Selective Insurance Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Selective Insurance Group, Inc. has filed its 2023 10-K annual report detailing its financial performance and operations.</b>

AI Summary

SELECTIVE INSURANCE GROUP INC (SIGIP) filed a Annual Report (10-K) with the SEC on February 9, 2024. Selective Insurance Group, Inc. filed its annual report for the fiscal year ended December 31, 2023. The filing is a 10-K report, providing a comprehensive overview of the company's financial performance and condition. The company is classified under Standard Industrial Classification 6331: Fire, Marine & Casualty Insurance. The report covers the fiscal year from January 1, 2023, to December 31, 2023. The company's principal business address is 40 Wantage Avenue, Branchville, NJ 07890.

Why It Matters

For investors and stakeholders tracking SELECTIVE INSURANCE GROUP INC, this filing contains several important signals. This 10-K filing provides investors with detailed financial statements, risk factors, and management's discussion and analysis for the fiscal year 2023. Understanding the company's financial health, strategic initiatives, and potential risks outlined in this report is crucial for investment decisions in the property and casualty insurance sector.

Risk Assessment

Risk Level: medium — SELECTIVE INSURANCE GROUP INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies, indicating no immediate or extraordinary negative events, but the nature of the insurance industry carries inherent market and operational risks.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess the company's performance and outlook for the upcoming year.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240209 — Filing Date (Filed as of date)
• 6331 — SIC Code (Standard Industrial Classification)
• 222168890 — IRS Number (IRS Number)

Key Players & Entities

• SELECTIVE INSURANCE GROUP INC (company) — Filer name
• 40 WANTAGE AVENUE (location) — Business address
• BRANCHVILLE (location) — City in business address
• NJ (location) — State in business address
• 07890 (location) — ZIP code in business address
• SRI CORP (company) — Former company name

Forward-Looking Statements

• Selective Insurance Group Inc. will continue to operate primarily in the fire, marine, and casualty insurance sector. (SELECTIVE INSURANCE GROUP INC) — high confidence, target: 2025-12-31

FAQ

Industry Context

Selective Insurance Group operates in the Fire, Marine & Casualty Insurance industry, a sector subject to economic cycles, regulatory changes, and catastrophic events.

Regulatory Implications

As a publicly traded insurance company, Selective Insurance Group is subject to regulations from the SEC and state insurance departments, impacting its reporting and operational requirements.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and key balance sheet items.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic priorities.
3. Examine the Risk Factors section to understand potential challenges and their impact on the company.

Key Dates

• 2023-12-31: Fiscal Year End — The end date for the reporting period covered by the 10-K.
• 2024-02-09: Filing Date — The date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted, and a comparison to a previous filing is not available from the provided text.

Key Financial Figures

• $2 — ich registered Common Stock, par value $2 per share SIGI The Nasdaq Stock Market
• $17,000 — mium per policyholder was approximately $17,000. Standard Personal Lines, which repre
• $3,000 — mium per policyholder was approximately $3,000. Standard Personal Lines includes flood
• $4,600 — mium per policyholder was approximately $4,600. Investments, which represents 9% (in
• $5 million — of individual property claims losses to $5 million per risk and casualty claims to $2 mill
• $2 million — million per risk and casualty claims to $2 million per occurrence; and We maintain a con

Filing Documents

• sigi-20231231.htm (10-K) — 7166KB
• sigi-ex1014_12312023xq4.htm (EX-10.14) — 23KB
• sigi-ex1027_12312023xq4.htm (EX-10.27) — 155KB
• sigi-ex1028_12312023xq4.htm (EX-10.28) — 157KB
• sigi-ex21_12312023xq4.htm (EX-21) — 31KB
• sigi-ex231_12312023xq4.htm (EX-23.1) — 3KB
• sigi-ex241poa_12312023xq4x.htm (EX-24.1) — 4KB
• sigi-ex242poa_12312023xq4x.htm (EX-24.2) — 4KB
• sigi-ex243poa_12312023xq4x.htm (EX-24.3) — 5KB
• sigi-ex244poa_12312023xq4x.htm (EX-24.4) — 4KB
• sigi-ex245poa_12312023xq4x.htm (EX-24.5) — 4KB
• sigi-ex246poa_12312023xq4x.htm (EX-24.6) — 4KB
• sigi-ex247poa_12312023xq4x.htm (EX-24.7) — 4KB
• sigi-ex248poa_12312023xq4x.htm (EX-24.8) — 4KB
• sigi-ex249poa_12312023xq4x.htm (EX-24.9) — 4KB
• sigi-ex2410poa_12312023xq4.htm (EX-24.10) — 4KB
• sigi-ex2411poa_12312023xq4.htm (EX-24.11) — 5KB
• sigi-ex2412poa_12312023xq4.htm (EX-24.12) — 4KB
• sigi-ex311_12312023xq4.htm (EX-31.1) — 11KB
• sigi-ex312_12312023xq4.htm (EX-31.2) — 12KB
• sigi-ex321_12312023xq4.htm (EX-32.1) — 4KB
• sigi-ex322_12312023xq4.htm (EX-32.2) — 4KB
• sigi-ex971_12312023xq4.htm (EX-97.1) — 35KB
• sigi-ex991_12312023xq4.htm (EX-99.1) — 30KB
• sigi-20231231_g1.jpg (GRAPHIC) — 1063KB
• sigi-20231231_g2.gif (GRAPHIC) — 12KB
• sigi-20231231_g3.jpg (GRAPHIC) — 262KB
• 0000230557-24-000005.txt (&nbsp;) — 35021KB
• sigi-20231231.xsd (EX-101.SCH) — 144KB
• sigi-20231231_cal.xml (EX-101.CAL) — 194KB
• sigi-20231231_def.xml (EX-101.DEF) — 996KB
• sigi-20231231_lab.xml (EX-101.LAB) — 1557KB
• sigi-20231231_pre.xml (EX-101.PRE) — 1211KB
• sigi-20231231_htm.xml (XML) — 7986KB

Risk Factors

Item 1A. Risk Factors 23

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 34 Item 1C. C ybersecurity 34

Properties

Item 2. Properties 36

Legal Proceedings

Item 3. Legal Proceedings 36

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 36 PART II

Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36

Reserved

Item 6. Reserved 38

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Forward-looking Statements

Forward-looking Statements 38 Introduction 38 Critical Accounting Policies and Estimates 39 Financial Highlights of Results for Years Ended December 31, 2023, 2022, and 2021 47 Results of Operations and Related Information by Segment 50 Federal Income Taxes 64 Liquidity and Capital Resources 64

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 68

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 76 Consolidated Balance Sheets as of December 31, 2023 and 2022 78 Consolidated Statements of Income for the Years Ended December 31, 2023, 2022, and 2021 79 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023, 2022, and 2021 80 Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2023, 2022, and 2021 81 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022, and 2021 82

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 83

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 136

Controls and Procedures

Item 9A. Controls and Procedures 136

Other Information

Item 9B. Other Information 138

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 138 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 138

Executive Compensation

Item 11. Executive Compensation 138

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 138

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 138

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 138 PART IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 139

Form 10-K Summary

Item 16. Form 10-K Summary 149 3 Table of Contents PART I

Business

Item 1. Business. Overview Selective Insurance Group, Inc. ("Parent") is a New Jersey insurance holding company incorporated in 1977 that owns ten property and casualty insurance subsidiaries ("Insurance Subsidiaries"). The Insurance Subsidiaries sell products and services only in the United States ("U.S.") and exclusively through independent insurance agents and wholesale brokers. Various state departments of insurance (i) license nine of our subsidiaries as admitted carriers to write specific lines of property and casualty insurance in the standard marketplace and (ii) authorize the tenth subsidiary as a non-admitted carrier to write property and casualty insurance in the excess and surplus ("E&S") lines market. Throughout this document, we refer to the Parent and the Insurance Subsidiaries collectively as "we," "us," or "our." We use the term "Parent" when appropriate to distinguish it from the Insurance Subsidiaries. We also use specific property and casualty industry-related terms defined in a glossary attached as Exhibit 99.1 to this Form 10-K. Our main office is in Branchville, New Jersey. We list our common (stock symbol "SIGI") and preferred (stock symbol "SIGIP") stocks on the Nasdaq Global Select Market. In 2023, AM Best Company ("AM Best") ranked us as the 37th largest property and casualty group in its annual "Top 200 U.S. Property/Casualty Writers" list based on 2022 net premiums written ("NPW"). Our current AM Best financial strength rating is "A+" (Superior). We have had a long and successful history in the property and casualty insurance industry since our 1926 founding. Strategic Advantages Our market is competitive and crowded, making it critical to clearly demonstrate our value proposition to customers, distribution partners, employees, and investors. We have five key sustainable competitive advantages: A unique field model, placing empowered underwriting staff near our distribution partners and customers. Our ability to develop soph

View Full Filing

View this 10-K filing on SEC EDGAR