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Stockholders' Equity and Comprehensive Income | 12 Months Ended
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Dec. 31, 2011
Stockholders' Equity and Other Comprehensive Income [Abstract] |
Stockholders' Equity and Other Comprehensive Income (Loss) | Note 6. Stockholders' Equity and Comprehensive Income (Loss) (a) Stockholders' Equity As of December 31, 2011, we had 12.5 million shares reserved for various stock compensation and purchase plans, retirement plans and dividend reinvestment plans. As part of our ongoing capital management strategy, we repurchase the Parent's stock from time-to-time, although we have not had an authorized stock repurchase program since July 26, 2009. The following table provides information regarding the purchase of the Parent's common stock during the 2009 through 2011 reporting periods:
($ in thousands) |  |  |  |  |
|  | Shares Purchased |  | Cost of Shares Purchased |
|  | in Connection with |  | in Connection with |
|  | Restricted Stock Vestings |  | Restricted Stock Vestings |
Period |  | and Stock Option Exercises |  | and Stock Option Exercises |
2011 |  | 149,997 | $ | 2,741 |
2010 |  | 107,425 |  | 1,686 |
2009 |  | 191,858 |  | 3,010 |
Our ability to declare and pay dividends on the Parent's common stock is dependent on liquidity at the Parent coupled with the ability of the Insurance Subsidiaries to declare and pay dividends, if necessary, and/or the availability of other sources of liquidity to the Parent. Restrictions on the ability of the Insurance Subsidiaries to pay dividends, without alternative liquidity options, could materially affect our ability to pay dividends on common stock. The dividends from the Insurance Subsidiaries are subject to the regulatory limitations of the states in which the Insurance Subsidiaries are domiciled: New Jersey, New York, Indiana, or Maine. Based on the unaudited 2011 statutory financial statements, the maximum ordinary dividends that can be paid to the Parent by the Insurance Subsidiaries in 2012 are as follows:
($ in millions) |  |
Selective Insurance Company of America | $ | 50.7
Selective Way Insurance Company |  | 22.2
Selective Insurance Company of South Carolina |  | 9.1
Selective Insurance Company of the Southeast |  | 6.9
Selective Insurance Company of New York |  | 7.3
Selective Insurance Company of New England |  | 1.4
Selective Auto Insurance Company of New Jersey |  | 6.0
Montpelier U.S. Insurance Company |  | -
Total | $ | 103.6
The statutory capital and surplus of the Insurance Subsidiaries in excess of these ordinary dividend amounts must remain with the Insurance Subsidiaries in the absence of approval of an "extraordinary dividend" from the Insurance Subsidiaries' states of domicile. In each such jurisdiction, domestic insurers are prohibited from paying extraordinary dividends without approval of the insurance commissioner of the respective state. Additionally, New Jersey, Indiana, and Maine require notice of the declaration of any ordinary or extraordinary dividend distribution. During the notice period, the relevant state regulatory authority may disallow all or part of the proposed dividend if it determines that the insurer's surplus, with regard to policyholders, is not reasonable in relation to the insurer's outstanding liabilities and adequate for its financial needs. (b) The components of comprehensive income (loss), both gross and net of tax, for 2011, 2010, and 2009 were as follows:
2011 |  |  |  |  |  |
($ in thousands) |  | Gross |  | Tax |  | Net
Net income | $ | 7,065 |  | (12,800) |  | 19,865
Components of OCI: |  |  |  |  |  |
Unrealized gains on securities: |  |  |  |  |  |
Unrealized holding gains during the period |  | 70,140 |  | 24,548 |  | 45,592
Portion of OTTI recognized in OCI |  | 1,682 |  | 589 |  | 1,093
Amortization of net unrealized gains on HTM securities |  | (3,097) |  | (1,084) |  | (2,013)
Reclassification adjustment for gains included in net |  |  |  |  |  |
income |  | (1,987) |  | (695) |  | (1,292)
Net unrealized gains |  | 66,738 |  | 23,358 |  | 43,380
Defined benefit pension and post-retirement plans: |  |  |  |  |  |
Net actuarial loss |  | (16,799) |  | (5,880) |  | (10,919)
Reversal of amortization items: |  |  |  |  |  |
Net actuarial loss |  | 4,172 |  | 1,460 |  | 2,712
Prior service cost |  | 150 |  | 53 |  | 97
Defined benefit pension and post-retirement plans |  | (12,477) |  | (4,367) |  | (8,110)
Comprehensive income | $ | 61,326 |  | 6,191 |  | 55,135
2010 |  |  |  |  |  |
($ in thousands) |  | Gross |  | Tax |  | Net
Net income | $ | 76,141 |  | 10,600 |  | 65,541
Components of OCI: |  |  |  |  |  |
Unrealized gains on securities: |  |  |  |  |  |
Unrealized holding gains during the period |  | 44,643 |  | 15,625 |  | 29,018
Portion of OTTI recognized in OCI |  | 5,256 |  | 1,840 |  | 3,416
Amortization of net unrealized gains on HTM securities |  | (11,708) |  | (4,098) |  | (7,610)
Reclassification adjustment for gains included in net |  |  |  |  |  |
income |  | (454) |  | (159) |  | (295)
Net unrealized gains |  | 37,737 |  | 13,208 |  | 24,529
Defined benefit pension and post-retirement plans: |  |  |  |  |  |
Net actuarial loss |  | (12,045) |  | (4,216) |  | (7,829)
Reversal of amortization items: |  |  |  |  |  |
Net actuarial loss |  | 4,134 |  | 1,447 |  | 2,687
Prior service cost |  | 150 |  | 53 |  | 97
Defined benefit pension and post-retirement plans |  | (7,761) |  | (2,716) |  | (5,045)
Comprehensive income | $ | 106,117 |  | 21,092 |  | 85,025
2009 |  |  |  |  |  |
($ in thousands) |  | Gross |  | Tax |  | Net
Net income | $ | 26,253 |  | (10,145) |  | 36,398
Components of OCI: |  |  |  |  |  |
Unrealized gains on securities: |  |  |  |  |  |
Unrealized holding gains during the period |  | 102,514 |  | 35,880 |  | 66,634
Portion of OTTI recognized in OCI |  | (8,659) |  | (3,030) |  | (5,629)
Amortization of net unrealized gains on HTM securities |  | 914 |  | 320 |  | 594
Reclassification adjustment for losses included in net |  |  |  |  |  |
income |  | 38,392 |  | 13,437 |  | 24,955
Net unrealized gains |  | 133,161 |  | 46,607 |  | 86,554
Defined benefit pension and post-retirement plans: |  |  |  |  |  |
Net actuarial gain |  | 2,824 |  | 988 |  | 1,836
Reversal of amortization items: |  |  |  |  |  |
Net actuarial loss |  | 5,274 |  | 1,846 |  | 3,428
Curtailment gain |  | (1,387) |  | (485) |  | (902)
Prior service credit |  | (508) |  | (178) |  | (330)
Defined benefit pension and post-retirement plans |  | 6,203 |  | 2,171 |  | 4,032
Comprehensive income | $ | 165,617 |  | 38,633 |  | 126,984
(c) The balances of, and changes in, each component of AOCI (net of taxes) as of December 31, 2011 and 2010 were as follows:
|  |  |  |  |  |  |  | Defined |  |
|  |  |  | Benefit |  |
|  |  |  | Pension |  |
|  | Net Unrealized Gain (Loss) |  | and Post- |  |
|  | OTTI |  | HTM |  | All |  | retirement |  | Total
($ in thousands) |  | Related |  | Related |  | Other |  | Plans |  | AOCI
Balance, December 31, 2009 | $ | (8,009) |  | 11,937 |  | 25,410 |  | (41,798) |  | (12,460)
Changes in component during period |  | 3,416 |  | (793) |  | 21,906 |  | (5,045) |  | 19,484
Balance, December 31, 2010 |  | (4,593) |  | 11,144 |  | 47,316 |  | (46,843) |  | 7,024
Changes in component during period |  | 1,093 |  | (6,522) |  | 48,809 |  | (8,110) |  | 35,270
Balance, December 31, 2011 | $ | (3,500) |  | 4,622 |  | 96,125 |  | (54,953) |  | 42,294

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- Definition The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 3, 4, 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 4 -Section 08 -Paragraph d Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(d),(e)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 1 -Section B -Paragraph 7, 11A -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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