(25,681)	177	$	(108,913)	15,353

Unrealized Gain (Loss) on Equity Securities

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Unrealized (losses) gains recognized in income on equity securities:
On securities remaining in our portfolio at end of period	$	(5,832)	269	$	(16,334)	14,767
On securities sold in period	(1,945)		(3,380)	(15,457)		1,063
Total unrealized (losses) gains recognized in income on equity securities	$	(7,777)	(3,111)	$	(31,791)	15,830

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

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

Schedule of Carrying Values and Estimated Fair Values of Financial Liabilities

	September 30, 2022			December 31, 2021
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	49,920	50,225	49,917	63,719
6.70% Senior Notes	99,536		97,098	99,520	127,574
5.375% Senior Notes	294,400		255,216	294,330	395,652
3.03% borrowings from FHLBI	60,000		57,025	60,000	64,126
Subtotal long-term debt	503,856		459,564	503,767	651,071
Unamortized debt issuance costs	(2,986)			(3,167)
Finance lease obligations	4,281			5,450
Total long-term debt	$	505,151		506,050

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

September 30, 2022			Fair Value Measurements Using
($ in thousands)	Assets  Measured 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)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	148,231	75,858	72,373	—
Foreign government	13,780		—	13,780	—
Obligations of states and political subdivisions	967,630		—	960,919	6,711
Corporate securities	2,264,636		—	2,098,812	165,824
CLO and other ABS	1,467,423		—	1,341,751	125,672
RMBS	1,016,057		—	1,016,057	—
CMBS	594,343		—	593,970	373
Total AFS fixed income securities	6,472,100		75,858	6,097,662	298,580
Equity securities:
Common stock1	182,138		81,029	—	—
Preferred stock	1,730		1,730	—	—
Total equity securities	183,868		82,759	—	—
Short-term investments	269,302		268,982	320	—
Total assets measured at fair value	$	6,925,270	427,599	6,097,982	298,580

December 31, 2021			Fair Value Measurements Using
($ in thousands)	Assets  Measured 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)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	130,458	60,615	69,843	—
Foreign government	15,860		—	15,860	—
Obligations of states and political subdivisions	1,189,308		—	1,181,563	7,745
Corporate securities	2,573,603		—	2,459,476	114,127
CLO and other ABS	1,350,814		—	1,225,905	124,909
RMBS	776,252		—	776,007	245
CMBS	673,681		—	669,425	4,256
Total AFS fixed income securities	6,709,976		60,615	6,398,079	251,282
Equity securities:
Common stock1	333,449		249,846	—	—
Preferred stock	2,088		2,088	—	—
Total equity securities	335,537		251,934	—	—
Short-term investments	447,863		442,723	5,140	—
Total assets measured at fair value	$	7,493,376	755,272	6,403,219	251,282

1Investments amounting to $101.1 million at September 30, 2022, and $83.6 million at December 31, 2021, were measured at fair value using the net asset value per share (or its practical expedient) and have not been 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 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

September 30, 2022
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	RMBS	CMBS	Total
Fair value, December 31, 2021	$	7,745	114,127	124,909	245	4,256	251,282
Total net (losses) gains for the period included in:
Other comprehensive income ("OCI")	(879)		(23,847)	(11,436)	(17)	(477)	(36,656)
Net realized and unrealized (losses) gains	(155)		(2,345)	(771)	—	(7)	(3,278)
Net investment income earned	—		49	127	—	46	222
Purchases	—		74,327	44,167	—	—	118,494
Sales	—		—	—	—	—	—
Issuances	—		—	—	—	—	—
Settlements	—		(8,663)	(6,678)	(11)	(15)	(15,367)
Transfers into Level 3	—		19,214	—	—	—	19,214
Transfers out of Level 3	—		(7,038)	(24,646)	(217)	(3,430)	(35,331)
Fair value, September 30, 2022	$	6,711	165,824	125,672	—	373	298,580
Change in unrealized losses for the period included in earnings for assets held at period end	(155)		(2,330)	(771)	—	(7)	(3,263)
Change in unrealized losses for the period included in OCI for assets held at period end	(879)		(23,852)	(11,395)	(17)	(477)	(36,620)

September 30, 2021
($ in thousands)	Obligation of state 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	9		2,607	206	2,822
Net realized and unrealized (losses) gains	—		(185)	(35)	(220)
Net investment income earned	—		14	9	23
Purchases	—		43,833	19,041	62,874
Sales	—		—	—	—
Issuances	—		—	—	—
Settlements	—		(210)	(1,750)	(1,960)
Transfers into Level 3	5,101		981	3,226	9,308
Transfers out of Level 3	—		(7,454)	(14,643)	(22,097)
Fair value, September 30, 2021	$	8,004	110,286	62,429	180,719
Change in unrealized (losses) gains for the period included in earnings for assets held at period end	—		(185)	(35)	(220)
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	9		2,607	206	2,822

Schedule of quantitative information about significant unobservable inputs utilized in the fair value measurements of Level 3 assets.

September 30, 2022
($ in thousands)	Assets Measured at Fair Value		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Internal valuations:
Corporate securities	$	77,424	Discounted Cash Flow	Illiquidity Spread	(4.4)% - 19.6%	1.8%
CLO and other ABS	40,883		Discounted Cash Flow	Illiquidity Spread	0.01% - 8.0%	1.9%
Total internal valuations	118,307
Other1	180,273
Total Level 3 securities	$	298,580

December 31, 2021
($ in thousands)	Assets Measured at Fair Value		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Internal valuations:
Corporate securities	$	54,135	Discounted Cash Flow	Illiquidity Spread	0.3% - 3.0%	1.2%
CLO and other ABS	34,903		Discounted Cash Flow	Illiquidity Spread	0.7% - 8.0%	2.1%
Total internal valuations	89,038
Other1	162,244
Total Level 3 securities	$	251,282

1Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency into the inputs used to develop the valuations. The quantitative details of these unobservable inputs is neither provided to us, nor reasonably available to us, and therefore are not included in the tables above.

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

September 30, 2022			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	$	3,424	—	3,424	—
Corporate securities	28,058		—	28,058	—
Total HTM fixed income securities	$	31,482	—	31,482	—
CMLs	$	136,652	—	—	136,652
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	50,225	—	50,225	—
6.70% Senior Notes	97,098		—	97,098	—
5.375% Senior Notes	255,216		—	255,216	—
3.03% borrowings from FHLBI	57,025		—	57,025	—
Total long-term debt	$	459,564	—	459,564	—

December 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	$	3,576	—	3,576	—
Corporate securities	25,884		—	25,884	—
Total HTM fixed income securities	$	29,460	—	29,460	—
CMLs	$	97,598	—	—	97,598
Financial Liabilities
Long-term debt:
7.25% Senior Notes	$	63,719	—	63,719	—
6.70% Senior Notes	127,574		—	127,574	—
5.375% Senior Notes	395,652		—	395,652	—
3.03% borrowings from FHLBI	64,126		—	64,126	—
Total long-term debt	$	651,071	—	651,071	—

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Allowance for Credit Losses on Premiums Receivable (Tables)

9 Months Ended

Sep. 30, 2022

Premiums Receivable [Abstract]

Allowance for Credit Losses on Premiums Receivable [Table Text Block]

	Quarter ended September 30,				Nine Months ended September 30,
($ in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	14,900	$	18,300	$	13,600	$	21,000
Current period change for expected credit losses	2,250		180		4,335		1,721
Write-offs charged against the allowance for credit losses	(2,349)		(2,154)		(3,787)		(6,554)
Recoveries	399		174		1,052		333
Allowance for credit losses, end of period	$	15,200	$	16,500	$	15,200	$	16,500

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Reinsurance (Tables)

9 Months Ended

Sep. 30, 2022

Reinsurance Disclosures [Abstract]

Reinsurance Recoverable, Credit Quality Indicator [Table Text Block]

	September 30, 2022
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	45,356	$	—	$	45,356
A+	360,085		920		361,005
A	98,860		176		99,036
A-	2,301		90		2,391
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	506,602	$	1,186	$	507,788
Non-rated reinsurers
Federal and state pools	$	202,989	$	—	$	202,989
Other than federal and state pools	3,676		278		3,954
Total non-rated reinsurers	$	206,665	$	278	$	206,943
Total reinsurance recoverable, gross	$	713,267	$	1,464	$	714,731
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	713,131

	December 31, 2021
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	38,601	$	9	$	38,610
A+	339,857		1,520		341,377
A	95,675		1,227		96,902
A-	3,209		145		3,354
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	477,342	$	2,901	$	480,243
Non-rated reinsurers
Federal and state pools	$	116,378	$	—	$	116,378
Other than federal and state pools	4,597		450		5,047
Total non-rated reinsurers	$	120,975	$	450	$	121,425
Total reinsurance recoverable, gross	$	598,317	$	3,351	$	601,668
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	600,068

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

($ in thousands)	Quarter ended September 30,			Nine Months ended September 30,
	2022		2021	2022		2021
Balance at beginning of period	$	1,600	1,777	$	1,600	1,777
Current period change for expected credit losses	—		(182)	—		(182)
Write-offs charged against the allowance for credit losses	—		—	—		—
Recoveries	—		—	—		—
Allowance for credit losses, end of period	$	1,600	1,595	$	1,600	1,595

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

	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Premiums written:
Direct	$	1,037,612	932,752	$	3,089,166	2,796,296
Assumed	9,531		7,136	23,398		17,541
Ceded	(143,749)		(126,982)	(388,631)		(369,548)
Net	$	903,394	812,906	$	2,723,933	2,444,289
Premiums earned:
Direct	$	984,981	877,620	$	2,872,008	2,568,445
Assumed	8,514		6,304	21,523		16,391
Ceded	(139,616)		(116,677)	(392,930)		(352,111)
Net	$	853,879	767,247	$	2,500,601	2,232,725
Loss and loss expenses incurred:
Direct	$	732,568	655,483	$	1,821,069	1,557,063
Assumed	6,443		4,143	15,846		10,807
Ceded	(191,185)		(154,357)	(269,985)		(227,577)
Net	$	547,826	505,269	$	1,566,930	1,340,293

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Reserve for Loss and Loss Expense (Tables)

9 Months Ended

Sep. 30, 2022

Insurance Loss Reserves [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

	Nine Months ended September 30,
($ in thousands)	2022		2021
Gross reserve for loss and loss expense, at beginning of period	$	4,580,903	4,260,355
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of period	578,641		554,269
Net reserve for loss and loss expense, at beginning of period	4,002,262		3,706,086
Incurred loss and loss expense for claims occurring in the:
Current year	1,610,940		1,408,240
Prior years	(44,010)		(67,947)
Total incurred loss and loss expense	1,566,930		1,340,293
Paid loss and loss expense for claims occurring in the:
Current year	513,118		430,288
Prior years	779,438		675,782
Total paid loss and loss expense	1,292,556		1,106,070
Net reserve for loss and loss expense, at end of period	4,276,636		3,940,309
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	688,641		670,031
Gross reserve for loss and loss expense at end of period	$	4,965,277	4,610,340

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Revenue By Segment

Revenue by Segment	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Standard Commercial Lines:
Net premiums earned:
General liability	$	225,302	205,904	$	667,912	596,717
Commercial automobile	207,129		185,610	599,340		535,519
Commercial property	128,268		111,981	371,892		320,904
Workers compensation	81,996		78,318	250,178		230,845
Businessowners' policies	32,130		23,025	93,682		80,963
Bonds	11,094		8,850	32,136		26,436
Other	6,518		5,883	19,003		17,082
Miscellaneous income	2,444		4,168	6,141		13,670
Total Standard Commercial Lines revenue	694,881		623,739	2,040,284		1,822,136
Standard Personal Lines:
Net premiums earned:
Personal automobile	40,746		40,575	120,414		122,977
Homeowners	32,619		30,633	95,436		91,801
Other	2,273		2,154	5,768		5,698
Miscellaneous income	489		420	1,358		1,242
Total Standard Personal Lines revenue	76,127		73,782	222,976		221,718
E&S Lines:
Net premiums earned:
Casualty lines	59,640		52,983	170,305		144,458
Property lines	26,164		21,331	74,535		59,325
Total E&S Lines revenue	85,804		74,314	244,840		203,783
Investments:
Net investment income	63,889		93,032	206,713		246,479
Net realized and unrealized investment (losses) gains	(25,681)		177	(108,913)		15,353
Total Investments revenue	38,208		93,209	97,800		261,832
Total revenues	$	895,020	865,044	$	2,605,900	2,509,469

Schedule of Income Before and After Federal Income Tax

Income Before and After Federal Income Tax	Quarter ended September 30,				Nine Months ended September 30,
($ in thousands)	2022			2021	2022		2021
Standard Commercial Lines:
Underwriting income, before federal income tax	$	22,501		17,413	$	111,593	154,850
Underwriting income, after federal income tax	17,776			13,756	88,158		122,332
Combined ratio	96.8		%	97.2	94.5		91.4
ROE contribution	3.1			2.1	4.7		6.2
Standard Personal Lines:
Underwriting (loss) income, before federal income tax	$	(1,385)		(11,146)	$	(7,232)	2,193
Underwriting (loss) income, after federal income tax	(1,094)			(8,805)	(5,713)		1,732
Combined ratio	101.8		%	115.2	103.3		99.0
ROE contribution	(0.2)			(1.3)	(0.3)		0.1
E&S Lines:
Underwriting income, before federal income tax	$	6,016		4,672	$	16,313	7,494
Underwriting income, after federal income tax	4,753			3,691	12,887		5,920
Combined ratio	93.0		%	93.7	93.3		96.3
ROE contribution	0.8			0.5	0.7		0.3
Investments:
Net investment income earned	$	63,889		93,032	$	206,713	246,479
Net realized and unrealized investment (losses) gains	(25,681)			177	(108,913)		15,353
Total investments segment income, before federal income tax	38,208			93,209	97,800		261,832
Tax on investments segment income	6,964			18,379	17,136		51,229
Total investments segment income, after federal income tax	$	31,244		74,830	$	80,664	210,603
ROE contribution of after-tax net investment income earned	8.9			11.0	8.9		10.1

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

Reconciliation of Segment Results to Income Before Federal Income Tax	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Underwriting income (loss)
Standard Commercial Lines	$	22,501	17,413	$	111,593	154,850
Standard Personal Lines	(1,385)		(11,146)	(7,232)		2,193
E&S Lines	6,016		4,672	16,313		7,494
Investment income	38,208		93,209	97,800		261,832
Total all segments	65,340		104,148	218,474		426,369
Interest expense	(7,179)		(7,242)	(21,599)		(21,967)
Corporate expenses	(5,522)		(4,270)	(24,442)		(22,936)
Income, before federal income tax	$	52,639	92,636	$	172,433	381,466
Preferred stock dividends	(2,300)		(2,300)	(6,900)		(7,053)
Income available to common stockholders, before federal income tax	$	50,339	90,336	$	165,533	374,413

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Retirement Plans (Table)

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Cost

	Pension Plan
	Quarter ended September 30,			Nine Months ended September 30,
($ in thousands)	2022		2021	2022		2021
Net Periodic Pension Cost (Benefit):
Interest cost	$	2,486	2,148	$	7,458	6,445
Expected return on plan assets	(5,537)		(5,744)	(16,611)		(17,232)
Amortization of unrecognized net actuarial loss	366		626	1,099		1,876
Total net periodic pension cost (benefit)1	$	(2,685)	(2,970)	$	(8,054)	(8,911)

1The 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
	Nine Months ended September 30,
	2022		2021
Weighted-Average Expense Assumptions:
Discount rate	2.98	%	2.68	%
Effective interest rate for calculation of interest cost	2.48		2.06
Expected return on plan assets	5.00		5.40

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Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2022

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

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

Third Quarter 2022
($ in thousands)	Gross		Tax	Net
Net income	$	52,639	10,114	42,525
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(189,622)		(39,819)	(149,803)
Unrealized losses on securities with credit loss recognized in earnings	(68,287)		(14,341)	(53,946)
Amounts reclassified into net income:
HTM securities	1		—	1
Net realized losses on disposals and intent-to-sell AFS securities	14,235		2,989	11,246
Credit loss expense	4,471		939	3,532
Total unrealized losses on investment securities	(239,202)		(50,232)	(188,970)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	417		88	329
Total defined benefit pension and post-retirement plans	417		88	329
Other comprehensive loss	(238,785)		(50,144)	(188,641)
Comprehensive loss	$	(186,146)	(40,030)	(146,116)
Third Quarter 2021
($ in thousands)	Gross		Tax	Net
Net income	$	92,636	18,931	73,705
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(35,285)		(7,410)	(27,875)
Unrealized losses on securities with credit loss recognized in earnings	(2,343)		(492)	(1,851)
Amounts reclassified into net income:
HTM securities	1		—	1
Net realized gains on disposals and intent-to-sell AFS securities	(1,296)		(272)	(1,024)
Credit loss expense	1,334		280	1,054
Total unrealized losses on investment securities	(37,589)		(7,894)	(29,695)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	693		145	548
Total defined benefit pension and post-retirement plans	693		145	548
Other comprehensive loss	(36,896)		(7,749)	(29,147)
Comprehensive income	$	55,740	11,182	44,558

Nine Months 2022
($ in thousands)	Gross		Tax	Net
Net income	$	172,433	34,058	138,375
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(674,357)		(141,613)	(532,744)
Unrealized losses on securities with credit loss recognized in earnings	(227,599)		(47,796)	(179,803)
Amounts reclassified into net income:
HTM securities	2		—	2
Net realized losses on disposals and intent-to-sell AFS securities	48,396		10,163	38,233
Credit loss expense	42,042		8,828	33,214
Total unrealized losses on investment securities	(811,516)		(170,418)	(641,098)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	1,251		263	988
Total defined benefit pension and post-retirement plans	1,251		263	988
Other comprehensive loss	(810,265)		(170,155)	(640,110)
Comprehensive loss	$	(637,832)	(136,097)	(501,735)
Nine Months 2021
($ in thousands)	Gross		Tax	Net
Net income	$	381,466	76,608	304,858
Components of OCI:
Unrealized losses on investment securities:
Unrealized holding losses during the period	(103,040)		(21,638)	(81,402)
Unrealized losses on securities with credit loss recognized in earnings	(3,678)		(772)	(2,906)
Amounts reclassified into net income:
HTM securities	(4)		(1)	(3)
Net realized gains on disposals and intent-to-sell AFS securities	(634)		(133)	(501)
Credit loss expense	4,059		852	3,207
Total unrealized losses on investment securities	(103,297)		(21,692)	(81,605)
Defined benefit pension and post-retirement plans:
Amounts reclassified into net income:
Net actuarial loss	2,079		436	1,643
Total defined benefit pension and post-retirement plans	2,079		436	1,643
Other comprehensive loss	(101,218)		(21,256)	(79,962)
Comprehensive income	$	280,248	55,352	224,896

Schedule of Components of Accumulated Other Comprehensive Income Net of Tax

September 30, 2022	Net Unrealized (Losses) Gains on Investment Securities					Defined Benefit Pension and Post-Retirement Plans	Total AOCI
($ in thousands)	Credit Loss Related1		HTM Related	All Other	Investments Subtotal
Balance, December 31, 2021	$	(4,287)	(3)	185,170	180,880	(65,781)	115,099
OCI before reclassifications	(179,803)		—	(532,744)	(712,547)	—	(712,547)
Amounts reclassified from AOCI	33,214		2	38,233	71,449	988	72,437
Net current period OCI	(146,589)		2	(494,511)	(641,098)	988	(640,110)
Balance, September 30, 2022	$	(150,876)	(1)	(309,341)	(460,218)	(64,793)	(525,011)

Schedule of Reclassifications Out Of Accumulated Other Comprehensive Income

	Quarter ended September 30,			Nine Months ended September 30,			Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2022		2021	2022		2021
HTM related
Unrealized losses (gains) on HTM disposals	$	1	(1)	$	1	(1)	Net realized and unrealized investment (losses) gains
Amortization of net unrealized losses (gains) on HTM securities	—		2	1		(3)	Net investment income earned
	1		1	2		(4)	Income before federal income tax
	—		—	—		1	Total federal income tax expense
	1		1	2		(3)	Net income
Net realized losses (gains) on disposals and intent-to-sell AFS securities
Net realized losses (gains) on disposals and intent-to-sell AFS securities	14,235		(1,296)	48,396		(634)	Net realized and unrealized investment (losses) gains
	14,235		(1,296)	48,396		(634)	Income before federal income tax
	(2,989)		272	(10,163)		133	Total federal income tax expense
	11,246		(1,024)	38,233		(501)	Net income
Credit loss related
Credit loss expense	4,471		1,334	42,042		4,059	Net realized and unrealized investment (losses) gains
	4,471		1,334	42,042		4,059	Income before federal income tax
	(939)		(280)	(8,828)		(852)	Total federal income tax expense
	3,532		1,054	33,214		3,207	Net income
Defined benefit pension and post-retirement life plans
Net actuarial loss	90		159	270		478	Loss and loss expense incurred
	327		534	981		1,601	Other insurance expenses
Total defined benefit pension and post-retirement life	417		693	1,251		2,079	Income before federal income tax
	(88)		(145)	(263)		(436)	Total federal income tax expense
	329		548	988		1,643	Net income
Total reclassifications for the period	$	15,108	579	$	72,437	4,346	Net income

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

	Quarter ended September 30,			Nine months ended September 30,
(in thousands, except per share amounts)	2022		2021	2022	2021
Net income available to common stockholders:	$	40,225	71,405	131,475	297,805
Weighted average common shares outstanding:
Weighted average common shares outstanding - basic	60,404		60,231	60,409	60,161
Effect of dilutive securities - stock compensation plans	431		355	420	348
Weighted average common shares outstanding - diluted	60,835		60,586	60,829	60,509
EPS:
Basic	$	0.67	1.19	2.18	4.95
Diluted	0.66		1.18	2.16	4.92

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Statements of Cash Flows (Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021
Interest		$ 22,699	$ 23,278
Federal income tax		61,000	93,000
Operating cash flows from operating leases		6,096	6,480
Operating cash flows from financing leases		33	5
Financing cash flows from finance leases		1,819	298
Assets acquired under finance lease arrangements		650	183
Assets acquired under operating lease arrangements		15,514	273
Non-cash purchase of property and equipment		0	0
Available-for-sale Securities
Corporate actions related to securities	[1]	32,546	50,501
Equity Securities [Member]
Corporate actions related to securities	[1]	0	527
Conversion of AFS fixed income securities to equity securities		$ 1,463	$ 0

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

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Statements of Cash Flows (Schedule of Cash and Restricted Cash) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Schedule of Cash and Restricted Cash [Line Items]
Cash	$ 538	$ 455
Restricted cash	8,495	44,608
Total cash and restricted cash shown in the Statements of Cash Flows	$ 9,033	$ 45,063	$ 34,789	$ 15,231

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Investments (Available-For-Sale Securities Disclosure) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Fixed income securities, available-for-sale, amortized cost	$ 7,107,011		$ 6,490,753
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(52,337)	$ (50,800)	(9,724)	$ (7,169)	$ (6,011)	$ (3,969)
Unrealized gains	3,967		246,301
Unrealized losses	(586,541)		(17,354)
Debt Securities, Available-for-sale, Fair Value	6,472,100		6,709,976
U.S. Government and Government Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Fixed income securities, available-for-sale, amortized cost	168,340		127,974
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	0		0
Unrealized gains	6		3,629
Unrealized losses	(20,115)		(1,145)
Debt Securities, Available-for-sale, Fair Value	148,231		130,458
Foreign Government [Member]
Debt Securities, Available-for-sale [Line Items]
Fixed income securities, available-for-sale, amortized cost	16,060		15,420
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(320)	(265)	(46)	(47)	(49)	(1)
Unrealized gains	0		609
Unrealized losses	(1,960)		(123)
Debt Securities, Available-for-sale, Fair Value	13,780		15,860
Obligations of States and Political Subdivisions [Member]
Debt Securities, Available-for-sale [Line Items]
Fixed income securities, available-for-sale, amortized cost	1,031,937		1,121,422
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(1,311)	(1,206)	(137)	(99)	(38)	(4)
Unrealized gains	141		68,258
Unrealized losses	(63,137)		(235)
Debt Securities, Available-for-sale, Fair Value	967,630		1,189,308
Corporate Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Fixed income securities, available-for-sale, amortized cost	2,535,367		2,478,348
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(36,970)	(35,072)	(6,682)	(4,719)	(3,477)	(2,782)
Unrealized gains	1,222		106,890
Unrealized losses	(234,983)		(4,953)
Debt Securities, Available-for-sale, Fair Value	2,264,636		2,573,603
Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Fixed income securities, available-for-sale, amortized cost	1,581,097		1,343,687
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(3,114)	(3,623)	(939)	(926)	(1,399)	(592)
Unrealized gains	1,732		14,350
Unrealized losses	(112,292)		(6,284)
Debt Securities, Available-for-sale, Fair Value	1,467,423		1,350,814
Residential Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Fixed income securities, available-for-sale, amortized cost	1,130,752		756,280
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(10,603)	(10,616)	(1,909)	(1,363)	(1,034)	(561)
Unrealized gains	764		24,813
Unrealized losses	(104,856)		(2,932)
Debt Securities, Available-for-sale, Fair Value	1,016,057		776,252
Commercial Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Fixed income securities, available-for-sale, amortized cost	643,458		647,622
Fixed Income Securities, Available-for-sale, Allowance for Credit Loss	(19)	$ (18)	(11)	$ (15)	$ (14)	$ (29)
Unrealized gains	102		27,752
Unrealized losses	(49,198)		(1,682)
Debt Securities, Available-for-sale, Fair Value	$ 594,343		$ 673,681

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Investments (Available-for-sale allowance for credit losses roll forward) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Period beginning balance	$ 50,800	$ 6,011	$ 9,724	$ 3,969
Current provision for securities without prior allowance	4,484	1,666	36,582	5,139
Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	0		8,318
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(13)	(333)	5,460	(1,087)
Reductions for securities sold	(2,871)	(95)	(6,480)	(711)
Reductions for securities identified as intent (or requirement) to sell during the period	(63)	(80)	(1,267)	(141)
Allowance for credit losses, Period ending balance	52,337	7,169	52,337	7,169
Foreign Government [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Period beginning balance	265	49	46	1
Current provision for securities without prior allowance	40	0	292	47
Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	0		0
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	15	(2)	(4)	(1)
Reductions for securities sold	0	0	(14)	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0	0	0
Allowance for credit losses, Period ending balance	320	47	320	47
Obligations of States and Political Subdivisions [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Period beginning balance	1,206	38	137	4
Current provision for securities without prior allowance	313	61	1,371	84
Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	0		0
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(181)	0	(6)	11
Reductions for securities sold	(27)	0	(191)	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0	0	0
Allowance for credit losses, Period ending balance	1,311	99	1,311	99
Corporate Securities [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Period beginning balance	35,072	3,477	6,682	2,782
Current provision for securities without prior allowance	4,061	1,307	33,096	3,413
Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	0		0
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	633	64	4,384	(765)
Reductions for securities sold	(2,733)	(49)	(5,925)	(570)
Reductions for securities identified as intent (or requirement) to sell during the period	(63)	(80)	(1,267)	(141)
Allowance for credit losses, Period ending balance	36,970	4,719	36,970	4,719
Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Period beginning balance	3,623	1,399	939	592
Current provision for securities without prior allowance	35	46	1,580	573
Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	0		0
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	(527)	(517)	623	(219)
Reductions for securities sold	(17)	(2)	(28)	(20)
Reductions for securities identified as intent (or requirement) to sell during the period	0	0	0	0
Allowance for credit losses, Period ending balance	3,114	926	3,114	926
Residential Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Period beginning balance	10,616	1,034	1,909	561
Current provision for securities without prior allowance	35	248	225	1,018
Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	0		8,318
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	46	125	473	(95)
Reductions for securities sold	(94)	(44)	(322)	(121)
Reductions for securities identified as intent (or requirement) to sell during the period	0	0	0	0
Allowance for credit losses, Period ending balance	10,603	1,363	10,603	1,363
Commercial Mortgage Backed Securities [Member]
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items]
Allowance for credit losses, Period beginning balance	18	14	11	29
Current provision for securities without prior allowance	0	4	18	4
Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	0		0
Increase or (Decrease) on securities with prior allowance, excluding intent (or Requirements) to sell securities	1	(3)	(10)	(18)
Reductions for securities sold	0	0	0	0
Reductions for securities identified as intent (or requirement) to sell during the period	0	0	0	0
Allowance for credit losses, Period ending balance	$ 19	$ 15	$ 19	$ 15

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Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accrued Interest on Investments [Line Items]
Accrued investment income	$ 54,024	$ 48,247
Available-for-sale Securities [Member]
Accrued Interest on Investments [Line Items]
Accrued investment income	$ 52,800	$ 46,300

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Investments (Fair Value and Gross Pre-Tax Net Unrealized Loss of Securities By Length of Time) (Details) - Available-for-sale Securities - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
AFS Fair Value, Less than 12 Months	$ 5,693,945	$ 1,376,128
AFS Unrealized Losses, Less than 12 months	(514,307)	(14,849)
AFS Fair Value, 12 months or longer	444,242	85,122
AFS Unrealized Losses, 12 months or longer	(72,234)	(2,505)
AFS Fair Value	6,138,187	1,461,250
AFS Unrealized Losses	(586,541)	(17,354)
U.S. Government and Government Agencies [Member]
AFS Fair Value, Less than 12 Months	138,136	34,857
AFS Unrealized Losses, Less than 12 months	(16,003)	(746)
AFS Fair Value, 12 months or longer	9,819	7,827
AFS Unrealized Losses, 12 months or longer	(4,112)	(399)
AFS Fair Value	147,955	42,684
AFS Unrealized Losses	(20,115)	(1,145)
Foreign Government [Member]
AFS Fair Value, Less than 12 Months	12,069	2,000
AFS Unrealized Losses, Less than 12 months	(1,501)	(84)
AFS Fair Value, 12 months or longer	1,711	1,061
AFS Unrealized Losses, 12 months or longer	(459)	(39)
AFS Fair Value	13,780	3,061
AFS Unrealized Losses	(1,960)	(123)
Obligations of States and Political Subdivisions [Member]
AFS Fair Value, Less than 12 Months	921,980	25,837
AFS Unrealized Losses, Less than 12 months	(62,494)	(235)
AFS Fair Value, 12 months or longer	3,886	0
AFS Unrealized Losses, 12 months or longer	(643)	0
AFS Fair Value	925,866	25,837
AFS Unrealized Losses	(63,137)	(235)
Corporate Securities [Member]
AFS Fair Value, Less than 12 Months	2,037,738	300,549
AFS Unrealized Losses, Less than 12 months	(217,328)	(4,903)
AFS Fair Value, 12 months or longer	61,315	2,520
AFS Unrealized Losses, 12 months or longer	(17,655)	(50)
AFS Fair Value	2,099,053	303,069
AFS Unrealized Losses	(234,983)	(4,953)
Collateralized Loan Obligations and Other Asset Backed Securities [Member]
AFS Fair Value, Less than 12 Months	1,107,292	663,976
AFS Unrealized Losses, Less than 12 months	(82,751)	(4,934)
AFS Fair Value, 12 months or longer	269,902	53,368
AFS Unrealized Losses, 12 months or longer	(29,541)	(1,350)
AFS Fair Value	1,377,194	717,344
AFS Unrealized Losses	(112,292)	(6,284)
Residential Mortgage Backed Securities [Member]
AFS Fair Value, Less than 12 Months	937,823	236,010
AFS Unrealized Losses, Less than 12 months	(93,871)	(2,931)
AFS Fair Value, 12 months or longer	45,296	20
AFS Unrealized Losses, 12 months or longer	(10,985)	(1)
AFS Fair Value	983,119	236,030
AFS Unrealized Losses	(104,856)	(2,932)
Commercial Mortgage Backed Securities [Member]
AFS Fair Value, Less than 12 Months	538,907	112,899
AFS Unrealized Losses, Less than 12 months	(40,359)	(1,016)
AFS Fair Value, 12 months or longer	52,313	20,326
AFS Unrealized Losses, 12 months or longer	(8,839)	(666)
AFS Fair Value	591,220	133,225
AFS Unrealized Losses	$ (49,198)	$ (1,682)

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Investments (Fixed Income Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule of Fixed Income Securities [Line Items]
Due in one year or less fair value, AFS	$ 322,189
Due after one year through five years fair value, AFS	2,826,402
Due after five years through 10 years fair value, AFS	2,410,981
Due after 10 years fair value, AFS	912,528
Total AFS fixed income securities, Fair Value	6,472,100	$ 6,709,976
Due in one year or less carrying value, HTM	6,577
Due after one year through five years carrying value, HTM	4,955
Due after five years through 10 years carrying value, HTM	21,476
Due after 10 years carrying value, HTM	0
Fixed income securities, held-to-maturity, net of allowance for credit losses	33,008	28,785
Due in one year or less fair value, HTM	6,595
Due after one year through five years fair value, HTM	4,907
Due after five years through 10 years fair value, HTM	19,980
Due after 10 years fair value, HTM	0
Total HTM fixed income securities, Fair Value	$ 31,482	$ 29,460

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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		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Net investment income earned		$ 63,889	$ 93,032	$ 206,713	$ 246,479
Other Investments		432,624		432,624		$ 409,032
Alternative Investments [Member]
Net investment income earned		(5,600)	$ 42,800	22,800	$ 92,900
Other Securities [Member]
Other Investments		64,803		64,803		49,300
Remaining Commitment		0		0		0
Maximum Exposure to Loss	[1]	64,803		64,803		49,300
Alternative Investments [Member]
Other Investments		367,821		367,821		359,732
Remaining Commitment		246,745		246,745		214,987
Maximum Exposure to Loss	[1]	614,566		614,566		574,719
Alternative Investments [Member] | Private Equity Funds [Member]
Other Investments		284,538		284,538		273,070
Remaining Commitment		126,446		126,446		99,734
Maximum Exposure to Loss	[1]	410,984		410,984		372,804
Alternative Investments [Member] | Private Credit Funds [Member]
Other Investments		55,398		55,398		63,138
Remaining Commitment		91,196		91,196		92,674
Maximum Exposure to Loss	[1]	146,594		146,594		155,812
Alternative Investments [Member] | Real Assets [Member]
Other Investments		27,885		27,885		23,524
Remaining Commitment		29,103		29,103		22,579
Maximum Exposure to Loss	[1]	56,988		56,988		46,103
Other Investments [Member]
Other Investments		432,624		432,624		409,032
Remaining Commitment		246,745		246,745		214,987
Maximum Exposure to Loss	[1]	$ 679,369		$ 679,369		$ 624,019

[1] In addition to the amounts in this table, previously recognized tax credits are subject to the risk of recapture. We do not consider the risk of recapture to be significant and therefore do not reflect this risk in the Maximum Exposure to Loss column in this table.

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Investments (Aggregated Income Statement Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Net investment income earned	$ 63,889	$ 93,032	$ 206,713	$ 246,479
Other Investments	432,624		432,624		$ 409,032
Alternative Investments [Member]
Schedule of Equity Method Investments [Line Items]
Net investment income earned	(5,600)	42,800	22,800	92,900
Investments accounted for under the equity method [Member]
Schedule of Equity Method Investments [Line Items]
Net investment income	205,600	60,400	612,000	550,300
Realized gains	1,983,500	1,857,600	10,964,900	4,026,200
Net change in unrealized appreciation	(3,188,900)	11,188,200	(1,973,000)	20,767,900
Net income	$ (999,800)	$ 13,106,200	$ 9,603,900	$ 25,344,400

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Investments (Investments Pledged as Collateral) (Details) $ in Millions	Sep. 30, 2022 USD ($)
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral On Deposit With Various State And Regulatory Agencies	$ 22.5
Security Owned and Pledged as Collateral, Fair Value	127.5
Federal Home Loan Bank of Indianapolis [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	65.3
Federal Home Loan Bank of New York [Member]
Financial Instruments Owned and Pledged as Collateral [Line Items]
Securities Pledged as Collateral on FHLB	39.7
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	18.9
Security Owned and Pledged as Collateral, Fair Value	18.9
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	3.6
Security Owned and Pledged as Collateral, Fair Value	3.6
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
Security Owned and Pledged as Collateral, Fair Value	90.2
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	60.5
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	29.7
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
Security Owned and Pledged as Collateral, Fair Value	14.8
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	4.8
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	$ 10.0

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Investments (Credit Concentration Risk) (Details)	Sep. 30, 2022	Dec. 31, 2021
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%

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Investments (Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net Investment Income [Line Items]
Net investment income earned	$ 63,889	$ 93,032	$ 206,713	$ 246,479
Investment Expense	(4,234)	(5,218)	(13,571)	(14,314)
Fixed Income Securities [Member]
Net Investment Income [Line Items]
Net investment income earned	68,236	51,683	184,305	157,114
Commercial Mortgage Loans [Member]
Net Investment Income [Line Items]
Net investment income earned	1,600	683	3,762	1,892
Equity Securities [Member]
Net Investment Income [Line Items]
Net investment income earned	2,604	2,955	7,661	8,425
Short-Term Investments [Member]
Net Investment Income [Line Items]
Net investment income earned	1,152	64	1,660	204
Other Investments [Member]
Net Investment Income [Line Items]
Net investment income earned	(5,469)	42,865	22,896	93,158
Alternative Investments [Member]
Net Investment Income [Line Items]
Net investment income earned	$ (5,600)	$ 42,800	$ 22,800	$ 92,900

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Investments (Net Realized and Unrealized Investment Gains and (Losses)) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Gain (Loss) on Securities [Line Items]
Gross gains on sales	$ 7,094	$ 7,151	$ 23,843	$ 12,906
Gross losses on sales	(19,668)	(2,505)	(52,573)	(8,787)
Net realized (losses) gains on disposals	(12,574)	4,646	(28,730)	4,119
Net unrealized (losses) gains on equity securities	(7,777)	(3,111)	(31,791)	15,830
Losses on securities for which we have the intent to sell	(913)	(30)	(6,412)	(483)
Net realized and unrealized investment (losses) gains	(25,681)	177	(108,913)	15,353
Change in net realized and unrealized investment gains	(25,900)		(124,300)
Available-for-sale Securities [Member]
Gain (Loss) on Securities [Line Items]
Net credit loss (expense) benefit on fixed income securities	(4,471)	(1,334)	(42,042)	(4,059)
Held-to-maturity Securities [Member]
Gain (Loss) on Securities [Line Items]
Net credit loss (expense) benefit on fixed income securities	$ 54	$ 6	$ 62	$ (54)

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Investments (Unrealized Gains (Losses) on Equity Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Gain (Loss) on Securities [Line Items]
Unrealized (losses) gains recognized in income on equity securities remaining in our portfolio at period end.	$ (5,832)	$ 269	$ (16,334)	$ 14,767
Unrealized (losses) gains recognized in income on equity securities sold during period	(1,945)	(3,380)	(15,457)	1,063
Total unrealized (losses) gains recognized in income on equity securities	$ (7,777)	$ (3,111)	$ (31,791)	$ 15,830

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Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance lease obligations	$ 4,281	$ 5,450
Long-term debt, carrying amount	505,151	506,050
Long-term debt, fair value	459,564	651,071
Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	50,225	63,719
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	49,920	49,917
Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	97,098	127,574
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	99,536	99,520
Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	255,216	395,652
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	294,400	294,330
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	57,025	64,126
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	503,856	503,767
Unamortized Debt Issuance Costs [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt issuance costs	$ (2,986)	$ (3,167)

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Fair Value Measurements (Quantitative Disclosures of Fair Value Assets) (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
AFS fixed income securities		$ 6,472,100	$ 6,709,976
Equity securities		183,868	335,537
Short-term investments		269,302	447,863
Investments measured at fair value using the net asset value per share.	[1]	101,100	83,600
Fair Value, Recurring [Member]
AFS fixed income securities		6,472,100	6,709,976
Equity securities		183,868	335,537
Short-term investments		269,302	447,863
Total assets measured at fair value		6,925,270	7,493,376
US Government and Government Agencies [Member]
AFS fixed income securities		148,231	130,458
US Government and Government Agencies [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		148,231	130,458
Foreign Government [Member]
AFS fixed income securities		13,780	15,860
Foreign Government [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		13,780	15,860
Obligations of States and Political Subdivisions [Member]
AFS fixed income securities		967,630	1,189,308
Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		967,630	1,189,308
Corporate Securities [Member]
AFS fixed income securities		2,264,636	2,573,603
Corporate Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		2,264,636	2,573,603
Collateralized Loan Obligations and Other Asset Backed Securities [Member]
AFS fixed income securities		1,467,423	1,350,814
Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		1,467,423	1,350,814
Residential Mortgage Backed Securities [Member]
AFS fixed income securities		1,016,057	776,252
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		1,016,057	776,252
Commercial Mortgage Backed Securities [Member]
AFS fixed income securities		594,343	673,681
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		594,343	673,681
Common Stock [Member] | Fair Value, Recurring [Member]
Equity securities	[1]	182,138	333,449
Preferred Stock [Member] | Fair Value, Recurring [Member]
Equity securities		1,730	2,088
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		75,858	60,615
Equity securities		82,759	251,934
Short-term investments		268,982	442,723
Total assets measured at fair value		427,599	755,272
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | US Government and Government Agencies [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		75,858	60,615
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]	81,029	249,846
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member]
Equity securities		1,730	2,088
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		6,097,662	6,398,079
Equity securities		0	0
Short-term investments		320	5,140
Total assets measured at fair value		6,097,982	6,403,219
Significant Other Observable Inputs (Level 2) [Member] | US Government and Government Agencies [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		72,373	69,843
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		13,780	15,860
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		960,919	1,181,563
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		2,098,812	2,459,476
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		1,341,751	1,225,905
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		1,016,057	776,007
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		593,970	669,425
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		298,580	251,282
Equity securities		0	0
Short-term investments		0	0
Total assets measured at fair value		298,580	251,282
Significant Unobservable Inputs (Level 3) [Member] | US 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		6,711	7,745
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		165,824	114,127
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Loan Obligations and Other Asset Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		125,672	124,909
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		0	245
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member]
AFS fixed income securities		373	4,256
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 $101.1 million at September 30, 2022, and $83.6 million at December 31, 2021, were measured at fair value using the net asset value per share (or its practical expedient) and have not been 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 in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

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Fair Value Measurements (Change in Fair Value of Securities Using Level 3 Inputs) (Details) - Available-for-sale Securities [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31	$ 7,745	$ 2,894
Total net (losses) gains for the period included in OCI	(879)	9
Purchases	0	0
Sales	0	0
Issuances	0	0
Settlements	0	0
Transfers into Level 3	0	5,101
Transfers out of Level 3	0	0
Fair value, September 30	6,711	8,004
Change in unrealized losses (gains) for the period included in earnings for assets held at period end	(155)	0
Change in unrealized losses (gains) for the period included in OCI for assets held at period end	(879)	9
Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31	114,127	70,700
Total net (losses) gains for the period included in OCI	(23,847)	2,607
Purchases	74,327	43,833
Sales	0	0
Issuances	0	0
Settlements	(8,663)	(210)
Transfers into Level 3	19,214	981
Transfers out of Level 3	(7,038)	(7,454)
Fair value, September 30	165,824	110,286
Change in unrealized losses (gains) for the period included in earnings for assets held at period end	(2,330)	(185)
Change in unrealized losses (gains) for the period included in OCI for assets held at period end	(23,852)	2,607
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	124,909	56,375
Total net (losses) gains for the period included in OCI	(11,436)	206
Purchases	44,167	19,041
Sales	0	0
Issuances	0	0
Settlements	(6,678)	(1,750)
Transfers into Level 3	0	3,226
Transfers out of Level 3	(24,646)	(14,643)
Fair value, September 30	125,672	62,429
Change in unrealized losses (gains) for the period included in earnings for assets held at period end	(771)	(35)
Change in unrealized losses (gains) for the period included in OCI for assets held at period end	(11,395)	206
Residential Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31	245
Total net (losses) gains for the period included in OCI	(17)
Purchases	0
Sales	0
Issuances	0
Settlements	(11)
Transfers into Level 3	0
Transfers out of Level 3	(217)
Fair value, September 30	0
Change in unrealized losses (gains) for the period included in earnings for assets held at period end	0
Change in unrealized losses (gains) for the period included in OCI for assets held at period end	(17)
Commercial Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31	4,256
Total net (losses) gains for the period included in OCI	(477)
Purchases	0
Sales	0
Issuances	0
Settlements	(15)
Transfers into Level 3	0
Transfers out of Level 3	(3,430)
Fair value, September 30	373
Change in unrealized losses (gains) for the period included in earnings for assets held at period end	(7)
Change in unrealized losses (gains) for the period included in OCI for assets held at period end	(477)
Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, December 31	251,282	129,969
Total net (losses) gains for the period included in OCI	(36,656)	2,822
Purchases	118,494	62,874
Sales	0	0
Issuances	0	0
Settlements	(15,367)	(1,960)
Transfers into Level 3	19,214	9,308
Transfers out of Level 3	(35,331)	(22,097)
Fair value, September 30	298,580	180,719
Change in unrealized losses (gains) for the period included in earnings for assets held at period end	(3,263)	(220)
Change in unrealized losses (gains) for the period included in OCI for assets held at period end	(36,620)	2,822
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 in the period included in net income	(155)	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 in the period included in net income	(2,345)	(185)
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 in the period included in net income	(771)	(35)
Gain (Loss) on Investments [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains in the period included in net income	0
Gain (Loss) on Investments [Member] | Commercial Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains in the period included in net income	(7)
Gain (Loss) on Investments [Member] | Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains in the period included in net income	(3,278)	(220)
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 in 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 in the period included in net income	49	14
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 in the period included in net income	127	9
Net Investment Income Earned [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains in the period included in net income	0
Net Investment Income Earned [Member] | Commercial Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains in the period included in net income	46
Net Investment Income Earned [Member] | Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total net (losses) gains in the period included in net income	$ 222	$ 23

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Fair Value (Quantitative information about significant unobservable inputs in the fair value measurement of level 3 assets) (Details) $ in Thousands		Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Fair Value		$ 6,472,100	$ 6,709,976
Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Fair Value		2,264,636	2,573,603
Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Fair Value		$ 1,467,423	$ 1,350,814
Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Minimum | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Measurement Input		(0.044)	0.003
Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Minimum | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Measurement Input		0.0001	0.007
Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Maximum | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Measurement Input		0.196	0.030
Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Maximum | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Measurement Input		0.080	0.080
Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Weighted Average | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Measurement Input		0.018	0.012
Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Weighted Average | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Measurement Input		0.019	0.021
Available-for-sale Securities [Member] | Valuation Technique, Discounted Cash Flow | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		$ 77,424	$ 54,135
Available-for-sale Securities [Member] | Valuation Technique, Discounted Cash Flow | Collateralized Loan Obligations and Other Asset Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		40,883	34,903
Available-for-sale Securities [Member] | Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investment assets measured at fair value	[1]	180,273	162,244
Available-for-sale Securities [Member] | Investments [Member] | Valuation Technique, Discounted Cash Flow
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value		$ 118,307	$ 89,038

[1] Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency into the inputs used to develop the valuations. The quantitative details of these unobservable inputs is neither provided to us, nor reasonably available to us, and therefore are not included in the tables above.

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Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	$ 31,482	$ 29,460
Commercial mortgage loans, fair value	136,652	97,598
Long-term debt, fair value	459,564	651,071
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	3,424	3,576
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	28,058	25,884
Seven Point Twenty Five Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	50,225	63,719
Six Point Seventy Percent Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	97,098	127,574
Five Point Three Hundred Seventy Five Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	255,216	395,652
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	57,025	64,126
Long-term Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	459,564	651,071
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
Commercial mortgage loans, fair value	0	0
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
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] | 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 Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed income securities, held-to-maturity - fair value	31,482	29,460
Commercial mortgage loans, fair value	0	0
Long-term debt, fair value	459,564	651,071
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	3,424	3,576
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	28,058	25,884
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	50,225	63,719
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	97,098	127,574
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	255,216	395,652
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	57,025	64,126
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
Commercial mortgage loans, fair value	136,652	97,598
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
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] | 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

XML

Allowance for Credit Losses on Premiums Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Allowance for Credit Losses on Premiums Receivable [Line Items]
Premium Receivable, Allowance for Credit Loss	$ 15,200		$ 15,200		$ 14,900	$ 13,600	$ 18,300	$ 21,000
Change in allowance for credit losses on premiums receivable	2,600		5,400
Premiums Receivable, Allowance for Credit Losses, Historical
Allowance for Credit Losses on Premiums Receivable [Line Items]
Change in allowance for credit losses on premiums receivable		$ 1,200		$ 6,300
Reduction in Allowance for Credit Losses on Premiums Receivable
Allowance for Credit Losses on Premiums Receivable [Line Items]
Change in allowance for credit losses on premiums receivable	(100)	(800)	(1,600)	(4,200)
Premiums Receivable, Allowance for Credit Losses, Current period policies
Allowance for Credit Losses on Premiums Receivable [Line Items]
Change in allowance for credit losses on premiums receivable	2,700		7,000
Premiums Receivable [Member]
Allowance for Credit Losses on Premiums Receivable [Line Items]
Premium Receivable, Allowance for Credit Loss	15,200	16,500	15,200	16,500
Current period change for expected credit losses	2,250	180	4,335	1,721
Write-offs charged against the allowance for credit losses	(2,349)	(2,154)	(3,787)	(6,554)
Recoveries	$ 399	$ 174	$ 1,052	$ 333

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Reinsurance Recoverable Credit Ratings (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance recoverable, gross	$ 714,731		$ 601,668
Reinsurance Recoverable, Allowance for Credit Loss	(1,600)	$ (1,600)	(1,600)	$ (1,595)	$ (1,777)	$ (1,777)
Reinsurance recoverable, net of allowance for credit losses	713,131		600,068
AM Best, A++ Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	45,356		38,610
AM Best, A++ Rating [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0		9
AM Best, A++ Rating [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	45,356		38,601
AM Best, A+ Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	361,005		341,377
AM Best, A+ Rating [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	920		1,520
AM Best, A+ Rating [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	360,085		339,857
AM Best, A Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	99,036		96,902
AM Best, A Rating [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	176		1,227
AM Best, A Rating [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	98,860		95,675
AM Best, A- Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	2,391		3,354
AM Best, A- Rating [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	90		145
AM Best, A- Rating [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	2,301		3,209
AM Best, B++ Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0		0
AM Best, B++ Rating [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0		0
AM Best, B++ Rating [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0		0
AM Best, B+ Rating [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0		0
AM Best, B+ Rating [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0		0
AM Best, B+ Rating [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0		0
AM Best Rated Reinsurer [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	507,788		480,243
AM Best Rated Reinsurer [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	1,186		2,901
AM Best Rated Reinsurer [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	506,602		477,342
Total federal and state pools [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	202,989		116,378
Change in Reinsurance Recoverable, Gross	86,600
Total federal and state pools [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	0		0
Total federal and state pools [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	202,989		116,378
Other than Federal And State Pools [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	3,954		5,047
Other than Federal And State Pools [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	278		450
Other than Federal And State Pools [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	3,676		4,597
Non Rated Reinsurer [Member]
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	206,943		121,425
Non Rated Reinsurer [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	278		450
Non Rated Reinsurer [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	206,665		120,975
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments, Gross [Member] | Financial Asset, Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	1,464		3,351
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments, Gross [Member] | Financial Asset, Not Past Due
Reinsurance Recoverable, Credit Quality Indicator [Line Items]
Reinsurance Recoverables, Gross	$ 713,267		$ 598,317

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Allowance for Credit Losses on Reinsurance Recoverable (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reinsurance Recoverable, Allowance for Credit Loss [Line Items]
Allowance for credit losses, beginning of period	$ 1,600	$ 1,777	$ 1,600	$ 1,777
Current period change for expected credit losses	0	(182)	0	(182)
Write-offs charged against the allowance for credit losses	0	0	0	0
Recoveries	0	0	0	0
Allowance for credit losses, end of period	$ 1,600	$ 1,595	$ 1,600	$ 1,595

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Reinsurance (List of Direct, Assumed, and Ceded Reinsurance Amounts) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Premiums earned:
Net	$ 853,879	$ 767,247	$ 2,500,601	$ 2,232,725
Loss and loss expenses incurred:
Net	547,826	505,269	1,566,930	1,340,293
Direct Assumed and Ceded Reinsurance Amounts [Member]
Premiums written:
Direct	1,037,612	932,752	3,089,166	2,796,296
Assumed	9,531	7,136	23,398	17,541
Ceded	(143,749)	(126,982)	(388,631)	(369,548)
Net	903,394	812,906	2,723,933	2,444,289
Premiums earned:
Direct	984,981	877,620	2,872,008	2,568,445
Assumed	8,514	6,304	21,523	16,391
Ceded	(139,616)	(116,677)	(392,930)	(352,111)
Net	853,879	767,247	2,500,601	2,232,725
Loss and loss expenses incurred:
Direct	732,568	655,483	1,821,069	1,557,063
Assumed	6,443	4,143	15,846	10,807
Ceded	(191,185)	(154,357)	(269,985)	(227,577)
Net	$ 547,826	$ 505,269	$ 1,566,930	$ 1,340,293

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Reserve for Loss and Loss Expense (Rollforward of Reserve for Loss and Loss Expense) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Liability for Claims and Claims Adjustment Expense [Line Items]
Gross reserve for loss and loss expense, at beginning of period	$ 4,580,903	$ 4,260,355
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of period	578,641	554,269
Net reserve for loss and loss expense, at beginning of period	4,002,262	3,706,086
Incurred loss and loss expense for claims occurring in the current year	1,610,940	1,408,240
Total incurred loss and loss expense	1,566,930	1,340,293
Paid loss and loss expense for claims occurring in the current year	513,118	430,288
Paid loss and loss expense for claims occurring in the prior years	779,438	675,782
Total paid loss and loss expense	1,292,556	1,106,070
Net reserve for loss and loss expense, at end of period	4,276,636	3,940,309
Add: reinsurance recoverable on unpaid loss and loss expense, at end of period	688,641	670,031
Gross reserve for loss and loss expense, at end of period	4,965,277	4,610,340
Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(44,010)	(67,947)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(48,000)	(66,000)
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	(40,000)	(28,000)
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	(5,000)	(29,000)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | E&S Lines
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development		(7,000)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | Surety Lines
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(10,000)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | Business Owners Policies [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year development	(8,000)	$ (2,000)
Casualty Insurance Product Line [Member] | Change in Historical Claim Rate Experience [Member] | Commercial Automobile [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	$ 4,000

XML

Segment Information Narrative (Details)	9 Months Ended
	Sep. 30, 2022
Number of Operating Segments	4

XML

Segment Information (Revenue by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Net premiums earned	$ 853,879	$ 767,247	$ 2,500,601	$ 2,232,725
Other income	2,933	4,588	7,499	14,912
Net investment income earned	63,889	93,032	206,713	246,479
Net realized and unrealized investment (losses) gains	(25,681)	177	(108,913)	15,353
Total Investments revenue	38,208	93,209	97,800	261,832
Total revenues	895,020	865,044	2,605,900	2,509,469
Standard Commercial Lines
Segment Reporting Information [Line Items]
Total revenues	694,881	623,739	2,040,284	1,822,136
Standard Commercial Lines | General Liability [Member]
Segment Reporting Information [Line Items]
Net premiums earned	225,302	205,904	667,912	596,717
Standard Commercial Lines | Commercial Automobile [Member]
Segment Reporting Information [Line Items]
Net premiums earned	207,129	185,610	599,340	535,519
Standard Commercial Lines | Commercial Property [Member]
Segment Reporting Information [Line Items]
Net premiums earned	128,268	111,981	371,892	320,904
Standard Commercial Lines | Workers Compensation [Member]
Segment Reporting Information [Line Items]
Net premiums earned	81,996	78,318	250,178	230,845
Standard Commercial Lines | Business Owners Policies [Member]
Segment Reporting Information [Line Items]
Net premiums earned	32,130	23,025	93,682	80,963
Standard Commercial Lines | Bonds Segment [Member]
Segment Reporting Information [Line Items]
Net premiums earned	11,094	8,850	32,136	26,436
Standard Commercial Lines | Other Commercial [Member]
Segment Reporting Information [Line Items]
Net premiums earned	6,518	5,883	19,003	17,082
Standard Commercial Lines | Miscellaneous income
Segment Reporting Information [Line Items]
Other income	2,444	4,168	6,141	13,670
Standard Personal Lines
Segment Reporting Information [Line Items]
Total revenues	76,127	73,782	222,976	221,718
Standard Personal Lines | Personal Automobile [Member]
Segment Reporting Information [Line Items]
Net premiums earned	40,746	40,575	120,414	122,977
Standard Personal Lines | Homeowners [Member]
Segment Reporting Information [Line Items]
Net premiums earned	32,619	30,633	95,436	91,801
Standard Personal Lines | Other Personal [Member]
Segment Reporting Information [Line Items]
Net premiums earned	2,273	2,154	5,768	5,698
Standard Personal Lines | Miscellaneous income
Segment Reporting Information [Line Items]
Other income	489	420	1,358	1,242
E&S Lines
Segment Reporting Information [Line Items]
Total revenues	85,804	74,314	244,840	203,783
E&S Lines | Casualty Insurance Product Line [Member]
Segment Reporting Information [Line Items]
Net premiums earned	59,640	52,983	170,305	144,458
E&S Lines | Property Insurance [Member]
Segment Reporting Information [Line Items]
Net premiums earned	$ 26,164	$ 21,331	$ 74,535	$ 59,325

XML

Segment Information (Income Before and After Federal Income Tax) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Net investment income earned	$ 63,889	$ 93,032	$ 206,713	$ 246,479
Net realized and unrealized investment (losses) gains	(25,681)	177	(108,913)	15,353
Total investment segment income, before federal income tax	38,208	93,209	97,800	261,832
Tax on investments segment income	6,964	18,379	17,136	51,229
Total investment segment income, after federal income tax	31,244	74,830	80,664	210,603
Standard Commercial Lines
Segment Reporting Information [Line Items]
Underwriting income (loss), before federal income tax	22,501	17,413	111,593	154,850
Underwriting income (loss), after federal income tax	$ 17,776	$ 13,756	$ 88,158	$ 122,332
Combined ratio	96.80%	97.20%	94.50%	91.40%
ROE Contribution	3.10%	2.10%	4.70%	6.20%
Standard Personal Lines
Segment Reporting Information [Line Items]
Underwriting income (loss), before federal income tax	$ (1,385)	$ (11,146)	$ (7,232)	$ 2,193
Underwriting income (loss), after federal income tax	$ (1,094)	$ (8,805)	$ (5,713)	$ 1,732
Combined ratio	101.80%	115.20%	103.30%	99.00%
ROE Contribution	(0.20%)	(1.30%)	(0.30%)	0.10%
E&S Lines
Segment Reporting Information [Line Items]
Underwriting income (loss), before federal income tax	$ 6,016	$ 4,672	$ 16,313	$ 7,494
Underwriting income (loss), after federal income tax	$ 4,753	$ 3,691	$ 12,887	$ 5,920
Combined ratio	93.00%	93.70%	93.30%	96.30%
ROE Contribution	0.80%	0.50%	0.70%	0.30%
Investments
Segment Reporting Information [Line Items]
ROE Contribution	8.90%	11.00%	8.90%	10.10%

XML

Segment Information (Reconciliation of Segment Results to Income Before Federal Income Tax (Details)) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Investment income	$ 38,208	$ 93,209	$ 97,800	$ 261,832
Interest expense	(7,179)	(7,242)	(21,599)	(21,967)
Corporate expenses	(5,522)	(4,270)	(24,442)	(22,936)
Income before federal income tax	52,639	92,636	172,433	381,466
Preferred stock dividends	(2,300)	(2,300)	(6,900)	(7,053)
Income available to common stockholders, before federal income tax	50,339	90,336	165,533	374,413
Standard Commercial Lines
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting income (loss), before federal income tax	$ 22,501	$ 17,413	$ 111,593	$ 154,850
ROE Contribution	3.10%	2.10%	4.70%	6.20%
Standard Personal Lines
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting income (loss), before federal income tax	$ (1,385)	$ (11,146)	$ (7,232)	$ 2,193
ROE Contribution	(0.20%)	(1.30%)	(0.30%)	0.10%
E&S Lines
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting income (loss), before federal income tax	$ 6,016	$ 4,672	$ 16,313	$ 7,494
ROE Contribution	0.80%	0.50%	0.70%	0.30%
Investments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
ROE Contribution	8.90%	11.00%	8.90%	10.10%
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Underwriting income (loss), total all segments	$ 65,340	$ 104,148	$ 218,474	$ 426,369

XML

Retirement Plans (Components of Net Periodic Benefit Cost) (Details) - Pension Plan [Member] - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost		$ 2,486	$ 2,148	$ 7,458	$ 6,445
Expected return on plan assets		(5,537)	(5,744)	(16,611)	(17,232)
Amortization of unrecognized net actuarial loss		366	626	1,099	1,876
Total net periodic pension cost (benefit)	[1]	$ (2,685)	$ (2,970)	$ (8,054)	$ (8,911)

[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.

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Retirement Plans (Weighted-Average Expense Assumptions) (Details) - Pension Plan [Member]	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	2.98%	2.68%
Effective interest rate for calculation of interest cost	2.48%	2.06%
Expected return on plan assets	5.00%	5.40%

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Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income, Gross	$ 52,639	$ 92,636	$ 172,433	$ 381,466
Unrealized holding losses during the period, Gross	(189,622)	(35,285)	(674,357)	(103,040)
Unrealized losses on securities with credit loss recognized in earnings; Gross	(68,287)	(2,343)	(227,599)	(3,678)
Amounts reclassified into net income: HTM securities, Gross	1	1	2	(4)
Amounts reclassified into net income: net realized losses (gains) on disposals and intent-to-sell AFS securities, gross	14,235	(1,296)	48,396	(634)
Amounts reclassified into net income: Credit loss expense, gross	4,471	1,334	42,042	4,059
Total unrealized losses on investment securities, Gross	(239,202)	(37,589)	(811,516)	(103,297)
Amount reclassified into net income: Net actuarial loss, Gross	417	693	1,251	2,079
Total defined benefit pension and post-retirement benefit plans, Gross	417	693	1,251	2,079
Other comprehensive loss, Gross	(238,785)	(36,896)	(810,265)	(101,218)
Comprehensive (loss) income before tax	(186,146)	55,740	(637,832)	280,248
Net income, Tax	10,114	18,931	34,058	76,608
Unrealized holding losses during the period, Tax	(39,819)	(7,410)	(141,613)	(21,638)
Unrealized losses on securities with credit loss recognized in earnings; Tax	(14,341)	(492)	(47,796)	(772)
Amounts reclassified into net income: HTM securities, Tax	0	0	0	(1)
Amounts reclassified into net income: net realized losses (gains) on disposals and intent-to-sell AFS securities, tax	2,989	(272)	10,163	(133)
Amounts reclassified into net income: Credit loss expense, Tax	939	280	8,828	852
Total unrealized losses on investment securities, Tax	(50,232)	(7,894)	(170,418)	(21,692)
Amount reclassified into net income: Net actuarial loss, Tax	88	145	263	436
Total defined benefit pension and post-retirement benefit plans, Tax	88	145	263	436
Other comprehensive (loss) income, Tax	(50,144)	(7,749)	(170,155)	(21,256)
Comprehensive (loss) income, Tax	(40,030)	11,182	(136,097)	55,352
Net income	42,525	73,705	138,375	304,858
Unrealized holding losses during period, net	(149,803)	(27,875)	(532,744)	(81,402)
Unrealized losses on securities with credit loss recognized in earnings, Net	(53,946)	(1,851)	(179,803)	(2,906)
Amounts reclassified into net income: HTM Securities, Net	1	1	2	(3)
Amounts reclassified into net income: net realized losses (gains) on disposals and intent-to-sell AFS securities, net	11,246	(1,024)	38,233	(501)
Amounts reclassified into net income: Credit loss expense, net	3,532	1,054	33,214	3,207
Total Unrealized Losses on Investment Securities	(188,970)	(29,695)	(641,098)	(81,605)
Net current period OCI	329	548	988	1,643
Total defined benefit pension and post-retirement plans, Net	329	548	988	1,643
Other Comprehensive loss	(188,641)	(29,147)	(640,110)	(79,962)
Comprehensive loss (income)	$ (146,116)	$ 44,558	$ (501,735)	$ 224,896

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Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2021				$ 115,099
Net current period OCI		$ (188,641)	$ (29,147)	(640,110)	$ (79,962)
Ending Balance, September 30, 2022		(525,011)		(525,011)
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2021				185,170
OCI before reclassifications				(532,744)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent				(38,233)
Net current period OCI				(494,511)
Ending Balance, September 30, 2022		(309,341)		(309,341)
Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2021				180,880
OCI before reclassifications				(712,547)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent				(71,449)
Net current period OCI				(641,098)
Ending Balance, September 30, 2022		(460,218)		(460,218)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2021	[1]			(4,287)
OCI before reclassifications	[1]			(179,803)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	[1]			(33,214)
Net current period OCI	[1]			(146,589)
Ending Balance, September 30, 2022	[1]	(150,876)		(150,876)
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Held-to-maturity Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2021				(3)
OCI before reclassifications				0
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent				(2)
Net current period OCI				2
Ending Balance, September 30, 2022		(1)		(1)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2021				(65,781)
OCI before reclassifications				0
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent				(988)
Net current period OCI				(988)
Ending Balance, September 30, 2022		(64,793)		(64,793)
Accumulated other comprehensive income (loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance, December 31, 2021				115,099
OCI before reclassifications				(712,547)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent				(72,437)
Net current period OCI		(188,641)	$ (29,147)	(640,110)	$ (79,962)
Ending Balance, September 30, 2022		$ (525,011)		$ (525,011)

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

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Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net realized and unrealized investment (losses) gains	$ (25,681)	$ 177	$ (108,913)	$ 15,353
Net investment income earned	63,889	93,032	206,713	246,479
Loss and loss expense incurred	547,826	505,269	1,566,930	1,340,293
Other insurance expenses	102,806	94,759	298,310	278,531
Income before federal income tax	52,639	92,636	172,433	381,466
Total federal income tax expense	(10,114)	(18,931)	(34,058)	(76,608)
Net income (loss)	42,525	73,705	138,375	304,858
Reclassification out of AOCI
Net income (loss)	15,108	579	72,437	4,346
Pension Plan [Member] | Reclassification out of AOCI
Loss and loss expense incurred	90	159	270	478
Other insurance expenses	327	534	981	1,601
Income before federal income tax	417	693	1,251	2,079
Total federal income tax expense	(88)	(145)	(263)	(436)
Net income (loss)	329	548	988	1,643
Held-to-maturity Securities [Member] | Reclassification out of AOCI
Net realized and unrealized investment (losses) gains	1	(1)	1	(1)
Net investment income earned	0	2	1	(3)
Income before federal income tax	1	1	2	(4)
Total federal income tax expense	0	0	0	1
Net income (loss)	1	1	2	(3)
Available for sale securities, excluding credit losses [Member] | Reclassification out of AOCI
Net realized and unrealized investment (losses) gains	14,235	(1,296)	48,396	(634)
Income before federal income tax	14,235	(1,296)	48,396	(634)
Total federal income tax expense	(2,989)	272	(10,163)	133
Net income (loss)	11,246	(1,024)	38,233	(501)
Available for sale securities, including credit losses | Reclassification out of AOCI
Net realized and unrealized investment (losses) gains	4,471	1,334	42,042	4,059
Income before federal income tax	4,471	1,334	42,042	4,059
Total federal income tax expense	(939)	(280)	(8,828)	(852)
Net income (loss)	$ 3,532	$ 1,054	$ 33,214	$ 3,207

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Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 02, 2020
Equity [Abstract]
Authorized amount for share repurchase program					$ 100,000
Acquisition of treasury stock, share repurchase authorization, shares	(79,100)	0	(165,159)	(52,781)
Treasury stock, share repurchase authorization, cost			$ 12,400
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 84,200		$ 84,200

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Earnings per common share - net income available to common stockholders - Basic	$ 0.67	$ 1.19	$ 2.18	$ 4.95
Earnings per common share - net income available to common stockholders - Diluted	$ 0.66	$ 1.18	$ 2.16	$ 4.92
Net Income available to Common Stockholders	$ 40,225	$ 71,405	$ 131,475	$ 297,805
Weighted average common shares outstanding - basic	60,404	60,231	60,409	60,161
Effect of dilutive securities - stock compensation plans	431	355	420	348
Weighted Average Common Shares Outstanding, Diluted	60,835	60,586	60,829	60,509