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Schedule II - Parent Corporation Finanical Statements
 12 Months Ended
Dec. 31, 2019
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)
 
2019
 
2018
Assets:
 
 

 
 

Fixed income securities, available-for-sale – at fair value (amortized cost: $233,753 – 2019; $111,208 – 2018)
 
$
241,526

 
110,098

Short-term investments
 
36,219

 
35,358

Cash
 
300

 
505

Investment in subsidiaries
 
2,416,209

 
2,057,218

Current federal income tax
 
16,116

 
14,161

Deferred federal income tax
 
4,875

 
10,346

Other assets
 
1,692

 
1,186

   Total assets
 
$
2,716,937

 
2,228,872

  
 
 

 
 

Liabilities:
 
 

 
 

Long-term debt
 
$
439,860

 
329,540

Intercompany notes payable
 
61,163

 
77,517

Accrued long-term stock compensation
 
8,604

 
21,574

Other liabilities
 
12,374

 
8,439

   Total liabilities
 
$
522,001

 
437,070

 
 
 
 
 
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: 103,484,159 – 2019; 102,848,394 – 2018
 
206,968

 
205,697

Additional paid-in capital
 
418,521

 
390,315

Retained earnings
 
2,080,529

 
1,858,414

Accumulated other comprehensive income (loss)
 
81,750

 
(77,956
)
Treasury stock – at cost (shares: 44,023,006 – 2019; 43,899,840 – 2018)
 
(592,832
)
 
(584,668
)
   Total stockholders’ equity
 
2,194,936

 
1,791,802

   Total liabilities and stockholders’ equity
 
$
2,716,937

 
2,228,872

 
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)
 
2019
 
2018
 
2017
Revenues:
 
 

 
 

 
 

Dividends from subsidiaries
 
$
110,004

 
100,060

 
80,096

Net investment income earned
 
7,301

 
3,425

 
2,044

Net realized gains (losses)
 
207

 
(1,567
)
 
(15
)
   Total revenues
 
117,512

 
101,918

 
82,125

 
 
 
 
 
 
 
Expenses:
 
 

 
 

 
 

Interest expense
 
33,426

 
24,652

 
24,721

Other expenses
 
30,900

 
25,446

 
36,251

   Total expenses
 
64,326

 
50,098

 
60,972

 
 
 
 
 
 
 
   Income before federal income tax
 
53,186

 
51,820

 
21,153

 
 
 
 
 
 
 
Federal income tax (benefit) expense:
 
 

 
 

 
 

Current
 
(16,080
)
 
(14,173
)
 
(22,187
)
Deferred
 
3,606

 
3,141

 
6,311

   Total federal income tax benefit
 
(12,474
)
 
(11,032
)
 
(15,876
)
 
 
 
 
 
 
 
Net income before equity in undistributed income of subsidiaries
 
65,660

 
62,852

 
37,029

 
 
 
 
 
 
 
Equity in undistributed income of subsidiaries, net of tax
 
205,963

 
116,087

 
131,797

 
 
 
 
 
 
 
Net income
 
$
271,623

 
178,939

 
168,826

 
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)
 
2019
 
2018
 
2017
Operating Activities:
 
 

 
 

 
 

Net income
 
$
271,623

 
178,939

 
168,826

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

 
 

 
 

Equity in undistributed income of subsidiaries, net of tax
 
(205,963
)
 
(116,087
)
 
(131,797
)
Stock-based compensation expense
 
19,077

 
14,507

 
12,089

Net realized (gains) losses
 
(207
)
 
1,567

 
15

Amortization – other
 
4,614

 
567

 
678

 
 
 
 
 
 
 
Changes in assets and liabilities:
 
 

 
 

 
 

(Decrease) increase in accrued long-term stock compensation
 
(12,970
)
 
(15,443
)
 
4,988

Decrease in net federal income taxes
 
1,651

 
11,246

 
3,811

Increase in other assets
 
(533
)
 
(343
)
 
(60
)
Increase in other liabilities
 
3,919

 
1,712

 
714

Net cash provided by operating activities
 
81,211

 
76,665

 
59,264

 
 
 
 
 
 
 
Investing Activities:
 
 

 
 

 
 

Purchase of fixed income securities, available-for-sale
 
(153,482
)
 
(75,046
)
 
(58,832
)
Redemption and maturities of fixed income securities, available-for-sale
 
10,579

 
6,849

 
10,465

Sale of fixed income securities, available-for-sale
 
20,189

 
45,099

 
31,819

Purchase of equity securities
 
(10,824
)
 
—

 
—

Sale of equity securities
 
10,828

 
—

 
—

Purchase of short-term investments
 
(1,116,766
)
 
(207,115
)
 
(185,590
)
Sale of short-term investments
 
1,116,253

 
195,846

 
179,292

Net cash used in investing activities
 
(123,223
)
 
(34,367
)
 
(22,846
)
 
 
 
 
 
 
 
Financing Activities:
 
 

 
 

 
 

Dividends to stockholders
 
(47,675
)
 
(42,097
)
 
(37,045
)
Acquisition of treasury stock
 
(8,164
)
 
(6,556
)
 
(6,015
)
Proceeds from issuance of notes payable, net of debt issuance costs
 
290,757

 
—

 
—

Principal payment on notes payable
 
(185,000
)
 
—

 
—

Net proceeds from stock purchase and compensation plans
 
8,243

 
7,252

 
7,599

Principal payment on borrowings from subsidiaries
 
(16,354
)
 
(926
)
 
(881
)
Net cash provided by (used in) financing activities
 
41,807

 
(42,327
)
 
(36,342
)
 
 
 
 
 
 
 
Net (decrease) increase in cash
 
(205
)
 
(29
)
 
76

Cash, beginning of year
 
505

 
534

 
458

Cash, end of year
 
$
300

 
505

 
534


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.