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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 31, 2019 08:08 AM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of the 10 pooled members of Selective Insurance Group (Selective). Additionally, AM Best has revised the outlook to positive from stable and 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]. All companies are headquartered in Branchville, NJ. (Please see below for a detailed listing of companies and ratings.)
These Credit Ratings (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 outlook reflects improved profitability over the past five years on an absolute basis and relative to its peers. AM Best expects that the group will 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 outlooks have been revised to positive from stable and the FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed for the pooled members of Selective Insurance Group:
The outlooks have been revised to positive from stable and the 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 $300.0 million 5.375% senior unsecured notes, due 2049
The outlooks have been revised to positive from stable and the following indicative Long-Term IRs have been affirmed for the 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 Understanding 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 rating agency and information provider with an exclusive focus on the insurance industry.