AM Best Affirms Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries
- December 04, 2025 12:46 PM (EST)
//BestWire// - 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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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.