XML 140 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions
 12 Months Ended
Dec. 31, 2011
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

Note 18. Related Party Transactions

William M. Rue, a Director of the Parent, is President of, and owns more than 10% of the equity of, Chas. E. Rue & Son, Inc., t/a Rue Insurance, a general independent insurance agency ("Rue Insurance"). Rue Insurance is an appointed independent agent of the Insurance Subsidiaries and of the discontinued operations of Selective HR, on terms and conditions similar to those of our other agents. Rue Insurance also places insurance for our business operations. Our relationship with Rue Insurance has existed since 1928.

 

The following is a summary of transactions with Rue Insurance:

·         Rue Insurance placed insurance policies with the Insurance Subsidiaries. Direct premiums written associated with these policies were $7.8 million in 2011, $7.2 million in 2010, and $7.6 million in 2009. In return, the Insurance Subsidiaries paid commissions to Rue Insurance of $1.2 million in 2011, $1.3 million in 2010, and $1.4 million in 2009.

·         Rue Insurance placed insurance coverage for us with other insurance companies for which Rue Insurance was paid commission pursuant to its agreements with those carriers. We paid premiums for such insurance coverage of $0.2 million in 2011, $0.3 million in 2010, and $0.5 million in 2009.

·         Rue Insurance placed human resource outsourcing contracts with Selective HR resulting in revenues to Selective HR of approximately $77,000 in 2009. In return, Selective HR paid commissions to Rue Insurance of approximately $10,000 in 2009. These revenues are reflected in "Loss from discontinued operations, net of tax" in the Consolidated Statements of Income.

 

In 2005, we established a private foundation, The Selective Group Foundation (the "Foundation"), under Section 501(c)(3) of the Internal Revenue Code. The Board of Directors of the Foundation is comprised of some of the Parent's officers. We made contributions to the Foundation in the amount of $0.4 million in 2011, 2010, and 2009.