A.M. Best Company
11/10/2021 | Press release | Distributed by Public on 11/10/2021 12:50
AM Best Upgrades Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries
NOVEMBER 10, 2021 01:36 PM (EST)
AM Best Upgrades Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries
CONTACTS:
|
Edin Imsirovic Associate Director +1 908 439 2200, ext. 5740 [email protected]
Michael Lagomarsino, CFA, FRM |
Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 [email protected]
Jim Peavy |
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 10, 2021 01:36 PM (EST)
AM Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to "aa-" (Superior) from "a+" (Excellent) of the pooled members of Selective Insurance Group (Selective). Additionally, AM Best has upgraded the Long-Term ICR to "a-" (Excellent) from "bbb+" (Good) and the Long-Term Issue Credit Ratings (Long-Term IR) of the ultimate parent, Selective Insurance Group, Inc. (SIGI) [NASDAQ: SIGI]. The outlook of these Credit Ratings (ratings) have been revised to stable from positive. All companies are headquartered in Branchville, NJ. (Please see below for a detailed listing of companies and ratings.)
These 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 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 upgrade reflects strong levels of profitability over the past five years on an absolute basis and improved profitability relative to its peers. 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 has improved underwriting results in its more challenged commercial auto and excess and surplus books of business through various 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 has been upgraded to A+ (Superior) from A (Excellent) and the Long-Term ICRs to "aa-" (Superior) from "a+" (Excellent) with outlooks revised to stable from positive for the pooled members of Selective Insurance Group:
- Selective Insurance Company of America
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- Selective Way Insurance Company
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- Selective Insurance Company of the Southeast
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- Selective Insurance Company of New York
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- Selective Insurance Company of South Carolina
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- Selective Insurance Company of New England
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- Selective Auto Insurance Company of New Jersey
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- Mesa Underwriters Specialty Insurance Company
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- Selective Casualty Insurance Company
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- Selective Fire & Casualty Insurance Company
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The following Long-Term IRs has been upgraded with outlooks revised to stable from positive:
Selective Insurance Group, Inc.-
- to "a-" (Excellent) from "bbb+" (Good) on $49.9 million 7.25% senior unsecured notes, due 2034
- to "a-" (Excellent) from "bbb+" (Good) on $99.4 million 6.70% senior unsecured notes, due 2035
- to "a-" (Excellent) from "bbb+" (Good) on $294.2 million 5.375% senior unsecured notes, due 2049
The following indicative Long-Term IRs have been upgraded with outlooks revised to stable from positive on the current shelf registration:
Selective Insurance Group, Inc.-
-to "a-" (Excellent) from "bbb+" (Good) on senior unsecured debt
-to "bbb+" (Good) from "bbb" (Good) on subordinated debt
-to "bbb" (Good) from "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, Best's Preliminary Credit Assessments 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.