AM Best Affirms Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries
OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of the pooled members of Selective Insurance Group (Selective). Additionally, AM Best has affirmed the Long-Term ICR of “bbb+” and the Long-Term Issue Credit Ratings (Long-Term IR) of the ultimate parent, Selective Insurance Group, Inc. (SIGI) [NASDAQ: SIGI]. The outlook of these Credit Ratings (ratings) is positive. All companies are headquartered in Branchville, NJ. (Please see below for a detailed listing of companies and ratings.)
These ratings reflect Selective’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
Selective’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level, and is offset partially by exposure to catastrophe losses and terrorism. The positive outlooks reflect improved profitability over the past five years on an absolute basis and relative to its peers. AM Best expects that the group will continue to improve the underwriting results in its more challenged commercial auto and excess and surplus books of business through initiatives and targeted rate increases. 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.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed 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 & Casualty Insurance Company
The following Long-Term IRs have been affirmed:
Selective Insurance Group, Inc.—
–“bbb+” on $49.9 million 7.25% senior unsecured notes, due 2034
–“bbb+” on $99.4 million 6.70% senior unsecured notes, due 2035
–“bbb+” on $294.2 million 5.375% senior unsecured notes, due 2049
The following indicative Long-Term IRs have been affirmed on the current shelf registration:
Selective Insurance Group, Inc.—
–“bbb+” on senior unsecured debt
–“bbb” on subordinated debt
–“bbb-” 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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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