AM Best Affirms Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries

Key Terms

Financial Strength Rating (FSR) financial

A financial strength rating (FSR) is an assessment of a company's ability to meet its financial commitments, such as paying debts or funding operations. Think of it as a report card indicating how solid and reliable a company is financially. Investors use this rating to gauge the level of risk involved in investing or doing business with that company.

Long-Term Issuer Credit Ratings financial

Long-term issuer credit ratings are assessments of a borrower's ability to repay debt over a period longer than one year. They help investors understand the level of risk involved in lending to that entity, similar to how a credit score indicates trustworthiness. These ratings influence borrowing costs and investment decisions, guiding investors on the safety and stability of their investments.

senior unsecured notes financial

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

reinsurance program technical

A reinsurance program is a plan where an insurance company shares some of its risks with another company to protect itself from very large or unexpected losses. It acts like an insurance policy for the insurance company, helping it stay financially stable. For investors, understanding a reinsurance program is important because it affects the company's ability to handle large claims and maintain financial health.

Write-Your-Own program regulatory

A "write-your-own program" is an arrangement where investors provide their own funds to purchase securities directly from a company or government, rather than buying through a broker or on the open market. It’s similar to ordering custom-made products instead of choosing from standard options, allowing investors to tailor their investment and often resulting in more favorable terms. This process matters because it can offer early access to new offerings and potentially better prices, influencing investment opportunities.

subordinated debt financial

Subordinated debt is a type of loan that is paid back after other debts have been settled if a company encounters financial trouble. It is considered riskier for lenders because they have lower priority in getting repaid, similar to being last in line during a payout. For investors, this means higher potential returns in exchange for taking on more risk.

preferred stock financial

Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.

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OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of the pooled members of Selective Insurance Group (Selective). Additionally, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IR) of the ultimate parent, Selective Insurance Group, Inc. [NASDAQ: SIGI]. The outlook of these Credit Ratings (ratings) is stable. In addition, AM Best has assigned a Long-Term IR of “a-” (Excellent) to $397.3 million, 5.9% senior unsecured notes due 2035 of Selective Insurance Group, Inc. The outlook assigned to this rating is stable. All companies are headquartered in Branchville, NJ. (Please see below for a detailed listing of companies and ratings.)

The ratings reflect Selective’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

Selective’s balance sheet strength is supported by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s balance sheet strength is complemented further by its comprehensive reinsurance program, low-risk investment profile and financial flexibility provided by its publicly traded parent. Limiting factors include elevated exposure to catastrophe losses and consecutive years of net adverse reserve development. Selective has had a history of underwriting profitability, growing investment income and results that are favorable mostly to the commercial casualty composite in five-year and 10-year averages. High historical return on equity is reflective of traditionally high operating leverage compared with the commercial casualty composite. The group’s underwriting results have benefited from a low- to medium-hazard business mix, conservative underwriting philosophy and catastrophe risk mitigation initiatives. In addition, the group continues to implement various underwriting initiatives and targeted rate increases across its book of business. For standard personal lines, underwriting is continuing migration of products and services toward the mass affluent market, thereby building an increased limit profile. The favorable business profile is based partly on the group’s close working relationship with its selected agencies and the use of technology to enhance its underwriting and servicing capabilities. Selective classifies its business into three segments: standard commercial lines, 79% of total 2024 net premiums written; excess and surplus lines, 12%; and standard personal lines, 9%. In addition, Selective is a servicing carrier in the “Write-Your-Own” program of the National Flood Insurance Program administered by the Federal Emergency Management Agency.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed with stable outlooks for the pooled members of Selective Insurance Group:

• Selective Insurance Company of America
• Selective Way Insurance Company
• Selective Insurance Company of the Southeast
• Selective Insurance Company of New York
• Selective Insurance Company of South Carolina
• Selective Insurance Company of New England
• Selective Auto Insurance Company of New Jersey
• Mesa Underwriters Specialty Insurance Company
• Selective Casualty Insurance Company
• Selective Fire and Casualty Insurance Company

The following Long-Term IRs have been affirmed with stable outlooks:

Selective Insurance Group, Inc.—
-- “a-” (Excellent) on $49.9 million 7.25% senior unsecured notes, due 2034 ($49.8 million outstanding)
-- “a-” (Excellent) on $99.6 million 6.70% senior unsecured notes, due 2035 ($99.4 million outstanding)
-- “a-” (Excellent) on $294.5 million 5.375% senior unsecured notes, due 2049 ($292.6 million outstanding)

The following indicative Long-Term IRs have been affirmed with stable outlooks on the current shelf registration:

Selective Insurance Group, Inc.—
-- “a-” (Excellent) on senior unsecured debt
-- “bbb+” (Good) on subordinated debt
-- “bbb” (Good) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251204938010/en/

Michael Cantalino
Senior Financial Analyst
+1 908 882 2243
michael.cantalino@ambest.com

Edin Imsirovic
Director
+1 908 882 1903
edin.imsirovic@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

Source: AM Best