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Segment Information | 6 Months Ended
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Jun. 30, 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, as well as 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 the first quarter of 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 $8 million, are included in "Miscellaneous income" within the table below as a component of Standard Commercial Lines revenue. The following summaries present revenues (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments:
Revenue by Segment |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014
Standard Commercial Lines: |  |  |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |  |  |
Commercial automobile |  | $ | 88,658 |  |  | 83,472 |  |  | 175,013 |  |  | 165,688 |
Workers compensation |  | 70,954 |  |  | 68,992 |  |  | 139,431 |  |  | 138,405 |
General liability |  | 119,207 |  |  | 111,591 |  |  | 234,178 |  |  | 220,409 |
Commercial property |  | 66,549 |  |  | 61,226 |  |  | 131,112 |  |  | 121,412 |
Businessowners’ policies |  | 23,178 |  |  | 21,279 |  |  | 45,877 |  |  | 42,148 |
Bonds |  | 5,106 |  |  | 4,734 |  |  | 10,106 |  |  | 9,490 |
Other |  | 3,553 |  |  | 3,213 |  |  | 7,021 |  |  | 6,396 |
Miscellaneous income |  | 2,563 |  |  | 1,571 |  |  | 4,232 |  |  | 10,485 |
Total Standard Commercial Lines revenue |  | 379,768 |  |  | 356,078 |  |  | 746,970 |  |  | 714,433 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Personal automobile |  | 36,740 |  |  | 38,022 |  |  | 73,750 |  |  | 76,248 |
Homeowners |  | 33,731 |  |  | 33,576 |  |  | 67,452 |  |  | 66,874 |
Other |  | 1,600 |  |  | 2,946 |  |  | 3,348 |  |  | 6,240 |
Miscellaneous income |  | 291 |  |  | 337 |  |  | 591 |  |  | 1,242 |
Total Standard Personal Lines revenue |  | 72,362 |  |  | 74,881 |  |  | 145,141 |  |  | 150,604 |
E&S Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
General liability |  | 28,793 |  |  | 23,936 |  |  | 55,519 |  |  | 45,867 |
Commercial property |  | 10,464 |  |  | 9,379 |  |  | 20,119 |  |  | 18,496 |
Commercial automobile |  | 1,776 |  |  | 1,259 |  |  | 3,506 |  |  | 2,447 |
Total E&S Lines revenue |  | 41,033 |  |  | 34,574 |  |  | 79,144 |  |  | 66,810 |
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | 32,230 |  |  | 36,774 |  |  | 59,147 |  |  | 72,308 |
Net realized investment (losses) gains |  | (3,420 | ) |  | 4,539 |  |  | 15,463 |  |  | 11,757 |
Total Investments revenue |  | 28,810 |  |  | 41,313 |  |  | 74,610 |  |  | 84,065 |
Total segments revenue |  | 521,973 |  |  | 506,846 |  |  | 1,045,865 |  |  | 1,015,912 |
Other income |  | — |  |  | 3 |  |  | — |  |  | 8 |
Total revenues |  | $ | 521,973 |  |  | 506,849 |  |  | 1,045,865 |  |  | 1,015,920 |
Income Before Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014
Standard Commercial Lines: |  |  |  |  |  |  |  |  |  |
Underwriting gain |  | $ | 35,241 |  |  | 15,703 |  |  | 65,277 |  |  | 12,073 |
GAAP combined ratio |  | 90.7 | % |  | 95.6 |  |  | 91.2 |  |  | 98.3 |
Statutory combined ratio |  | 90.1 |  |  | 95.5 |  |  | 89.9 |  |  | 97.8 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Underwriting loss |  | $ | (4,655 | ) |  | (5,582 | ) |  | (7,121 | ) |  | (7,942 | )
GAAP combined ratio |  | 106.5 | % |  | 107.5 |  |  | 104.9 |  |  | 105.3 |
Statutory combined ratio |  | 105.4 |  |  | 106.1 |  |  | 105.2 |  |  | 105.3 |
E&S Insurance Operations: |  |  |  |  |  |  |  |
Underwriting (loss) gain |  | $ | (1,462 | ) |  | (37 | ) |  | (3,011 | ) |  | 938 |
GAAP combined ratio |  | 103.6 | % |  | 100.1 |  |  | 103.8 |  |  | 98.6 |
Statutory combined ratio |  | 102.7 |  |  | 99.9 |  |  | 102.5 |  |  | 98.8 |
Investments: |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 32,230 |  |  | 36,774 |  |  | 59,147 |  |  | 72,308 |
Net realized investment (losses) gains |  | (3,420 | ) |  | 4,539 |  |  | 15,463 |  |  | 11,757 |
Total investment income, before federal income tax |  | 28,810 |  |  | 41,313 |  |  | 74,610 |  |  | 84,065 |
Tax on investment income |  | 6,254 |  |  | 10,941 |  |  | 18,572 |  |  | 22,516 |
Total investment income, after federal income tax |  | $ | 22,556 |  |  | 30,372 |  |  | 56,038 |  |  | 61,549 |
Reconciliation of Segment Results to Income Before Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014
Underwriting gain (loss), before federal income tax |  |  |  |  |  |  |  |  |  |  |  |
Standard Commercial Lines |  | $ | 35,241 |  |  | 15,703 |  |  | 65,277 |  |  | 12,073 |
Standard Personal Lines |  | (4,655 | ) |  | (5,582 | ) |  | (7,121 | ) |  | (7,942 | )
E&S Lines |  | (1,462 | ) |  | (37 | ) |  | (3,011 | ) |  | 938 |
Investment income, before federal income tax |  | 28,810 |  |  | 41,313 |  |  | 74,610 |  |  | 84,065 |
Total all segments |  | 57,934 |  |  | 51,397 |  |  | 129,755 |  |  | 89,134 |
Interest expense |  | (5,490 | ) |  | (5,425 | ) |  | (10,969 | ) |  | (10,986 | )
General corporate and other expenses |  | (5,679 | ) |  | (6,451 | ) |  | (15,731 | ) |  | (13,543 | )
Income before federal income tax |  | $ | 46,765 |  |  | 39,521 |  |  | 103,055 |  |  | 64,605 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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