XML 64 R32.htm IDEA: XBRL DOCUMENT v3.20.4
Schedule II - Parent Corporation Finanical Statements
 12 Months Ended
Dec. 31, 2020
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)20202019
Assets:  
Fixed income securities, available-for-sale - at fair value
   (allowance for credit losses: $22 – 2020; amortized cost $272,256 – 2020; $233,753 – 2019
$290,428 241,526 
Equity securities159,524 — 
Short-term investments36,425 36,219 
Other investments3,392 — 
Cash394 300 
Investment in subsidiaries2,754,012 2,416,209 
Current federal income tax11,040 16,116 
Deferred federal income tax2,218 4,875 
Other assets1,959 1,692 
   Total assets$3,259,392 2,716,937 
    
Liabilities:  
Long-term debt$440,235 439,860 
Intercompany notes payable59,611 61,163 
Accrued long-term stock compensation8,238 8,604 
Other liabilities12,419 12,374 
   Total liabilities$520,503 522,001 
Stockholders’ Equity:  
Preferred stock of $0 par value per share:
  
   Authorized shares: 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share – 2020; no shares issued or outstanding – 2019
$200,000 — 
Common stock of $2 par value per share:
  
Authorized shares:  360,000,000
Issued: 104,032,912 – 2020; 103,484,159 – 2019
208,066 206,968 
Additional paid-in capital438,985 418,521 
Retained earnings2,271,537 2,080,529 
Accumulated other comprehensive income220,186 81,750 
Treasury stock – at cost (shares: 44,127,109 – 2020; 44,023,006 – 2019)
(599,885)(592,832)
   Total stockholders’ equity2,738,889 2,194,936 
   Total liabilities and stockholders’ equity$3,259,392 2,716,937 
 
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)202020192018
Revenues:   
Dividends from subsidiaries$104,992 110,004 100,060 
Net investment income earned7,579 7,301 3,425 
Net realized and unrealized investment gains (losses)1,756 207 (1,567)
   Total revenues114,327 117,512 101,918 
Expenses:   
Interest expense29,220 33,426 24,652 
Other expenses25,412 30,900 25,446 
   Total expenses54,632 64,326 50,098 
   Income before federal income tax59,695 53,186 51,820 
Federal income tax (benefit) expense:   
Current(10,987)(16,080)(14,173)
Deferred473 3,606 3,141 
   Total federal income tax benefit(10,514)(12,474)(11,032)
Net income before equity in undistributed income of subsidiaries70,209 65,660 62,852 
Equity in undistributed income of subsidiaries, net of tax176,146 205,963 116,087 
Net income$246,355 271,623 178,939 
Preferred stock dividends— — — 
Net income available to common stockholders$246,355 271,623 178,939 
 
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)202020192018
Operating Activities:   
Net income$246,355 271,623 178,939 
Adjustments to reconcile net income to net cash provided by operating activities:   
Equity in undistributed income of subsidiaries, net of tax(176,146)(205,963)(116,087)
Stock-based compensation expense16,227 19,077 14,507 
Net realized and unrealized investment (gains) losses(1,756)(207)1,567 
Undistributed losses of equity method investments672 — — 
Amortization – other1,080 4,614 567 
Changes in assets and liabilities:   
Decrease in accrued long-term stock compensation(366)(12,970)(15,443)
Decrease in net federal income taxes5,549 1,651 11,246 
Increase in other assets(317)(533)(343)
(Decrease) increase in other liabilities(390)3,919 1,712 
Net cash provided by operating activities90,908 81,211 76,665 
Investing Activities:   
Purchase of fixed income securities, available-for-sale(89,726)(153,482)(75,046)
Purchase of equity securities(157,411)(10,824)— 
Purchase of short-term investments(523,961)(1,116,766)(207,115)
Purchase of other investments(4,065)— — 
Redemption and maturities of fixed income securities, available-for-sale26,877 10,579 6,849 
Sale of fixed income securities, available-for-sale23,276 20,189 45,099 
Sale of equity securities— 10,828 — 
Sale of short-term investments523,813 1,116,253 195,846 
Capital contribution to subsidiaries(30,000)— — 
Net cash used in investing activities(231,197)(123,223)(34,367)
Financing Activities:   
Dividends to preferred stockholders— — — 
Dividends to common stockholders(54,486)(47,675)(42,097)
Acquisition of treasury stock(7,053)(8,164)(6,556)
Proceeds from borrowings50,000 290,757 — 
Repayment of borrowings(50,000)(185,000)— 
Net proceeds from stock purchase and compensation plans8,411 8,243 7,252 
Preferred stock issued, net of issuance costs195,063 — — 
Principal payment on borrowings from subsidiaries(1,552)(16,354)(926)
Net cash provided by (used in) financing activities140,383 41,807 (42,327)
Net increase (decrease) in cash94 (205)(29)
Cash, beginning of year300 505 534 
Cash, end of year$394 300 505 

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.