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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Selective Insurance Group Inc | NASDAQ:SIGI | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
1.78 | 1.85% | 98.19 | 95.89 | 100.58 | 99.02 | 96.93 | 96.99 | 368,122 | 23:20:54 |
New Jersey
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22-2168890
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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40 Wantage Avenue
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Branchville, New Jersey
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07890
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(Address of Principal Executive Offices)
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(Zip Code)
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(973) 948-3000
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(Registrant’s Telephone Number, Including Area Code)
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(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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SELECTIVE INSURANCE GROUP, INC.
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Table of Contents
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Page No.
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PART I. FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS.
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SELECTIVE INSURANCE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
|
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Unaudited
|
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|
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($ in thousands, except share amounts)
|
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September 30,
2016 |
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December 31,
2015 |
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ASSETS
|
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Investments:
|
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|
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|
|
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Fixed income securities, held-to-maturity – at carrying value (fair value: $136,094 – 2016; $209,544 – 2015)
|
|
$
|
130,472
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201,354
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Fixed income securities, available-for-sale – at fair value (amortized cost: $4,682,267 – 2016; $4,352,514 – 2015)
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4,832,532
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4,408,203
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Equity securities, available-for-sale – at fair value (cost: $122,981 – 2016; $193,816 – 2015)
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147,304
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207,051
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Short-term investments (at cost which approximates fair value)
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169,604
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194,819
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Other investments
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88,512
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77,842
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Total investments (Note 4)
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5,368,424
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5,089,269
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Cash
|
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1,493
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|
898
|
|
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Interest and dividends due or accrued
|
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39,901
|
|
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38,501
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|
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Premiums receivable, net of allowance for uncollectible accounts of: $5,907 – 2016; $4,422 – 2015
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711,589
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615,164
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Reinsurance recoverables, net of allowance for uncollectible accounts of: $5,500 – 2016; $5,700 – 2015
|
|
640,012
|
|
|
561,968
|
|
|
Prepaid reinsurance premiums
|
|
151,981
|
|
|
140,889
|
|
|
Deferred federal income tax
|
|
41,656
|
|
|
92,696
|
|
|
Property and equipment – at cost, net of accumulated depreciation and amortization of:
$198,171 – 2016; $188,548 – 2015 |
|
69,812
|
|
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65,701
|
|
|
Deferred policy acquisition costs
|
|
235,934
|
|
|
213,159
|
|
|
Goodwill
|
|
7,849
|
|
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7,849
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|
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Other assets
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94,582
|
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78,339
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Total assets
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$
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7,363,233
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6,904,433
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LIABILITIES AND STOCKHOLDERS’ EQUITY
|
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Liabilities:
|
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Reserve for loss and loss expenses
|
|
$
|
3,686,586
|
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3,517,728
|
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Unearned premiums
|
|
1,306,255
|
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|
1,169,710
|
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Short-term debt
|
|
45,000
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60,000
|
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Long-term debt
|
|
378,551
|
|
|
328,192
|
|
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Current federal income tax
|
|
6,509
|
|
|
7,442
|
|
|
Accrued salaries and benefits
|
|
103,583
|
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167,336
|
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Other liabilities
|
|
261,845
|
|
|
255,984
|
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|
Total liabilities
|
|
$
|
5,788,329
|
|
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5,506,392
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Stockholders’ Equity:
|
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Preferred stock of $0 par value per share:
|
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$
|
—
|
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|
—
|
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Authorized shares 5,000,000; no shares issued or outstanding
|
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Common stock of $2 par value per share:
|
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|
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Authorized shares 360,000,000
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Issued: 101,505,201 – 2016; 100,861,372 – 2015
|
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203,011
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201,723
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Additional paid-in capital
|
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342,846
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326,656
|
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Retained earnings
|
|
1,538,928
|
|
|
1,446,192
|
|
|
Accumulated other comprehensive income (loss) (Note 10)
|
|
62,209
|
|
|
(9,425
|
)
|
|
Treasury stock – at cost
(shares: 43,653,034 – 2016; 43,500,642 – 2015) |
|
(572,090
|
)
|
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(567,105
|
)
|
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Total stockholders’ equity
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|
$
|
1,574,904
|
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1,398,041
|
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Commitments and contingencies
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Total liabilities and stockholders’ equity
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$
|
7,363,233
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6,904,433
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SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
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Quarter ended September 30,
|
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Nine Months ended September 30,
|
|||||||||
($ in thousands, except per share amounts)
|
|
2016
|
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2015
|
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2016
|
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2015
|
|||||
Revenues:
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|
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Net premiums earned
|
|
$
|
542,429
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507,390
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1,596,819
|
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1,473,822
|
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Net investment income earned
|
|
33,375
|
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32,061
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95,326
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91,208
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Net realized gains:
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|
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Net realized investment gains
|
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4,030
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1,590
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7,233
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23,598
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Other-than-temporary impairments
|
|
(342
|
)
|
|
(1,282
|
)
|
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(4,494
|
)
|
|
(7,827
|
)
|
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Other-than-temporary impairments on fixed income securities recognized in other comprehensive income
|
|
—
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—
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10
|
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—
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Total net realized gains
|
|
3,688
|
|
|
308
|
|
|
2,749
|
|
|
15,771
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|
Other income
|
|
2,199
|
|
|
698
|
|
|
7,018
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|
|
5,521
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|
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Total revenues
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581,691
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|
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540,457
|
|
|
1,701,912
|
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|
1,586,322
|
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|
|
|
|
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|
|||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|||
Loss and loss expense incurred
|
|
316,258
|
|
|
285,161
|
|
|
911,881
|
|
|
861,721
|
|
|
Policy acquisition costs
|
|
193,835
|
|
|
174,802
|
|
|
567,793
|
|
|
509,295
|
|
|
Interest expense
|
|
5,714
|
|
|
5,610
|
|
|
16,940
|
|
|
16,826
|
|
|
Other expenses
|
|
10,441
|
|
|
9,045
|
|
|
35,669
|
|
|
29,586
|
|
|
Total expenses
|
|
526,248
|
|
|
474,618
|
|
|
1,532,283
|
|
|
1,417,428
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income before federal income tax
|
|
55,443
|
|
|
65,839
|
|
|
169,629
|
|
|
168,894
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Federal income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|||
Current
|
|
5,625
|
|
|
9,141
|
|
|
38,027
|
|
|
29,128
|
|
|
Deferred
|
|
11,316
|
|
|
9,702
|
|
|
12,467
|
|
|
19,294
|
|
|
Total federal income tax expense
|
|
16,941
|
|
|
18,843
|
|
|
50,494
|
|
|
48,422
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income
|
|
$
|
38,502
|
|
|
46,996
|
|
|
119,135
|
|
|
120,472
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|||
Basic net income
|
|
$
|
0.66
|
|
|
0.82
|
|
|
2.06
|
|
|
2.11
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted net income
|
|
$
|
0.66
|
|
|
0.81
|
|
|
2.03
|
|
|
2.08
|
|
|
|
|
|
|
|
|
|
|
|||||
Dividends to stockholders
|
|
$
|
0.15
|
|
|
0.14
|
|
|
0.45
|
|
|
0.42
|
|
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Net income
|
|
$
|
38,502
|
|
|
46,996
|
|
|
119,135
|
|
|
120,472
|
|
|
|
|
|
|
|
|
|
|
|||||
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|||
Unrealized (losses) gains on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|||
Unrealized holding (losses) gains arising during period
|
|
(8,444
|
)
|
|
5,442
|
|
|
70,473
|
|
|
(18,132
|
)
|
|
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
|
|
|||||
Held-to-maturity securities
|
|
(9
|
)
|
|
(63
|
)
|
|
(68
|
)
|
|
(353
|
)
|
|
Non-credit other-than-temporary impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232
|
|
|
Realized gains on available-for-sale securities
|
|
(2,395
|
)
|
|
(199
|
)
|
|
(1,786
|
)
|
|
(10,906
|
)
|
|
Total unrealized (losses) gains on investment securities
|
|
(10,848
|
)
|
|
5,180
|
|
|
68,613
|
|
|
(29,159
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Defined benefit pension and post-retirement plans:
|
|
|
|
|
|
|
|
|
|
|
|||
Amounts reclassified into net income:
|
|
|
|
|
|
|
|
|
|||||
Net actuarial loss
|
|
1,050
|
|
|
1,110
|
|
|
3,021
|
|
|
3,332
|
|
|
Total defined benefit pension and post-retirement plans
|
|
1,050
|
|
|
1,110
|
|
|
3,021
|
|
|
3,332
|
|
|
Other comprehensive (loss) income
|
|
(9,798
|
)
|
|
6,290
|
|
|
71,634
|
|
|
(25,827
|
)
|
|
Comprehensive income
|
|
$
|
28,704
|
|
|
53,286
|
|
|
190,769
|
|
|
94,645
|
|
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
|
|
Nine Months ended September 30,
|
|||||
($ in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|||
Common stock:
|
|
|
|
|
|
|
|
Beginning of year
|
|
$
|
201,723
|
|
|
199,896
|
|
Dividend reinvestment plan (shares: 29,865 – 2016; 38,947 – 2015)
|
|
60
|
|
|
78
|
|
|
Stock purchase and compensation plans (shares: 613,964 – 2016; 686,984 – 2015)
|
|
1,228
|
|
|
1,374
|
|
|
End of period
|
|
203,011
|
|
|
201,348
|
|
|
|
|
|
|
|
|||
Additional paid-in capital:
|
|
|
|
|
|
|
|
Beginning of year
|
|
326,656
|
|
|
305,385
|
|
|
Dividend reinvestment plan
|
|
1,035
|
|
|
1,014
|
|
|
Stock purchase and compensation plans
|
|
15,155
|
|
|
14,588
|
|
|
End of period
|
|
342,846
|
|
|
320,987
|
|
|
|
|
|
|
|
|||
Retained earnings:
|
|
|
|
|
|
|
|
Beginning of year
|
|
1,446,192
|
|
|
1,313,440
|
|
|
Net income
|
|
119,135
|
|
|
120,472
|
|
|
Dividends to stockholders ($0.45 per share – 2016; $0.42 per share – 2015)
|
|
(26,399
|
)
|
|
(24,376
|
)
|
|
End of period
|
|
1,538,928
|
|
|
1,409,536
|
|
|
|
|
|
|
|
|||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
Beginning of year
|
|
(9,425
|
)
|
|
19,788
|
|
|
Other comprehensive income (loss)
|
|
71,634
|
|
|
(25,827
|
)
|
|
End of period
|
|
62,209
|
|
|
(6,039
|
)
|
|
|
|
|
|
|
|||
Treasury stock:
|
|
|
|
|
|
|
|
Beginning of year
|
|
(567,105
|
)
|
|
(562,923
|
)
|
|
Acquisition of treasury stock (shares: 152,392 – 2016; 139,031 – 2015)
|
|
(4,985
|
)
|
|
(3,887
|
)
|
|
End of period
|
|
(572,090
|
)
|
|
(566,810
|
)
|
|
Total stockholders’ equity
|
|
$
|
1,574,904
|
|
|
1,359,022
|
|
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
Nine Months ended September 30,
|
|||||
($ in thousands)
|
|
2016
|
|
2015
|
|||
Operating Activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
119,135
|
|
|
120,472
|
|
|
|
|
|
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
45,563
|
|
|
43,868
|
|
|
Stock-based compensation expense
|
|
8,950
|
|
|
7,626
|
|
|
Undistributed losses of equity method investments
|
|
49
|
|
|
781
|
|
|
Net realized gains
|
|
(2,749
|
)
|
|
(15,771
|
)
|
|
|
|
|
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Increase in reserve for loss and loss expenses, net of reinsurance recoverables
|
|
90,814
|
|
|
60,065
|
|
|
Increase in unearned premiums, net of prepaid reinsurance
|
|
125,453
|
|
|
121,424
|
|
|
Decrease in net federal income taxes
|
|
11,534
|
|
|
27,980
|
|
|
Increase in premiums receivable
|
|
(96,425
|
)
|
|
(95,188
|
)
|
|
Increase in deferred policy acquisition costs
|
|
(22,775
|
)
|
|
(28,058
|
)
|
|
(Increase) decrease in interest and dividends due or accrued
|
|
(1,356
|
)
|
|
979
|
|
|
Decrease in accrued salaries and benefits
|
|
(63,753
|
)
|
|
(338
|
)
|
|
Increase in other assets
|
|
(16,280
|
)
|
|
(13,888
|
)
|
|
(Decrease) increase in other liabilities
|
|
(20,686
|
)
|
|
29,081
|
|
|
Net adjustments
|
|
58,339
|
|
|
138,561
|
|
|
Net cash provided by operating activities
|
|
177,474
|
|
|
259,033
|
|
|
|
|
|
|
|
|||
Investing Activities
|
|
|
|
|
|
|
|
Purchase of fixed income securities, available-for-sale
|
|
(842,253
|
)
|
|
(731,154
|
)
|
|
Purchase of fixed income securities, held-to-maturity
|
|
(4,235
|
)
|
|
—
|
|
|
Purchase of equity securities, available-for-sale
|
|
(24,747
|
)
|
|
(192,717
|
)
|
|
Purchase of other investments
|
|
(34,994
|
)
|
|
(6,589
|
)
|
|
Purchase of short-term investments
|
|
(1,307,024
|
)
|
|
(1,084,794
|
)
|
|
Sale of fixed income securities, available-for-sale
|
|
33,448
|
|
|
22,323
|
|
|
Sale of short-term investments
|
|
1,332,239
|
|
|
1,090,911
|
|
|
Redemption and maturities of fixed income securities, held-to-maturity
|
|
74,186
|
|
|
79,972
|
|
|
Redemption and maturities of fixed income securities, available-for-sale
|
|
483,877
|
|
|
403,510
|
|
|
Sale of equity securities, available-for-sale
|
|
99,420
|
|
|
148,228
|
|
|
Distributions from other investments
|
|
18,512
|
|
|
22,038
|
|
|
Purchase of property and equipment
|
|
(13,421
|
)
|
|
(11,869
|
)
|
|
Net cash used in investing activities
|
|
(184,992
|
)
|
|
(260,141
|
)
|
|
|
|
|
|
|
|||
Financing Activities
|
|
|
|
|
|
|
|
Dividends to stockholders
|
|
(24,885
|
)
|
|
(22,848
|
)
|
|
Acquisition of treasury stock
|
|
(4,985
|
)
|
|
(3,887
|
)
|
|
Net proceeds from stock purchase and compensation plans
|
|
4,906
|
|
|
6,016
|
|
|
Proceeds from borrowings
|
|
105,000
|
|
|
15,000
|
|
|
Repayments of borrowings
|
|
(70,000
|
)
|
|
—
|
|
|
Excess tax benefits from share-based payment arrangements
|
|
1,917
|
|
|
1,498
|
|
|
Repayments of capital lease obligations
|
|
(3,840
|
)
|
|
(3,517
|
)
|
|
Net cash provided by (used in) financing activities
|
|
8,113
|
|
|
(7,738
|
)
|
|
Net increase (decrease) in cash
|
|
595
|
|
|
(8,846
|
)
|
|
Cash, beginning of year
|
|
898
|
|
|
23,959
|
|
|
Cash, end of period
|
|
$
|
1,493
|
|
|
15,113
|
|
|
|
Nine Months ended September 30,
|
|||||
($ in thousands)
|
|
2016
|
|
2015
|
|||
Cash paid during the period for:
|
|
|
|
|
|
|
|
Interest
|
|
$
|
13,874
|
|
|
13,843
|
|
Federal income tax
|
|
36,405
|
|
|
18,500
|
|
|
|
|
|
|
|
|||
Non-cash items:
|
|
|
|
|
|||
Exchange of fixed income securities, AFS
|
|
21,775
|
|
|
35,425
|
|
|
Tax-free exchange of fixed income securities, held-to-maturity ("HTM")
|
|
—
|
|
|
10,045
|
|
|
Corporate actions related to equity securities, AFS
1
|
|
3,032
|
|
|
4,239
|
|
|
Assets acquired under capital lease arrangements
|
|
3,108
|
|
|
6,933
|
|
|
Non-cash purchase of property and equipment
|
|
648
|
|
|
—
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
($ in thousands)
|
|
Amortized
Cost
|
|
Net
Unrealized Gains
(Losses)
|
|
Carrying
Value
|
|
Unrecognized
Holding
Gains
|
|
Unrecognized Holding
Losses
|
|
Fair
Value
|
|||||||
Obligations of states and political subdivisions
|
|
$
|
104,159
|
|
|
414
|
|
|
104,573
|
|
|
3,256
|
|
|
—
|
|
|
107,829
|
|
Corporate securities
|
|
23,722
|
|
|
(165
|
)
|
|
23,557
|
|
|
2,294
|
|
|
—
|
|
|
25,851
|
|
|
Asset-backed securities (“ABS”)
|
|
51
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
Commercial mortgage-backed securities (“CMBS”)
|
|
2,346
|
|
|
(55
|
)
|
|
2,291
|
|
|
72
|
|
|
—
|
|
|
2,363
|
|
|
Total HTM fixed income securities
|
|
$
|
130,278
|
|
|
194
|
|
|
130,472
|
|
|
5,622
|
|
|
—
|
|
|
136,094
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
($ in thousands)
|
|
Amortized
Cost
|
|
Net
Unrealized Gains
(Losses)
|
|
Carrying
Value
|
|
Unrecognized
Holding
Gains
|
|
Unrecognized Holding
Losses
|
|
Fair
Value
|
|||||||
Obligations of states and political subdivisions
|
|
$
|
175,269
|
|
|
848
|
|
|
176,117
|
|
|
5,763
|
|
|
—
|
|
|
181,880
|
|
Corporate securities
|
|
20,228
|
|
|
(185
|
)
|
|
20,043
|
|
|
1,972
|
|
|
—
|
|
|
22,015
|
|
|
ABS
|
|
1,030
|
|
|
(120
|
)
|
|
910
|
|
|
118
|
|
|
—
|
|
|
1,028
|
|
|
CMBS
|
|
4,527
|
|
|
(243
|
)
|
|
4,284
|
|
|
337
|
|
|
—
|
|
|
4,621
|
|
|
Total HTM fixed income securities
|
|
$
|
201,054
|
|
|
300
|
|
|
201,354
|
|
|
8,190
|
|
|
—
|
|
|
209,544
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|||||
($ in thousands)
|
|
Cost/
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
|||||
AFS fixed income securities:
|
|
|
|
|
|
|
|
|
|||||
U.S. government and government agencies
|
|
$
|
86,491
|
|
|
3,400
|
|
|
—
|
|
|
89,891
|
|
Foreign government
|
|
9,041
|
|
|
443
|
|
|
—
|
|
|
9,484
|
|
|
Obligations of states and political subdivisions
|
|
1,376,245
|
|
|
70,984
|
|
|
(333
|
)
|
|
1,446,896
|
|
|
Corporate securities
|
|
2,136,761
|
|
|
60,784
|
|
|
(1,427
|
)
|
|
2,196,118
|
|
|
ABS
|
|
282,558
|
|
|
1,964
|
|
|
(69
|
)
|
|
284,453
|
|
|
CMBS
|
|
261,233
|
|
|
5,634
|
|
|
(93
|
)
|
|
266,774
|
|
|
Residential mortgage-backed
securities (“RMBS”)
|
|
529,938
|
|
|
9,294
|
|
|
(316
|
)
|
|
538,916
|
|
|
Total AFS fixed income securities
|
|
4,682,267
|
|
|
152,503
|
|
|
(2,238
|
)
|
|
4,832,532
|
|
|
AFS equity securities:
|
|
|
|
|
|
|
|
|
|||||
Common stock
|
|
111,746
|
|
|
24,832
|
|
|
(1,089
|
)
|
|
135,489
|
|
|
Preferred stock
|
|
11,235
|
|
|
580
|
|
|
—
|
|
|
11,815
|
|
|
Total AFS equity securities
|
|
122,981
|
|
|
25,412
|
|
|
(1,089
|
)
|
|
147,304
|
|
|
Total AFS securities
|
|
$
|
4,805,248
|
|
|
177,915
|
|
|
(3,327
|
)
|
|
4,979,836
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|||||
($ in thousands)
|
|
Cost/
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
|||||
AFS fixed income securities:
|
|
|
|
|
|
|
|
|
|||||
U.S. government and government agencies
|
|
$
|
99,485
|
|
|
4,721
|
|
|
(91
|
)
|
|
104,115
|
|
Foreign government
|
|
14,885
|
|
|
298
|
|
|
(2
|
)
|
|
15,181
|
|
|
Obligations of states and political subdivisions
|
|
1,314,779
|
|
|
44,523
|
|
|
(160
|
)
|
|
1,359,142
|
|
|
Corporate securities
|
|
1,892,296
|
|
|
23,407
|
|
|
(15,521
|
)
|
|
1,900,182
|
|
|
ABS
|
|
244,541
|
|
|
531
|
|
|
(918
|
)
|
|
244,154
|
|
|
CMBS
|
|
245,252
|
|
|
750
|
|
|
(2,410
|
)
|
|
243,592
|
|
|
RMBS
|
|
541,276
|
|
|
4,274
|
|
|
(3,713
|
)
|
|
541,837
|
|
|
Total AFS fixed income securities
|
|
4,352,514
|
|
|
78,504
|
|
|
(22,815
|
)
|
|
4,408,203
|
|
|
AFS equity securities:
|
|
|
|
|
|
|
|
|
|||||
Common stock
|
|
181,991
|
|
|
14,796
|
|
|
(1,998
|
)
|
|
194,789
|
|
|
Preferred stock
|
|
11,825
|
|
|
477
|
|
|
(40
|
)
|
|
12,262
|
|
|
Total AFS equity securities
|
|
193,816
|
|
|
15,273
|
|
|
(2,038
|
)
|
|
207,051
|
|
|
Total AFS securities
|
|
$
|
4,546,330
|
|
|
93,777
|
|
|
(24,853
|
)
|
|
4,615,254
|
|
September 30, 2016
|
|
Less than 12 months
|
|
12 months or longer
|
|||||||||
($ in thousands)
|
|
Fair Value
|
|
Unrealized
Losses
1
|
|
Fair Value
|
|
Unrealized
Losses
1
|
|||||
AFS fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of states and political subdivisions
|
|
$
|
74,989
|
|
|
(333
|
)
|
|
—
|
|
|
—
|
|
Corporate securities
|
|
155,880
|
|
|
(1,139
|
)
|
|
30,469
|
|
|
(288
|
)
|
|
ABS
|
|
21,766
|
|
|
(66
|
)
|
|
2,450
|
|
|
(3
|
)
|
|
CMBS
|
|
24,633
|
|
|
(59
|
)
|
|
8,709
|
|
|
(34
|
)
|
|
RMBS
|
|
13,674
|
|
|
(40
|
)
|
|
37,677
|
|
|
(276
|
)
|
|
Total AFS fixed income securities
|
|
290,942
|
|
|
(1,637
|
)
|
|
79,305
|
|
|
(601
|
)
|
|
AFS equity securities:
|
|
|
|
|
|
|
|
|
|||||
Common stock
|
|
12,528
|
|
|
(1,089
|
)
|
|
—
|
|
|
—
|
|
|
Total AFS equity securities
|
|
12,528
|
|
|
(1,089
|
)
|
|
—
|
|
|
—
|
|
|
Total AFS
|
|
$
|
303,470
|
|
|
(2,726
|
)
|
|
79,305
|
|
|
(601
|
)
|
December 31, 2015
|
|
Less than 12 months
|
|
12 months or longer
|
|||||||||
($ in thousands)
|
|
Fair
Value
|
|
Unrealized
Losses
1
|
|
Fair Value
|
|
Unrealized
Losses
1
|
|||||
AFS fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and government agencies
|
|
$
|
16,006
|
|
|
(87
|
)
|
|
396
|
|
|
(4
|
)
|
Foreign government
|
|
1,067
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
Obligations of states and political subdivisions
|
|
28,617
|
|
|
(160
|
)
|
|
—
|
|
|
—
|
|
|
Corporate securities
|
|
761,479
|
|
|
(12,671
|
)
|
|
50,382
|
|
|
(2,850
|
)
|
|
ABS
|
|
197,477
|
|
|
(807
|
)
|
|
12,022
|
|
|
(111
|
)
|
|
CMBS
|
|
146,944
|
|
|
(2,196
|
)
|
|
15,385
|
|
|
(214
|
)
|
|
RMBS
|
|
264,914
|
|
|
(1,992
|
)
|
|
63,395
|
|
|
(1,721
|
)
|
|
Total AFS fixed income securities
|
|
1,416,504
|
|
|
(17,915
|
)
|
|
141,580
|
|
|
(4,900
|
)
|
|
AFS equity securities:
|
|
|
|
|
|
|
|
|
|||||
Common stock
|
|
31,148
|
|
|
(1,998
|
)
|
|
—
|
|
|
—
|
|
|
Preferred stock
|
|
1,531
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
Total AFS equity securities
|
|
32,679
|
|
|
(2,038
|
)
|
|
—
|
|
|
—
|
|
|
Total AFS
|
|
$
|
1,449,183
|
|
|
(19,953
|
)
|
|
141,580
|
|
|
(4,900
|
)
|
($ in thousands)
|
|
Carrying Value
|
|
Fair Value
|
|||
Due in one year or less
|
|
$
|
59,074
|
|
|
59,671
|
|
Due after one year through five years
|
|
62,778
|
|
|
66,622
|
|
|
Due after five years through 10 years
|
|
8,620
|
|
|
9,801
|
|
|
Total HTM fixed income securities
|
|
$
|
130,472
|
|
|
136,094
|
|
($ in thousands)
|
|
Fair Value
|
||
Due in one year or less
|
|
$
|
491,206
|
|
Due after one year through five years
|
|
2,403,246
|
|
|
Due after five years through 10 years
|
|
1,823,028
|
|
|
Due after 10 years
|
|
115,052
|
|
|
Total AFS fixed income securities
|
|
$
|
4,832,532
|
|
Other Investments
|
|
September 30, 2016
|
|
December 31, 2015
|
|||||||||||||||
($ in thousands)
|
|
Carrying Value
|
|
Remaining Commitment
|
|
Maximum Exposure to Loss
1
|
|
Carrying Value
|
|
Remaining Commitment
|
|
Maximum Exposure to Loss
1
|
|||||||
Alternative Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Private equity
|
|
$
|
35,444
|
|
|
57,793
|
|
|
93,237
|
|
|
35,088
|
|
|
30,204
|
|
|
65,292
|
|
Private credit
|
|
27,709
|
|
|
30,763
|
|
|
58,472
|
|
|
13,246
|
|
|
15,129
|
|
|
28,375
|
|
|
Real assets
|
|
15,329
|
|
|
22,922
|
|
|
38,251
|
|
|
19,500
|
|
|
25,820
|
|
|
45,320
|
|
|
Total alternative investments
|
|
78,482
|
|
|
111,478
|
|
|
189,960
|
|
|
67,834
|
|
|
71,153
|
|
|
138,987
|
|
|
Other securities
|
|
10,030
|
|
|
22,611
|
|
|
32,641
|
|
|
10,008
|
|
|
3,200
|
|
|
13,208
|
|
|
Total other investments
|
|
$
|
88,512
|
|
|
134,089
|
|
|
222,601
|
|
|
77,842
|
|
|
74,353
|
|
|
152,195
|
|
Income Statement Information
|
|
Quarter ended June 30,
|
|
Nine months ended June 30,
|
|||||||||
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Net investment (loss) income
|
|
$
|
(55.4
|
)
|
|
44.1
|
|
|
26.1
|
|
|
139.6
|
|
Realized gains
|
|
245.6
|
|
|
385.2
|
|
|
1,186.8
|
|
|
977.7
|
|
|
Net change in unrealized depreciation
|
|
117.8
|
|
|
(222.2
|
)
|
|
(1,132.8
|
)
|
|
(1,089.0
|
)
|
|
Net gain
|
|
$
|
308.0
|
|
|
207.1
|
|
|
80.1
|
|
|
28.3
|
|
Selective’s insurance subsidiaries’ other investments gain (loss)
|
|
$
|
1.6
|
|
|
1.3
|
|
|
—
|
|
|
(0.8
|
)
|
($ in millions)
|
|
FHLBI Collateral
|
|
FHLBNY Collateral
|
|
State and Regulatory Deposits
|
|
Total
|
|||||
U.S. government and government agencies
|
|
$
|
7.4
|
|
|
—
|
|
|
23.1
|
|
|
30.5
|
|
CMBS
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
RMBS
|
|
53.1
|
|
|
64.4
|
|
|
—
|
|
|
117.5
|
|
|
Total pledged as collateral
|
|
$
|
61.5
|
|
|
64.4
|
|
|
23.1
|
|
|
149.0
|
|
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Fixed income securities
|
|
$
|
32,453
|
|
|
30,601
|
|
|
$
|
95,850
|
|
|
92,227
|
|
Equity securities
|
|
1,506
|
|
|
2,370
|
|
|
5,940
|
|
|
6,546
|
|
||
Short-term investments
|
|
192
|
|
|
24
|
|
|
493
|
|
|
72
|
|
||
Other investments
|
|
1,628
|
|
|
1,337
|
|
|
(49
|
)
|
|
(781
|
)
|
||
Investment expenses
|
|
(2,404
|
)
|
|
(2,271
|
)
|
|
(6,908
|
)
|
|
(6,856
|
)
|
||
Net investment income earned
|
|
$
|
33,375
|
|
|
32,061
|
|
|
$
|
95,326
|
|
|
91,208
|
|
Third Quarter 2016
|
|
Gross
|
|
Included in Other Comprehensive Income ("OCI")
|
|
Recognized in
Earnings |
||||
($ in thousands)
|
|
|
|
|||||||
AFS equity securities:
|
|
|
|
|
|
|
||||
Common stock
|
|
$
|
342
|
|
|
—
|
|
|
342
|
|
Total AFS equity securities
|
|
342
|
|
|
—
|
|
|
342
|
|
|
Total OTTI losses
|
|
$
|
342
|
|
|
—
|
|
|
342
|
|
Third Quarter 2015
|
|
Gross
|
|
Included in OCI
|
|
Recognized in
Earnings |
||||
($ in thousands)
|
|
|
|
|||||||
AFS fixed income securities:
|
|
|
|
|
|
|
||||
Corporate securities
|
|
$
|
253
|
|
|
—
|
|
|
253
|
|
Total AFS fixed income securities
|
|
253
|
|
|
—
|
|
|
253
|
|
|
AFS equity securities:
|
|
|
|
|
|
|
||||
Common stock
|
|
1,029
|
|
|
—
|
|
|
1,029
|
|
|
Total AFS equity securities
|
|
1,029
|
|
|
—
|
|
|
1,029
|
|
|
Total OTTI losses
|
|
$
|
1,282
|
|
|
—
|
|
|
1,282
|
|
Nine Months 2016
|
|
Gross
|
|
Included in OCI
|
|
Recognized in
Earnings |
||||
($ in thousands)
|
|
|
|
|||||||
AFS fixed income securities:
|
|
|
|
|
|
|
||||
Corporate securities
|
|
$
|
1,077
|
|
|
—
|
|
|
1,077
|
|
RMBS
|
|
98
|
|
|
10
|
|
|
88
|
|
|
Total AFS fixed income securities
|
|
1,175
|
|
|
10
|
|
|
1,165
|
|
|
AFS equity securities:
|
|
|
|
|
|
|
||||
Common stock
|
|
3,316
|
|
|
—
|
|
|
3,316
|
|
|
Preferred stock
|
|
3
|
|
|
—
|
|
|
3
|
|
|
Total AFS equity securities
|
|
3,319
|
|
|
—
|
|
|
3,319
|
|
|
Total OTTI losses
|
|
$
|
4,494
|
|
|
10
|
|
|
4,484
|
|
Nine Months 2015
|
|
Gross
|
|
Included in OCI
|
|
Recognized in
Earnings |
||||
($ in thousands)
|
|
|
|
|||||||
AFS fixed income securities:
|
|
|
|
|
|
|
||||
Corporate securities
|
|
$
|
1,445
|
|
|
—
|
|
|
1,445
|
|
RMBS
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Total AFS fixed income securities
|
|
1,446
|
|
|
—
|
|
|
1,446
|
|
|
AFS equity securities:
|
|
|
|
|
|
|
||||
Common stock
|
|
6,201
|
|
|
—
|
|
|
6,201
|
|
|
Preferred stock
|
|
180
|
|
|
—
|
|
|
180
|
|
|
Total AFS equity securities
|
|
6,381
|
|
|
—
|
|
|
6,381
|
|
|
Total OTTI losses
|
|
$
|
7,827
|
|
|
—
|
|
|
7,827
|
|
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
HTM fixed income securities
|
|
|
|
|
|
|
|
|
|||||
Gains
|
|
$
|
—
|
|
|
3
|
|
|
3
|
|
|
5
|
|
Losses
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
AFS fixed income securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
|
|
2,204
|
|
|
169
|
|
|
3,189
|
|
|
2,158
|
|
|
Losses
|
|
(40
|
)
|
|
—
|
|
|
(81
|
)
|
|
(130
|
)
|
|
AFS equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains
|
|
1,863
|
|
|
1,419
|
|
|
4,364
|
|
|
23,567
|
|
|
Losses
|
|
—
|
|
|
(1
|
)
|
|
(240
|
)
|
|
(1,347
|
)
|
|
Other investments
|
|
|
|
|
|
|
|
|
|||||
Gains
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
Losses
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(654
|
)
|
|
Total net realized gains (excluding OTTI charges)
|
|
$
|
4,030
|
|
|
1,590
|
|
|
7,233
|
|
|
23,598
|
|
•
|
$25 million
on February 26, 2016 at an interest rate of
0.59%
, which was repaid on March 18, 2016;
|
•
|
$15 million
on April 7, 2016 at an interest rate of
0.52%
, which was repaid on April 28, 2016; and
|
•
|
$15 million
on April 28, 2016 at an interest rate of
0.53%
, which was repaid on May 19, 2016.
|
•
|
$25 million
on July 21, 2016 at an interest rate of
1.61%
, which is due on July 21, 2021; and
|
•
|
$25 million
on August 15, 2016 at an interest rate of
1.56%
, which is due on August 16, 2021.
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|||||||||
($ in thousands)
|
|
Carrying Amount
|
|
Fair
Value
|
|
Carrying Amount
|
|
Fair
Value
|
|||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HTM
|
|
$
|
130,472
|
|
|
136,094
|
|
|
201,354
|
|
|
209,544
|
|
AFS
|
|
4,832,532
|
|
|
4,832,532
|
|
|
4,408,203
|
|
|
4,408,203
|
|
|
Equity securities, AFS
|
|
147,304
|
|
|
147,304
|
|
|
207,051
|
|
|
207,051
|
|
|
Short-term investments
|
|
169,604
|
|
|
169,604
|
|
|
194,819
|
|
|
194,819
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.63% borrowings from FHLBI
|
|
$
|
—
|
|
|
—
|
|
|
15,000
|
|
|
14,977
|
|
1.25% borrowings from FHLBI
|
|
45,000
|
|
|
45,072
|
|
|
45,000
|
|
|
45,083
|
|
|
Total short-term debt
|
|
$
|
45,000
|
|
|
45,072
|
|
|
60,000
|
|
|
60,060
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|||||
7.25% Senior Notes
|
|
$
|
49,900
|
|
|
60,682
|
|
|
49,898
|
|
|
56,929
|
|
6.70% Senior Notes
|
|
99,426
|
|
|
118,192
|
|
|
99,415
|
|
|
110,363
|
|
|
5.875% Senior Notes
|
|
185,000
|
|
|
194,324
|
|
|
185,000
|
|
|
192,474
|
|
|
1.61% borrowings from FHLBNY
|
|
25,000
|
|
|
25,048
|
|
|
—
|
|
|
—
|
|
|
1.56% borrowings from FHLBNY
|
|
25,000
|
|
|
24,990
|
|
|
—
|
|
|
—
|
|
|
Subtotal long-term debt
|
|
384,326
|
|
|
423,236
|
|
|
334,313
|
|
|
359,766
|
|
|
Unamortized debt issuance costs
|
|
(5,775
|
)
|
|
|
|
(6,121
|
)
|
|
|
|||
Total long-term debt
|
|
$
|
378,551
|
|
|
|
|
328,192
|
|
|
|
September 30, 2016
|
|
|
|
Fair Value Measurements Using
|
|||||||||
($ in thousands)
|
|
Assets
Measured at Fair Value at 9/30/2016 |
|
Quoted Prices in
Active Markets for
Identical Assets/
Liabilities (Level 1)
1
|
|
Significant Other
Observable
Inputs
(Level 2)
1
|
|
Significant Unobservable
Inputs
(Level 3)
|
|||||
Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFS fixed income securities:
|
|
|
|
|
|
|
|
|
|||||
U.S. government and government agencies
|
|
$
|
89,891
|
|
|
35,147
|
|
|
54,744
|
|
|
—
|
|
Foreign government
|
|
9,484
|
|
|
—
|
|
|
9,484
|
|
|
—
|
|
|
Obligations of states and political subdivisions
|
|
1,446,896
|
|
|
—
|
|
|
1,446,896
|
|
|
—
|
|
|
Corporate securities
|
|
2,196,118
|
|
|
—
|
|
|
2,196,118
|
|
|
—
|
|
|
ABS
|
|
284,453
|
|
|
—
|
|
|
284,453
|
|
|
—
|
|
|
CMBS
|
|
266,774
|
|
|
—
|
|
|
266,774
|
|
|
—
|
|
|
RMBS
|
|
538,916
|
|
|
—
|
|
|
538,916
|
|
|
—
|
|
|
Total AFS fixed income securities
|
|
4,832,532
|
|
|
35,147
|
|
|
4,797,385
|
|
|
—
|
|
|
AFS equity securities:
|
|
|
|
|
|
|
|
|
|||||
Common stock
|
|
135,489
|
|
|
127,813
|
|
|
—
|
|
|
7,676
|
|
|
Preferred stock
|
|
11,815
|
|
|
11,815
|
|
|
—
|
|
|
—
|
|
|
Total AFS equity securities
|
|
147,304
|
|
|
139,628
|
|
|
—
|
|
|
7,676
|
|
|
Total AFS securities
|
|
4,979,836
|
|
|
174,775
|
|
|
4,797,385
|
|
|
7,676
|
|
|
Short-term investments
|
|
169,604
|
|
|
169,604
|
|
|
—
|
|
|
—
|
|
|
Total assets measured at fair value
|
|
$
|
5,149,440
|
|
|
344,379
|
|
|
4,797,385
|
|
|
7,676
|
|
December 31, 2015
|
|
|
|
Fair Value Measurements Using
|
|||||||||
($ in thousands)
|
|
Assets
Measured at Fair Value at 12/31/2015 |
|
Quoted Prices in
Active Markets for
Identical Assets/Liabilities
(Level 1)
1
|
|
Significant
Other Observable
Inputs
(Level 2)
1
|
|
Significant Unobservable
Inputs
(Level 3)
|
|||||
Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFS fixed income securities:
|
|
|
|
|
|
|
|
|
|||||
U.S. government and government agencies
|
|
$
|
104,115
|
|
|
42,702
|
|
|
61,413
|
|
|
—
|
|
Foreign government
|
|
15,181
|
|
|
—
|
|
|
15,181
|
|
|
—
|
|
|
Obligations of states and political subdivisions
|
|
1,359,142
|
|
|
—
|
|
|
1,359,142
|
|
|
—
|
|
|
Corporate securities
|
|
1,900,182
|
|
|
—
|
|
|
1,900,182
|
|
|
—
|
|
|
ABS
|
|
244,154
|
|
|
—
|
|
|
244,154
|
|
|
—
|
|
|
CMBS
|
|
243,592
|
|
|
—
|
|
|
243,592
|
|
|
—
|
|
|
RMBS
|
|
541,837
|
|
|
—
|
|
|
541,837
|
|
|
—
|
|
|
Total AFS fixed income securities
|
|
4,408,203
|
|
|
42,702
|
|
|
4,365,501
|
|
|
—
|
|
|
AFS equity securities:
|
|
|
|
|
|
|
|
|
|||||
Common stock
|
|
194,789
|
|
|
191,517
|
|
|
—
|
|
|
3,272
|
|
|
Preferred stock
|
|
12,262
|
|
|
12,262
|
|
|
—
|
|
|
—
|
|
|
Total AFS equity securities
|
|
207,051
|
|
|
203,779
|
|
|
—
|
|
|
3,272
|
|
|
Total AFS securities
|
|
4,615,254
|
|
|
246,481
|
|
|
4,365,501
|
|
|
3,272
|
|
|
Short-term investments
|
|
194,819
|
|
|
194,819
|
|
|
—
|
|
|
—
|
|
|
Total assets measured at fair value
|
|
$
|
4,810,073
|
|
|
441,300
|
|
|
4,365,501
|
|
|
3,272
|
|
1
|
There were no transfers of securities between Level 1 and Level 2.
|
September 30, 2016
|
Common Stock
|
||
($ in thousands)
|
|||
Fair value, December 31, 2015
|
$
|
3,272
|
|
Total net (losses) gains for the period included in:
|
|
||
OCI
|
—
|
|
|
Net income
|
—
|
|
|
Purchases
|
6,204
|
|
|
Sales
|
(1,800
|
)
|
|
Issuances
|
—
|
|
|
Settlements
|
—
|
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Fair value, September 30, 2016
|
$
|
7,676
|
|
September 30, 2016
|
|
|
|
Fair Value Measurements Using
|
|||||||||
($ in thousands)
|
|
Assets/
Liabilities Disclosed at Fair Value at 9/30/2016 |
|
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
|
|
$
|
107,829
|
|
|
—
|
|
|
107,829
|
|
|
—
|
|
Corporate securities
|
|
25,851
|
|
|
—
|
|
|
18,160
|
|
|
7,691
|
|
|
ABS
|
|
51
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
CMBS
|
|
2,363
|
|
|
—
|
|
|
2,363
|
|
|
—
|
|
|
Total HTM fixed income securities
|
|
$
|
136,094
|
|
|
—
|
|
|
128,403
|
|
|
7,691
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.25% borrowings from FHLBI
|
|
$
|
45,072
|
|
|
—
|
|
|
45,072
|
|
|
—
|
|
Total short-term debt
|
|
$
|
45,072
|
|
|
—
|
|
|
45,072
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|||||
7.25% Senior Notes
|
|
$
|
60,682
|
|
|
—
|
|
|
60,682
|
|
|
—
|
|
6.70% Senior Notes
|
|
118,192
|
|
|
—
|
|
|
118,192
|
|
|
—
|
|
|
5.875% Senior Notes
|
|
194,324
|
|
|
194,324
|
|
|
—
|
|
|
—
|
|
|
1.61% borrowings from FHLBNY
|
|
25,048
|
|
|
—
|
|
|
25,048
|
|
|
—
|
|
|
1.56% borrowings from FHLBNY
|
|
24,990
|
|
|
—
|
|
|
24,990
|
|
|
—
|
|
|
Total long-term debt
|
|
$
|
423,236
|
|
|
194,324
|
|
|
228,912
|
|
|
—
|
|
December 31, 2015
|
|
|
|
Fair Value Measurements Using
|
|||||||||
($ in thousands)
|
|
Assets/
Liabilities Disclosed at Fair Value at 12/31/2015 |
|
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
|
|
$
|
181,880
|
|
|
—
|
|
|
181,880
|
|
|
—
|
|
Corporate securities
|
|
22,015
|
|
|
—
|
|
|
18,679
|
|
|
3,336
|
|
|
ABS
|
|
1,028
|
|
|
—
|
|
|
1,028
|
|
|
—
|
|
|
CMBS
|
|
4,621
|
|
|
—
|
|
|
4,621
|
|
|
—
|
|
|
Total HTM fixed income securities
|
|
$
|
209,544
|
|
|
—
|
|
|
206,208
|
|
|
3,336
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||
Short-term debt:
|
|
|
|
|
|
|
|
|
|
||||
0.63% borrowings from FHLBI
|
|
$
|
14,977
|
|
|
—
|
|
|
14,977
|
|
|
—
|
|
1.25% borrowings from FHLBI
|
|
45,083
|
|
|
—
|
|
|
45,083
|
|
|
—
|
|
|
Total short-term debt
|
|
$
|
60,060
|
|
|
—
|
|
|
60,060
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|||||
7.25% Senior Notes
|
|
$
|
56,929
|
|
|
—
|
|
|
56,929
|
|
|
—
|
|
6.70% Senior Notes
|
|
110,363
|
|
|
—
|
|
|
110,363
|
|
|
—
|
|
|
5.875% Senior Notes
|
|
192,474
|
|
|
192,474
|
|
|
—
|
|
|
—
|
|
|
Total long-term debt
|
|
$
|
359,766
|
|
|
192,474
|
|
|
167,292
|
|
|
—
|
|
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Premiums written:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Direct
|
|
$
|
669,844
|
|
|
631,429
|
|
|
$
|
1,981,984
|
|
|
1,851,620
|
|
Assumed
|
|
7,644
|
|
|
6,099
|
|
|
21,752
|
|
|
17,140
|
|
||
Ceded
|
|
(98,715
|
)
|
|
(92,503
|
)
|
|
(281,464
|
)
|
|
(273,514
|
)
|
||
Net
|
|
$
|
578,773
|
|
|
545,025
|
|
|
$
|
1,722,272
|
|
|
1,595,246
|
|
Premiums earned:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Direct
|
|
$
|
627,520
|
|
|
590,716
|
|
|
$
|
1,846,587
|
|
|
1,728,865
|
|
Assumed
|
|
7,163
|
|
|
5,830
|
|
|
20,604
|
|
|
16,831
|
|
||
Ceded
|
|
(92,254
|
)
|
|
(89,156
|
)
|
|
(270,372
|
)
|
|
(271,874
|
)
|
||
Net
|
|
$
|
542,429
|
|
|
507,390
|
|
|
$
|
1,596,819
|
|
|
1,473,822
|
|
Loss and loss expense incurred:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Direct
|
|
$
|
428,520
|
|
|
306,635
|
|
|
$
|
1,152,223
|
|
|
935,529
|
|
Assumed
|
|
5,929
|
|
|
4,224
|
|
|
18,424
|
|
|
13,114
|
|
||
Ceded
|
|
(118,191
|
)
|
|
(25,698
|
)
|
|
(258,766
|
)
|
|
(86,922
|
)
|
||
Net
|
|
$
|
316,258
|
|
|
285,161
|
|
|
$
|
911,881
|
|
|
861,721
|
|
Ceded to NFIP
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Ceded premiums written
|
|
$
|
(62,051
|
)
|
|
(62,463
|
)
|
|
$
|
(179,205
|
)
|
|
(178,784
|
)
|
Ceded premiums earned
|
|
(56,505
|
)
|
|
(58,340
|
)
|
|
(169,986
|
)
|
|
(176,119
|
)
|
||
Ceded loss and loss expense incurred
|
|
(99,200
|
)
|
|
(15,382
|
)
|
|
(164,179
|
)
|
|
(36,315
|
)
|
•
|
Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to
|
•
|
Standard Personal Lines - comprised of insurance products and services, including flood insurance coverage, provided primarily to individuals acquiring coverage in the standard marketplace.
|
•
|
E&S Lines - comprised of insurance products and services provided to customers who have not obtained coverage in
|
•
|
Investments - invests the premiums collected by our insurance operations, as well as our earnings and amounts generated through our capital management strategies, which may include the issuance of debt and equity securities.
|
Revenue by Segment
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Standard Commercial Lines:
|
|
|
|
|
|
|
|
|
|
|
|||
Net premiums earned:
|
|
|
|
|
|
|
|
|
|
|
|||
Commercial automobile
|
|
$
|
100,612
|
|
|
90,758
|
|
|
294,927
|
|
|
265,771
|
|
Workers compensation
|
|
78,596
|
|
|
74,560
|
|
|
229,847
|
|
|
213,991
|
|
|
General liability
|
|
133,981
|
|
|
123,252
|
|
|
391,349
|
|
|
357,430
|
|
|
Commercial property
|
|
74,052
|
|
|
68,587
|
|
|
217,821
|
|
|
199,699
|
|
|
Businessowners’ policies
|
|
24,461
|
|
|
23,726
|
|
|
73,016
|
|
|
69,603
|
|
|
Bonds
|
|
5,795
|
|
|
5,031
|
|
|
16,924
|
|
|
15,137
|
|
|
Other
|
|
4,089
|
|
|
3,628
|
|
|
11,868
|
|
|
10,649
|
|
|
Miscellaneous income
|
|
1,925
|
|
|
448
|
|
|
6,182
|
|
|
4,680
|
|
|
Total Standard Commercial Lines revenue
|
|
423,511
|
|
|
389,990
|
|
|
1,241,934
|
|
|
1,136,960
|
|
|
Standard Personal Lines:
|
|
|
|
|
|
|
|
|
|||||
Net premiums earned:
|
|
|
|
|
|
|
|
|
|||||
Personal automobile
|
|
34,865
|
|
|
36,623
|
|
|
106,526
|
|
|
110,373
|
|
|
Homeowners
|
|
32,031
|
|
|
33,670
|
|
|
98,342
|
|
|
101,122
|
|
|
Other
|
|
1,794
|
|
|
1,795
|
|
|
4,851
|
|
|
5,143
|
|
|
Miscellaneous income
|
|
275
|
|
|
250
|
|
|
836
|
|
|
841
|
|
|
Total Standard Personal Lines revenue
|
|
68,965
|
|
|
72,338
|
|
|
210,555
|
|
|
217,479
|
|
|
E&S Lines:
|
|
|
|
|
|
|
|
|
|||||
Net premiums earned:
|
|
|
|
|
|
|
|
|
|||||
General liability
|
|
37,398
|
|
|
32,395
|
|
|
108,372
|
|
|
87,914
|
|
|
Commercial property
|
|
11,853
|
|
|
11,309
|
|
|
35,013
|
|
|
31,428
|
|
|
Commercial automobile
|
|
2,902
|
|
|
2,056
|
|
|
7,963
|
|
|
5,562
|
|
|
Miscellaneous income
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total E&S Lines revenue
|
|
52,152
|
|
|
45,760
|
|
|
151,348
|
|
|
124,904
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
33,375
|
|
|
32,061
|
|
|
95,326
|
|
|
91,208
|
|
|
Net realized investment gains
|
|
3,688
|
|
|
308
|
|
|
2,749
|
|
|
15,771
|
|
|
Total Investments revenue
|
|
37,063
|
|
|
32,369
|
|
|
98,075
|
|
|
106,979
|
|
|
Total revenues
|
|
$
|
581,691
|
|
|
540,457
|
|
|
1,701,912
|
|
|
1,586,322
|
|
Income Before Federal Income Tax
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Standard Commercial Lines:
|
|
|
|
|
|
|
|
|
|
|
|||
Underwriting gain
|
|
$
|
30,124
|
|
|
44,027
|
|
|
101,229
|
|
|
109,304
|
|
GAAP combined ratio
|
|
92.9
|
%
|
|
88.7
|
|
|
91.8
|
|
|
90.3
|
|
|
Statutory combined ratio
|
|
92.0
|
|
|
88.4
|
|
|
90.1
|
|
|
89.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Standard Personal Lines:
|
|
|
|
|
|
|
|
|
|||||
Underwriting gain (loss)
|
|
$
|
4,271
|
|
|
2,826
|
|
|
19,001
|
|
|
(4,295
|
)
|
GAAP combined ratio
|
|
93.8
|
%
|
|
96.1
|
|
|
90.9
|
|
|
102.0
|
|
|
Statutory combined ratio
|
|
92.0
|
|
|
95.0
|
|
|
90.7
|
|
|
101.7
|
|
|
|
|
|
|
|
|
|
|
|
|||||
E&S Insurance Operations:
|
|
|
|
|
|
|
|
|
|||||
Underwriting loss
|
|
$
|
(2,362
|
)
|
|
(2,022
|
)
|
|
(3,465
|
)
|
|
(5,033
|
)
|
GAAP combined ratio
|
|
104.5
|
%
|
|
104.4
|
|
|
102.3
|
|
|
104.0
|
|
|
Statutory combined ratio
|
|
101.4
|
|
|
101.1
|
|
|
100.9
|
|
|
101.8
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
|||
Net investment income
|
|
$
|
33,375
|
|
|
32,061
|
|
|
95,326
|
|
|
91,208
|
|
Net realized investment gains
|
|
3,688
|
|
|
308
|
|
|
2,749
|
|
|
15,771
|
|
|
Total investment income, before federal income tax
|
|
37,063
|
|
|
32,369
|
|
|
98,075
|
|
|
106,979
|
|
|
Tax on investment income
|
|
9,752
|
|
|
7,614
|
|
|
24,290
|
|
|
26,186
|
|
|
Total investment income, after federal income tax
|
|
$
|
27,311
|
|
|
24,755
|
|
|
73,785
|
|
|
80,793
|
|
Reconciliation of Segment Results to Income
Before Federal Income Tax
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Underwriting gain (loss), before federal income tax
|
|
|
|
|
|
|
|
|
|||||
Standard Commercial Lines
|
|
$
|
30,124
|
|
|
44,027
|
|
|
101,229
|
|
|
109,304
|
|
Standard Personal Lines
|
|
4,271
|
|
|
2,826
|
|
|
19,001
|
|
|
(4,295
|
)
|
|
E&S Lines
|
|
(2,362
|
)
|
|
(2,022
|
)
|
|
(3,465
|
)
|
|
(5,033
|
)
|
|
Investment income, before federal income tax
|
|
37,063
|
|
|
32,369
|
|
|
98,075
|
|
|
106,979
|
|
|
Total all segments
|
|
69,096
|
|
|
77,200
|
|
|
214,840
|
|
|
206,955
|
|
|
Interest expense
|
|
(5,714
|
)
|
|
(5,610
|
)
|
|
(16,940
|
)
|
|
(16,826
|
)
|
|
General corporate and other expenses
|
|
(7,939
|
)
|
|
(5,751
|
)
|
|
(28,271
|
)
|
|
(21,235
|
)
|
|
Income before federal income tax
|
|
$
|
55,443
|
|
|
65,839
|
|
|
169,629
|
|
|
168,894
|
|
|
|
Pension Plan
Quarter ended September 30, |
|
Pension Plan
Nine Months ended September 30, |
|||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Net Periodic Benefit Cost:
|
|
|
|
|
|
|
|
|
|||||
Service cost
|
|
$
|
41
|
|
|
1,913
|
|
|
1,647
|
|
|
5,738
|
|
Interest cost
|
|
3,049
|
|
|
3,409
|
|
|
9,252
|
|
|
10,225
|
|
|
Expected return on plan assets
|
|
(5,006
|
)
|
|
(3,991
|
)
|
|
(12,982
|
)
|
|
(11,972
|
)
|
|
Amortization of unrecognized net actuarial loss
|
|
1,763
|
|
|
1,643
|
|
|
4,724
|
|
|
4,930
|
|
|
Total net periodic cost
|
|
$
|
(153
|
)
|
|
2,974
|
|
|
2,641
|
|
|
8,921
|
|
|
|
Pension Plan
Nine Months ended September 30, |
||||
|
|
2016
|
|
2015
|
||
Weighted-Average Expense Assumptions:
|
|
|
|
|
||
Discount rate
|
|
4.69
|
%
|
|
4.29
|
%
|
Effective interest rate for calculation of service cost
|
|
4.89
|
%
|
|
—
|
%
|
Effective interest rate for calculation of interest cost
|
|
4.02
|
%
|
|
—
|
%
|
Expected return on plan assets
|
|
6.37
|
%
|
|
6.27
|
%
|
Rate of compensation increase
1
|
|
n/a
|
|
|
4.00
|
%
|
Third Quarter 2016
|
|
|
|
|
|
|
||||
($ in thousands)
|
|
Gross
|
|
Tax
|
|
Net
|
||||
Net income
|
|
$
|
55,443
|
|
|
16,941
|
|
|
38,502
|
|
Components of OCI:
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on investment securities
:
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding losses during period
|
|
(12,992
|
)
|
|
(4,548
|
)
|
|
(8,444
|
)
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
||||
HTM securities
|
|
(13
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
Realized gains on AFS securities
|
|
(3,684
|
)
|
|
(1,289
|
)
|
|
(2,395
|
)
|
|
Total unrealized losses on investment securities
|
|
(16,689
|
)
|
|
(5,841
|
)
|
|
(10,848
|
)
|
|
Defined benefit pension and post-retirement plans:
|
|
|
|
|
|
|
|
|
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
|
|
|
|
Net actuarial loss
|
|
1,615
|
|
|
565
|
|
|
1,050
|
|
|
Total defined benefit pension and post-retirement plans
|
|
1,615
|
|
|
565
|
|
|
1,050
|
|
|
Other comprehensive loss
|
|
(15,074
|
)
|
|
(5,276
|
)
|
|
(9,798
|
)
|
|
Comprehensive income
|
|
$
|
40,369
|
|
|
11,665
|
|
|
28,704
|
|
Third Quarter 2015
|
|
|
|
|
|
|
||||
($ in thousands)
|
|
Gross
|
|
Tax
|
|
Net
|
||||
Net income
|
|
$
|
65,839
|
|
|
18,843
|
|
|
46,996
|
|
Components of OCI:
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains on investment securities
:
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding gains during period
|
|
8,371
|
|
|
2,929
|
|
|
5,442
|
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
||||
HTM securities
|
|
(97
|
)
|
|
(34
|
)
|
|
(63
|
)
|
|
Realized gains on AFS securities
|
|
(305
|
)
|
|
(106
|
)
|
|
(199
|
)
|
|
Total unrealized gains on investment securities
|
|
7,969
|
|
|
2,789
|
|
|
5,180
|
|
|
Defined benefit pension and post-retirement plans:
|
|
|
|
|
|
|
|
|
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
|
|
|
|
Net actuarial loss
|
|
1,709
|
|
|
599
|
|
|
1,110
|
|
|
Total defined benefit pension and post-retirement plans
|
|
1,709
|
|
|
599
|
|
|
1,110
|
|
|
Other comprehensive income
|
|
9,678
|
|
|
3,388
|
|
|
6,290
|
|
|
Comprehensive income
|
|
$
|
75,517
|
|
|
22,231
|
|
|
53,286
|
|
Nine Months 2016
|
|
|
|
|
|
|
||||
($ in thousands)
|
|
Gross
|
|
Tax
|
|
Net
|
||||
Net income
|
|
$
|
169,629
|
|
|
50,494
|
|
|
119,135
|
|
Components of OCI:
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains on investment securities
:
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding gains during period
|
|
108,420
|
|
|
37,947
|
|
|
70,473
|
|
|
Non-credit portion of OTTI recognized in OCI
|
|
(10
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
||||
HTM securities
|
|
(104
|
)
|
|
(36
|
)
|
|
(68
|
)
|
|
Realized gains on AFS securities
|
|
(2,747
|
)
|
|
(961
|
)
|
|
(1,786
|
)
|
|
Total unrealized gains on investment securities
|
|
105,559
|
|
|
36,946
|
|
|
68,613
|
|
|
Defined benefit pension and post-retirement plans:
|
|
|
|
|
|
|
|
|
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
|
|
|
|
Net actuarial loss
|
|
4,648
|
|
|
1,627
|
|
|
3,021
|
|
|
Total defined benefit pension and post-retirement plans
|
|
4,648
|
|
|
1,627
|
|
|
3,021
|
|
|
Other comprehensive income
|
|
110,207
|
|
|
38,573
|
|
|
71,634
|
|
|
Comprehensive income
|
|
$
|
279,836
|
|
|
89,067
|
|
|
190,769
|
|
Nine Months 2015
|
|
|
|
|
|
|
||||
($ in thousands)
|
|
Gross
|
|
Tax
|
|
Net
|
||||
Net income
|
|
$
|
168,894
|
|
|
48,422
|
|
|
120,472
|
|
Components of OCI:
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on investment securities
:
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding losses during period
|
|
(27,896
|
)
|
|
(9,764
|
)
|
|
(18,132
|
)
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
||||
HTM securities
|
|
(543
|
)
|
|
(190
|
)
|
|
(353
|
)
|
|
Non-credit OTTI
|
|
357
|
|
|
125
|
|
|
232
|
|
|
Realized gains on AFS securities
|
|
(16,778
|
)
|
|
(5,872
|
)
|
|
(10,906
|
)
|
|
Total unrealized losses on investment securities
|
|
(44,860
|
)
|
|
(15,701
|
)
|
|
(29,159
|
)
|
|
Defined benefit pension and post-retirement plans:
|
|
|
|
|
|
|
|
|
|
|
Amounts reclassified into net income:
|
|
|
|
|
|
|
|
|
|
|
Net actuarial loss
|
|
5,127
|
|
|
1,795
|
|
|
3,332
|
|
|
Total defined benefit pension and post-retirement plans
|
|
5,127
|
|
|
1,795
|
|
|
3,332
|
|
|
Other comprehensive loss
|
|
(39,733
|
)
|
|
(13,906
|
)
|
|
(25,827
|
)
|
|
Comprehensive income
|
|
$
|
129,161
|
|
|
34,516
|
|
|
94,645
|
|
September 30, 2016
|
|
|
|
Defined Benefit
Pension and Post-Retirement Plans
|
|
|
|||||||||||||
|
|
Net Unrealized Gain on Investment Securities
|
|
|
Total AOCI
|
||||||||||||||
($ in thousands)
|
|
OTTI
Related
|
|
HTM
Related
|
|
All
Other
|
|
Investments
Subtotal
|
|
|
|||||||||
Balance, December 31, 2015
|
|
$
|
(282
|
)
|
|
194
|
|
|
45,083
|
|
|
44,995
|
|
|
(54,420
|
)
|
|
(9,425
|
)
|
OCI before reclassifications
|
|
(6
|
)
|
|
—
|
|
|
70,473
|
|
|
70,467
|
|
|
—
|
|
|
70,467
|
|
|
Amounts reclassified from AOCI
|
|
—
|
|
|
(68
|
)
|
|
(1,786
|
)
|
|
(1,854
|
)
|
|
3,021
|
|
|
1,167
|
|
|
Net current period OCI
|
|
(6
|
)
|
|
(68
|
)
|
|
68,687
|
|
|
68,613
|
|
|
3,021
|
|
|
71,634
|
|
|
Balance, September 30, 2016
|
|
$
|
(288
|
)
|
|
126
|
|
|
113,770
|
|
|
113,608
|
|
|
(51,399
|
)
|
|
62,209
|
|
•
|
Standard Commercial Lines - which represents
79%
of our combined insurance segments' net premiums written ("NPW"), sells commercial lines insurance products and services to businesses, non-profit organizations, and local government agencies located primarily in
22
states in the Eastern and Midwestern U.S. and the District of Columbia through approximately 1,160 distribution partners in the standard marketplace.
|
•
|
Standard Personal Lines - which includes our flood business, represents approximately
12%
of our combined insurance segments' NPW and sells personal lines insurance products and services to individuals located primarily in
13
states through approximately
700
distribution partners in the standard marketplace. In addition, we have approximately
5,000
distribution partners selling our flood business.
|
•
|
E&S Lines - which represents
9%
of our combined insurance segments' NPW, sells commercial lines insurance products and services in all
50
states and the District of Columbia through approximately
80
distribution partners. Insurance policies in this segment are sold to customers that typically have business risks with unique characteristics, such as the nature of the business or its claim history and cannot obtain coverage in the standard marketplace. E&S insurers have more flexibility in coverage terms and rates compared to standard market insurers, generally resulting in policies with higher rates and terms and conditions that are more narrowly customized for specific risks.
|
•
|
Investments - invests the premiums collected by our Standard Commercial Lines, Standard Personal Lines, and E&S
|
•
|
Critical Accounting Policies and Estimates;
|
•
|
Financial Highlights of Results for the
third
quarters ended
September 30, 2016
(“
Third Quarter 2016
”) and
September 30, 2015
(“
Third Quarter 2015
”) and the
nine
-month periods ended
September 30, 2016
("
Nine Months 2016
") and
September 30, 2015
("
Nine Months 2015
");
|
•
|
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.
|
|
|
Quarter ended
September 30, |
|
|
|
|
Nine Months ended September 30,
|
|
|
|
|
||||||||||||
($ and shares in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|
Change
% or Points
|
|
|
2016
|
|
2015
|
|
Change
% or Points
|
|
|
||||||||
Generally Accepted Accounting Principles ("GAAP") measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
581,691
|
|
|
540,457
|
|
|
8
|
|
|
%
|
$
|
1,701,912
|
|
|
1,586,322
|
|
|
7
|
|
|
%
|
Net investment income earned
|
|
33,375
|
|
|
32,061
|
|
|
4
|
|
|
|
95,326
|
|
|
91,208
|
|
|
5
|
|
|
|
||
Income before federal income tax
|
|
55,443
|
|
|
65,839
|
|
|
(16
|
)
|
|
|
169,629
|
|
|
168,894
|
|
|
—
|
|
|
|
||
Net income
|
|
38,502
|
|
|
46,996
|
|
|
(18
|
)
|
|
|
119,135
|
|
|
120,472
|
|
|
(1
|
)
|
|
|
||
Diluted net income per share
|
|
0.66
|
|
|
0.81
|
|
|
(19
|
)
|
|
|
2.03
|
|
|
2.08
|
|
|
(2
|
)
|
|
|
||
Diluted weighted-average outstanding shares
|
|
58,731
|
|
|
57,984
|
|
|
1
|
|
|
|
58,612
|
|
|
57,838
|
|
|
1
|
|
|
|
||
GAAP combined ratio
|
|
94.1
|
%
|
|
91.2
|
|
|
2.9
|
|
|
pts
|
92.7
|
%
|
|
93.2
|
|
|
(0.5
|
)
|
|
pts
|
||
Statutory combined ratio
|
|
92.9
|
|
|
90.5
|
|
|
2.4
|
|
|
|
91.2
|
|
|
92.3
|
|
|
(1.1
|
)
|
|
|
||
Invested assets per dollar of stockholders' equity
|
|
$
|
3.41
|
|
|
3.69
|
|
|
(8
|
)
|
|
%
|
$
|
3.41
|
|
|
3.69
|
|
|
(8
|
)
|
|
%
|
After-tax yield on investments
|
|
1.9
|
%
|
|
2.0
|
|
|
(0.1
|
)
|
|
pts
|
1.8
|
%
|
|
1.9
|
|
|
(0.1
|
)
|
|
pts
|
||
Annualized return on average equity ("ROE")
|
|
9.8
|
|
|
14.1
|
|
|
(4.3
|
)
|
|
|
10.7
|
|
|
12.2
|
|
|
(1.5
|
)
|
|
|
||
Non-GAAP measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income
2
|
|
$
|
36,104
|
|
|
46,796
|
|
|
(23
|
)
|
|
%
|
$
|
117,348
|
|
|
110,221
|
|
|
6
|
|
|
%
|
Diluted operating income per share
2
|
|
0.62
|
|
|
0.81
|
|
|
(23
|
)
|
|
|
2.00
|
|
|
1.90
|
|
|
5
|
|
|
|
||
Annualized operating ROE
2
|
|
9.2
|
%
|
|
14.0
|
|
|
(4.8
|
)
|
|
pts
|
10.5
|
%
|
|
11.2
|
|
|
(0.7
|
)
|
|
pts
|
1
|
Refer to the Glossary of Terms attached to our
2015 Annual Report
as Exhibit 99.1 for definitions of terms used in this Form 10-Q.
|
2
|
Operating income is used as an important financial measure by us, analysts, and investors, because the realization of investment gains and losses on sales in any given period is largely discretionary as to timing. In addition, these realized investment gains and losses, as well as OTTI that are charged to earnings and the results of discontinued operations, could distort the analysis of trends. See below for a reconciliation of operating income to net income in accordance with GAAP. Annualized operating ROE is calculated by dividing annualized operating income by average stockholders’ equity.
|
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
||||||||||
($ in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Operating income
|
|
$
|
36,104
|
|
|
46,796
|
|
|
$
|
117,348
|
|
|
110,221
|
|
Net realized gains, net of tax
|
|
2,398
|
|
|
200
|
|
|
1,787
|
|
|
10,251
|
|
||
Net income
|
|
$
|
38,502
|
|
|
46,996
|
|
|
$
|
119,135
|
|
|
120,472
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted operating income per share
|
|
$
|
0.62
|
|
|
0.81
|
|
|
$
|
2.00
|
|
|
1.90
|
|
Diluted net realized gains per share
|
|
0.04
|
|
|
—
|
|
|
0.03
|
|
|
0.18
|
|
||
Diluted net income per share
|
|
$
|
0.66
|
|
|
0.81
|
|
|
$
|
2.03
|
|
|
2.08
|
|
ROE
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Insurance segments
|
|
5.3
|
%
|
|
8.7
|
|
|
6.8
|
%
|
|
6.6
|
|
Investment income
1
|
|
6.4
|
|
|
7.4
|
|
|
6.5
|
|
|
7.1
|
|
Other
|
|
(2.5
|
)
|
|
(2.1
|
)
|
|
(2.8
|
)
|
|
(2.5
|
)
|
Annualized operating ROE
|
|
9.2
|
|
|
14.0
|
|
|
10.5
|
|
|
11.2
|
|
Net realized gains
1
|
|
0.6
|
|
|
0.1
|
|
|
0.2
|
|
|
1.0
|
|
Annualized ROE
|
|
9.8
|
%
|
|
14.1
|
|
|
10.7
|
%
|
|
12.2
|
|
All Lines
|
|
Quarter ended September 30,
|
|
Change % or Points
|
|
|
|
Nine Months ended September 30,
|
|
Change % or Points
|
|
|
||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
|
|
|
2016
|
|
2015
|
|
|
|
||||||||||
GAAP Insurance Operations Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NPW
|
|
$
|
578,773
|
|
|
545,025
|
|
|
6
|
|
|
%
|
|
$
|
1,722,272
|
|
|
1,595,246
|
|
|
8
|
|
|
%
|
Net premiums earned (“NPE”)
|
|
542,429
|
|
|
507,390
|
|
|
7
|
|
|
|
|
1,596,819
|
|
|
1,473,822
|
|
|
8
|
|
|
|
||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loss and loss expense incurred
|
|
316,258
|
|
|
285,161
|
|
|
11
|
|
|
|
|
911,881
|
|
|
861,721
|
|
|
6
|
|
|
|
||
Net underwriting expenses incurred
|
|
193,597
|
|
|
175,477
|
|
|
10
|
|
|
|
|
564,361
|
|
|
506,835
|
|
|
11
|
|
|
|
||
Dividends to policyholders
|
|
541
|
|
|
1,921
|
|
|
(72
|
)
|
|
|
|
3,812
|
|
|
5,290
|
|
|
(28
|
)
|
|
|
||
Underwriting gain
|
|
$
|
32,033
|
|
|
44,831
|
|
|
(29
|
)
|
|
%
|
|
$
|
116,765
|
|
|
99,976
|
|
|
17
|
|
|
%
|
GAAP Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loss and loss expense ratio
|
|
58.3
|
|
%
|
56.2
|
|
|
2.1
|
|
|
pts
|
|
57.1
|
|
%
|
58.5
|
|
|
(1.4
|
)
|
|
pts
|
||
Underwriting expense ratio
|
|
35.7
|
|
|
34.6
|
|
|
1.1
|
|
|
|
|
35.4
|
|
|
34.3
|
|
|
1.1
|
|
|
|
||
Dividends to policyholders ratio
|
|
0.1
|
|
|
0.4
|
|
|
(0.3
|
)
|
|
|
|
0.2
|
|
|
0.4
|
|
|
(0.2
|
)
|
|
|
||
Combined ratio
|
|
94.1
|
|
|
91.2
|
|
|
2.9
|
|
|
|
|
92.7
|
|
|
93.2
|
|
|
(0.5
|
)
|
|
|
||
Statutory Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loss and loss expense ratio
|
|
58.3
|
|
|
56.1
|
|
|
2.2
|
|
|
|
|
57.0
|
|
|
58.5
|
|
|
(1.5
|
)
|
|
|
||
Underwriting expense ratio
|
|
34.5
|
|
|
34.0
|
|
|
0.5
|
|
|
|
|
34.0
|
|
|
33.4
|
|
|
0.6
|
|
|
|
||
Dividends to policyholders ratio
|
|
0.1
|
|
|
0.4
|
|
|
(0.3
|
)
|
|
|
|
0.2
|
|
|
0.4
|
|
|
(0.2
|
)
|
|
|
||
Combined ratio
|
|
92.9
|
|
%
|
90.5
|
|
|
2.4
|
|
|
pts
|
|
91.2
|
|
%
|
92.3
|
|
|
(1.1
|
)
|
|
pts
|
|
Third Quarter 2016
|
|
|
Third Quarter 2015
|
|
|
|
|||||||||
($ 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
|
$
|
10.4
|
|
1.9
|
|
pts
|
|
$
|
6.9
|
|
1.3
|
|
pts
|
0.6
|
|
pts
|
Non-catastrophe property losses
|
78.5
|
|
14.5
|
|
|
|
65.2
|
|
12.9
|
|
|
1.6
|
|
|
||
Favorable prior year casualty reserve development
|
(19.0
|
)
|
(3.5
|
)
|
|
|
(15.0
|
)
|
(3.0
|
)
|
|
(0.5
|
)
|
|
|
Nine Months 2016
|
|
|
Nine Months 2015
|
|
|
|
|||||||||
($ 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
|
$
|
33.2
|
|
2.1
|
|
pts
|
|
$
|
56.1
|
|
3.8
|
|
pts
|
(1.7
|
)
|
pts
|
Non-catastrophe property losses
|
209.2
|
|
13.1
|
|
|
|
206.7
|
|
14.0
|
|
|
(0.9
|
)
|
|
||
Favorable prior year casualty reserve development
|
(46.0
|
)
|
(2.9
|
)
|
|
|
(55.0
|
)
|
(3.8
|
)
|
|
0.9
|
|
|
(Favorable)/Unfavorable Prior Year Casualty Reserve Development
|
|
|
|
|
|
|
|
|||||
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
General liability
|
$
|
(11.0
|
)
|
|
(5.0
|
)
|
|
(33.0
|
)
|
|
(41.0
|
)
|
Commercial automobile
|
7.0
|
|
|
—
|
|
|
20.0
|
|
|
3.0
|
|
|
Workers compensation
|
(15.0
|
)
|
|
(14.0
|
)
|
|
(36.0
|
)
|
|
(27.0
|
)
|
|
Businessowners' policies
|
—
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
|
Total Standard Commercial Lines
|
(19.0
|
)
|
|
(19.0
|
)
|
|
(49.0
|
)
|
|
(61.0
|
)
|
|
|
|
|
|
|
|
|
|
|||||
E&S
|
—
|
|
|
4.0
|
|
|
3.0
|
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|||||
Total (favorable) prior year casualty reserve development
|
$
|
(19.0
|
)
|
|
(15.0
|
)
|
|
(46.0
|
)
|
|
(55.0
|
)
|
|
|
|
|
|
|
|
|
|||||
(Favorable) impact on loss ratio
|
(3.5
|
)
|
pts
|
(3.0
|
)
|
|
(2.9
|
)
|
|
(3.8
|
)
|
•
|
An ex-catastrophe combined ratio of approximately 89.5%. This assumes no additional prior year casualty reserve development in the fourth quarter;
|
•
|
3.0 points of catastrophe losses, down from our previous guidance of 3.5 points;
|
•
|
After-tax investment income of approximately $95 million; and
|
•
|
Weighted average shares of approximately 58.5 million.
|
|
|
Quarter ended September 30,
|
|
|
|
|
Nine Months ended September 30,
|
|
|
|
||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
||||||||
GAAP Insurance Operations Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NPW
|
|
$
|
449,544
|
|
|
414,031
|
|
|
9
|
|
%
|
|
$
|
1,353,615
|
|
|
1,240,110
|
|
|
9
|
|
%
|
NPE
|
|
421,586
|
|
|
389,542
|
|
|
8
|
|
|
|
1,235,752
|
|
|
1,132,280
|
|
|
9
|
|
|
||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss and loss expense incurred
|
|
238,215
|
|
|
203,621
|
|
|
17
|
|
|
|
683,183
|
|
|
619,857
|
|
|
10
|
|
|
||
Net underwriting expenses incurred
|
|
152,706
|
|
|
139,973
|
|
|
9
|
|
|
|
447,528
|
|
|
397,829
|
|
|
12
|
|
|
||
Dividends to policyholders
|
|
541
|
|
|
1,921
|
|
|
(72
|
)
|
|
|
3,812
|
|
|
5,290
|
|
|
(28
|
)
|
|
||
Underwriting gain
|
|
$
|
30,124
|
|
|
44,027
|
|
|
(32
|
)
|
%
|
|
$
|
101,229
|
|
|
109,304
|
|
|
(7
|
)
|
%
|
GAAP Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss and loss expense ratio
|
|
56.5
|
|
%
|
52.3
|
|
|
4.2
|
|
pts
|
|
55.3
|
|
%
|
54.7
|
|
|
0.6
|
|
pts
|
||
Underwriting expense ratio
|
|
36.3
|
|
|
35.9
|
|
|
0.4
|
|
|
|
36.2
|
|
|
35.1
|
|
|
1.1
|
|
|
||
Dividends to policyholders ratio
|
|
0.1
|
|
|
0.5
|
|
|
(0.4
|
)
|
|
|
0.3
|
|
|
0.5
|
|
|
(0.2
|
)
|
|
||
Combined ratio
|
|
92.9
|
|
|
88.7
|
|
|
4.2
|
|
|
|
91.8
|
|
|
90.3
|
|
|
1.5
|
|
|
||
Statutory Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss and loss expense ratio
|
|
56.5
|
|
|
52.2
|
|
|
4.3
|
|
|
|
55.2
|
|
|
54.7
|
|
|
0.5
|
|
|
||
Underwriting expense ratio
|
|
35.4
|
|
|
35.7
|
|
|
(0.3
|
)
|
|
|
34.6
|
|
|
34.2
|
|
|
0.4
|
|
|
||
Dividends to policyholders ratio
|
|
0.1
|
|
|
0.5
|
|
|
(0.4
|
)
|
|
|
0.3
|
|
|
0.5
|
|
|
(0.2
|
)
|
|
||
Combined ratio
|
|
92.0
|
|
%
|
88.4
|
|
|
3.6
|
|
pts
|
|
90.1
|
|
%
|
89.4
|
|
|
0.7
|
|
pts
|
|
Third Quarter 2016
|
|
Third Quarter 2015
|
|
|
||||||||||
($ 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
|
$
|
6.2
|
|
1.5
|
|
pts
|
|
$
|
0.7
|
|
0.2
|
|
pts
|
1.3
|
pts
|
Non-catastrophe property losses
|
51.6
|
|
12.2
|
|
|
|
37.9
|
|
9.7
|
|
|
2.5
|
|
||
Favorable prior year casualty reserve development
|
(19.0
|
)
|
(4.5
|
)
|
|
|
(19.0
|
)
|
(4.9
|
)
|
|
0.4
|
|
|
Nine Months 2016
|
|
Nine Months 2015
|
|
|
|||||||||||
($ 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
|
$
|
21.5
|
|
1.7
|
|
pts
|
|
$
|
33.0
|
|
2.9
|
|
pts
|
(1.2
|
)
|
pts
|
Non-catastrophe property losses
|
136.8
|
|
11.1
|
|
|
|
120.8
|
|
10.7
|
|
|
0.4
|
|
|
||
Favorable prior year casualty reserve development
|
(49.0
|
)
|
(4.0
|
)
|
|
|
(61.0
|
)
|
(5.4
|
)
|
|
1.4
|
|
|
|
Third Quarter 2016
|
Third Quarter 2015
|
|
|
|||||||||||
($ in millions)
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
Change
Points
|
|
|||||||
Favorable prior year casualty reserve development
|
$
|
(11.0
|
)
|
(8.2
|
)
|
pts
|
$
|
(5.0
|
)
|
(4.1
|
)
|
pts
|
(4.1
|
)
|
pts
|
|
Nine Months 2016
|
Nine Months 2015
|
|
|
||||||||||
($ in millions)
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
Change
Points
|
|
||||||
Favorable prior year casualty reserve development
|
$
|
(33.0
|
)
|
(8.4
|
)
|
pts
|
$
|
(41.0
|
)
|
(11.5
|
)
|
pts
|
3.1
|
pts
|
•
|
Third Quarter
and
Nine Months
2016
: Development was primarily attributable to lower severities in the 2008 through 2014 accident years.
|
•
|
Third Quarter
and
Nine Months
2015
: Development was primarily attributable to lower claims frequencies and severities in the 2009 through 2013 accident years.
|
Commercial Automobile
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Quarter ended September 30,
|
|
Change
% or
Points
|
|
|
Nine Months ended September 30,
|
|
Change
% or Points |
|
||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
|
|
||||||||
Statutory NPW
|
|
$
|
108,655
|
|
|
97,941
|
|
|
11
|
%
|
|
$
|
325,751
|
|
|
291,547
|
|
|
12
|
%
|
Direct new business
|
|
18,953
|
|
|
17,345
|
|
|
9
|
|
|
58,225
|
|
|
54,200
|
|
|
7
|
|
||
Retention
|
|
85
|
|
%
|
85
|
|
|
—
|
pts
|
|
84
|
|
%
|
84
|
|
|
—
|
pts
|
||
Renewal pure price increases
|
|
4.8
|
|
|
3.7
|
|
|
1.1
|
|
|
4.9
|
|
|
3.7
|
|
|
1.2
|
|
||
Statutory NPE
|
|
$
|
100,612
|
|
|
90,758
|
|
|
11
|
%
|
|
$
|
294,927
|
|
|
265,771
|
|
|
11
|
%
|
Statutory combined ratio
|
|
114.5
|
|
%
|
104.5
|
|
|
10.0
|
pts
|
|
108.9
|
|
%
|
101.5
|
|
|
7.4
|
pts
|
||
% of total statutory Standard Commercial Lines NPW
|
|
24
|
|
|
24
|
|
|
|
|
|
24
|
|
|
24
|
|
|
|
|
|
Third Quarter 2016
|
|
Third Quarter 2015
|
|
|
|||||||||||
($ in millions)
|
Losses Incurred
|
Impact on
Loss Ratio
|
|
|
Losses Incurred
|
Impact on
Loss Ratio
|
|
Change in Ratio
|
|
|||||||
Unfavorable prior year casualty reserve development
|
$
|
7.0
|
|
7.0
|
|
pts
|
|
$
|
—
|
|
—
|
|
pts
|
7.0
|
|
pts
|
Increase in current year casualty reserve estimate
|
7.0
|
|
7.0
|
|
|
|
3.0
|
|
3.3
|
|
|
3.7
|
|
|
||
Non-catastrophe property losses
|
16.6
|
|
16.5
|
|
|
|
14.2
|
|
15.6
|
|
|
0.9
|
|
|
|
Nine Months 2016
|
|
Nine Months 2015
|
|
|
|||||||||||
($ in millions)
|
Losses Incurred
|
Impact on
Loss Ratio
|
|
|
Losses Incurred
|
Impact on
Loss Ratio
|
|
Change in Ratio
|
|
|||||||
Unfavorable prior year casualty reserve development
|
$
|
20.0
|
|
6.8
|
|
pts
|
|
$
|
3.0
|
|
1.1
|
|
pts
|
5.7
|
|
pts
|
Increase in current year casualty reserve estimate
|
7.0
|
|
2.4
|
|
|
|
3.0
|
|
1.1
|
|
|
1.3
|
|
|
||
Non-catastrophe property losses
|
46.4
|
|
15.7
|
|
|
|
40.1
|
|
15.1
|
|
|
0.6
|
|
|
Workers Compensation
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Quarter ended September 30,
|
|
|
|
|
Nine Months ended September 30,
|
|
|
|
||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
|
2016
|
|
2015
|
|
Change
% or Points |
|
||||||||
Statutory NPW
|
|
$
|
81,646
|
|
|
74,446
|
|
|
10
|
|
%
|
|
$
|
252,032
|
|
|
233,722
|
|
|
8
|
|
%
|
Direct new business
|
|
17,952
|
|
|
17,116
|
|
|
5
|
|
|
|
52,763
|
|
|
55,394
|
|
|
(5
|
)
|
|
||
Retention
|
|
85
|
|
%
|
84
|
|
|
1
|
|
pts
|
|
84
|
|
%
|
83
|
|
|
1
|
|
pts
|
||
Renewal pure price increases
|
|
0.9
|
|
|
2.5
|
|
|
(1.6
|
)
|
|
|
1.3
|
|
|
2.9
|
|
|
(1.6
|
)
|
|
||
Statutory NPE
|
|
$
|
78,596
|
|
|
74,560
|
|
|
5
|
|
%
|
|
$
|
229,847
|
|
|
213,991
|
|
|
7
|
|
%
|
Statutory combined ratio
|
|
80.2
|
|
%
|
84.0
|
|
|
(3.8
|
)
|
pts
|
|
82.8
|
|
%
|
87.7
|
|
|
(4.9
|
)
|
pts
|
||
% of total statutory Standard Commercial Lines NPW
|
|
18
|
|
|
18
|
|
|
|
|
|
|
19
|
|
|
19
|
|
|
|
|
|
Third Quarter 2016
|
Third Quarter 2015
|
|
|
|||||||||||
($ in millions)
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
Change
Points
|
|
|||||||
Favorable prior year casualty reserve development
|
$
|
(15.0
|
)
|
(19.1
|
)
|
pts
|
$
|
(14.0
|
)
|
(18.8
|
)
|
pts
|
(0.3
|
)
|
pts
|
|
Nine Months 2016
|
Nine Months 2015
|
|
|
|||||||||||
($ in millions)
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
Change
Points
|
|
|||||||
Favorable prior year casualty reserve development
|
$
|
(36.0
|
)
|
(15.7
|
)
|
pts
|
$
|
(27.0
|
)
|
(12.6
|
)
|
pts
|
(3.1
|
)
|
pts
|
Commercial Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Quarter ended September 30,
|
|
|
|
|
Nine Months ended September 30,
|
|
|
|
||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
||||||||
Statutory NPW
|
|
$
|
82,695
|
|
|
77,674
|
|
|
6
|
|
%
|
|
$
|
237,693
|
|
|
219,308
|
|
|
8
|
|
%
|
Direct new business
|
|
18,743
|
|
|
17,730
|
|
|
6
|
|
|
|
56,892
|
|
|
54,457
|
|
|
4
|
|
|
||
Retention
|
|
82
|
|
%
|
83
|
|
|
(1
|
)
|
pts
|
|
82
|
|
%
|
82
|
|
|
—
|
|
pts
|
||
Renewal pure price increases
|
|
2.0
|
|
|
2.7
|
|
|
(0.7
|
)
|
|
|
2.3
|
|
|
2.8
|
|
|
(0.5
|
)
|
|
||
Statutory NPE
|
|
$
|
74,052
|
|
|
68,587
|
|
|
8
|
|
%
|
|
$
|
217,821
|
|
|
199,699
|
|
|
9
|
|
%
|
Statutory combined ratio
|
|
85.2
|
|
%
|
67.8
|
|
|
17.4
|
|
pts
|
|
85.0
|
|
%
|
86.9
|
|
|
(1.9
|
)
|
pts
|
||
% of total statutory Standard Commercial Lines NPW
|
|
18
|
|
|
19
|
|
|
|
|
|
|
18
|
|
|
18
|
|
|
|
|
|
Third Quarter 2016
|
|
Third Quarter 2015
|
|
|
|||||||||
($ in millions)
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
Change
% or
Points
|
|
|||||
Catastrophe losses
|
$
|
3.4
|
|
4.5
|
pts
|
|
$
|
(0.5
|
)
|
(0.8
|
)
|
pts
|
5.3
|
pts
|
Non-catastrophe property losses
|
27.7
|
|
37.4
|
|
|
17.4
|
|
25.3
|
|
|
12.1
|
|
|
Nine Months 2016
|
|
Nine Months 2015
|
|
|
|||||||||
($ in millions)
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
|
(Benefit) Expense
|
Impact on
Combined Ratio |
|
Change
% or
Points
|
|
|||||
Catastrophe losses
|
$
|
16.5
|
|
7.6
|
pts
|
|
$
|
25.6
|
|
12.8
|
pts
|
(5.2
|
)
|
pts
|
Non-catastrophe property losses
|
74.0
|
|
34.0
|
|
|
62.6
|
|
31.3
|
|
2.7
|
|
|
|
|
Quarter ended September 30,
|
|
|
|
|
|
Nine Months ended September 30,
|
|
|
|
||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
||||||||
GAAP Insurance Operations Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NPW
|
|
$
|
76,225
|
|
|
76,927
|
|
|
(1
|
)
|
|
%
|
|
$
|
213,770
|
|
|
217,937
|
|
|
(2
|
)
|
%
|
NPE
|
|
68,690
|
|
|
72,088
|
|
|
(5
|
)
|
|
|
|
209,719
|
|
|
216,638
|
|
|
(3
|
)
|
|
||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss and loss expense incurred
|
|
41,582
|
|
|
49,588
|
|
|
(16
|
)
|
|
|
|
123,489
|
|
|
156,490
|
|
|
(21
|
)
|
|
||
Net underwriting expenses incurred
|
|
22,837
|
|
|
19,674
|
|
|
16
|
|
|
|
|
67,229
|
|
|
64,443
|
|
|
4
|
|
|
||
Underwriting gain (loss)
|
|
$
|
4,271
|
|
|
2,826
|
|
|
51
|
|
|
%
|
|
$
|
19,001
|
|
|
(4,295
|
)
|
|
542
|
|
%
|
GAAP Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss and loss expense ratio
|
|
60.5
|
|
%
|
68.8
|
|
|
(8.3
|
)
|
|
pts
|
|
58.9
|
|
%
|
72.2
|
|
|
(13.3
|
)
|
pts
|
||
Underwriting expense ratio
|
|
33.3
|
|
|
27.3
|
|
|
6.0
|
|
|
|
|
32.0
|
|
|
29.8
|
|
|
2.2
|
|
|
||
Combined ratio
|
|
93.8
|
|
|
96.1
|
|
|
(2.3
|
)
|
|
|
|
90.9
|
|
|
102.0
|
|
|
(11.1
|
)
|
|
||
Statutory Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss and loss expense ratio
|
|
60.7
|
|
|
68.7
|
|
|
(8.0
|
)
|
|
|
|
58.9
|
|
|
72.4
|
|
|
(13.5
|
)
|
|
||
Underwriting expense ratio
|
|
31.3
|
|
|
26.3
|
|
|
5.0
|
|
|
|
|
31.8
|
|
|
29.3
|
|
|
2.5
|
|
|
||
Combined ratio
|
|
92.0
|
|
%
|
95.0
|
|
|
(3.0
|
)
|
|
pts
|
|
90.7
|
|
%
|
101.7
|
|
|
(11.0
|
)
|
pts
|
|
|
Quarter ended September 30,
|
|
|
Nine Months ended September 30,
|
|
||||||||
($ in millions)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||
New business
|
|
$
|
12.0
|
|
|
9.1
|
|
|
$
|
29.0
|
|
|
25.0
|
|
Retention
|
|
83
|
|
%
|
83
|
|
|
82
|
|
%
|
82
|
|
||
Renewal pure price increases
|
|
4.7
|
|
|
5.4
|
|
|
5.0
|
|
|
6.3
|
|
|
Third Quarter 2016
|
|
Third Quarter 2015
|
|
|
|||||||||||
($ 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
|
$
|
2.5
|
|
3.6
|
|
pts
|
|
$
|
5.8
|
|
8.0
|
|
pts
|
(4.4
|
)
|
pts
|
Non-catastrophe property losses
|
18.9
|
|
27.6
|
|
|
|
21.0
|
|
29.1
|
|
|
(1.5
|
)
|
|
||
Flood claims handling fees
|
(2.0
|
)
|
(2.9
|
)
|
|
|
(0.8
|
)
|
(1.1
|
)
|
|
(1.8
|
)
|
|
|
Nine Months 2016
|
|
Nine Months 2015
|
|
|
||||||||||
($ 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
|
$
|
6.8
|
|
3.2
|
|
pts
|
|
20.4
|
|
9.4
|
|
pts
|
(6.2
|
)
|
pts
|
Non-catastrophe property losses
|
53.6
|
|
25.6
|
|
|
|
68.0
|
|
31.4
|
|
|
(5.8
|
)
|
|
|
Flood claims handling fees
|
(4.0
|
)
|
(1.9
|
)
|
|
|
(2.0
|
)
|
(0.9
|
)
|
|
(1.0
|
)
|
|
|
|
Quarter ended September 30,
|
|
|
|
|
Nine Months ended September 30,
|
|
|
|
||||||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
|
2016
|
|
2015
|
|
Change
% or
Points
|
|
||||||||
GAAP Insurance Operations Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NPW
|
|
$
|
53,004
|
|
|
54,067
|
|
|
(2
|
)
|
%
|
|
$
|
154,887
|
|
|
137,199
|
|
|
13
|
|
%
|
NPE
|
|
52,153
|
|
|
45,760
|
|
|
14
|
|
|
|
151,348
|
|
|
124,904
|
|
|
21
|
|
|
||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Loss and loss expense incurred
|
|
36,461
|
|
|
31,952
|
|
|
14
|
|
|
|
105,209
|
|
|
85,374
|
|
|
23
|
|
|
||
Net underwriting expenses incurred
|
|
18,054
|
|
|
15,830
|
|
|
14
|
|
|
|
49,604
|
|
|
44,563
|
|
|
11
|
|
|
||
Underwriting loss
|
|
$
|
(2,362
|
)
|
|
(2,022
|
)
|
|
(17
|
)
|
%
|
|
$
|
(3,465
|
)
|
|
(5,033
|
)
|
|
31
|
|
%
|
GAAP Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Loss and loss expense ratio
|
|
69.9
|
|
%
|
69.8
|
|
|
0.1
|
|
pts
|
|
69.5
|
|
%
|
68.4
|
|
|
1.1
|
|
pts
|
||
Underwriting expense ratio
|
|
34.6
|
|
|
34.6
|
|
|
—
|
|
|
|
32.8
|
|
|
35.6
|
|
|
(2.8
|
)
|
|
||
Combined ratio
|
|
104.5
|
|
|
104.4
|
|
|
0.1
|
|
|
|
102.3
|
|
|
104.0
|
|
|
(1.7
|
)
|
|
||
Statutory Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Loss and loss expense ratio
|
|
70.0
|
|
|
69.9
|
|
|
0.1
|
|
|
|
69.5
|
|
|
68.3
|
|
|
1.2
|
|
|
||
Underwriting expense ratio
|
|
31.4
|
|
|
31.2
|
|
|
0.2
|
|
|
|
31.4
|
|
|
33.5
|
|
|
(2.1
|
)
|
|
||
Combined ratio
|
|
101.4
|
|
%
|
101.1
|
|
|
0.3
|
|
pts
|
|
100.9
|
|
%
|
101.8
|
|
|
(0.9
|
)
|
pts
|
|
|
Quarter ended
September 30, |
|
Nine Months ended
September 30, |
|||||||||
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Direct new business
|
|
$
|
24.2
|
|
|
27.1
|
|
|
72.1
|
|
|
74.2
|
|
Price increases
|
|
5.8
|
|
%
|
3.4
|
|
|
4.8
|
|
%
|
1.8
|
|
|
Third Quarter 2016
|
|
|
Third Quarter 2015
|
|
|
|
|||||||
($ 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
|
|
|||||
Non-catastrophe property losses
|
$
|
7.9
|
|
15.2
|
pts
|
|
$
|
6.3
|
|
13.7
|
pts
|
1.5
|
|
pts
|
Unfavorable prior year casualty development
|
—
|
|
—
|
|
|
4.0
|
|
8.6
|
|
(8.6
|
)
|
|
||
Catastrophe losses
|
1.7
|
|
3.3
|
|
|
0.3
|
|
0.7
|
|
2.6
|
|
|
|
Nine Months 2016
|
|
|
Nine Months 2015
|
|
|
|
|||||||
($ 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
|
|
|||||
Non-catastrophe property losses
|
$
|
18.8
|
|
12.4
|
pts
|
|
$
|
18.0
|
|
14.4
|
pts
|
(2.0
|
)
|
pts
|
Unfavorable prior year casualty development
|
3.0
|
|
2.0
|
|
|
6.0
|
|
4.8
|
|
(2.8
|
)
|
|
||
Catastrophe losses
|
4.9
|
|
3.2
|
|
|
2.8
|
|
2.2
|
|
1.0
|
|
|
•
|
1.8-point reduction in
Nine Months 2016
from a lower annual cash incentive plan payment for employees in this segment based on 2015 underwriting results; and
|
•
|
0.7-point decrease in
Nine Months 2016
from lower commission expenses to our distribution partners reflecting a change in the mix of business written in this segment, as well as lower supplemental commission expense.
|
•
|
The per occurrence cap on the first and second layers is $84.0 million.
|
•
|
The first layer has unlimited reinstatements and a limit of $8.0 million in excess of $2.0 million.
|
•
|
The annual aggregate limit for the $30.0 million in excess of $10.0 million second layer is $120.0 million.
|
•
|
A third layer has a limit of $20.0 million excess of $40.0 million with an annual aggregate limit of approximately $70.0 million.
|
•
|
The Property Treaty excludes nuclear, biological, chemical, and radiological ("NBCR") terrorism losses.
|
•
|
The first through sixth layers provide coverage for 100% of up to $88.0 million in excess of a $2.0 million retention.
|
•
|
The Casualty Treaty includes a $25.0 million limit, per life, on our workers compensation business, which is a $4.0 million increase from the prior treaty.
|
•
|
The Casualty Treaty excludes NBCR terrorism losses and has annual aggregate non-NBCR terrorism limits of $208.0 million.
|
Total Invested Assets
|
|
|
|
|
|
|
|
||||
($ in thousands)
|
|
September 30, 2016
|
|
December 31, 2015
|
|
Change % or Points
|
|
||||
Total invested assets
|
|
$
|
5,368,424
|
|
|
5,089,269
|
|
|
5
|
|
%
|
Unrealized gain – before tax
|
|
174,781
|
|
|
69,224
|
|
|
152
|
|
|
|
Unrealized gain – after tax
|
|
113,608
|
|
|
44,996
|
|
|
152
|
|
|
|
Invested assets per dollar of stockholders' equity
|
|
3.41
|
|
|
3.64
|
|
|
(6
|
)
|
|
|
Annualized after-tax yield on investment portfolio
|
|
1.8
|
%
|
|
1.9
|
|
|
(0.1
|
)
|
pts
|
|
Annualized ROE
|
|
6.5
|
|
|
7.0
|
|
|
(0.5
|
)
|
|
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Fixed income securities
|
|
$
|
32,453
|
|
|
30,601
|
|
|
95,850
|
|
|
92,227
|
|
Equity securities
|
|
1,506
|
|
|
2,370
|
|
|
5,940
|
|
|
6,546
|
|
|
Short-term investments
|
|
192
|
|
|
24
|
|
|
493
|
|
|
72
|
|
|
Other investments
|
|
1,628
|
|
|
1,337
|
|
|
(49
|
)
|
|
(781
|
)
|
|
Investment expenses
|
|
(2,404
|
)
|
|
(2,271
|
)
|
|
(6,908
|
)
|
|
(6,856
|
)
|
|
Net investment income earned – before tax
|
|
33,375
|
|
|
32,061
|
|
|
95,326
|
|
|
91,208
|
|
|
Net investment income tax expense
|
|
(8,462
|
)
|
|
(7,506
|
)
|
|
(23,328
|
)
|
|
(20,666
|
)
|
|
Net investment income earned – after tax
|
|
$
|
24,913
|
|
|
24,555
|
|
|
71,998
|
|
|
70,542
|
|
Effective tax rate
|
|
25.4
|
%
|
|
23.4
|
|
|
24.5
|
|
|
22.7
|
|
|
Annualized after-tax yield on fixed income securities
|
|
2.0
|
|
|
2.1
|
|
|
2.0
|
|
|
2.1
|
|
|
Annualized after-tax yield on investment portfolio
|
|
1.9
|
|
|
2.0
|
|
|
1.8
|
|
|
1.9
|
|
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Net realized gains, excluding OTTI
|
|
$
|
4,030
|
|
|
1,590
|
|
|
7,233
|
|
|
23,598
|
|
OTTI
|
|
(342
|
)
|
|
(1,282
|
)
|
|
(4,484
|
)
|
|
(7,827
|
)
|
|
Total net realized gains (losses)
|
|
3,688
|
|
|
308
|
|
|
2,749
|
|
|
15,771
|
|
|
Quarter ended September 30,
|
|
Nine Months ended September 30,
|
|||||||||
($ in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Federal income tax expense
|
$
|
16.9
|
|
|
18.8
|
|
|
50.5
|
|
|
48.4
|
|
Effective tax rate
|
31
|
%
|
|
29
|
|
|
30
|
|
|
29
|
|
|
Required as of September 30, 2016
|
Actual as of September 30, 2016
|
Consolidated net worth
|
$1.0 billion
|
$1.6 billion
|
Statutory surplus
|
Not less than $750 million
|
$1.6 billion
|
Debt-to-capitalization ratio
1
|
Not to exceed 35%
|
21.5%
|
A.M. Best financial strength rating
|
Minimum of A-
|
A
|
1
|
Calculated in accordance with the Line of Credit agreement.
|
Branch
|
Insurance Subsidiary Member
|
Federal Home Loan Bank of Indianapolis ("FHLBI")
|
Selective Insurance Company of South Carolina ("SICSC")
1
Selective Insurance Company of the Southeast ("SICSE")
1
|
Federal Home Loan Bank of New York ("FHLBNY")
|
Selective Insurance Company of America ("SICA")
Selective Insurance Company of New York ("SICNY")
|
($ in millions)
|
Admitted Assets
as of December 31, 2015
|
|
Borrowing Limitation
|
|
Amount Borrowed
|
|
Remaining Capacity
|
|
Additional Stock Requirements
|
|||||||
As of September 30, 2016
|
|
|
|
|
||||||||||||
SICSC
|
$
|
594.3
|
|
|
$
|
59.4
|
|
|
27.0
|
|
|
32.4
|
|
|
1.2
|
|
SICSE
|
461.8
|
|
|
46.2
|
|
|
18.0
|
|
|
28.2
|
|
|
0.8
|
|
||
SICA
|
2,140.7
|
|
|
107.0
|
|
|
50.0
|
|
|
57.0
|
|
|
2.6
|
|
||
SICNY
|
403.4
|
|
|
20.2
|
|
|
—
|
|
|
20.2
|
|
|
0.9
|
|
||
Total
|
|
|
$
|
232.8
|
|
|
95.0
|
|
|
137.8
|
|
|
5.5
|
|
($ in millions)
|
Admitted Assets
as of December 31, 2015
|
|
Borrowing Limitation
|
|
Amount Borrowed
|
|
Remaining Capacity
|
||||||
As of September 30, 2016
|
|
|
|
||||||||||
SICSC
|
$
|
594.3
|
|
|
$
|
59.4
|
|
|
28.3
|
|
|
31.1
|
|
SICSE
|
461.8
|
|
|
46.2
|
|
|
18.2
|
|
|
28.0
|
|
||
Total
|
|
|
$
|
105.6
|
|
|
46.5
|
|
|
59.1
|
|
NRSRO
|
|
Financial Strength Rating
|
|
Outlook
|
A.M. Best
|
|
A
|
|
Stable
|
Moody's Investor Services ("Moody's")
|
|
A2
|
|
Stable
|
Fitch Ratings ("Fitch")
|
|
A+
|
|
Stable
|
Period
|
|
Total Number of
Shares Purchased
1
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased as Part of Publicly
Announced Programs
|
|
Maximum Number of
Shares that May Yet Be Purchased Under the Announced Programs |
|||||
July 1 – 31, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
August 1 - 31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
September 1 - 30, 2016
|
|
14,385
|
|
|
39.35
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
14,385
|
|
|
$
|
39.35
|
|
|
—
|
|
|
—
|
|
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 Accounting 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 Accounting Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.
|
** 101.INS
|
|
XBRL Instance Document.
|
** 101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
** 101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
** 101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
** 101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
** 101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
By: /s/ Gregory E. Murphy
|
October 27, 2016
|
Gregory E. Murphy
|
|
Chairman of the Board and Chief Executive Officer
|
|
|
|
By: /s/ Anthony D. Harnett
|
October 27, 2016
|
Anthony D. Harnett
|
|
Senior Vice President and Chief Accounting Officer
|
|
(principal accounting officer)
|
|
1 Year Selective Insurance Chart |
1 Month Selective Insurance Chart |
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