8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) May 3, 2023

SELECTIVE INSURANCE GROUP, INC.

(Exact name of registrant as specified in its charter)

New Jersey	001-33067	22-2168890
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

40 Wantage Avenue, Branchville, New Jersey 07890

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (973) 948-3000

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.

☐

Section 2 – Financial Information

Item 2.02.    Results of Operations and Financial Condition.

On May 3, 2023, Selective Insurance Group, Inc. (the “Company”) issued a press release announcing results for the first quarter ended March 31, 2023. The press release is attached hereto as Exhibit 99.1.

Section 7 – Regulation FD

Item 7.01.    Regulation FD Disclosure.

Attached as Exhibit 99.2 is supplemental financial information about the Company.

The information contained in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. The Company makes no admission as to the materiality of any information in this report or the exhibits attached hereto.

Section 9 – Financial Statements and Exhibits

Item 9.01.    Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No.    Description of Exhibit

    99.1     Press Release of Selective Insurance Group, Inc. dated May 3, 2023

    99.2     Financial Supplement, First Quarter 2023

    104    The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

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 hereunto duly authorized.

		SELECTIVE INSURANCE GROUP, INC.
Date:	May 3, 2023	By:	/s/ Michael H. Lanza
			Michael H. Lanza
			Executive Vice President and General Counsel

EX-99.1

Exhibit 99.1

Selective Reports First Quarter 2023 Results, Including Net Income of $1.48 per Diluted Common Share and Non-GAAP Operating Income1 of $1.44 per Diluted Common Share

First Quarter 2023 Return on Common Equity ("ROE") of 15.1% and Non-GAAP Operating ROE1 of 14.6%

In the first quarter of 2023, we reported:

•Net premiums written ("NPW") increased 12% compared to the first quarter of 2022;

•GAAP combined ratio of 95.7%, compared to 93.1% in the first quarter of 2022;

•Commercial Lines renewal pure price increases averaged 7.0%, compared to 4.8% in the first quarter of 2022;

•After-tax net investment income of $73 million, up 25% compared to the first quarter of 2022;

•Book value per common share of $40.82, up 5.8% in the first quarter; and

•Adjusted book value per common share¹ of $46.61, up 2.5% in the first quarter.

Branchville, NJ - May 3, 2023 - Selective Insurance Group, Inc. (NASDAQ: SIGI) reported financial results for the first quarter ended March 31, 2023, with net income per diluted common share of $1.48 and non-GAAP operating income1 per diluted common share of $1.44. The first quarter combined ratio was a profitable 95.7%, inclusive of 6.1 points of catastrophe losses.

NPW increased 12% from a year ago and growth was strong across all our underwriting segments, driven by renewal pure price increases, solid retention, new business, and strong exposure growth. For the quarter, the Investments segment contributed 12.2 points of annualized ROE.

"We are pleased with our strong start to 2023, delivering excellent growth and solid underwriting margins despite elevated catastrophe losses. Our underwriting discipline and long-term approach to managing price increases relative to projected loss trends are the primary drivers of our consistent success. We are well positioned to navigate the challenging economic and insurance loss cost environments, with a strong balance sheet, sophisticated underwriting capabilities, and excellent distribution partner relationships," said John J. Marchioni, Chairman, President and Chief Executive Officer.

1

Operating Highlights

Consolidated Financial Results	Quarter ended March 31,				Change
$ and shares in millions, except per share data	2023			2022
Net premiums written	$	999.8		889.8	12	%
Net premiums earned	902.3			812.3	11
Net investment income earned	91.5			72.6	26
Net realized and unrealized gains (losses), pre-tax	3.3			(40.4)	(108)
Total revenues	999.8			846.1	18
Net underwriting income, after-tax	31.0			44.1	(30)
Net investment income, after-tax	73.1			58.5	25
Net income available to common stockholders	90.3			54.0	67
Non-GAAP operating income1	87.6			85.9	2
Combined ratio	95.7		%	93.1	2.6	pts
Loss and loss expense ratio	62.9			60.8	2.1
Underwriting expense ratio	32.6			32.1	0.5
Dividends to policyholders ratio	0.2			0.2	—
Net catastrophe losses	6.1		pts	2.5	3.6
Non-catastrophe property losses and loss expenses	16.4			18.5	(2.1)
(Favorable) prior year reserve development on casualty lines	(1.4)			(2.5)	1.1
Net income available to common stockholders per diluted common share	$	1.48		0.89	66	%
Non-GAAP operating income per diluted common share1	1.44			1.41	2
Weighted average diluted common shares	60.9			60.8	—
Book value per common share	$	40.82		42.73	(4)
Adjusted book value per common share1	46.61			43.80	6

Overall Insurance Operations

For the first quarter, overall NPW increased 12% from a year ago, reflecting average renewal pure price increases of 6.6%, solid retention, new business, and strong exposure growth. Our 95.7% combined ratio in the quarter was up from 93.1% a year ago, driven principally by higher catastrophe losses and lower prior year favorable casualty reserve development. The quarter's catastrophe losses were driven by three large storms totaling $39 million in ultimate pre-tax losses. Prior year favorable casualty reserve development totaled $13.0 million, and included $10.0 million from our workers compensation line of business and $5.0 million from our excess and surplus casualty line of business, partially offset by $2.0 million of unfavorable development in our personal auto line of business. Our Insurance Operations generated 5.2 points of annualized ROE in the quarter.

Standard Commercial Lines Segment

For the first quarter, Standard Commercial Lines premiums (representing 81% of total NPW) increased 10% compared to a year ago. The premium growth reflected average renewal pure price increases of 7.0%, new business growth of 15%, strong exposure growth, and consistently solid retention of 86%. The first quarter combined ratio was 94.7%. The following table shows the variances relative to the 93.6% combined ratio a year ago:

Standard Commercial Lines Segment	Quarter ended March 31,				Change
$ in millions	2023			2022
Net premiums written	$	813.3		737.6	10	%
Net premiums earned	731.6			661.5	11
Combined ratio	94.7		%	93.6	1.1	pts
Loss and loss expense ratio	61.2			60.4	0.8
Underwriting expense ratio	33.3			33.0	0.3
Dividends to policyholders ratio	0.2			0.2	—
Net catastrophe losses	4.8		pts	2.3	2.5
Non-catastrophe property losses and loss expenses	14.4			17.5	(3.1)
(Favorable) prior year reserve development on casualty lines	(1.4)			(3.0)	1.6

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Standard Personal Lines Segment

For the first quarter, Standard Personal Lines premiums (representing 9% of total NPW) increased 31% compared to a year ago. Renewal pure price increases averaged 1.8%, retention was 87%, and new business was up $16.7 million, compared to last year. The first quarter combined ratio was 116.0% and included 17.9 points of catastrophe losses and 2.4 points of unfavorable reserve development. The following table shows the variances relative to the 91.0% combined ratio a year ago:

Standard Personal Lines Segment	Quarter ended March 31,				Change
$ in millions	2023			2022
Net premiums written	$	85.3		65.1	31	%
Net premiums earned	81.9			72.6	13
Combined ratio	116.0		%	91.0	25.0	pts
Loss and loss expense ratio	89.4			66.8	22.6
Underwriting expense ratio	26.6			24.2	2.4
Net catastrophe losses	17.9		pts	6.0	11.9
Non-catastrophe property losses and loss expenses	41.3			35.2	6.1
Unfavorable prior year reserve development on casualty lines	2.4			—	2.4

Excess and Surplus Lines Segment

For the first quarter, Excess and Surplus Lines premiums (representing 10% of total NPW) increased 16% compared to the prior-year period, driven by average renewal pure price increases of 7.4% and new business growth of 9%. The first quarter combined ratio was 85.0%. The following table shows the variances relative to the 91.1% combined ratio a year ago:

Excess and Surplus Lines Segment	Quarter ended March 31,				Change
$ in millions	2023			2022
Net premiums written	$	101.2		87.1	16	%
Net premiums earned	88.9			78.2	14
Combined ratio	85.0		%	91.1	(6.1)	pts
Loss and loss expense ratio	52.8			59.1	(6.3)
Underwriting expense ratio	32.2			32.0	0.2
Net catastrophe losses	6.3		pts	1.7	4.6
Non-catastrophe property losses and loss expenses	10.1			11.6	(1.5)
(Favorable) prior year reserve development on casualty lines	(5.6)			—	(5.6)

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Investments Segment

For the first quarter, after-tax net investment income of $73 million was 25% higher than the prior year period. Investment income from our fixed income securities portfolio was up 49% compared to the prior year, driven by higher book yields from the investment of operating and investing cash flows over the past year in the higher interest rate environment. After-tax alternative investment income of $6 million was $9 million lower than in the prior-year period. For the quarter, the after-tax income yield averaged 3.7% for the overall portfolio, and 3.8% for the fixed income securities portfolio. Invested assets per dollar of common stockholders' equity was $3.25 at March 31, 2023, and the investment portfolio generated 12.2 points of non-GAAP operating ROE for the quarter.

Investments Segment	Quarter ended March 31,				Change
$ in millions, except per share data	2023			2022
Net investment income earned, after-tax	$	73.1		58.5	25	%
Net investment income per common share	1.20			0.96	25
Effective tax rate	20.2		%	19.4	0.8	pts
Average yields:
Portfolio:
Pre-tax	4.6			3.7	0.9
After-tax	3.7			3.0	0.7
Fixed income securities:
Pre-tax	4.7		%	3.2	1.5	pts
After-tax	3.8			2.6	1.2
Annualized ROE contribution	12.2			8.7	3.5

Balance Sheet

$ in millions, except per share data	March 31, 2023			December 31, 2022		Change
Total assets	$	11,015.0		10,802.3		2	%
Total investments	8,029.4			7,837.5		2
Long-term debt	504.2			504.7		—
Stockholders’ equity	2,669.4			2,527.6		6
Common stockholders' equity	2,469.4			2,327.6		6
Invested assets per dollar of common stockholders’ equity	3.25			3.37		(4)
Net premiums written to policyholders' surplus	1.46			1.44		0.02
Book value per common share	$	40.82		38.57		6
Adjusted book value per common share1	46.61			45.49		2
Debt to total capitalization	15.9		%	16.6	%	(0.7)		pts

Book value per common share increased by $2.25, or 5.8%, during the first quarter of 2023. The increase was principally driven by $1.48 of net income per diluted common share and a $1.10 reduction in after-tax net unrealized losses on our fixed income securities portfolio from lower interest rates, partially offset by $0.30 of dividends on our common stock paid to shareholders. During the first quarter of 2023, the Company did not repurchase any shares of common stock. Capacity under our existing repurchase authorization was $84.2 million as of March 31, 2023.

Selective's Board of Directors declared:

•    A quarterly cash dividend on common stock of $0.30 per common share that is payable June 1, 2023, to holders of record on May 15, 2023; 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 June 15, 2023, to holders of record as of May 31, 2023.

Guidance

For 2023, our full-year expectations remained unchanged and are as follows:

•A GAAP combined ratio of 96.5%, including net catastrophe losses of 4.5 points. Our combined ratio estimate assumes no additional prior year casualty reserve development;

•After-tax net investment income of $300 million that includes after-tax net investment income from our alternative

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investments of $30 million;

•An overall effective tax rate of approximately 21%, which assumes an effective tax rate of 20% for net investment income and 21% for all other items; and

•Weighted average shares of 61 million on a fully diluted basis.

The supplemental investor package, including financial information not included in this press release, is available on the Investors page of Selective’s website at www.Selective.com. Selective’s quarterly analyst conference call will be simulcast at 10:00 A.M. ET, on Thursday, May 4, 2023, at www.Selective.com. The webcast will be available for rebroadcast until the close of business on June 2, 2023.

About Selective Insurance Group, Inc.

Selective Insurance Group, Inc. (Nasdaq: SIGI) is a holding company for 10 property and casualty insurance companies rated "A+" (Superior) by AM Best. Through independent agents, the insurance companies offer standard and specialty insurance for commercial and personal risks and flood insurance through the National Flood Insurance Program's Write Your Own Program. Selective has been honored and awarded for its unique position as a leading insurance group and employer of choice, including listing in the Fortune 1000 and three consecutive years as a certified Great Place to Work®. For more information about Selective, visit www.Selective.com.

1Reconciliation of Net Income Available to Common Stockholders to Non-GAAP Operating Income and Certain Other Non-GAAP Measures

Non-GAAP operating income, non-GAAP operating income per diluted common share, and non-GAAP operating return on common equity differ from net income available to common stockholders, net income available to common stockholders per diluted common share, and return on common equity, respectively, by the exclusion of after-tax net realized and unrealized gains and losses on investments included in net income. Adjusted book value per common share differs from book value per common share by the exclusion of total after-tax unrealized gains and losses on investments included in accumulated other comprehensive (loss) income. These non-GAAP measures are used as important financial measures by management, 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 gains and losses on investments could distort the analysis of trends. These operating measurements are not intended as a substitute for net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share to non-GAAP operating income, non-GAAP operating income per diluted common share, non-GAAP operating return on common equity, and adjusted book value per common share, respectively, are provided in the tables below.

Note: All amounts included in this release exclude intercompany transactions.

Reconciliation of Net Income Available to Common Stockholders to Non-GAAP Operating Income

$ in millions	Quarter ended March 31,
	2023		2022
Net income available to common stockholders	$	90.3	54.0
Net realized and unrealized investment (gains) losses included in net income, before tax	(3.3)		40.4
Tax on reconciling items	0.7		(8.5)
Non-GAAP operating income	$	87.6	85.9

Reconciliation of Net Income Available to Common Stockholders per Diluted Common Share to Non-GAAP Operating Income per Diluted Common Share

	Quarter ended March 31,
	2023		2022
Net income available to common stockholders per diluted common share	$	1.48	0.89
Net realized and unrealized investment (gains) losses included in net income, before tax	(0.05)		0.66
Tax on reconciling items	0.01		(0.14)
Non-GAAP operating income per diluted common share	$	1.44	1.41

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Reconciliation of Return on Common Equity to Non-GAAP Operating Return on Common Equity

	Quarter ended March 31,
	2023		2022
Return on Common Equity	15.1	%	8.1
Net realized and unrealized investment (gains) losses included in net income, before tax	(0.6)		6.0
Tax on reconciling items	0.1		(1.3)
Non-GAAP Operating Return on Common Equity	14.6	%	12.8

Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share

	Quarter ended March 31,
	2023		2022
Book value per common share	$	40.82	42.73
Total unrealized investment (gains) losses included in accumulated other comprehensive (loss) income, before tax	7.32		1.35
Tax on reconciling items	(1.53)		(0.28)
Adjusted book value per common share	46.61		43.80

Note: Amounts in the tables above may not foot due to rounding.

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Forward-Looking Statements

Certain statements in this report, 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 include, without limitation:

•Difficult conditions in global capital markets, the banking sector, commercial real estate, and the economy, including prolonged higher inflation, could increase loss costs and negatively impact investment portfolios;

•Deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and interest rate fluctuations;

•Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus;

•The adequacy of our loss reserves and loss expense reserves;

•Frequency and severity of catastrophic events, including natural events such as hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest;

•Adverse market, governmental, regulatory, legal, or judicial conditions or actions;

•The geographic concentration of our business in the eastern portion of the United States;

•The cost, terms and conditions, and availability of reinsurance;

•Our ability to collect on reinsurance and the solvency of our reinsurers;

•The impact of changes in U.S. trade policies and imposition of tariffs on imports that may lead to higher than anticipated inflationary trends for our loss and loss expenses;

•Related to COVID-19:

◦We have been successful to date in defending against payment of COVID-19-related business interruption losses based on our policies' terms, conditions, and exclusions. However, should the highest courts determine otherwise, our loss and loss expenses may increase, our related reserves may not be adequate, and our financial condition and liquidity may be materially impacted.

◦We cannot predict the amount our premiums may be reduced, or the impact on our underwriting results, from any future (i) voluntary premium credits on in-force commercial and personal automobile policies, (ii) state insurance commissioner, or other regulatory directives, to implement premium-based credit in lines other than commercial and personal automobile, (iii) voluntary efforts or directives from various state insurance regulators to extend individualized payment flexibility or suspend policy cancellation, late payment notices, and late or reinstatement fees, or (iv) litigation brought by policyholders to recover premiums they allege were excessive during the period of any governmental directive.

•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 influences insurance loss costs, premiums and investment valuation;

•Uncertainties related to insurance premium rate increases and business retention;

•Changes in insurance regulations that impact our ability to write and/or cease writing insurance policies in one or more states;

•The effects of data privacy or cyber security laws and regulations on our operations;

•Major defect or failure in our internal controls or information technology and application systems that result in harm to our brand in the marketplace, increased senior executive focus on crisis and reputational management issues and/or increased expenses, particularly if we experience a significant privacy breach;

•Potential tax or federal financial regulatory reform provisions that could pose certain risks to our operations;

•Our ability to maintain favorable ratings from rating agencies, including AM Best, Standard & Poor’s, Moody’s, and Fitch;

•Our entry into new markets and businesses; and

•Other risks and uncertainties we identify in filings with the United States Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K and other periodic reports.

These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge any time.

Selective’s SEC filings can be accessed through the Investors page of Selective’s website, www.Selective.com, or through the SEC’s EDGAR Database at www.sec.gov (Selective EDGAR CIK No. 0000230557).

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Investor Contact: Haley Chrobock 973-948-9588 Investor.Relations@Selective.com	Media Contact: Jamie M. Beal 973-948-1234 Jamie.Beal@Selective.com
Selective Insurance Group, Inc. 40 Wantage Avenue Branchville, New Jersey 07890 www.Selective.com

8

EX-99.2

Exhibit 99.2

FINANCIAL SUPPLEMENT

FIRST QUARTER 2023

Forward-Looking Statements

Certain statements in this report, 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 include, without limitation:

•Difficult conditions in global capital markets, the banking sector, commercial real estate, and the economy, including prolonged higher inflation, could increase loss costs and negatively impact investment portfolios;

•Deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and interest rate fluctuations;

•Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus;

•The adequacy of our loss reserves and loss expense reserves;

•Frequency and severity of catastrophic events, including natural events such as hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest;

•Adverse market, governmental, regulatory, legal, or judicial conditions or actions;

•The geographic concentration of our business in the eastern portion of the United States;

•The cost, terms and conditions, and availability of reinsurance;

•Our ability to collect on reinsurance and the solvency of our reinsurers;

•The impact of changes in U.S. trade policies and imposition of tariffs on imports that may lead to higher than anticipated inflationary trends for our loss and loss expenses;

•Related to COVID-19:

◦We have been successful to date in defending against payment of COVID-19-related business interruption losses based on our policies' terms, conditions, and exclusions. However, should the highest courts determine otherwise, our loss and loss expenses may increase, our related reserves may not be adequate, and our financial condition and liquidity may be materially impacted.

◦We cannot predict the amount our premiums may be reduced, or the impact on our underwriting results, from any future (i) voluntary premium credits on in-force commercial and personal automobile policies, (ii) state insurance commissioner, or other regulatory directives, to implement premium-based credit in lines other than commercial and personal automobile, (iii) voluntary efforts or directives from various state insurance regulators to extend individualized payment flexibility or suspend policy cancellation, late payment notices, and late or reinstatement fees, or (iv) litigation brought by policyholders to recover premiums they allege were excessive during the period of any governmental directive.

•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 influences insurance loss costs, premiums and investment valuation;

•Uncertainties related to insurance premium rate increases and business retention;

•Changes in insurance regulations that impact our ability to write and/or cease writing insurance policies in one or more states;

•The effects of data privacy or cyber security laws and regulations on our operations;

•Major defect or failure in our internal controls or information technology and application systems that result in harm to our brand in the marketplace, increased senior executive focus on crisis and reputational management issues and/or increased expenses, particularly if we experience a significant privacy breach;

•Potential tax or federal financial regulatory reform provisions that could pose certain risks to our operations;

•Our ability to maintain favorable ratings from rating agencies, including AM Best, Standard & Poor’s, Moody’s, and Fitch;

•Our entry into new markets and businesses; and

•Other risks and uncertainties we identify in filings with the United States Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K and other periodic reports.

These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge any time.

Selective’s SEC filings can be accessed through the Investors page of Selective’s website, www.Selective.com, or through the SEC’s EDGAR Database at www.sec.gov (Selective EDGAR CIK No. 0000230557).

Selective Insurance Group, Inc. & Consolidated Subsidiaries

TABLE OF CONTENTS

	Page
Consolidated Financial Highlights	1
Consolidated Statements of Operations	2
Consolidated Balance Sheets	3
Financial Metrics	4
Consolidated Insurance Operations Statement of Operations	5
Standard Commercial Lines Statement of Operations and Supplemental Data	6
Standard Commercial Lines GAAP Line of Business Results	7
Standard Personal Lines Statement of Operations and Supplemental Data	8
Standard Personal Lines GAAP Line of Business Results	9
Excess and Surplus Lines Statement of Operations and Supplemental Data	10
Excess and Surplus Lines GAAP Line of Business Results	11
Consolidated Investment Income	12
Consolidated Composition of Invested Assets	13
Credit Quality of Invested Assets	14
Reconciliation of Net Income Available to Common Stockholders to Non-GAAP Operating Income and Certain Other Non-GAAP Measures	15
Ratings and Contact Information	16

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

		Quarter ended
		Mar. 31,			Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ and shares in millions, except per share data)		2023			2022	2022	2022	2022
For Period Ended
	Gross premiums written	$	1,138.2		988.3	1,047.1	1,059.1	1,006.4
	Net premiums written	999.8			849.7	903.4	930.7	889.8
	Change in net premiums written, from comparable prior year period	12		%	14	11	12	11
	Underwriting income (loss), before-tax	$	39.2		46.1	27.1	37.7	55.8
	Net investment income earned, before-tax	91.5			81.4	63.9	70.2	72.6
	Net realized and unrealized investment gains (losses), before-tax	3.3			(5.9)	(25.7)	(42.9)	(40.4)
	Net income	$	92.6		86.5	42.5	39.5	56.3
	Net income available to common stockholders(1)	90.3			84.2	40.2	37.2	54.0
	Non-GAAP operating income(2)	87.6			88.9	60.5	71.1	85.9
At Period End
	Total assets	11,015.0			10,802.3	10,520.5	10,317.7	10,310.5
	Total invested assets	8,029.4			7,837.5	7,536.1	7,585.9	7,774.7
	Stockholders' equity	2,669.4			2,527.6	2,427.5	2,594.1	2,778.2
	Common stockholders' equity(3)	2,469.4			2,327.6	2,227.5	2,394.1	2,578.2
	Common shares outstanding	60.5			60.3	60.3	60.3	60.3
Per Share and Share Data
	Net income available to common stockholders per common share (diluted)	$	1.48		1.38	0.66	0.61	0.89
	Non-GAAP operating income per common share (diluted)(2)	1.44			1.46	0.99	1.17	1.41
	Weighted average common shares outstanding (diluted)	60.9			60.9	60.8	60.8	60.8
	Book value per common share	$	40.82		38.57	36.96	39.68	42.73
	Adjusted book value per common share(2)	46.61			45.49	44.59	44.18	43.80
	Dividends paid per common share	0.30			0.30	0.28	0.28	0.28
Financial Ratios
	Loss and loss expense ratio	62.9		%	62.4	64.1	62.9	60.8
	Underwriting expense ratio	32.6			32.1	32.6	32.5	32.1
	Dividends to policyholders ratio	0.2			0.2	0.1	0.1	0.2
	GAAP combined ratio	95.7		%	94.7	96.8	95.5	93.1
	Return on common stockholders' equity ("ROE")	15.1			14.8	7.0	6.0	8.1
	Non-GAAP operating ROE(2)	14.6			15.6	10.5	11.4	12.8
	Debt to total capitalization	15.9			16.6	17.2	16.3	15.4
	Net premiums written to policyholders' surplus	1.46			1.44	1.45	1.41	1.36
	Invested assets per dollar of common stockholders' equity	$	3.25		3.37	3.38	3.17	3.02
(1)	Net income available to common stockholders is net income reduced by preferred stock dividends.
(2)	Non-GAAP measure. Refer to Page 15 for definition.
(3)	Excludes equity related to preferred stock.

Page 1

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

		Quarter ended
		Mar. 31,		Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ and shares in millions, except per share data)		2023		2022	2022	2022	2022
Revenues
	Net premiums earned	$	902.3	872.8	853.9	834.4	812.3
	Net investment income earned	91.5		81.4	63.9	70.2	72.6
	Net realized and unrealized gains (losses)	3.3		(5.9)	(25.7)	(42.9)	(40.4)
	Other income	2.6		3.8	2.9	3.0	1.5
	Total revenues	999.8		952.2	895.0	864.8	846.1
Expenses
	Loss and loss expense incurred	567.4		544.8	547.8	524.9	494.2
	Amortization of deferred policy acquisition costs	189.8		183.6	179.0	173.4	169.8
	Other insurance expenses	108.6		102.0	102.8	101.5	94.0
	Interest expense	7.2		7.2	7.2	7.3	7.2
	Corporate expenses	12.1		6.7	5.5	7.9	11.0
	Total expenses	885.1		844.4	842.4	814.9	776.2
Income before federal income tax		114.8		107.8	52.6	49.9	69.9
Federal income tax expense		22.2		21.2	10.1	10.4	13.6
Net Income		92.6		86.5	42.5	39.5	56.3
Preferred stock dividends		2.3		2.3	2.3	2.3	2.3
Net income available to common stockholders		90.3		84.2	40.2	37.2	54.0
Net realized and unrealized investment (gains) losses, after tax(1)		(2.6)		4.7	20.3	33.9	31.9
Non-GAAP operating income(2)		$	87.6	88.9	60.5	71.1	85.9
Weighted average common shares outstanding (diluted)		60.9		60.9	60.8	60.8	60.8
Net income available to common stockholders per common share (diluted)		$	1.48	1.38	0.66	0.61	0.89
Non-GAAP operating income per common share (diluted)(2)		$	1.44	1.46	0.99	1.17	1.41
(1)	Amounts are provided to reconcile net income available to common stockholders to non-GAAP operating income.
(2)	Non-GAAP measure. Refer to Page 15 for definition.
	Note: Amounts may not foot due to rounding.

Page 2

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)

			Mar. 31,		Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ in millions, except per share data)			2023		2022	2022	2022	2022
ASSETS
Investments
	Fixed income securities, held-to-maturity, net of allowance for credit losses		$	24.7	31.2	33.0	32.1	33.0
	Fixed income securities, available-for-sale, at fair value, net of allowance for credit losses		6,964.5		6,612.1	6,472.1	6,439.3	6,598.8
	Commercial mortgage loans, net of allowance for credit losses		157.2		149.2	145.2	137.2	115.9
	Equity securities, at fair value		132.2		162.0	183.9	258.5	344.6
	Short-term investments		302.8		440.5	269.3	289.2	256.7
	Alternative investments		380.0		371.3	367.8	373.3	368.0
	Other investments		68.1		71.2	64.8	56.2	57.7
		Total investments	8,029.4		7,837.5	7,536.1	7,585.9	7,774.7
Cash			0.1		—	0.5	0.4	0.4
Restricted cash			35.5		25.2	8.5	7.2	17.5
Accrued investment income			57.3		59.2	54.0	50.4	48.4
Premiums receivable, net of allowance for credit losses			1,154.2		1,085.7	1,113.5	1,117.4	1,011.5
Reinsurance recoverable, net of allowance for credit losses			667.0		782.8	713.1	572.2	577.4
Prepaid reinsurance premiums			174.6		172.4	178.7	174.6	175.0
Current federal income tax			—		3.5	24.6	15.6	—
Deferred federal income tax			158.1		172.7	164.6	109.5	55.3
Property and equipment, net of accumulated depreciation and amortization			83.4		84.3	85.3	83.4	83.2
Deferred policy acquisition costs			387.9		368.6	370.9	359.4	341.7
Goodwill			7.8		7.8	7.8	7.8	7.8
Other assets			259.5		202.5	262.8	234.0	217.7
		Total assets	$	11,015.0	10,802.3	10,520.5	10,317.7	10,310.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Reserve for loss and loss expense			$	5,099.5	5,144.8	4,965.3	4,722.2	4,644.4
Unearned premiums			2,092.4		1,992.8	2,022.2	1,968.6	1,872.7
Long-term debt			504.2		504.7	505.2	505.1	505.6
Current federal income tax			20.3		—	—	—	16.5
Deferred federal income tax			—		—	—	—	—
Accrued salaries and benefits			88.8		115.2	112.2	102.5	90.6
Other liabilities			540.5		517.2	488.1	425.2	402.6
		Total liabilities	$	8,345.6	8,274.7	8,092.9	7,723.6	7,532.3
Stockholders' Equity
Preferred stock of $0 par value per share			$	200.0	200.0	200.0	200.0	200.0
Common stock of $2 par value per share			210.1		209.7	209.6	209.5	209.3
Additional paid-in capital			502.7		493.5	486.2	481.4	472.8
Retained earnings			2,821.6		2,749.7	2,683.8	2,660.6	2,640.4
Accumulated other comprehensive income (loss)			(430.3)		(498.0)	(525.0)	(336.4)	(129.8)
Treasury stock, at cost			(634.7)		(627.3)	(627.0)	(621.0)	(614.5)
		Total stockholders' equity	$	2,669.4	2,527.6	2,427.5	2,594.1	2,778.2
Commitments and contingencies
		Total liabilities and stockholders' equity	$	11,015.0	10,802.3	10,520.5	10,317.7	10,310.5
Note: Amounts may not foot due to rounding.

Page 3

Selective Insurance Group, Inc. & Consolidated Subsidiaries

FINANCIAL METRICS

(Unaudited)

			Quarter ended
			Mar. 31,			Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ and shares in millions, except per share data)			2023			2022	2022	2022	2022
Book value per common share
		Common stockholders' equity	$	2,469.4		2,327.6	2,227.5	2,394.1	2,578.2
		Common shares issued and outstanding, at period end	60.5			60.3	60.3	60.3	60.3
		Book value per common share	$	40.82		38.57	36.96	39.68	42.73
		Adjusted book value per common share(2)	46.61			45.49	44.59	44.18	43.80
Financial results (after-tax)
		Underwriting income (loss)	31.0			36.4	21.4	29.8	44.1
		Net investment income	73.1			65.5	51.5	56.7	58.5
		Interest expense and preferred stock dividends	(8.0)			(8.0)	(8.0)	(8.0)	(8.0)
		Corporate expense	(8.4)			(5.0)	(4.5)	(7.3)	(8.7)
		Net realized and unrealized investment gains (losses)	2.6			(4.7)	(20.3)	(33.9)	(31.9)
		Total after-tax net income available to common stockholders	90.3			84.2	40.2	37.2	54.0
Return on average equity
		Insurance segments	5.2		%	6.4	3.7	4.8	6.6
		Net investment income	12.2			11.5	8.9	9.1	8.7
		Interest expense and preferred stock dividends	(1.3)			(1.4)	(1.4)	(1.3)	(1.2)
		Corporate expense	(1.5)			(0.9)	(0.7)	(1.2)	(1.3)
		Net realized and unrealized investment gains (losses)	0.5			(0.8)	(3.5)	(5.4)	(4.7)
		ROE	15.1			14.8	7.0	6.0	8.1
		Net realized and unrealized (gains) losses(1)	(0.5)			0.8	3.5	5.4	4.7
		Non-GAAP Operating ROE(2)	14.6		%	15.6	10.5	11.4	12.8
Debt and total capitalization
	Notes payable:
		3.03% Borrowings from Federal Home Loan Bank of Indianapolis	60.0			60.0	60.0	60.0	60.0
		7.25% Senior Notes	49.8			49.8	49.8	49.8	49.8
		6.70% Senior Notes	99.3			99.3	99.3	99.3	99.2
		5.375% Senior Notes	292.0			291.9	291.8	291.7	291.7
		Finance Lease Obligations	3.1			3.7	4.3	4.3	4.9
	Total debt		504.2			504.7	505.2	505.1	505.6
	Stockholders' equity		2,669.4			2,527.6	2,427.5	2,594.1	2,778.2
	Total capitalization		$	3,173.6		3,032.2	2,932.7	3,099.2	3,283.8
	Ratio of debt to total capitalization		15.9		%	16.6	17.2	16.3	15.4
Policyholders' surplus			$	2,518.3		2,473.7	2,386.2	2,404.4	2,418.6
(1)		Amounts are provided to reconcile ROE to non-GAAP operating ROE.
(2)		Non-GAAP measure. Refer to Page 15 for definition.
		Note: Amounts may not foot due to rounding.

Page 4

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED INSURANCE OPERATIONS

STATEMENT OF OPERATIONS

(Unaudited)

		Quarter ended
		Mar. 31,			Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ in millions)		2023			2022	2022	2022	2022
Underwriting results
Net premiums written		$	999.8		849.7	903.4	930.7	889.8
Change in net premiums written, from comparable prior year period		12		%	14	11	12	11
Net premiums earned		$	902.3		872.8	853.9	834.4	812.3
Losses and loss expenses incurred		567.4			544.8	547.8	524.9	494.2
Net underwriting expenses incurred		293.9			280.5	278.0	270.8	260.6
Dividends to policyholders		1.8			1.3	0.9	1.0	1.6
GAAP underwriting income (loss)		$	39.2		46.1	27.1	37.7	55.8
Net catastrophe losses		$	55.3		45.7	34.1	45.6	20.6
(Favorable) prior year casualty reserve development		(13.0)			(38.0)	(16.0)	(12.0)	(20.0)
Underwriting ratios
Loss and loss expense ratio		62.9		%	62.4	64.1	62.9	60.8
Underwriting expense ratio		32.6			32.1	32.6	32.5	32.1
Dividends to policyholders ratio		0.2			0.2	0.1	0.1	0.2
	Combined ratio	95.7		%	94.7	96.8	95.5	93.1
Net catastrophe losses		6.1		pts	5.2	4.0	5.5	2.5
(Favorable) prior year casualty reserve development		(1.4)			(4.4)	(1.9)	(1.4)	(2.5)
	Combined ratio before net catastrophe losses	89.6		%	89.5	92.8	90.0	90.6
	Combined ratio before net catastrophe losses and prior year casualty development	91.0		%	93.9	94.7	91.4	93.1
Other Statistics
Non-catastrophe property loss and loss expenses		$	148.2		161.4	167.5	138.6	150.4
Non-catastrophe property loss and loss expenses		16.4		pts	18.5	19.6	16.6	18.5
Direct new business		$	216.9		188.2	184.3	182.0	177.2
Renewal pure price increases		6.6		%	5.3	5.3	5.0	4.6
Note: Amounts may not foot due to rounding.

Page 5

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD COMMERCIAL LINES

STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA

(Unaudited)

		Quarter ended
		Mar. 31,			Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ in millions)		2023			2022	2022	2022	2022
Underwriting results
Net premiums written		$	813.3		676.6	727.5	760.3	737.6
Change in net premiums written, from comparable prior year period		10		%	13	11	12	11
Net premiums earned		$	731.6		705.7	692.4	680.2	661.5
Losses and loss expenses incurred		447.3			439.3	438.3	406.9	399.5
Net underwriting expenses incurred		243.6			232.9	230.7	225.6	218.0
Dividends to policyholders		1.8			1.3	0.9	1.0	1.6
GAAP underwriting income (loss)		$	38.9		32.1	22.5	46.7	42.4
Net catastrophe losses		$	35.1		40.2	18.2	22.3	14.9
(Favorable) prior year casualty reserve development		(10.0)			(33.0)	(16.0)	(12.0)	(20.0)
Underwriting ratios
Loss and loss expense ratio		61.2		%	62.3	63.4	59.7	60.4
Underwriting expense ratio		33.3			33.0	33.3	33.2	33.0
Dividends to policyholders ratio		0.2			0.2	0.1	0.2	0.2
	Combined ratio	94.7		%	95.5	96.8	93.1	93.6
Net catastrophe losses		4.8		pts	5.7	2.6	3.3	2.3
(Favorable) prior year casualty reserve development		(1.4)			(4.7)	(2.3)	(1.8)	(3.0)
	Combined ratio before net catastrophe losses	89.9		%	89.8	94.2	89.8	91.3
	Combined ratio before net catastrophe losses and prior year casualty development	91.3		%	94.5	96.5	91.6	94.3
Other Statistics
Non-catastrophe property loss and loss expenses		$	105.5		116.5	129.8	99.2	115.7
Non-catastrophe property loss and loss expenses		14.4		pts	16.5	18.7	14.6	17.5
Direct new business		$	147.7		126.8	128.2	129.0	128.4
Renewal pure price increases		7.0		%	5.6	5.8	5.3	4.8
Retention		86			86	86	86	87
Note: Amounts may not foot due to rounding.

Page 6

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD COMMERCIAL LINES

GAAP LINE OF BUSINESS RESULTS

(Unaudited)

	Quarter ended March 31, 2023										Quarter ended March 31, 2022
	General			Commercial	Commercial	Workers					General	Commercial	Commercial	Workers
($ in millions)	Liability			Auto	Property	Compensation	BOP	Bonds	Other	Total	Liability	Auto	Property	Compensation	BOP	Bonds	Other	Total
Net premiums written	$	272.1		240.2	151.6	93.4	36.6	11.8	7.6	813.3	244.1	212.6	130.9	97.5	33.1	12.6	6.8	737.6
Net premiums earned	243.3			217.4	135.3	84.2	33.2	11.4	6.9	731.6	216.3	193.8	120.1	84.7	30.0	10.4	6.2	661.5
Loss and loss expense ratio	56.0		%	74.3	55.1	54.0	80.3	24.8	(0.3)	61.2	53.5	74.8	63.4	54.1	63.3	(20.6)	—	60.4
Underwriting expense ratio	32.8			31.0	37.3	27.4	38.6	57.4	54.6	33.3	33.1	30.7	36.4	25.8	38.0	62.0	56.0	33.0
Dividend ratio	0.1			0.1	0.2	1.3	—	—	0.1	0.2	0.1	0.1	0.1	1.3	—	—	—	0.2
Combined ratio	88.9		%	105.4	92.6	82.7	118.9	82.2	54.4	94.7	86.7	105.6	99.9	81.2	101.3	41.4	56.0	93.6
Underwriting income (loss)	27.1			(11.7)	10.1	14.6	(6.3)	2.0	3.1	38.9	28.8	(10.9)	0.2	15.9	(0.4)	6.1	2.7	42.4
Note: Amounts may not foot due to rounding.

Page 7

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD PERSONAL LINES

STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA

(Unaudited)

		Quarter ended
		Mar. 31,			Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ in millions)		2023			2022	2022	2022	2022
Underwriting results
Net premiums written		$	85.3		84.6	86.8	82.6	65.1
Change in net premiums written, from comparable prior year period		31		%	20	11	5	—
Net premiums earned		$	81.9		77.8	75.6	73.3	72.6
Losses and loss expenses incurred		73.2			58.7	57.3	66.6	48.5
Net underwriting expenses incurred		21.8			19.0	19.8	19.1	17.6
GAAP underwriting income (loss)		$	(13.1)		—	(1.4)	(12.4)	6.5
Net catastrophe losses		$	14.6		4.1	11.3	21.1	4.3
Unfavorable prior year casualty reserve development		2.0			—	—	—	—
Underwriting ratios
Loss and loss expense ratio		89.4		%	75.4	75.7	90.8	66.8
Underwriting expense ratio		26.6			24.5	26.1	26.1	24.2
	Combined ratio	116.0		%	99.9	101.8	116.9	91.0
Net catastrophe losses		17.9		pts	5.3	14.9	28.7	6.0
Unfavorable prior year casualty reserve development		2.4			—	—	—	—
	Combined ratio before net catastrophe losses	98.1		%	94.6	86.9	88.2	85.0
	Combined ratio before net catastrophe losses and prior year casualty development	95.7		%	94.6	86.9	88.2	85.0
Other Statistics
Non-catastrophe property loss and loss expenses		$	33.8		35.6	29.0	26.9	25.6
Non-catastrophe property loss and loss expenses		41.3		pts	45.7	38.4	36.7	35.2
Direct new business		$	26.3		22.4	17.4	13.5	9.6
Renewal pure price increases		1.8		%	1.0	0.5	0.6	0.6
Retention		87			87	85	85	84
Note: Amounts may not foot due to rounding.

Page 8

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD PERSONAL LINES

GAAP LINE OF BUSINESS RESULTS

(Unaudited)

	Quarter ended March 31, 2023						Quarter ended March 31, 2022
	Personal						Personal
($ in millions)	Auto			Homeowners	Other	Total	Auto	Homeowners	Other	Total
Net premiums written	$	49.0		34.3	2.0	85.3	37.4	26.1	1.6	65.1
Net premiums earned	44.9			35.0	1.9	81.9	39.7	31.2	1.7	72.6
Loss and loss expense ratio	87.3		%	95.7	23.8	89.4	74.8	58.9	26.7	66.8
Underwriting expense ratio	30.1			29.7	(110.6)	26.6	29.6	29.5	(194.0)	24.2
Combined ratio	117.4		%	125.4	(86.8)	116.0	104.4	88.4	(167.3)	91.0
Underwriting income (loss)	(7.8)			(8.9)	3.6	(13.1)	(1.7)	3.6	4.6	6.5
Note: Amounts may not foot due to rounding.

Page 9

Selective Insurance Group, Inc. & Consolidated Subsidiaries

EXCESS AND SURPLUS LINES

STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA

(Unaudited)

		Quarter ended
		Mar. 31,			Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ in millions)		2023			2022	2022	2022	2022
Underwriting results
Net premiums written		$	101.2		88.5	89.1	87.9	87.1
Change in net premiums written, from comparable prior year period		16		%	14	9	13	29
Net premiums earned		$	88.9		89.3	85.8	80.9	78.2
Losses and loss expenses incurred		46.9			46.8	52.3	51.4	46.2
Net underwriting expenses incurred		28.6			28.5	27.5	26.1	25.0
GAAP underwriting income (loss)		$	13.3		14.0	6.0	3.4	6.9
Net catastrophe losses		$	5.6		1.4	4.6	2.2	1.3
(Favorable) prior year casualty reserve development		(5.0)			(5.0)	—	—	—
Underwriting ratios
Loss and loss expense ratio		52.8		%	52.3	61.0	63.5	59.1
Underwriting expense ratio		32.2			32.0	32.0	32.3	32.0
	Combined ratio	85.0		%	84.3	93.0	95.8	91.1
Net catastrophe losses		6.3		pts	1.6	5.4	2.8	1.7
(Favorable) prior year casualty reserve development		(5.6)			(5.6)	—	—	—
	Combined ratio before net catastrophe losses	78.7		%	82.7	87.6	93.0	89.4
	Combined ratio before net catastrophe losses and prior year casualty development	84.3		%	88.3	87.6	93.0	89.4
Other Statistics
Non-catastrophe property loss and loss expenses		$	8.9		9.4	8.7	12.5	9.1
Non-catastrophe property loss and loss expenses		10.1		pts	10.5	10.1	15.4	11.6
Direct new business		$	42.9		39.0	38.6	39.5	39.2
Renewal pure price increases		7.4		%	7.9	6.7	6.9	7.7
Note: Amounts may not foot due to rounding.

Page 10

Selective Insurance Group, Inc. & Consolidated Subsidiaries

EXCESS & SURPLUS LINES

GAAP LINE OF BUSINESS RESULTS

(Unaudited)

	Quarter ended March 31, 2023					Quarter ended March 31, 2022
($ in millions)	Casualty			Property	Total	Casualty	Property	Total
Net premiums written	$	68.7		32.5	101.2	61.9	25.2	87.1
Net premiums earned	60.8			28.0	88.9	54.6	23.5	78.2
Loss and loss expense ratio	53.3		%	51.8	52.8	65.6	44.1	59.1
Underwriting expense ratio	32.3			31.9	32.2	32.7	30.4	32.0
Combined ratio	85.6		%	83.7	85.0	98.3	74.5	91.1
Underwriting income (loss)	8.8			4.6	13.3	0.9	6.0	6.9
Note: Amounts may not foot due to rounding.

Page 11

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED INVESTMENT INCOME

(Unaudited)

		Quarter ended
		Mar. 31,			Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ in millions)		2023			2022	2022	2022	2022
Net investment income
Fixed income securities
	Taxable	$	75.4		69.2	61.9	55.4	47.0
	Tax-exempt	4.7			6.4	6.4	6.7	6.9
Total fixed income securities		80.1			75.6	68.2	62.1	53.9
Commercial mortgage loans		2.0			1.8	1.6	1.2	1.0
Equity securities		1.2			5.9	2.6	2.6	2.4
Alternative investments		7.8			0.2	(5.6)	9.3	19.1
Other investments		—			0.2	0.1	(0.2)	0.2
Short-term investments		4.7			2.3	1.2	0.4	0.1
Investment income		95.7			86.0	68.1	75.4	76.7
Investment expenses		(4.2)			(4.6)	(4.2)	(5.2)	(4.1)
Investment tax expense		(18.5)			(16.0)	(12.4)	(13.6)	(14.1)
Total net investment income, after-tax		$	73.1		65.5	51.5	56.7	58.5
Net realized and unrealized investment gains (losses), pre-tax		$	3.3		(5.9)	(25.7)	(42.9)	(40.4)
Change in unrealized gains (losses) recognized in other comprehensive income, pre-tax		$	84.9		54.7	(239.2)	(261.9)	(310.4)
Average investment yields
	Fixed income investments, pre-tax	4.7		%	4.6	4.2	3.8	3.2
	Fixed income investments, after-tax	3.8			3.7	3.4	3.1	2.6
	Total portfolio, pre-tax	4.6		%	4.2	3.4	3.7	3.7
	Total portfolio, after-tax	3.7			3.4	2.7	3.0	3.0
Effective tax rate on net investment income		20.2		%	19.6	19.3	19.3	19.4
New money purchase rates for fixed income investments, pre-tax		5.5			6.1	5.1	4.5	3.3
New money purchase rates for fixed income investments, after-tax		4.4			4.9	4.1	3.6	2.6
Effective duration of fixed income investments including short-term (in years)		4.1			4.1	4.2	4.1	4.1
Note: Amounts may not foot due to rounding.

Page 12

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED COMPOSITION OF INVESTED ASSETS

(Unaudited)

	Mar. 31,					Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2023					2022		2022		2022		2022
($ in millions)	Amount		Percent			Amount	Percent	Amount	Percent	Amount	Percent	Amount	Percent
Fixed income securities, at fair value	$	6,988.0	87		%	6,641.9	85	6,503.6	86	6,470.6	85	6,631.4	85
Commercial mortgage loans, at fair value	147.5		2			139.2	2	136.7	2	130.0	2	113.1	1
Total fixed income investments	7,135.6		89			6,781.2	87	6,640.2	88	6,600.6	87	6,744.6	87
Short-term investments	302.8		4			440.5	6	269.3	4	289.2	4	256.7	3
Total fixed income and short-term investments	7,438.3		93			7,221.6	92	6,909.5	92	6,889.8	91	7,001.3	90
Equity securities, at fair value	132.2		2			162.0	2	183.9	2	258.5	3	344.6	4
Alternative investments	380.0		5			371.3	5	367.8	5	373.3	5	368.0	5
Other investments	68.1		1			71.2	1	64.8	1	56.2	1	57.7	1
Total investments	$	8,018.7	100		%	7,826.2	100	7,526.0	100	7,577.9	100	7,771.5	100
Fixed income investments, at carry value
U.S. government obligations	$	343.4	5		%	189.2	3	148.2	2	114.3	2	127.1	2
Foreign government obligations	9.9		—			9.6	—	13.8	—	15.3	—	16.7	—
Obligations of state and political subdivisions	682.1		10			921.4	14	971.0	15	1,069.7	16	1,128.9	17
Corporate securities	2,472.6		35			2,362.8	35	2,294.2	34	2,305.1	35	2,417.3	36
Collateralized loan obligations and other asset-backed securities	1,530.1		21			1,486.0	22	1,467.4	22	1,437.8	22	1,417.2	21
Residential mortgage-backed securities	1,301.7		18			1,059.8	16	1,016.1	15	911.8	14	878.0	13
Commercial mortgage-backed securities	649.4		9			614.4	9	594.3	9	617.5	9	646.7	10
Commercial mortgage loans	157.2		2			149.2	2	145.2	2	137.2	2	115.9	2
Total fixed income investments	$	7,146.4	100		%	6,792.5	100	6,650.3	100	6,608.6	100	6,747.8	100
Expected maturities of fixed income investments at carry value
Due in one year or less	$	362.4	5		%	337.3	5	331.0	5	339.4	5	405.0	6
Due after one year through five years	3,151.2		44			3,004.8	44	2,910.0	44	2,868.1	43	2,983.8	44
Due after five years through 10 years	2,861.0		40			2,658.4	39	2,469.6	37	2,511.6	38	2,475.0	37
Due after 10 years	771.8		11			792.0	12	939.7	14	889.6	13	884.0	13
Total fixed income investments	$	7,146.4	100		%	6,792.5	100	6,650.3	100	6,608.6	100	6,747.8	100
Weighted average credit quality of fixed income and short-term investments
Investment grade credit quality	$	7,167.0	96		%	6,962.8	96	6,658.1	96	6,637.3	96	6,725.8	96
Non-investment grade credit quality	271.3		4			258.9	4	251.4	4	252.5	4	275.4	4
Total fixed income and short-term investments, at fair value	$	7,438.3	100		%	7,221.6	100	6,909.5	100	6,889.8	100	7,001.3	100
Weighted average credit quality of fixed income and short-term investments	AA-					AA-		AA-		A+		A+
Alternative investments	March 31, 2023
							Current
	Number of		Original			Remaining	Market
Strategy	Funds		Commitment			Commitment	Value
Private equity	59		$	378.4		129.8	289.6
Private credit	16		160.9			89.0	53.4
Real assets	9		57.5			20.7	37.0
Total	84		$	596.9		239.6	380.0
Note: Amounts may not foot due to rounding.

Page 13

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CREDIT QUALITY OF INVESTED ASSETS

(Unaudited)

At March 31, 2023												Credit Rating
($ in millions)			Amortized Cost		Fair Value		% of Invested Assets		Yield to Worst	Effective Duration in Years	Average Life in Years	AAA			AA			A			BBB			Non-Investment Grade			Not Rated
Fixed income investments:
	U.S. government obligations		360		343		4.3		4.4	3.5	5.0	341			2			—			—			—			—
	Foreign government obligations		11		10		0.1		4.8	6.5	7.9	—			2			5			2			—			—
	State and municipal obligations		714		682		8.5		3.8	5.8	7.1	109			312			232			30			—			—
	Corporate securities		2,656		2,471		30.8		5.5	4.5	6.4	44			294			1,019			941			174			1
	Mortgage-backed securities:
		Residential mortgage-backed securities ("RMBS"):
		Agency RMBS	984		925		11.5		4.6	5.6	8.4	925			—			—			—			—			—
		Non-agency RMBS	412		377		4.7		5.8	4.5	6.5	271			37			69			—			—			—
		Total RMBS	1,396		1,302		16.2		4.9	5.3	7.9	1,196			37			69			—			—			—
		Commercial mortgage-backed securities	697		649		8.1		6.5	3.4	4.3	554			52			38			5			—			—
		Total mortgage-backed securities	2,093		1,951		24.3		5.4	4.6	6.7	1,750			88			108			5			—			—
	Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS"):
		Auto	61		60		0.7		7.0	2.1	2.3	54			—			1			4			—			—
		Aircraft	56		48		0.6		9.4	3.0	3.4	—			1			20			21			6			—
		CLOs	821		769		9.6		7.7	2.3	5.0	368			245			47			37			53			19
		Credit cards	8		8		0.1		6.6	2.9	3.3	7			—			1			—			—			—
		Other ABS	687		646		8.1		6.3	4.1	5.1	165			99			308			58			6			10
		Total CLOs and ABS	1,631		1,530		19.1		7.1	3.1	4.9	595			345			377			120			65			29
Total securitized assets			3,725		3,481		43.4		6.2	3.9	5.9	2,345			433			485			125			65			29
		Commercial mortgage loans	157		148		1.8		5.1	4.0	5.9	—			11			57			76			3			—
Total fixed income investments			7,623		7,136		89.0		5.6	4.3	6.1	2,839			1,054			1,798			1,173			242			29
		Short-term investments	303		303		3.8		4.8	0.0	0.0	301			2			—			—			—			—
		Total fixed income and short-term investments	7,926		7,438		92.8		5.6	4.1	5.9	3,140			1,056			1,798			1,173			242			29
Total fixed income securities and short-term investments by credit rating percentage												42.2		%	14.2		%	24.2		%	15.8		%	3.3		%	0.4		%
Equity securities:
	Common stock(1)		132		130		1.6		—	—	—	—			—			—			—			—			130
	Preferred stock		2		2		—		—	—	—	—			—			—			2			—			—
		Total equity securities	134		132		1.6		—	—	—	—			—			—			2			—			130
Alternative investments
		Private equity	290		290		3.6		—	—	—	—			—			—			—			—			290
		Private credit	53		53		0.7		—	—	—	—			—			—			—			—			53
		Real assets	37		37		0.5		—	—	—	—			—			—			—			—			37
		Total alternative investments	380		380		4.7		—	—	—	—			—			—			—			—			380
Other investments			68		68		0.8		—	—	—	—			—			—			—			—			68
Total invested assets			$	8,508	$	8,019	100.0	%	—	—	—	$	3,140		$	1,056		$	1,798		$	1,175		$	242		$	608
(1) Includes investments in exchange traded funds, mutual funds, business development corporations, and real estate investment trusts.
Note: Amounts may not foot due to rounding.

Page 14

Selective Insurance Group, Inc. & Consolidated Subsidiaries

RECONCILIATION OF NET INCOME AVAILABLE TO COMMON STOCKHOLDERS TO NON-GAAP OPERATING INCOME AND CERTAIN OTHER NON-GAAP MEASURES

(Unaudited)

	Quarter ended
	Mar. 31,			Dec. 31,	Sept. 30,	June 30,	Mar. 31,
($ in millions, except per share data)	2023			2022	2022	2022	2022
Reconciliation of net income available to common stockholders to non-GAAP operating income
Net income available to common stockholders	$	90.3		84.2	40.2	37.2	54.0
Net realized and unrealized investment (gains) losses included in net income, before tax	(3.3)			5.9	25.7	42.9	40.4
Tax on reconciling items	0.7			(1.2)	(5.4)	(9.0)	(8.5)
Non-GAAP operating income	$	87.6		88.9	60.5	71.1	85.9
Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share
Net income available to common stockholders per diluted common share	$	1.48		1.38	0.66	0.61	0.89
Net realized and unrealized investment (gains) losses included in net income, before tax	(0.05)			0.10	0.42	0.70	0.66
Tax on reconciling items	0.01			(0.02)	(0.09)	(0.14)	(0.14)
Non-GAAP operating income per diluted common share	$	1.44		1.46	0.99	1.17	1.41
Reconciliation of ROE to non-GAAP operating ROE
ROE	15.1		%	14.8	7.0	6.0	8.1
Net realized and unrealized investment (gains) losses included in net income, before tax	(0.6)			1.0	4.4	6.9	6.0
Tax on reconciling items	0.1			(0.2)	(0.9)	(1.5)	(1.3)
Non-GAAP operating ROE	14.6		%	15.6	10.5	11.4	12.8
Reconciliation of book value per common share to adjusted book value per common share
Book value per common share	$	40.82		38.57	36.96	39.68	42.73
Total unrealized investment losses included in accumulated other comprehensive income (loss), before tax	7.32			8.75	9.67	5.69	1.35
Tax on reconciling items	(1.53)			(1.83)	(2.04)	(1.19)	(0.28)
Adjusted book value per common share	$	46.61		45.49	44.59	44.18	43.80
Non-GAAP operating income, non-GAAP operating income per diluted common share, and non-GAAP operating return on common equity are measures comparable to net income available to common stockholders, net income available to common stockholders per diluted common share, and return on common equity, respectively, but excludes 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 used as important financial measures by management, 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 gains and losses on investments could distort the analysis of trends. These operating measurements are not intended as a substitute for net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share to non-GAAP operating income, non-GAAP operating income per diluted common share, non-GAAP operating return on common equity, and adjusted book value per common share, respectively, are provided in the tables above.
Note: Amounts may not foot due to rounding.

Page 15

Selective Insurance Group, Inc. & Consolidated Subsidiaries

RATINGS AND CONTACT INFORMATION

Address:	As of March 31, 2023
40 Wantage Avenue		AM Best	Standard & Poor's	Moody's	Fitch
Branchville, NJ 07890	Financial Strength Ratings:	A+	A	A2	A+
	Preferred Stock Rating:	n/a	BB+	Ba1	BBB-
Corporate Website:	Long-Term Debt Credit Rating:	a-	BBB	Baa2	BBB+
www.Selective.com
Investor Contact:	REGISTRAR AND TRANSFER AGENT
Haley Chrobock	EQ Shareowner Services
Investor Relations & Market Research Analyst	P.O. Box 64854
Phone: 973-948-9588	St. Paul, MN 55164
Investor.Relations@Selective.com	866-877-6351
Media Contact:
Jamie M. Beal
Vice President
Director of Communications
Phone: 973-948-1234
Jamie.Beal@Selective.com

Page 16

XML

Cover Document	May 03, 2023
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 03, 2023
Entity File Number	001-33067
Entity Registrant Name	SELECTIVE INSURANCE GROUP, INC.
Entity Central Index Key	0000230557
Entity Tax Identification Number	22-2168890
Entity Incorporation, State or Country Code	NJ
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
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $2 per share
Trading Symbol	SIGI
Security Exchange Name	NASDAQ
Depositary Shares
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