Oldwick, NJ–(business wire)–AM Best We have confirmed that the Selective Insurance Group (Selective) pool members have a financial strength rating (FSR) of A+ (Superior) and a long-term issuer credit rating (Long-Term ICR) of ‘aa-‘ (Superior). In addition, AM Best has confirmed that the ultimate parent company, Selective Insurance Group, Inc., has a long-term ICR of ‘a-‘ (excellent) and a long-term issue credit rating (long-term IR). [NASDAQ: SIGI]The outlook for these credit ratings is stable. All companies are headquartered in Branchville, New Jersey. (See below for a detailed list of companies and ratings.)
The rating reflects the strength of Selective’s balance sheet, which AM Best rates as the strongest, strong financial performance, favorable business profile and good corporate risk management.
Selective’s balance sheet strength is underpinned by its risk-adjusted capital position and financial flexibility provided by its publicly traded parent, partially offset by catastrophe losses and exposure to terrorism It has been. Profitability has improved over the past five years, both in absolute terms and relative to peers. The Group’s underwriting results benefit from its low to medium risk business mix, conservative underwriting philosophy and catastrophe risk mitigation initiatives. In addition, the Group has improved its underwriting results for more challenging commercial vehicles and surplus and surplus businesses through various underwriting initiatives and target rate increases. The favorable business profile is based in part on the Group’s close working relationships with selected agencies and the use of technology to enhance its underwriting and servicing capabilities.
An FSR of A+ (Superior) and a long-term ICR of ‘aa-‘ (Superior) are confirmed with a stable outlook for the pooled members of the Selective Insurance Group.
American Selective Insurance Company
Selective Way Insurance Company
Southeast Selective Insurance Company
New York Selective Insurance Company
Selective Insurance Company in South Carolina
New England Selective Insurance Company
Selective Auto Insurance Company in New Jersey
Mesa Underwriters Specialty Insurance Company
Selective property and casualty insurance company
Selective fire insurance company
The following long-term IRs have been confirmed with a stable outlook.
Selective Insurance Group, Inc.—
— $49.9 million 7.25% senior unsecured notes, ‘a-‘ due 2034
— ‘a-‘ (Quality) on $99.4 million 6.70% senior unsecured notes due 2035
— ‘a-‘ on $294.2 million 5.375% senior unsecured notes due 2049
The following indicative long-term IRs confirm a stable outlook for current shelf registrations.
Selective Insurance Group, Inc.—
— “a-” for senior unsecured debt
— ‘bbb+’ (good) for subordinated debt
— ‘bbb’ (good) for preferred stock
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