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Segment Information
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Segment Information
Segment Information
Selective Insurance Group, Inc., through its Insurance Subsidiaries, offers property and casualty insurance products in the standard and E&S marketplaces. We classify our business into four reportable segments, which are as follows:

•
Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to
commercial enterprises, which are typically businesses, non-profit organizations, and local government agencies.

•
Standard Personal Lines - comprised of insurance products and services, including flood insurance coverage, provided primarily to individuals acquiring coverage in the standard marketplace.

•
E&S Lines - comprised of insurance products and services provided to customers who have not obtained coverage in
the standard marketplace.

•
Investments - invests the premiums collected by our Standard Commercial Lines, Standard Personal Lines, and E&S
Lines, our earnings and amounts generated through our capital management strategies, which may include the issuance of debt and equity securities.

In the fourth quarter of 2014, we revised our reporting segments from our previously-reported Standard Insurance Operations segment to Standard Commercial Lines and Standard Personal Lines. For information regarding this change, see Note 11. "Segment Information" in Item 8. "Financial Statements and Supplementary Data." of our 2014 Annual Report.

In computing the results of each segment, we do not make adjustments for interest expense or net general corporate expenses. While we do not fully allocate taxes to all segments, we do allocate taxes to our Investments segment as we manage that segment on after-tax results. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments.

In First Quarter 2014, we sold the renewal rights to our $37 million self-insured group, or "SIG," book of business within the Standard Commercial Lines segment. We decided to opportunistically sell this small and specialized book of pooled business as a significant portion of the business was produced outside of our standard lines footprint, and proved difficult to grow. As this was a renewal rights sale, we will continue to service policies that were in force at the date of the sale. We continue to remain active in the municipal and public school marketplace for individual risks that procure traditional insurance programs rather than pooling arrangements. The proceeds from this sale, which amounted to $8 million, are included in "Miscellaneous income" within the table below as a component of Standard Commercial Lines revenue.

The following summaries present revenues (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments:
Revenue by Segment
 
Quarter ended
March 31,
 
($ in thousands)
 
2015
 
2014
 
Standard Commercial Lines:
 
 

 
 

 
Net premiums earned:
 
 

 
 

 
Commercial automobile
 
$
86,355

 
82,216

 
Workers compensation
 
68,477

 
69,413

 
General liability
 
114,971

 
108,818

 
Commercial property
 
64,563

 
60,186

 
Businessowners’ policies
 
22,699

 
20,869

 
Bonds
 
5,000

 
4,756

 
Other
 
3,468

 
3,183

 
Miscellaneous income
 
1,669

 
8,914

 
Total Standard Commercial Lines revenue
 
367,202

 
358,355

 
Standard Personal Lines:
 
 
 
 
 
Net premiums earned:
 
 
 
 
 
Personal automobile
 
37,010

 
38,226

 
Homeowners
 
33,721

 
33,298

 
Other
 
1,748

 
3,294

 
Miscellaneous income
 
300

 
905

 
Total Standard Personal Lines revenue
 
72,779

 
75,723

 
E&S Lines:
 
 
 
 
 
Net premiums earned:
 


 


 
General liability
 
26,726

 
21,931

 
Commercial property
 
9,655

 
9,117

 
Commercial automobile
 
1,730

 
1,188

 
Total E&S Lines revenue
 
38,111

 
32,236

 
Investments:
 
 

 
 

 
Net investment income
 
26,917

 
35,534

 
Net realized investment gains
 
18,883

 
7,218

 
Total Investments revenue
 
45,800

 
42,752

 
Total segments revenue
 
523,892

 
509,066

 
Other income
 
—

 
5

 
Total revenues
 
$
523,892

 
509,071

 
 
Income Before Federal Income Tax
 
Quarter ended March 31,
 
($ in thousands)
 
2015
 
2014
 
Standard Commercial Lines:
 
 

 
 

 
Underwriting gain (loss)
 
$
30,036

 
(3,630
)
 
GAAP combined ratio
 
91.8
%
 
101.0
%
 
Statutory combined ratio
 
89.7
%
 
100.3
%
 
 
 
 
 


 
Standard Personal Lines:
 
 
 
 
 
Underwriting loss
 
$
(2,466
)
 
(2,360
)
 
GAAP combined ratio
 
103.4
%
 
103.2
%
 
Statutory combined ratio
 
105.1
%
 
104.5
%
 
 
 
 
 
 
 
E&S Insurance Operations:
 
 
 
 
 
Underwriting (loss) gain
 
$
(1,549
)
 
975

 
GAAP combined ratio
 
104.1
%
 
97.0
%
 
Statutory combined ratio
 
102.1
%
 
97.9
%
 
 
 
 
 
 
 
Investments:
 
 

 
 

 
Net investment income
 
$
26,917

 
35,534

 
Net realized investment gains
 
18,883

 
7,218

 
Total investment income, before federal income tax
 
45,800

 
42,752

 
Tax on investment income
 
12,318

 
11,575

 
      Total investment income, after federal income tax

33,482


31,177

 

Reconciliation of Segment Results to Income
Before Federal Income Tax
 
Quarter ended
March 31,
 
($ in thousands)
 
2015
 
2014
 
Underwriting gain (loss), before federal income tax
 


 


 
Standard Commercial Lines
 
$
30,036

 
(3,630
)
 
Standard Personal Lines
 
(2,466
)
 
(2,360
)
 
E&S Lines
 
(1,549
)
 
975

 
Investment income, before federal income tax
 
45,800

 
42,752

 
Total all segments
 
71,821

 
37,737

 
Interest expense
 
(5,479
)
 
(5,561
)
 
General corporate and other expenses
 
(10,052
)
 
(7,092
)
 
Income before federal income tax
 
$
56,290

 
$
25,084