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Form 8-K SELECTIVE INSURANCE GROU For: Aug 03

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August 3, 2022 4:23 PM EDT
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)August 3, 2022

SELECTIVE INSURANCE GROUP, INC.
(Exact name of registrant as specified in its charter)

New Jersey001-3306722-2168890
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

40 Wantage Avenue, Branchville, New Jersey 07890
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (973) 948-3000

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol (s)Name of each exchange on which registered
Common Stock, par value $2 per shareSIGIThe Nasdaq Stock Market LLC
Depositary Shares, each representing a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, without par valueSIGIPThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐


Section 2 – Financial Information

Item 2.02.    Results of Operations and Financial Condition.

On August 3, 2022, Selective Insurance Group, Inc. (the “Company”) issued a press release announcing results for the second quarter ended June 30, 2022. The press release is attached hereto as Exhibit 99.1.


Section 7 – Regulation FD

Item 7.01.    Regulation FD Disclosure.

Attached as Exhibit 99.2 is supplemental financial information about the Company.

The information contained in Item 2.02 and Item 7.01 of this report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. The Company makes no admission as to the materiality of any information in this report or the exhibits attached hereto.


Section 9 – Financial Statements and Exhibits

Item 9.01.    Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No.    Description of Exhibit

    99.1     Press Release of Selective Insurance Group, Inc. dated August 3, 2022
    99.2     Financial Supplement, Second Quarter 2022
    104    The cover page from this Current Report on Form 8-K, formatted in Inline XBRL



SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SELECTIVE INSURANCE GROUP, INC.
Date:August 3, 2022By:/s/ Michael H. Lanza
Michael H. Lanza
Executive Vice President and General Counsel



Exhibit 99.1
imageb.jpg

Selective Reports Second Quarter 2022 Results, Including Net Income of $0.61 per Diluted Common Share and Non-GAAP Operating Income1 of $1.17 per Diluted Common Share

Second Quarter Return on Common Equity ("ROE") of 6.0% and Non-GAAP Operating ROE1 of 11.4%

In the second quarter of 2022, we reported:

•Net premiums written ("NPW") increased 12% compared to the second quarter of 2021;
•GAAP combined ratio of 95.5%;
•Commercial Lines renewal pure price increases averaged 5.3%, compared to 4.8% in the first quarter of 2022;
•After-tax net investment income of $57 million, down 16% compared to the second quarter of 2021;
•Book value per common share of $39.68, down 7% in the second quarter; and
•Adjusted book value per common share¹ of $44.18, up 1% in the second quarter.
    
Branchville, NJ - August 3, 2022 - Selective Insurance Group, Inc. (NASDAQ: SIGI) reported financial results for the second quarter ended June 30, 2022, with net income per diluted common share of $0.61 and non-GAAP operating income1 per diluted common share of $1.17. The second quarter combined ratio was a profitable 95.5%, with 5.5 points of catastrophe losses, mainly tied to severe Midwest weather impacting the Company's Standard Personal Lines segment. The non-GAAP operating ROE was 11.4%, and NPW increased 12% from a year ago. NPW increased 12% in our Standard Commercial Lines segment and 13% in our E&S segment, both driven by renewal pure price increases, solid retention, and exposure growth. Our Standard Personal Lines segment generated NPW growth of 5%. For the quarter, the Investments segment contributed 9.1 points of annualized ROE.

"Our underwriting discipline continues to be the main driver for Selective's consistent, profitable growth. Despite challenging markets and higher than expected catastrophe losses from several smaller events, we delivered solid underwriting results and investment performance," said John Marchioni, President and CEO.

"Our strong distribution relationships and sophisticated underwriting tools drive our ability to consistently balance profitability and growth. Our decade-long focus on obtaining appropriate risk-adjusted pricing has enabled us to execute successfully despite greater loss trend uncertainty. Our balance sheet remains extremely strong, and we continue to enhance our market position with our customers and distribution partners," continued Mr. Marchioni.






















1


Operating Highlights
Consolidated Financial ResultsQuarter ended June 30,ChangeYear-to-Date June 30, Change
$ and shares in millions, except per share data2022202120222021
Net premiums written$930.7 833.2 12 %$1,820.5 1,631.4 12 %
Net premiums earned834.4 740.5 13 1,646.7 1,465.5 12 
Net investment income earned70.2 83.7 (16)142.8 153.4 (7)
Net realized and unrealized gains (losses), pre-tax(42.9)10.1 (526)(83.2)15.2 (648)
Total revenues864.8 840.5 3 1,710.9 1,644.4 4 
Net underwriting income, after-tax29.8 60.0 (50)73.9 121.3 (39)
Net investment income, after-tax56.7 67.4 (16)115.2 123.8 (7)
Net income available to common stockholders37.2 119.6 (69)91.3 226.4 (60)
Non-GAAP operating income1
71.1 111.6 (36)157.0 214.4 (27)
Combined ratio95.5 %89.8 5.7 pts94.3 %89.5 4.8 pts
Loss and loss expense ratio62.9 56.9 6.0 61.8 56.9 4.9 
Underwriting expense ratio32.5 32.7 (0.2)32.3 32.4 (0.1)
Dividends to policyholders ratio0.1 0.2 (0.1)0.2 0.2 — 
Net catastrophe losses5.5 pts3.1 2.4 4.0 pts3.6 0.4 
Non-catastrophe property losses and loss expenses16.6 14.5 2.1 17.5 15.2 2.3 
(Favorable) prior year reserve development on casualty lines(1.4)(2.3)0.9 (1.9)(3.5)1.6 
Net income available to common stockholders per diluted common share$0.61 1.98 (69)%$1.50 3.74 (60)%
Non-GAAP operating income per diluted common share1
1.17 1.85 (37)2.58 3.54 (27)
Weighted average diluted common shares60.860.51 60.860.51 
Book value per common share$39.68 44.78 (11)39.68 44.78 (11)
Adjusted book value per common share¹44.18 40.56 9 44.18 40.56 9 

Overall Insurance Operations

For the second quarter, overall NPW increased 12% from a year ago, reflecting average renewal pure price increases of 5.0%, solid retention, and exposure growth. Our combined ratio was 95.5% in the quarter, up from 89.8% a year ago, with the increase driven by higher catastrophe losses and lower favorable casualty reserve development. In addition, our underlying combined ratio, which excludes catastrophe losses and casualty reserve development, was 91.4% this quarter, compared to 89.0% a year ago. The 2.4-point increase in our underlying combined ratio was principally driven by a 2.1-point increase in non-catastrophe property losses. For the second quarter of 2022, non-catastrophe property losses were 0.9 points above expectations, due to higher severity, driven by inflationary pressures on new and used car prices, auto repair costs, and building materials and labor costs. In the second quarter of 2021, non-catastrophe property losses were 0.7 points below expectations, driven by lower frequencies. Our Insurance Operations generated 4.8 points of annualized ROE in the quarter.

Standard Commercial Lines Segment

For the second quarter, Standard Commercial Lines premiums (representing 82% of total NPW) increased 12% compared to a year ago. The premium growth reflected average renewal pure price increases of 5.3% and higher retention of 86%. The second quarter combined ratio was 93.1%. The following table shows the variances driving the increase relative to the 88.7% combined ratio a year ago:

Standard Commercial Lines SegmentQuarter ended June 30,ChangeYear-to-Date June 30, Change
$ in millions2022202120222021
Net premiums written $760.3 677.1 12 %$1,497.9 1,342.7 12 %
Net premiums earned680.2 599.8 13 1,341.7 1,188.9 13 
Combined ratio93.1 %88.7 4.4 pts93.4 %88.4 5.0 pts
Loss and loss expense ratio59.7 55.0 4.7 60.1 55.0 5.1 
Underwriting expense ratio33.2 33.5 (0.3)33.1 33.2 (0.1)
Dividends to policyholders ratio0.2 0.2 — 0.2 0.2 — 
Net catastrophe losses3.3 pts1.9 1.4 2.8 pts2.3 0.5 
Non-catastrophe property losses and loss expenses14.6 12.4 2.2 16.0 13.3 2.7 
(Favorable) prior-year reserve development on casualty lines(1.8)(2.5)0.7 (2.4)(3.8)1.4 



2


Standard Personal Lines Segment

For the second quarter, Standard Personal Lines premiums (representing 9% of total NPW) increased 5% compared to a year ago. Renewal pure price increases averaged 0.6%, retention was 85%, and new business was up 23% compared to last year. The second quarter combined ratio was 116.9%. The following table shows the variances driving the increase relative to the 92.3% combined ratio a year ago:

Standard Personal Lines SegmentQuarter ended June 30,ChangeYear-to-Date June 30, Change
$ in millions2022202120222021
Net premiums written $82.6 78.6 5 %$147.6 143.6 3 %
Net premiums earned73.3 73.3 — 146.0 147.1 (1)
Combined ratio116.9 %92.3 24.6 pts104.0 %90.9 13.1 pts
Loss and loss expense ratio90.8 65.5 25.3 78.9 64.6 14.3 
Underwriting expense ratio26.1 26.8 (0.7)25.1 26.3 (1.2)
Net catastrophe losses28.7 pts6.8 21.9 17.4 pts7.2 10.2 
Non-catastrophe property losses and loss expenses36.7 34.0 2.7 36.0 32.6 3.4 
(Favorable) prior-year reserve development on casualty lines— — — — — — 

Excess and Surplus Lines Segment

For the second quarter, Excess and Surplus Lines premiums (representing 9% of total NPW) increased 13% compared to the prior-year period, driven by average renewal pure price increases of 6.9% and new business growth of 17%. The second quarter combined ratio was 95.8%. The following table shows the variances driving the improvement relative to the 96.6% combined ratio a year ago:

Excess and Surplus Lines SegmentQuarter ended June 30,ChangeYear-to-Date June 30, Change
$ in millions2022202120222021
Net premiums written $87.9 77.5 13 %$175.0 145.1 21 %
Net premiums earned80.9 67.5 20 159.0 129.5 23 
Combined ratio95.8 %96.6 (0.8)pts93.5 %97.8 (4.3)pts
Loss and loss expense ratio63.5 65.0 (1.5)61.3 65.8 (4.5)
Underwriting expense ratio32.3 31.6 0.7 32.2 32.0 0.2 
Net catastrophe losses2.8 pts9.5 (6.7)2.2 pts11.3 (9.1)
Non-catastrophe property losses and loss expenses15.4 11.5 3.9 13.6 12.9 0.7 
(Favorable) prior year reserve development on casualty lines— (3.0)3.0 — (5.4)5.4 





















3


Investments Segment

For the second quarter, after-tax net investment income of $57 million was down $11 million or 16%, compared to last year. After-tax alternative investment income drove the decrease, dropping $16 million, to $7 million, from $24 million in the second quarter of 2021, partially offset by higher income from our fixed income securities portfolio from higher book yields. For the quarter, the overall portfolio's after-tax earned income yield averaged 3.0%, and the fixed income securities portfolio's after-tax earned income yield averaged 3.1%. The investment portfolio's total return was (3.0)%, driven by a sharp increase in interest rates and wider credit spreads during the quarter. These resulted in $207 million of after-tax net unrealized losses on our fixed income securities recorded in accumulated other comprehensive income, and $34 million of after-tax net realized and unrealized losses recorded in net income. Invested assets per dollar of common stockholders' equity was $3.17 at June 30, 2022, and the investment portfolio generated 9.1 points of non-GAAP operating ROE for the quarter.

Investments SegmentQuarter ended June 30,ChangeYear-to-Date June 30, Change
$ in millions, except per share data2022202120222021
Net investment income earned, after-tax$56.7 67.4 (16)%$115.2 123.8 (7)%
Net investment income per common share 0.93 1.11 (16)1.89 2.05 (8)
Effective tax rate19.3 %19.5 (0.2)pts19.4 %19.3 0.1 pts
Average yields:
Portfolio:
Pre-tax3.7 4.4 (0.7)3.7 4.0 (0.3)
After-tax3.0 3.5 (0.5)3.0 3.2 (0.2)
Fixed income securities:
Pre-tax3.8 %3.2 0.6 pts3.5 %3.2 0.3 pts
After-tax3.1 2.6 0.5 2.8 2.6 0.2 
Annualized ROE contribution9.1 10.3 (1.2)8.9 9.5 (0.6)

Balance Sheet

$ in millions, except per share dataJune 30, 2022December 31, 2021Change
Total assets$10,317.7 10,461.4 (1)%
Total investments 7,585.9 8,027.0 (5)
Long-term debt505.1 506.1 — 
Stockholders’ equity2,594.1 2,982.9 (13)
Common stockholders' equity2,394.1 2,782.9 (14)
Invested assets per dollar of common stockholders’ equity3.17 2.88 10 
Net premiums written to policyholders' surplus1.41 x1.33 x0.08 x
Book value per common share$39.68 46.24 (14)
Adjusted book value per common share¹44.18 43.23 2 
Debt to total capitalization16.3 %14.5 %1.8 pts

Book value per common share declined 14% during the first half of 2022. The decline was principally driven by (i) a $7.49 change in after-tax net unrealized losses on our fixed income securities portfolio from higher interest rates and wider credit spreads, and (ii) $0.56 of dividends on our common stock paid to shareholders, partially offset by $1.50 of net income per diluted common share. During the first half of 2022, the Company repurchased 86,059 shares for $6.5 million, or an average price of $75.41 per share. Capacity under our existing repurchase authorization was $90.1 million as of June 30, 2022.

Selective's Board of Directors declared:
•A quarterly cash dividend on common stock of $0.28 per common share payable September 1, 2022, to holders of record on August 15, 2022; and
•A cash dividend of $287.50 per share on our 4.60% Non-Cumulative Preferred Stock, Series B (equivalent to $0.28750 per depository share) payable on September 15, 2022, to holders of record as of August 31, 2022.

Guidance
Our full-year expectations are as follows:
•A GAAP combined ratio, excluding net catastrophe losses, of 90.5% (prior guidance 91.0%). Our combined ratio estimate assumes no additional prior-year casualty reserve development;
•Net catastrophe losses of 4.0 points on the combined ratio;
•After-tax net investment income of $215 million (prior guidance $205 million) that includes after-tax net investment
4


income from our alternative investments of $15 million (prior guidance $15 million);
•An overall effective tax rate of approximately 20.5%, which assumes an effective tax rate of 19.5% for net investment income and 21.0% for all other items; and
•Weighted average shares of 61 million on a fully diluted basis.

The supplemental investor package, including financial information not included in 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 Thursday, August 4, 2022, at www.Selective.com. The webcast will be available for rebroadcast until the close of business on September 3, 2022.

About Selective Insurance Group, Inc.
Selective Insurance Group, Inc. (Nasdaq: SIGI) is a holding company for 10 property and casualty insurance companies rated "A+" (Superior) by AM 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 the Fortune 1000 and being certified as a Great Place to Work® in 2022 for the third consecutive year. For more information about Selective, visit www.Selective.com.

1Reconciliation of Net Income Available to Common Stockholders to Non-GAAP Operating Income and Certain Other Non-GAAP Measures
Non-GAAP operating income, non-GAAP operating income per diluted common share, and non-GAAP operating return on common equity differ from net income available to common stockholders, net income available to common stockholders per diluted common share, and return on common equity, respectively, by the exclusion of after-tax net realized and unrealized gains and losses on investments included in net income. Adjusted book value per common share differs from book value per common share by the exclusion of total after-tax unrealized gains and losses on investments included in accumulated other comprehensive (loss) income. They are used as important financial measures by management, analysts, and investors, because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized gains and losses on investments could distort the analysis of trends. These operating measurements are not intended as a substitute for net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share to non-GAAP operating income, non-GAAP operating income per diluted common share, non-GAAP operating return on common equity, and adjusted book value per common share, respectively, are provided in the tables below.

Note: All amounts included in this release exclude intercompany transactions.

Reconciliation of Net Income Available to Common Stockholders to Non-GAAP Operating Income
$ in millionsQuarter ended June 30,Year-to-Date June 30,
2022202120222021
Net income available to common stockholders$37.2 119.6 91.3 226.4 
Net realized and unrealized investment losses (gains) included in net income, before tax42.9 (10.1)83.2 (15.2)
Tax on reconciling items(9.0)2.1 (17.5)3.2 
Non-GAAP operating income$71.1 111.6 157.0 214.4 

Reconciliation of Net Income Available to Common Stockholders per Diluted Common Share to Non-GAAP Operating Income per Diluted Common Share
Quarter ended June 30,Year-to-Date June 30,
2022202120222021
Net income available to common stockholders per diluted common share$0.61 1.98 1.50 3.74 
Net realized and unrealized investment losses (gains) included in net income, before tax0.70 (0.17)1.37 (0.25)
Tax on reconciling items(0.14)0.04 (0.29)0.05 
Non-GAAP operating income per diluted common share$1.17 1.85 2.58 3.54 

5


Reconciliation of Return on Equity to Non-GAAP Operating Return on Equity
Quarter ended June 30,Year-to-Date June 30,
2022202120222021
Annualized Return on Equity6.0 %18.3 7.1 17.3 
Net realized and unrealized investment losses (gains) included in net income, before tax6.9 (1.5)6.4 (1.1)
Tax on reconciling items(1.5)0.3 (1.4)0.2 
Annualized Non-GAAP Operating Return on Equity11.4 %17.1 12.1 16.4 

Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share
Quarter ended June 30,Year-to-Date June 30,
2022202120222021
Book value per common share$39.68 44.78 39.68 44.78 
Total unrealized investment losses (gains) included in accumulated other comprehensive (loss) income, before tax5.69 (5.34)5.69 (5.34)
Tax on reconciling items(1.19)1.12 (1.19)1.12 
Adjusted book value per common share44.18 40.56 44.18 40.56 

Note: Amounts in the tables above may not foot due to rounding.
6


Forward-Looking Statements

Certain statements in this report, including information incorporated by reference, are “forward-looking statements” as defined by 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 and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or industry actual results, activity levels, or performance to materially differ from those expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” “continue,” or comparable terms. Our forward-looking statements are only predictions, and we can give no assurance that such expectations will prove correct. We undertake no obligation, other than as federal securities laws may require, to publicly update or revise any forward-looking statements for any reason.

Factors that could cause our actual results to differ materially from what we project, forecast, or estimate in forward-looking statements include, without limitation:
•Related to COVID-19:
◦Governmental directives to contain or delay the spread of the COVID-19 pandemic have disrupted ordinary business commerce and impacted financial markets. These governmental actions, the extent, duration, and possible alteration based on future COVID-19-related developments that we cannot predict, could materially and adversely affect our results of operations, net investment income, financial position, and liquidity.
◦The amount of premium we record may be reduced and our underwriting results may be adversely impacted by (i) voluntary premium credits on in-force commercial and personal automobile policies, (ii) state insurance commissioner or other regulatory directives to implement premium-based credit in lines other than commercial and personal automobile, and we may be required to return more premium than warranted by our filed rating plans and actual loss experience, (iii) the effects of our voluntary efforts or the directives from various state insurance regulators to extend individualized payment flexibility and suspend policy cancellations, late payment notices, and late or reinstatement fees, (iv) return premiums that could be significant because our general liability and workers compensation policies provide for premium audit of revenues and payrolls, and (v) collectability of premiums, which may be impacted by policyholder financial distress and insolvency.
◦Our loss and loss expenses may increase, our related reserves may not be adequate, and our financial condition and liquidity may be materially impacted if litigation or changes in statutory or common law (i) require payment of COVID-19-related business interruption losses despite contrary terms, conditions, and exclusions in our policies or (ii) presume that COVID-19 is a work-related illness compensable under workers compensation policies for employees who contract the virus, regardless of whether they worked in industries defined as essential in various COVID-19-related governmental directives or interacted with the public as part of their job duties.
◦Our net investment income may be impacted by the significant equity and debt financial market volatility resulting from the COVID-19 pandemic and the related governmental orders because (i) financial market volatility is reflected in our alternative investments’ performance, (ii) increased spreads on fixed income securities may create mark-to-market investment valuation losses that reduce unrealized capital gains and impact GAAP equity, and (iii) net realized losses may increase if we intend to sell more securities, particularly in asset classes that are more significantly impacted by COVID-19-related governmental directives and to which the Federal Reserve Board is providing liquidity and structural support.
◦To varying degrees, the effect, lifting, or lapsing of COVID-19-related governmental directives have disrupted supply chains and caused shortages of products, services, and labor. These shortages may impact our ability to attract and retain labor, including increasing attrition rates, wages, and the cost and difficulty of obtaining third-party non-U.S.-based resources.
•The ongoing Russian war against Ukraine is impacting global economic, banking, commodity, and financial markets, exacerbating ongoing economic challenges, including inflation and supply chain disruption, which influences insurance loss costs, premiums and investment valuation;
•Difficult conditions in global capital markets and the economy, including the risk of prolonged higher inflation, could increase loss costs and negatively impact investment portfolios;
•Deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and interest rate fluctuations;
•Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus;
•The adequacy of our loss reserves and loss expense reserves;
•Frequency and severity of catastrophic events, including natural events such as hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest;
•Adverse market, governmental, regulatory, legal, or judicial conditions or actions;
•The geographic concentration of our business in the eastern portion of the United States;
•The cost, terms and conditions, 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;
7


•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;
•Potential tax or federal financial regulatory reform provisions that could pose certain risks to our operations;
•Our ability to maintain favorable ratings from rating agencies, including AM 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 that we cannot predict or assess may emerge.

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).
Investor Contact:
Rohan Pai
973-948-1364
Rohan.Pai@Selective.com
Media Contact:
Jamie M. Beal
973-948-1234
Jamie.Beal@Selective.com
Selective Insurance Group, Inc.
40 Wantage Avenue
Branchville, New Jersey 07890
www.Selective.com

8


Exhibit 99.2














imagea.jpg



FINANCIAL SUPPLEMENT
SECOND QUARTER 2022


Forward-Looking Statements

Certain statements in this report, including information incorporated by reference, are “forward-looking statements” as defined by 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 and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or industry actual results, activity levels, or performance to materially differ from those expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” “continue,” or comparable terms. Our forward-looking statements are only predictions, and we can give no assurance that such expectations will prove correct. We undertake no obligation, other than as federal securities laws may require, to publicly update or revise any forward-looking statements for any reason.

Factors that could cause our actual results to differ materially from what we project, forecast, or estimate in forward-looking statements include, without limitation:
•Related to COVID-19:
◦Governmental directives to contain or delay the spread of the COVID-19 pandemic have disrupted ordinary business commerce and impacted financial markets. These governmental actions, the extent, duration, and possible alteration based on future COVID-19-related developments that we cannot predict, could materially and adversely affect our results of operations, net investment income, financial position, and liquidity.
◦The amount of premium we record may be reduced and our underwriting results may be adversely impacted by (i) voluntary premium credits on in-force commercial and personal automobile policies, (ii) state insurance commissioner or other regulatory directives to implement premium-based credit in lines other than commercial and personal automobile, and we may be required to return more premium than warranted by our filed rating plans and actual loss experience, (iii) the effects of our voluntary efforts or the directives from various state insurance regulators to extend individualized payment flexibility and suspend policy cancellations, late payment notices, and late or reinstatement fees, (iv) return premiums that could be significant because our general liability and workers compensation policies provide for premium audit of revenues and payrolls, and (v) collectability of premiums, which may be impacted by policyholder financial distress and insolvency.
◦Our loss and loss expenses may increase, our related reserves may not be adequate, and our financial condition and liquidity may be materially impacted if litigation or changes in statutory or common law (i) require payment of COVID-19-related business interruption losses despite contrary terms, conditions, and exclusions in our policies or (ii) presume that COVID-19 is a work-related illness compensable under workers compensation policies for employees who contract the virus, regardless of whether they worked in industries defined as essential in various COVID-19-related governmental directives or interacted with the public as part of their job duties.
◦Our net investment income may be impacted by the significant equity and debt financial market volatility resulting from the COVID-19 pandemic and the related governmental orders because (i) financial market volatility is reflected in our alternative investments’ performance, (ii) increased spreads on fixed income securities may create mark-to-market investment valuation losses that reduce unrealized capital gains and impact GAAP equity, and (iii) net realized losses may increase if we intend to sell more securities, particularly in asset classes that are more significantly impacted by COVID-19-related governmental directives and to which the Federal Reserve Board is providing liquidity and structural support.
◦To varying degrees, the effect, lifting, or lapsing of COVID-19-related governmental directives have disrupted supply chains and caused shortages of products, services, and labor. These shortages may impact our ability to attract and retain labor, including increasing attrition rates, wages, and the cost and difficulty of obtaining third-party non-U.S.-based resources.
•The ongoing Russian war against Ukraine is impacting global economic, banking, commodity, and financial markets, exacerbating ongoing economic challenges, including inflation and supply chain disruption, which influences insurance loss costs, premiums and investment valuation;
•Difficult conditions in global capital markets and the economy, including the risk of prolonged higher inflation, could increase loss costs and negatively impact investment portfolios;
•Deterioration in the public debt and equity markets and private investment marketplace that could lead to investment losses and interest rate fluctuations;
•Ratings downgrades on individual securities we own could affect investment values and, therefore, statutory surplus;
•The adequacy of our loss reserves and loss expense reserves;
•Frequency and severity of catastrophic events, including natural events such as hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, floods, and fires and man-made events such as criminal and terrorist acts, including cyber-attacks, explosions, and civil unrest;
•Adverse market, governmental, regulatory, legal, or judicial conditions or actions;
•The geographic concentration of our business in the eastern portion of the United States;
•The cost, terms and conditions, 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;
•Potential tax or federal financial regulatory reform provisions that could pose certain risks to our operations;
•Our ability to maintain favorable ratings from rating agencies, including AM 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 that we cannot predict or assess may emerge.

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).


Selective Insurance Group, Inc. & Consolidated Subsidiaries

TABLE OF CONTENTS
Page
Consolidated Financial Highlights
Consolidated Statements of Operations
Consolidated Balance Sheets
Financial Metrics
Consolidated Insurance Operations Statement of Operations
Standard Commercial Lines Statement of Operations and Supplemental Data
Standard Commercial Lines GAAP Line of Business Results
Standard Personal Lines Statement of Operations and Supplemental Data
Standard Personal Lines GAAP Line of Business Results
Excess and Surplus Lines Statement of Operations and Supplemental Data
Excess and Surplus Lines GAAP Line of Business Results
Consolidated Investment Income
Consolidated Composition of Invested Assets
Credit Quality of Invested Assets
Reconciliation of Net Income Available to Common Stockholders to Non-GAAP Operating Income and Certain Other Non-GAAP Measures
Ratings and Contact Information




Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ and shares in millions, except per share data)2022202220212021202120222021
For Period Ended
Gross premiums written$1,059.1 1,006.4 865.4 939.9 959.6 2,065.4 1,873.9 
Net premiums written930.7 889.8 745.4 812.9 833.2 1,820.5 1,631.4 
Change in net premiums written, from comparable prior year period12 %11 9 13 15 12 19 
Underwriting income, before-tax$37.7 55.8 54.1 10.9 75.9 93.5 153.6 
Net investment income earned, before-tax70.2 72.6 80.1 93.0 83.7 142.8 153.4 
Net realized and unrealized investment (losses) gains, before-tax(42.9)(40.4)2.2 0.2 10.1 (83.2)15.2 
Net income$39.5 56.3 99.0 73.7 121.9 95.9 231.2 
Net income available to common stockholders(1)
37.2 54.0 96.7 71.4 119.6 91.3 226.4 
Non-GAAP operating income(2)
71.1 85.9 94.9 71.3 111.6 157.0 214.4 
At Period End
Total assets10,317.7 10,310.5 10,461.4 10,442.2 10,167.9 10,317.7 10,167.9 
Total invested assets7,585.9 7,774.7 8,027.0 7,859.2 7,755.4 7,585.9 7,755.4 
Stockholders' equity2,594.1 2,778.2 2,982.9 2,922.1 2,891.4 2,594.1 2,891.4 
Common stockholders' equity(3)
2,394.1 2,578.2 2,782.9 2,722.1 2,691.4 2,394.1 2,691.4 
Common shares outstanding60.3 60.3 60.2 60.1 60.1 60.3 60.1 
Per Share and Share Data
Net income available to common stockholders per common share (diluted)$0.61 0.89 1.59 1.18 1.98 1.50 3.74 
Non-GAAP operating income per common share (diluted)(2)
1.17 1.41 1.56 1.18 1.85 2.58 3.54 
Weighted average common shares outstanding (diluted)60.8 60.8 60.8 60.6 60.5 60.8 60.5 
Book value per common share$39.68 42.73 46.24 45.27 44.78 39.68 44.78 
Adjusted book value per common share(2)
44.18 43.80 43.23 41.56 40.56 44.18 40.56 
Dividends paid per common share0.28 0.28 0.28 0.25 0.25 0.56 0.50 
Financial Ratios
Loss and loss expense ratio62.9 %60.8 60.4 65.9 56.9 61.8 56.9 
Underwriting expense ratio32.5 32.1 32.5 32.6 32.7 32.3 32.4 
Dividends to policyholders ratio0.1 0.2 0.2 0.1 0.2 0.2 0.2 
GAAP combined ratio95.5 %93.1 93.1 98.6 89.8 94.3 89.5 
Annualized return on common stockholders' equity ("ROE")6.0 8.1 14.0 10.6 18.3 7.1 17.3 
Annualized non-GAAP operating ROE(2)
11.4 12.8 13.8 10.6 17.1 12.1 16.4 
Debt to total capitalization16.3 15.4 14.5 14.6 16.0 16.3 16.0 
Net premiums written to policyholders' surplus 1.41x  1.36x  1.33x  1.35x  1.33x  1.41x  1.33x
Invested assets per dollar of common stockholders' equity$3.17 3.02 2.88 2.89 2.88 3.17 2.88 
(1)
Net income available to common stockholders is net income reduced by preferred stock dividends.
(2)
Non-GAAP measure. Refer to Page 15 for definition.
(3)
Excludes equity related to preferred stock.
Page 1

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ and shares in millions, except per share data)2022202220212021202120222021
Revenues
Net premiums earned$834.4 812.3 784.5 767.2 740.5 $1,646.7 1,465.5 
Net investment income earned70.2 72.6 80.1 93.0 83.7 142.8 153.4 
Net realized and unrealized (losses) gains (42.9)(40.4)2.2 0.2 10.1 (83.2)15.2 
Other income3.0 1.5 2.8 4.6 6.2 4.6 10.3 
Total revenues864.8 846.1 869.7 865.0 840.5 1,710.9 1,644.4 
Expenses
Loss and loss expense incurred524.9494.2 473.7 505.3 421.6 1,019.1 835.0 
Amortization of deferred policy acquisition costs173.4169.8 162.2 160.9 154.4 343.1303.4 
Other insurance expenses101.594.0 97.4 94.8 94.9 195.5183.8 
Interest expense7.37.2 7.2 7.2 7.4 14.414.7 
Corporate expenses7.911.0 5.4 4.3 9.1 18.918.7 
Total expenses814.9776.2 745.9 772.4 687.3 1,591.1 1,355.6 
Income before federal income tax49.969.9 123.8 92.6 153.2 119.8288.8 
Federal income tax expense10.4 13.6 24.9 18.9 31.3 23.9 57.7 
Net Income39.556.3 99.0 73.7 121.9 95.9231.2 
Preferred stock dividends2.32.3 2.3 2.3 2.3 4.64.8 
Net income available to common stockholders37.254.096.771.4119.691.3226.4
Net realized and unrealized investment losses (gains), after tax(1)
33.9 31.9 (1.8)(0.1)(7.9)65.8 (12.0)
Non-GAAP operating income(2)
$71.1 85.9 94.9 71.3 111.6 $157.0 214.4 
Weighted average common shares outstanding (diluted)60.860.8 60.8 60.6 60.5 60.860.5 
Net income available to common stockholders per common share (diluted)$0.61 0.89 1.59 1.18 1.98 $1.50 3.74 
Non-GAAP operating income per common share (diluted)(2)
$1.17 1.41 1.56 1.18 1.85 $2.58 3.54 
(1)
Amounts are provided to reconcile net income available to common stockholders to non-GAAP operating income.
(2)
Non-GAAP measure. Refer to Page 15 for definition.
Note: Amounts may not foot due to rounding.
Page 2

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,
($ in millions, except per share data)20222022202120212021
ASSETS
Investments
Fixed income securities, held-to-maturity, net of allowance for credit losses$32.1 33.0 28.8 25.3 27.0 
Fixed income securities, available-for-sale, at fair value, net of allowance for credit losses6,439.3 6,598.8 6,710.0 6,677.1 6,626.4 
Commercial mortgage loans, net of allowance for credit losses137.2 115.9 95.8 84.0 72.0 
Equity securities, at fair value258.5 344.6 335.5 324.2 348.3 
Short-term investments289.2 256.7 447.9 355.9 351.2 
Other investments429.5 425.7 409.0 392.8 330.5 
Total investments7,585.9 7,774.7 8,027.0 7,859.2 7,755.4 
Cash0.4 0.4 0.5 0.5 0.5 
Restricted cash7.2 17.5 44.6 34.3 8.8 
Accrued investment income50.4 48.4 48.2 46.1 46.1 
Premiums receivable, net of allowance for credit losses1,117.4 1,011.5 945.2 984.8 988.0 
Reinsurance recoverable, net of allowance for credit losses572.2 577.4 600.1 686.2 596.9 
Prepaid reinsurance premiums174.6 175.0 183.0 188.0 177.7 
Current federal income tax15.6 — 0.8 1.2 — 
Deferred federal income tax109.5 55.3 — — — 
Property and equipment, net of accumulated depreciation and amortization83.4 83.2 82.1 75.0 75.1 
Deferred policy acquisition costs359.4 341.7 326.9 334.0 323.2 
Goodwill7.8 7.8 7.8 7.8 7.8 
Other assets234.0 217.7 195.2 225.0 188.5 
Total assets$10,317.7 10,310.5 10,461.4 10,442.2 10,167.9 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Reserve for loss and loss expense$4,722.2 4,644.4 4,580.9 4,610.3 4,437.3 
Unearned premiums1,968.6 1,872.7 1,803.2 1,847.3 1,791.3 
Long-term debt505.1 505.6 506.1 500.9 550.9 
Current federal income tax— 16.5 — — 18.3 
Deferred federal income tax— — 13.4 3.2 0.1 
Accrued salaries and benefits102.5 90.6 121.1 113.7 103.4 
Other liabilities425.2 402.6 453.9 444.6 375.3 
Total liabilities$7,723.6 7,532.3 7,478.5 7,520.1 7,276.5 
Stockholders' Equity
Preferred stock of $0 par value per share$200.0 200.0 200.0 200.0 200.0 
Common stock of $2 par value per share209.5 209.3 208.9 208.8 208.7 
Additional paid-in capital481.4 472.8 464.3 458.1 454.5 
Retained earnings2,660.6 2,640.4 2,603.5 2,523.8 2,467.6 
Accumulated other comprehensive (loss) income(336.4)(129.8)115.1 140.2 169.4 
Treasury stock, at cost(621.0)(614.5)(608.9)(608.9)(608.8)
Total stockholders' equity$2,594.1 2,778.2 2,982.9 2,922.1 2,891.4 
Commitments and contingencies
Total liabilities and stockholders' equity$10,317.7 10,310.5 10,461.4 10,442.2 10,167.9 
Note: Amounts may not foot due to rounding.
Page 3

Selective Insurance Group, Inc. & Consolidated Subsidiaries
FINANCIAL METRICS
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ and shares in millions, except per share data)2022202220212021202120222021
Book value per common share
Common stockholders' equity$2,394.1 2,578.2 2,782.9 2,722.1 2,691.4 2,394.1 2,691.4 
Common shares issued and outstanding, at period end60.3 60.3 60.2 60.1 60.1 60.3 60.1 
Book value per common share$39.68 42.73 46.24 45.27 44.78 39.68 44.78 
Adjusted book value per common share(2)
44.18 43.80 43.23 41.56 40.56 44.18 40.56 
Financial results (after-tax)
Underwriting income29.8 44.1 42.7 8.6 60.0 73.9 121.3 
Net investment income56.7 58.5 64.5 74.7 67.4 115.2 123.8 
Interest expense and preferred stock dividends(8.0)(8.0)(8.0)(8.0)(8.1)(16.0)(16.4)
Corporate expense(7.3)(8.7)(4.3)(4.0)(7.6)(16.1)(14.3)
Net realized and unrealized investment (losses) gains(33.9)(31.9)1.8 0.1 7.9 (65.8)12.0 
Total after-tax net income available to common stockholders37.2 54.0 96.7 71.4 119.6 91.3 226.4 
Return on average equity
Insurance segments4.8 %6.6 6.2 1.3 9.2 5.7 9.3 
Net investment income9.1 8.7 9.4 11.0 10.3 8.9 9.5 
Interest expense and preferred stock dividends(1.3)(1.2)(1.2)(1.2)(1.2)(1.2)(1.3)
Corporate expense(1.2)(1.3)(0.6)(0.5)(1.2)(1.3)(1.1)
Net realized and unrealized investment (losses) gains (5.4)(4.7)0.2 — 1.2 (5.0)0.9 
Annualized ROE6.0 8.1 14.0 10.6 18.3 7.1 17.3 
Net realized and unrealized losses (gains)(1)
5.4 4.7 (0.2)— (1.2)5.0 (0.9)
Annualized Non-GAAP Operating ROE(2)
11.4 %12.8 13.8 10.6 17.1 12.1 16.4 
Debt and total capitalization
Notes payable:
1.61% Borrowings from FHLBNY$— — — — 25.0 — 25.0 
1.56% Borrowings from FHLBNY— — — — 25.0 — 25.0 
3.03% Borrowings from FHLBI60.0 60.0 60.0 60.0 60.0 60.0 60.0 
7.25% Senior Notes49.8 49.8 49.8 49.8 49.8 49.8 49.8 
6.70% Senior Notes99.3 99.2 99.2 99.2 99.2 99.3 99.2 
5.375% Senior Notes291.7 291.7 291.6 291.5 291.5 291.7 291.5 
Finance Lease Obligations4.3 4.9 5.4 0.4 0.5 4.3 0.5 
Total debt505.1 505.6 506.1 500.9 550.9 505.1 550.9 
Stockholders' equity2,594.1 2,778.2 2,982.9 2,922.1 2,891.4 2,594.1 2,891.4 
Total capitalization$3,099.2 3,283.8 3,488.9 3,423.0 3,442.2 3,099.2 3,442.2 
Ratio of debt to total capitalization16.3 %15.4 14.5 14.6 16.0 16.3 16.0 
Policyholders' surplus$2,404.4 2,418.6 2,391.0 2,319.6 2,275.4 2,404.4 2,275.4 
(1)
Amounts are provided to reconcile annualized ROE to annualized non-GAAP operating ROE.
(2)
Non-GAAP measure. Refer to Page 15 for definition.
Note: Amounts may not foot due to rounding.
Page 4

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED INSURANCE OPERATIONS
STATEMENT OF OPERATIONS
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ in millions)2022202220212021202120222021
Underwriting results
Net premiums written$930.7 889.8 745.4 812.9 833.2 1,820.5 1,631.4 
Change in net premiums written, from comparable prior year period12 %11 9 13 15 12 19 
Net premiums earned$834.4 812.3 784.5 767.2 740.5 1,646.7 1,465.5 
Losses and loss expenses incurred524.9 494.2 473.7 505.3 421.6 1,019.1 835.0 
Net underwriting expenses incurred270.8 260.6 255.1 250.0 241.8 531.5 474.5 
Dividends to policyholders1.0 1.6 1.7 1.0 1.2 2.6 2.4 
GAAP underwriting income$37.7 55.8 54.1 10.9 75.9 93.5 153.6 
Net catastrophe losses$45.6 20.6 35.3 76.3 22.6 66.2 52.6 
(Favorable) prior year casualty reserve development(12.0)(20.0)(15.0)(14.0)(17.0)(32.0)(52.0)
Underwriting ratios
Loss and loss expense ratio62.9 %60.8 60.4 65.9 56.9 61.8 56.9 
Underwriting expense ratio32.5 32.1 32.5 32.6 32.7 32.3 32.4 
Dividends to policyholders ratio0.1 0.2 0.2 0.1 0.2 0.2 0.2 
Combined ratio95.5 %93.1 93.1 98.6 89.8 94.3 89.5 
Net catastrophe losses5.5 pts2.5 4.5 10.0 3.1 4.0 3.6 
(Favorable) prior year casualty reserve development(1.4)pts(2.5)(1.9)(1.8)(2.3)(1.9)(3.5)
Combined ratio before net catastrophe losses90.0 %90.6 88.6 88.6 86.7 90.3 85.9 
Combined ratio before net catastrophe losses and prior year casualty development91.4 93.1 90.5 90.4 89.0 92.2 89.4 
Other Statistics
Non-catastrophe property loss and loss expenses$138.6 150.4 125.2 123.7 107.3 288.9 222.9 
Non-catastrophe property loss and loss expenses16.6 pts18.5 16.0 16.1 14.5 17.5 15.2 
Direct new business$182.0 177.2 151.2 168.3 173.3 359.2 329.0 
Renewal pure price increases5.0%4.6 4.7 4.9 5.1 4.8 5.2 
Note: Amounts may not foot due to rounding.

Page 5

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD COMMERCIAL LINES
STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ in millions)2022202220212021202120222021
Underwriting results
Net premiums written$760.3 737.6 597.7 652.6 677.1 1,497.9 1,342.7 
Change in net premiums written, from comparable prior year period12 %11 8 13 16 12 22 
Net premiums earned$680.2 661.5 635.4 619.6 599.8 1,341.7 1,188.9 
Losses and loss expenses incurred406.9 399.5 378.6 393.5 329.8 806.4 654.7 
Net underwriting expenses incurred225.6 218.0 211.3 207.6 200.8 443.6 394.4 
Dividends to policyholders1.0 1.6 1.7 1.0 1.2 2.6 2.4 
GAAP underwriting income$46.7 42.4 43.7 17.4 67.9 89.1 137.4 
Net catastrophe losses$22.3 14.9 26.8 50.0 11.3 37.3 27.3 
(Favorable) prior year casualty reserve development(12.0)(20.0)(15.0)(14.0)(15.0)(32.0)(45.0)
Underwriting ratios
Loss and loss expense ratio59.7 %60.4 59.5 63.5 55.0 60.1 55.0 
Underwriting expense ratio33.2 33.0 33.3 33.5 33.5 33.1 33.2 
Dividends to policyholders ratio0.2 0.2 0.3 0.2 0.2 0.2 0.2 
Combined ratio93.1 %93.6 93.1 97.2 88.7 93.4 88.4 
Net catastrophe losses3.3 pts2.3 4.2 8.1 1.9 2.8 2.3 
(Favorable) prior year casualty reserve development(1.8)(3.0)(2.4)(2.3)(2.5)(2.4)(3.8)
Combined ratio before net catastrophe losses89.8 %91.3 88.9 89.1 86.8 90.6 86.1 
Combined ratio before net catastrophe losses and prior year casualty development91.6 94.3 91.3 91.4 89.3 93.0 89.9 
Other Statistics
Non-catastrophe property loss and loss expenses$99.2 115.7 92.3 90.1 74.6 214.9 158.3 
Non-catastrophe property loss and loss expenses14.6 pts17.5 14.5 14.5 12.4 16.0 13.3 
Direct new business$129.0 128.4 104.4 122.3 128.7 257.4 243.2 
Renewal pure price increases5.3 %4.8 5.0 5.3 5.5 5.1 5.5 
Retention86 %87 86 86 85 86 85 
Note: Amounts may not foot due to rounding.

Page 6

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD COMMERCIAL LINES
GAAP LINE OF BUSINESS RESULTS
(Unaudited)
Quarter ended June 30, 2022Quarter ended June 30, 2021
GeneralCommercialCommercialWorkersGeneralCommercialCommercialWorkers
($ in millions)LiabilityAutoPropertyCompensationBOPBondsOtherTotalLiabilityAutoPropertyCompensationBOPBondsOtherTotal
Net premiums written$257.5 222.8 140.1 88.4 32.3 12.4 6.7 760.3 225.5 205.9 119.1 80.5 30.0 10.0 6.0 677.1 
Net premiums earned226.3 198.4 123.6 83.5 31.5 10.7 6.3 680.2 197.3 178.0 106.1 74.3 29.3 9.0 5.7 599.8 
Loss and loss expense ratio55.8 %70.8 60.5 53.8 61.4 8.8 0.6 59.7 50.5 66.1 46.5 59.3 56.4 30.5 0.1 55.0 
Underwriting expense ratio33.1 31.3 37.2 26.3 35.2 59.8 50.6 33.2 33.8 31.5 37.5 27.7 34.5 57.3 40.1 33.5 
Dividend ratio— — — 1.2 — — — 0.2 — — 0.1 1.3 — — — 0.2 
Combined ratio88.9 %102.1 97.7 81.3 96.6 68.6 51.2 93.1 84.3 97.6 84.1 88.3 90.9 87.8 40.2 88.7 
Underwriting income (loss)$25.0 (4.3)2.8 15.6 1.1 3.4 3.1 46.7 31.0 4.2 16.8 8.7 2.7 1.1 3.4 67.9 
Year-to-Date June 30, 2022Year-to-Date June 30, 2021
GeneralCommercialCommercialWorkersGeneralCommercialCommercialWorkers
($ in millions)LiabilityAutoPropertyCompensationBOPBondsOtherTotalLiabilityAutoPropertyCompensationBOPBondsOtherTotal
Net premiums written$501.6 435.4 271.1 185.9 65.3 25.1 13.6 1,497.9 447.6 396.6 232.5 172.8 61.4 19.5 12.3 1,342.7 
Net premiums earned442.6 392.2 243.6 168.2 61.6 21.0 12.5 1,341.7 390.8 349.9 208.9 152.5 57.9 17.6 11.2 1,188.9 
Loss and loss expense ratio54.7 %72.9 61.9 53.9 62.3 (5.7)0.3 60.1 49.0 67.1 51.6 52.5 60.9 30.4 0.1 55.0 
Underwriting expense ratio33.1 31.0 36.8 26.1 36.6 60.9 53.3 33.1 33.7 30.9 37.1 27.0 35.5 58.7 45.5 33.2 
Dividend ratio— — 0.1 1.2 — — — 0.2 — — — 1.4 — — — 0.2 
Combined ratio87.8 %103.9 98.8 81.2 98.9 55.2 53.6 93.4 82.7 98.0 88.7 80.9 96.4 89.1 45.6 88.4 
Underwriting income (loss)$53.8 (15.2)3.0 31.5 0.7 9.4 5.8 89.1 67.6 7.0 23.6 29.1 2.1 1.9 6.1 137.4 
Note: Amounts may not foot due to rounding.

Page 7

Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD PERSONAL LINES
STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ in millions)2022202220212021202120222021
Underwriting results
Net premiums written$82.6 65.1 70.4 78.2 78.6 147.6 143.6 
Change in net premiums written, from comparable prior year period5 %— 1 (2)— 3 (1)
Net premiums earned$73.3 72.6 73.1 73.4 73.3 146.0 147.1 
Losses and loss expenses incurred66.6 48.5 51.8 65.1 48.0 115.1 95.2 
Net underwriting expenses incurred19.1 17.6 19.5 19.4 19.7 36.7 38.6 
GAAP underwriting income (loss)$(12.4)6.5 1.8 (11.1)5.6 (5.8)13.3 
Net catastrophe losses$21.1 4.3 7.3 19.5 5.0 25.4 10.6 
Prior year casualty reserve development— — — — — — — 
Underwriting ratios
Loss and loss expense ratio90.8 %66.8 71.0 88.8 65.5 78.9 64.6 
Underwriting expense ratio26.1 24.2 26.6 26.4 26.8 25.1 26.3 
Combined ratio116.9 %91.0 97.6 115.2 92.3 104.0 90.9 
Net catastrophe losses28.7 pts6.0 9.9 26.7 6.8 17.4 7.2 
Prior year casualty reserve development— — — — — — — 
Combined ratio before net catastrophe losses88.2 %85.0 87.7 88.5 85.5 86.6 83.7 
Combined ratio before net catastrophe losses and prior year casualty development88.2 85.0 87.7 88.5 85.5 86.6 83.7 
Other Statistics
Non-catastrophe property loss and loss expenses$26.9 25.6 26.1 28.7 24.9 52.5 48.0 
Non-catastrophe property loss and loss expenses36.7 pts35.2 35.7 39.1 34.0 36.0 32.6 
Direct new business$13.5 9.6 9.9 10.2 10.9 23.1 20.8 
Renewal pure price increases0.6 %0.6 1.1 1.2 1.1 0.6 0.9 
Retention85 %84 83 84 84 84 83 
Note: Amounts may not foot due to rounding.

Page 8


Selective Insurance Group, Inc. & Consolidated Subsidiaries

STANDARD PERSONAL LINES
GAAP LINE OF BUSINESS RESULTS
(Unaudited)
Quarter ended June 30, 2022Quarter ended June 30, 2021
PersonalPersonal
($ in millions)AutoHomeownersOtherTotalAutoHomeownersOtherTotal
Net premiums written$44.9 35.7 2.0 82.6 43.5 33.1 2.0 78.6 
Net premiums earned40.0 31.6 1.8 73.3 41.0 30.6 1.7 73.3 
Loss and loss expense ratio75.7 %113.5 23.8 90.8 65.4 68.0 22.5 65.5 
Underwriting expense ratio29.5 30.1 (124.8)26.1 30.4 30.9 (130.4)26.8 
Combined ratio105.2 %143.6 (101.0)116.9 95.8 98.9 (107.9)92.3 
Underwriting income (loss)$(2.1)(13.8)3.5 (12.4)1.7 0.3 3.6 5.6 
Year-to-Date June 30, 2022Year-to-Date June 30, 2021
PersonalPersonal
($ in millions)AutoHomeownersOtherTotalAutoHomeownersOtherTotal
Net premiums written$82.2 61.8 3.6 147.6 81.4 58.7 3.6 143.6 
Net premiums earned79.7 62.8 3.5 146.0 82.4 61.2 3.5 147.1 
Loss and loss expense ratio75.2 %86.4 25.3 78.9 64.7 66.7 30.7 64.6 
Underwriting expense ratio29.6 29.8 (159.2)25.1 30.4 30.2 (139.9)26.3 
Combined ratio104.8 %116.2 (133.9)104.0 95.1 96.9 (109.2)90.9 
Underwriting income (loss)$(3.8)(10.2)8.2 (5.8)4.1 1.9 7.4 13.3 
Note: Amounts may not foot due to rounding.

Page 9

Selective Insurance Group, Inc. & Consolidated Subsidiaries

EXCESS AND SURPLUS LINES
STATEMENT OF OPERATIONS AND SUPPLEMENTAL DATA
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ in millions)2022202220212021202120222021
Underwriting results
Net premiums written$87.9 87.1 77.3 82.1 77.5 175.0 145.1 
Change in net premiums written, from comparable prior year period13 %29 27 32 23 21 17 
Net premiums earned$80.9 78.2 76.0 74.3 67.5 159.0 129.5 
Losses and loss expenses incurred51.4 46.2 43.3 46.6 43.8 97.6 85.2 
Net underwriting expenses incurred26.1 25.0 24.2 23.0 21.3 51.1 41.4 
GAAP underwriting income (loss)$3.4 6.9 8.5 4.7 2.3 10.3 2.8 
Net catastrophe losses$2.2 1.3 1.2 6.8 6.4 3.5 14.7 
(Favorable) prior year casualty reserve development— — — — (2.0)— (7.0)
Underwriting ratios
Loss and loss expense ratio63.5 %59.1 56.9 62.8 65.0 61.3 65.8 
Underwriting expense ratio32.3 32.0 31.9 30.9 31.6 32.2 32.0 
Combined ratio95.8 %91.1 88.8 93.7 96.6 93.5 97.8 
Net catastrophe losses2.8 pts1.7 1.6 9.2 9.5 2.2 11.3 
(Favorable) prior year casualty reserve development— — — — (3.0)— (5.4)
Combined ratio before net catastrophe losses93.0 %89.4 87.2 84.5 87.1 91.3 86.5 
Combined ratio before net catastrophe losses and prior year casualty development93.0 89.4 87.2 84.5 90.1 91.3 91.9 
Other Statistics
Non-catastrophe property loss and loss expenses$12.5 9.1 6.8 4.8 7.8 21.6 16.6 
Non-catastrophe property loss and loss expenses15.4 pts11.6 8.9 6.5 11.5 13.6 12.9 
Direct new business$39.5 39.2 37.0 35.7 33.7 78.7 65.0 
Renewal pure price increases6.9 %7.7 5.9 5.6 6.9 7.3 7.1 
Note: Amounts may not foot due to rounding.

Page 10

Selective Insurance Group, Inc. & Consolidated Subsidiaries

EXCESS & SURPLUS LINES
GAAP LINE OF BUSINESS RESULTS
(Unaudited)
Quarter ended June 30, 2022Quarter ended June 30, 2021
($ in millions)CasualtyPropertyTotalCasualtyPropertyTotal
Net premiums written$59.7 28.2 87.9 53.9 23.6 77.5 
Net premiums earned56.0 24.8 80.9 47.6 19.8 67.5 
Loss and loss expense ratio65.5 %59.2 63.5 62.2 71.5 65.0 
Underwriting expense ratio32.1 32.6 32.3 32.3 30.0 31.6 
Combined ratio97.6 %91.8 95.8 94.5 101.5 96.6 
Underwriting income (loss)$1.3 2.0 3.4 2.6 (0.3)2.3 
Year-to-Date June 30, 2022Year-to-Date June 30, 2021
($ in millions)CasualtyPropertyTotalCasualtyPropertyTotal
Net premiums written$121.7 53.3 175.0 102.1 43.0 145.1 
Net premiums earned110.7 48.4 159.0 91.5 38.0 129.5 
Loss and loss expense ratio65.6 %51.9 61.3 58.9 82.4 65.8 
Underwriting expense ratio32.4 31.5 32.2 32.7 30.4 32.0 
Combined ratio98.0 %83.4 93.5 91.6 112.8 97.8 
Underwriting income (loss)$2.3 8.0 10.3 7.7 (4.9)2.8 
Note: Amounts may not foot due to rounding.


Page 11

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED INVESTMENT INCOME
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ in millions)2022202220212021202120222021
Net investment income
Fixed income securities
Taxable$55.4 47.0 45.6 44.5 45.3 102.4 90.6 
Tax-exempt6.7 6.9 7.0 7.2 7.3 13.6 14.9 
Total fixed income securities62.1 53.9 52.6 51.7 52.6 116.1 105.4 
Commercial mortgage loans1.2 1.0 0.9 0.7 0.7 2.2 1.2 
Equity securities2.6 2.4 7.5 3.0 3.0 5.1 5.5 
Other investments9.1 19.3 24.9 42.9 32.9 28.4 50.3 
Short-term investments0.4 0.1 0.1 0.1 0.1 0.5 0.1 
Investment income75.4 76.7 85.9 98.3 89.2 152.2 162.5 
Investment expenses(5.2)(4.1)(5.8)(5.2)(5.5)(9.3)(9.1)
Investment tax expense(13.6)(14.1)(15.6)(18.3)(16.3)(27.7)(29.7)
Total net investment income, after-tax$56.7 58.5 64.5 74.7 67.4 115.2 123.8 
Net realized and unrealized investment (losses) gains, pre-tax$(42.9)(40.4)2.2 0.2 10.1 (83.2)15.2 
Change in unrealized (losses) gains recognized in other comprehensive income, pre-tax$(261.9)(310.4)(54.1)(37.6)43.3 (572.3)(65.7)
Average investment yields
Fixed income investments, pre-tax3.8 %3.2 3.1 3.1 3.2 3.5 3.2 
Fixed income investments, after-tax3.1 2.6 2.5 2.5 2.6 2.8 2.6 
Total portfolio, pre-tax3.7 %3.7 4.0 4.8 4.4 3.7 4.0 
Total portfolio, after-tax3.0 3.0 3.2 3.8 3.5 3.0 3.2 
Effective tax rate on net investment income19.3 %19.4 19.5 19.7 19.5 19.4 19.3 
New money purchase rates for fixed income investments, pre-tax4.5 3.3 2.7 2.2 2.4 3.8 2.2 
New money purchase rates for fixed income investments, after-tax3.6 2.6 2.1 1.8 1.8 3.0 1.7 
Effective duration of fixed income investments including short-term (in years)4.1 4.1 3.9 4.0 3.9 4.1 3.9 
Note: Amounts may not foot due to rounding.
Page 12

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CONSOLIDATED COMPOSITION OF INVESTED ASSETS
(Unaudited)
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,
20222022202120212021
($ in millions)AmountPercentAmountPercentAmountPercentAmountPercentAmountPercent
Fixed income securities, at fair value$6,470.6 85 %6,631.4 85 6,739.4 84 6,703.1 85 6,654.3 86 
Commercial mortgage loans, at fair value130.0 2 113.1 1 97.6 1 86.0 1 73.6 1 
Total fixed income investments6,600.6 87 6,744.6 87 6,837.0 85 6,789.1 86 6,727.9 87 
Short-term investments289.2 4 256.7 3 447.9 6 355.9 5 351.2 5 
Total fixed income and short-term investments6,889.8 91 7,001.3 90 7,284.9 91 7,145.0 91 7,079.1 91 
Equity securities, at fair value258.5 3 344.6 4 335.5 4 324.2 4 348.3 4 
Other investments429.5 6 425.7 5 409.0 5 392.8 5 330.5 4 
Total investments$7,577.9 100  %7,771.5 100 8,029.5 100 7,862.0 100 7,757.9 100 
Fixed income investments, at carry value
U.S. government obligations$114.3 2 %127.1 2 130.5 2 131.1 2 136.2 2 
Foreign government obligations15.3 — 16.7 — 15.9 — 15.1 — 15.3 — 
Obligations of state and political subdivisions1,069.7 16 1,128.9 17 1,192.7 17 1,169.4 17 1,204.4 18 
Corporate securities2,305.1 35 2,417.3 36 2,598.9 38 2,566.4 38 2,489.5 37 
Collateralized loan obligations and other asset-backed securities1,437.8 22 1,417.2 21 1,350.8 20 1,339.8 20 1,282.2 19 
Residential mortgage-backed securities 911.8 14 878.0 13 776.2 11 816.8 12 854.5 13 
Commercial mortgage-backed securities 617.5 9 646.7 10 673.7 10 663.8 10 671.4 10 
Commercial mortgage loans137.2 2 115.9 2 95.8 1 84.0 1 72.0 1 
Total fixed income investments$6,608.6 100  %6,747.8 100 6,834.6 100 6,786.4 100 6,725.5 100 
Expected maturities of fixed income investments at carry value
Due in one year or less$339.4 5 %405.0 6 502.0 7 515.6 8 538.2 8 
Due after one year through five years2,868.1 43 2,983.8 44 3,238.3 47 3,436.1 51 3,415.8 51 
Due after five years through 10 years2,511.6 38 2,475.0 37 2,360.9 35 2,137.1 31 2,139.3 32 
Due after 10 years889.6 13 884.0 13 733.4 11 697.6 10 632.2 9 
Total fixed income investments$6,608.6 100  %6,747.8 100 6,834.6 100 6,786.4 100 6,725.5 100 
Weighted average credit quality of fixed income and short-term investments
Investment grade credit quality$6,637.3 96 %6,725.8 96 7,023.9 96 6,890.7 96 6,803.5 96 
Non-investment grade credit quality252.5 4 275.4 4 261.0 4 254.3 4 275.6 4 
Total fixed income and short-term investments, at fair value$6,889.8 100  %7,001.3 100 7,284.9 100 7,145.0 100 7,079.1 100 
Weighted average credit quality of fixed income and short-term investmentsA+ A+  A+  A+  A+
Alternative investmentsJune 30, 2022
Current
Number ofOriginalRemainingMarket
StrategyFundsCommitmentCommitmentValue
Private equity56 $352.4 124.3 290.0 
Private credit16 160.9 92.4 56.8 
Real assets9 57.5 29.9 26.5 
Total81 $570.9 246.7 373.3 
Note: Amounts may not foot due to rounding.

Page 13

Selective Insurance Group, Inc. & Consolidated Subsidiaries

CREDIT QUALITY OF INVESTED ASSETS
(Unaudited)
At June 30, 2022 Credit Rating
($ in millions)Amortized CostFair
Value		% of Invested AssetsYield to WorstEffective Duration in YearsAverage Life in YearsAAAAAABBBNon-Investment GradeNot Rated
Fixed income investments:
U.S. government obligations126 114 1.5 3.7 7.3 12.6 112 3 — — — — 
Foreign government obligations17 15 0.2 4.4 5.7 7.0 — 2 11 2 — — 
State and municipal obligations1,097 1,070 14.1 3.0 4.9 5.6 227 493 309 41 — — 
Corporate securities2,491 2,304 30.4 5.0 4.8 7.0 17 181 957 991 157 2 
Mortgage-backed securities:
Residential mortgage-backed securities ("RMBS"):
Agency RMBS731 693 9.1 3.9 5.7 8.4 693 — — — — — 
Non-agency RMBS240 219 2.9 4.3 4.1 6.7 122 31 59 — 7 — 
Total RMBS971 912 12.0 4.0 5.3 8.0 815 31 59 — 7 — 
Commercial mortgage-backed securities645 617 8.1 4.4 3.4 4.5 515 48 48 6 — — 
Total mortgage-backed securities1,617 1,529 20.2 4.1 4.5 6.6 1,330 79 107 6 7 — 
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS"):
Auto23 22 0.3 7.9 1.8 1.9 22 — — — — — 
Aircraft64 56 0.7 8.9 3.1 3.8 — 1 30 20 6 — 
CLOs906 866 11.4 5.2 1.8 5.3 455 269 42 27 57 16 
Credit cards8 8 0.1 4.5 0.4 0.4 8 — 1 — — — 
Other ABS517 486 6.4 5.2 4.1 5.6 111 64 268 35 4 4 
Total CLOs and ABS1,519 1,438 19.0 5.4 2.6 5.3 596 334 340 81 67 20 
Total securitized assets3,136 2,967 39.2 4.7 3.6 5.9 1,926 413 447 88 74 20 
Commercial mortgage loans137 130 1.7 4.4 4.3 5.9 — 12 52 66 — — 
Total fixed income investments7,003 6,601 87.1 4.5 4.3 6.4 2,281 1,104 1,777 1,187 230 22 
Short-term investments289 289 3.8 1.7 0.00.0278 10 — — 1 — 
Total fixed income and short-term investments7,292 6,890 90.9 4.4 4.16.12,559 1,114 1,777 1,187 231 22 
Total fixed income securities and short-term investments by credit rating percentage37.1 %16.2 %25.8 %17.2 %3.4 %0.3 %
Equity securities:
Common stock(1)
254 257 3.4 — — — — — — — — 257 
Preferred stock2 2 — — — — — — — 2 — — 
Total equity securities256 259 3.4 — — — — — — 2 — 257 
Other investments:
Alternative investments
Private equity290 290 3.8 — — — — — — — — 290 
Private credit57 57 0.7 — — — — — — — — 57 
Real assets27 27 0.4 — — — — — — — — 27 
Total alternative investments373 373 4.9 — — — — — — — — 373 
Other investments 56 56 0.7 — — — — — — — — 56 
Total other investments430 430 5.7 — — — — — — — — 430 
Total invested assets$7,977 $7,578 100.0 %— — — $2,559 $1,114 $1,777 $1,189 $231 $708 
(1) Includes investments in exchange traded funds, mutual funds, business development corporations, and real estate investment trusts.
Note: Amounts may not foot due to rounding.
Page 14

Selective Insurance Group, Inc. & Consolidated Subsidiaries

RECONCILIATION OF NET INCOME AVAILABLE TO COMMON STOCKHOLDERS TO NON-GAAP OPERATING INCOME AND CERTAIN OTHER NON-GAAP MEASURES
(Unaudited)
Quarter endedYear-to-date
June 30,Mar. 31,Dec. 31,Sept. 30,June 30,June 30,June 30,
($ in millions, except per share data)2022202220212021202120222021
Reconciliation of net income available to common stockholders to non-GAAP operating income
Net income available to common stockholders$37.2 54.0 96.7 71.4 119.6 91.3 226.4 
Net realized and unrealized investment losses (gains) included in net income, before tax42.9 40.4 (2.2)(0.2)(10.1)83.2 (15.2)
Tax on reconciling items(9.0)(8.5)0.5 — 2.1 (17.5)3.2 
Non-GAAP operating income $71.1 85.9 94.9 71.3 111.6 157.0 214.4 
Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share
Net income available to common stockholders per diluted common share$0.61 0.89 1.59 1.18 1.98 1.50 3.74 
Net realized and unrealized investment losses (gains) included in net income, before tax0.70 0.66 (0.04)— (0.17)1.37 (0.25)
Tax on reconciling items(0.14)(0.14)0.01 — 0.04 (0.29)0.05 
Non-GAAP operating income per diluted common share $1.17 1.41 1.56 1.18 1.85 2.58 3.54 
Reconciliation of annualized ROE to annualized non-GAAP operating ROE
Annualized ROE6.0 %8.1 14.0 10.6 18.3 7.1 17.3 
Net realized and unrealized investment losses (gains) included in net income, before tax6.9 6.0 (0.3)— (1.5)6.4 (1.1)
Tax on reconciling items(1.5)(1.3)0.1 — 0.3 (1.4)0.2 
Annualized non-GAAP operating ROE11.4 %12.8 13.8 10.6 17.1 12.1 16.4 
Reconciliation of book value per common share to adjusted book value per common share
Book value per common share$39.68 42.73 46.24 45.27 44.78 39.68 44.78 
Total unrealized investment losses (gains) included in accumulated other comprehensive (loss) income, before tax5.69 1.35 (3.80)(4.71)(5.34)5.69 (5.34)
Tax on reconciling items(1.19)(0.28)0.79 1.00 1.12 (1.19)1.12 
Adjusted book value per common share$44.18 43.80 43.23 41.56 40.56 44.18 40.56 
Non-GAAP operating income, non-GAAP operating income per diluted common share, and non-GAAP operating return on common equity are measures comparable to net income available to common stockholders, net income available to common stockholders per diluted common share, and return on common equity, respectively, but excludes after-tax net realized and unrealized gains and losses on investments included in net income. Adjusted book value per common share is a measure comparable to book value per common share, but excludes total after-tax unrealized gains and losses on investments included in accumulated other comprehensive (loss) income. They are used as important financial measures by management, analysts, and investors, because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized gains and losses on investments could distort the analysis of trends. These operating measurements are not intended as a substitute for net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of net income available to common stockholders, net income available to common stockholders per diluted common share, return on common equity, and book value per common share to non-GAAP operating income, non-GAAP operating income per diluted common share, non-GAAP operating return on common equity, and adjusted book value per common share, respectively, are provided in the tables above.
Note: Amounts may not foot due to rounding.
Page 15

Selective Insurance Group, Inc. & Consolidated Subsidiaries

RATINGS AND CONTACT INFORMATION

Address:As of June 30, 2022
40 Wantage AvenueAM BestStandard & Poor'sMoody'sFitch
Branchville, NJ 07890Financial Strength Ratings:A+AA2A+
Preferred Stock Rating:n/aBB+Ba1BBB-
Corporate Website:Long-Term Debt Credit Rating:a-BBBBaa2BBB+
www.Selective.com
Investor Contact:REGISTRAR AND TRANSFER AGENT
Rohan PaiEQ Shareowner Services
Senior Vice PresidentP.O. Box 64854
Investor Relations & TreasurerSt. Paul, MN 55164
Phone: 973-948-1364866-877-6351
Rohan.Pai@Selective.com
Media Contact:
Jamie M. Beal
Vice President
Director of Communications
Phone: 973-948-1234
Jamie.Beal@Selective.com

Page 16

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