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Retirement Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
(a) Selective Insurance Retirement Savings Plan (“Retirement Savings Plan”) and Selective Insurance Company of America Deferred Compensation Plan ("Deferred Compensation Plan")

SICA offers a voluntary defined contribution 401(k) plan that is available to most of our employees and is a tax-qualified retirement plan subject to ERISA.  In addition, SICA offers a Deferred Compensation Plan to a group of management or highly compensated employees as a method of recognizing and retaining such employees. Expenses recorded for these plans were $21.5 million in 2023, $19.8 million in 2022, and $19.2 million in 2021.

(b) Retirement Income Plan
SICA maintains a defined benefit pension plan, the Retirement Income Plan for Selective Insurance Company of America (the "Pension Plan"). This qualified, noncontributory plan is closed to new entrants, and existing participants ceased accruing benefits after March 31, 2016.
The following tables provide details on the Pension Plan for 2023 and 2022:

December 31,Pension Plan
($ in thousands)20232022
Change in Benefit Obligation:  
Benefit obligation, beginning of year$311,945 407,758 
Interest cost15,465 9,944 
Actuarial gains12,890 (91,653)
Benefits paid(14,824)(14,104)
Benefit obligation, end of year$325,476 311,945 
Change in Fair Value of Assets:  
Fair value of assets, beginning of year$342,974 450,305 
Actual return on plan assets, net of expenses16,982 (93,227)
Benefits paid(14,824)(14,104)
Fair value of assets, end of year$345,132 342,974 
Funded status$19,656 31,029 
Amounts Recognized in the Consolidated Balance Sheet:  
Net pension assets, end of year$19,656 31,029 
Amounts Recognized in AOCI:  
Net actuarial loss$116,558 100,561 
Other Information as of December 31:  
Accumulated benefit obligation$325,476 311,945 
Weighted-Average Liability Assumptions as of December 31:  
Discount rate5.02 %5.21 

When determining the most appropriate discount rate to be used in the valuation at December 31, 2023, we consider, among other factors, our expected payout patterns of the Pension Plan's obligations as well as our investment strategy. We ultimately select the rate that we believe best represents our estimate of the inherent interest rate at which our pension benefits can be effectively settled. The approach we utilize discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. Our discount rate decreased 19 basis points, to 5.02% as of December 31, 2023, from 5.21% as of December 31, 2022, which drove the increase in the benefit obligation for the period.

 Pension Plan
($ in thousands)202320222021
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income:   
Net Periodic Benefit Cost (Benefit):   
Interest cost$15,465 9,944 8,593 
Expected return on plan assets(23,091)(22,147)(22,976)
Amortization of unrecognized actuarial loss3,001 1,465 2,501 
Total net periodic pension cost (benefit)1
$(4,625)(10,738)(11,882)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:   
Net actuarial loss (gain)$18,998 23,722 (20,609)
Reversal of amortization of net actuarial loss(3,001)(1,465)(2,501)
Total recognized in other comprehensive income$15,997 22,257 (23,110)
Total recognized in net periodic benefit cost and other comprehensive income$11,372 11,519 (34,992)
1The 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
202320222021
Weighted-Average Expense Assumptions for the years ended December 31:   
Discount rate5.21 %2.98 %2.68 %
Interest rate5.09 %2.48 %2.06 %
Expected return on plan assets6.90 5.00 5.40 

Pension Plan Assets
Assets of the Pension Plan are invested to adequately support the liability associated with the Pension Plan's defined benefit obligation. Our return objective is to exceed the returns of the plan's policy benchmark, which is the return the plan would have earned if the assets were invested according to the target asset class weightings and earned index returns shown below. In 2024, we will continue to phase in adjustments to the asset allocation to steadily increase the asset-liability interest rate hedge ratio, provided certain improved funding targets are achieved. Over time, the target and actual asset allocations may change based on the funded status of the Pension Plan and market return expectations.
     
The Pension Plan’s target ranges, as well as the actual weighted average asset allocation by strategy, at December 31 were as follows: 
 20232022
Target PercentageActual PercentageActual Percentage
MinimumMaximum
Return seeking assets1
28 %58 %52 %71 %
Liability hedging assets42 %72 %45 %27 %
Short-term investments--3 %2 %
Total100 %100 %
1Includes limited partnerships.

The use of derivative instruments is permitted under certain circumstances for the Pension Plan portfolio, but may not be used for unrelated speculative purposes or to create exposures that are not permitted in the Pension Plan's investment guidelines. We currently invest in a U.S. Treasury overlay derivative strategy, within the funds in our liability hedging assets, to manage the interest rate duration mismatch between the assets and liabilities of the Pension Plan to help insulate the funded status of the plan. Considering the impact of this derivative overlay, the liability hedging assets provide for an approximate 90% hedge against the projected benefit obligation.

The Pension Plan had no investments in the Parent’s common stock as of December 31, 2023, or 2022. For information regarding investments in funds of our related parties, refer to Note 18. "Related Party Transactions" below.

The techniques used to determine the fair value of the Pension Plan's invested assets that appear on the following page are as follows:

•The investments in the equities and liability hedging funds include collective investment funds and fund of funds that utilize a market approach wherein the published prices in the active market for identical assets are used. These investments are traded at their net asset value per share. These investments are classified as Level 1 in the fair value hierarchy.
•The investments in private limited partnerships are valued utilizing net asset value as a practical expedient for fair value. These investments are not classified in the fair value hierarchy.
•Short-term investments are recorded at fair value. Given that these investments are listed on active exchanges, coupled with their liquid nature, these investments are classified as Level 1 in the fair value hierarchy.
•The deposit administration contract is recorded at cost, which approximates fair value. Given the liquid nature of the underlying investments in overnight cash deposits and other short-term duration products, we have determined that a correlation exists between the deposit administration contract and other short-term investments, such as money market funds. As such, this investment is classified as Level 2 in the fair value hierarchy.

For discussion regarding the levels within the fair value hierarchy, see Note 2. "Summary of Significant Accounting Policies." In addition, refer to Note 5. "Investments" for discussion regarding the private equity, venture capital, and real asset limited partnership investment strategies as these investments are part of the Pension Plan's investment portfolio.
The following tables provide quantitative disclosures of the Pension Plan’s invested assets that are measured at fair value on a recurring basis:

December 31, 2023 Fair Value Measurements at 12/31/23 Using
($ in thousands)
Assets Measured at Fair Value At 12/31/2023
Quoted Prices in Active Markets for Identical Assets/ Liabilities
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Description    
Return seeking assets:
Equities:
Global equity$39,038 39,038 — — 
Diversified credit42,630 42,630 — — 
Real assets59,603 59,603 — — 
Liquid diversifiers1
40,095 40,095 — — 
Total equities181,366 181,366 — — 
Limited partnerships (at net asset value)2:
Real assets27 — — — 
Private equity311 — — — 
Total limited partnerships338 — — — 
Total return seeking assets181,704 181,366 — — 
Liability hedging assets:
Fixed income79,632 79,632 — — 
U.S. Treasury overlay75,198 75,198 — — 
Total liability hedging assets154,830 154,830 — — 
Cash and short-term investments:
Short-term investments9,015 9,015 — — 
   Deposit administration contracts2,391 — 2,391 — 
   Total cash and short-term investments 11,406 9,015 2,391 — 
   Total invested assets$347,940 345,211 2,391 — 
December 31, 2022 Fair Value Measurements at 12/31/22 Using
($ in thousands)
Assets Measured at Fair Value At 12/31/2022
Quoted Prices in Active Markets for Identical Assets/ Liabilities
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Description    
Return seeking assets:
Equities:    
Global equity$63,852 63,852 — — 
Diversified credit58,761 58,761 — — 
Real assets95,396 95,396 — — 
Liquid diversifiers1
23,978 23,978 — — 
Total equities241,987 241,987 — — 
Limited partnerships (at net asset value)2:
 
Real assets27 — — — 
Private equity331 — — — 
Total limited partnerships358 — — — 
   Total return seeking assets242,345 241,987 — — 
Liability hedging assets:
Fixed income35,378 35,378 — — 
U.S. Treasury overlay56,255 56,255 — — 
Total liability hedging assets91,633 91,633 — — 
Cash and short-term investments:  
Short-term investments5,108 5,108 — — 
   Deposit administration contracts2,740 — 2,740 — 
   Total cash and short-term investments 7,848 5,108 2,740 — 
   Total invested assets$341,826 338,728 2,740 — 
1 Liquid diversifiers are investments that unbundle return drivers from hedge funds, providing investors access to liquid, diversifying returns.
2These investments were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total Pension Plan invested assets.

Contributions
We presently do not anticipate contributing to the Pension Plan in 2024, as we have no minimum required contribution amounts.
 
Benefit Payments
($ in thousands)Pension Plan
Benefits Expected to be Paid in Future 
Fiscal Years: 
2024$17,750 
202517,854 
202618,930 
202719,922 
202820,846 
2029-2033113,137