A.M. Best Affirms Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)--Oct 3, 2018--A.M. 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 ten pooled members of Selective Insurance Group (Selective). Additionally, A.M. 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]. All companies are headquartered in Branchville, NJ. The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of companies and ratings.)
The ratings reflect Selective’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
Selective’s balance sheet strength is supported by its risk-adjusted capital position and the financial flexibility provided by its publicly traded parent. Profitability has improved over the past five years on an absolute basis and relative to its peers, partly due to a lack of major catastrophe losses. A.M. Best expects that the group will successfully improve underwriting results in its more challenged commercial auto and excess and surplus books of business through underwriting 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 $185.0 million 5.875% senior unsecured notes, due 2043
The following indicative Long-Term IRs on the shelf registration have been affirmed:
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 A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
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CONTACT: A.M. Best
Senior Financial Analyst
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+1 908 439 2200, ext. 5159
Jacqalene Lentz, CPA
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Director, Public Relations
+1 908 439 2200, ext. 5644
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 10/03/2018 03:12 PM/DISC: 10/03/2018 03:12 PM