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Schedule II - Parent Corporation Finanical Statements
 12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule II- Parent Corporation Financial Statements
SCHEDULE II
 
SELECTIVE INSURANCE GROUP, INC.
(Parent Corporation)
Balance Sheets

 
 
December 31,
($ in thousands, except share amounts)
 
2016
 
2015
Assets:
 
 

 
 

Fixed income securities, available-for-sale – at fair value (amortized cost: $73,471 – 2016; $61,794 – 2015)
 
$
73,509

 
61,567

Short-term investments
 
17,777

 
29,116

Cash
 
458

 
898

Investment in subsidiaries
 
1,845,410

 
1,716,681

Current federal income tax
 
19,766

 
18,297

Deferred federal income tax
 
19,562

 
17,513

Other assets
 
840

 
670

   Total assets
 
$
1,977,322

 
1,844,742

  
 
 

 
 

Liabilities:
 
 

 
 

Long-term debt
 
$
328,667

 
328,192

Intercompany notes payable
 
79,324

 
86,163

Accrued long-term stock compensation
 
32,029

 
26,465

Other liabilities
 
5,932

 
5,881

   Total liabilities
 
$
445,952

 
446,701

 
 
 
 
 
Stockholders’ Equity:
 
 

 
 

Preferred stock at $0 par value per share:
 
 

 
 

   Authorized shares 5,000,000; no shares issued or outstanding
 
$
—

 
—

Common stock of $2 par value per share:
 
 

 
 

Authorized shares:  360,000,000
 
 
 
 
Issued: 101,620,436 – 2016; 100,861,372 – 2015
 
203,241

 
201,723

Additional paid-in capital
 
347,295

 
326,656

Retained earnings
 
1,568,881

 
1,446,192

Accumulated other comprehensive loss
 
(15,950
)
 
(9,425
)
Treasury stock – at cost (shares: 43,653,237 – 2016; 43,500,642 – 2015)
 
(572,097
)
 
(567,105
)
   Total stockholders’ equity
 
1,531,370

 
1,398,041

   Total liabilities and stockholders’ equity
 
$
1,977,322

 
1,844,742

 
See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K.

SCHEDULE II (continued)
 
SELECTIVE INSURANCE GROUP, INC.
(Parent Corporation)
Statements of Income
 
 
 
Year ended December 31,
($ in thousands)
 
2016
 
2015
 
2014
Revenues:
 
 

 
 

 
 

Dividends from subsidiaries
 
$
61,014

 
57,752

 
57,511

Net investment income earned
 
1,259

 
852

 
620

Net realized (losses) gains
 
(220
)
 
—

 
2

Other income
 
—

 
—

 
340

   Total revenues
 
62,053

 
58,604

 
58,473

 
 
 
 
 
 
 
Expenses:
 
 

 
 

 
 

Interest expense
 
24,030

 
24,057

 
24,817

Other expenses
 
35,020

 
28,393

 
23,598

   Total expenses
 
59,050

 
52,450

 
48,415

 
 
 
 
 
 
 
   Income before federal income tax
 
3,003

 
6,154

 
10,058

 
 
 
 
 
 
 
Federal income tax benefit:
 
 

 
 

 
 

Current
 
(17,924
)
 
(16,609
)
 
(15,920
)
Deferred
 
(2,143
)
 
(1,603
)
 
(646
)
   Total federal income tax benefit
 
(20,067
)
 
(18,212
)
 
(16,566
)
 
 
 
 
 
 
 
Net income before equity in undistributed income of subsidiaries
 
23,070

 
24,366

 
26,624

 
 
 
 
 
 
 
Equity in undistributed income of subsidiaries, net of tax
 
135,425

 
141,495

 
115,203

 
 
 
 
 
 
 
Net income
 
$
158,495

 
165,861

 
141,827

 
See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K.

 
SCHEDULE II (continued)

SELECTIVE INSURANCE GROUP, INC.
(Parent Corporation)
Statements of Cash Flows
 
 
Year ended December 31,
($ in thousands)
 
2016
 
2015
 
2014
Operating Activities:
 
 

 
 

 
 

Net income
 
$
158,495

 
165,861

 
141,827

 
 
 
 
 
 
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

 
 

Equity in undistributed income of subsidiaries, net of tax
 
(135,425
)
 
(141,495
)
 
(115,203
)
Stock-based compensation expense
 
10,449

 
8,973

 
8,702

Net realized losses (gains)
 
220

 
—

 
(2
)
Amortization – other
 
648

 
740

 
1,421

 
 
 
 
 
 
 
Changes in assets and liabilities:
 
 

 
 

 
 

Increase in accrued long-term stock compensation
 
5,564

 
4,575

 
1,062

(Increase) decrease in net federal income taxes
 
(3,612
)
 
(3,052
)
 
10,977

(Decrease) increase in other assets
 
(202
)
 
(12
)
 
1,165

Increase (decrease) in other liabilities
 
80

 
(202
)
 
(120
)
Net cash provided by operating activities
 
36,217

 
35,388

 
49,829

 
 
 
 
 
 
 
Investing Activities:
 
 

 
 

 
 

Purchase of fixed income securities, available-for-sale
 
(45,789
)
 
(33,717
)
 
(18,511
)
Redemption and maturities of fixed income securities, available-for-sale
 
14,983

 
21,578

 
23,210

Sale of fixed income securities, available-for-sale
 
18,768

 
—

 
300

Purchase of short-term investments
 
(119,501
)
 
(106,933
)
 
(102,717
)
Sale of short-term investments
 
130,841

 
94,422

 
101,510

Net cash (used in) provided by investing activities
 
(698
)
 
(24,650
)
 
3,792

 
 
 
 
 
 
 
Financing Activities:
 
 

 
 

 
 

Dividends to stockholders
 
(33,758
)
 
(31,052
)
 
(28,428
)
Acquisition of treasury stock
 
(4,992
)
 
(4,182
)
 
(3,563
)
Net proceeds from stock purchase and compensation plans
 
7,811

 
10,089

 
7,283

Excess tax benefits from share-based payment arrangements
 
1,819

 
1,736

 
1,020

Principal payment on borrowings from subsidiaries
 
(6,839
)
 
(2,798
)
 
(13,759
)
Net cash used in financing activities
 
(35,959
)
 
(26,207
)
 
(37,447
)
 
 
 
 
 
 
 
Net (decrease) increase in cash
 
(440
)
 
(15,469
)
 
16,174

Cash, beginning of year
 
898

 
16,367

 
193

Cash, end of year
 
$
458

 
898

 
16,367


See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K.