AM Best Affirms Credit Ratings of Selective Insurance Group, Inc. and Its Subsidiaries
MWN-AI** Summary
AM Best has affirmed the credit ratings of Selective Insurance Group, Inc. (NASDAQ: SIGI) and its subsidiaries, highlighting their robust financial performance. The Financial Strength Rating (FSR) is maintained at A+ (Superior), while the Long-Term Issuer Credit Ratings (ICR) for the pooled members are rated “aa-” (Superior). The ratings reflect Selective's strong balance sheet strength, solid operational performance, and effective enterprise risk management. The outlook for these ratings is stable.
Selective Insurance Group's balance sheet is bolstered by its highest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The company's financial resilience is supported by a comprehensive reinsurance strategy, a conservative investment profile, and flexible financial structures due to its publicly traded parent organization. Nevertheless, challenges remain, such as the potential for higher catastrophe losses and ongoing adverse reserve developments.
Recognized for its consistent underwriting profitability, Selective has experienced growth in investment income, outperforming the commercial casualty composite in both five- and ten-year averages. The company operates across three segments: standard commercial lines (79% of total net premiums), excess and surplus lines (12%), and standard personal lines (9%). Its cautious underwriting practices, combined with catastrophe risk management strategies, have allowed the company to maintain high historical returns on equity.
Moreover, Selective is entrusted as a servicing carrier in the National Flood Insurance Program, administered by FEMA. The affirmed credit ratings include several long-term issue ratings for various senior unsecured notes due in upcoming years, all with stable outlooks. Overall, Selective Insurance Group remains well-positioned in a competitive market, emphasizing innovation and agency relationships to drive future growth.
MWN-AI** Analysis
AM Best has recently affirmed the Financial Strength Rating (FSR) of A+ (Superior) for Selective Insurance Group and its subsidiaries, alongside a Long-Term Issuer Credit Rating (ICR) of “aa-” (Superior). These ratings reflect the robust financial health and operational effectiveness of Selective, attributed to its strongest balance sheet strength, characterized by strong risk-adjusted capitalization.
Investors and stakeholders should view this affirmation as a positive indicator of Selective's stability and reliability within the insurance sector. Selective has demonstrated a strong operating performance, evidenced by high historical return on equity and a favorable underwriting record. The company has maintained underwriting profitability alongside increasing investment income, positioning itself favorably against its commercial casualty peers.
However, investors should be cognizant of the potential challenges posed by exposure to catastrophe losses and adverse reserve developments. While Selective's comprehensive reinsurance program and conservative risk management practices mitigate these risks, they remain considerations for the future performance of the organization.
With Selective's business strategically segmented into commercial lines, excess and surplus lines, and personal lines, the firm is well-positioned to capitalize on various market opportunities. The emphasis on targeting the mass affluent market within personal lines and the implementation of targeted rate increases across its book of business further signify proactive management practices that could enhance growth trajectories.
For those considering investment or engagement with Selective Insurance Group, the affirmations of stable outlook ratings coupled with the company's strong balance sheet provide a favorable environment for potential investment. As such, monitoring future developments in catastrophe exposure and underwriting results will be essential to gauge Selective’s ongoing performance in a competitive and often volatile insurance landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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, Best’s Performance Assessments, 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. For more information, visit www.ambest.com .
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Michael Cantalino
Senior Financial Analyst
+1 908 882 2243
michael.cantalino@ambest.com
Edin Imsirovic
Director
+1 908 882 1903
edin.imsirovic@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
FAQ**
How does Selective Insurance Group Inc. (SIGI) plan to mitigate its elevated exposure to catastrophe losses while maintaining its A+ Financial Strength Rating affirmed by AM Best?
What strategies is Selective Insurance Group Inc. (SIGI) implementing to increase its limit profile in the mass affluent market within its standard personal lines segment?
Given the affirmed ratings from AM Best, how does Selective Insurance Group Inc. (SIGI) intend to sustain its strong operating performance and favorable business profile against potential market fluctuations?
What impact does Selective Insurance Group Inc. (SIGI)'s comprehensive reinsurance program have on its financial flexibility and overall risk management as assessed by AM Best?
**MWN-AI FAQ is based on asking OpenAI questions about Selective Insurance Group Inc. (NASDAQ: SIGI).
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