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Segment Information
 6 Months Ended
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