BRANCHVILLE, N.J., Jan. 30, 2020 /PRNewswire/ --
In the fourth quarter of 2019:
- Net premiums written ("NPW") increased 8%
- GAAP combined ratio was 91.8%
- Overall renewal pure price averaged 3.8%
- After-tax net investment income was up 6%, to $47 million
- Annualized ROE was 15.1% and non-GAAP operating ROE1
was 15.2%
Selective Insurance Group, Inc. (NASDAQ: SIGI) today reported
record financial results for the fourth quarter ended
December 31, 2019, with net income per diluted share and
record non-GAAP operating income1 per diluted share of
$1.36 and $1.37, respectively.
"We are proud of our financial results, including our full-year
non-GAAP operating ROE of 13.3%, which marks our sixth consecutive
year of double-digit ROEs placing us in an elite group of insurance
companies achieving similar results," said Gregory E. Murphy, Chairman and Chief Executive
Officer. "Non-GAAP Operating ROE was reduced by 130 basis
points in the quarter, and 60 basis points for the full year, due
to unrealized gains that increased book value by 9% in 2019.
In the fourth quarter, we generated an excellent 91.8% GAAP
combined ratio, which benefited from lower catastrophe losses and
3.0 points of favorable prior year casualty reserve
development. For the year, the 93.7% GAAP combined ratio
included 3.1 points of catastrophe losses, which was below our
annual expectations of 3.5 points, and 2.3 points of favorable
prior year casualty reserve development. Investment results
remained strong, with net investment income, after-tax, up 6% to
$47 million in the quarter and up
13%, to $181.2 million for the
year. For the year, the change in unrealized after-tax gains
on our available-for-sale securities amounted to $169 million."
"Net premiums written increased 8% in the quarter about twice
the expected annual industry growth rate, driven by strong
retention and new business in our Standard Commercial Lines
segment, partially offset by lower Standard Personal Lines and
Excess and Surplus Lines premiums," Mr. Murphy added.
"Overall renewal pure price increases were 3.8%, in line with
expected loss trend, which positions us well for the future.
Heading into 2020, our balance sheet remains extremely strong, with
a record of $2.2 billion of
stockholders' equity and excellent financial liquidity, and we
continue to generate strong cash flow from operations of 18% of net
premiums written in 2019."
Mr. Murphy continued, "We continue to excel in a competitive
insurance marketplace. Successful execution on our strategic
objectives has been key to driving our best-in-class operating and
financial performance. Late last year we announced our
well-developed management transition plan with John Marchioni to assume the role of Chief
Executive Officer, effective February
1, 2020. As I step into my new role as Executive
Chairman, I have absolute confidence that, under John's leadership,
Selective will continue to execute on achieving its objectives in
the coming years, while becoming a truly unique company in the
marketplace."
Operating Highlights
Consolidated
Financial Results
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ and shares in
millions, except per share data
|
2019
|
2018
|
2019
|
2018
|
Net premiums
written
|
$
|
628.2
|
|
|
582.8
|
|
8
|
|
%
|
$
|
2,679.4
|
|
|
2,514.3
|
|
7
|
|
%
|
Net premiums
earned
|
668.4
|
|
|
625.3
|
|
7
|
|
|
2,597.2
|
|
|
2,436.2
|
|
7
|
|
|
Net investment income
earned
|
57.6
|
|
|
54.1
|
|
6
|
|
|
222.5
|
|
|
195.3
|
|
14
|
|
|
Net realized and
unrealized (losses) gains, pre-tax
|
(0.9)
|
|
|
(37.9)
|
|
98
|
|
|
14.4
|
|
|
(54.9)
|
|
126
|
|
|
Total
revenues
|
728.9
|
|
|
643.0
|
|
13
|
|
|
2,846.5
|
|
|
2,586.1
|
|
10
|
|
|
Net underwriting
income, after-tax
|
43.1
|
|
|
35.9
|
|
20
|
|
|
129.6
|
|
|
95.7
|
|
35
|
|
|
Net investment
income, after-tax
|
46.8
|
|
|
44.2
|
|
6
|
|
|
181.2
|
|
|
160.5
|
|
13
|
|
|
Net income
|
81.9
|
|
|
45.8
|
|
79
|
|
|
271.6
|
|
|
178.9
|
|
52
|
|
|
Non-GAAP operating
income1
|
82.5
|
|
|
72.0
|
|
15
|
|
|
264.4
|
|
|
218.6
|
|
21
|
|
|
Combined
ratio
|
91.8
|
|
%
|
92.7
|
|
(0.9)
|
|
pts
|
93.7
|
|
%
|
95.0
|
|
(1.3)
|
|
pts
|
Loss and loss expense
ratio
|
57.6
|
|
|
58.7
|
|
(1.1)
|
|
|
59.7
|
|
|
61.5
|
|
(1.8)
|
|
|
Underwriting expense
ratio
|
34.1
|
|
|
33.7
|
|
0.4
|
|
|
33.8
|
|
|
33.2
|
|
0.6
|
|
|
Dividends to
policyholders ratio
|
0.1
|
|
|
0.3
|
|
(0.2)
|
|
|
0.2
|
|
|
0.3
|
|
(0.1)
|
|
|
Catastrophe
losses
|
1.0
|
|
pts
|
2.4
|
|
(1.4)
|
|
|
3.1
|
|
pts
|
3.6
|
|
(0.5)
|
|
|
Non-catastrophe
property losses and loss expenses2
|
15.1
|
|
|
15.2
|
|
(0.1)
|
|
|
15.8
|
|
|
16.6
|
|
(0.8)
|
|
|
(Favorable) prior
year reserve development on casualty
lines
|
(3.0)
|
|
|
(2.8)
|
|
(0.2)
|
|
|
(2.3)
|
|
|
(1.7)
|
|
(0.6)
|
|
|
Net income per
diluted share
|
$
|
1.36
|
|
|
0.76
|
|
79
|
|
%
|
$
|
4.53
|
|
|
3.00
|
|
51
|
|
%
|
Non-GAAP operating
income per diluted share1
|
1.37
|
|
|
1.20
|
|
14
|
|
|
4.40
|
|
|
3.66
|
|
20
|
|
|
Weighted average
diluted shares
|
60.1
|
|
|
59.8
|
|
—
|
|
|
60.0
|
|
|
59.7
|
|
—
|
|
|
Book value per
share
|
$
|
36.91
|
|
|
30.40
|
|
21
|
|
|
36.91
|
|
|
30.40
|
|
21
|
|
|
Overall Insurance Operations
For the quarter, overall NPW growth was 8%, driven by Standard
Commercial Lines growth of 11%, and the combined ratio was 91.8%,
generating 8.0 points of annualized ROE. For the year,
overall NPW growth was 7% and the combined ratio was 93.7%, which
generated 6.5% of ROE. The expense ratio was 33.8% for the
year, up 0.6 points, driven mainly by profit-based expenses for
agents and employees due to our excellent underwriting results.
Standard Commercial Lines Segment
Standard Commercial Lines premiums, which represented 80% of
total NPW in 2019, were up 11% in the quarter. This
growth reflects strong renewal pure price increases of 3.8%,
retention of 84%, and an increase in new business of 3%, to
$95 million. Our excellent
fourth quarter combined ratio of 90.0% reflected a lower level of
catastrophe losses, favorable prior year casualty reserve
development, as well as the items in the table below. The
favorable prior year casualty reserve development was driven by the
workers compensation line of business, partially offset by
unfavorable development in the general liability and commercial
auto lines of business.
For the year, premiums were up 8%, driven by 3.4% of renewal
pure price increases and an 8% increase in new business. The
combined ratio was 92.9%, compared to 94.3% in 2018. The
favorable prior year casualty reserve development was driven by the
workers compensation line of business.
Standard
Commercial Lines Segment
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ in
millions
|
2019
|
2018
|
2019
|
2018
|
Net premiums
written
|
$
|
500.1
|
|
|
449.4
|
|
11
|
|
%
|
$
|
2,137.1
|
|
|
1,975.7
|
|
8
|
|
%
|
Net premiums
earned
|
530.6
|
|
|
489.8
|
|
8
|
|
|
2,049.6
|
|
|
1,912.2
|
|
7
|
|
|
Combined
ratio
|
90.0
|
|
%
|
92.9
|
|
(2.9)
|
|
pts
|
92.9
|
|
%
|
94.3
|
|
(1.4)
|
|
pts
|
Loss and loss expense
ratio
|
55.0
|
|
|
57.8
|
|
(2.8)
|
|
|
58.0
|
|
|
59.7
|
|
(1.7)
|
|
|
Underwriting expense
ratio
|
34.9
|
|
|
34.8
|
|
0.1
|
|
|
34.7
|
|
|
34.2
|
|
0.5
|
|
|
Dividends to
policyholders ratio
|
0.1
|
|
|
0.3
|
|
(0.2)
|
|
|
0.2
|
|
|
0.4
|
|
(0.2)
|
|
|
Catastrophe
losses
|
0.4
|
|
pts
|
2.5
|
|
(2.1)
|
|
|
2.6
|
|
pts
|
3.4
|
|
(0.8)
|
|
|
Non-catastrophe
property losses and loss expenses2
|
13.2
|
|
|
13.4
|
|
(0.2)
|
|
|
13.8
|
|
|
14.3
|
|
(0.5)
|
|
|
(Favorable) prior
year reserve development on casualty
lines
|
(4.9)
|
|
|
(4.5)
|
|
(0.4)
|
|
|
(3.4)
|
|
|
(3.0)
|
|
(0.4)
|
|
|
Standard Personal Lines Segment
Standard Personal Lines premiums, which represented 11% of total
NPW in 2019, were down 3% in the quarter, driven by a 9% reduction
in new business, reflecting an increasingly competitive
marketplace. Renewal pure price increases averaged 4.2%, and
retention was 83% in the quarter. The combined ratio in the
fourth quarter was 98.5%, up 6.7 points from a year ago, driven
principally by catastrophe and non-catastrophe property losses, as
well as the items in the table below. The unfavorable prior
year casualty reserve development was driven by a modest reserve
increase for the personal auto line of business.
For the year, premiums were down 2%, driven by a 21% reduction
in new business. Renewal pure price increases were 5.0%,
while retention was 83%. The combined ratio was 97.3%, a
1.5-point increase from a year ago, the drivers of which are
outlined in the table below.
Standard Personal
Lines Segment
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ in
millions
|
2019
|
2018
|
2019
|
2018
|
Net premiums
written
|
$
|
70.9
|
|
|
72.7
|
|
(3)
|
|
%
|
$
|
304.6
|
|
|
309.3
|
|
(2)
|
|
%
|
Net premiums
earned
|
76.6
|
|
|
77.4
|
|
(1)
|
|
|
307.7
|
|
|
304.4
|
|
1
|
|
|
Combined
ratio
|
98.5
|
|
%
|
91.8
|
|
6.7
|
|
pts
|
97.3
|
|
%
|
95.8
|
|
1.5
|
|
pts
|
Loss and loss expense
ratio
|
69.0
|
|
|
63.8
|
|
5.2
|
|
|
68.6
|
|
|
67.9
|
|
0.7
|
|
|
Underwriting expense
ratio
|
29.5
|
|
|
28.0
|
|
1.5
|
|
|
28.7
|
|
|
27.9
|
|
0.8
|
|
|
Catastrophe
losses
|
3.9
|
|
pts
|
(0.8)
|
|
4.7
|
|
|
6.8
|
|
pts
|
5.7
|
|
1.1
|
|
|
Non-catastrophe
property losses and loss expenses2
|
33.9
|
|
|
32.1
|
|
1.8
|
|
|
34.0
|
|
|
34.6
|
|
(0.6)
|
|
|
Unfavorable prior
year reserve development on casualty
lines
|
5.2
|
|
|
5.8
|
|
(0.6)
|
|
|
1.9
|
|
|
1.5
|
|
0.4
|
|
|
Excess and Surplus Lines Segment
Excess and Surplus Lines premiums, which represented 9% of total
NPW in 2019, decreased 6% in the quarter. New business
declined 16%, primarily related to the exit of specific classes and
the year over year impact of one particularly large relationship we
re-established in 2018, partially offset by overall renewal pure
price increases of 3.7%. Over the past few years, we have
focused on numerous profitability initiatives that included
targeted price increases, business mix shifts, modifying certain
underwriting standards, and the decision to exit specific
underperforming classes of business, while entering into new
distribution relationships. The combined ratio for the fourth
quarter was 99.5%, a 6.6-point increase, driven by the factors
outlined in the table below, coupled with an increase in the
current accident year loss ratio of 3.3 points. For the
quarter, we incurred a modest amount of unfavorable prior year
casualty reserve development that increased the combined ratio 3.3
points.
For the year, premiums were up 4%, driven by overall renewal
pure price increases of 4.0%. The combined ratio was a
profitable 95.9%, a 4.4-point decrease from a year ago, the drivers
of which are outlined in the table below, coupled with an increase
in the current accident year loss ratio of 1.6 points.
Excess and Surplus
Lines Segment
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ in
millions
|
2019
|
2018
|
2019
|
2018
|
Net premiums
written
|
$
|
57.2
|
|
|
60.7
|
|
(6)
|
|
%
|
$
|
237.8
|
|
|
229.3
|
|
4
|
|
%
|
Net premiums
earned
|
61.2
|
|
|
58.1
|
|
5
|
|
|
239.8
|
|
|
219.6
|
|
9
|
|
|
Combined
ratio
|
99.5
|
|
%
|
92.9
|
|
6.6
|
|
pts
|
95.9
|
|
%
|
100.3
|
|
(4.4)
|
|
pts
|
Loss and loss expense
ratio
|
66.3
|
|
|
61.5
|
|
4.8
|
|
|
63.5
|
|
|
68.5
|
|
(5.0)
|
|
|
Underwriting expense
ratio
|
33.2
|
|
|
31.4
|
|
1.8
|
|
|
32.4
|
|
|
31.8
|
|
0.6
|
|
|
Catastrophe
losses
|
2.3
|
|
pts
|
6.0
|
|
(3.7)
|
|
|
2.4
|
|
pts
|
2.8
|
|
(0.4)
|
|
|
Non-catastrophe
property losses and loss expenses2
|
8.4
|
|
|
7.3
|
|
1.1
|
|
|
9.3
|
|
|
12.0
|
|
(2.7)
|
|
|
Unfavorable prior
year reserve development on casualty
lines
|
3.3
|
|
|
—
|
|
3.3
|
|
|
0.8
|
|
|
5.5
|
|
(4.7)
|
|
|
Investments Segment
Net investment income, after-tax, was up 6% in the quarter to
$47 million. For the year,
after-tax investment income was $181
million, up 13% from 2018. The strong growth in both
periods was driven by: (i) active portfolio management; (ii)
excellent operating cash flow that, for the year, was 18% of net
premiums written, and (iii) the $106
million of net proceeds from our 5.375% senior notes
issuance in the first quarter of 2019. The after-tax earned
income yield on the portfolio averaged 2.9% for the year, while
invested assets per dollar of stockholders' equity was down
$0.28, to $3.05, at December 31,
2019, generating 9.1 points of ROE in 2019. For the
year, the change in unrealized after-tax gains on our
available-for-sale securities reduced our invested assets to
stockholders' equity by approximately $0.15.
Investments
Segment
|
Quarter ended
December 31,
|
Change
|
Year-to-Date
December 31,
|
Change
|
$ in millions,
except per share data
|
2019
|
2018
|
2019
|
2018
|
Net investment income
earned, after-tax
|
$
|
46.8
|
|
|
44.2
|
|
6
|
|
%
|
$
|
181.2
|
|
|
160.5
|
|
13
|
|
%
|
Net investment income
per share
|
0.78
|
|
|
0.74
|
|
5
|
|
|
3.02
|
|
|
2.69
|
|
12
|
|
|
Effective tax
rate
|
18.7
|
|
%
|
18.3
|
|
0.4
|
|
pts
|
18.6
|
|
%
|
17.8
|
|
0.8
|
|
pts
|
Average
yields:
|
|
|
|
|
|
|
|
|
|
|
Fixed income
securities:
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
3.5
|
|
%
|
3.6
|
|
(0.1)
|
|
pts
|
3.6
|
|
%
|
3.4
|
|
0.2
|
|
pts
|
After-tax
|
2.8
|
|
|
2.9
|
|
(0.1)
|
|
|
2.9
|
|
|
2.8
|
|
0.1
|
|
|
Portfolio:
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
|
3.5
|
|
|
3.7
|
|
(0.2)
|
|
|
3.5
|
|
|
3.4
|
|
0.1
|
|
|
After-tax
|
2.8
|
|
|
3.0
|
|
(0.2)
|
|
|
2.9
|
|
|
2.8
|
|
0.1
|
|
|
Annualized ROE
contribution
|
8.6
|
|
|
10.0
|
|
(1.4)
|
|
|
9.1
|
|
|
9.2
|
|
(0.1)
|
|
|
Balance Sheet
$ in millions,
except per share data
|
December 31,
2019
|
December 31,
2018
|
Change
|
Total
assets
|
$
|
8,797.2
|
|
7,952.7
|
|
11
|
%
|
Total
investments
|
6,688.7
|
|
5,960.7
|
|
12
|
|
Long-term
debt
|
550.6
|
|
439.5
|
|
25
|
|
Stockholders'
equity
|
2,194.9
|
|
1,791.8
|
|
22
|
|
Invested assets per
dollar of stockholders' equity
|
3.05
|
|
3.33
|
|
(8)
|
|
Net premiums written
to policyholders' surplus
|
1.4x
|
|
1.4x
|
|
-
|
|
Book value per
share
|
36.91
|
|
30.40
|
|
21
|
|
Book value per share significantly increased 21% in 2019, driven
by $4.53 of net income per diluted
share and $2.83 of net unrealized
gains on our fixed income securities portfolio per share, partially
offset by $0.83 of dividends paid to
shareholders. Selective's Board of Directors declared a
$0.23 per share quarterly cash
dividend on common stock that is payable March 2, 2020, to shareholders of record as of
February 14, 2020.
Guidance
For 2020, Selective expects to generate the following
results:
- GAAP combined ratio, excluding catastrophe losses, of 91.5%.
This assumes no prior-year casualty reserve development;
- Catastrophe losses of 3.5 points;
- After-tax net investment income of $185
million, which includes $14
million of after-tax net investment income from our
alternative investments;
- An overall effective tax rate of approximately 19.5%, which
includes an effective tax rate of 18.5% for net investment income,
reflecting a tax rate of 5.25% for tax-advantaged municipal bonds
and a tax rate of 21% for all other items; and
- Weighted average shares outstanding of 60.5 million.
The supplemental investor package, including financial
information that is not part of this press release, is available on
the Investors page of Selective's website at
www.Selective.com. Selective's quarterly analyst conference
call will be simulcast at 10:00 a.m.
ET, on Friday, January 31,
2020 at www.Selective.com. The webcast will be
available for rebroadcast until the close of business on
March 2, 2020.
About Selective Insurance Group, Inc.
Selective Insurance Group, Inc. is a holding company for 10
property and casualty insurance companies rated "A" (Excellent) by
A.M. Best. Through independent agents, the insurance companies
offer standard and specialty insurance for commercial and personal
risks and flood insurance through the National Flood Insurance
Program's Write Your Own Program. Selective's unique position as
both a leading insurance group and an employer of choice is
recognized in a wide variety of awards and honors, including
listing in the Fortune 1000 and being named one of "America's Best
Mid-Size Employers" by Forbes Magazine. For more information about
Selective, visit www.Selective.com.
1Reconciliation of Net Income to Non-GAAP
Operating Income and Certain Other Non-GAAP Measures
Non-GAAP operating income, non-GAAP operating income per diluted
share, and non-GAAP operating return on equity differ from net
income, net income per diluted share, and return on equity,
respectively, by the exclusion of: (i) after-tax net realized
and unrealized gains and losses on investments; and (ii) after-tax
debt retirement costs. They are used as important financial
measures by management, analysts, and investors, because the
realization of net investment gains and losses on sales of
securities in any given period is largely discretionary as to
timing. In addition, these net realized investment gains and
losses, other-than-temporary investment impairments that are
charged to earnings, unrealized gains and losses on equity
securities, and the debt retirement costs could distort the
analysis of trends. These operating measurements are not
intended as a substitute for net income, income per share, or
return on equity prepared in accordance with U.S. generally
accepted accounting principles (GAAP). Reconciliations of net
income, net income per diluted share, and return on equity to
non-GAAP operating income, non-GAAP operating income per diluted
share, and non-GAAP operating return on equity, respectively, are
provided in the tables below.
Note: All amounts included in this release exclude intercompany
transactions.
Reconciliation of Net Income to Non-GAAP Operating
Income
$ in
millions
|
Quarter ended
December 31,
|
|
Year-to-Date
December 31,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
|
$
|
81.9
|
|
|
45.8
|
|
|
271.6
|
|
|
178.9
|
|
Net realized and
unrealized losses (gains), before tax
|
0.9
|
|
|
37.9
|
|
|
(14.4)
|
|
|
54.9
|
|
Debt retirement
costs, before tax
|
—
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
Tax on reconciling
items
|
(0.2)
|
|
|
(11.7)
|
|
|
3.0
|
|
|
(15.3)
|
|
Non-GAAP operating
income
|
$
|
82.5
|
|
|
72.0
|
|
|
264.4
|
|
|
218.6
|
|
Reconciliation of Net Income per Diluted Share to Non-GAAP
Operating Income per Diluted Share
|
Quarter ended
December 31,
|
|
Year-to-Date
December 31,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income per
diluted share
|
$
|
1.36
|
|
|
0.76
|
|
|
4.53
|
|
|
3.00
|
|
Net realized and
unrealized losses (gains), before tax
|
0.01
|
|
|
0.63
|
|
|
(0.24)
|
|
|
0.92
|
|
Debt retirement
costs, before tax
|
—
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
Tax on reconciling
items
|
—
|
|
|
(0.20)
|
|
|
0.04
|
|
|
(0.26)
|
|
Non-GAAP operating
income per diluted share
|
$
|
1.37
|
|
|
1.20
|
|
|
4.40
|
|
|
3.66
|
|
Reconciliation of Return on Equity to Non-GAAP Operating
Return on Equity
|
Quarter ended
December 31,
|
|
Year-to-Date
December 31,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Annualized Return on
Equity
|
15.1
|
|
%
|
10.4
|
|
|
13.6
|
|
|
10.2
|
|
Net realized and
unrealized losses (gains), before tax
|
0.2
|
|
|
8.6
|
|
|
(0.7)
|
|
|
3.1
|
|
Debt retirement
costs, before tax
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Tax on reconciling
items
|
(0.1)
|
|
|
(2.7)
|
|
|
0.2
|
|
|
(0.8)
|
|
Annualized Non-GAAP
Operating Return on Equity
|
15.2
|
|
%
|
16.3
|
|
|
13.3
|
|
|
12.5
|
|
Note: Amounts in the tables above may not foot due to
rounding.
2 Non-catastrophe property losses and the
non-catastrophe property loss ratios now include loss
expenses. All prior periods presented have been updated to
reflect this change.
Forward-Looking Statements
In this press release, Selective and its management discuss and
make statements based on currently available information regarding
their intentions, beliefs, current expectations, and projections
regarding Selective's future operations and performance.
Certain statements in this report, including information
incorporated by reference, are "forward-looking statements" as that
term is defined in the Private Securities Litigation Reform Act of
1995 ("PSLRA"). The PSLRA provides a safe harbor under the
Securities Act of 1933 and the Securities Exchange Act of 1934 for
forward-looking statements. These statements relate to our
intentions, beliefs, projections, estimations, or forecasts of
future events or our future financial performance and involve known
and unknown risks, uncertainties, and other factors that may cause
our or our industry's actual results, levels of activity, or
performance to be materially different from those expressed or
implied by the forward-looking statements. In some cases, you
can identify forward-looking statements by use of words such as
"may," "will," "could," "would," "should," "expect," "plan,"
"anticipate," "target," "project," "intend," "believe," "estimate,"
"predict," "potential," "pro forma," "seek," "likely," or
"continue" or other comparable terminology. These statements
are only predictions, and we can give no assurance that such
expectations will prove to be correct. We undertake no
obligation, other than as may be required under the federal
securities laws, to publicly update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Factors that could cause our actual results to differ materially
from those projected, forecasted, or estimated by us in
forward-looking statements, include, but are not limited to:
- difficult conditions in global capital markets and the
economy;
- deterioration in the public debt and equity markets and private
investment marketplace that could lead to investment losses and
fluctuations in interest rates;
- ratings downgrades could affect investment values and,
therefore, statutory surplus;
- the adequacy of our loss reserves and loss expense
reserves;
- the frequency and severity of natural and man-made catastrophic
events, including, but not limited to, hurricanes, tornadoes,
windstorms, earthquakes, hail, terrorism, including cyber-attacks,
explosions, severe winter weather, floods, and fires;
- adverse market, governmental, regulatory, legal, or judicial
conditions or actions;
- the concentration of our business in the Eastern Region;
- the cost and availability of reinsurance;
- our ability to collect on reinsurance and the solvency of our
reinsurers;
- the impact of changes in U.S. trade policies and imposition of
tariffs on imports that may lead to higher than anticipated
inflationary trends for our loss and loss expenses;
- uncertainties related to insurance premium rate increases and
business retention;
- changes in insurance regulations that impact our ability to
write and/or cease writing insurance policies in one or more
states;
- the effects of data privacy or cyber security laws and
regulations on our operations;
- major defect or failure in our internal controls or information
technology and application systems that result in harm to our brand
in the marketplace, increased senior executive focus on crisis and
reputational management issues and/or increased expenses,
particularly if we experience a significant privacy breach;
- recent federal financial regulatory reform provisions that
could pose certain risks to our operations;
- our ability to maintain favorable ratings from rating agencies,
including A.M. Best, Standard & Poor's, Moody's, and
Fitch;
- our entry into new markets and businesses; and
- other risks and uncertainties we identify in filings with the
United States Securities and Exchange Commission, including, but
not limited to, our Annual Report on Form 10-K and other periodic
reports.
These risk factors may not be exhaustive. We operate in a
continually changing business environment, and new risk factors
emerge from time-to-time. We can neither predict such new
risk factors nor can we assess the impact, if any, of such new risk
factors on our businesses or the extent to which any factor or
combination of factors may cause actual results to differ
materially from those expressed or implied in any forward-looking
statements in this report. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed
in this report might not occur.
Selective's SEC filings can be accessed through the Investors
page of Selective's website, www.Selective.com, or through the
SEC's EDGAR Database at www.sec.gov (Selective EDGAR CIK No.
0000230557).
View original content to download
multimedia:http://www.prnewswire.com/news-releases/selective-reports-results-for-the-fourth-quarter-of-2019---record-net-income-per-diluted-share-of-1-36-and-record-non-gaap-operating-income1-per-diluted-share-of-1-37-full-year-2019-record-net-income-per-diluted-share-of-4-5--300996471.html
SOURCE Selective Insurance Group, Inc.