EX-99.2 3 q12022pressreleasesuppleme.htm EX-99.2

Document

Exhibit 99.2

FINANCIAL SUPPLEMENT

FIRST QUARTER 2022

Forward-Looking Statements

Certain statements in this report, including information incorporated by reference, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements. These statements relate to our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or industry actual results, activity levels, or performance to materially differ from those expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” “continue,” or comparable terms. Our forward-looking statements are only predictions, and we can give no assurance that such expectations will prove correct. We undertake no obligation, other than as federal securities laws may require, to publicly update or revise any forward-looking statements for any reason.

Factors that could cause our actual results to differ materially from what we project, forecast, or estimate in forward-looking statements include, without limitation:

•Related to COVID-19:

◦Governmental directives to contain or delay the spread of the COVID-19 pandemic have disrupted ordinary business commerce and impacted financial markets. These governmental actions, the extent, duration, and possible alteration based on future COVID-19-related developments that we cannot predict, could materially and adversely affect our results of operations, net investment income, financial position, and liquidity.

◦The amount of premium we record may be reduced and our underwriting results may be adversely impacted by (i) voluntary premium credits on in-force commercial and personal automobile policies, (ii) state insurance commissioner or other regulatory directives to implement premium-based credit in lines other than commercial and personal automobile, and we may be required to return more premium than warranted by our filed rating plans and actual loss experience, (iii) the effects of our voluntary efforts or the directives from various state insurance regulators to extend individualized payment flexibility and suspend policy cancellations, late payment notices, and late or reinstatement fees, (iv) return premiums that could be significant because our general liability and workers compensation policies provide for premium audit of revenues and payrolls, and (v) collectability of premiums, which may be impacted by policyholder financial distress and insolvency.

◦Our loss and loss expenses may increase, our related reserves may not be adequate, and our financial condition and liquidity may be materially impacted if litigation or changes in statutory or common law (i) require payment of COVID-19-related business interruption losses despite contrary terms, conditions, and exclusions in our policies or (ii) presume that COVID-19 is a work-related illness compensable under workers compensation policies for employees who contract the virus, regardless of whether they worked in industries defined as essential in various COVID-19-related governmental directives or interacted with the public as part of their job duties.

◦Our net investment income may be impacted by the significant equity and debt financial market volatility resulting from the COVID-19 pandemic and the related governmental orders because (i) financial market volatility is reflected in our alternative investments’ performance, (ii) increased spreads on fixed income securities may create mark-to-market investment valuation losses that reduce unrealized capital gains and impact GAAP equity, and (iii) net realized losses may increase if we intend to sell more securities, particularly in asset classes that are more significantly impacted by COVID-19-related governmental directives and to which the Federal Reserve Board is providing liquidity and structural support.

◦To varying degrees, the effect, lifting, or lapsing of COVID-19-related governmental directives in 2021 have disrupted supply chains and caused shortages of products, services, and labor. These shortages may impact our ability to attract and retain labor, including increasing attrition rates, wages, and the cost and difficulty of obtaining third-party non-U.S.-based resources.

•The ongoing Russian war against Ukraine is impacting global economic, banking, commodity, and financial markets, exacerbating ongoing economic challenges, including inflation and supply chain disruption, which influences insurance loss costs, premiums and investment valuation;

•Difficult conditions in global capital markets and the economy, including the risk of prolonged higher inflation, could increase loss costs and negatively impact investment portfolios;

•Deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and interest rate fluctuations;

•Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus;

•The adequacy of our loss reserves and loss expense reserves;

•Frequency and severity of catastrophic events, including natural events such as hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest;

•Adverse market, governmental, regulatory, legal, or judicial conditions or actions;

•The geographic concentration of our business in the eastern portion of the United States;

•The cost, terms and conditions, and availability of reinsurance;

•Our ability to collect on reinsurance and the solvency of our reinsurers;

•The impact of changes in U.S. trade policies and imposition of tariffs on imports that may lead to higher than anticipated inflationary trends for our loss and loss expenses;

•Uncertainties related to insurance premium rate increases and business retention;

•Changes in insurance regulations that impact our ability to write and/or cease writing insurance policies in one or more states;

•The effects of data privacy or cyber security laws and regulations on our operations;

•Major defect or failure in our internal controls or information technology and application systems that result in harm to our brand in the marketplace, increased senior executive focus on crisis and reputational management issues and/or increased expenses, particularly if we experience a significant privacy breach;

•Potential tax or federal financial regulatory reform provisions that could pose certain risks to our operations;

•Our ability to maintain favorable ratings from rating agencies, including AM Best, Standard & Poor’s, Moody’s, and Fitch;

•Our entry into new markets and businesses; and

•Other risks and uncertainties we identify in filings with the United States Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K and other periodic reports.

These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors that we cannot predict or assess may emerge.

Selective’s SEC filings can be accessed through the Investors page of Selective’s website, www.Selective.com, or through the SEC’s EDGAR Database at www.sec.gov (Selective EDGAR CIK No. 0000230557).

Selective Insurance Group, Inc. & Consolidated Subsidiaries

TABLE OF CONTENTS

			Page
Consolidated Financial Highlights			1
Consolidated Statements of Operations			2
Consolidated Balance Sheets			3
Financial Metrics			4
Consolidated Insurance Operations Statement of Operations			5
Standard Commercial Lines Statement of Operations and Supplemental Data			6
Standard Commercial Lines GAAP Line of Business Results			7
Standard Personal Lines Statement of Operations and Supplemental Data			8
Standard Personal Lines GAAP Line of Business Results			9
Excess and Surplus Lines Statement of Operations and Supplemental Data			10
Excess and Surplus Lines GAAP Line of Business Results			11
Consolidated Investment Income			12
Consolidated Composition of Invested Assets			13
Credit Quality of Invested Assets			14
Reconciliation of Net Income Available to Common Stockholders to Non-GAAP Operating Income and Certain Other Non-GAAP Measures			15
Ratings and Contact Information			16

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

						Quarter ended
						Mar. 31,									Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ and shares in millions, except per share data)						2022									2021						2021						2021						2021
For Period Ended
			Gross premiums written			$	1,006.4								865.4						939.9						959.6						914.3
			Net premiums written			889.8									745.4						812.9						833.2						798.2
			Change in net premiums written, from comparable prior year period			11			%						9						13						15						23
			Underwriting income, before-tax			$	55.8								54.1						10.9						75.9						77.7
			Net investment income earned, before-tax			72.6									80.1						93.0						83.7						69.7
			Net realized and unrealized investment (losses) gains, before-tax			(40.4)									2.2						0.2						10.1						5.1
			Net income			$	56.3								99.0						73.7						121.9						109.3
			Net income available to common stockholders(1)			54.0									96.7						71.4						119.6						106.8
			Non-GAAP operating income(2)			85.9									94.9						71.3						111.6						102.8
At Period End
			Total assets			10,310.5									10,461.4						10,442.2						10,167.9						9,848.6
			Total invested assets			7,774.7									8,027.0						7,859.2						7,755.4						7,559.3
			Stockholders' equity			2,778.2									2,982.9						2,922.1						2,891.4						2,744.0
			Common stockholders' equity(3)			2,578.2									2,782.9						2,722.1						2,691.4						2,544.0
			Common shares outstanding			60.3									60.2						60.1						60.1						60.0
Per Share and Share Data
			Net income available to common stockholders per common share (diluted)			$	0.89								1.59						1.18						1.98						1.77
			Non-GAAP operating income per common share (diluted)(2)			1.41									1.56						1.18						1.85						1.70
			Weighted average common shares outstanding (diluted)			60.8									60.8						60.6						60.5						60.5
			Book value per common share			$	42.73								46.24						45.27						44.78						42.38
			Adjusted book value per common share(2)			43.80									43.23						41.56						40.56						38.73
			Dividends paid per common share			0.28									0.28						0.25						0.25						0.25
Financial Ratios
			Loss and loss expense ratio			60.8			%						60.4						65.9						56.9						57.0
			Underwriting expense ratio			32.1									32.5						32.6						32.7						32.1
			Dividends to policyholders ratio			0.2									0.2						0.1						0.2						0.2
			GAAP combined ratio			93.1			%						93.1						98.6						89.8						89.3
			Annualized return on common stockholders' equity ("ROE")			8.1									14.0						10.6						18.3						16.8
			Annualized non-GAAP operating ROE(2)			12.8									13.8						10.6						17.1						16.2
			Debt to total capitalization			15.4									14.5						14.6						16.0						16.7
			Net premiums written to policyholders' surplus			1.36x									1.33x						1.35x						1.33x						1.33x
			Invested assets per dollar of common stockholders' equity			$	3.02								2.88						2.89						2.88						2.97
(1)			Net income available to common stockholders is net income reduced by preferred stock dividends.
(2)			Non-GAAP measure. Refer to Page 15 for definition.
(3)			Excludes equity related to preferred stock.

Page 1

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

						Quarter ended
						Mar. 31,						Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ and shares in millions, except per share data)						2022						2021						2021						2021						2021
Revenues
			Net premiums earned			$	812.3					784.5						767.2						740.5						725.0
			Net investment income earned			72.6						80.1						93.0						83.7						69.7
			Net realized and unrealized (losses) gains			(40.4)						2.2						0.2						10.1						5.1
			Other income			1.5						2.8						4.6						6.2						4.1
			Total revenues			846.1						869.7						865.0						840.5						803.9
Expenses
			Loss and loss expense incurred			494.2						473.7						505.3						421.6						413.4
			Amortization of deferred policy acquisition costs			169.8						162.2						160.9						154.4						149.1
			Other insurance expenses			94.0						97.4						94.8						94.9						88.9
			Interest expense			7.2						7.2						7.2						7.4						7.4
			Corporate expenses			11.0						5.4						4.3						9.1						9.6
			Total expenses			776.2						745.9						772.4						687.3						668.3
Income before federal income tax						69.9						123.8						92.6						153.2						135.6
Federal income tax expense						13.6						24.9						18.9						31.3						26.4
Net Income						56.3						99.0						73.7						121.9						109.3
Preferred stock dividends						2.3						2.3						2.3						2.3						2.5
Net income available to common stockholders						54.0						96.7						71.4						119.6						106.8
Net realized and unrealized investment losses (gains), after tax(1)						31.9						(1.8)						(0.1)						(7.9)						(4.0)
Non-GAAP operating income(2)						$	85.9					94.9						71.3						111.6						102.8
Weighted average common shares outstanding (diluted)						60.8						60.8						60.6						60.5						60.5
			Net income available to common stockholders per common share (diluted)			$	0.89					1.59						1.18						1.98						1.77
			Non-GAAP operating income per common share (diluted)(2)			$	1.41					1.56						1.18						1.85						1.70
(1)			Amounts are provided to reconcile net income available to common stockholders to non-GAAP operating income.
(2)			Non-GAAP measure. Refer to Page 15 for definition.
			Note: Amounts may not foot due to rounding.

Page 2

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)

									Mar. 31,						Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ in millions, except per share data)									2022						2021						2021						2021						2021
ASSETS
Investments
			Fixed income securities, held-to-maturity, net of allowance for credit losses						$	33.0					28.8						25.3						27.0						24.3
			Fixed income securities, available-for-sale, at fair value, net of allowance for credit losses						6,598.8						6,710.0						6,677.1						6,626.4						6,521.6
			Commercial mortgage loans, net of allowance for credit losses						115.9						95.8						84.0						72.0						61.1
			Equity securities, at fair value						344.6						335.5						324.2						348.3						324.3
			Short-term investments						256.7						447.9						355.9						351.2						337.8
			Other investments						425.7						409.0						392.8						330.5						290.2
						Total investments			7,774.7						8,027.0						7,859.2						7,755.4						7,559.3
Cash									0.4						0.5						0.5						0.5						0.5
Restricted cash									17.5						44.6						34.3						8.8						8.4
Accrued investment income									48.4						48.2						46.1						46.1						46.1
Premiums receivable, net of allowance for credit losses									1,011.5						945.2						984.8						988.0						895.2
Reinsurance recoverable, net of allowance for credit losses									577.4						600.1						686.2						596.9						580.9
Prepaid reinsurance premiums									175.0						183.0						188.0						177.7						168.6
Current federal income tax									—						0.8						1.2						—						—
Deferred federal income tax									55.3						—						—						—						—
Property and equipment, net of accumulated depreciation and amortization									83.2						82.1						75.0						75.1						76.1
Deferred policy acquisition costs									341.7						326.9						334.0						323.2						302.7
Goodwill									7.8						7.8						7.8						7.8						7.8
Other assets									217.7						195.2						225.0						188.5						203.1
						Total assets			$	10,310.5					10,461.4						10,442.2						10,167.9						9,848.6
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Reserve for loss and loss expense									$	4,644.4					4,580.9						4,610.3						4,437.3						4,360.2
Unearned premiums									1,872.7						1,803.2						1,847.3						1,791.3						1,689.5
Long-term debt									505.6						506.1						500.9						550.9						550.9
Current federal income tax									16.5						—						—						18.3						42.0
Deferred federal income tax									—						13.4						3.2						0.1						2.3
Accrued salaries and benefits									90.6						121.1						113.7						103.4						83.7
Other liabilities									402.6						453.9						444.6						375.3						376.0
						Total liabilities			$	7,532.3					7,478.5						7,520.1						7,276.5						7,104.6
Stockholders' Equity
Preferred stock of $0 par value per share									$	200.0					200.0						200.0						200.0						200.0
Common stock of $2 par value per share									209.3						208.9						208.8						208.7						208.6
Additional paid-in capital									472.8						464.3						458.1						454.5						446.4
Retained earnings									2,640.4						2,603.5						2,523.8						2,467.6						2,363.2
Accumulated other comprehensive (loss) income									(129.8)						115.1						140.2						169.4						134.6
Treasury stock, at cost									(614.5)						(608.9)						(608.9)						(608.8)						(608.7)
						Total stockholders' equity			$	2,778.2					2,982.9						2,922.1						2,891.4						2,744.0
Commitments and contingencies
						Total liabilities and stockholders' equity			$	10,310.5					10,461.4						10,442.2						10,167.9						9,848.6
Note: Amounts may not foot due to rounding.

Page 3

Selective Insurance Group, Inc. & Consolidated Subsidiaries

FINANCIAL METRICS

(Unaudited)

									Quarter ended
									Mar 31,									Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ and shares in millions, except per share data)									2022									2021						2021						2021						2021
Book value per common share
						Common stockholders' equity			$	2,578.2								2,782.9						2,722.1						2,691.4						2,544.0
						Common shares issued and outstanding, at period end			60.3									60.2						60.1						60.1						60.0
						Book value per common share			$	42.73								46.24						45.27						44.78						42.38
						Adjusted book value per common share(2)			43.80									43.23						41.56						40.56						38.73
Financial results (after-tax)
						Underwriting income			44.1									42.7						8.6						60.0						61.4
						Net investment income			58.5									64.5						74.7						67.4						56.3
						Interest expense and preferred stock dividends			(8.0)									(8.0)						(8.0)						(8.1)						(8.3)
						Corporate expense			(8.7)									(4.3)						(4.0)						(7.6)						(6.7)
						Net realized and unrealized investment (losses) gains			(31.9)									1.8						0.1						7.9						4.0
						Total after-tax net income available to common stockholders			54.0									96.7						71.4						119.6						106.8
Return on average equity
						Insurance segments			6.6			%						6.2						1.3						9.2						9.7
						Net investment income			8.7									9.4						11.0						10.3						8.9
						Interest expense and preferred stock dividends			(1.2)									(1.2)						(1.2)						(1.2)						(1.3)
						Corporate expense			(1.3)									(0.6)						(0.5)						(1.2)						(1.1)
						Net realized and unrealized investment (losses) gains			(4.7)									0.2						—						1.2						0.6
						Annualized ROE			8.1									14.0						10.6						18.3						16.8
						Net realized and unrealized losses (gains)(1)			4.7									(0.2)						—						(1.2)						(0.6)
						Annualized Non-GAAP Operating ROE(2)			12.8			%						13.8						10.6						17.1						16.2
Debt and total capitalization
			Notes payable:
						1.61% Borrowings from FHLBNY			$	—								—						—						25.0						25.0
						1.56% Borrowings from FHLBNY			—									—						—						25.0						25.0
						3.03% Borrowings from FHLBI			60.0									60.0						60.0						60.0						60.0
						7.25% Senior Notes			49.8									49.8						49.8						49.8						49.8
						6.70% Senior Notes			99.2									99.2						99.2						99.2						99.2
						5.375% Senior Notes			291.7									291.6						291.5						291.5						291.4
						Finance Lease Obligations			4.9									5.4						0.4						0.5						0.6
			Total debt						505.6									506.1						500.9						550.9						550.9
			Stockholders' equity						2,778.2									2,982.9						2,922.1						2,891.4						2,744.0
			Total capitalization						$	3,283.8								3,488.9						3,423.0						3,442.2						3,294.9
			Ratio of debt to total capitalization						15.4			%						14.5						14.6						16.0						16.7
Policyholders' surplus									$	2,418.6								2,391.0						2,319.6						2,275.4						2,204.7
(1)						Amounts are provided to reconcile annualized ROE to annualized non-GAAP operating ROE.
(2)						Non-GAAP measure. Refer to Page 15 for definition.
						Note: Amounts may not foot due to rounding.

Page 4

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED INSURANCE OPERATIONS

STATEMENT OF OPERATIONS

(Unaudited)

									Quarter ended
									Mar. 31,									Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ in millions)									2022									2021						2021						2021						2021
Underwriting results
Net premiums written									$	889.8								745.4						812.9						833.2						798.2
Change in net premiums written, from comparable prior year period									11			%						9						13						15						23
Net premiums earned									$	812.3								784.5						767.2						740.5						725.0
Losses and loss expenses incurred									494.2									473.7						505.3						421.6						413.4
Net underwriting expenses incurred									260.6									255.1						250.0						241.8						232.6
Dividends to policyholders									1.6									1.7						1.0						1.2						1.2
GAAP underwriting income									$	55.8								54.1						10.9						75.9						77.7
Net catastrophe losses									$	20.6								35.3						76.3						22.6						29.9
(Favorable) prior year casualty reserve development									(20.0)									(15.0)						(14.0)						(17.0)						(35.0)
Underwriting ratios
Loss and loss expense ratio									60.8			%						60.4						65.9						56.9						57.0
Underwriting expense ratio									32.1									32.5						32.6						32.7						32.1
Dividends to policyholders ratio									0.2									0.2						0.1						0.2						0.2
						Combined ratio			93.1			%						93.1						98.6						89.8						89.3
Net catastrophe losses									2.5			pts						4.5						10.0						3.1						4.1
(Favorable) prior year casualty reserve development									(2.5)			pts						(1.9)						(1.8)						(2.3)						(4.8)
						Combined ratio before net catastrophe losses			90.6			%						88.6						88.6						86.7						85.2
						Combined ratio before net catastrophe losses and prior year casualty development			93.1									90.5						90.4						89.0						90.0
Other Statistics
Non-catastrophe property loss and loss expenses									$	150.4								125.2						123.7						107.3						115.6
Non-catastrophe property loss and loss expenses									18.5			pts						16.0						16.1						14.5						15.9
Direct new business									$	177.2								151.2						168.3						173.3						155.6
Renewal pure price increases									4.6			%						4.7						4.9						5.1						5.2
Note: Amounts may not foot due to rounding.

Page 5

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD COMMERCIAL LINES

STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA

(Unaudited)

									Quarter ended
									Mar. 31,									Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ in millions)									2022									2021						2021						2021						2021
Underwriting results
Net premiums written									$	737.6								597.7						652.6						677.1						665.6
Change in net premiums written, from comparable prior year period									11			%						8						13						16						28
Net premiums earned									$	661.5								635.4						619.6						599.8						589.1
Losses and loss expenses incurred									399.5									378.6						393.5						329.8						324.9
Net underwriting expenses incurred									218.0									211.3						207.6						200.8						193.6
Dividends to policyholders									1.6									1.7						1.0						1.2						1.2
GAAP underwriting income									$	42.4								43.7						17.4						67.9						69.5
Net catastrophe losses									$	14.9								26.8						50.0						11.3						16.1
(Favorable) prior year casualty reserve development									(20.0)									(15.0)						(14.0)						(15.0)						(30.0)
Underwriting ratios
Loss and loss expense ratio									60.4			%						59.5						63.5						55.0						55.1
Underwriting expense ratio									33.0									33.3						33.5						33.5						32.9
Dividends to policyholders ratio									0.2									0.3						0.2						0.2						0.2
						Combined ratio			93.6			%						93.1						97.2						88.7						88.2
Net catastrophe losses									2.3			pts						4.2						8.1						1.9						2.7
(Favorable) prior year casualty reserve development									(3.0)									(2.4)						(2.3)						(2.5)						(5.1)
						Combined ratio before net catastrophe losses			91.3			%						88.9						89.1						86.8						85.5
						Combined ratio before net catastrophe losses and prior year casualty development			94.3									91.3						91.4						89.3						90.6
Other Statistics
Non-catastrophe property loss and loss expenses									$	115.7								92.3						90.1						74.6						83.6
Non-catastrophe property loss and loss expenses									17.5			pts						14.5						14.5						12.4						14.2
Direct new business									$	128.4								104.4						122.3						128.7						114.5
Renewal pure price increases									4.8			%						5.0						5.3						5.5						5.5
Retention									87			%						86						86						85						86
Note: Amounts may not foot due to rounding.

Page 6

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD COMMERCIAL LINES

GAAP LINE OF BUSINESS RESULTS

(Unaudited)

						Quarter ended March 31, 2022																											Quarter ended March 31, 2021
						Commercial			Workers			General			Commercial																		Commercial			Workers			General			Commercial
($ in millions)						Property			Compensation			Liability			Auto			BOP			Bonds			Other			Total						Property			Compensation			Liability			Auto			BOP			Bonds			Other			Total
Net premiums written						$	130.9		97.5			244.1			212.6			33.1			12.6			6.8			737.6						113.4			92.3			222.1			190.6			31.4			9.5			6.3			665.6
Net premiums earned						120.1			84.7			216.3			193.8			30.0			10.4			6.2			661.5						102.8			78.2			193.5			171.9			28.6			8.6			5.5			589.1
Loss and loss expense ratio						63.4		%	54.1			53.5			74.8			63.3			(20.6)			—			60.4						56.7			46.2			47.6			68.0			65.4			30.2			0.2			55.1
Underwriting expense ratio						36.4			25.8			33.1			30.7			38.0			62.0			56.0			33.0						36.7			26.3			33.5			30.3			36.6			60.3			51.1			32.9
Dividend ratio						0.1			1.3			0.1			0.1			—			—			—			0.2						—			1.4			—			0.1			—			—			(0.1)			0.2
Combined ratio						99.9		%	81.2			86.7			105.6			101.3			41.4			56.0			93.6						93.4			73.9			81.1			98.4			102.0			90.5			51.2			88.2
Underwriting income (loss)						$	0.2		15.9			28.8			(10.9)			(0.4)			6.1			2.7			42.4						6.8			20.4			36.6			2.8			(0.6)			0.8			2.7			69.5
Note: Amounts may not foot due to rounding.

Page 7

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD PERSONAL LINES

STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA

(Unaudited)

									Quarter ended
									Mar. 31,									Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ in millions)									2022									2021						2021						2021						2021
Underwriting results
Net premiums written									$	65.1								70.4						78.2						78.6						65.1
Change in net premiums written, from comparable prior year period									—			%						1						(2)						—						(4)
Net premiums earned									$	72.6								73.1						73.4						73.3						73.8
Losses and loss expenses incurred									48.5									51.8						65.1						48.0						47.2
Net underwriting expenses incurred									17.6									19.5						19.4						19.7						19.0
GAAP underwriting income (loss)									$	6.5								1.8						(11.1)						5.6						7.7
Net catastrophe losses									$	4.3								7.3						19.5						5.0						5.6
Prior year casualty reserve development									—									—						—						—						—
Underwriting ratios
Loss and loss expense ratio									66.8			%						71.0						88.8						65.5						63.9
Underwriting expense ratio									24.2									26.6						26.4						26.8						25.7
						Combined ratio			91.0			%						97.6						115.2						92.3						89.6
Net catastrophe losses									6.0			pts						9.9						26.7						6.8						7.6
Prior year casualty reserve development									—									—						—						—						—
						Combined ratio before net catastrophe losses			85.0			%						87.7						88.5						85.5						82.0
						Combined ratio before net catastrophe losses and prior year casualty development			85.0									87.7						88.5						85.5						82.0
Other Statistics
Non-catastrophe property loss and loss expenses									$	25.6								26.1						28.7						24.9						23.1
Non-catastrophe property loss and loss expenses									35.2			pts						35.7						39.1						34.0						31.3
Direct new business									$	9.6								9.9						10.2						10.9						9.8
Renewal pure price increases									0.6			%						1.1						1.2						1.1						0.8
Retention									84			%						83						84						84						83
Note: Amounts may not foot due to rounding.

Page 8

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD PERSONAL LINES

GAAP LINE OF BUSINESS RESULTS

(Unaudited)

			Quarter ended March 31, 2022																								Quarter ended March 31, 2021
			Personal																								Personal
($ in millions)			Auto						Homeowners						Other						Total						Auto						Homeowners						Other						Total
Net premiums written			$	37.4					26.1						1.6						65.1						37.9						25.5						1.6						65.1
Net premiums earned			39.7						31.2						1.7						72.6						41.4						30.6						1.8						73.8
Loss and loss expense ratio			74.8		%				58.9						26.7						66.8						63.9						65.4						38.2						63.9
Underwriting expense ratio			29.6						29.5						(194.0)						24.2						30.5						29.6						(148.6)						25.7
Combined ratio			104.4		%				88.4						(167.3)						91.0						94.4						95.0						(110.4)						89.6
Underwriting income (loss)			$	(1.7)					3.6						4.6						6.5						2.3						1.5						3.9						7.7
Note: Amounts may not foot due to rounding.

Page 9

Selective Insurance Group, Inc. & Consolidated Subsidiaries

EXCESS AND SURPLUS LINES

STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA

(Unaudited)

									Quarter ended
									Mar. 31,									Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ in millions)									2022									2021						2021						2021						2021
Underwriting results
Net premiums written									$	87.1								77.3						82.1						77.5						67.5
Change in net premiums written, from comparable prior year period									29			%						27						32						23						10
Net premiums earned									$	78.2								76.0						74.3						67.5						62.0
Losses and loss expenses incurred									46.2									43.3						46.6						43.8						41.4
Net underwriting expenses incurred									25.0									24.2						23.0						21.3						20.1
GAAP underwriting income (loss)									$	6.9								8.5						4.7						2.3						0.5
Net catastrophe losses									$	1.3								1.2						6.8						6.4						8.3
(Favorable) prior year casualty reserve development									—									—						—						(2.0)						(5.0)
Underwriting ratios
Loss and loss expense ratio									59.1			%						56.9						62.8						65.0						66.8
Underwriting expense ratio									32.0									31.9						30.9						31.6						32.4
						Combined ratio			91.1			%						88.8						93.7						96.6						99.2
Net catastrophe losses									1.7			pts						1.6						9.2						9.5						13.3
(Favorable) prior year casualty reserve development									—									—						—						(3.0)						(8.1)
						Combined ratio before net catastrophe losses			89.4			%						87.2						84.5						87.1						85.9
						Combined ratio before net catastrophe losses and prior year casualty development			89.4									87.2						84.5						90.1						94.0
Other Statistics
Non-catastrophe property loss and loss expenses									$	9.1								6.8						4.8						7.8						8.9
Non-catastrophe property loss and loss expenses									11.6			pts						8.9						6.5						11.5						14.3
Direct new business									$	39.2								37.0						35.7						33.7						31.3
Renewal pure price increases									7.7			%						5.9						5.6						6.9						7.3
Note: Amounts may not foot due to rounding.

Page 10

Selective Insurance Group, Inc. & Consolidated Subsidiaries

EXCESS & SURPLUS LINES

GAAP LINE OF BUSINESS RESULTS

(Unaudited)

			Quarter ended March 31, 2022																		Quarter ended March 31, 2021
($ in millions)			Casualty						Property						Total						Casualty						Property						Total
Net premiums written			$	61.9					25.2						87.1						48.1						19.4						67.5
Net premiums earned			54.6						23.5						78.2						43.8						18.2						62.0
Loss and loss expense ratio			65.6		%				44.1						59.1						55.3						94.4						66.8
Underwriting expense ratio			32.7						30.4						32.0						33.1						30.8						32.4
Combined ratio			98.3		%				74.5						91.1						88.4						125.2						99.2
Underwriting income (loss)			$	0.9					6.0						6.9						5.1						(4.6)						0.5
Note: Amounts may not foot due to rounding.

Page 11

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED INVESTMENT INCOME

(Unaudited)

									Quarter ended
									Mar. 31,									Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ in millions)									2022									2021						2021						2021						2021
Net investment income
Fixed income securities
						Taxable			$	47.0								45.6						44.5						45.3						45.3
						Tax-exempt			6.9									7.0						7.2						7.3						7.6
Total fixed income securities									53.9									52.6						51.7						52.6						52.8
Commercial mortgage loans									1.0									0.9						0.7						0.7						0.5
Equity securities									2.4									7.5						3.0						3.0						2.5
Other investments									19.3									24.9						42.9						32.9						17.4
Short-term investments									0.1									0.1						0.1						0.1						—
Investment income									76.7									85.9						98.3						89.2						73.3
Investment expenses									(4.1)									(5.8)						(5.2)						(5.5)						(3.6)
Investment tax expense									(14.1)									(15.6)						(18.3)						(16.3)						(13.4)
Total net investment income, after-tax									$	58.5								64.5						74.7						67.4						56.3
Net realized and unrealized investment (losses) gains, pre-tax									$	(40.4)								2.2						0.2						10.1						5.1
Change in unrealized (losses) gains recognized in other comprehensive income, pre-tax									$	(310.4)								(54.1)						(37.6)						43.3						(109.0)
Average investment yields
						Fixed income investments, pre-tax			3.2			%						3.1						3.1						3.2						3.3
						Fixed income investments, after-tax			2.6									2.5						2.5						2.6						2.6
						Total portfolio, pre-tax			3.7			%						4.0						4.8						4.4						3.7
						Total portfolio, after-tax			3.0									3.2						3.8						3.5						3.0
Effective tax rate on net investment income									19.4			%						19.5						19.7						19.5						19.2
New money purchase rates for fixed income investments, pre-tax									3.3									2.7						2.2						2.4						2.1
New money purchase rates for fixed income investments, after-tax									2.6									2.1						1.8						1.8						1.7
Effective duration of fixed income investments including short-term (in years)									4.1									3.9						4.0						3.9						3.9
Note: Amounts may not foot due to rounding.

Page 12

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED COMPOSITION OF INVESTED ASSETS

(Unaudited)

									Mar. 31,												Dec. 31,									Sept. 30,									June 30,									Mar. 31,
									2022												2021									2021									2021									2021
($ in millions)									Amount			Percent									Amount			Percent						Amount			Percent						Amount			Percent						Amount			Percent
Fixed income securities, at fair value									$	6,631.4		85			%						6,739.4			84						6,703.1			85						6,654.3			86						6,546.8			87
Commercial mortgage loans, at fair value									113.1			1									97.6			1						86.0			1						73.6			1						62.2			1
Total fixed income investments									6,744.6			87									6,837.0			85						6,789.1			86						6,727.9			87						6,609.1			88
Short-term investments									256.7			3									447.9			6						355.9			5						351.2			5						337.8			4
Total fixed income and short-term investments									7,001.3			90									7,284.9			91						7,145.0			91						7,079.1			91						6,946.9			92
Equity securities, at fair value									344.6			4									335.5			4						324.2			4						348.3			4						324.3			4
Other investments									425.7			5									409.0			5						392.8			5						330.5			4						290.2			4
Total investments									$	7,771.5		100			%						8,029.5			100						7,862.0			100						7,757.9			100						7,561.3			100
Fixed income investments, at carry value
U.S. government obligations									$	127.1		2			%						130.5			2						131.1			2						136.2			2						136.3			2
Foreign government obligations									16.7			—									15.9			—						15.1			—						15.3			—						19.7			—
Obligations of state and political subdivisions									1,128.9			17									1,192.7			17						1,169.4			17						1,204.4			18						1,218.6			19
Corporate securities									2,417.3			36									2,598.9			38						2,566.4			38						2,489.5			37						2,365.6			36
Collateralized loan obligations and other asset-backed securities									1,417.2			21									1,350.8			20						1,339.8			20						1,282.2			19						1,202.1			18
Residential mortgage-backed securities									878.0			13									776.2			11						816.8			12						854.5			13						947.5			14
Commercial mortgage-backed securities									646.7			10									673.7			10						663.8			10						671.4			10						656.2			10
Commercial mortgage loans									115.9			2									95.8			1						84.0			1						72.0			1						61.1			1
Total fixed income investments									$	6,747.8		100			%						6,834.6			100						6,786.4			100						6,725.5			100						6,607.1			100
Expected maturities of fixed income investments at carry value
Due in one year or less									$	405.0		6			%						502.0			7						515.6			8						538.2			8						454.8			7
Due after one year through five years									2,983.8			44									3,238.3			47						3,436.1			51						3,415.8			51						3,444.4			52
Due after five years through 10 years									2,475.0			37									2,360.9			35						2,137.1			31						2,139.3			32						2,071.6			31
Due after 10 years									884.0			13									733.4			11						697.6			10						632.2			9						636.2			10
Total fixed income investments									$	6,747.8		100			%						6,834.6			100						6,786.4			100						6,725.5			100						6,607.1			100
Weighted average credit quality of fixed income and short-term investments
Investment grade credit quality									$	6,725.8		96			%						7,023.9			96						6,890.7			96						6,803.5			96						6,687.7			96
Non-investment grade credit quality									275.4			4									261.0			4						254.3			4						275.6			4						259.1			4
Total fixed income and short-term investments, at fair value									$	7,001.3		100			%						7,284.9			100						7,145.0			100						7,079.1			100						6,946.9			100
Weighted average credit quality of fixed income and short-term investments									A+												A+									A+									A+									AA-
Alternative investments									March 31, 2022
																								Current
									Number of			Original									Remaining			Market
Strategy									Funds			Commitment									Commitment			Value
Private equity									55			$	342.4								124.8			281.4
Private credit									16			160.9									92.3			60.5
Real assets									8			47.5									20.9			26.2
Total									79			$	550.9								238.0			368.0
Note: Amounts may not foot due to rounding.

Page 13

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CREDIT QUALITY OF INVESTED ASSETS

(Unaudited)

At March 31, 2022																																													Credit Rating
($ in millions)									Amortized Cost						Fair Value						% of Invested Assets						Yield to Worst						Effective Duration in Years						Average Life in Years						AAA						AA						A						BBB						Non-Investment Grade						Not Rated
Fixed income investments:
			U.S. government obligations						132						127						1.6						3.2						7.0						13.6						124						3						—						—						—						—
			Foreign government obligations						17						17						0.2						3.3						6.1						7.7						—						2						12						2						—						—
			State and municipal obligations						1,126						1,129						14.5						2.4						4.3						4.6						243						500						339						47						—						—
			Corporate securities						2,475						2,417						31.1						3.7						5.1						7.0						8						189						984						1,058						176						1
			Mortgage-backed securities:
						Residential mortgage-backed securities ("RMBS"):
						Agency RMBS			713						700						9.0						3.2						5.3						7.3						700						—						—						—						—						—
						Non-agency RMBS			191						178						2.3						3.3						3.0						6.4						89						22						60						—						7						—
						Total RMBS			904						878						11.3						3.2						4.8						7.1						789						22						60						—						7						—
						Commercial mortgage-backed securities			653						647						8.3						3.1						3.6						4.8						550						41						48						7						—						—
						Total mortgage-backed securities			1,557						1,525						19.6						3.2						4.3						6.1						1,339						63						108						7						7						—
			Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS"):
						Auto			23						23						0.3						5.3						2.1						2.1						23						—						—						—						—						—
						Aircraft			66						60						0.8						7.8						3.3						3.9						—						1						32						21						6						—
						CLOs			886						879						11.3						3.6						1.8						5.6						430						299						46						27						61						17
						Credit cards			8						8						0.1						2.8						0.6						0.7						8						—						1						—						—						—
						Other ABS			460						447						5.7						3.8						4.3						5.8						73						56						276						35						4						4
						Total CLOs and ABS			1,444						1,417						18.2						3.8						2.6						5.5						533						356						354						83						71						20
Total securitized assets									3,001						2,942						37.9						3.5						3.5						5.8						1,872						419						462						90						78						20
						Commercial mortgage loans			116						113						1.5						4.0						4.0						5.4						—						12						40						61						—						—
Total fixed income investments									6,867						6,745						86.8						3.4						4.3						6.2						2,247						1,126						1,838						1,259						254						21
						Short-term investments			257						257						3.3						0.5						0.0						0.0						249						2						5						—						—						—
						Total fixed income and short-term investments			7,124						7,001						90.1						3.3						4.1						6.0						2,496						1,128						1,843						1,259						254						21
Total fixed income securities and short-term investments by credit rating percentage																																													35.6		%				16.1		%				26.3		%				18.0		%				3.6		%				0.3		%
Equity securities:
			Common stock(1)						318						343						4.4						—						—						—						—						—						—						—						—						343
			Preferred stock						2						2						—						—						—						—						—						—						—						2						—						—
						Total equity securities			320						345						4.4						—						—						—						—						—						—						2						—						343
Other investments:
			Alternative investments
						Private equity			281						281						3.7						—						—						—						—						—						—						—						—						281
						Private credit			60						60						0.7						—						—						—						—						—						—						—						—						60
						Real assets			26						26						0.3						—						—						—						—						—						—						—						—						26
						Total alternative investments			368						368						4.7						—						—						—						—						—						—						—						—						368
			Other investments						58						58						0.7						—						—						—						—						—						—						—						—						58
			Total other investments						426						426						5.5						—						—						—						—						—						—						—						—						426
Total invested assets									$	7,869					$	7,772					100.0		%				—						—						—						$2,496						$1,128						$1,843						$1,261						$254						$790
(1) Includes investments in exchange traded funds, mutual funds, business development corporations, and real estate investment trusts.
Note: Amounts may not foot due to rounding.

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Selective Insurance Group, Inc. & Consolidated Subsidiaries

RECONCILIATION OF NET INCOME AVAILABLE TO COMMON STOCKHOLDERS TO NON-GAAP OPERATING INCOME AND CERTAIN OTHER NON-GAAP MEASURES

(Unaudited)

			Quarter ended
			Mar. 31,									Dec. 31,						Sept. 30,						June 30,						Mar. 31,
($ in millions, except per share data)			2022									2021						2021						2021						2021
Reconciliation of net income available to common stockholders to non-GAAP operating income
Net income available to common stockholders			$	54.0								96.7						71.4						119.6						106.8
Net realized and unrealized investment losses (gains) included in net income, before tax			40.4									(2.2)						(0.2)						(10.1)						(5.1)
Tax on reconciling items			(8.5)									0.5						—						2.1						1.1
Non-GAAP operating income			$	85.9								94.9						71.3						111.6						102.8
Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share
Net income available to common stockholders per diluted common share			$	0.89								1.59						1.18						1.98						1.77
Net realized and unrealized investment losses (gains) included in net income, before tax			0.66									(0.04)						—						(0.17)						(0.08)
Tax on reconciling items			(0.14)									0.01						—						0.04						0.01
Non-GAAP operating income per diluted common share			$	1.41								1.56						1.18						1.85						1.70
Reconciliation of annualized ROE to annualized non-GAAP operating ROE
Annualized ROE			8.1			%						14.0						10.6						18.3						16.8
Net realized and unrealized investment losses (gains) included in net income, before tax			6.0									(0.3)						—						(1.5)						(0.8)
Tax on reconciling items			(1.3)		%							0.1						—						0.3						0.2
Annualized non-GAAP operating ROE			12.8			%						13.8						10.6						17.1						16.2
Reconciliation of book value per common share to adjusted book value per common share
Book value per common share			$	42.73								46.24						45.27						44.78						42.38
Total unrealized investment losses (gains) included in accumulated other comprehensive (loss) income, before tax			1.35									(3.80)						(4.71)						(5.34)						(4.62)
Tax on reconciling items			(0.28)									0.79						1.00						1.12						0.97
Adjusted book value per common share			$	43.80								43.23						41.56						40.56						38.73
Non-GAAP operating income, non-GAAP operating income per diluted common share, and non-GAAP operating return on common equity are measures comparable to net income available to common stockholders, net income available to common stockholders per diluted common share, and return on common equity, respectively, but excludes after-tax net realized and unrealized gains and losses on investments included in net income. Adjusted book value per common share is a measure comparable to book value per common share, but excludes total after-tax unrealized gains and losses on investments included in accumulated other comprehensive (loss) income. They are used as important financial measures by management, analysts, and investors, because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized gains and losses on investments could distort the analysis of trends. These operating measurements are not intended as a substitute for net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share to non-GAAP operating income, non-GAAP operating income per diluted common share, non-GAAP operating return on common equity, and adjusted book value per common share, respectively, are provided in the tables above.
																																	Note: Amounts may not foot due to rounding.

Page 15

Selective Insurance Group, Inc. & Consolidated Subsidiaries

RATINGS AND CONTACT INFORMATION

Address:

As of March 31, 2022

40 Wantage Avenue

AM Best

Standard & Poor's

Moody's

Fitch

Branchville, NJ 07890

Financial Strength Ratings:

A+

A

A2

A+

Preferred Stock Rating:

n/a

BB+

Ba1

BBB-

Corporate Website:

Long-Term Debt Credit Rating:

a-

BBB

Baa2

BBB+

www.Selective.com

Investor Contact:

REGISTRAR AND TRANSFER AGENT

Rohan Pai

EQ Shareowner Services

Senior Vice President

P.O. Box 64854

Investor Relations & Treasurer

St. Paul, MN 55164

Phone: 973-948-1364

866-877-6351

Rohan.Pai@Selective.com

Media Contact:

Jamie M. Beal

Vice President

Director of Communications

Phone: 973-948-1234

Jamie.Beal@Selective.com

Page 16