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Schedule II - Parent Corporation Finanical Statements
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information 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)
 
2018
 
2017
Assets:
 
 

 
 

Fixed income securities, available-for-sale – at fair value (amortized cost: $111,208 – 2018; $89,799 – 2017)
 
$
110,098

 
89,872

Short-term investments
 
35,358

 
24,080

Cash
 
505

 
534

Investment in subsidiaries
 
2,057,218

 
2,013,304

Current federal income tax
 
14,161

 
22,266

Deferred federal income tax
 
10,346

 
13,239

Other assets
 
1,186

 
871

   Total assets
 
$
2,228,872

 
2,164,166

  
 
 

 
 

Liabilities:
 
 

 
 

Long-term debt
 
$
329,540

 
329,116

Intercompany notes payable
 
77,517

 
78,443

Accrued long-term stock compensation
 
21,574

 
37,017

Other liabilities
 
8,439

 
6,633

   Total liabilities
 
$
437,070

 
451,209

 
 
 
 
 
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: 102,848,394 – 2018; 102,284,564 – 2017
 
205,697

 
204,569

Additional paid-in capital
 
390,315

 
367,717

Retained earnings
 
1,858,414

 
1,698,613

Accumulated other comprehensive (loss) income
 
(77,956
)
 
20,170

Treasury stock – at cost (shares: 43,899,840 – 2018; 43,789,442 – 2017)
 
(584,668
)
 
(578,112
)
   Total stockholders’ equity
 
1,791,802

 
1,712,957

   Total liabilities and stockholders’ equity
 
$
2,228,872

 
2,164,166

 
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)
 
2018
 
2017
 
2016
Revenues:
 
 

 
 

 
 

Dividends from subsidiaries
 
$
100,060

 
80,096

 
61,014

Net investment income earned
 
3,425

 
2,044

 
1,259

Net realized losses
 
(1,567
)
 
(15
)
 
(220
)
   Total revenues
 
101,918

 
82,125

 
62,053

 
 
 
 
 
 
 
Expenses:
 
 

 
 

 
 

Interest expense
 
24,652

 
24,721

 
24,030

Other expenses
 
25,446

 
36,251

 
35,020

   Total expenses
 
50,098

 
60,972

 
59,050

 
 
 
 
 
 
 
   Income before federal income tax
 
51,820

 
21,153

 
3,003

 
 
 
 
 
 
 
Federal income tax (benefit) expense:
 
 

 
 

 
 

Current
 
(14,173
)
 
(22,187
)
 
(17,924
)
Deferred
 
3,141

 
6,311

 
(2,143
)
   Total federal income tax benefit
 
(11,032
)
 
(15,876
)
 
(20,067
)
 
 
 
 
 
 
 
Net income before equity in undistributed income of subsidiaries
 
62,852

 
37,029

 
23,070

 
 
 
 
 
 
 
Equity in undistributed income of subsidiaries, net of tax
 
116,087

 
131,797

 
135,425

 
 
 
 
 
 
 
Net income
 
$
178,939

 
168,826

 
158,495

 
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)
 
2018
 
2017
 
2016
Operating Activities:
 
 

 
 

 
 

Net income
 
$
178,939

 
168,826

 
158,495

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

 
 

 
 

Equity in undistributed income of subsidiaries, net of tax
 
(116,087
)
 
(131,797
)
 
(135,425
)
Stock-based compensation expense
 
14,507

 
12,089

 
10,449

Net realized losses
 
1,567

 
15

 
220

Amortization – other
 
567

 
678

 
648

 
 
 
 
 
 
 
Changes in assets and liabilities:
 
 

 
 

 
 

(Decrease) increase in accrued long-term stock compensation
 
(15,443
)
 
4,988

 
5,564

Decrease (increase) in net federal income taxes
 
11,246

 
3,811

 
(3,612
)
Increase in other assets
 
(343
)
 
(60
)
 
(202
)
Increase in other liabilities
 
1,712

 
714

 
80

Net cash provided by operating activities
 
76,665

 
59,264

 
36,217

 
 
 
 
 
 
 
Investing Activities:
 
 

 
 

 
 

Purchase of fixed income securities, available-for-sale
 
(75,046
)
 
(58,832
)
 
(45,789
)
Redemption and maturities of fixed income securities, available-for-sale
 
6,849

 
10,465

 
14,983

Sale of fixed income securities, available-for-sale
 
45,099

 
31,819

 
18,768

Purchase of short-term investments
 
(207,115
)
 
(185,590
)
 
(119,501
)
Sale of short-term investments
 
195,846

 
179,292

 
130,841

Net cash used in investing activities
 
(34,367
)
 
(22,846
)
 
(698
)
 
 
 
 
 
 
 
Financing Activities:
 
 

 
 

 
 

Dividends to stockholders
 
(42,097
)
 
(37,045
)
 
(33,758
)
Acquisition of treasury stock
 
(6,556
)
 
(6,015
)
 
(4,992
)
Net proceeds from stock purchase and compensation plans
 
7,252

 
7,599

 
7,811

Excess tax benefits from share-based payment arrangements
 
—

 
—

 
1,819

Principal payment on borrowings from subsidiaries
 
(926
)
 
(881
)
 
(6,839
)
Net cash used in financing activities
 
(42,327
)
 
(36,342
)
 
(35,959
)
 
 
 
 
 
 
 
Net (decrease) increase in cash
 
(29
)
 
76

 
(440
)
Cash, beginning of year
 
534

 
458

 
898

Cash, end of year
 
$
505

 
534

 
458


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.