FALSE 2021 Q2 0000230557 12-31 0000230557 2021-01-01 2021-06-30 0000230557 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0000230557 us-gaap:NoncumulativePreferredStockMember 2021-01-01 2021-06-30 xbrli:shares 0000230557 2021-07-16 iso4217:USD 0000230557 2021-06-30 0000230557 2020-12-31 iso4217:USD xbrli:shares 0000230557 us-gaap:PreferredStockMember 2020-12-31 0000230557 us-gaap:PreferredStockMember 2021-06-30 0000230557 us-gaap:SeriesBMember 2020-12-31 0000230557 us-gaap:SeriesBMember 2021-06-30 0000230557 us-gaap:CommonStockMember 2020-12-31 0000230557 us-gaap:CommonStockMember 2021-06-30 0000230557 us-gaap:TreasuryStockMember 2021-06-30 0000230557 us-gaap:TreasuryStockMember 2020-12-31 0000230557 2021-04-01 2021-06-30 0000230557 2020-04-01 2020-06-30 0000230557 2020-01-01 2020-06-30 0000230557 us-gaap:PreferredStockMember 2021-03-31 0000230557 us-gaap:PreferredStockMember 2020-03-31 0000230557 us-gaap:PreferredStockMember 2020-12-31 0000230557 us-gaap:PreferredStockMember 2019-12-31 0000230557 us-gaap:PreferredStockMember 2021-04-01 2021-06-30 0000230557 us-gaap:PreferredStockMember 2020-04-01 2020-06-30 0000230557 us-gaap:PreferredStockMember 2021-01-01 2021-06-30 0000230557 us-gaap:PreferredStockMember 2020-01-01 2020-06-30 0000230557 us-gaap:PreferredStockMember 2021-06-30 0000230557 us-gaap:PreferredStockMember 2020-06-30 0000230557 us-gaap:CommonStockMember 2021-03-31 0000230557 us-gaap:CommonStockMember 2020-03-31 0000230557 us-gaap:CommonStockMember 2020-12-31 0000230557 us-gaap:CommonStockMember 2019-12-31 0000230557 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0000230557 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0000230557 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0000230557 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0000230557 us-gaap:CommonStockMember 2021-06-30 0000230557 us-gaap:CommonStockMember 2020-06-30 0000230557 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0000230557 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000230557 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0000230557 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000230557 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0000230557 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000230557 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-06-30 0000230557 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0000230557 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0000230557 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000230557 us-gaap:RetainedEarningsMember 2021-03-31 0000230557 us-gaap:RetainedEarningsMember 2020-03-31 0000230557 us-gaap:RetainedEarningsMember 2020-12-31 0000230557 us-gaap:RetainedEarningsMember 2019-12-31 0000230557 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2021-03-31 0000230557 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2020-03-31 0000230557 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2020-12-31 0000230557 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2019-12-31 0000230557 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2021-03-31 0000230557 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2020-03-31 0000230557 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2020-12-31 0000230557 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2019-12-31 0000230557 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0000230557 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0000230557 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0000230557 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0000230557 us-gaap:RetainedEarningsMember 2021-06-30 0000230557 us-gaap:RetainedEarningsMember 2020-06-30 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0000230557 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000230557 us-gaap:TreasuryStockMember 2021-03-31 0000230557 us-gaap:TreasuryStockMember 2020-03-31 0000230557 us-gaap:TreasuryStockMember 2020-12-31 0000230557 us-gaap:TreasuryStockMember 2019-12-31 0000230557 us-gaap:TreasuryStockMember 2021-04-01 2021-06-30 0000230557 us-gaap:TreasuryStockMember 2020-04-01 2020-06-30 0000230557 us-gaap:TreasuryStockMember 2021-01-01 2021-06-30 0000230557 us-gaap:TreasuryStockMember 2020-01-01 2020-06-30 0000230557 us-gaap:TreasuryStockMember 2021-06-30 0000230557 us-gaap:TreasuryStockMember 2020-06-30 0000230557 2020-06-30 0000230557 2021-03-31 0000230557 2020-03-31 0000230557 2019-12-31 0000230557 us-gaap:AvailableForSaleSecurities 2021-01-01 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities 2020-01-01 2020-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:EquitySecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:EquitySecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:USTreasuryAndGovernmentMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:USTreasuryAndGovernmentMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2020-12-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2020-12-31 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-03-31 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-04-01 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2021-03-31 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2021-04-01 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2021-03-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2021-04-01 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2021-03-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2021-04-01 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-03-31 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-04-01 2021-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-03-31 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-04-01 2021-06-30 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-03-31 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-04-01 2020-06-30 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2020-03-31 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2020-04-01 2020-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2020-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2020-03-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2020-04-01 2020-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2020-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2020-03-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2020-04-01 2020-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2020-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-03-31 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-04-01 2020-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-03-31 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-04-01 2020-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-06-30 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-01-01 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2021-01-01 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-01-01 2021-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-01-01 2021-06-30 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2019-12-31 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-01-01 2020-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2019-12-31 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableForSaleSecurities 2020-01-01 2020-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CorporateDebtSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2019-12-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2019-12-31 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-01-01 2020-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2019-12-31 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-01-01 2020-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2021-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2020-12-31 0000230557 us-gaap:USTreasuryAndGovernmentMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CommercialMortgageBackedSecuritiesMember 2021-06-30 0000230557 us-gaap:AvailableForSaleSecurities 2021-06-30 0000230557 us-gaap:USTreasuryAndGovernmentMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:AssetBackedSecuritiesMember 2020-12-31 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 us-gaap:AvailableForSaleSecurities us-gaap:CommercialMortgageBackedSecuritiesMember 2020-12-31 0000230557 us-gaap:AvailableForSaleSecurities 2020-12-31 0000230557 srt:PartnershipInterestMember us-gaap:PrivateEquityFundsMember 2021-06-30 0000230557 srt:PartnershipInterestMember us-gaap:PrivateEquityFundsMember 2020-12-31 0000230557 srt:PartnershipInterestMember sigi:PrivateCreditFundsMember 2021-06-30 0000230557 srt:PartnershipInterestMember sigi:PrivateCreditFundsMember 2020-12-31 0000230557 srt:PartnershipInterestMember sigi:RealAssetsMember 2021-06-30 0000230557 srt:PartnershipInterestMember sigi:RealAssetsMember 2020-12-31 0000230557 srt:PartnershipInterestMember 2021-06-30 0000230557 srt:PartnershipInterestMember 2020-12-31 0000230557 sigi:OtherSecuritiesMember 2021-06-30 0000230557 sigi:OtherSecuritiesMember 2020-12-31 0000230557 us-gaap:OtherInvestmentsMember 2021-06-30 0000230557 us-gaap:OtherInvestmentsMember 2020-12-31 0000230557 sigi:InvestmentsAccountedForUnderTheEquityMethodMember 2021-04-01 2021-06-30 0000230557 sigi:InvestmentsAccountedForUnderTheEquityMethodMember 2020-04-01 2020-06-30 0000230557 sigi:InvestmentsAccountedForUnderTheEquityMethodMember 2021-01-01 2021-06-30 0000230557 sigi:InvestmentsAccountedForUnderTheEquityMethodMember 2020-01-01 2020-06-30 0000230557 srt:PartnershipInterestMember 2021-04-01 2021-06-30 0000230557 srt:PartnershipInterestMember 2020-04-01 2020-06-30 0000230557 srt:PartnershipInterestMember 2021-01-01 2021-06-30 0000230557 srt:PartnershipInterestMember 2020-01-01 2020-06-30 0000230557 us-gaap:USTreasuryAndGovernmentMember srt:FederalHomeLoanBankOfIndianapolisMember 2021-06-30 0000230557 us-gaap:USTreasuryAndGovernmentMember srt:FederalHomeLoanBankOfNewYorkMember 2021-06-30 0000230557 us-gaap:USTreasuryAndGovernmentMember 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember srt:FederalHomeLoanBankOfIndianapolisMember 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember srt:FederalHomeLoanBankOfNewYorkMember 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember srt:FederalHomeLoanBankOfIndianapolisMember 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember srt:FederalHomeLoanBankOfNewYorkMember 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember 2021-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember srt:FederalHomeLoanBankOfIndianapolisMember 2021-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember srt:FederalHomeLoanBankOfNewYorkMember 2021-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember 2021-06-30 0000230557 srt:FederalHomeLoanBankOfIndianapolisMember 2021-06-30 0000230557 srt:FederalHomeLoanBankOfNewYorkMember 2021-06-30 xbrli:pure 0000230557 us-gaap:FixedMaturitiesMember 2021-04-01 2021-06-30 0000230557 us-gaap:FixedMaturitiesMember 2020-04-01 2020-06-30 0000230557 us-gaap:FixedMaturitiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:FixedMaturitiesMember 2020-01-01 2020-06-30 0000230557 sigi:CommercialMortgageLoansMember 2021-04-01 2021-06-30 0000230557 sigi:CommercialMortgageLoansMember 2020-04-01 2020-06-30 0000230557 sigi:CommercialMortgageLoansMember 2021-01-01 2021-06-30 0000230557 sigi:CommercialMortgageLoansMember 2020-01-01 2020-06-30 0000230557 us-gaap:EquitySecuritiesMember 2021-04-01 2021-06-30 0000230557 us-gaap:EquitySecuritiesMember 2020-04-01 2020-06-30 0000230557 us-gaap:ShortTermInvestmentsMember 2021-04-01 2021-06-30 0000230557 us-gaap:ShortTermInvestmentsMember 2020-04-01 2020-06-30 0000230557 us-gaap:ShortTermInvestmentsMember 2021-01-01 2021-06-30 0000230557 us-gaap:ShortTermInvestmentsMember 2020-01-01 2020-06-30 0000230557 us-gaap:OtherInvestmentsMember 2021-04-01 2021-06-30 0000230557 us-gaap:OtherInvestmentsMember 2020-04-01 2020-06-30 0000230557 us-gaap:OtherInvestmentsMember 2021-01-01 2021-06-30 0000230557 us-gaap:OtherInvestmentsMember 2020-01-01 2020-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2021-04-01 2021-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2020-04-01 2020-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember 2021-04-01 2021-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember 2020-04-01 2020-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:SevenPointTwentyFivePercentSeniorNotesMember 2021-06-30 0000230557 sigi:SevenPointTwentyFivePercentSeniorNotesMember 2021-06-30 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:SevenPointTwentyFivePercentSeniorNotesMember 2020-12-31 0000230557 sigi:SevenPointTwentyFivePercentSeniorNotesMember 2020-12-31 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:SixPointSeventyPercentSeniorNotesMember 2021-06-30 0000230557 sigi:SixPointSeventyPercentSeniorNotesMember 2021-06-30 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:SixPointSeventyPercentSeniorNotesMember 2020-12-31 0000230557 sigi:SixPointSeventyPercentSeniorNotesMember 2020-12-31 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:FivePointThreeHundredSeventyFiveMember 2021-06-30 0000230557 sigi:FivePointThreeHundredSeventyFiveMember 2021-06-30 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:FivePointThreeHundredSeventyFiveMember 2020-12-31 0000230557 sigi:FivePointThreeHundredSeventyFiveMember 2020-12-31 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2021-06-30 0000230557 sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2021-06-30 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2020-12-31 0000230557 sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2020-12-31 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member 2021-06-30 0000230557 sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member 2021-06-30 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member 2020-12-31 0000230557 sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member 2020-12-31 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2021-06-30 0000230557 sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2021-06-30 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2020-12-31 0000230557 sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2020-12-31 0000230557 sigi:LongTermDebtExcludingIssuanceCostsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-06-30 0000230557 sigi:LongTermDebtExcludingIssuanceCostsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-12-31 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:UnamortizedDebtIssuanceCostsMember 2021-06-30 0000230557 us-gaap:CarryingReportedAmountFairValueDisclosureMember sigi:UnamortizedDebtIssuanceCostsMember 2020-12-31 0000230557 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:CommonStockMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:NonredeemablePreferredStockMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:NonredeemablePreferredStockMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:NonredeemablePreferredStockMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:NonredeemablePreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0000230557 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:ResidentialMortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:CommonStockMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:NonredeemablePreferredStockMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:NonredeemablePreferredStockMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:NonredeemablePreferredStockMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:NonredeemablePreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember 2020-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember 2020-12-31 0000230557 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2020-12-31 0000230557 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember 2020-12-31 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:GainLossOnInvestmentsMember1 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:GainLossOnInvestmentsMember1 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:GainLossOnInvestmentsMember1 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:GainLossOnInvestmentsMember1 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember sigi:NetInvestmentIncomeEarnedMember 2021-01-01 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember sigi:NetInvestmentIncomeEarnedMember 2021-01-01 2021-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember sigi:NetInvestmentIncomeEarnedMember us-gaap:AssetBackedSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember sigi:NetInvestmentIncomeEarnedMember 2021-01-01 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember 2021-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2021-06-30 0000230557 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember 2019-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember 2019-12-31 0000230557 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2019-12-31 0000230557 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember 2019-12-31 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:GainLossOnInvestmentsMember1 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:GainLossOnInvestmentsMember1 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:GainLossOnInvestmentsMember1 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:GainLossOnInvestmentsMember1 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember sigi:NetInvestmentIncomeEarnedMember 2020-01-01 2020-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember sigi:NetInvestmentIncomeEarnedMember 2020-01-01 2020-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember sigi:NetInvestmentIncomeEarnedMember us-gaap:AssetBackedSecuritiesMember 2020-01-01 2020-06-30 0000230557 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember sigi:NetInvestmentIncomeEarnedMember 2020-01-01 2020-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember us-gaap:AvailableforsaleSecuritiesMember 2020-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember 2020-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember us-gaap:AssetBackedSecuritiesMember 2020-06-30 0000230557 us-gaap:InvestmentsMember us-gaap:AvailableforsaleSecuritiesMember 2020-06-30 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:USStatesAndPoliticalSubdivisionsMember 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember 2021-06-30 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member sigi:SevenPointTwentyFivePercentSeniorNotesMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member sigi:SevenPointTwentyFivePercentSeniorNotesMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member sigi:SevenPointTwentyFivePercentSeniorNotesMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member sigi:SixPointSeventyPercentSeniorNotesMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member sigi:SixPointSeventyPercentSeniorNotesMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member sigi:SixPointSeventyPercentSeniorNotesMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member sigi:FivePointThreeHundredSeventyFiveMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member sigi:FivePointThreeHundredSeventyFiveMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member sigi:FivePointThreeHundredSeventyFiveMember 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member 2021-06-30 0000230557 sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member us-gaap:FairValueInputsLevel3Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel1Member sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel2Member sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2021-06-30 0000230557 us-gaap:FairValueInputsLevel3Member sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2021-06-30 0000230557 us-gaap:LongTermDebtMember 2021-06-30 0000230557 us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member us-gaap:USStatesAndPoliticalSubdivisionsMember 2020-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember 2020-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember 2020-12-31 0000230557 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member sigi:SevenPointTwentyFivePercentSeniorNotesMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member sigi:SevenPointTwentyFivePercentSeniorNotesMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member sigi:SevenPointTwentyFivePercentSeniorNotesMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member sigi:SixPointSeventyPercentSeniorNotesMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member sigi:SixPointSeventyPercentSeniorNotesMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member sigi:SixPointSeventyPercentSeniorNotesMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member sigi:FivePointThreeHundredSeventyFiveMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member sigi:FivePointThreeHundredSeventyFiveMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member sigi:FivePointThreeHundredSeventyFiveMember 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member sigi:OnePointSixtyOnePercentBorrowingFromFederalHomeLoanBankDueJuly212021Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member 2020-12-31 0000230557 sigi:OnePointFiftySixPercentBorrowingFromFederalHomeLoanBankDueAugust162021Member us-gaap:FairValueInputsLevel3Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel1Member sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel2Member sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2020-12-31 0000230557 us-gaap:FairValueInputsLevel3Member sigi:ThreePointZeroThreePercentBorrowingFromFederalHomeLoanBankDueDecember162026Member 2020-12-31 0000230557 us-gaap:LongTermDebtMember 2020-12-31 0000230557 us-gaap:PremiumsReceivableMember us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2021-03-31 0000230557 us-gaap:PremiumsReceivableMember us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2020-03-31 0000230557 us-gaap:PremiumsReceivableMember us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2020-12-31 0000230557 us-gaap:PremiumsReceivableMember us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember 2019-12-31 0000230557 us-gaap:PremiumsReceivableMember 2021-03-31 0000230557 us-gaap:PremiumsReceivableMember 2020-03-31 0000230557 us-gaap:PremiumsReceivableMember 2020-12-31 0000230557 us-gaap:PremiumsReceivableMember 2019-12-31 0000230557 us-gaap:PremiumsReceivableMember 2021-04-01 2021-06-30 0000230557 us-gaap:PremiumsReceivableMember 2020-04-01 2020-06-30 0000230557 us-gaap:PremiumsReceivableMember 2021-01-01 2021-06-30 0000230557 us-gaap:PremiumsReceivableMember 2020-01-01 2020-06-30 0000230557 us-gaap:PremiumsReceivableMember 2021-06-30 0000230557 us-gaap:PremiumsReceivableMember 2020-06-30 0000230557 srt:AMBestAPlusPlusRatingMember 2021-06-30 0000230557 srt:AMBestAPlusRatingMember 2021-06-30 0000230557 srt:AMBestARatingMember 2021-06-30 0000230557 srt:AMBestAMinusRatingMember 2021-06-30 0000230557 srt:AMBestBPlusPlusRatingMember 2021-06-30 0000230557 srt:AMBestBPlusRatingMember 2021-06-30 0000230557 sigi:AMBestRatedReinsurerMember 2021-06-30 0000230557 sigi:TotalfederalandstatepoolsMember 2021-06-30 0000230557 sigi:OtherFederalAndStatePoolsMember 2021-06-30 0000230557 sigi:TotalNonRatedReinsurerMember 2021-06-30 0000230557 sigi:ReinsuranceRecoverableforPaidandUnpaidClaimsandClaimsAdjustmentsGrossMember 2021-06-30 0000230557 srt:AMBestAPlusPlusRatingMember 2020-12-31 0000230557 srt:AMBestAPlusRatingMember 2020-12-31 0000230557 srt:AMBestARatingMember 2020-12-31 0000230557 srt:AMBestAMinusRatingMember 2020-12-31 0000230557 srt:AMBestBPlusPlusRatingMember 2020-12-31 0000230557 srt:AMBestBPlusRatingMember 2020-12-31 0000230557 sigi:AMBestRatedReinsurerMember 2020-12-31 0000230557 sigi:TotalfederalandstatepoolsMember 2020-12-31 0000230557 sigi:OtherFederalAndStatePoolsMember 2020-12-31 0000230557 sigi:TotalNonRatedReinsurerMember 2020-12-31 0000230557 sigi:ReinsuranceRecoverableforPaidandUnpaidClaimsandClaimsAdjustmentsGrossMember 2020-12-31 0000230557 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember sigi:ReinsuranceRecoverableDomain 2021-03-31 0000230557 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember sigi:ReinsuranceRecoverableDomain 2020-03-31 0000230557 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember sigi:ReinsuranceRecoverableDomain 2020-12-31 0000230557 us-gaap:AccountingStandardsUpdate201613Member us-gaap:RetainedEarningsMember sigi:ReinsuranceRecoverableDomain 2019-12-31 0000230557 sigi:ReinsuranceRecoverableDomain 2021-03-31 0000230557 sigi:ReinsuranceRecoverableDomain 2020-03-31 0000230557 sigi:ReinsuranceRecoverableDomain 2020-12-31 0000230557 sigi:ReinsuranceRecoverableDomain 2019-12-31 0000230557 sigi:DirectAssumedAndCededReinsuranceAmountsMember 2021-04-01 2021-06-30 0000230557 sigi:DirectAssumedAndCededReinsuranceAmountsMember 2020-04-01 2020-06-30 0000230557 sigi:DirectAssumedAndCededReinsuranceAmountsMember 2021-01-01 2021-06-30 0000230557 sigi:DirectAssumedAndCededReinsuranceAmountsMember 2020-01-01 2020-06-30 0000230557 sigi:COVID19Member sigi:ReturnauditandmidtermendorsementpremiumMember 2021-04-01 2021-06-30 0000230557 sigi:COVID19Member sigi:PremiumCreditMember sigi:CommercialPersonalAutomobileMember 2020-04-01 2020-06-30 0000230557 sigi:COVID19Member sigi:ReturnauditandmidtermendorsementpremiumMember 2021-01-01 2021-06-30 0000230557 sigi:COVID19Member sigi:ReturnauditandmidtermendorsementpremiumMember 2020-01-01 2020-03-31 0000230557 sigi:NationalFloodInsuranceProgramMember 2021-01-01 2021-06-30 0000230557 sigi:NationalFloodInsuranceProgramMember 2021-04-01 2021-06-30 0000230557 sigi:NationalFloodInsuranceProgramMember 2020-04-01 2020-06-30 0000230557 sigi:NationalFloodInsuranceProgramMember 2020-01-01 2020-06-30 0000230557 sigi:ChangeinHistoricalClaimRateExperienceMember 2021-01-01 2021-06-30 0000230557 sigi:ChangeinHistoricalClaimRateExperienceMember 2020-01-01 2020-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember sigi:ChangeinHistoricalClaimRateExperienceMember 2021-01-01 2021-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember us-gaap:GeneralLiabilityMember sigi:ChangeinHistoricalClaimRateExperienceMember 2021-01-01 2021-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember us-gaap:WorkersCompensationInsuranceMember sigi:ChangeinHistoricalClaimRateExperienceMember 2021-01-01 2021-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember sigi:ESLinesMember sigi:ChangeinHistoricalClaimRateExperienceMember 2021-01-01 2021-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember sigi:ChangeinHistoricalClaimRateExperienceMember 2020-01-01 2020-06-30 0000230557 us-gaap:PropertyInsuranceProductLineMember sigi:ChangeinHistoricalClaimRateExperienceMember 2020-01-01 2020-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember us-gaap:WorkersCompensationInsuranceMember sigi:ChangeinHistoricalClaimRateExperienceMember 2020-01-01 2020-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember us-gaap:GeneralLiabilityMember sigi:ChangeinHistoricalClaimRateExperienceMember 2020-01-01 2020-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember sigi:CommercialAutomobileMember sigi:ChangeinHistoricalClaimRateExperienceMember 2020-01-01 2020-06-30 0000230557 sigi:CommercialPropertyMember sigi:StandardCommercialLinesMember 2021-04-01 2021-06-30 0000230557 sigi:CommercialPropertyMember sigi:StandardCommercialLinesMember 2020-04-01 2020-06-30 0000230557 sigi:CommercialPropertyMember sigi:StandardCommercialLinesMember 2021-01-01 2021-06-30 0000230557 sigi:CommercialPropertyMember sigi:StandardCommercialLinesMember 2020-01-01 2020-06-30 0000230557 sigi:WorkersCompensationMember sigi:StandardCommercialLinesMember 2021-04-01 2021-06-30 0000230557 sigi:WorkersCompensationMember sigi:StandardCommercialLinesMember 2020-04-01 2020-06-30 0000230557 sigi:WorkersCompensationMember sigi:StandardCommercialLinesMember 2021-01-01 2021-06-30 0000230557 sigi:WorkersCompensationMember sigi:StandardCommercialLinesMember 2020-01-01 2020-06-30 0000230557 us-gaap:GeneralLiabilityMember sigi:StandardCommercialLinesMember 2021-04-01 2021-06-30 0000230557 us-gaap:GeneralLiabilityMember sigi:StandardCommercialLinesMember 2020-04-01 2020-06-30 0000230557 us-gaap:GeneralLiabilityMember sigi:StandardCommercialLinesMember 2021-01-01 2021-06-30 0000230557 us-gaap:GeneralLiabilityMember sigi:StandardCommercialLinesMember 2020-01-01 2020-06-30 0000230557 sigi:CommercialAutomobileMember sigi:StandardCommercialLinesMember 2021-04-01 2021-06-30 0000230557 sigi:CommercialAutomobileMember sigi:StandardCommercialLinesMember 2020-04-01 2020-06-30 0000230557 sigi:CommercialAutomobileMember sigi:StandardCommercialLinesMember 2021-01-01 2021-06-30 0000230557 sigi:CommercialAutomobileMember sigi:StandardCommercialLinesMember 2020-01-01 2020-06-30 0000230557 sigi:BusinessOwnersPoliciesMember sigi:StandardCommercialLinesMember 2021-04-01 2021-06-30 0000230557 sigi:BusinessOwnersPoliciesMember sigi:StandardCommercialLinesMember 2020-04-01 2020-06-30 0000230557 sigi:BusinessOwnersPoliciesMember sigi:StandardCommercialLinesMember 2021-01-01 2021-06-30 0000230557 sigi:BusinessOwnersPoliciesMember sigi:StandardCommercialLinesMember 2020-01-01 2020-06-30 0000230557 us-gaap:SuretySegmentMember sigi:StandardCommercialLinesMember 2021-04-01 2021-06-30 0000230557 us-gaap:SuretySegmentMember sigi:StandardCommercialLinesMember 2020-04-01 2020-06-30 0000230557 us-gaap:SuretySegmentMember sigi:StandardCommercialLinesMember 2021-01-01 2021-06-30 0000230557 us-gaap:SuretySegmentMember sigi:StandardCommercialLinesMember 2020-01-01 2020-06-30 0000230557 sigi:OtherCommercialMember sigi:StandardCommercialLinesMember 2021-04-01 2021-06-30 0000230557 sigi:OtherCommercialMember sigi:StandardCommercialLinesMember 2020-04-01 2020-06-30 0000230557 sigi:OtherCommercialMember sigi:StandardCommercialLinesMember 2021-01-01 2021-06-30 0000230557 sigi:OtherCommercialMember sigi:StandardCommercialLinesMember 2020-01-01 2020-06-30 0000230557 sigi:StandardCommercialLinesMember 2021-04-01 2021-06-30 0000230557 sigi:StandardCommercialLinesMember 2020-04-01 2020-06-30 0000230557 sigi:StandardCommercialLinesMember 2021-01-01 2021-06-30 0000230557 sigi:StandardCommercialLinesMember 2020-01-01 2020-06-30 0000230557 sigi:PersonalAutomobileMember sigi:StandardPersonalLinesMember 2021-04-01 2021-06-30 0000230557 sigi:PersonalAutomobileMember sigi:StandardPersonalLinesMember 2020-04-01 2020-06-30 0000230557 sigi:PersonalAutomobileMember sigi:StandardPersonalLinesMember 2021-01-01 2021-06-30 0000230557 sigi:PersonalAutomobileMember sigi:StandardPersonalLinesMember 2020-01-01 2020-06-30 0000230557 sigi:HomeownersMember sigi:StandardPersonalLinesMember 2021-04-01 2021-06-30 0000230557 sigi:HomeownersMember sigi:StandardPersonalLinesMember 2020-04-01 2020-06-30 0000230557 sigi:HomeownersMember sigi:StandardPersonalLinesMember 2021-01-01 2021-06-30 0000230557 sigi:HomeownersMember sigi:StandardPersonalLinesMember 2020-01-01 2020-06-30 0000230557 sigi:OtherPersonalMember sigi:StandardPersonalLinesMember 2021-04-01 2021-06-30 0000230557 sigi:OtherPersonalMember sigi:StandardPersonalLinesMember 2020-04-01 2020-06-30 0000230557 sigi:OtherPersonalMember sigi:StandardPersonalLinesMember 2021-01-01 2021-06-30 0000230557 sigi:OtherPersonalMember sigi:StandardPersonalLinesMember 2020-01-01 2020-06-30 0000230557 sigi:StandardPersonalLinesMember 2021-04-01 2021-06-30 0000230557 sigi:StandardPersonalLinesMember 2020-04-01 2020-06-30 0000230557 sigi:StandardPersonalLinesMember 2021-01-01 2021-06-30 0000230557 sigi:StandardPersonalLinesMember 2020-01-01 2020-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember sigi:ESLinesMember 2021-04-01 2021-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember sigi:ESLinesMember 2020-04-01 2020-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember sigi:ESLinesMember 2021-01-01 2021-06-30 0000230557 sigi:CasualtyInsuranceProductLineMember sigi:ESLinesMember 2020-01-01 2020-06-30 0000230557 us-gaap:PropertyInsuranceProductLineMember sigi:ESLinesMember 2021-04-01 2021-06-30 0000230557 us-gaap:PropertyInsuranceProductLineMember sigi:ESLinesMember 2020-04-01 2020-06-30 0000230557 us-gaap:PropertyInsuranceProductLineMember sigi:ESLinesMember 2021-01-01 2021-06-30 0000230557 us-gaap:PropertyInsuranceProductLineMember sigi:ESLinesMember 2020-01-01 2020-06-30 0000230557 sigi:ESLinesMember 2021-04-01 2021-06-30 0000230557 sigi:ESLinesMember 2020-04-01 2020-06-30 0000230557 sigi:ESLinesMember 2021-01-01 2021-06-30 0000230557 sigi:ESLinesMember 2020-01-01 2020-06-30 0000230557 sigi:InvestmentsSIGIMember 2021-04-01 2021-06-30 0000230557 sigi:InvestmentsSIGIMember 2020-04-01 2020-06-30 0000230557 sigi:InvestmentsSIGIMember 2021-01-01 2021-06-30 0000230557 sigi:InvestmentsSIGIMember 2020-01-01 2020-06-30 0000230557 sigi:OperatingSegmentsSIGIMember 2021-04-01 2021-06-30 0000230557 sigi:OperatingSegmentsSIGIMember 2020-04-01 2020-06-30 0000230557 sigi:OperatingSegmentsSIGIMember 2021-01-01 2021-06-30 0000230557 sigi:OperatingSegmentsSIGIMember 2020-01-01 2020-06-30 0000230557 us-gaap:PensionPlansDefinedBenefitMember 2021-04-01 2021-06-30 0000230557 us-gaap:PensionPlansDefinedBenefitMember 2020-04-01 2020-06-30 0000230557 us-gaap:PensionPlansDefinedBenefitMember 2021-01-01 2021-06-30 0000230557 us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-06-30 0000230557 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2020-12-31 0000230557 us-gaap:HeldtomaturitySecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-12-31 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2020-12-31 0000230557 us-gaap:InvestmentsMember 2020-12-31 0000230557 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-12-31 0000230557 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2021-01-01 2021-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-01-01 2021-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2021-01-01 2021-06-30 0000230557 us-gaap:InvestmentsMember 2021-01-01 2021-06-30 0000230557 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-01 2021-06-30 0000230557 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2021-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-06-30 0000230557 us-gaap:AvailableforsaleSecuritiesMember 2021-06-30 0000230557 us-gaap:InvestmentsMember 2021-06-30 0000230557 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0000230557 us-gaap:HeldtomaturitySecuritiesMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000230557 us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithoutAllowanceForCreditLossParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000230557 us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithoutAllowanceForCreditLossParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000230557 us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithoutAllowanceForCreditLossParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0000230557 us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithoutAllowanceForCreditLossParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000230557 us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000230557 us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000230557 us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0000230557 us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000230557 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000230557 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000230557 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0000230557 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000230557 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000230557 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000230557 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0000230557 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000230557 2020-12-02 0000230557 us-gaap:SubsequentEventMember 2021-07-21 2021-07-21 0000230557 us-gaap:SubsequentEventMember 2021-07-21
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2021
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_____________________________to_____________________________
Commission File Number: 001-33067
SELECTIVE INSURANCE GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)

New Jersey | 22-2168890
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.)

40 Wantage Avenue
Branchville, New Jersey 07890
(Address of Principal Executive Offices) (Zip Code)

973 | 948-3000
(Registrant’s Telephone Number, Including Area Code)
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class |  | Trading Symbol (s) |  | Name of each exchange on which registered
Common Stock, par value $2 per share |  | SIGI |  | The Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, without par value |  | SIGIP |  | The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer | ☒ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company | ☐
|  | Emerging growth company | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
As of July 16, 2021, there were 60,107,525 shares of common stock, par value $2.00 per share, outstanding.

Table of Contents

| SELECTIVE INSURANCE GROUP, INC. |
| Table of Contents |
|  | Page No.
PART I. FINANCIAL INFORMATION |
Item 1. | Financial Statements |
| Consolidated Balance Sheets as of June 30, 2021 (Unaudited) and December 31, 2020 | 1
| Unaudited Consolidated Statements of Income for the Quarter and Six Months Ended June 30, 2021 and 2020 | 2
| Unaudited Consolidated Statements of Comprehensive Income for the Quarter and Six Months Ended June 30, 2021 and 2020 | 3
| Unaudited Consolidated Statements of Stockholders' Equity for the Quarter and Six Months Ended June 30, 2021 and 2020 | 4
| Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020 | 5
| Notes to Unaudited Interim Consolidated Financial Statements | 6
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| Forward-Looking Statements | 24
| Introduction | 24
| Critical Accounting Policies and Estimates | 25
| Financial Highlights of Results for Second Quarter and Six Months 2021 and 2020 | 26
| Results of Operations and Related Information by Segment | 28
| Federal Income Taxes | 38
| Financial Condition, Liquidity, and Capital Resources | 39
| Ratings | 41
| Off-Balance Sheet Arrangements | 42
| Contractual Obligations, Contingent Liabilities, and Commitments | 42
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 42
Item 4. | Controls and Procedures | 42
PART II. OTHER INFORMATION
Item 1. | Legal Proceedings | 43
Item 1A. | Risk Factors | 43
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 43
Item 6. | Exhibits | 44
Signatures | 44

Table of Contents

PART I. FINANCIAL INFORMATION |

ITEM 1. FINANCIAL STATEMENTS. |

SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS |  | Unaudited |  |
($ in thousands, except share amounts) |  | June 30, 2021 |  | December 31, 2020
ASSETS |  |  |  |
Investments: |  |  |  |
Fixed income securities, held-to-maturity – at carrying value (fair value: $27,882 – 2021; $18,001 – 2020) |  | $ | 27,035 |  |  | 16,846 |
Less: allowance for credit losses |  | (79) |  |  | (22) |
Fixed income securities, held-to-maturity, net of allowance for credit losses |  | 26,956 |  |  | 16,824 |
Fixed income securities, available-for-sale – at fair value (allowance for credit losses: $6,011 – 2021 and $3,969 – 2020; amortized cost: $6,311,749 – 2021 and $6,073,517 – 2020) |  | 6,626,400 |  |  | 6,455,928 |
Commercial mortgage loans – at carrying value (fair value: $73,559 – 2021 and $47,289 – 2020) |  | 72,034 |  |  | 46,306 |
Less: allowance for credit losses |  | — |  |  | — |
Commercial mortgage loans, net of allowance for credit losses |  | 72,034 |  |  | 46,306 |
Equity securities – at fair value (cost: $320,586 – 2021; $301,551 – 2020) |  | 348,342 |  |  | 310,367 |
Short-term investments |  | 351,230 |  |  | 409,852 |
Other investments |  | 330,479 |  |  | 266,322 |
Total investments (Note 4 and 5) |  | 7,755,441 |  |  | 7,505,599 |
Cash |  | 450 |  |  | 394 |
Restricted cash |  | 8,803 |  |  | 14,837 |
Interest and dividends due or accrued |  | 46,069 |  |  | 45,004 |
Premiums receivable |  | 1,006,250 |  |  | 857,014 |
Less: allowance for credit losses (Note 6) |  | (18,300) |  |  | (21,000) |
Premiums receivable, net of allowance for credit losses |  | 987,950 |  |  | 836,014 |
Reinsurance recoverable |  | 598,658 |  |  | 589,269 |
Less: allowance for credit losses (Note 7) |  | (1,777) |  |  | (1,777) |
Reinsurance recoverable, net of allowance for credit losses |  | 596,881 |  |  | 587,492 |
Prepaid reinsurance premiums |  | 177,663 |  |  | 170,531 |
Property and equipment – at cost, net of accumulated depreciation and amortization of: $251,533 – 2021; $240,150 – 2020 |  | 75,142 |  |  | 77,696 |
Deferred policy acquisition costs |  | 323,155 |  |  | 288,578 |
Goodwill |  | 7,849 |  |  | 7,849 |
Other assets |  | 188,468 |  |  | 153,919 |
Total assets |  | $ | 10,167,871 |  |  | 9,687,913 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |
Liabilities: |  |  |  |
Reserve for loss and loss expense (Note 8) |  | $ | 4,437,253 |  |  | 4,260,355 |
Unearned premiums |  | 1,791,308 |  |  | 1,618,271 |
Long-term debt |  | 550,881 |  |  | 550,743 |
Current federal income tax |  | 7,451 |  |  | 14,021 |
Deferred federal income tax |  | 10,881 |  |  | 27,096 |
Accrued salaries and benefits |  | 103,383 |  |  | 114,868 |
Other liabilities |  | 375,347 |  |  | 363,670 |
Total liabilities |  | $ | 7,276,504 |  |  | 6,949,024 |
Stockholders’ Equity: |  |  |  |
Preferred stock of $0 par value per share: |  | $ | 200,000 |  |  | 200,000 |
Authorized shares 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share - 2021 and 2020 |  |  |  |
Common stock of $2 par value per share: |  |  |  |
Authorized shares 360,000,000 |  |  |  |
Issued: 104,371,083 – 2021; 104,032,912 – 2020 |  | 208,742 |  |  | 208,066 |
Additional paid-in capital |  | 454,459 |  |  | 438,985 |
Retained earnings |  | 2,467,596 |  |  | 2,271,537 |
Accumulated other comprehensive income (Note 11) |  | 169,371 |  |  | 220,186 |
Treasury stock – at cost (shares: 44,264,847 – 2021; 44,127,109 – 2020) (Note 12) |  | (608,801) |  |  | (599,885) |
Total stockholders’ equity |  | $ | 2,891,367 |  |  | 2,738,889 |
Commitments and contingencies |  |  |  |
Total liabilities and stockholders’ equity |  | $ | 10,167,871 |  |  | 9,687,913 |

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
1

Table of Contents

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands, except per share amounts) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Revenues: |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 740,518 |  |  | 630,671 |  |  | $ | 1,465,478 |  |  | 1,282,374 |
Net investment income earned |  | 83,731 |  |  | 34,444 |  |  | 153,447 |  |  | 90,411 |
Net realized and unrealized investment gains (losses) |  | 10,057 |  |  | 12,649 |  |  | 15,176 |  |  | (32,017) |
Other income |  | 6,212 |  |  | 4,683 |  |  | 10,324 |  |  | 6,508 |
Total revenues |  | 840,518 |  |  | 682,447 |  |  | 1,644,425 |  |  | 1,347,276 |
Expenses: |  |  |  |  |  |  |  |
Loss and loss expense incurred |  | 421,623 |  |  | 403,949 |  |  | 835,024 |  |  | 804,273 |
Amortization of deferred policy acquisition costs |  | 154,357 |  |  | 136,931 |  |  | 303,408 |  |  | 273,432 |
Other insurance expenses |  | 94,862 |  |  | 84,601 |  |  | 183,772 |  |  | 179,947 |
Interest expense |  | 7,366 |  |  | 7,928 |  |  | 14,725 |  |  | 15,529 |
Corporate expenses |  | 9,112 |  |  | 6,345 |  |  | 18,666 |  |  | 15,405 |
Total expenses |  | 687,320 |  |  | 639,754 |  |  | 1,355,595 |  |  | 1,288,586 |
Income before federal income tax |  | 153,198 |  |  | 42,693 |  |  | 288,830 |  |  | 58,690 |
Federal income tax expense: |  |  |  |  |  |  |  |
Current |  | 32,017 |  |  | (1,350) |  |  | 60,441 |  |  | 8,536 |
Deferred |  | (702) |  |  | 9,860 |  |  | (2,764) |  |  | 735 |
Total federal income tax expense |  | 31,315 |  |  | 8,510 |  |  | 57,677 |  |  | 9,271 |
Net income |  | $ | 121,883 |  |  | 34,183 |  |  | $ | 231,153 |  |  | 49,419 |
Preferred stock dividends |  | 2,300 |  |  | — |  |  | 4,753 |  |  | — |
Net income available to common stockholders |  | $ | 119,583 |  |  | 34,183 |  |  | $ | 226,400 |  |  | 49,419 |
Earnings per common share: |  |  |  |  |  |  |  |
Net income available to common stockholders - Basic |  | $ | 1.99 |  |  | 0.57 |  |  | $ | 3.77 |  |  | 0.83 |
Net income available to common stockholders - Diluted |  | $ | 1.98 |  |  | 0.57 |  |  | $ | 3.74 |  |  | 0.82 |

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
2

Table of Contents

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Net income |  | $ | 121,883 |  |  | 34,183 |  |  | $ | 231,153 |  |  | 49,419 |
Other comprehensive income (loss) ("OCI"), net of tax: |  |  |  |  |  |  |  |
Unrealized gains (losses) on investment securities: |  |  |  |  |  |  |  |
Unrealized holding gains (losses) arising during period |  | 28,086 |  |  | 149,127 |  |  | (53,527) |  |  | 74,882 |
Unrealized gains (losses) on securities with credit loss recognized in earnings |  | 7,888 |  |  | 29,608 |  |  | (1,055) |  |  | (22,050) |
Amounts reclassified into net income: |  |  |  |  |  |  |  |
Held-to-maturity ("HTM") securities |  | (2) |  |  | (25) |  |  | (4) |  |  | (5) |
Net realized losses (gains) on disposals and intent-to-sell available-for-sale ("AFS") securities |  | 46 |  |  | (1,332) |  |  | 523 |  |  | 7,616 |
Credit loss (benefit) expense |  | (1,795) |  |  | (3,890) |  |  | 2,153 |  |  | 8,582 |
Total unrealized gains (losses) on investment securities |  | 34,223 |  |  | 173,488 |  |  | (51,910) |  |  | 69,025 |
Defined benefit pension and post-retirement plans: |  |  |  |  |  |  |  |
Amounts reclassified into net income: |  |  |  |  |  |  |  |
Net actuarial loss |  | 548 |  |  | 595 |  |  | 1,095 |  |  | 1,191 |
Total defined benefit pension and post-retirement plans |  | 548 |  |  | 595 |  |  | 1,095 |  |  | 1,191 |
Other comprehensive income (loss) |  | 34,771 |  |  | 174,083 |  |  | (50,815) |  |  | 70,216 |
Comprehensive income |  | $ | 156,654 |  |  | 208,266 |  |  | $ | 180,338 |  |  | 119,635 |

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
3

Table of Contents

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands, except share and per share amounts) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Preferred stock: |  |  |  |  |  |  |  |
Beginning of period |  | $ | 200,000 |  |  | — |  |  | $ | 200,000 |  |  | — |
Issuance of preferred stock |  | — |  |  | — |  |  | — |  |  | — |
End of period |  | 200,000 |  |  | — |  |  | 200,000 |  |  | — |
Common stock: |  |  |  |  |  |  |  |
Beginning of period |  | 208,576 |  |  | 207,665 |  |  | 208,066 |  |  | 206,968 |
Dividend reinvestment plan |  | 11 |  |  | 16 |  |  | 24 |  |  | 30 |
Stock purchase and compensation plans |  | 155 |  |  | 194 |  |  | 652 |  |  | 877 |
End of period |  | 208,742 |  |  | 207,875 |  |  | 208,742 |  |  | 207,875 |
Additional paid-in capital: |  |  |  |  |  |  |  |
Beginning of period |  | 446,410 |  |  | 427,328 |  |  | 438,985 |  |  | 418,521 |
Dividend reinvestment plan |  | 416 |  |  | 407 |  |  | 845 |  |  | 815 |
Stock purchase and compensation plans |  | 7,633 |  |  | 7,284 |  |  | 14,629 |  |  | 15,683 |
End of period |  | 454,459 |  |  | 435,019 |  |  | 454,459 |  |  | 435,019 |
Retained earnings: |  |  |  |  |  |  |  |
Beginning of period, as previously reported |  | 2,363,189 |  |  | 2,083,340 |  |  | 2,271,537 |  |  | 2,080,529 |
Cumulative effect adjustment due to adoption of guidance on allowance for credit losses, net of tax |  | — |  |  | — |  |  | — |  |  | 1,435 |
Balance at beginning of period, as adjusted |  | 2,363,189 |  |  | 2,083,340 |  |  | 2,271,537 |  |  | 2,081,964 |
Net income |  | 121,883 |  |  | 34,183 |  |  | 231,153 |  |  | 49,419 |
Dividends to preferred stockholders |  | (2,300) |  |  | — |  |  | (4,753) |  |  | — |
Dividends to common stockholders |  | (15,176) |  |  | (13,894) |  |  | (30,341) |  |  | (27,754) |
End of period |  | 2,467,596 |  |  | 2,103,629 |  |  | 2,467,596 |  |  | 2,103,629 |
Accumulated other comprehensive income (loss) ("AOCI"): |  |  |  |  |  |  |  |
Beginning of period |  | 134,600 |  |  | (22,117) |  |  | 220,186 |  |  | 81,750 |
Other comprehensive income (loss) |  | 34,771 |  |  | 174,083 |  |  | (50,815) |  |  | 70,216 |
End of period |  | 169,371 |  |  | 151,966 |  |  | 169,371 |  |  | 151,966 |
Treasury stock: |  |  |  |  |  |  |  |
Beginning of period |  | (608,730) |  |  | (599,760) |  |  | (599,885) |  |  | (592,832) |
Acquisition of treasury stock - share repurchase authorization |  | — |  |  | — |  |  | (3,404) |  |  | — |
Acquisition of treasury stock - shares acquired related to employee-share based compensation plans |  | (71) |  |  | (54) |  |  | (5,512) |  |  | (6,982) |
End of period |  | (608,801) |  |  | (599,814) |  |  | (608,801) |  |  | (599,814) |
Total stockholders’ equity |  | $ | 2,891,367 |  |  | 2,298,675 |  |  | $ | 2,891,367 |  |  | 2,298,675 |
Dividends declared per preferred share |  | $ | 287.50 |  |  | — |  |  | $ | 594.17 |  |  | — |
Dividends declared per common share |  | $ | 0.25 |  |  | 0.23 |  |  | $ | 0.50 |  |  | 0.46 |
Preferred stock, shares outstanding: |  |  |  |  |  |  |  |
Beginning of period |  | 8,000 |  |  | — |  |  | 8,000 |  |  | — |
Issuance of preferred stock |  | — |  |  | — |  |  | — |  |  | — |
End of period |  | 8,000 |  |  | — |  |  | 8,000 |  |  | — |
Common stock, shares outstanding: |  |  |  |  |  |  |  |
Beginning of period |  | 60,023,883 |  |  | 59,707,545 |  |  | 59,905,803 |  |  | 59,461,153 |
Dividend reinvestment plan |  | 5,636 |  |  | 7,899 |  |  | 12,056 |  |  | 14,874 |
Stock purchase and compensation plan |  | 77,656 |  |  | 97,365 |  |  | 326,115 |  |  | 438,601 |
Acquisition of treasury stock - share repurchase authorization |  | — |  |  | — |  |  | (52,781) |  |  | — |
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans |  | (939) |  |  | (1,067) |  |  | (84,957) |  |  | (102,886) |
End of period |  | 60,106,236 |  |  | 59,811,742 |  |  | 60,106,236 |  |  | 59,811,742 |

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
4

Table of Contents

SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020
Operating Activities |  |  |  |
Net income |  | $ | 231,153 |  |  | 49,419 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |
Depreciation and amortization |  | 27,451 |  |  | 29,634 |
Stock-based compensation expense |  | 10,927 |  |  | 11,198 |
Undistributed (gains) losses of equity method investments |  | (34,841) |  |  | 7,319 |
Distributions in excess of current year income of equity method investments |  | 1,817 |  |  | 8,488 |
Net realized and unrealized (gains) losses |  | (15,176) |  |  | 32,017 |
Loss on disposal of fixed assets |  | 10 |  |  | 17 |
Changes in assets and liabilities: |  |  |  |
Increase in reserve for loss and loss expense, net of reinsurance recoverable |  | 167,509 |  |  | 101,151 |
Increase in unearned premiums, net of prepaid reinsurance |  | 165,905 |  |  | 89,705 |
(Decrease) increase in net federal income taxes |  | (9,278) |  |  | 8,340 |
Increase in premiums receivable |  | (151,936) |  |  | (44,095) |
Increase in deferred policy acquisition costs |  | (34,577) |  |  | (14,269) |
Increase in interest and dividends due or accrued |  | (1,124) |  |  | (934) |
Decrease in accrued salaries and benefits |  | (11,485) |  |  | (44,082) |
Increase in other assets |  | (21,991) |  |  | (2,753) |
Decrease in other liabilities |  | (31,912) |  |  | (33,770) |
Net cash provided by operating activities |  | 292,452 |  |  | 197,385 |
Investing Activities |  |  |  |
Purchase of fixed income securities, held-to-maturity |  | (11,250) |  |  | — |
Purchase of fixed income securities, available-for-sale |  | (1,158,017) |  |  | (961,803) |
Purchase of commercial mortgage loans |  | (25,945) |  |  | (17,934) |
Purchase of equity securities |  | (76,793) |  |  | (73,879) |
Purchase of other investments |  | (40,286) |  |  | (39,400) |
Purchase of short-term investments |  | (2,596,863) |  |  | (3,368,828) |
Sale of fixed income securities, available-for-sale |  | 307,057 |  |  | 302,342 |
Proceeds from commercial mortgage loans |  | 217 |  |  | 54 |
Sale of short-term investments |  | 2,655,450 |  |  | 3,278,106 |
Redemption and maturities of fixed income securities, held-to-maturity |  | 1,032 |  |  | 1,200 |
Redemption and maturities of fixed income securities, available-for-sale |  | 629,512 |  |  | 461,527 |
Sale of equity securities |  | 57,316 |  |  | 1,320 |
Sale of other investments |  | 3,128 |  |  | 53 |
Distributions from other investments |  | 6,245 |  |  | 7,349 |
Purchase of property and equipment |  | (9,491) |  |  | (12,634) |
Net cash used in investing activities |  | (258,688) |  |  | (422,527) |
Financing Activities |  |  |  |
Dividends to preferred stockholders |  | (4,753) |  |  | — |
Dividends to common stockholders |  | (29,155) |  |  | (26,631) |
Acquisition of treasury stock |  | (8,916) |  |  | (6,982) |
Net proceeds from stock purchase and compensation plans |  | 3,790 |  |  | 4,731 |
Preferred stock issued, net of issuance costs |  | (479) |  |  | — |
Proceeds from borrowings |  | — |  |  | 387,000 |
Repayments of borrowings |  | — |  |  | (135,000) |
Repayments of finance lease obligations |  | (229) |  |  | (314) |
Net cash (used in) provided by financing activities |  | (39,742) |  |  | 222,804 |
Net decrease in cash and restricted cash |  | (5,978) |  |  | (2,338) |
Cash and restricted cash, beginning of year |  | 15,231 |  |  | 7,975 |
Cash and restricted cash, end of period |  | $ | 9,253 |  |  | 5,637 |

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
5

Table of Contents
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. Basis of Presentation
The words "Company,” “we,” “us,” or “our” refer to Selective Insurance Group, Inc. (the "Parent") and its subsidiaries, except as expressly indicated or the context requires otherwise. We have prepared our interim unaudited consolidated financial statements (“Financial Statements”) in conformity with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. These require us to make estimates and assumptions that affect the reported financial statement balances and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany accounts and transactions between the Parent and its subsidiaries are eliminated in consolidation.
Our Financial Statements reflect all adjustments that, in our opinion, are normal, recurring, and necessary for a fair presentation of our results of operations and financial condition. Our Financial Statements cover the second quarters ended June 30, 2021 (“Second Quarter 2021”) and June 30, 2020 (“Second Quarter 2020”) and the six-month periods ended June 30, 2021 (“Six Months 2021”) and June 30, 2020 (“Six Months 2020”). Our Financial Statements do not include all information and disclosures required by GAAP and the SEC for audited annual financial statements. Because results of operations for any interim period are not necessarily indicative of results for a full year, our Financial Statements should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”) filed with the SEC.
NOTE 2. Adoption of Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). Among other items, ASU 2019-12 simplifies the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. ASU 2019-12 provides that all effects of a tax law change, including adjustment of the estimated annual effective tax rate, are recognized in the period of enactment.
For year-to-date losses in interim periods, an entity is required currently to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. When an interim period loss exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this limitation and an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate.
We adopted this guidance on January 1, 2021, and it did not have a material impact to our financial condition, cash flows, or results of operations.
Pronouncements to be effective in the future
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition away from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. Companies can elect to adopt ASU 2020-04 as of the beginning of the interim period that includes March 2020, or any date thereafter through December 31, 2022. We are currently evaluating the impact of this guidance on our financial condition and results of operations.
6

Table of Contents
NOTE 3. Statements of Cash Flows
Supplemental cash flow information was as follows:

|  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020
Cash paid during the period for: |  |  |  |
Interest |  | $ | 14,547 |  |  | 14,920 |
Federal income tax |  | 66,000 |  |  | — |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | 4,348 |  |  | 4,443 |
Operating cash flows from financing leases |  | 4 |  |  | 10 |
Financing cash flows from finance leases |  | 229 |  |  | 314 |
Non-cash items: |  |  |  |
Corporate actions related to fixed income securities, AFS 1 |  | 45,392 |  |  | 18,224 |
Corporate actions related to fixed income securities, HTM 1 |  | — |  |  | 2,596 |
Corporate actions related to equity securities 1 |  | 527 |  |  | 890 |
Assets acquired under finance lease arrangements |  | 183 |  |  | 119 |
Assets acquired under operating lease arrangements |  | 16 |  |  | 4,358 |
Non-cash purchase of property and equipment |  | 35 |  |  | 60 |

1 Examples of corporate actions include exchanges, non-cash acquisitions, and stock splits.
The following table reconciles cash and restricted cash reported in the Consolidated Balance Sheets with what is reported in the Consolidated Statements of Cash Flows:

($ in thousands) |  | June 30, 2021 |  | December 31, 2020
Cash |  | $ | 450 |  |  | 394 |
Restricted cash |  | 8,803 |  |  | 14,837 |
Total cash and restricted cash shown in the Statements of Cash Flows |  | $ | 9,253 |  |  | 15,231 |

Amounts included in restricted cash represent cash received from the National Flood Insurance Program ("NFIP"), which is restricted to pay flood claims under the Write Your Own program.
NOTE 4. Investments
(a) Information about our AFS securities as of June 30, 2021, and December 31, 2020, is as follows:

June 30, 2021 |  |  |  |  |  |  |  |  |  |
($ in thousands) |  | Cost/ Amortized Cost |  | Allowance for Credit Losses |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
AFS fixed income securities: |  |  |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 132,506 |  |  | — |  |  | 4,319 |  |  | (631) |  |  | 136,194 |
Foreign government |  | 14,578 |  |  | (49) |  |  | 819 |  |  | (73) |  |  | 15,275 |
Obligations of states and political subdivisions |  | 1,119,039 |  |  | (38) |  |  | 81,003 |  |  | (103) |  |  | 1,199,901 |
Corporate securities |  | 2,325,858 |  |  | (3,477) |  |  | 146,061 |  |  | (1,555) |  |  | 2,466,887 |
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS") |  | 1,266,236 |  |  | (1,399) |  |  | 20,110 |  |  | (2,724) |  |  | 1,282,223 |
Residential mortgage-backed securities ("RMBS") |  | 820,650 |  |  | (1,034) |  |  | 35,655 |  |  | (774) |  |  | 854,497 |
Commercial mortgage-backed securities ("CMBS") |  | 632,882 |  |  | (14) |  |  | 39,420 |  |  | (865) |  |  | 671,423 |
Total AFS fixed income securities |  | $ | 6,311,749 |  |  | (6,011) |  |  | 327,387 |  |  | (6,725) |  |  | 6,626,400 |

7

Table of Contents

December 31, 2020 |  |  |  |  |  |  |  |  |  |
($ in thousands) |  | Cost/ Amortized Cost |  | Allowance for Credit Losses |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
AFS fixed income securities: |  |  |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 110,038 |  |  | — |  |  | 6,239 |  |  | (137) |  |  | 116,140 |
Foreign government |  | 16,801 |  |  | (1) |  |  | 1,569 |  |  | (3) |  |  | 18,366 |
Obligations of states and political subdivisions |  | 1,159,588 |  |  | (4) |  |  | 87,564 |  |  | (11) |  |  | 1,247,137 |
Corporate securities |  | 2,152,203 |  |  | (2,782) |  |  | 180,971 |  |  | (2,340) |  |  | 2,328,052 |
CLO and other ABS |  | 1,014,820 |  |  | (592) |  |  | 20,166 |  |  | (7,843) |  |  | 1,026,551 |
RMBS |  | 999,485 |  |  | (561) |  |  | 53,065 |  |  | (201) |  |  | 1,051,788 |
CMBS |  | 620,582 |  |  | (29) |  |  | 48,348 |  |  | (1,007) |  |  | 667,894 |
Total AFS fixed income securities |  | $ | 6,073,517 |  |  | (3,969) |  |  | 397,922 |  |  | (11,542) |  |  | 6,455,928 |

The following tables provide a roll forward of the allowance for credit losses on our AFS fixed income securities for the periods indicated:

Quarter ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
($ in thousands) |  | Beginning Balance |  | Current Provision for Securities without Prior Allowance |  | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities |  | Reductions for Securities Sold |  | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period |  | Ending Balance
Foreign government |  | $ | 56 |  |  | — |  |  | (7) |  |  | — |  |  | — |  |  | 49 |
Obligations of states and political subdivisions |  | 201 |  |  | — |  |  | (163) |  |  | — |  |  | — |  |  | 38 |
Corporate securities |  | 6,166 |  |  | 148 |  |  | (2,403) |  |  | (373) |  |  | (61) |  |  | 3,477 |
CLO and other ABS |  | 1,470 |  |  | — |  |  | (70) |  |  | (1) |  |  | — |  |  | 1,399 |
RMBS |  | 864 |  |  | 3 |  |  | 230 |  |  | (63) |  |  | — |  |  | 1,034 |
CMBS |  | 24 |  |  | 4 |  |  | (14) |  |  | — |  |  | — |  |  | 14 |
Total AFS fixed income securities |  | $ | 8,781 |  |  | 155 |  |  | (2,427) |  |  | (437) |  |  | (61) |  |  | 6,011 |

Quarter ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |
($ in thousands) |  | Beginning Balance |  | Current Provision for Securities without Prior Allowance |  | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities |  | Reductions for Securities Sold |  | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period |  | Ending Balance
Foreign government |  | $ | 21 |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | 28 |
Obligations of states and political subdivisions |  | 29 |  |  | 15 |  |  | (27) |  |  | — |  |  | — |  |  | 17 |
Corporate securities |  | 13,412 |  |  | 813 |  |  | (5,686) |  |  | (395) |  |  | (67) |  |  | 8,077 |
CLO and other ABS |  | 1,565 |  |  | 27 |  |  | (145) |  |  | (58) |  |  | — |  |  | 1,389 |
RMBS |  | 722 |  |  | — |  |  | 124 |  |  | (15) |  |  | — |  |  | 831 |
CMBS |  | 38 |  |  | 8 |  |  | 7 |  |  | — |  |  | — |  |  | 53 |
Total AFS fixed income securities |  | $ | 15,787 |  |  | 863 |  |  | (5,720) |  |  | (468) |  |  | (67) |  |  | 10,395 |

Six Months ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
($ in thousands) |  | Beginning Balance |  | Current Provision for Securities without Prior Allowance |  | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities |  | Reductions for Securities Sold |  | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period |  | Ending Balance
Foreign government |  | $ | 1 |  |  | 49 |  |  | (1) |  |  | — |  |  | — |  |  | 49 |
Obligations of states and political subdivisions |  | 4 |  |  | 25 |  |  | 9 |  |  | — |  |  | — |  |  | 38 |
Corporate securities |  | 2,782 |  |  | 2,185 |  |  | (909) |  |  | (520) |  |  | (61) |  |  | 3,477 |
CLO and other ABS |  | 592 |  |  | 941 |  |  | (116) |  |  | (18) |  |  | — |  |  | 1,399 |
RMBS |  | 561 |  |  | 618 |  |  | (68) |  |  | (77) |  |  | — |  |  | 1,034 |
CMBS |  | 29 |  |  | 2 |  |  | (17) |  |  | — |  |  | — |  |  | 14 |
Total AFS fixed income securities |  | $ | 3,969 |  |  | 3,820 |  |  | (1,102) |  |  | (615) |  |  | (61) |  |  | 6,011 |

8

Table of Contents

Six Months ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |
($ in thousands) |  | Beginning Balance |  | Current Provision for Securities without Prior Allowance |  | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities |  | Reductions for Securities Sold |  | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period |  | Ending Balance
Foreign government |  | $ | — |  |  | 28 |  |  | — |  |  | — |  |  | — |  |  | 28 |
Obligations of states and political subdivisions |  | — |  |  | 17 |  |  | — |  |  | — |  |  | — |  |  | 17 |
Corporate securities |  | — |  |  | 8,539 |  |  | — |  |  | (395) |  |  | (67) |  |  | 8,077 |
CLO and other ABS |  | — |  |  | 1,447 |  |  | — |  |  | (58) |  |  | — |  |  | 1,389 |
RMBS |  | — |  |  | 846 |  |  | — |  |  | (15) |  |  | — |  |  | 831 |
CMBS |  | — |  |  | 53 |  |  | — |  |  | — |  |  | — |  |  | 53 |
Total AFS fixed income securities |  | $ | — |  |  | 10,930 |  |  | — |  |  | (468) |  |  | (67) |  |  | 10,395 |

For information on our methodology and significant inputs used to measure expected credit losses, our accounting policy for recognizing write-offs of uncollectible amounts, and our treatment of accrued interest, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report. Accrued interest on AFS securities was $44.9 million as of June 30, 2021, and $43.8 million as of December 31, 2020. We did not record any write-offs during 2021 or 2020.
(b) Quantitative information about unrealized losses on our AFS portfolio is provided below.

June 30, 2021 |  | Less than 12 months |  | 12 months or longer |  | Total
($ in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
AFS fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 17,582 |  |  | (631) |  |  | — |  |  | — |  |  | 17,582 |  |  | (631) |
Foreign government |  | 3,122 |  |  | (73) |  |  | — |  |  | — |  |  | 3,122 |  |  | (73) |
Obligations of states and political subdivisions |  | 7,222 |  |  | (103) |  |  | — |  |  | — |  |  | 7,222 |  |  | (103) |
Corporate securities |  | 84,676 |  |  | (880) |  |  | 6,163 |  |  | (675) |  |  | 90,839 |  |  | (1,555) |
CLO and other ABS |  | 415,284 |  |  | (1,699) |  |  | 71,126 |  |  | (1,025) |  |  | 486,410 |  |  | (2,724) |
RMBS |  | 84,141 |  |  | (774) |  |  | — |  |  | — |  |  | 84,141 |  |  | (774) |
CMBS |  | 54,258 |  |  | (704) |  |  | 14,511 |  |  | (161) |  |  | 68,769 |  |  | (865) |
Total AFS fixed income securities |  | $ | 666,285 |  |  | (4,864) |  |  | 91,800 |  |  | (1,861) |  |  | 758,085 |  |  | (6,725) |

December 31, 2020 |  | Less than 12 months |  | 12 months or longer |  | Total
($ in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
AFS fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 11,519 |  |  | (137) |  |  | — |  |  | — |  |  | 11,519 |  |  | (137) |
Foreign government |  | 1,122 |  |  | (3) |  |  | — |  |  | — |  |  | 1,122 |  |  | (3) |
Obligations of states and political subdivisions |  | 2,223 |  |  | (11) |  |  | — |  |  | — |  |  | 2,223 |  |  | (11) |
Corporate securities |  | 65,187 |  |  | (2,152) |  |  | 2,400 |  |  | (188) |  |  | 67,587 |  |  | (2,340) |
CLO and other ABS |  | 261,746 |  |  | (2,995) |  |  | 165,661 |  |  | (4,848) |  |  | 427,407 |  |  | (7,843) |
RMBS |  | 18,227 |  |  | (194) |  |  | 1,181 |  |  | (7) |  |  | 19,408 |  |  | (201) |
CMBS |  | 55,482 |  |  | (616) |  |  | 16,093 |  |  | (391) |  |  | 71,575 |  |  | (1,007) |
Total AFS fixed income securities |  | $ | 415,506 |  |  | (6,108) |  |  | 185,335 |  |  | (5,434) |  |  | 600,841 |  |  | (11,542) |

We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. The decrease in gross unrealized losses during Six Months 2021 was driven by an increase in longer-dated benchmark United States Treasury rates, partially offset by the tightening of credit spreads. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report, we have concluded that no allowance for credit loss is required on these balances. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral.
9

Table of Contents
(c) Fixed income securities at June 30, 2021 are summarized below by contractual maturity. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties.

|  | AFS |  | HTM
($ in thousands) |  | Fair Value |  | Carrying Value |  | Fair Value
Due in one year or less |  | $ | 537,130 |  |  | 1,032 |  |  | 1,033 |
Due after one year through five years |  | 3,365,039 |  |  | 14,971 |  |  | 15,808 |
Due after five years through 10 years |  | 2,109,060 |  |  | 10,953 |  |  | 11,041 |
Due after 10 years |  | 615,171 |  |  | — |  |  | — |
Total fixed income securities |  | $ | 6,626,400 |  |  | 26,956 |  |  | 27,882 |

(d) The following table summarizes our other investment portfolio by strategy:

Other Investments |  | June 30, 2021 |  | December 31, 2020
($ in thousands) |  | Carrying Value |  | Remaining Commitment |  | Maximum Exposure to Loss 1 |  | Carrying Value |  | Remaining Commitment |  | Maximum Exposure to Loss 1
Alternative Investments |  |  |  |  |  |  |  |  |  |  |  |
Private equity |  | $ | 218,385 |  |  | 110,998 |  |  | 329,383 |  |  | 157,276 |  |  | 100,905 |  |  | 258,181 |
Private credit |  | 58,674 |  |  | 96,132 |  |  | 154,806 |  |  | 54,017 |  |  | 98,330 |  |  | 152,347 |
Real assets |  | 19,970 |  |  | 15,773 |  |  | 35,743 |  |  | 19,659 |  |  | 16,493 |  |  | 36,152 |
Total alternative investments |  | 297,029 |  |  | 222,903 |  |  | 519,932 |  |  | 230,952 |  |  | 215,728 |  |  | 446,680 |
Other securities |  | 33,450 |  |  | — |  |  | 33,450 |  |  | 35,370 |  |  | — |  |  | 35,370 |
Total other investments |  | $ | 330,479 |  |  | 222,903 |  |  | 553,382 |  |  | 266,322 |  |  | 215,728 |  |  | 482,050 |

1 The maximum exposure to loss includes both the carry value of these investments and the related remaining commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant.
We are contractually committed to make additional investments up to the remaining commitments stated above, but we do not have a material future obligation to fund losses or debts on behalf of these investments. We have not provided any non-contractual financial support at any time during 2021 or 2020.
The following table shows gross summarized financial information for our other investments portfolio, including the portion we do not own. The majority of these investments are carried under the equity method of accounting and report results to us on a one-quarter lag. The following table provides (i) the gross summarized financial statement information for these investments for the three and six-months ended March 31, and (ii) the portion of these results that are included in our Second Quarter and Six Months results:

Income Statement Information |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Net investment income |  | $ | 8.4 |  |  | (3.1) |  |  | $ | 490.0 |  |  | 9.6 |
Realized gains |  | 1,392.5 |  |  | 179.0 |  |  | 2,168.6 |  |  | 343.8 |
Net change in unrealized appreciation |  | 4,948.9 |  |  | (2,862.9) |  |  | 9,579.7 |  |  | (1,658.9) |
Net income |  | $ | 6,349.8 |  |  | (2,687.0) |  |  | $ | 12,238.3 |  |  | (1,305.5) |
Insurance Subsidiaries’ alternative investments income |  | $ | 29.9 |  |  | (16.0) |  |  | $ | 50.1 |  |  | (9.7) |

(e) Certain Insurance Subsidiaries, as members of the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"), have pledged certain AFS fixed income securities as collateral. Additionally, to comply with insurance laws, certain Insurance Subsidiaries have deposited certain securities with various state and regulatory agencies at June 30, 2021. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at June 30, 2021:

($ in millions) |  | FHLBI Collateral |  | FHLBNY Collateral |  |  |  | State and Regulatory Deposits |  | Total
U.S. government and government agencies |  | $ | — |  |  | — |  |  |  |  | 21.6 |  |  | 21.6 |
Obligations of states and political subdivisions |  | — |  |  | — |  |  |  |  | 5.0 |  |  | 5.0 |
RMBS |  | 78.5 |  |  | 48.9 |  |  |  |  | — |  |  | 127.4 |
CMBS |  | 6.7 |  |  | 15.6 |  |  |  |  | — |  |  | 22.3 |
Total pledged as collateral |  | $ | 85.2 |  |  | 64.5 |  |  |  |  | 26.6 |  |  | 176.3 |

(f) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government-backed investments, as of June 30, 2021, or December 31, 2020.
10

Table of Contents
(g) The components of pre-tax net investment income earned were as follows:

|  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Fixed income securities |  | $ | 52,608 |  |  | 51,079 |  |  | $ | 105,431 |  |  | 101,332 |
Commercial mortgage loans ("CMLs") |  | 695 |  |  | 156 |  |  | 1,209 |  |  | 218 |
Equity securities |  | 2,982 |  |  | 2,023 |  |  | 5,470 |  |  | 3,575 |
Short-term investments |  | 55 |  |  | 420 |  |  | 140 |  |  | 1,586 |
Other investments |  | 32,860 |  |  | (15,846) |  |  | 50,293 |  |  | (9,504) |
Investment expenses |  | (5,469) |  |  | (3,388) |  |  | (9,096) |  |  | (6,796) |
Net investment income earned |  | $ | 83,731 |  |  | 34,444 |  |  | $ | 153,447 |  |  | 90,411 |

The increase in net investment income earned in Second Quarter 2021 and Six Months 2021 compared to the prior year periods were driven by the alternative investments in our other investments portfolio. The results reflect the improvement in the equity markets in the three and six-month periods ending March 31, 2021, as our results on these holdings are recorded on a one-quarter lag.
(h) The following table summarizes net realized and unrealized gains and losses for the periods indicated:

|  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Gross gains on sales |  | $ | 2,079 |  |  | 6,478 |  |  | $ | 5,755 |  |  | 12,151 |
Gross losses on sales |  | (1,811) |  |  | (3,863) |  |  | (6,282) |  |  | (5,436) |
Net realized gains (losses) on disposals |  | 268 |  |  | 2,615 |  |  | (527) |  |  | 6,715 |
Net unrealized gains (losses) on equity securities |  | 7,661 |  |  | 5,701 |  |  | 18,941 |  |  | (11,436) |
Net credit loss benefit (expense) on fixed income securities, AFS |  | 2,272 |  |  | 4,923 |  |  | (2,725) |  |  | (10,864) |
Net credit loss (expense) benefit on fixed income securities, HTM |  | (53) |  |  | 1 |  |  | (60) |  |  | 1 |
Net credit loss benefit (expense) on CMLs |  | — |  |  | 22 |  |  | — |  |  | (218) |
Losses on securities for which we have the intent to sell |  | (91) |  |  | (613) |  |  | (453) |  |  | (16,215) |
Net realized and unrealized gains (losses) |  | $ | 10,057 |  |  | 12,649 |  |  | $ | 15,176 |  |  | (32,017) |

Unrealized gains (losses) recognized in income on equity securities, as reflected in the table above, include the following:

|  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Unrealized gains (losses) recognized in income on equity securities: |  |  |  |  |  |  |  |
On securities remaining in our portfolio at period end |  | $ | 7,458 |  |  | 5,701 |  |  | $ | 16,942 |  |  | (11,439) |
On securities sold during period |  | 203 |  |  | — |  |  | 1,999 |  |  | 3 |
Total unrealized gains (losses) recognized in income on equity securities |  | $ | 7,661 |  |  | 5,701 |  |  | $ | 18,941 |  |  | (11,436) |

The improvement in net realized and unrealized gains in Six Months 2021 as compared to Six Months 2020 was primarily driven by (i) unrealized gains on our equity securities compared to unrealized losses last year, which were driven by COVID-19-related market disruption, and (ii) lower intent-to-sell losses as we provided our investment managers significant trading flexibility last year given market conditions.
11

Table of Contents
NOTE 5. Fair Value Measurements
The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and estimated fair values of our financial liabilities as of June 30, 2021 and December 31, 2020:

|  | June 30, 2021 |  | December 31, 2020
($ in thousands) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Financial Liabilities |  |  |  |  |  |  |  |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | $ | 49,915 |  |  | 64,485 |  |  | 49,914 |  |  | 66,148 |
6.70% Senior Notes |  | 99,509 |  |  | 124,997 |  |  | 99,499 |  |  | 127,886 |
5.375% Senior Notes |  | 294,285 |  |  | 372,432 |  |  | 294,241 |  |  | 383,669 |
1.61% borrowings from FHLBNY |  | 25,000 |  |  | 25,026 |  |  | 25,000 |  |  | 25,182 |
1.56% borrowings from FHLBNY |  | 25,000 |  |  | 25,050 |  |  | 25,000 |  |  | 25,198 |
3.03% borrowings from FHLBI |  | 60,000 |  |  | 65,549 |  |  | 60,000 |  |  | 67,513 |
Subtotal long-term debt |  | 553,709 |  |  | 677,539 |  |  | 553,654 |  |  | 695,596 |
Unamortized debt issuance costs |  | (3,291) |  |  |  |  | (3,419) |  |  |
Finance lease obligations |  | 463 |  |  |  |  | 508 |  |  |
Total long-term debt |  | $ | 550,881 |  |  |  |  | 550,743 |  |  |

For a discussion of the fair value hierarchy and techniques used to value our financial assets and liabilities, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.
The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at June 30, 2021, and December 31, 2020:

June 30, 2021 |  |  |  | Fair Value Measurements Using
($ in thousands) |  | Assets Measured at Fair Value |  | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Description |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |
AFS fixed income securities: |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 136,194 |  |  | 59,569 |  |  | 76,625 |  |  | — |
Foreign government |  | 15,275 |  |  | — |  |  | 15,275 |  |  | — |
Obligations of states and political subdivisions |  | 1,199,901 |  |  | — |  |  | 1,191,919 |  |  | 7,982 |
Corporate securities |  | 2,466,887 |  |  | — |  |  | 2,376,482 |  |  | 90,405 |
CLO and other ABS |  | 1,282,223 |  |  | — |  |  | 1,211,486 |  |  | 70,737 |
RMBS |  | 854,497 |  |  | — |  |  | 854,497 |  |  | — |
CMBS |  | 671,423 |  |  | — |  |  | 671,423 |  |  | — |
Total AFS fixed income securities |  | 6,626,400 |  |  | 59,569 |  |  | 6,397,707 |  |  | 169,124 |
Equity securities: |  |  |  |  |  |  |  |
Common stock 1 |  | 346,232 |  |  | 260,971 |  |  | — |  |  | — |
Preferred stock |  | 2,110 |  |  | 2,110 |  |  | — |  |  | — |
Total equity securities |  | 348,342 |  |  | 263,081 |  |  | — |  |  | — |
Short-term investments |  | 351,230 |  |  | 351,133 |  |  | 97 |  |  | — |
Total assets measured at fair value |  | $ | 7,325,972 |  |  | 673,783 |  |  | 6,397,804 |  |  | 169,124 |

12

Table of Contents

December 31, 2020 |  |  |  | Fair Value Measurements Using
($ in thousands) |  | Assets Measured at Fair Value |  | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Description |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |
AFS fixed income securities: |  |  |  |  |  |  |  |
U.S. government and government agencies |  | $ | 116,140 |  |  | 40,960 |  |  | 75,180 |  |  | — |
Foreign government |  | 18,366 |  |  | — |  |  | 18,366 |  |  | — |
Obligations of states and political subdivisions |  | 1,247,137 |  |  | — |  |  | 1,244,243 |  |  | 2,894 |
Corporate securities |  | 2,328,052 |  |  | — |  |  | 2,257,352 |  |  | 70,700 |
CLO and other ABS |  | 1,026,551 |  |  | — |  |  | 970,176 |  |  | 56,375 |
RMBS |  | 1,051,788 |  |  | — |  |  | 1,051,788 |  |  | — |
CMBS |  | 667,894 |  |  | — |  |  | 667,894 |  |  | — |
Total AFS fixed income securities |  | 6,455,928 |  |  | 40,960 |  |  | 6,284,999 |  |  | 129,969 |
Equity securities: |  |  |  |  |  |  |  |
Common stock 1 |  | 308,632 |  |  | 261,846 |  |  | — |  |  | — |
Preferred stock |  | 1,735 |  |  | 1,735 |  |  | — |  |  | — |
Total equity securities |  | 310,367 |  |  | 263,581 |  |  | — |  |  | — |
Short-term investments |  | 409,852 |  |  | 405,400 |  |  | 4,452 |  |  | — |
Total assets measured at fair value |  | $ | 7,176,147 |  |  | 709,941 |  |  | 6,289,451 |  |  | 129,969 |

1 Investments amounting to $85.3 million at June 30, 2021, and $46.8 million at December 31, 2020, were measured at fair value using net asset value per share (or its practical expedient) and are not classified in the fair value hierarchy. These investments are not redeemable and the timing of liquidations of the underlying assets is unknown at each reporting period. The fair value amounts in this table enables reconciliation of the fair value hierarchy to total assets measured at fair value.
The following table provides a summary of Level 3 changes in Six Months 2021 and Six Months 2020:

June 30, 2021 |  |  |  |  |  |  |  |  |
($ in thousands) |  |  | Obligations of States and Political Subdivisions |  | Corporate Securities |  | CLO and Other ABS |  | Total
Fair value, December 31, 2020 |  |  | $ | 2,894 |  |  | 70,700 |  |  | 56,375 |  |  | 129,969 |
Total net (losses) gains for the period included in: |  |  |  |  |  |  |  |  |
OCI |  |  | (13) |  |  | 1,899 |  |  | 396 |  |  | 2,282 |
Net realized and unrealized (losses) gains |  |  | — |  |  | 11 |  |  | (82) |  |  | (71) |
Net investment income earned |  |  | — |  |  | 13 |  |  | 6 |  |  | 19 |
Purchases |  |  | — |  |  | 25,403 |  |  | 17,639 |  |  | 43,042 |
Sales |  |  | — |  |  | — |  |  | — |  |  | — |
Issuances |  |  | — |  |  | — |  |  | — |  |  | — |
Settlements |  |  | — |  |  | (167) |  |  | (1,429) |  |  | (1,596) |
Transfers into Level 3 |  |  | 5,101 |  |  | — |  |  | 3,226 |  |  | 8,327 |
Transfers out of Level 3 |  |  | — |  |  | (7,454) |  |  | (5,394) |  |  | (12,848) |
Fair value, June 30, 2021 |  |  | $ | 7,982 |  |  | 90,405 |  |  | 70,737 |  |  | 169,124 |
Change in unrealized (losses) gains for the period included in earnings for assets held at period end |  |  | — |  |  | 11 |  |  | (82) |  |  | (71) |
Change in unrealized gains (losses) for the period included in OCI for assets held at period end |  |  | (13) |  |  | 1,899 |  |  | 396 |  |  | 2,282 |

13

Table of Contents

June 30, 2020 |  |  |  |  |  |  |
($ in thousands) | Obligation of state and Political Subdivisions |  | Corporate Securities |  | CLO and Other ABS |  | Total
Fair value, December 31, 2019 | $ | — |  |  | 17,051 |  |  | 17,034 |  |  | 34,085 |
Total net (losses) gains for the period included in: |  |  |  |  |  |  |
OCI | (111) |  |  | (1,770) |  |  | (367) |  |  | (2,248) |
Net realized and unrealized (losses) gains | — |  |  | (384) |  |  | (349) |  |  | (733) |
Net investment income earned | — |  |  | — |  |  | 1 |  |  | 1 |
Purchases | — |  |  | 3,002 |  |  | 9,690 |  |  | 12,692 |
Sales | — |  |  | — |  |  | — |  |  | — |
Issuances | — |  |  | — |  |  | — |  |  | — |
Settlements | — |  |  | (138) |  |  | (1,032) |  |  | (1,170) |
Transfers into Level 3 | 2,890 |  |  | 4,592 |  |  | 20,107 |  |  | 27,589 |
Transfers out of Level 3 | — |  |  | — |  |  | (9,924) |  |  | (9,924) |
Fair value, June 30, 2020 | $ | 2,779 |  |  | 22,353 |  |  | 35,160 |  |  | 60,292 |
Change in unrealized gains (losses) for the period included in earnings for assets held at period end | — |  |  | (384) |  |  | (349) |  |  | (733) |
Change in unrealized gains (losses) for the period included in OCI for assets held at period end | (111) |  |  | (1,770) |  |  | (367) |  |  | (2,248) |

The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at June 30, 2021, and December 31, 2020:

June 30, 2021 |  |  |  | Fair Value Measurements Using
($ in thousands) |  | Assets/ Liabilities Disclosed at Fair Value |  | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Financial Assets |  |  |  |  |  |  |  |
HTM: |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | $ | 4,665 |  |  | — |  |  | 4,665 |  |  | — |
Corporate securities |  | 23,217 |  |  | — |  |  | 23,217 |  |  | — |
Total HTM fixed income securities |  | $ | 27,882 |  |  | — |  |  | 27,882 |  |  | — |
CMLs |  | $ | 73,559 |  |  | — |  |  | — |  |  | 73,559 |
Financial Liabilities |  |  |  |  |  |  |  |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | $ | 64,485 |  |  | — |  |  | 64,485 |  |  | — |
6.70% Senior Notes |  | 124,997 |  |  | — |  |  | 124,997 |  |  | — |
5.375% Senior Notes |  | 372,432 |  |  | — |  |  | 372,432 |  |  | — |
1.61% borrowings from FHLBNY |  | 25,026 |  |  | — |  |  | 25,026 |  |  | — |
1.56% borrowings from FHLBNY |  | 25,050 |  |  | — |  |  | 25,050 |  |  | — |
3.03% borrowings from FHLBI |  | 65,549 |  |  | — |  |  | 65,549 |  |  | — |
Total long-term debt |  | $ | 677,539 |  |  | — |  |  | 677,539 |  |  | — |

14

Table of Contents

December 31, 2020 |  |  |  | Fair Value Measurements Using
($ in thousands) |  | Assets/ Liabilities Disclosed at Fair Value |  | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Financial Assets |  |  |  |  |  |  |  |
HTM: |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | $ | 4,795 |  |  | — |  |  | 4,795 |  |  | — |
Corporate securities |  | 13,206 |  |  | — |  |  | 13,206 |  |  | — |
Total HTM fixed income securities |  | $ | 18,001 |  |  | — |  |  | 18,001 |  |  | — |
CMLs |  | $ | 47,289 |  |  | — |  |  | — |  |  | 47,289 |
Financial Liabilities |  |  |  |  |  |  |  |
Long-term debt: |  |  |  |  |  |  |  |
7.25% Senior Notes |  | $ | 66,148 |  |  | — |  |  | 66,148 |  |  | — |
6.70% Senior Notes |  | 127,886 |  |  | — |  |  | 127,886 |  |  | — |
5.375% Senior Notes |  | 383,669 |  |  | — |  |  | 383,669 |  |  | — |
1.61% borrowings from FHLBNY |  | 25,182 |  |  | — |  |  | 25,182 |  |  | — |
1.56% borrowings from FHLBNY |  | 25,198 |  |  | — |  |  | 25,198 |  |  | — |
3.03% borrowings from FHLBI |  | 67,513 |  |  | — |  |  | 67,513 |  |  | — |
Total long-term debt |  | $ | 695,596 |  |  | — |  |  | 695,596 |  |  | — |

NOTE 6. Allowance for Credit Losses on Premiums Receivable
The following table provides a roll forward of the allowance for credit losses on our premiums receivable balance for the periods indicated:

|  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Balance at beginning of period |  | $ | 21,000 |  |  | $ | 18,000 |  |  | $ | 21,000 |  |  | $ | 6,400 |
Cumulative effect adjustment 1 |  | — |  |  | — |  |  | — |  |  | 1,058 |
Balance at beginning of period, as adjusted |  | $ | 21,000 |  |  | $ | 18,000 |  |  | $ | 21,000 |  |  | $ | 7,458 |
Current period provision for expected credit losses |  | 733 |  |  | 4,597 |  |  | 1,541 |  |  | 15,792 |
Write-offs charged against the allowance for credit losses |  | (3,526) |  |  | (1,597) |  |  | (4,400) |  |  | (2,250) |
Recoveries |  | 93 |  |  | — |  |  | 159 |  |  | — |
Allowance for credit losses, end of period |  | $ | 18,300 |  |  | $ | 21,000 |  |  | $ | 18,300 |  |  | $ | 21,000 |

1 Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses.
In Six Months 2020, we recognized an additional allowance for credit losses of $13.5 million, net of write-offs and recoveries. We based this increase on an evaluation of the recoverability of our premiums receivable in light of (i) the billing accommodations we announced during the first quarter of 2020 and (ii) the impact of certain state regulations that provided for deferral of payments without cancellation for a period up to 90 days and increased earned but uncollected premiums. The billing accommodations included individualized payment flexibility and suspending the effect of policy cancellations, late payment notices, and late or reinstatement fees. The heightened credit risk experienced in 2020 led us to increase the allowance for credit losses to $21.0 million in Second Quarter 2020. During Second Quarter 2021, we realized a portion of the anticipated write-offs, which reduced our allowance. The reduction was partially offset by the additional provision established on current-year premiums, which resulted in the ending allowance of $18.3 million.
15

Table of Contents
NOTE 7. Reinsurance
We evaluate and monitor the financial condition of our reinsurers under voluntary reinsurance arrangements to minimize our exposure to significant losses from reinsurer insolvencies. The following tables provide (i) a disaggregation of our reinsurance recoverable balance by financial strength rating and (ii) an aging analysis of our past due reinsurance recoverable balances as of June 30, 2021, and December 31, 2020:

|  | June 30, 2021
($ in thousands) |  | Current |  | Past Due |  | Total Reinsurance Recoverables
Financial strength rating of rated reinsurers |  |  |  |  |  |
A++ |  | $ | 40,382 |  |  | $ | 14 |  |  | $ | 40,396 |
A+ |  | 357,328 |  |  | 2,554 |  |  | 359,882 |
A |  | 105,600 |  |  | 87 |  |  | 105,687 |
A- |  | 2,054 |  |  | — |  |  | 2,054 |
B++ |  | 135 |  |  | 244 |  |  | 379 |
B+ |  | — |  |  | — |  |  | — |
Total rated reinsurers |  | $ | 505,499 |  |  | $ | 2,899 |  |  | $ | 508,398 |
Non-rated reinsurers |  |  |  |  |  |
Federal and state pools |  | $ | 86,512 |  |  | $ | — |  |  | $ | 86,512 |
Other than federal and state pools |  | 3,474 |  |  | 274 |  |  | 3,748 |
Total non-rated reinsurers |  | $ | 89,986 |  |  | $ | 274 |  |  | $ | 90,260 |
Total reinsurance recoverable, gross |  | $ | 595,485 |  |  | $ | 3,173 |  |  | $ | 598,658 |
Less: allowance for credit losses 1 |  |  |  |  |  | (1,777) |
Total reinsurance recoverable, net |  |  |  |  |  | $ | 596,881 |

|  | December 31, 2020
($ in thousands) |  | Current |  | Past Due |  | Total Reinsurance Recoverables
Financial strength rating of rated reinsurers |  |  |  |  |  |
A++ |  | $ | 37,464 |  |  | $ | 102 |  |  | $ | 37,566 |
A+ |  | 354,846 |  |  | 2,452 |  |  | 357,298 |
A |  | 105,652 |  |  | 415 |  |  | 106,067 |
A- |  | 2,139 |  |  | — |  |  | 2,139 |
B++ |  | 56 |  |  | 324 |  |  | 380 |
B+ |  | — |  |  | — |  |  | — |
Total rated reinsurers |  | $ | 500,157 |  |  | $ | 3,293 |  |  | $ | 503,450 |
Non-rated reinsurers |  |  |  |  |  |
Federal and state pools |  | $ | 82,575 |  |  | $ | — |  |  | $ | 82,575 |
Other than federal and state pools |  | 2,676 |  |  | 568 |  |  | 3,244 |
Total non-rated reinsurers |  | $ | 85,251 |  |  | $ | 568 |  |  | $ | 85,819 |
Total reinsurance recoverable, gross |  | $ | 585,408 |  |  | $ | 3,861 |  |  | $ | 589,269 |
Less: allowance for credit losses 1 |  |  |  |  |  | (1,777) |
Total reinsurance recoverable, net |  |  |  |  |  | $ | 587,492 |

1 Represents our current expectation of credit losses on total current and past due reinsurance recoverables, and is not identifiable by reinsurer.
For a discussion of the methodology used to evaluate our estimate of expected credit losses, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.
16

Table of Contents
The following table provides a rollforward of the allowance for credit losses on our reinsurance recoverable balance for the periods indicated:

($ in thousands) |  | Quarter ended June 30, |  | Six Months ended June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Balance at beginning of period |  | $ | 1,840 |  |  | 1,502 |  |  | $ | 1,777 |  |  | 4,400 |
Cumulative effect adjustment 1 |  | — |  |  | — |  |  | — |  |  | (2,903) |
Balance at beginning of period, as adjusted |  | $ | 1,840 |  |  | 1,502 |  |  | $ | 1,777 |  |  | 1,497 |
Current period provision for expected credit losses |  | (63) |  |  | 894 |  |  | — |  |  | 899 |
Write-offs charged against the allowance for credit losses |  | — |  |  | — |  |  | — |  |  | — |
Recoveries |  | — |  |  | — |  |  | — |  |  | — |
Allowance for credit losses, end of period |  | $ | 1,777 |  |  | 2,396 |  |  | $ | 1,777 |  |  | 2,396 |

1 Represents the impact of our adoption of ASU 2016-13, Financial Instruments - Credit Losses.
The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information about reinsurance, refer to Note 9. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report.

|  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Premiums written: |  |  |  |  |  |  |  |
Direct |  | $ | 954,770 |  |  | 834,643 |  |  | $ | 1,863,544 |  |  | 1,581,074 |
Assumed |  | 4,872 |  |  | 6,410 |  |  | 10,405 |  |  | 12,453 |
Ceded |  | (126,437) |  |  | (116,301) |  |  | (242,566) |  |  | (221,448) |
Net |  | $ | 833,205 |  |  | 724,752 |  |  | $ | 1,631,383 |  |  | 1,372,079 |
Premiums earned: |  |  |  |  |  |  |  |
Direct |  | $ | 853,456 |  |  | 733,647 |  |  | $ | 1,690,825 |  |  | 1,488,538 |
Assumed |  | 4,411 |  |  | 6,055 |  |  | 10,087 |  |  | 12,228 |
Ceded |  | (117,349) |  |  | (109,031) |  |  | (235,434) |  |  | (218,392) |
Net |  | $ | 740,518 |  |  | 630,671 |  |  | $ | 1,465,478 |  |  | 1,282,374 |
Loss and loss expenses incurred: |  |  |  |  |  |  |  |
Direct |  | $ | 460,073 |  |  | 451,013 |  |  | $ | 901,580 |  |  | 876,808 |
Assumed |  | 3,217 |  |  | 4,300 |  |  | 6,664 |  |  | 9,198 |
Ceded |  | (41,667) |  |  | (51,364) |  |  | (73,220) |  |  | (81,733) |
Net |  | $ | 421,623 |  |  | 403,949 |  |  | $ | 835,024 |  |  | 804,273 |

Direct premiums written ("DPW") increased $120.1 million, or 14%, in Second Quarter 2021 compared to Second Quarter 2020. The increase included three percentage points from the COVID-19-related $19.7 million premium credit to our personal and commercial automobile policyholders in Second Quarter 2020. This premium credit to customers with in-force polices was equivalent to 15% of their April and May 2020 premiums.
Additionally, DPW increased $282.5 million, or 18%, in Six Months 2021 compared to Six Months 2020 resulted from (i) overall renewal pure price increases, (ii) new business growth, and (iii) strong retention. This increase also included seven percentage points from the $75.0 million return audit and endorsement premium accrual that was recorded in the first quarter of 2020 and the premium credit mentioned above. This accrual reflected lower exposure levels, which determine the premium we charge, attributable to the economic impacts of the COVID-19 pandemic and the anticipated decline in sales and payroll exposures on the general liability and workers compensation lines of business.
Ceded premiums written, ceded premiums earned, and ceded loss and loss expenses incurred related to our participation in the NFIP, to which we cede 100% of our flood premiums, losses, and loss expenses, were as follows:

Ceded to NFIP |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Ceded premiums written |  | $ | (75,081) |  |  | (74,187) |  |  | $ | (140,823) |  |  | (136,274) |
Ceded premiums earned |  | (66,833) |  |  | (67,369) |  |  | (134,352) |  |  | (134,230) |
Ceded loss and loss expenses incurred |  | (18,941) |  |  | (12,991) |  |  | (21,148) |  |  | (18,087) |

17

Table of Contents
NOTE 8. Reserve for Loss and Loss Expense
The table below provides a roll forward of reserve for loss and loss expense balances:

|  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020
Gross reserve for loss and loss expense, at beginning of year |  | $ | 4,260,355 |  |  | 4,067,163 |
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year 1 |  | 554,269 |  |  | 547,066 |
Net reserve for loss and loss expense, at beginning of year |  | 3,706,086 |  |  | 3,520,097 |
Incurred loss and loss expense for claims occurring in the: |  |  |  |
Current year |  | 886,801 |  |  | 825,201 |
Prior years |  | (51,777) |  |  | (20,928) |
Total incurred loss and loss expense |  | 835,024 |  |  | 804,273 |
Paid loss and loss expense for claims occurring in the: |  |  |  |
Current year |  | 227,505 |  |  | 221,422 |
Prior years |  | 455,919 |  |  | 479,736 |
Total paid loss and loss expense |  | 683,424 |  |  | 701,158 |
Net reserve for loss and loss expense, at end of period |  | 3,857,686 |  |  | 3,623,212 |
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period |  | 579,567 |  |  | 553,694 |
Gross reserve for loss and loss expense at end of period |  | $ | 4,437,253 |  |  | 4,176,906 |

1 Six Months 2020 includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses.
Prior year reserve development in Six Months 2021 was favorable by $51.8 million, which included $52.0 million of casualty reserve development. The favorable casualty reserve development included $25.0 million in our general liability line of business, $20.0 million in our workers compensation line of business, and $7.0 million in our Excess and Surplus ("E&S") casualty lines of business.
Prior year reserve development in Six Months 2020 was favorable by $20.9 million, which included $25.0 million of casualty reserve development, partially offset by $4.1 million of unfavorable property reserve development. The favorable casualty reserve development included $25 million in our workers compensation line of business and $10 million in our general liability line of business, partially offset by $10.0 million of unfavorable reserve development in our commercial automobile line of business.
NOTE 9. Segment Information
We evaluate the results of our four reportable segments as follows:
•Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and combined ratios.
•Our Investments segment is primarily evaluated on after-tax net investment income and its ROE contribution. After-tax net realized and unrealized gains and losses, which are not included in non-GAAP operating income, are also included in our Investment segment results.
In computing each segment's results, we do not make adjustments for interest expense or corporate expenses, nor do we allocate assets.
18

Table of Contents
The following summaries present revenues (net investment income and net realized and unrealized gains and losses on investments for 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) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Standard Commercial Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Commercial property |  | $ | 106,113 |  |  | 95,413 |  |  | $ | 208,923 |  |  | 189,282 |
Workers compensation |  | 74,337 |  |  | 61,906 |  |  | 152,527 |  |  | 128,612 |
General liability |  | 197,293 |  |  | 163,273 |  |  | 390,813 |  |  | 327,853 |
Commercial automobile |  | 178,028 |  |  | 138,535 |  |  | 349,909 |  |  | 288,225 |
Businessowners' policies |  | 29,311 |  |  | 27,516 |  |  | 57,938 |  |  | 54,552 |
Bonds |  | 8,993 |  |  | 9,210 |  |  | 17,586 |  |  | 18,849 |
Other |  | 5,679 |  |  | 5,151 |  |  | 11,199 |  |  | 10,211 |
Miscellaneous income |  | 5,795 |  |  | 4,195 |  |  | 9,502 |  |  | 5,586 |
Total Standard Commercial Lines revenue |  | 605,549 |  |  | 505,199 |  |  | 1,198,397 |  |  | 1,023,170 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Personal automobile |  | 41,009 |  |  | 38,189 |  |  | 82,402 |  |  | 80,676 |
Homeowners |  | 30,570 |  |  | 31,652 |  |  | 61,168 |  |  | 63,142 |
Other |  | 1,714 |  |  | 1,792 |  |  | 3,544 |  |  | 3,943 |
Miscellaneous income |  | 417 |  |  | 488 |  |  | 822 |  |  | 922 |
Total Standard Personal Lines revenue |  | 73,710 |  |  | 72,121 |  |  | 147,936 |  |  | 148,683 |
E&S Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Casualty lines |  | 47,642 |  |  | 42,722 |  |  | 91,475 |  |  | 86,794 |
Property lines |  | 19,829 |  |  | 15,312 |  |  | 37,994 |  |  | 30,235 |
Total E&S Lines revenue |  | 67,471 |  |  | 58,034 |  |  | 129,469 |  |  | 117,029 |
Investments: |  |  |  |  |  |  |  |
Net investment income |  | 83,731 |  |  | 34,444 |  |  | 153,447 |  |  | 90,411 |
Net realized and unrealized investment gains (losses) |  | 10,057 |  |  | 12,649 |  |  | 15,176 |  |  | (32,017) |
Total Investments revenue |  | 93,788 |  |  | 47,093 |  |  | 168,623 |  |  | 58,394 |
Total revenues |  | $ | 840,518 |  |  | 682,447 |  |  | $ | 1,644,425 |  |  | 1,347,276 |

Income Before and After Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Standard Commercial Lines: |  |  |  |  |  |  |  |
Underwriting gain, before federal income tax |  | $ | 67,938 |  |  | 16,730 |  |  | $ | 137,437 |  |  | 33,856 |
Underwriting gain, after federal income tax |  | 53,671 |  |  | 13,217 |  |  | 108,575 |  |  | 26,747 |
Combined ratio |  | 88.7 | % |  | 96.7 |  |  | 88.4 |  |  | 96.7 |
ROE contribution |  | 8.2 |  |  | 2.4 |  |  | 8.3 |  |  | 2.4 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Underwriting gain (loss), before federal income tax |  | $ | 5,644 |  |  | (6,325) |  |  | $ | 13,339 |  |  | (5,938) |
Underwriting gain (loss), after federal income tax |  | 4,459 |  |  | (4,997) |  |  | 10,538 |  |  | (4,691) |
Combined ratio |  | 92.3 | % |  | 108.8 |  |  | 90.9 |  |  | 104.0 |
ROE contribution |  | 0.7 |  |  | (0.9) |  |  | 0.8 |  |  | (0.4) |
E&S Lines: |  |  |  |  |  |  |  |
Underwriting gain (loss), before federal income tax |  | $ | 2,306 |  |  | (532) |  |  | $ | 2,822 |  |  | 3,312 |
Underwriting gain (loss), after federal income tax |  | 1,822 |  |  | (420) |  |  | 2,229 |  |  | 2,616 |
Combined ratio |  | 96.6 | % |  | 100.9 |  |  | 97.8 |  |  | 97.2 |
ROE contribution |  | 0.3 |  |  | (0.1) |  |  | 0.2 |  |  | 0.2 |
Investments: |  |  |  |  |  |  |  |
Net investment income |  | $ | 83,731 |  |  | 34,444 |  |  | $ | 153,447 |  |  | 90,411 |
Net realized and unrealized investment gains (losses) |  | 10,057 |  |  | 12,649 |  |  | 15,176 |  |  | (32,017) |
Total investment segment income, before federal income tax |  | 93,788 |  |  | 47,093 |  |  | 168,623 |  |  | 58,394 |
Tax on investment segment income |  | 18,402 |  |  | 8,558 |  |  | 32,850 |  |  | 9,662 |
Total investment segment income, after federal income tax |  | $ | 75,386 |  |  | 38,535 |  |  | $ | 135,773 |  |  | 48,732 |
ROE contribution of after-tax net investment income |  | 10.3 |  |  | 5.2 |  |  | 9.5 |  |  | 6.6 |

19

Table of Contents

Reconciliation of Segment Results to Income Before Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Underwriting gain |  |  |  |  |  |  |  |
Standard Commercial Lines |  | $ | 67,938 |  |  | 16,730 |  |  | $ | 137,437 |  |  | 33,856 |
Standard Personal Lines |  | 5,644 |  |  | (6,325) |  |  | 13,339 |  |  | (5,938) |
E&S Lines |  | 2,306 |  |  | (532) |  |  | 2,822 |  |  | 3,312 |
Investment income |  | 93,788 |  |  | 47,093 |  |  | 168,623 |  |  | 58,394 |
Total all segments |  | 169,676 |  |  | 56,966 |  |  | 322,221 |  |  | 89,624 |
Interest expense |  | (7,366) |  |  | (7,928) |  |  | (14,725) |  |  | (15,529) |
Corporate expenses |  | (9,112) |  |  | (6,345) |  |  | (18,666) |  |  | (15,405) |
Income, before federal income tax |  | $ | 153,198 |  |  | 42,693 |  |  | $ | 288,830 |  |  | 58,690 |
Preferred stock dividends |  | (2,300) |  |  | — |  |  | (4,753) |  |  | — |
Income available to common stockholders, before federal income tax |  | $ | 150,898 |  |  | 42,693 |  |  | $ | 284,077 |  |  | 58,690 |

NOTE 10. Retirement Plans
The primary pension plan for our employees is the Retirement Income Plan for Selective Insurance Company of America (the “Pension Plan”). Selective Insurance Company of America ("SICA") also sponsors the Supplemental Excess Retirement Plan (the “Excess Plan”) and a life insurance benefit plan. All plans are closed to new entrants, and benefits ceased accruing under the Pension Plan and the Excess Plan after March 31, 2016. For more information about SICA's retirement plans, see Note 15. “Retirement Plans” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report.
The following tables provide information about the Pension Plan:

|  | Pension Plan |  | Pension Plan
|  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Net Periodic Pension Cost (Benefit): |  |  |  |  |  |  |  |
Interest cost |  | $ | 2,149 |  |  | 2,828 |  |  | $ | 4,297 |  |  | 5,656 |
Expected return on plan assets |  | (5,744) |  |  | (5,476) |  |  | (11,488) |  |  | (10,953) |
Amortization of unrecognized net actuarial loss |  | 625 |  |  | 704 |  |  | 1,250 |  |  | 1,408 |
Total net periodic pension cost (benefit)1 |  | $ | (2,970) |  |  | (1,944) |  |  | $ | (5,941) |  |  | (3,889) |

1 The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income.

|  | Pension Plan
|  | Six Months ended June 30,
|  | 2021 |  | 2020
Weighted-Average Expense Assumptions: |  |  |  |
Discount rate |  | 2.68 | % |  | 3.33 | %
Effective interest rate for calculation of interest cost |  | 2.06 |  |  | 2.95 |
Expected return on plan assets |  | 5.40 |  |  | 5.80 |

20

Table of Contents
NOTE 11. Comprehensive Income
The following are the components of comprehensive income, both gross and net of tax, for Second Quarter and Six Months 2021 and 2020:

Second Quarter 2021 |  |  |  |  |  |
($ in thousands) |  | Gross |  | Tax |  | Net
Net income |  | $ | 153,198 |  |  | 31,315 |  |  | 121,883 |
Components of OCI: |  |  |  |  |  |
Unrealized gains on investment securities: |  |  |  |  |  |
Unrealized holding gains during the period |  | 35,553 |  |  | 7,467 |  |  | 28,086 |
Unrealized gains on securities with credit loss recognized in earnings |  | 9,985 |  |  | 2,097 |  |  | 7,888 |
Amounts reclassified into net income: |  |  |  |  |  |
HTM securities |  | (3) |  |  | (1) |  |  | (2) |
Net realized losses on disposals and losses on intent-to-sell AFS securities |  | 58 |  |  | 12 |  |  | 46 |
Credit loss benefit |  | (2,272) |  |  | (477) |  |  | (1,795) |
Total unrealized gains on investment securities |  | 43,321 |  |  | 9,098 |  |  | 34,223 |
Defined benefit pension and post-retirement plans: |  |  |  |  |  |
Amounts reclassified into net income: |  |  |  |  |  |
Net actuarial loss |  | 693 |  |  | 145 |  |  | 548 |
Total defined benefit pension and post-retirement plans |  | 693 |  |  | 145 |  |  | 548 |
Other comprehensive income |  | 44,014 |  |  | 9,243 |  |  | 34,771 |
Comprehensive income |  | $ | 197,212 |  |  | 40,558 |  |  | 156,654 |
Second Quarter 2020 |  |  |  |  |  |
($ in thousands) |  | Gross |  | Tax |  | Net
Net income |  | $ | 42,693 |  |  | 8,510 |  |  | 34,183 |
Components of OCI: |  |  |  |  |  |
Unrealized gains on investment securities: |  |  |  |  |  |
Unrealized holding gains during the period |  | 188,768 |  |  | 39,641 |  |  | 149,127 |
Unrealized gains on securities with credit loss recognized in earnings |  | 37,479 |  |  | 7,871 |  |  | 29,608 |
Amounts reclassified into net income: |  |  |  |  |  |
HTM securities |  | (31) |  |  | (6) |  |  | (25) |
Net realized gains on disposals and losses on intent-to-sell AFS securities |  | (1,686) |  |  | (354) |  |  | (1,332) |
Credit loss benefit |  | (4,924) |  |  | (1,034) |  |  | (3,890) |
Total unrealized gains on investment securities |  | 219,606 |  |  | 46,118 |  |  | 173,488 |
Defined benefit pension and post-retirement plans: |  |  |  |  |  |
Amounts reclassified into net income: |  |  |  |  |  |
Net actuarial loss |  | 753 |  |  | 158 |  |  | 595 |
Total defined benefit pension and post-retirement plans |  | 753 |  |  | 158 |  |  | 595 |
Other comprehensive income |  | 220,359 |  |  | 46,276 |  |  | 174,083 |
Comprehensive income |  | $ | 263,052 |  |  | 54,786 |  |  | 208,266 |

21

Table of Contents

Six Months 2021 |  |  |  |  |  |
($ in thousands) |  | Gross |  | Tax |  | Net
Net income |  | $ | 288,830 |  |  | 57,677 |  |  | 231,153 |
Components of OCI: |  |  |  |  |  |
Unrealized losses on investment securities: |  |  |  |  |  |
Unrealized holding losses during the period |  | (67,755) |  |  | (14,228) |  |  | (53,527) |
Unrealized losses on securities with credit loss recognized in earnings |  | (1,335) |  |  | (280) |  |  | (1,055) |
Amounts reclassified into net income: |  |  |  |  |  |
HTM securities |  | (5) |  |  | (1) |  |  | (4) |
Net realized losses on disposals and losses on intent-to-sell AFS securities |  | 662 |  |  | 139 |  |  | 523 |
Credit loss expense |  | 2,725 |  |  | 572 |  |  | 2,153 |
Total unrealized losses on investment securities |  | (65,708) |  |  | (13,798) |  |  | (51,910) |
Defined benefit pension and post-retirement plans: |  |  |  |  |  |
Amounts reclassified into net income: |  |  |  |  |  |
Net actuarial loss |  | 1,386 |  |  | 291 |  |  | 1,095 |
Total defined benefit pension and post-retirement plans |  | 1,386 |  |  | 291 |  |  | 1,095 |
Other comprehensive loss |  | (64,322) |  |  | (13,507) |  |  | (50,815) |
Comprehensive income |  | $ | 224,508 |  |  | 44,170 |  |  | 180,338 |
Six Months 2020 |  |  |  |  |  |
($ in thousands) |  | Gross |  | Tax |  | Net
Net income |  | $ | 58,690 |  |  | 9,271 |  |  | 49,419 |
Components of OCI: |  |  |  |  |  |
Unrealized gains on investment securities: |  |  |  |  |  |
Unrealized holding gains during the period |  | 94,787 |  |  | 19,905 |  |  | 74,882 |
Unrealized losses on securities with credit loss recognized in earnings |  | (27,911) |  |  | (5,861) |  |  | (22,050) |
Amounts reclassified into net income: |  |  |  |  |  |
HTM securities |  | (6) |  |  | (1) |  |  | (5) |
Net realized losses on disposals and losses on intent-to-sell AFS securities |  | 9,641 |  |  | 2,025 |  |  | 7,616 |
Credit loss expense |  | 10,863 |  |  | 2,281 |  |  | 8,582 |
Total unrealized gains on investment securities |  | 87,374 |  |  | 18,349 |  |  | 69,025 |
Defined benefit pension and post-retirement plans: |  |  |  |  |  |
Amounts reclassified into net income: |  |  |  |  |  |
Net actuarial loss |  | 1,507 |  |  | 316 |  |  | 1,191 |
Total defined benefit pension and post-retirement plans |  | 1,507 |  |  | 316 |  |  | 1,191 |
Other comprehensive income |  | 88,881 |  |  | 18,665 |  |  | 70,216 |
Comprehensive income |  | $ | 147,571 |  |  | 27,936 |  |  | 119,635 |

The following are the balances and changes in each component of AOCI (net of taxes) as of June 30, 2021:

June 30, 2021 |  |  |  | Defined Benefit Pension and Post-Retirement Plans |  |
|  | Net Unrealized (Losses) Gains on Investment Securities |  |  | Total AOCI
($ in thousands) |  | Credit Loss Related 1 |  | HTM Related |  | All Other |  | Investments Subtotal |  |
Balance, December 31, 2020 |  | $ | (2,546) |  |  | 6 |  |  | 307,790 |  |  | 305,250 |  |  | (85,064) |  |  | 220,186 |
OCI before reclassifications |  | (1,055) |  |  | — |  |  | (53,527) |  |  | (54,582) |  |  | — |  |  | (54,582) |
Amounts reclassified from AOCI |  | 2,153 |  |  | (4) |  |  | 523 |  |  | 2,672 |  |  | 1,095 |  |  | 3,767 |
Net current period OCI |  | 1,098 |  |  | (4) |  |  | (53,004) |  |  | (51,910) |  |  | 1,095 |  |  | (50,815) |
Balance, June 30, 2021 |  | $ | (1,448) |  |  | 2 |  |  | 254,786 |  |  | 253,340 |  |  | (83,969) |  |  | 169,371 |

1 Represents change in unrealized loss on securities with credit loss recognized in earnings.
22

Table of Contents
The reclassifications out of AOCI were as follows:

|  | Quarter ended June 30, |  | Six Months ended June 30, | Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
HTM related |  |  |  |  |  |  |  |  |
Unrealized losses on HTM disposals |  | $ | — |  |  | — |  |  | $ | — |  |  | 1 |  | Net realized and unrealized investment gains (losses)
Amortization of net unrealized gains on HTM securities |  | (3) |  |  | (31) |  |  | (5) |  |  | (7) |  | Net investment income earned
|  | (3) |  |  | (31) |  |  | (5) |  |  | (6) |  | Income before federal income tax
|  | 1 |  |  | 6 |  |  | 1 |  |  | 1 |  | Total federal income tax expense
|  | (2) |  |  | (25) |  |  | (4) |  |  | (5) |  | Net income
Net realized losses (gains) on disposals and intent-to-sell AFS securities |  |  |  |  |  |  |  |  |
Net realized losses (gains) on disposals and intent-to-sell AFS securities |  | 58 |  |  | (1,686) |  |  | 662 |  |  | 9,641 |  | Net realized and unrealized investment gains (losses)
|  | 58 |  |  | (1,686) |  |  | 662 |  |  | 9,641 |  | Income before federal income tax
|  | (12) |  |  | 354 |  |  | (139) |  |  | (2,025) |  | Total federal income tax expense
|  | 46 |  |  | (1,332) |  |  | 523 |  |  | 7,616 |  | Net income
Credit loss related |  |  |  |  |  |  |  |  |
Credit loss (benefit) expense |  | (2,272) |  |  | (4,924) |  |  | 2,725 |  |  | 10,863 |  | Net realized and unrealized investment gains (losses)
|  | (2,272) |  |  | (4,924) |  |  | 2,725 |  |  | 10,863 |  | Income before federal income tax
|  | 477 |  |  | 1,034 |  |  | (572) |  |  | (2,281) |  | Total federal income tax expense
|  | (1,795) |  |  | (3,890) |  |  | 2,153 |  |  | 8,582 |  | Net income
Defined benefit pension and post-retirement life plans |  |  |  |  |  |  |  |  |
Net actuarial loss |  | 160 |  |  | 162 |  |  | 319 |  |  | 324 |  | Loss and loss expense incurred
|  | 533 |  |  | 591 |  |  | 1,067 |  |  | 1,183 |  | Other insurance expenses
Total defined benefit pension and post-retirement life |  | 693 |  |  | 753 |  |  | 1,386 |  |  | 1,507 |  | Income before federal income tax
|  | (145) |  |  | (158) |  |  | (291) |  |  | (316) |  | Total federal income tax expense
|  | 548 |  |  | 595 |  |  | 1,095 |  |  | 1,191 |  | Net income
Total reclassifications for the period |  | $ | (1,203) |  |  | (4,652) |  |  | $ | 3,767 |  |  | 17,384 |  | Net income

NOTE 12. Equity
On December 2, 2020, we announced that our Board of Directors authorized a $100 million share repurchase program, which has no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock, and the repurchase program may be suspended or discounted at any time at our discretion. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion based on market conditions and other considerations. As of June 30, 2021, 52,781 shares were repurchased under the share repurchase program at a total cost of $3.4 million. These repurchases were all completed in the first quarter of 2021, and we did not repurchase any shares under our share repurchase program in Second Quarter 2021. We have $96.6 million of remaining capacity under our share repurchase program.
NOTE 13. Litigation
As of June 30, 2021, we do not believe we are involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.
In the ordinary course of conducting business, we are parties in various legal actions. Most are claims litigation involving our Insurance Subsidiaries as (i) liability insurers defending or providing indemnity for third-party claims brought against our customers, (ii) insurers defending first-party coverage claims brought against them, or (iii) liability insurers seeking declaratory judgment on our insurance coverage obligations. We account for such activity through the establishment of unpaid loss and loss expense reserves. In ordinary course claims litigation, we expect that any potential ultimate liability, after consideration of provisions made for potential losses and costs of defense, will not be material to our consolidated financial condition, results of operations, or cash flows.
All of our commercial property and businessowners' policies require direct physical loss of or damage to property by a covered cause of loss. It also is our practice to include in, or attach to, all standard lines commercial property and businessowners' policies an exclusion that states that all loss or property damage caused by or resulting from any virus, bacterium, or other microorganism that induces or is capable of inducing physical distress, illness, or disease is not a covered cause of loss ("Virus Exclusion"). Whether COVID-19-related contamination, the existence of the COVID-19 pandemic, and the resulting
23

Table of Contents
COVID-19-related government shutdown orders cause physical loss of or damage to property is the subject of much public debate and first-party coverage litigation against some insurers, including us. The Virus Exclusion also is the subject of first-party coverage litigation against some insurers, including us. We cannot predict the outcome of litigation over these two coverage issues, including interpretation of provisions similar or identical to those in our insurance policies.
From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some of which assert claims for substantial amounts. Plaintiffs may style these actions as putative class actions and seek judicial certification of a state or national class for allegations involving our business practices, such as improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies or improper reimbursement for automobile parts. Similarly, our Insurance Subsidiaries can be named in individual actions seeking extra-contractual damages, punitive damages, or penalties, often alleging bad faith in the handling of insurance claims. We believe that we have valid defenses to these allegations and we account for such activity through the establishment of unpaid loss and loss expense reserves. In these other legal actions, we expect that any potential ultimate liability, after consideration of provisions made for estimated losses, will not be material to our consolidated financial condition. Nonetheless, litigation outcomes are inherently unpredictable and, because the amounts sought in certain of these actions are large or indeterminate, it is possible that any adverse outcomes could have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods.
NOTE 14. Subsequent Events
On July 21, 2021, we repaid our $25 million 1.61% borrowing from the FHLBNY.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Forward-Looking Statements
The terms "Company," "we," "us," and "our" refer to Selective Insurance Group, Inc. (the "Parent"), and its subsidiaries, except as expressly indicated or the context otherwise requires. In this Quarterly Report on Form 10-Q, we discuss and make statements about our intentions, beliefs, current expectations, and projections for our future operations and performance. Such statements are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements often are identified by words such as “anticipates,” “believes,” “expects,” “will,” “should,” and “intends” and their negatives. We caution prospective investors that forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in our future performance. Factors that could cause actual results to differ materially from those indicated in forward-looking statements include, without limitation, those discussed in Item 1A. “Risk Factors.” in Part II. “Other Information” of this Form 10-Q. Our stated risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors emerge from time to time. We can neither predict such new risk factors nor can we assess the impact, if any, such new risk factors may have on our businesses or the extent to which any factor or combination of factors may cause actual results to differ materially from those expressed or implied in any forward-looking statement. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this report might not occur. We make forward-looking statements based on currently available information and assume no obligation, other than as may be required under the federal securities laws, to publicly update or revise any forward-looking statements for any reason.
Introduction
We classify our business into four reportable segments:
•Standard Commercial Lines;
•Standard Personal Lines;
•E&S Lines; and
•Investments.
For more details about these segments, refer to Note 9. "Segment Information" in Item 1. "Financial Statements." of this Form 10-Q and Note 12. "Segment Information" in Item 8. "Financial Statements and Supplementary Data." of our Annual Report on Form 10-K for the year ended December 31, 2020 ("2020 Annual Report").
We write our Standard Commercial and Standard Personal Lines products and services through nine of our insurance subsidiaries, some of which participate in the federal government's National Flood Insurance Program's ("NFIP") Write Your Own Program ("WYO"). We write our E&S products through another subsidiary, Mesa Underwriters Specialty Insurance Company, which provides us with a nationally-authorized non-admitted platform for customers who generally cannot obtain coverage in the standard marketplace. Collectively, we refer to our ten insurance subsidiaries as the "Insurance Subsidiaries."
24

Table of Contents
The following is Management’s Discussion and Analysis (“MD&A”) of the consolidated results of operations and financial condition, as well as known trends and uncertainties, that may have a material impact in future periods. Investors should read the MD&A in conjunction with Item 1. "Financial Statements." of this Form 10-Q and the consolidated financial statements in our 2020 Annual Report filed with the U.S. Securities and Exchange Commission.
In the MD&A, we will discuss and analyze the following:
•Critical Accounting Policies and Estimates;
•Financial Highlights of Results for the second quarters ended June 30, 2021 (“Second Quarter 2021”) and June 30, 2020 (“Second Quarter 2020”) and the six-month periods ended June 30, 2021 (“Six Months 2021”) and June 30, 2020 (“Six Months 2020”);
•Results of Operations and Related Information by Segment;
•Federal Income Taxes;
•Financial Condition, Liquidity, and Capital Resources;
•Ratings;
•Off-Balance Sheet Arrangements; and
•Contractual Obligations, Contingent Liabilities, and Commitments.
Critical Accounting Policies and Estimates
Our unaudited interim consolidated financial statements include amounts for which we have made informed estimates and judgments for transactions not yet completed. Such estimates and judgments affect the reported amounts in the consolidated financial statements. As outlined in our 2020 Annual Report, those estimates and judgments most critical to the preparation of the consolidated financial statements involved the following: (i) reserves for loss and loss expense; (ii) investment valuation and the allowance for credit losses on available-for-sale ("AFS") fixed income securities; (iii) reinsurance; (iv) allowance for credit losses on premiums receivable, and (v) the accrual for auditable premium. These estimates and judgments require the use of assumptions about matters that are highly uncertain, and therefore are subject to change as facts and circumstances develop. If different estimates and judgments had been applied, materially different amounts might have been reported in the financial statements.
We have made no material changes in the critical accounting policies disclosed on pages 37 through 46 of our 2020 Annual Report. There were no material changes to the following estimates in Second Quarter 2021: (i) reinsurance; and (ii) the allowance for credit losses on premiums receivable.
The following estimates materially changed in Second Quarter 2021:
•Investment valuation and the allowance for credit losses on AFS fixed income securities - See Note 4. "Investments" and Note 5. "Fair Value Measurements" in Item 1. "Financial Statements." of this Form 10-Q;
•Reserve for loss and loss expense - See Note 8. "Reserve for Loss and Loss Expense" in Item 1. "Financial Statements." of this Form 10-Q; and
•Accrual for auditable premium - In the first quarter of 2020, we recorded a $75 million return audit and mid-term endorsement premium accrual in response to the COVID-19 pandemic and the anticipated decline in payroll and sales exposures on the workers compensation and general liability lines of business. The remaining accrual was $24.8 million as of December 31, 2020. During Six Months 2021, we applied premium adjustments for audits, fully exhausting this accrual as of June 30, 2021. Since April 2020, through active engagement among our underwriters, insureds, and distribution partners, we have established exposure levels to reflect our best estimate of how the current environment may impact our policies. As a result, we do not have material accruals for additional or return premium as of June 30, 2021.
25

Table of Contents
Financial Highlights of Results for Second Quarter and Six Months 2021 and Second Quarter and Six Months 2020 1

($ and shares in thousands, except per share amounts) |  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
| 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |  |
Financial Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 840,518 |  |  | 682,447 |  |  | 23 |  | % |  | $ | 1,644,425 |  |  | 1,347,276 |  |  | 22 |  | %
After-tax net investment income |  | 67,441 |  |  | 28,542 |  |  | 136 |  |  |  | 123,784 |  |  | 74,025 |  |  | 67 |  |
After-tax underwriting income |  | 59,952 |  |  | 7,800 |  |  | 669 |  |  |  | 121,342 |  |  | 24,672 |  |  | 392 |  |
Net income before federal income tax |  | 153,198 |  |  | 42,693 |  |  | 259 |  |  |  | 288,830 |  |  | 58,690 |  |  | 392 |  |
Net income |  | 121,883 |  |  | 34,183 |  |  | 257 |  |  |  | 231,153 |  |  | 49,419 |  |  | 368 |  |
Net income available to common stockholders |  | 119,583 |  |  | 34,183 |  |  | 250 |  |  |  | 226,400 |  |  | 49,419 |  |  | 358 |  |
Key Metrics: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Combined ratio |  | 89.8 |  | % | 98.4 |  |  | (8.6) |  | pts |  | 89.5 | % |  | 97.6 |  |  | (8.1) |  | pts
Invested assets per dollar of common stockholders' equity |  | $ | 2.88 |  |  | 3.10 |  |  | (7) |  | % |  | $ | 2.88 |  |  | 3.10 |  |  | (7) |  | %
Annualized return on common equity ("ROE") |  | 18.3 |  |  | 6.2 |  |  | 12.1 |  | pts |  | 17.3 |  |  | 4.4 |  |  | 12.9 |  | pts
Statutory premiums to surplus ratio |  | 1.33 |  | x | 1.39 |  |  | (0.06) |  |  |  | 1.33 |  | x | 1.39 |  |  | (0.06) |  |
Per Common Share Amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted net income per share |  | $ | 1.98 |  |  | 0.57 |  |  | 247 |  | % |  | $ | 3.74 |  |  | 0.82 |  |  | 356 |  | %
Book value per share |  | 44.78 |  |  | 38.43 |  |  | 17 |  |  |  | 44.78 |  |  | 38.43 |  |  | 17 |  |
Dividends declared per share to common stockholders |  | 0.25 |  |  | 0.23 |  |  | 9 |  |  |  | 0.50 |  |  | 0.46 |  |  | 9 |  |
Non-GAAP Information: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-GAAP operating income 2 |  | $ | 111,638 |  |  | 24,190 |  |  | 362 |  | % |  | $ | 214,411 |  |  | 74,712 |  |  | 187 |  | %
Diluted non-GAAP operating income per common share 2 |  | 1.85 |  |  | 0.40 |  |  | 363 |  |  |  | 3.54 |  |  | 1.24 |  |  | 185 |  |
Annualized non-GAAP operating ROE 2 |  | 17.1 |  | % | 4.4 |  |  | 12.7 |  | pts |  | 16.4 | % |  | 6.7 |  |  | 9.7 |  | pts

1 Refer to the Glossary of Terms attached to our 2020 Annual Report as Exhibit 99.1 for definitions of terms used of this Form 10-Q.
2 Non-GAAP operating income is a measure comparable to net income available to common stockholders but excludes after-tax net realized and unrealized gains and losses on investments. Non-GAAP operating income is used as an important financial measure by us, analysts, and investors because the timing of realized investment gains and losses on sales of securities in any given period is largely discretionary. In addition, net realized and unrealized investment gains and losses on investments that are charged to earnings could distort the analysis of trends.
Reconciliations of net income available to common stockholders, net income available to common stockholders per diluted common share, and annualized ROE to non-GAAP operating income, non-GAAP operating income per diluted common share, and annualized non-GAAP operating ROE, respectively, are provided in the tables below:

Reconciliation of net income available to common stockholders to non-GAAP operating income |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Net income available to common stockholders |  | $ | 119,583 |  |  | 34,183 |  |  | $ | 226,400 |  |  | 49,419 |
Net realized and unrealized (gains) losses, before tax |  | (10,057) |  |  | (12,649) |  |  | (15,176) |  |  | 32,017 |
Tax on reconciling items |  | 2,112 |  |  | 2,656 |  |  | 3,187 |  |  | (6,724) |
Non-GAAP operating income |  | $ | 111,638 |  |  | 24,190 |  |  | $ | 214,411 |  |  | 74,712 |

Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share |  | Quarter ended June 30, |  | Six Months ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Net income available to common stockholders per diluted common share |  | $ | 1.98 |  |  | 0.57 |  |  | $ | 3.74 |  |  | 0.82 |
Net realized and unrealized (gains) losses, before tax |  | (0.17) |  |  | (0.21) |  |  | (0.25) |  |  | 0.53 |
Tax on reconciling items |  | 0.04 |  |  | 0.04 |  |  | 0.05 |  |  | (0.11) |
Non-GAAP operating income per diluted common share |  | $ | 1.85 |  |  | 0.40 |  |  | $ | 3.54 |  |  | 1.24 |

Reconciliation of annualized ROE to annualized non-GAAP operating ROE |  | Quarter ended June 30, |  | Six Months ended June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Annualized ROE |  | 18.3 | % |  | 6.2 |  |  | 17.3 | % |  | 4.4 |
Net realized and unrealized (gains) losses, before tax |  | (1.5) |  |  | (2.3) |  |  | (1.1) |  |  | 2.9 |
Tax on reconciling items |  | 0.3 |  |  | 0.5 |  |  | 0.2 |  |  | (0.6) |
Annualized non-GAAP operating ROE |  | 17.1 | % |  | 4.4 |  |  | 16.4 | % |  | 6.7 |

26

Table of Contents
The components of our annualized ROE are as follows:

Annualized ROE Components |  | Quarter ended June 30, |  | Change Points |  | Six Months ended June 30, |  | Change Points
|  | 2021 |  | 2020 |  |  | 2021 |  | 2020 |
Standard Commercial Lines Segment |  | 8.2 | % |  | 2.4 |  |  | 5.8 |  |  | 8.3 | % |  | 2.4 |  |  | 5.9 |
Standard Personal Lines Segment |  | 0.7 |  |  | (0.9) |  |  | 1.6 |  |  | 0.8 |  |  | (0.4) |  |  | 1.2 |
E&S Lines Segment |  | 0.3 |  |  | (0.1) |  |  | 0.4 |  |  | 0.2 |  |  | 0.2 |  |  | — |
Total insurance operations |  | 9.2 |  |  | 1.4 |  |  | 7.8 |  |  | 9.3 |  |  | 2.2 |  |  | 7.1 |
Investment income |  | 10.3 |  |  | 5.2 |  |  | 5.1 |  |  | 9.5 |  |  | 6.6 |  |  | 2.9 |
Net realized and unrealized investment gains (losses) |  | 1.2 |  |  | 1.8 |  |  | (0.6) |  |  | 0.9 |  |  | (2.3) |  |  | 3.2 |
Total investments segment |  | 11.5 |  |  | 7.0 |  |  | 4.5 |  |  | 10.4 |  |  | 4.3 |  |  | 6.1 |
Other |  | (2.4) |  |  | (2.2) |  |  | (0.2) |  |  | (2.4) |  |  | (2.1) |  |  | (0.3) |
Annualized ROE |  | 18.3 | % |  | 6.2 |  |  | 12.1 |  |  | 17.3 | % |  | 4.4 |  |  | 12.9 |

Our Six Months 2021 annualized non-GAAP operating ROE of 16.4% is above our full-year 2021 target of 11%, and our Six Months 2020 annualized non-GAAP operating ROE of 6.7%. Non-GAAP operating income per diluted common share increased (i) $1.45 in Second Quarter 2021 compared to Second Quarter 2020, and (ii) $2.30 in Six Months 2021 compared to Six Months 2020.
The increase in non-GAAP operating income per diluted common share in Second Quarter and Six Months 2021 compared to Second Quarter and Six Months 2020 was primarily driven by:
•Catastrophe losses (lower by $0.98 in Second Quarter 2021 and $1.05 in Six Months 2021) driven by industry-wide U.S. catastrophe loss activity in 2020 that significantly exceeded the 10-year historical median;
•Investment income (higher by $0.64 in Second Quarter 2021 and $0.82 in Six Months 2021) driven by our other investments portfolio, which principally includes alternative investments; and
•Favorable prior year casualty reserve development (higher by $0.31 in Six Months 2021) attributable to accident years 2018 and prior.
Outlook
We entered 2021 in the strongest financial position in our Company's long history, well positioned to continue generating disciplined and profitable growth. During 2021, we continued to focus on several areas to position us for ongoing success:
•Delivering on our strategy for continued disciplined growth by (i) continuing to expand our Standard Commercial Lines market share by increasing our share of wallet with existing agents and strategically appointing new agents, (ii) investing in geographic expansion, with a plan to add Vermont, Alabama, and Idaho, subject to regulatory approval, in the near-term, and other states over time, (iii) increasing customer retention by delivering a superior omnichannel experience and offering value-added technologies and services, and (iv) shifting our focus towards the mass affluent market within our Standard Personal Lines segment, which is a customer base that derives greater value from coverage and service.
•Continuing to achieve written renewal pure price increases that meet or exceed expected loss trend, while delivering on our strategy for continued disciplined growth. We achieved overall renewal pure price increases of 5.1% in Second Quarter 2021 and 5.2% in Six Months 2021, which we believe is above our expected loss trend.
•Continuing to build on a culture centered on the values of diversity, equity, and inclusion that fosters innovation and idea generation and developing a group of specially trained leaders who can guide us successfully into the future.
For more details about our major areas of strategic focus, refer to the "Outlook" section in "Financial Highlights of Results for Years Ended December 31, 2020, 2019, and 2018" within Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations." of our 2020 Annual Report.
For 2021, we revised our full-year guidance as follows:
•A GAAP combined ratio, excluding catastrophe losses, of 89% (prior guidance 90%) that assumes no additional prior-year casualty reserve development;
•Catastrophe losses of 4.0 points on the combined ratio;
•After-tax net investment income of $220 million (prior guidance $195 million) that includes $55 million (prior guidance $31 million) in after-tax net investment income from our alternative investments;
27

Table of Contents
•An overall effective tax rate of approximately 20.5%, that includes an effective tax rate of 19.0% for net investment income and 21% for all other items; and
•Weighted average shares of 60.5 million on a diluted basis.
Results of Operations and Related Information by Segment
Insurance Operations
The following table provides quantitative information for analyzing the combined ratio:

All Lines |  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |  |
Insurance Operations Results: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums written ("NPW") |  | $ | 833,205 |  |  | 724,752 |  |  | 15 |  | % |  | $ | 1,631,383 |  |  | 1,372,079 |  |  | 19 |  | %
Net premiums earned (“NPE”) |  | 740,518 |  |  | 630,671 |  |  | 17 |  |  |  | 1,465,478 |  |  | 1,282,374 |  |  | 14 |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expense incurred |  | 421,623 |  |  | 403,949 |  |  | 4 |  |  |  | 835,024 |  |  | 804,273 |  |  | 4 |  |
Net underwriting expenses incurred |  | 241,825 |  |  | 216,191 |  |  | 12 |  |  |  | 474,451 |  |  | 445,428 |  |  | 7 |  |
Dividends to policyholders |  | 1,182 |  |  | 658 |  |  | 80 |  |  |  | 2,405 |  |  | 1,443 |  |  | 67 |  |
Underwriting income |  | $ | 75,888 |  |  | 9,873 |  |  | 669 |  | % |  | $ | 153,598 |  |  | 31,230 |  |  | 392 |  | %
Combined Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expense ratio |  | 56.9 |  | % | 64.0 |  |  | (7.1) |  | pts |  | 56.9 |  | % | 62.8 |  |  | (5.9) |  | pts
Underwriting expense ratio |  | 32.7 |  |  | 34.3 |  |  | (1.6) |  |  |  | 32.4 |  |  | 34.7 |  |  | (2.3) |  |
Dividends to policyholders ratio |  | 0.2 |  |  | 0.1 |  |  | 0.1 |  |  |  | 0.2 |  |  | 0.1 |  |  | 0.1 |  |
Combined ratio |  | 89.8 |  |  | 98.4 |  |  | (8.6) |  |  |  | 89.5 |  |  | 97.6 |  |  | (8.1) |  |

The NPW growth in Second Quarter and Six Months 2021 compared to the prior year periods reflects our strong relationships with best-in-class distribution partners, sophisticated underwriting and pricing tools, and excellent customer servicing capabilities. This solid growth included (i) overall renewal pure price increases, and (ii) new business growth, as shown in the following table:

|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
($ in millions) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |
Direct new business |  | $ | 173.3 |  |  | 150.1 |  |  | 16 |  | % |  | $ | 329.0 |  |  | 302.9 |  |  | 9 |  | %
Renewal pure price increases |  | 5.1 |  |  | 3.9 |  |  | 1.2 |  |  |  | 5.2 |  |  | 4.0 |  |  | 1.2 |  |

In Second Quarter 2021, NPW growth was impacted by three points from the COVID-19-related premium credits to our personal and commercial automobile customers, which reduced NPW by $19.7 million in the prior-year period. The NPW growth in Six Months 2021 was further impacted by the COVID-19-related $75 million estimate of return audit and mid-term endorsement premium that reduced Six Months 2020 NPW, resulting in a total impact from COVID-19-related adjustments to NPW of approximately eight points in Six Months 2021.
28

Table of Contents
Loss and Loss Expenses
The decrease in the loss and loss expense ratio of 7.1% in Second Quarter and 5.9% in Six Months 2021 compared to Second Quarter and Six Months 2020, respectively, was primarily the result of the following:

| Second Quarter 2021 |  | Second Quarter 2020 |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  |  | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  | Change in Ratio |
Catastrophe losses | $ | 22.6 |  | 3.1 |  | pts |  | $ | 83.2 |  | 13.2 |  | pts | (10.1) |  | pts
(Favorable) prior year casualty reserve development | (17.0) |  | (2.3) |  |  |  | (15.0) |  | (2.4) |  |  | 0.1 |  |
Non-catastrophe property loss and loss expenses | 107.3 |  | 14.5 |  |  |  | 81.8 |  | 13.0 |  |  | 1.5 |  |
Total | $ | 112.9 |  | 15.3 |  |  |  | $ | 150.0 |  | 23.8 |  |  | (8.5) |  |
| Six Months 2021 |  | Six Months 2020 |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  |  | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  | Change in Ratio |
Catastrophe losses | $ | 52.6 |  | 3.6 |  | pts |  | $ | 116.4 |  | 9.1 |  | pts | (5.5) |  | pts
(Favorable) prior year casualty reserve development | (52.0) |  | (3.5) |  |  |  | (25.0) |  | (1.9) |  |  | (1.6) |  |
Non-catastrophe property loss and loss expenses | 222.9 |  | 15.2 |  |  |  | 189.9 |  | 14.8 |  |  | 0.4 |  |
Total | $ | 223.5 |  | 15.3 |  |  |  | $ | 281.3 |  | 22.0 |  |  | (6.7) |  |

Details of the prior year casualty reserve development were as follows:

(Favorable)/Unfavorable Prior Year Casualty Reserve Development | Quarter ended June 30, |  | Six Months ended June 30, |
($ in millions) | 2021 |  | 2020 |  | 2021 |  | 2020 |
General liability | $ | (10.0) |  |  | (10.0) |  |  | $ | (25.0) |  |  | (10.0) |  |
Commercial automobile | — |  |  | 10.0 |  |  | — |  |  | 10.0 |  |
Workers compensation | (5.0) |  |  | (15.0) |  |  | (20.0) |  |  | (25.0) |  |
Total Standard Commercial Lines | (15.0) |  |  | (15.0) |  |  | (45.0) |  |  | (25.0) |  |
E&S | (2.0) |  |  | — |  |  | (7.0) |  |  | — |  |
Total (favorable) prior year casualty reserve development | $ | (17.0) |  |  | (15.0) |  |  | $ | (52.0) |  |  | (25.0) |  |
(Favorable) impact on loss ratio | (2.3) |  | pts | (2.4) |  |  | (3.5) |  |  | (1.9) |  |

For additional qualitative reserve development discussion, please refer to the insurance segment sections below in "Results of Operations and Related Information by Segment."
Underwriting Expenses
The underwriting expense ratio decreased 1.6 points in Second Quarter 2021 compared to Second Quarter 2020 and 2.3 points in Six Months 2021 compared to Six Months 2020. The underwriting expense ratios in Second Quarter and Six Months 2020 were elevated by 2.2 points and 2.1 points, respectively, for COVID-19-related items. The decrease in the underwriting expense ratios in Second Quarter and Six Months 2021 reflect the absence of these COVID-19-related impacts, partially offset by an increase in profit-based compensation to our distribution partners and employees, which was 0.5 points higher in Second Quarter 2021 compared to Second Quarter 2020 and 0.3 points higher in Six Months 2021 compared to Six Months 2020.
The COVID-19-related items included in 2020 results were as follows: (i) lower net earned premiums from the estimate of return audit and mid-term endorsement premium recorded in the first quarter and premium credits given to our personal and commercial automobile customer during the second quarter; and (ii) increases of $3.0 million in the second quarter and $13.5 million in the first six months of last year to our allowance for credit losses on premiums receivable.
29

Table of Contents
Standard Commercial Lines Segment

|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |  |
Insurance Segments Results: |  |  |  |  |  |  |  |  |  |  |  |  |  |
NPW |  | $ | 677,128 |  |  | 583,342 |  |  | 16 |  | % |  | $ | 1,342,694 |  |  | 1,101,774 |  |  | 22 |  | %
NPE |  | 599,754 |  |  | 501,004 |  |  | 20 |  |  |  | 1,188,895 |  |  | 1,017,584 |  |  | 17 |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expense incurred |  | 329,817 |  |  | 307,037 |  |  | 7 |  |  |  | 654,667 |  |  | 619,195 |  |  | 6 |  |
Net underwriting expenses incurred |  | 200,817 |  |  | 176,579 |  |  | 14 |  |  |  | 394,386 |  |  | 363,090 |  |  | 9 |  |
Dividends to policyholders |  | 1,182 |  |  | 658 |  |  | 80 |  |  |  | 2,405 |  |  | 1,443 |  |  | 67 |  |
Underwriting income |  | $ | 67,938 |  |  | 16,730 |  |  | 306 |  | % |  | $ | 137,437 |  |  | 33,856 |  |  | 306 |  | %
Combined Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expense ratio |  | 55.0 |  | % | 61.4 |  |  | (6.4) |  | pts |  | 55.0 |  | % | 60.9 |  |  | (5.9) |  | pts
Underwriting expense ratio |  | 33.5 |  |  | 35.2 |  |  | (1.7) |  |  |  | 33.2 |  |  | 35.7 |  |  | (2.5) |  |
Dividends to policyholders ratio |  | 0.2 |  |  | 0.1 |  |  | 0.1 |  |  |  | 0.2 |  |  | 0.1 |  |  | 0.1 |  |
Combined ratio |  | 88.7 |  |  | 96.7 |  |  | (8.0) |  |  |  | 88.4 |  |  | 96.7 |  |  | (8.3) |  |

NPW growth was up 16% in Second Quarter 2021 and 22% in Six Months 2021 compared to the same prior-year periods, reflecting (i) direct new business increases, (ii) renewal pure price increases, and (iii) strong retention, as shown in the following table:

|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, | Change % or Points |
($ in millions) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020
Direct new business |  | $ | 128.7 |  |  | 109.9 |  |  | 17 |  | % |  | $ | 243.2 |  |  | 225.3 |  | 8 |  | %
Retention |  | 85 |  | % | 86 |  |  | (1) |  | pts |  | 85 | % |  | 85 |  | — |  | pts
Renewal pure price increases |  | 5.5 |  |  | 3.9 |  |  | 1.6 |  |  |  | 5.5 |  |  | 4.0 |  | 1.5 |  |

Additionally, Second Quarter 2021 NPW growth was impacted by three points from the COVID-19-related premium credits to our commercial automobile customers, which reduced NPW by $15.4 million in the prior-year period. The NPW growth in Six Months 2021 was further impacted by the COVID-19-related $75 million estimate of return audit and mid-term endorsement premium that reduced Six Months 2020 NPW, resulting in a total impact from COVID-19-related adjustments to NPW of approximately nine points in Six Months 2021.
The loss and loss expense ratio decreased 6.4 points in Second Quarter 2021 and 5.9 points in Six Months 2021 compared to the same prior-year periods, driven by the following:

| Second Quarter 2021 |  | Second Quarter 2020 |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  |  | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  | Change in Ratio |
Catastrophe losses | $ | 11.3 |  | 1.9 |  | pts |  | $ | 50.7 |  | 10.1 |  | pts | (8.2) |  | pts
Non-catastrophe property loss and loss expenses | 74.6 |  | 12.4 |  |  |  | 60.9 |  | 12.2 |  |  | 0.2 |  |
(Favorable) prior year casualty reserve development | (15.0) |  | (2.5) |  |  |  | (15.0) |  | (3.0) |  |  | 0.5 |  |
Total | 70.9 |  | 11.8 |  |  |  | 96.6 |  | 19.3 |  |  | (7.5) |  |
| Six Months 2021 |  | Six Months 2020 |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  |  | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  | Change in Ratio |
Catastrophe losses | $ | 27.3 |  | 2.3 |  | pts |  | $ | 71.4 |  | 7.0 |  | pts | (4.7) |  | pts
Non-catastrophe property loss and loss expenses | 158.3 |  | 13.3 |  |  |  | 140.5 |  | 13.8 |  |  | (0.5) |  |
(Favorable) prior year casualty reserve development | (45.0) |  | (3.8) |  |  |  | (25.0) |  | (2.5) |  |  | (1.3) |  |
Total | 140.6 |  | 11.8 |  |  |  | 186.9 |  | 18.3 |  |  | (6.5) |  |

Catastrophe losses in Second Quarter and Six Months 2021 were lower than our 10-year Standard Commercial Lines average of 2.9 points, whereas Second Quarter and Six Months 2020 were significantly higher than this average, in part due to numerous events designated by the Insurance Services Office's Property Claims Services unit that impacted us, including two April 2020 storms ($43 million) and claims related to civil unrest ($20 million).
In addition, the current year loss and loss expense ratio was higher by 1.2 points in Second Quarter 2021 and 0.8 points in Six Months 2021 compared to the same prior-year periods, primarily driven by increases in frequencies in 2021, as last year experienced lower frequencies reflecting reductions in miles driven due to the COVID-19-related governmental directives
30

Table of Contents
impacting our commercial automobile lines of business in 2020. This, in conjunction with lower non-catastrophe property losses in the prior year period, provided an offset to the $15.4 million premium credit to customers in 2020.
For quantitative information on the favorable prior year casualty reserve development by line of business, see the "Insurance Operations" section above, and for qualitative information about the significant drivers of this development, see the line of business discussions below.
The underwriting expense ratio decreased 1.7 points in Second Quarter 2021 compared to Second Quarter 2020 and 2.5 points in Six Months 2021 compared to Six Months 2020. The underwriting expense ratios in Second Quarter and Six Months 2020 were elevated by 2.5 points and 2.3 points, respectively, for COVID-19-related items, as further discussed in "Insurance Operations" above. The decrease in the underwriting expense ratios in Second Quarter and Six Months 2021 reflect the absence of these COVID-19-related impacts, partially offset by an increase in profit-based compensation to our distribution partners and employees, which was 0.5 points higher in both Second Quarter 2021 and Six Months 2021.
The following is a discussion of our most significant Standard Commercial Lines of business:

General Liability |  |  |  |  |  |  |
|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |  |
NPW |  | $ | 225,503 |  |  | 200,917 |  |  | 12 |  | % |  | $ | 447,565 |  |  | 351,711 |  |  | 27 |  | %
Direct new business |  | 37,174 |  |  | 31,468 |  |  | 18 |  |  |  | 71,428 |  |  | 67,354 |  |  | 6 |  |
Retention |  | 85 |  | % | 87 |  |  | (2) |  | pts |  | 85 |  | % | 86 |  |  | (1) |  | pts
Renewal pure price increases |  | 4.6 |  |  | 3.8 |  |  | 0.8 |  |  |  | 4.6 |  |  | 3.8 |  |  | 0.8 |  |
NPE |  | $ | 197,293 |  |  | 163,273 |  |  | 21 |  | % |  | $ | 390,813 |  |  | 327,853 |  |  | 19 |  | %
Underwriting income |  | 31,045 |  |  | 25,108 |  |  | 24 |  |  |  | 67,618 |  |  | 38,182 |  |  | 77 |  |
Combined ratio |  | 84.3 |  | % | 84.6 |  |  | (0.3) |  | pts |  | 82.7 |  | % | 88.4 | % |  | (5.7) |  | pts
% of total Standard Commercial Lines NPW |  | 33 |  |  | 34 |  |  |  |  |  | 33 |  |  | 32 |  |  |  |

NPW grew 12% in Second Quarter 2021 and 27% in Six Months 2021 compared to the same prior year periods due to new business growth, renewal pure price increases, and strong retention. NPW in Six Months 2021 was also impacted by 15 points from the COVID-19-related $46 million estimate of return audit and mid-term endorsement premium recorded on this line in the first quarter of 2020.
The fluctuations in the combined ratios illustrated in the table above included the following:

| Second Quarter 2021 | Second Quarter 2020 |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio |  | Loss and Loss Expense Incurred | Impact on Combined Ratio |  | Change in Ratio |
(Favorable) prior year casualty reserve development | $ | (10.0) |  | (5.1) |  | pts | $ | (10.0) |  | (6.1) |  | pts | 1.0 |  | pts
| Six Months 2021 | Six Months 2020 |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio |  | Loss and Loss Expense Incurred | Impact on Combined Ratio |  | Change in Ratio |
(Favorable) prior year casualty reserve development | $ | (25.0) |  | (6.4) |  | pts | $ | (10.0) |  | (3.1) |  | pts | (3.3) |  | pts

The favorable prior year casualty reserve development in Second Quarter and Six Months 2021 was primarily attributable to lower loss severities in accident years 2018 and prior. The Second Quarter and Six Months 2020 reserve development was primarily attributable to favorable reserve development on loss severities in accident years 2016 and prior.
In addition to the items above, the combined ratios were impacted by a decrease in the underwriting expense ratio of 1.4 points in Second Quarter 2021 compared to Second Quarter 2020 and 2.3 points in Six Months 2021 compared to Six Months 2020, the drivers of which are consistent with the items discussed in the Standard Commercial Lines Segment above.
31

Table of Contents

Commercial Automobile |  |  |  |  |  |  |
|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |  |
NPW |  | $ | 205,906 |  |  | 160,697 |  |  | 28 |  | % |  | $ | 396,552 |  |  | 329,007 |  |  | 21 |  | %
Direct new business |  | 33,406 |  |  | 32,143 |  |  | 4 |  |  |  | 62,152 |  |  | 61,000 |  |  | 2 |  |
Retention |  | 86 |  | % | 86 |  |  | — |  | pts |  | 86 |  | % | 86 |  |  | — |  | pts
Renewal pure price increases |  | 9.0 |  |  | 7.6 |  |  | 1.4 |  |  |  | 9.0 |  |  | 7.6 |  |  | 1.4 |  |
NPE |  | $ | 178,028 |  |  | 138,535 |  |  | 29 |  | % |  | $ | 349,909 |  |  | 288,225 |  |  | 21 |  | %
Underwriting income (loss) |  | 4,241 |  |  | (7,706) |  |  | 155 |  |  |  | 7,033 |  |  | (8,480) |  |  | 183 |  |
Combined ratio |  | 97.6 |  | % | 105.6 |  |  | (8.0) |  | pts |  | 98.0 |  | % | 102.9 |  |  | (4.9) |  | pts
% of total Standard Commercial Lines NPW |  | 30 |  |  | 28 |  |  |  |  |  | 30 |  |  | 30 |  |  |  |

NPW growth benefited from renewal pure price increases and growth in direct new business, as shown in the table above. This growth also includes an in-force vehicle count increase of 7% as of June 30, 2021 compared to June 30, 2020. Additionally, NPW growth includes 11 points in Second Quarter 2021 and 5 points in Six Months 2021 due to the $15.4 million premium credit given to our commercial automobile customers as a result of the COVID-19 pandemic in Second Quarter 2020, as discussed in the Standard Commercial Lines discussion above.
The combined ratio improvements outlined above were driven by the following:

| Second Quarter 2021 |  | Second Quarter 2020 |  |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Change in Ratio |
Catastrophe losses | $ | 0.5 |  | 0.3 |  | pts |  | $ | 1.1 |  | 0.8 |  | pts |  | (0.5) |  | pts
Non-catastrophe property loss and loss expenses | 26.2 |  | 14.7 |  |  |  | 17.1 |  | 12.3 |  |  |  | 2.4 |  |
Unfavorable prior year casualty reserve development | — |  | — |  |  |  | 10.0 |  | 7.2 |  |  |  | (7.2) |  |
Total | $ | 26.7 |  | 15.0 |  |  |  | $ | 28.2 |  | 20.3 |  |  |  | (5.3) |  |

| Six Months 2021 |  | Six Months 2020 |  |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Change in Ratio |
Catastrophe losses | $ | 0.7 |  | 0.2 |  | pts |  | $ | 1.4 |  | 0.5 |  | pts |  | (0.3) |  | pts
Non-catastrophe property loss and loss expenses | 55.6 |  | 15.9 |  |  |  | 40.1 |  | 13.9 |  |  |  | 2.0 |  |
Unfavorable prior year casualty reserve development | — |  | — |  |  |  | 10.0 |  | 3.5 |  |  |  | (3.5) |  |
Total | $ | 56.3 |  | 16.1 |  |  |  | $ | 51.5 |  | 17.9 |  |  |  | (1.8) |  |

In addition, the current year loss and loss expense ratio was higher by 1.6 points in Second Quarter 2021 and 0.6 points in Six Months 2021 compared to the same prior-year periods, primarily driven by increases in frequencies in 2021, as last year experienced lower frequencies reflecting reductions in miles driven due to the COVID-19-related governmental directives impacting this line of business in 2020. This, in conjunction with lower non-catastrophe property losses in the prior year period, provided an offset to the $15.4 million premium credit to customers in 2020.
The Second Quarter and Six Months 2020 prior year casualty reserve development was primarily attributable to unfavorable reserve development on loss severities in accident years 2016 through 2019, and higher than expected frequencies in accident year 2019.
In addition to the items above, the combined ratios were impacted by a decrease in the underwriting expense ratio of 4.3 points in Second Quarter 2021 compared to Second Quarter 2020 and 3.9 points in Six Months 2021 compared to Six Months 2020, the drivers of which are consistent with the items further discussed in the Standard Commercial Lines Segment above.
32

Table of Contents

Workers Compensation |  |  |  |  |  |  |
|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |  |
NPW |  | $ | 80,491 |  |  | 74,984 |  |  | 7 |  | % |  | $ | 172,782 |  |  | 126,180 |  |  | 37 |  | %
Direct new business |  | 16,002 |  |  | 12,612 |  |  | 27 |  |  |  | 31,947 |  |  | 27,969 |  |  | 14 |  |
Retention |  | 86 |  | % | 85 |  |  | 1 |  | pts |  | 86 |  | % | 84 |  |  | 2 |  | pts
Renewal pure price (decreases) increases |  | (0.1) |  |  | (2.9) |  |  | 2.8 |  |  |  | 0.1 |  |  | (2.7) |  |  | 2.8 |  |
NPE |  | $ | 74,337 |  |  | 61,906 |  |  | 20 |  | % |  | $ | 152,527 |  |  | 128,612 |  |  | 19 |  | %
Underwriting income |  | 8,686 |  |  | 15,720 |  |  | (45) |  |  |  | 29,104 |  |  | 26,755 |  |  | 9 |  |
Combined ratio |  | 88.3 |  | % | 74.6 |  |  | 13.7 |  | pts |  | 80.9 |  | % | 79.2 |  |  | 1.7 |  | pts
% of total Standard Commercial Lines NPW |  | 12 |  |  | 13 |  |  |  |  |  | 13 |  |  | 11 |  |  |  |

NPW increased 7% in Second Quarter 2021 and 37% in Six Months 2021 compared to the respective prior year periods due to increased direct new business and higher retention. Additionally, NPW growth in Six Months 2021 was impacted by 25 points due to the COVID-19-related $29 million estimate of return audit and mid-term endorsement premium recorded on this line in the first quarter of 2020.
The increase in the combined ratio in Second Quarter 2021 and Six Months 2021 compared to the same prior-year periods was driven by favorable prior year casualty reserve development, as follows:

| Second Quarter 2021 | Second Quarter 2020 |  |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio |  | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Change in Ratio |
(Favorable) prior year casualty reserve development | $ | (5.0) |  | (6.7) |  | pts | $ | (15.0) |  | (24.2) |  | pts |  | 17.5 |  | pts
| Six Months 2021 | Six Months 2020 |  |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio |  | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Change in Ratio |
(Favorable) prior year casualty reserve development | $ | (20.0) |  | (13.1) |  | pts | $ | (25.0) |  | (19.4) |  | pts |  | 6.3 |  | pts

The favorable prior year casualty reserve development in Second Quarter and Six Months 2021 was primarily due to lower severities in accident years 2018 and prior, and the development in Second Quarter and Six Months 2020 was primarily due to lower severities in accident years 2017 and prior.
In addition, the combined ratios were impacted by a decrease in the underwriting expense ratio of 2.5 points in Second Quarter 2021 compared to Second Quarter 2020 and 3.1 points in Six Months 2021 compared to Six Months 2020, the drivers of which are consistent with the items further discussed in the Standard Commercial Lines Segment above.

Commercial Property |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |  |
NPW |  | $ | 119,140 |  |  | 104,060 |  |  | 14 |  | % |  | $ | 232,524 |  |  | 207,186 |  |  | 12 |  | %
Direct new business |  | 29,943 |  |  | 23,858 |  |  | 26 |  |  |  | 54,212 |  |  | 48,444 |  |  | 12 |  |
Retention |  | 84 |  | % | 84 |  |  | — |  | pts |  | 84 |  | % | 84 |  |  | — |  | pts
Renewal pure price increases |  | 5.6 |  |  | 3.9 |  |  | 1.7 |  |  |  | 5.8 |  |  | 4.0 |  |  | 1.8 |  |
NPE |  | $ | 106,113 |  |  | 95,413 |  |  | 11 |  | % |  | $ | 208,923 |  |  | 189,282 |  |  | 10 |  | %
Underwriting income (loss) |  | 16,820 |  |  | (14,339) |  |  | 217 |  |  |  | 23,586 |  |  | (22,891) |  |  | 203 |  |
Combined ratio |  | 84.1 |  | % | 115.0 |  |  | (30.9) |  | pts |  | 88.7 |  | % | 112.1 |  |  | (23.4) |  | pts
% of total Standard Commercial Lines NPW |  | 18 |  |  | 18 |  |  |  |  |  | 17 |  |  | 19 |  |  |  |

33

Table of Contents
The decrease in the combined ratio in Second Quarter 2021 and Six Months 2021 compared to the same prior-year periods was driven by the following:

| Second Quarter 2021 |  | Second Quarter 2020 |  |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Change in Ratio |
Catastrophe losses | $ | 9.2 |  | 8.6 |  | pts |  | 35.3 |  | 37.0 |  | pts |  | (28.4) |  | pts
Non-catastrophe property loss and loss expenses | 40.3 |  | 38.0 |  |  |  | 38.3 |  | 40.1 |  |  |  | (2.1) |  |
Total | $ | 49.5 |  | 46.6 |  |  |  | 73.6 |  | 77.1 |  |  |  | (30.5) |  |
| Six Months 2021 |  | Six Months 2020 |  |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Loss and Loss Expense Incurred | Impact on Combined Ratio |  |  | Change in Ratio |
Catastrophe losses | $ | 22.9 |  | 10.9 |  | pts |  | 55.0 |  | 29.0 |  | pts |  | (18.1) |  | pts
Non-catastrophe property loss and loss expenses | 84.9 |  | 40.6 |  |  |  | 83.9 |  | 44.3 |  |  |  | (3.7) |  |
Total | $ | 107.8 |  | 51.5 |  |  |  | 138.9 |  | 73.3 |  |  |  | (21.8) |  |

Lower catastrophe losses in Second Quarter and Six Months 2021 compared to Second Quarter and Six Months 2020 were driven by the events mentioned in the "Standard Commercial Lines" discussion above.
Standard Personal Lines Segment

|  | Quarter ended June 30, |  | Change % or Points |  |  |  | Six Months ended June 30, |  | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  |  |  | 2021 |  | 2020 |  |
Insurance Segments Results: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NPW |  | $ | 78,559 |  |  | 78,173 |  |  | — |  |  | % |  | $ | 143,636 |  |  | 145,813 |  |  | (1) |  | %
NPE |  | 73,293 |  |  | 71,633 |  |  | 2 |  |  |  |  | 147,114 |  |  | 147,761 |  |  | — |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expense incurred |  | 47,984 |  |  | 58,151 |  |  | (17) |  |  |  |  | 95,150 |  |  | 112,483 |  |  | (15) |  |
Net underwriting expenses incurred |  | 19,665 |  |  | 19,807 |  |  | (1) |  |  |  |  | 38,625 |  |  | 41,216 |  |  | (6) |  |
Underwriting income (loss) |  | $ | 5,644 |  |  | (6,325) |  |  | 189 |  |  | % |  | $ | 13,339 |  |  | (5,938) |  |  | 325 |  | %
Combined Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expense ratio |  | 65.5 |  | % | 81.1 |  |  | (15.6) |  |  | pts |  | 64.6 |  | % | 76.1 |  |  | (11.5) |  | pts
Underwriting expense ratio |  | 26.8 |  |  | 27.7 |  |  | (0.9) |  |  |  |  | 26.3 |  |  | 27.9 |  |  | (1.6) |  |
Combined ratio |  | 92.3 |  |  | 108.8 |  |  | (16.5) |  |  |  |  | 90.9 |  |  | 104.0 |  |  | (13.1) |  |

NPW was flat in Second Quarter 2021 compared to Second Quarter 2020 and decreased 1% in Six Months 2021 compared to Six Months 2020, primarily driven by new business that was not sufficient to compensate for the policies lost at renewal due to the challenging competitive environment in the personal auto line of business. Offsetting this decrease was the impact of the COVID-19-related premium credits to our personal automobile customers, which reduced NPW by $4.3 million in the prior-year period, and added five points of growth in Second Quarter 2021 compared to Second Quarter 2020 and three points of growth in Six Months 2021 compared to Six Months 2020.

|  | Quarter ended June 30, | Change % or Points |  |  | Six Months ended June 30, | Change % or Points |
($ in millions) |  | 2021 |  | 2020 |  |  | 2021 |  | 2020 |
Direct new business |  | $ | 10.9 |  |  | 11.8 |  | (8) |  | % |  | $ | 20.8 |  |  | 21.8 |  | (5) |  | %
Retention |  | 84 |  | % | 84 |  | — |  | pts |  | 83 |  | % | 83 |  | — |  | pts
Renewal pure price increases |  | 1.1 |  |  | 3.1 |  | (2.0) |  |  |  | 0.9 |  |  | 3.4 |  | (2.5) |  |

34

Table of Contents
The loss and loss expense ratio decreased 15.6 points in Second Quarter 2021 compared to Second Quarter 2020 and 11.5 points in Six Months 2021 compared to Six Months 2020 driven by the following:

| Second Quarter 2021 |  | Second Quarter 2020 |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  |  | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  | Change in Ratio |
Catastrophe losses | $ | 5.0 |  | 6.8 |  | pts |  | 26.0 |  | 36.2 |  | pts | (29.4) |  | pts
Non-catastrophe property loss and loss expenses | 24.9 |  | 34.0 |  |  |  | 15.3 |  | 21.4 |  |  | 12.6 |  |
Total | $ | 29.9 |  | 40.8 |  |  |  | 41.3 |  | 57.6 |  |  | (16.8) |  |
| Six Months 2021 |  | Six Months 2020 |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  |  | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  | Change in Ratio |
Catastrophe losses | $ | 10.6 |  | 7.2 |  | pts |  | 37.9 |  | 25.7 |  | pts | (18.5) |  | pts
Non-catastrophe property loss and loss expenses | 48.0 |  | 32.6 |  |  |  | 38.1 |  | 25.8 |  |  | 6.8 |  |
Total | $ | 58.6 |  | 39.8 |  |  |  | 76.0 |  | 51.5 |  |  | (11.7) |  |

Ten events were designated as catastrophes that impacted Second Quarter 2021, with a severe thunderstorm, including wind and hail, in late June 2021 in our footprint states having the most significant impact on results. Six Months 2021 results were also impacted by a severe thunderstorm, accompanied by wind and hail, in March 2021, which affected our footprint states. Thirteen events impacted Second Quarter 2020, which included two severe storms occurring in April 2020, that impacted parts of the Mid-West and East Coast regions of the United States with damaging winds and tornadoes. Additionally, Six Months 2020 was affected by a tornado that impacted Tennessee in March 2020.
In addition, the current year loss and loss expense ratio was higher by 1.2 points in Second Quarter 2021 and 0.3 points in Six Months 2021 compared to the same prior-year periods, primarily driven by increases in frequencies in 2021, as last year experienced lower frequencies reflecting reductions in miles driven due to the COVID-19-related governmental directives impacting our personal automobile line of business in 2020. This, in conjunction with lower non-catastrophe property losses in the prior year period, provided an offset to the $4.3 million premium credit to customers in 2020.
The underwriting expense ratio decreased 0.9 points in Second Quarter 2021 compared to Second Quarter 2020 and 1.6 points in Six Months 2021 compared to Six Months 2020. The underwriting expense ratios in Second Quarter and Six Months 2020 were elevated by 2.1 points and 2.2 points, respectively, for COVID-19-related items, as further discussed in "Insurance Operations" above. The decrease in the underwriting expense ratios in Second Quarter and Six Months 2021 reflect the absence of these COVID-19-related impacts, partially offset by an increase in profit-based compensation to our employees, which was 0.8 points in Second Quarter 2021 and 0.6 points in Six Months 2021.
E&S Lines Segment

|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, |  | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  |  | 2021 |  | 2020 |  |
Insurance Segments Results: |  |  |  |  |  |  |  |  |  |  |  |  |  |
NPW |  | $ | 77,518 |  |  | 63,237 |  |  | 23 |  | % |  | $ | 145,053 |  |  | 124,492 |  |  | 17 |  | %
NPE |  | 67,471 |  |  | 58,034 |  |  | 16 |  |  |  | 129,469 |  |  | 117,029 |  |  | 11 |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expense incurred |  | 43,822 |  |  | 38,761 |  |  | 13 |  |  |  | 85,207 |  |  | 72,595 |  |  | 17 |  |
Net underwriting expenses incurred |  | 21,343 |  |  | 19,805 |  |  | 8 |  |  |  | 41,440 |  |  | 41,122 |  |  | 1 |  |
Underwriting income (loss) |  | $ | 2,306 |  |  | (532) |  |  | 533 |  | % |  | $ | 2,822 |  |  | 3,312 |  |  | (15) |  | %
Combined Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expense ratio |  | 65.0 |  | % | 66.8 |  |  | (1.8) |  | pts |  | 65.8 |  | % | 62.1 |  |  | 3.7 |  | pts
Underwriting expense ratio |  | 31.6 |  |  | 34.1 |  |  | (2.5) |  |  |  | 32.0 |  |  | 35.1 |  |  | (3.1) |  |
Combined ratio |  | 96.6 |  |  | 100.9 |  |  | (4.3) |  |  |  | 97.8 |  |  | 97.2 |  |  | 0.6 |  |

35

Table of Contents
NPW grew 23% in Second Quarter 2021 and 17% in Six Months 2021 compared to the same prior-year periods due to strong new business growth and renewal pure price increases. Quantitative information on the premium in this segment is as follows:

|  | Quarter ended June 30, | Change % or Points |  |  | Six Months ended June 30, | Change % or Points |
($ in millions) |  | 2021 |  | 2020 |  |  | 2021 |  | 2020 |
Direct new business |  | $ | 33.7 |  |  | 28.3 |  | 19 |  | % |  | $ | 65.0 |  |  | 55.8 |  | 16 |  | %
Renewal pure price increases |  | 6.9 |  |  | 5.5 |  | 1.4 |  |  |  | 7.1 |  |  | 4.8 |  | 2.3 |  |

The loss and loss expense ratio decreased 1.8 points in Second Quarter 2021 while increasing 3.7 points in Six Months 2021 compared to the same prior year periods, primarily driven by the items outlined in the table below:

| Second Quarter 2021 |  |  | Second Quarter 2020 |  |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  |  | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  | Change in Ratio |
Catastrophe losses | $ | 6.4 |  | 9.5 |  | pts |  | $ | 6.5 |  | 11.3 |  | pts | (1.8) |  | pts
Non-catastrophe property loss and loss expenses | 7.8 |  | 11.5 |  |  |  | 5.6 |  | 9.6 |  |  | 1.9 |  |
(Favorable) prior year casualty reserve development | (2.0) |  | (3.0) |  |  |  | — |  | — |  |  | (3.0) |  |
Total | $ | 12.2 |  | 18.0 |  |  |  | $ | 12.1 |  | 20.9 |  |  | (2.9) |  |
| Six Months 2021 |  |  | Six Months 2020 |  |  |
($ in millions) | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  |  | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio |  | Change in Ratio |
Catastrophe losses | $ | 14.7 |  | 11.3 |  | pts |  | $ | 7.0 |  | 6.0 |  | pts | 5.3 |  | pts
Non-catastrophe property loss and loss expenses | 16.6 |  | 12.9 |  |  |  | 11.3 |  | 9.7 |  |  | 3.2 |  |
(Favorable) prior year casualty reserve development | (7.0) |  | (5.4) |  |  |  | — |  | — |  |  | (5.4) |  |
Total | $ | 24.3 |  | 18.8 |  |  |  | $ | 18.3 |  | 15.7 |  |  | 3.1 |  |

The increase in catastrophe losses in Six Months 2021 compared to Six Months 2020 was primarily due to a series of large storms that significantly impacted Texas and other southern and central states. Non-catastrophe property loss and loss expenses were also elevated in both periods due to an increase in severity of a few commercial property losses from fires.
The favorable prior year casualty reserve development in Second Quarter and Six Months 2021 was primarily attributable to lower loss severities in accident years 2016 through 2018. There was no prior year casualty reserve development in Second Quarter and Six Months 2020.
The underwriting expense ratio decreased 2.5 points in Second Quarter 2021 and 3.1 points in Six Months 2021 compared to the respective prior year periods, primarily due to a decrease in labor and travel expenses of 1.6 points in Second Quarter 2021 and 1.7 points in Six Months 2021 compared to the same prior-year periods. In addition, the underwriting expense ratios in Second Quarter and Six Months 2020 were elevated by 0.4 points and 1.0 point, respectively, for COVID-19-related increases in our allowance for credit losses on premiums receivable as further discussed in "Insurance Operations" above.
Reinsurance
We successfully completed negotiations of our July 1, 2021 excess of loss treaties, which provide coverage for our Standard Commercial Lines, Standard Personal Lines, and E&S Lines. The Casualty Excess of Loss (“Casualty Treaty”) was renewed with the same structure as the expiring treaty. The treaty year ceded deposit premium increased $9.5 million, or 16%, reflecting a slight rate increase coupled with an increase in projected subject earned premium.
The Property Excess of Loss (“Property Treaty”) was renewed with an increase in the retention on the first layer from $2.0 million to $3.0 million, thereby decreasing the coverage in excess of retention to $7.0 million from $8.0 million. The subsequent layers remained the same. The treaty year deposit premium increased $0.5 million, or 1%, reflecting a risk-adjusted rate increase along with an increase in projected subject premium offset with the premium reduction benefit of the aforementioned first layer retention increase.
36

Table of Contents
The following table summarizes the details of the Property Treaty and the Casualty Treaty arrangements covering our Insurance Subsidiaries:

Treaty Name |  | Reinsurance Coverage |  | Terrorism Coverage
Property Excess of Loss (covers all insurance operations) |  | $57 million above $3 million retention covering 100% in three layers. Losses other than TRIPRA certified losses are subject to the following reinstatements and annual aggregate limits: - $7 million in excess of $3 million layer provides unlimited reinstatements; - $30 million in excess of $10 million layer provides three reinstatements, $120 million in aggregate limits; and - $20 million in excess of $40 million layer provides three reinstatements, $80 million in aggregate limits. |  | All NBCR losses are excluded regardless of whether or not they are certified under TRIPRA. For non-NBCR losses, the treaty distinguishes between acts committed on behalf of foreign persons or foreign interests ("Foreign Terrorism") and those that are not. The treaty provides annual aggregate limits for Foreign Terrorism (other than NBCR) acts of $21 million for the first layer, $60 million for the second layer, and $40 million for the third layer. Non-foreign terrorism losses (other than NBCR) are covered to the same extent as non-terrorism losses.
Casualty Excess of Loss (covers all insurance operations) |  | There are six layers covering 100% of $88 million in excess of $2 million. Losses other than terrorism losses are subject to the following: - $3 million in excess of $2 million layer provides 33 reinstatements, $102 million annual aggregate limit; - $7 million in excess of $5 million layer provides six reinstatements, $49 million annual aggregate limit; - $9 million in excess of $12 million layer provides three reinstatements, $36 million annual aggregate limit; - $9 million in excess of $21 million layer provides one reinstatement, $18 million annual aggregate limit; - $20 million in excess of $30 million layer provides one reinstatement, $40 million annual aggregate limit; and - $40 million in excess of $50 million layer provides one reinstatement, $80 million annual aggregate limit. |  | All NBCR losses are excluded. All other losses stemming from the acts of terrorism are subject to the following: - $3 million in excess of $2 million layer with $15 million net annual terrorism aggregate limit; - $7 million in excess of $5 million layer with $28 million net annual terrorism aggregate limit; - $9 million in excess of $12 million layer with $27 million net annual terrorism aggregate limit; - $9 million in excess of $21 million layer with $18 million net annual terrorism aggregate limit; - $20 million in excess of $30 million layer with $40 million net annual terrorism aggregate limit; and - $40 million in excess of $50 million layer with $80 million net annual terrorism aggregate limit.

Investments
The primary objective of the investment portfolio is to maximize after-tax net investment income and its overall total return while maintaining a high credit quality core fixed income securities portfolio and managing our duration risk profile. The effective duration of our fixed income and short-term investments was 3.9 years as of June 30, 2021, compared to the Insurance Subsidiaries' liability duration of 3.7 years at December 31, 2020. The effective duration is monitored and managed to maximize yield while managing interest rate risk at an acceptable level. We maintain a well-diversified portfolio across sectors, with credit quality and maturities that provide ample liquidity. Purchases and sales are intended to maximize investment returns in the current market environment while balancing capital preservation.
Our fixed income and short-term investments represented 91% of our invested assets at June 30, 2021, and 92% at December 31, 2020. At June 30, 2021, these investments had a weighted average credit rating of "A+" compared to “AA-” as of December 31, 2020, with a 96% allocation to investment grade holdings at both periods. The decline in the weighted average credit rating reflects a meaningful reduction in our sector allocation to agency residential mortgage-backed securities over the past year as lower interest rates accelerated prepayments as we had expected. Given the very low reinvestment rates for this asset class, we have reallocated these non-sale disposal cash flows into other high-quality fixed income sectors, including corporate securities and other asset-backed security classes that do not carry a "AAA" rating, but in our view currently offer a better risk and reward trade-off.

Total Invested Assets |  |  |  |  |  |  |
($ in thousands) |  | June 30, 2021 |  | December 31, 2020 |  | Change |
Total invested assets |  | $ | 7,755,441 |  |  | 7,505,599 |  |  | 3 |  | %
Invested assets per dollar of common stockholders' equity |  | 2.88 |  |  | 2.96 |  |  | (3) |  |
Unrealized gain – before tax 1 |  | 348,440 |  |  | 395,207 |  |  | (12) |  |
Unrealized gain – after tax 1 |  | 275,268 |  |  | 312,214 |  |  | (12) |  |

1 Includes unrealized gains on fixed income and equity securities.
Invested assets increased as of June 30, 2021, compared to December 31, 2020, reflecting operating cash flows during Six Months 2021 of $292.5 million, that were 18% of NPW, partially offset by a decrease in pre-tax unrealized gains of $46.8 million. The decrease in gross unrealized gains during Six Months 2021 was driven by an increase in longer-dated benchmark United States Treasury rates, partially offset by tightening credit spreads.
For further details on the composition, credit quality, and various risks to which our portfolio is subject, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk.” of our 2020 Annual Report.
37

Table of Contents
Net Investment Income
The components of net investment income earned were as follows:

|  | Quarter ended June 30, |  | Change % or Points |  |  | Six Months ended June 30, | Change % or Points |
($ in thousands) |  | 2021 |  | 2020 |  |  | 2021 |  | 2020
Fixed income securities |  | $ | 52,608 |  |  | 51,079 |  |  | 3 | % |  |  | $ | 105,431 |  |  | 101,332 |  | 4 | % |
Commercial mortgage loans ("CMLs") |  | 695 |  |  | 156 |  |  | 346 |  |  |  | 1,209 |  |  | 218 |  | 455 |  |
Equity securities |  | 2,982 |  |  | 2,023 |  |  | 47 |  |  |  | 5,470 |  |  | 3,575 |  | 53 |  |
Short-term investments |  | 55 |  |  | 420 |  |  | (87) |  |  |  | 140 |  |  | 1,586 |  | (91) |  |
Other investments |  | 32,860 |  |  | (15,846) |  |  | (307) |  |  |  | 50,293 |  |  | (9,504) |  | (629) |  |
Investment expenses |  | (5,469) |  |  | (3,388) |  |  | 61 |  |  |  | (9,096) |  |  | (6,796) |  | 34 |  |
Net investment income earned – before tax |  | 83,731 |  |  | 34,444 |  |  | 143 |  |  |  | 153,447 |  |  | 90,411 |  | 70 |  |
Net investment income tax expense |  | (16,290) |  |  | (5,902) |  |  | 176 |  |  |  | (29,663) |  |  | (16,386) |  | 81 |  |
Net investment income earned – after tax |  | $ | 67,441 |  |  | 28,542 |  |  | 136 |  |  |  | $ | 123,784 |  |  | 74,025 |  | 67 |  |
Effective tax rate |  | 19.5 | % |  | 17.1 |  |  | 2.4 |  | pts |  | 19.3 | % |  | 18.1 |  | 1.2 |  | pts
Annualized after-tax yield on fixed income investments |  | 2.6 |  |  | 2.7 |  |  | (0.1) |  |  |  | 2.6 |  |  | 2.6 |  | — |  |
Annualized after-tax yield on investment portfolio |  | 3.5 |  |  | 1.6 |  |  | 1.9 |  |  |  | 3.2 |  |  | 2.1 |  | 1.1 |  |

The increase in after-tax net investment income in Second Quarter and Six Months 2021 compared to Second Quarter and Six Months 2020 was driven by higher returns on alternative investments in our other investment portfolio of $29.9 million in Second Quarter 2021 and $50.1 million in Six Months 2021, compared to losses of $16.0 million and $9.7 million in the same prior-year periods, respectively. These returns are recorded on a one-quarter lag, and reflect the strong capital market performance in the three and six-month periods ending March 31, 2021.
Realized and Unrealized Gains and Losses
Our general investment philosophy for sales of securities is to (i) reduce our exposure to securities and sectors that we have evaluated and determined have deteriorated economic fundamentals, or (ii) determine appropriate timing for an opportunistic trade for other securities or sectors with better economic-return characteristics. Net realized and unrealized gains and losses for the indicated periods were as follows:

|  | Quarter ended June 30, |  | Change % |  | Six Months ended June 30, |  | Change %
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Net realized gains (losses) on disposals |  | $ | 268 |  |  | 2,615 |  |  | (90) | % |  | $ | (527) |  |  | 6,715 |  |  | (108) | %
Net unrealized gains (losses) equity securities |  | 7,661 |  |  | 5,701 |  |  | 34 |  |  | 18,941 |  |  | (11,436) |  |  | (266) |
Net credit loss benefit (expense) on fixed income securities, AFS |  | 2,272 |  |  | 4,923 |  |  | (54) |  |  | (2,725) |  |  | (10,864) |  |  | (75) |
Net credit loss (expense) benefit on fixed income securities, HTM |  | (53) |  |  | 1 |  |  | N/M |  | (60) |  |  | 1 |  |  | N/M
Net credit loss benefit (expense) on CMLs |  | — |  |  | 22 |  |  | (100) |  |  | — |  |  | (218) |  |  | (100) |
Losses on securities for which we have the intent to sell |  | (91) |  |  | (613) |  |  | (85) |  |  | (453) |  |  | (16,215) |  |  | (97) |
Total net realized and unrealized gains (losses) |  | $ | 10,057 |  |  | 12,649 |  |  | (20) |  |  | $ | 15,176 |  |  | (32,017) |  |  | (147) |

The improvement in net realized and unrealized gains in Six Months 2021 compared to Six Months 2020 was primarily driven by (i) unrealized gains on our equity securities this year compared to unrealized losses last year, which were driven by COVID-19-related market disruption last year, and (ii) lower intent-to-sell losses this year as we provided our investment managers significant trading flexibility last year given market conditions.
Federal Income Taxes
The following table provides information about federal income taxes and reconciles federal income tax at the corporate rate to the effective tax rate:

|  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Tax at statutory rate |  | $ | 32,172 |  |  | 8,965 |  |  | $ | 60,655 |  |  | 12,325 |
Tax-advantaged interest |  | (1,139) |  |  | (1,171) |  |  | (2,317) |  |  | (2,385) |
Dividends received deduction |  | (167) |  |  | (165) |  |  | (276) |  |  | (220) |
Executive compensation |  | 763 |  |  | 365 |  |  | 970 |  |  | 716 |
Stock-based compensation |  | (160) |  |  | 51 |  |  | (623) |  |  | (1,830) |
Other |  | (154) |  |  | 465 |  |  | (732) |  |  | 665 |
Federal income tax expense |  | $ | 31,315 |  |  | 8,510 |  |  | $ | 57,677 |  |  | 9,271 |
Income before federal income tax, less preferred stock dividends |  | $ | 150,898 |  |  | 42,693 |  |  | $ | 284,077 |  |  | 58,690 |
Effective tax rate |  | 20.8 | % |  | 19.9 |  |  | 20.3 |  |  | 15.8 |

38

Table of Contents
We had increased levels of income before federal income tax in Six Months 2021 subject to the statutory tax rate of 21% that increased our effective tax rate in Six Months 2021 compared to Six Months 2020 by 450 basis points.
Financial Condition, Liquidity, and Capital Resources
Capital resources and liquidity reflect our ability to generate cash flows from business operations, borrow funds at competitive rates, and raise new capital to meet operating and growth needs.
Liquidity
We manage liquidity by focusing on generating sufficient cash flows to meet the short-term and long-term cash requirements of our business operations.
Sources of Liquidity
Sources of cash for the Parent historically have consisted of dividends from the Insurance Subsidiaries, the investment portfolio held by the Parent, borrowings under third-party lines of credit, loan agreements with certain Insurance Subsidiaries, and the issuance of equity and debt securities. We continue to monitor these sources, giving consideration to our long-term liquidity and capital preservation strategies.
The Parent's investment portfolio provides liquidity through (i) short-term investments that are generally maintained in “AAA” rated money market funds approved by the National Association of Insurance Commissioners, (ii) high-quality, highly liquid government and corporate fixed income securities; (iii) equity securities, and (iv) a cash balance. In the aggregate, Parent cash and total investments amounted to $505 million at June 30, 2021 and $490 million at December 31, 2020.
The Parent's liquidity may fluctuate based on various factors, including the amount and availability of dividends from our Insurance Subsidiaries, investment income, expenses, other Parent cash needs, such as dividends payable to shareholders, asset allocation investment decisions, and share repurchases. Our target for the Parent is to maintain liquidity matching at least twice its expected annual needs, which is currently estimated at $180 million.
Insurance Subsidiary Dividends
The Insurance Subsidiaries generate liquidity through insurance float, which is created by collecting premiums and earning investment income before claims are paid. The period of float can extend over many years. Our investment portfolio consists of maturity dates that continually provide a source of cash flow for claims payments in the ordinary course of business. As protection for the capital resources at the Insurance Subsidiaries, we purchase reinsurance coverage for any significantly large claims or catastrophes that may occur.
The Insurance Subsidiaries paid $70 million in total dividends to the Parent during Six Months 2021. As of December 31, 2020, our allowable ordinary maximum dividend was $241 million for 2021. All Insurance Subsidiary dividends to the Parent are (i) subject to the approval and/or review of its domiciliary state insurance regulator, and (ii) generally payable only from earned surplus reported in its statutory annual statements as of the preceding December 31. Although domiciliary state insurance regulators historically have approved dividends, there is no assurance they will approve future Insurance Subsidiary dividends.
New Jersey corporate law also limits the maximum amount of dividends the Parent can pay our shareholders if either (i) the Parent would be unable to pay its debts as they became due in the usual course of business, or (ii) the Parent’s total assets would be less than its total liabilities. The Parent’s ability to pay dividends to shareholders is also impacted by (i) covenants in its credit agreement (discussed below under "Line of Credit") that obligate it, among other things, to maintain a minimum consolidated net worth and a maximum ratio of consolidated debt to total capitalization, and (ii) the terms of our preferred stock that prohibit dividends to be declared or paid on our common stock if dividends are not declared and paid, or made payable, on all outstanding preferred stock for the latest completed dividend period.
For additional information regarding dividend restrictions and financial covenants, where applicable, see Note 11. "Indebtedness", Note 17. "Preferred Stock", and Note 22. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” in Item 8. “Financial Statements and Supplementary Data.” of our 2020 Annual Report.
Line of Credit
On December 20, 2019, the Parent entered into a Credit Agreement with the lenders named therein (the “Lenders”) and the Bank of Montreal, Chicago Branch, as Administrative Agent ("Line of Credit"). Under the Line of Credit, the Lenders have agreed to provide the Parent with a $50 million revolving credit facility that can be increased to $125 million with the Lenders'
39

Table of Contents
consent. The Line of Credit will mature on December 20, 2022, and has a variable interest rate based on, among other factors, the Parent’s debt ratings.
For additional information regarding the Line of Credit and corresponding representations, warranties, and covenants, refer to Note 11. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report. We met all covenants under our Line of Credit as of June 30, 2021.
Several Insurance Subsidiaries are members of Federal Home Loan Bank branches, as shown in the following table. Membership requires the ownership of branch stock and includes the right to borrow and gain access to liquidity. All FHLBI and FHLBNY borrowings are required to be secured by investments pledged as collateral. For additional information regarding collateral outstanding, refer to Note 4. "Investments" in Item 1. "Financial Statements." of this Form 10-Q:

Branch | Insurance Subsidiary Member
FHLBI | Selective Insurance Company of South Carolina ("SICSC")1 Selective Insurance Company of the Southeast ("SICSE")1
FHLBNY | Selective Insurance Company of America ("SICA") Selective Insurance Company of New York ("SICNY")

1 These subsidiaries are jointly referred to as the "Indiana Subsidiaries" as they are domiciled in Indiana.
The Line of Credit permits aggregate borrowings from the FHLBI and the FHLBNY up to 10% of the respective member company’s admitted assets for the previous year. Additionally, as SICNY is domiciled in New York, its FHLBNY borrowings are limited by New York insurance regulations to the lower of 5% of admitted assets for the most recently completed fiscal quarter, or 10% of admitted assets for the previous year-end. As of June 30, 2021, we had remaining capacity of $339 million for Federal Home Loan Bank borrowings, with a $12.2 million additional stock purchase requirement to allow the member companies to borrow their full remaining capacity amounts.
Short-term Borrowings
We did not make any short-term borrowings during Six Months 2021.
Intercompany Loan Agreements
The Parent has lending agreements with the Indiana Subsidiaries approved by the Indiana Department of Insurance, that provide it additional liquidity. Similar to the Line of Credit, these lending agreements limit the Parent's borrowings from the Indiana Subsidiaries to 10% of the admitted assets of the respective Indiana Subsidiary. The outstanding balance on these intercompany loans was $40.0 million as of both June 30, 2021 and December 31, 2020. The remaining capacity under these intercompany loan agreements was $97.1 million as of both June 30, 2021, and December 31, 2020.
Capital Market Activities
The Parent had no private or public issuances of stock during Six Months 2021. In the fourth quarter of 2020, we enhanced our capital structure flexibility at the Parent by issuing $200 million of 4.60% non-cumulative perpetual preferred stock. Net proceeds after issuance costs were approximately $195 million. The Parent is using these proceeds for general corporate purposes, which may include the repurchase of common stock under a $100 million share repurchase program authorized by our Board in conjunction with the preferred stock offering. During Six Months 2021, we repurchased 52,781 shares of our common stock under this authorization at a cost of approximately $3.4 million, with a $64.49 average price per share, with all share repurchases made in the first quarter of 2021. We have $96.6 million of remaining capacity under our share repurchase program.
Uses of Liquidity
The Parent's liquidity generated from the sources discussed above is used, among other things, to pay dividends to our shareholders. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board of Directors based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. On July 28, 2021, our Board of Directors declared:
•A cash dividend of $0.25 per common share that is payable September 1, 2021 to holders of record as of August 13, 2021; and
•A cash dividend of $287.50 per share on our 4.60% Non-Cumulative Preferred Stock, Series B (equivalent to $0.28750 per depository share) that is payable on September 15, 2021 to holders of record as of August 31, 2021.
Our ability to meet our interest and principal repayment obligations on our debt, as well as our ability to continue to pay dividends to our stockholders, is dependent on (i) liquidity at the Parent, (ii) the ability of the Insurance Subsidiaries to pay
40

Table of Contents
dividends, if necessary, and/or (iii) the availability of other sources of liquidity to the Parent. On July 21, 2021, we repaid one of our $25 million borrowings from the FHLBNY. This repayment increased our remaining capacity to $364 million, from $339 million, for Federal Home Loan Bank borrowings, as well as the related additional stock purchase requirement to $13.3 million, from $12.2 million, for the member companies to borrow their full remaining capacity amounts. The following summarizes our upcoming principal payments due:
•$25 million to FHLBNY on August 16, 2021; and
•$60 million to FHLBI on December 16, 2026.
Restrictions on the ability of the Insurance Subsidiaries to declare and pay dividends, without alternative liquidity options, could materially affect our ability to service debt and pay dividends on common and preferred stock. We currently expect to repay the $25 million FHLBNY borrowing in full on August 16, 2021 from available Insurance Subsidiaries liquid assets.
Capital Resources
Capital resources ensure we can pay policyholder claims, furnish the financial strength to support the business of underwriting insurance risks, and facilitate continued business growth. At June 30, 2021, we had GAAP stockholders' equity of $2.9 billion and statutory surplus of $2.3 billion. With total debt of $550.9 million at June 30, 2021, our debt-to-capital ratio was 16%. For additional information on our statutory surplus, see Note 22. "Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.
Our cash requirements include, without limitation, principal and interest payments on various notes payable, dividends to stockholders, payment of claims, payment of commitments under limited partnership agreements, capital expenditures, and other operating expenses, including commissions to our distribution partners, labor costs, premium taxes, general and administrative expenses, and income taxes. For further details regarding our cash requirements, refer to the section below entitled, “Contractual Obligations, Contingent Liabilities, and Commitments.”
We continually monitor our cash requirements and the amount of capital resources we maintain at the holding company and operating subsidiary levels. As part of our long-term capital strategy, we strive to maintain capital metrics that support our targeted financial strength relative to the macroeconomic environment. Based on our analysis and market conditions, we may take a variety of actions, including, without limitation, contributing capital to the Insurance Subsidiaries, issuing additional debt and/or equity securities, repurchasing existing debt, repurchasing shares of the Parent’s common stock, and increasing common stockholders’ dividends.
Our capital management strategy is intended to protect the interests of the policyholders of the Insurance Subsidiaries and our stockholders, while enhancing our financial strength and underwriting capacity. We have an attractive book of business and solid capital base, positioning us well to take advantage of market opportunities that may arise.
Book value per common share increased to $44.78 as of June 30, 2021, from $42.38 as of December 31, 2020, driven by $3.74 in net income per share, and partially offset by $0.86 of lower unrealized gains on our fixed income securities portfolio and $0.50 in dividends to our common shareholders.
Ratings
Our ratings remain the same as reported in our "Overview" section of Item 1. "Business." of our 2020 Annual Report and are as follows:

NRSRO |  | Financial Strength Rating |  | Outlook
AM Best Company |  | A |  | Positive
Moody's Investors Services ("Moody's") |  | A2 |  | Stable
Fitch Ratings ("Fitch") |  | A+ |  | Stable
Standard & Poor's Global Ratings |  | A |  | Stable

On April 2, 2021, Fitch reaffirmed our "A+" rating with a "stable" outlook. In taking this rating action, Fitch cited our strong capitalization, financial performance, stable underwriting results, and return metrics that have remained favorable compared to peers.
On May 6, 2021, Moody’s reaffirmed our "A2" rating with a "stable" outlook. In taking this action, Moody’s cited our (i) strong underwriting profitability, financial leverage and coverage metrics, (ii) conservative investment portfolio, and (iii) strong regional franchise presence and established independent agency support.
41

Table of Contents
Off-Balance Sheet Arrangements
At June 30, 2021, and December 31, 2020, we had no material relationships with unconsolidated entities or financial partnerships, such as structured finance or special purpose entities, established to facilitate off-balance sheet arrangements or other contractually narrow or limited purposes. Consequently, we are not exposed to any material financing, liquidity, market, or credit risk related to off-balance sheet arrangements.
Contractual Obligations, Contingent Liabilities, and Commitments
Our future cash payments associated with (i) loss and loss expense reserves, (ii) contractual obligations pursuant to operating and financing leases for office space and equipment, and (iii) notes payable have not materially changed since December 31, 2020. At June 30, 2021, we had certain contractual obligations that may require us to invest additional amounts in our investment portfolio as follows:

($ in millions) |  | Amount of Obligation | Year of Expiration of Obligation
Alternative and other investments |  | $ | 222.9 |  | 2036
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio |  | 39.9 |  | 2030
Non-publicly traded common stock within our equity portfolio |  | 9.4 |  | 2027
CMLs |  | 5.4 |  | 2023
Privately-placed corporate securities |  | 16.0 |  | Less than a year
Total |  | $ | 293.6 |  |

There is no certainty that any such additional investment will be required. We expect to have the capacity to repay and/or refinance these obligations as they come due.
We have issued no material guarantees on behalf of others and have no trading activities involving non-exchange traded contracts accounted for at fair value. For additional details on transactions with related parties, see Note 18. "Related Party Transactions" in Item 8. "Financial Statements and Supplementary Data." of our 2020 Annual Report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
There have been no material changes in the information about market risk set forth in our 2020 Annual Report. While not reflective of a material shift in the overall risk/return characteristics of our fixed income and short-term investments, the aggregate weighted average credit rating of these portfolios decreased to "A+" as of June 30, 2021, from “AA-” as of December 31, 2020. The decline in the weighted average credit rating reflects a meaningful reduction in our sector allocation to agency residential mortgage-backed securities over the past year as lower interest rates accelerated prepayments, as we had expected. Given the very low reinvestment rates for this asset class, we have reallocated these non-sale disposal cash flows into other high-quality fixed income sectors, including corporate securities and other asset-backed security classes that do not carry a "AAA" rating, but in our view currently offer a better risk and reward trade-off.
ITEM 4. CONTROLS AND PROCEDURES.
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this report. In performing this evaluation, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework ("COSO Framework") in 2013. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures as of the end of such period are (i) effective in recording, processing, summarizing, and reporting information on a timely basis that we are required to disclose in the reports that we file or submit under the Exchange Act, and (ii) effective in ensuring that information that we are required to disclose in the reports that we file or submit under the Exchange Act is appropriately accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions about required disclosure. No changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) occurred during Second Quarter 2021 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
42

Table of Contents
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
Incidental to our insurance operations, we are engaged in ordinary routine legal proceedings that, because litigation outcomes are inherently unpredictable, could have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. For additional information regarding our legal risks, refer to Note 13. "Litigation" in Item 1. "Financial Statements." of this Form 10-Q and Item 1A. “Risk Factors.” below in Part II. “Other Information.” As of June 30, 2021, we have no material pending legal proceedings that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.
ITEM 1A. RISK FACTORS.
Certain risk factors can significantly impact our business, liquidity, capital resources, results of operations, financial condition, and debt ratings. These risk factors might affect, alter, or change actions we might take executing our long-term capital strategy. Examples include, without limitation, contributing capital to any or all of the Insurance Subsidiaries, issuing additional debt and/or equity securities, repurchasing our existing debt and/or equity securities, or increasing or decreasing stockholders' dividends. We operate in a continually changing business environment and new risk factors emerge from time to time. Consequently, we can neither predict such new risk factors nor assess the potential future impact, if any, they might have on our business. Except as discussed below,there have been no material changes from the risk factors disclosed in Item 1A. “Risk Factors.” in our 2020 Annual Report.
During Second Quarter 2021, the risk of broad economic inflation has emerged as a heightened risk relative to the risk factor discussed in our 2020 Annual Report. Inflation levels accelerated in Second Quarter 2021 with the overall consumer price index ("CPI"), the Core CPI, and the Producer Price Index all showing elevated levels compared to last year. As discussed in more detail in our 2020 Annual Report, inflation has significant potential impacts to our claims severity across multiple lines of business and could also cause higher levels of reserve development. Additionally, if heightened levels of economic inflation are tied to higher interest rate yields on fixed income securities, it could increase unrealized losses on our fixed income securities and lower total returns from our other invested assets.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
The following table provides information about our purchases of our common stock in Second Quarter 2021:

Period |  | Total Number of Shares Purchased 1 |  | Average Price Paid per Share |  | Total Number of Shares Purchased as Part of Publicly Announced Programs |  | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Announced Programs (in millions)2
April 1 – 30, 2021 |  | 166 |  |  | $ | 73.33 |  |  | — |  |  | $ | 96.6 |
May 1 – 31, 2021 |  | 398 |  |  | 77.43 |  |  | — |  |  | 96.6 |
June 1 – 30, 2021 |  | 375 |  |  | 76.26 |  |  | — |  |  | 96.6 |
Total |  | 939 |  |  | $ | 76.24 |  |  | — |  |  | $ | 96.6 |

1 We purchased these shares from employees to satisfy tax withholding obligations associated with the vesting of their restricted stock units.
2 On December 2, 2020, we announced that our Board of Directors authorized a $100 million share repurchase program, which has no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock, and the repurchase program may be suspended or discontinued at any time at our discretion. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion and based on market conditions and other considerations.
43

Table of Contents
ITEM 6. EXHIBITS.

Exhibit No. |  |
*11 |  | Statement Re: Computation of Per Share Earnings.
*31.1 |  | Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2 |  | Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.
**32.1 |  | Certification of Chief Executive Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.
**32.2 |  | Certification of Chief Financial Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.
*101 |  | The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements.
*104 |  | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in iXBRL.

* Filed herewith.
** Furnished and not filed herewith.
+ Management compensation plan or arrangement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
SELECTIVE INSURANCE GROUP, INC.
Registrant

Date: | July 29, 2021 |  | By: /s/ John J. Marchioni
|  |  | John J. Marchioni
|  |  | President and Chief Executive Officer
|  |  | (principal executive officer)
Date: | July 29, 2021 |  | By: /s/ Mark A. Wilcox
|  |  | Mark A. Wilcox
|  |  | Executive Vice President and Chief Financial Officer
|  |  | (principal financial officer)

44