Profile: Selective Insurance Group Inc (SIGI.OQ)
17 May 2019
Selective Insurance Group, Inc., incorporated in August 1977, is a holding company. As of December 31, 2016, the Company had 10 insurance subsidiaries, nine of which were licensed by various state departments of insurance to write specific lines of property and casualty insurance business in the standard market. The remaining subsidiary is authorized by various state insurance departments to write property and casualty insurance in the excess and surplus lines (E&S) market. The Company operates its business through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines and Investments. Its Standard Commercial Lines segment consists of insurance products and services provided in the standard marketplace to its commercial customers, including businesses, non-profit organizations, and local government agencies. Its Standard Personal Lines segment consists of insurance products and services, including flood insurance coverage that it writes through the National Flood Insurance Program (NFIP), provided primarily to individuals acquiring coverage in the standard marketplace. Its E&S Lines segment consists of insurance products and services provided to customers who have not obtained coverage in the standard marketplace. The investment segment invests insurance premiums, as well as amounts generated through its capital management strategies, which includes the issuance of debt and equity securities.
The Company sells various types of insurance under its insurance segments that fall into three categories: property insurance, casualty insurance and flood insurance. Property insurance covers the financial consequences of accidental loss of an insured's real and/or personal property. Property claims are reported and settled in a relatively short period of time. Casualty insurance covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party as a result of an insured's negligent acts, omissions or legal liabilities. Casualty claims takes several years to be reported and settled. Flood insurance generally covers property losses under the Federal Government's Write Your Own (WYO) program of the NFIP. Flood insurance premiums and losses are 100% ceded to the NFIP. The Company underwrites its business primarily through traditional insurance. Its E&S Lines products and services are sold through its subsidiary, Mesa Underwriters Specialty Insurance Company (MUSIC), that provides a nationally-authorized non-admitted platform to write commercial and personal E&S business. The principal types of policies the Company writes include commercial property, commercial automobile, general liability, workers compensation, businessowners' policy, bonds (fidelity and surety), homeowners, personal automobile, personal umbrella and flood.
The Company sells its products and services in a range of geographic markets. As of December 31, 2016, Standard Commercial Lines products and services were sold in 22 states located in the Eastern and Midwestern regions of the United States and the District of Columbia. As of December 31, 2016, Standard Personal Lines products and services were sold in 13 states in the Eastern and Midwestern regions of the United States, except for the flood portion of this segment, which was sold in over 50 states and the District of Columbia. As of December 31, 2016, E&S Lines were sold in all 50 states and the District of Columbia. As of December 31, 2016, the Company had 1,180 independent retail agents selling its Standard Commercial Lines business, 710 of which also sold its Standard Personal Lines business (excluding flood). In addition, as of December 31, 2016, the Company had 5,600 distribution partners selling its flood insurance products. As of December 31, 2016, E&S Lines were written through approximately 80 wholesale general agents and brokers with 205 office locations, who are its distribution partners in the E&S market. The Company's investment portfolio includes fixed income securities, equity securities, short-term investments and other investments, including alternatives.
The Company competes with Cincinnati Financial Corporation, Erie Indemnity Company, The Hanover Insurance Group, Inc., United Fire Group, Inc., The Hartford Financial Services Group, Inc., Liberty Mutual Holding Company Inc., Nationwide Mutual Insurance Company, The Travelers Companies, Inc., Zurich Insurance Group, Ltd., State Farm Mutual Automobile Insurance Company, Allstate Corporation, The Government Employees Insurance Company, The Progressive Corporation, W. R. Berkley Company, Argo Group International Holding Ltd, Validus Group, Meadowbrook Insurance Group, IFG Companies, Berkshire Hathaway, Inc., Markel Corporation, Lemonade, Attune and Metromile.
Selective Insurance Group Inc
40 Wantage Ave
BRANCHVILLE NJ 07890-0001