Selective Insurance Group Inc's Business Segments

Selective Insurance Group, Inc. is a New Jersey-based insurance holding company incorporated in 1977. It owns ten property and casualty insurance subsidiaries operating exclusively in the United States through independent insurance agents and wholesale brokers. Nine subsidiaries are admitted carriers licensed to write specific property and casualty lines in the standard market, while one is a non-admitted carrier authorized to write excess and surplus lines insurance. The company operates through four reportable segments: Standard Commercial Lines, Standard Personal Lines, Excess and Surplus Lines, and Investments. The Standard Commercial Lines segment, accounting for 71% of total revenues and 79% of net premiums written in 2025, serves commercial enterprises, non-profits, and local government agencies primarily in 36 states and the District of Columbia. The Standard Personal Lines segment, representing 8% of revenues and net premiums written, serves individuals in 15 states and includes flood insurance sold nationwide through the National Flood Insurance Program's Write Your Own program. The Excess and Surplus Lines segment, comprising 11% of revenues and 13% of net premiums written, serves commercial customers with unusual or high-risk exposures across all states and the District of Columbia. The Investments segment manages premiums collected and capital management proceeds. Selective Insurance Group holds an A+ financial strength rating from AM Best.

The registrant's operating business segments include an investment segment that generates income from investing insurance premiums and capital management strategies. Net investment income primarily comprises interest earned on fixed income investments and commercial mortgage loans, dividends on equity securities, and income from alternative investments, offset by investment expenses. This segment also includes net realized and unrealized gains and losses on investment securities, resulting from security disposals, losses on securities intended for sale, credit loss expense or benefit, and net unrealized gains and losses on equity securities. Financial performance is measured by net income available to common stockholders and a non-GAAP operating income calculation that excludes after-tax net realized and unrealized gains and losses on investments. The registrant assesses underwriting profitability of insurance operations using the combined ratio, which sums the loss and loss expense ratio, expense ratio, and dividend ratio. The investment segment's financial performance is evaluated using after-tax net investment income and total return, calculated as the ratio of net investment income, net realized and unrealized investment gains or losses, and unrealized investment gains or losses in accumulated other comprehensive income or loss to average invested assets. The investment philosophy involves setting specific risk and return objectives for fixed income, equity, and alternative investment portfolios.