Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SELECTIVE INSURANCE GROUP INC | f8k_042313.htm |
| EX-99.1 - EXHIBIT 99.1 - SELECTIVE INSURANCE GROUP INC | exh_991.htm |
Exhibit 99.2
 Supplemental Investor Package
___________________________________________________
First Quarter 2013
Investor Contact:
Jennifer DiBerardino
Senior Vice President, Investor Relations and Treasurer
Tel: 973-948-1364
jennifer.diberardino@selective.com
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Selective Insurance Group, Inc.
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Selected Balance Sheet Data (unaudited)
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($ in thousands, except per share amounts)
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March 31,
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March 31,
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December 31,
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2013
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2012
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2012
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Unrecognized/
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Unrecognized/
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Unrecognized/
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Balance
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Market
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Unrealized
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Balance
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Market
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Unrealized
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Balance
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Market
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Unrealized
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||||||||||||||||||||||||||||
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Sheet
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Value
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Gain/(Loss)
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Sheet
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Value
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Gain/(Loss)
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Sheet
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Value
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Gain/(Loss)
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Invested Assets:
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Corporate bonds1
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$ | 2,388,239 | 2,396,950 | 100,025 | $ | 2,072,573 | 2,086,423 | 85,230 | $ | 2,239,284 | 2,250,536 | 110,822 | ||||||||||||||||||||||||
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Government and Municipal bonds
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1,585,513 | 1,612,584 | 89,801 | 1,629,130 | 1,659,819 | 101,166 | 1,610,798 | 1,640,138 | 99,026 | |||||||||||||||||||||||||||
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Total bonds
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3,973,752 | 4,009,534 | 189,826 | 3,701,703 | 3,746,242 | 186,396 | 3,850,082 | 3,890,674 | 209,848 | |||||||||||||||||||||||||||
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Equities
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174,745 | 174,745 | 31,181 | 152,986 | 152,986 | 22,773 | 151,382 | 151,382 | 18,941 | |||||||||||||||||||||||||||
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Short-term investments
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163,440 | 163,440 | - | 174,472 | 174,472 | - | 214,479 | 214,479 | - | |||||||||||||||||||||||||||
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Other investments
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109,855 | 109,855 | (4,592 | ) | 125,140 | 125,140 | (4,989 | ) | 114,076 | 114,076 | (4,805 | ) | ||||||||||||||||||||||||
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Total invested assets
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4,421,792 | 4,457,574 | 216,415 | 4,154,301 | 4,198,840 | 204,180 | 4,330,019 | 4,370,611 | 223,984 | |||||||||||||||||||||||||||
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Invested assets per $ of stockholders' equity
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3.89 | 3.84 | 3.97 | |||||||||||||||||||||||||||||||||
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Total assets
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6,344,027 | 5,629,597 | 6,794,216 | |||||||||||||||||||||||||||||||||
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Liabilities:
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Reserve for losses and loss expenses
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3,474,392 | 3,035,773 | 4,068,941 | |||||||||||||||||||||||||||||||||
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Unearned premium reserve
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1,005,475 | 937,909 | 974,706 | |||||||||||||||||||||||||||||||||
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Total liabilities
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5,207,682 | 4,546,679 | 5,703,624 | |||||||||||||||||||||||||||||||||
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Stockholders' equity
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1,136,345 | 1,082,918 | 1,090,592 | |||||||||||||||||||||||||||||||||
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Total debt to capitalization ratio
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25.7 | % | 22.1 | % | 22.0 | % | ||||||||||||||||||||||||||||||
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Adjusted total debt to capitalization ratio 2
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N/A | 15.6 | % | 15.6 | % | |||||||||||||||||||||||||||||||
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Book value per share
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20.46 | 19.76 | 19.77 | |||||||||||||||||||||||||||||||||
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Book value per share excluding
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unrealized gain or loss on bond portfolio
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18.66 | 18.08 | 17.78 | |||||||||||||||||||||||||||||||||
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NPW per insurance segment employee3
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864 | N/M | 842 | |||||||||||||||||||||||||||||||||
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Statutory premiums to surplus ratio
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1.5 | x | 1.4 | x | 1.6 | x | ||||||||||||||||||||||||||||||
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Statutory surplus
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1,151,959 | 1,083,174 | 1,050,107 | |||||||||||||||||||||||||||||||||
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1 Includes mortgage-backed and asset-backed securities.
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2 The adjusted debt to capitalization ratio reflects an estimated equity treatment of 90% applied to our $100 million Junior Subordinated Notes issued September 25, 2006 as applied by A.M. Best. These notes were redeemed in March 2013.
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3 Prior year amounts have been restated to include the impact of E&S.
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Selective Insurance Group, Inc.
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Selected Income Statement Data (unaudited)
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March 2013
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THREE MONTHS ENDED March 31,
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($ in thousands, except per share amounts)
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2013
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2012
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Per diluted share
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Per diluted share
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Consolidated
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Revenue
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$ | 459,949 | $ | 419,348 | |||||||||||||
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Operating income
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20,124 | 0.36 | 15,260 | 0.28 | |||||||||||||
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Net realized gains, after tax
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2,181 | 0.04 | 2,833 | 0.05 | |||||||||||||
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Income from continuing operations
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22,305 | 0.40 | 18,093 | 0.33 | |||||||||||||
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Loss on discontinued operations, after tax
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(997 | ) | (0.02 | ) | - | - | |||||||||||
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Net income
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21,308 | 0.38 | 18,093 | 0.33 | |||||||||||||
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Operating return on equity
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7.2 | % | 5.7 | % | |||||||||||||
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Total Insurance Operations
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Gross premiums written
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537,298 | 497,955 | |||||||||||||||
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Net premiums written
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450,124 | 420,172 | |||||||||||||||
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Net premiums earned
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420,940 | 378,829 | |||||||||||||||
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Underwriting income (loss)
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- before tax
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12,161 | (1,363 | ) | |||||||||||||
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- after tax
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7,905 | 0.14 | (886 | ) | (0.02 | ) | |||||||||||
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GAAP combined ratio
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97.1 | % | 100.4 | % | |||||||||||||
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Total Standard lines
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Net premiums earned
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390,881 | 369,106 | |||||||||||||||
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GAAP combined ratio
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96.9 | % | 99.0 | % | |||||||||||||
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Standard Commercial lines
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Net premiums earned
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317,845 | 300,497 | |||||||||||||||
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GAAP combined ratio
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98.1 | % | 99.9 | % | |||||||||||||
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Standard Personal lines
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Net premiums earned
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73,036 | 68,609 | |||||||||||||||
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GAAP combined ratio
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91.8 | % | 95.5 | % | |||||||||||||
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Excess and Surplus lines
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Net premiums earned
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30,059 | 9,723 | |||||||||||||||
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GAAP combined ratio
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99.7 | % | 150.3 | % | |||||||||||||
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Investments
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Net investment income
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- before tax
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32,870 | 32,628 | ||||||||||||||
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- after tax
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24,839 | 0.44 | 24,775 | 0.45 | |||||||||||||
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Effective tax rate
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24.4 | % | 24.1 | % | |||||||||||||
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Annual after-tax yield on investment portfolio
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2.3 | % | 2.4 | % | |||||||||||||
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Annual after-tax, after-interest expense yield
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1.9 | % | 2.1 | % | |||||||||||||
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Invested assets per $ of stockholders' equity
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3.89 | 3.84 | |||||||||||||||
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Other expenses (net of other income)
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Interest expense
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- before tax
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(5,831 | ) | (4,700 | ) | ||||||||||||
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- after tax
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(3,790 | ) | (0.07 | ) | (3,055 | ) | (0.05 | ) | |||||||||
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Other Expense - after tax1
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$ | (8,830 | ) | (0.15 | ) | $ | (5,574 | ) | (0.10 | ) | |||||||
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Diluted weighted avg shares outstanding
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56,455 | 55,605 | |||||||||||||||
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1 The 2013 after-tax expense includes the write-off of $2.2 million of our remaining capitalized debt issuance costs related to our 7.5% Junior Notes that we redeemed in March 2013, and a $2.1 million increase in our long-term employee compensation expense related to the increase in our stock price.
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Selective Insurance Group, Inc. and Consolidated Subsidiaries
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GAAP Investment Income
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(unaudited)
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($ in thousands)
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Year to Date
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%
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March
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March
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Increase
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2013
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2012
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(Decrease)
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Investment Income:
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Interest:
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Fixed Maturity Securities
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30,089 | 31,350 | (4.0 | ) | ||||||||
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Short-term
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52 | 38 | 36.8 | |||||||||
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Other Investments:
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Alternative Investments
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4,240 | 2,295 | 84.7 | |||||||||
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Other
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(638 | ) | (295 | ) | (116.3 | ) | ||||||
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Dividends
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1,207 | 1,237 | (2.4 | ) | ||||||||
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Miscellaneous
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- | 39 | (100.0 | ) | ||||||||
| 34,950 | 34,664 | 0.8 | ||||||||||
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Investment Expense
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2,080 | 2,036 | 2.2 | |||||||||
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Net Investment Income Before Tax
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32,870 | 32,628 | 0.7 | |||||||||
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Tax
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8,031 | 7,853 | 2.3 | |||||||||
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Net Investment Income After Tax
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$ | 24,839 | 24,775 | 0.3 | ||||||||
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Net Investment Income per Share
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$ | 0.44 | 0.45 | (2.2 | ) | |||||||
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Effective Tax Rate
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24.4 | % | 24.1 | % | ||||||||
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Average Yields :
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Fixed Maturity Securities:
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Pre Tax
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3.08 | % | 3.43 | % | ||||||||
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After Tax
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2.33 | % | 2.59 | % | ||||||||
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Portfolio:
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Pre Tax
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3.00 | % | 3.16 | % | ||||||||
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After Tax
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2.27 | % | 2.40 | % | ||||||||
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Year to date:
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March
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March
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Net Realized Gains (Losses)
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2013
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2012
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Fixed Maturities
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651 | 184 | |||||||
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Equity Securities
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5,287 | 4,176 | |||||||
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Short Term Investments
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- | (2 | ) | ||||||
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Other Investments
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(2,583 | ) | - | ||||||
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Total
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3,355 | 4,358 | |||||||
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Net of Tax
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2,181 | 2,833 | |||||||
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As of March 31, 2013 new money rates for fixed maturity securities were 1.48% on a pre-tax basis and 1.04% on an after tax-basis.
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Selective Insurance Group, Inc.
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2013 Statutory Results by Line of Business
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March YTD unaudited
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($ in thousands)
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Net
Premiums |
Percent
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Net
Premiums |
Percent
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Loss
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LAE
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Underwriting
Expense |
Dividends to
Policyholders |
Combined
Ratio
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Combined
Ratio
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Underwriting
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Written
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Change
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Earned
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Change
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Ratio
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Ratio
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Ratio
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Ratio
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2013
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2012
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Gain/(Loss)
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Standard Personal Lines:
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Homeowners
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$ | 27,834 | 10.4 | % | $ | 31,135 | 11.4 | % | 44.6 | % | 9.3 | % | 33.8 | % | 0.0 | % | 87.7 | % | 91.9 | % | $ | 4,933 | ||||||||||||||||||||||
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Auto
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37,685 | 1.1 | % | 38,393 | 2.5 | % | 62.8 | % | 12.7 | % | 30.2 | % | 0.0 | % | 105.7 | % | 109.8 | % | (1,964 | ) | ||||||||||||||||||||||||
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Other (including flood)
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3,036 | (0.9 | )% | 3,508 | 9.8 | % | 74.2 | % | (20.1 | )% | (73.2 | )% | 0.0 | % | (19.1 | )% | 8.1 | % | 3,832 | |||||||||||||||||||||||||
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Total
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$ | 68,555 | 4.6 | % | $ | 73,036 | 6.5 | % | 55.6 | % | 9.7 | % | 27.1 | % | 0.0 | % | 92.4 | % | 97.7 | % | $ | 6,801 | ||||||||||||||||||||||
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Standard Commercial Lines:
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Commerical property
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$ | 57,760 | 8.9 | % | $ | 53,415 | 8.2 | % | 42.0 | % | 5.6 | % | 39.0 | % | 0.0 | % | 86.6 | % | 83.9 | % | $ | 5,470 | ||||||||||||||||||||||
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Workers compensation
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75,405 | 3.0 | % | 66,084 | 0.4 | % | 75.6 | % | 15.9 | % | 25.6 | % | 1.8 | % | 118.9 | % | 110.9 | % | (14,850 | ) | ||||||||||||||||||||||||
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General liability
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109,405 | 8.7 | % | 97,703 | 8.4 | % | 44.9 | % | 17.0 | % | 34.0 | % | 0.0 | % | 95.9 | % | 100.2 | % | 27 | |||||||||||||||||||||||||
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Auto
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81,872 | 8.0 | % | 74,347 | 5.5 | % | 57.9 | % | 8.7 | % | 31.5 | % | (0.1 | )% | 98.0 | % | 96.6 | % | (880 | ) | ||||||||||||||||||||||||
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Business owners policies
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20,359 | 11.7 | % | 18,540 | 10.0 | % | 19.0 | % | 15.4 | % | 42.6 | % | 0.0 | % | 77.0 | % | 99.4 | % | 3,496 | |||||||||||||||||||||||||
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Bonds
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4,954 | 6.7 | % | 4,764 | 2.2 | % | 13.7 | % | 3.4 | % | 60.9 | % | 0.0 | % | 78.0 | % | 88.1 | % | 934 | |||||||||||||||||||||||||
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Other
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3,434 | 4.9 | % | 2,991 | (5.6 | )% | (0.7 | )% | 0.8 | % | 38.5 | % | 0.0 | % | 38.6 | % | 37.0 | % | 1,665 | |||||||||||||||||||||||||
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Total
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$ | 353,189 | 7.4 | % | $ | 317,845 | 5.8 | % | 51.4 | % | 12.5 | % | 33.4 | % | 0.3 | % | 97.6 | % | 98.0 | % | $ | (4,139 | ) | |||||||||||||||||||||
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Total Standard Operations
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$ | 421,744 | 6.9 | % | $ | 390,881 | 5.9 | % | 52.2 | % | 12.0 | % | 32.3 | % | 0.3 | % | 96.8 | % | 98.0 | % | $ | 2,662 | ||||||||||||||||||||||
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E&S
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28,380 | 10.0 | % | 30,059 | 209.2 | % | 47.9 | % | 15.7 | % | 34.6 | % | 0.0 | % | 98.2 | % | 120.3 | % | 1,134 | |||||||||||||||||||||||||
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Total Insurance Operations
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$ | 450,124 | 7.1 | % | $ | 420,940 | 11.1 | % | 51.9 | % | 12.2 | % | 32.4 | % | 0.3 | % | 96.8 | % | 99.1 | % | $ | 3,796 | ||||||||||||||||||||||
Note: Some amounts may not foot due to rounding.
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2013
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2012
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Losses Paid
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$ | 187,285 | $ | 206,893 | ||||||||
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LAE Paid
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44,989 | 43,536 | ||||||||||
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Total Paid
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$ | 232,274 | $ | 250,429 | ||||||||
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SELECTIVE INSURANCE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
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Unaudited
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($ in thousands, except share amounts)
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March 31,
2013
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December 31,
2012
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ASSETS
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Investments:
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Fixed maturity securities, held-to-maturity – at carrying value (fair value: $543,553 – 2013; $594,661 – 2012)
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$ | 507,771 | 554,069 | |||||
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Fixed maturity securities, available-for-sale – at fair value (amortized cost: $3,314,989 – 2013;
$3,130,683 – 2012)
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3,465,981 | 3,296,013 | ||||||
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Equity securities, available-for-sale – at fair value (cost: $143,564 – 2013; $132,441 – 2012)
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174,745 | 151,382 | ||||||
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Short-term investments (at cost which approximates fair value)
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163,440 | 214,479 | ||||||
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Other investments
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109,855 | 114,076 | ||||||
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Total investments
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4,421,792 | 4,330,019 | ||||||
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Cash
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296 | 210 | ||||||
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Interest and dividends due or accrued
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35,254 | 35,984 | ||||||
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Premiums receivable, net of allowance for uncollectible accounts of: $4,152 – 2013; $3,906 – 2012
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520,590 | 484,388 | ||||||
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Reinsurance recoverables, net
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788,000 | 1,421,109 | ||||||
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Prepaid reinsurance premiums
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134,222 | 132,637 | ||||||
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Current federal income tax
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— | 2,569 | ||||||
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Deferred federal income tax
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105,014 | 119,136 | ||||||
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Property and equipment – at cost, net of accumulated depreciation and amortization of:
$171,715 – 2013; $169,428 – 2012
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48,327 | 47,131 | ||||||
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Deferred policy acquisition costs
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158,486 | 155,523 | ||||||
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Goodwill
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7,849 | 7,849 | ||||||
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Other assets
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124,197 | 57,661 | ||||||
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Total assets
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$ | 6,344,027 | 6,794,216 | |||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Liabilities:
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||||||||
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Reserve for loss and loss expenses
|
$ | 3,474,392 | 4,068,941 | |||||
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Unearned premiums
|
1,005,475 | 974,706 | ||||||
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Notes payable
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392,393 | 307,387 | ||||||
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Current federal income tax
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3,075 | — | ||||||
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Accrued salaries and benefits
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103,868 | 152,396 | ||||||
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Other liabilities
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228,479 | 200,194 | ||||||
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Total liabilities
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$ | 5,207,682 | 5,703,624 | |||||
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Stockholders’ Equity:
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||||||||
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Preferred stock of $0 par value per share:
|
$ | — | — | |||||
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Authorized shares 5,000,000; no shares issued or outstanding
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Common stock of $2 par value per share:
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||||||||
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Authorized shares 360,000,000
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||||||||
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Issued: 98,708,185 – 2013; 98,194,224 – 2012
|
197,416 | 196,388 | ||||||
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Additional paid-in capital
|
276,717 | 270,654 | ||||||
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Retained earnings
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1,139,111 | 1,125,154 | ||||||
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Accumulated other comprehensive income
|
81,921 | 54,040 | ||||||
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Treasury stock – at cost
(shares: 43,177,212 – 2013; 43,030,776 – 2012)
|
(558,820 | ) | (555,644 | ) | ||||
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Total stockholders’ equity
|
1,136,345 | 1,090,592 | ||||||
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Commitments and contingencies
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Total liabilities and stockholders’ equity
|
$ | 6,344,027 | 6,794,216 | |||||
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SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
Quarter ended March 31,
|
|||||||
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($ in thousands, except per share amounts)
|
2013
|
2012
|
||||||
|
Revenues:
|
||||||||
|
Net premiums earned
|
$ | 420,940 | 378,829 | |||||
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Net investment income earned
|
32,870 | 32,628 | ||||||
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Net realized gains:
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||||||||
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Net realized investment gains
|
5,304 | 4,779 | ||||||
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Other-than-temporary impairments
|
(1,919 | ) | (257 | ) | ||||
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Other-than-temporary impairments on fixed maturity securities recognized in other comprehensive income
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(30 | ) | (164 | ) | ||||
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Total net realized gains
|
3,355 | 4,358 | ||||||
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Other income
|
2,784 | 3,533 | ||||||
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Total revenues
|
459,949 | 419,348 | ||||||
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Expenses:
|
||||||||
|
Loss and loss expense incurred
|
269,849 | 252,906 | ||||||
|
Policy acquisition costs
|
139,528 | 127,958 | ||||||
|
Interest expense
|
5,831 | 4,700 | ||||||
|
Other expenses
|
15,873 | 10,593 | ||||||
|
Total expenses
|
431,081 | 396,157 | ||||||
|
Income from continuing operations, before federal income tax
|
28,868 | 23,191 | ||||||
|
Federal income tax expense (benefit):
|
||||||||
|
Current
|
7,453 | 7,178 | ||||||
|
Deferred
|
(890 | ) | (2,080 | ) | ||||
|
Total federal income tax expense
|
6,563 | 5,098 | ||||||
|
Net income from continuing operations
|
22,305 | 18,093 | ||||||
|
Loss on disposal of discontinued operations, net of tax of $(538)
|
(997 | ) | — | |||||
|
Net income
|
$ | 21,308 | 18,093 | |||||
|
Earnings per share:
|
||||||||
|
Basic net income from continuing operations
|
$ | 0.40 | 0.33 | |||||
|
Basic net loss from discontinued operations
|
(0.02 | ) | — | |||||
|
Basic net income
|
$ | 0.38 | 0.33 | |||||
|
Diluted net income from continuing operations
|
$ | 0.40 | 0.33 | |||||
|
Diluted net loss from discontinued operations
|
(0.02 | ) | — | |||||
|
Diluted net income
|
$ | 0.38 | 0.33 | |||||
|
Dividends to stockholders
|
$ | 0.13 | 0.13 | |||||
|
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
Quarter ended March 31,
|
|||||||
|
($ in thousands)
|
2013
|
2012
|
||||||
|
Net income
|
$ | 21,308 | 18,093 | |||||
|
Other comprehensive income, net of tax:
|
||||||||
|
Unrealized gains on investment securities:
|
||||||||
|
Unrealized holding gains arising during period
|
2,394 | 12,873 | ||||||
|
Non-credit portion of other-than-temporary impairment losses
recognized in other comprehensive income
|
24 | 238 | ||||||
|
Amortization of net unrealized gains on held-to-maturity securities
|
(413 | ) | (516 | ) | ||||
|
Less: reclassification adjustment for gains included in net income
|
(3,937 | ) | (2,833 | ) | ||||
|
Total unrealized gains on investment securities
|
(1,932 | ) | 9,762 | |||||
|
Defined benefit pension and post-retirement plans:
|
||||||||
|
Net actuarial gain
|
28,600 | — | ||||||
|
Reversal of amortization items:
|
||||||||
|
Net actuarial loss included in net income
|
1,196 | 903 | ||||||
|
Prior service cost included in net income
|
6 | 25 | ||||||
|
Curtailment expense included in net income
|
11 | — | ||||||
|
Total defined benefit pension and post-retirement plans
|
29,813 | 928 | ||||||
|
Other comprehensive income
|
27,881 | 10,690 | ||||||
|
Comprehensive income
|
$ | 49,189 | 28,783 | |||||
|
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
|
Quarter ended March 31,
|
|||||||
|
($ in thousands)
|
2013
|
2012
|
||||||
|
Common stock:
|
||||||||
|
Beginning of year
|
$ | 196,388 | 194,494 | |||||
|
Dividend reinvestment plan (shares: 17,314 – 2013; 22,916 – 2012)
|
35 | 46 | ||||||
|
Stock purchase and compensation plans (shares: 496,647 – 2013; 540,322 – 2012)
|
993 | 1,080 | ||||||
|
End of period
|
197,416 | 195,620 | ||||||
|
Additional paid-in capital:
|
||||||||
|
Beginning of year
|
270,654 | 257,370 | ||||||
|
Dividend reinvestment plan
|
349 | 358 | ||||||
|
Stock purchase and compensation plans
|
5,714 | 4,608 | ||||||
|
End of period
|
276,717 | 262,336 | ||||||
|
Retained earnings:
|
||||||||
|
Beginning of year
|
1,125,154 | 1,116,319 | ||||||
|
Net income
|
21,308 | 18,093 | ||||||
|
Dividends to stockholders ($0.13 per share – 2013 and 2012)
|
(7,351 | ) | (7,270 | ) | ||||
|
End of period
|
1,139,111 | 1,127,142 | ||||||
|
Accumulated other comprehensive income:
|
||||||||
|
Beginning of year
|
54,040 | 42,294 | ||||||
|
Other comprehensive income
|
27,881 | 10,690 | ||||||
|
End of period
|
81,921 | 52,984 | ||||||
|
Treasury stock:
|
||||||||
|
Beginning of year
|
(555,644 | ) | (552,149 | ) | ||||
|
Acquisition of treasury stock (shares: 146,436 – 2013; 168,614 – 2012)
|
(3,176 | ) | (3,015 | ) | ||||
|
End of period
|
(558,820 | ) | (555,164 | ) | ||||
|
Total stockholders’ equity
|
$ | 1,136,345 | 1,082,918 | |||||
|
SELECTIVE INSURANCE GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW
|
Quarter ended March 31,
|
|||||||
|
($ in thousands)
|
2013
|
2012
|
||||||
|
Operating Activities
|
||||||||
|
Net income
|
$ | 21,308 | 18,093 | |||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
13,148 | 9,748 | ||||||
|
Loss on disposal of discontinued operations
|
997 | — | ||||||
|
Stock-based compensation expense
|
3,692 | 3,329 | ||||||
|
Undistributed losses of equity method investments
|
426 | 764 | ||||||
|
Net realized gains
|
(3,355 | ) | (4,358 | ) | ||||
|
Retirement income plan curtailment expense
|
16 | — | ||||||
|
Changes in assets and liabilities:
|
||||||||
|
Increase in reserves for loss and loss expense, net of reinsurance recoverables
|
38,556 | 6,311 | ||||||
|
Increase in unearned premiums, net of prepaid reinsurance and advance premiums
|
30,106 | 41,769 | ||||||
|
Decrease in net federal income taxes
|
5,290 | 4,227 | ||||||
|
Increase in premiums receivable
|
(36,202 | ) | (25,107 | ) | ||||
|
Increase in deferred policy acquisition costs
|
(2,963 | ) | (8,570 | ) | ||||
|
Decrease in interest and dividends due or accrued
|
384 | 1,108 | ||||||
|
Decrease in accrued salaries and benefits
|
(4,528 | ) | (5,356 | ) | ||||
|
Decrease in accrued insurance expenses
|
(12,378 | ) | (13,476 | ) | ||||
|
Other-net
|
(26,357 | ) | 7,373 | |||||
|
Net adjustments
|
6,832 | 17,762 | ||||||
|
Net cash provided by operating activities
|
28,140 | 35,855 | ||||||
|
Investing Activities
|
||||||||
|
Purchase of fixed maturity securities, available-for-sale
|
(308,289 | ) | (226,525 | ) | ||||
|
Purchase of equity securities, available-for-sale
|
(2 | ) | (39,724 | ) | ||||
|
Purchase of other investments
|
(2,329 | ) | (2,990 | ) | ||||
|
Purchase of short-term investments
|
(644,274 | ) | (368,210 | ) | ||||
|
Purchase of subsidiary
|
— | 255 | ||||||
|
Sale of subsidiary
|
225 | 287 | ||||||
|
Sale of fixed maturity securities, available-for-sale
|
6,851 | 14,308 | ||||||
|
Sale of short-term investments
|
695,313 | 410,780 | ||||||
|
Redemption and maturities of fixed maturity securities, held-to-maturity
|
28,644 | 38,879 | ||||||
|
Redemption and maturities of fixed maturity securities, available-for-sale
|
124,975 | 84,124 | ||||||
|
Sale of equity securities, available-for-sale
|
— | 57,513 | ||||||
|
Distributions from other investments
|
3,447 | 5,299 | ||||||
|
Purchase of property and equipment
|
(3,673 | ) | (2,263 | ) | ||||
|
Net cash used in investing activities
|
(99,112 | ) | (28,267 | ) | ||||
|
Financing Activities
|
||||||||
|
Dividends to stockholders
|
(6,824 | ) | (6,713 | ) | ||||
|
Acquisition of treasury stock
|
(3,176 | ) | (3,015 | ) | ||||
|
Net proceeds from stock purchase and compensation plans
|
1,164 | 769 | ||||||
|
Proceeds from issuance of notes payable, net of debt issuance costs
|
178,623 | — | ||||||
|
Repayment of notes payable
|
(100,000 | ) | — | |||||
|
Excess tax benefits from share-based payment arrangements
|
1,271 | 870 | ||||||
|
Net cash provided by (used in) financing activities
|
71,058 | (8,089 | ) | |||||
|
Net increase (decrease) in cash
|
86 | (501 | ) | |||||
|
Cash, beginning of year
|
210 | 762 | ||||||
|
Cash, end of period
|
$ | 296 | 261 | |||||
|
Selective Insurance Group, Inc.
|
||||||||||||
|
Combined Insurance Company Subsidiaries
|
||||||||||||
|
Unaudited Statutory Balance Sheets
|
||||||||||||
|
($ in thousands)
|
||||||||||||
|
Mar-31
|
Mar-31
|
Dec-31
|
||||||||||
|
2013
|
2012
|
2012
|
||||||||||
|
ASSETS
|
||||||||||||
|
Bonds
|
$ | 3,762,737 | 3,534,562 | 3,617,371 | ||||||||
|
Common stocks
|
174,745 | 152,986 | 151,382 | |||||||||
|
Affiliated mortgage loan
|
37,266 | 37,962 | 37,443 | |||||||||
|
Other investments
|
175,873 | 191,227 | 180,110 | |||||||||
|
Short-term investments
|
131,767 | 137,871 | 208,845 | |||||||||
|
Total investments
|
4,282,388 | 4,054,608 | 4,195,151 | |||||||||
|
Cash on hand and in banks
|
8,784 | (33,319 | ) | (76,957 | ) | |||||||
|
Interest and dividends due and accrued
|
35,235 | 35,381 | 35,979 | |||||||||
|
Premiums receivable
|
519,114 | 490,119 | 482,227 | |||||||||
|
Reinsurance recoverable on paid losses and expenses
|
10,369 | 8,565 | 11,354 | |||||||||
|
Deferred tax recoverable
|
151,114 | 143,453 | 147,495 | |||||||||
|
EDP equipment
|
1,188 | 1,711 | 1,372 | |||||||||
|
Equities and deposits in pools and associations
|
7,838 | 6,520 | 12,734 | |||||||||
|
Receivable for sold securities
|
35,930 | 21 | 257 | |||||||||
|
Other assets
|
22,175 | 28,006 | 28,541 | |||||||||
|
Total assets
|
$ | 5,074,135 | 4,735,065 | 4,838,153 | ||||||||
|
LIABILITIES
|
||||||||||||
|
Reserve for losses
|
$ | 2,258,016 | 2,170,597 | 2,226,858 | ||||||||
|
Reinsurance payable on paid loss and loss expense
|
1,813 | 1,260 | 2,298 | |||||||||
|
Reserve for loss expenses
|
434,045 | 423,330 | 427,560 | |||||||||
|
Unearned premiums
|
871,253 | 800,647 | 842,068 | |||||||||
|
Reserve for commissions payable
|
41,304 | 34,182 | 52,304 | |||||||||
|
Ceded balances payable
|
51,565 | 15,569 | 271 | |||||||||
|
Federal income tax payable
|
21,281 | 21,770 | 5,346 | |||||||||
|
Premium and other taxes payable
|
23,226 | 20,419 | 24,604 | |||||||||
|
Borrowed money
|
58,044 | 58,044 | 58,044 | |||||||||
|
Reserve for dividends to policyholders
|
2,348 | 3,486 | 2,665 | |||||||||
|
Reserves for unauthorized reinsurance
|
7,498 | 1,785 | 7,498 | |||||||||
|
Payable for securities
|
46,296 | - | 7,682 | |||||||||
|
Funds withheld on account of others
|
7,217 | 5,927 | 11,231 | |||||||||
|
Accrued salaries and benefits
|
78,592 | 75,336 | 102,070 | |||||||||
|
Other liabilities
|
19,678 | 19,539 | 17,547 | |||||||||
|
Total liabilities
|
3,922,176 | 3,651,891 | 3,788,046 | |||||||||
|
POLICYHOLDERS' SURPLUS
|
||||||||||||
|
Capital
|
42,725 | 32,325 | 42,725 | |||||||||
|
Paid in surplus
|
492,869 | 307,022 | 435,744 | |||||||||
|
Unassigned surplus
|
616,365 | 743,827 | 571,638 | |||||||||
|
Total policyholders' surplus
|
1,151,959 | 1,083,174 | 1,050,107 | |||||||||
|
Total liabilities and policyholders' surplus
|
$ | 5,074,135 | 4,735,065 | 4,838,153 | ||||||||
|
Selective Insurance Group, Inc.
|
||||||||||||||||
|
Combined Insurance Company Subsidiaries
|
||||||||||||||||
|
Unaudited Statutory Statements Of Income
|
||||||||||||||||
|
($ in thousands)
|
||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March | ||||||||||||||||
|
UNDERWRITING
|
2013
|
2012
|
||||||||||||||
|
Net premiums written
|
$ | 450,124 | 420,172 | |||||||||||||
|
Net premiums earned
|
420,940 | 378,829 | ||||||||||||||
|
Net losses paid
|
187,285 | 206,893 | ||||||||||||||
|
Change in reserve for losses
|
31,158 | (2,430 | ) | |||||||||||||
|
Net losses incurred
|
218,443 | 51.9 | % | 204,463 | 54.0 | % | ||||||||||
|
Net loss expenses paid
|
44,989 | 43,536 | ||||||||||||||
|
Change in reserve for loss expenses
|
6,484 | 4,788 | ||||||||||||||
|
Net loss expenses incurred
|
51,473 | 12.2 | % | 48,324 | 12.7 | % | ||||||||||
|
Net underwriting expenses incurred
|
148,340 | 32.9 | % | 136,519 | 32.6 | % | ||||||||||
|
Total deductions
|
418,256 | 389,306 | ||||||||||||||
|
Statutory underwriting gain / (loss)
|
2,684 | (10,477 | ) | |||||||||||||
|
Net loss from premium balances charged off
|
(734 | ) | (1,241 | ) | ||||||||||||
|
Finance charges and other income
|
2,932 | 2,961 | ||||||||||||||
|
Total other income
|
2,198 | -0.5 | % | 1,720 | -0.4 | % | ||||||||||
|
Policyholders' dividends incurred
|
(1,086 | ) | 0.3 | % | (914 | ) | 0.2 | % | ||||||||
|
Total underwriting gain / (loss)
|
3,796 | 96.8 | % | (9,671 | ) | 99.1 | % | |||||||||
|
INVESTMENT
|
||||||||||||||||
|
Net investment income earned
|
33,330 | 33,479 | ||||||||||||||
|
Net realized gain
|
1,212 | 4,358 | ||||||||||||||
|
Total income before income tax
|
38,338 | 28,166 | ||||||||||||||
|
Federal income tax expense
|
15,935 | 9,593 | ||||||||||||||
|
Net income
|
$ | 22,403 | 18,573 | |||||||||||||
|
Policyholders' Surplus
|
||||||||||||||||
|
Surplus, beginning of period
|
$ | 1,050,107 | 1,062,707 | |||||||||||||
|
Net income
|
22,403 | 18,573 | ||||||||||||||
|
Change in deferred taxes
|
254 | 2,086 | ||||||||||||||
|
Change in unrealized gains
|
9,436 | 4,958 | ||||||||||||||
|
Dividends to stockholders
|
(12,120 | ) | (15,765 | ) | ||||||||||||
|
Change in cum. effect of acctg principle
|
- | 44,296 | ||||||||||||||
|
Paid in surplus
|
57,125 | - | ||||||||||||||
|
Change in non-admitted assets
|
16,719 | 10,559 | ||||||||||||||
|
Change in additional admitted deferred taxes
|
- | (44,296 | ) | |||||||||||||
|
Change in Overfunded Contra Asset
|
(8,723 | ) | - | |||||||||||||
|
Qualified pension transitional liability
|
(35,725 | ) | - | |||||||||||||
|
SERP plan transitional liability
|
(595 | ) | - | |||||||||||||
|
PRL plan transitional liability
|
(1,218 | ) | - | |||||||||||||
|
Change in minimum pension liability
|
54,755 | - | ||||||||||||||
|
Surplus adjustments
|
(459 | ) | 56 | |||||||||||||
|
Net change in surplus for period
|
101,852 | 20,467 | ||||||||||||||
|
Surplus, end of period
|
$ | 1,151,959 | 1,083,174 | |||||||||||||
|
Statutory underwriting gain / (loss)
|
$ | 3,796 | (9,671 | ) | ||||||||||||
|
Adjustments under GAAP:
|
||||||||||||||||
|
Deferred policy acquisition costs
|
2,962 | 8,570 | ||||||||||||||
|
Pension costs
|
5,925 | 70 | ||||||||||||||
|
Other, net
|
(522 | ) | (332 | ) | ||||||||||||
|
GAAP underwriting gain / (loss)
|
$ | 12,161 | (1,363 | ) | ||||||||||||
Note: Some amounts or ratios may not foot due to rounding
|
Selective Insurance Group, Inc. and Consolidated Subsidiaries
|
|||||||||||||||||||||||||
|
Alternative Investments
|
|||||||||||||||||||||||||
|
as of March 31, 2013
|
|||||||||||||||||||||||||
|
(unaudited)
|
|||||||||||||||||||||||||
|
Inception
|
Original
|
Remaining
|
Current
|
YTD
|
DPI(1)
|
TVPI(2)
|
|||||||||||||||||||
|
Fund
|
Year
|
Commitment
|
Commitment
|
Market Value
|
Income
|
Ratio
|
Ratio
|
||||||||||||||||||
|
Real Estate
|
|||||||||||||||||||||||||
|
Silverpeak RE II
|
2005
|
20,000,000 | 2,287,839 | 9,369,730 | 525,206 | 0.53 | 0.98 | ||||||||||||||||||
|
Silverpeak RE III
|
2008
|
15,000,000 | 8,003,844 | 2,844,709 | (61,909 | ) | 0.03 | 0.44 | |||||||||||||||||
|
Total - Real Estate
|
35,000,000 | 10,291,683 | 12,214,439 | 463,297 | 0.40 | 0.84 | |||||||||||||||||||
|
Mezzanine Financing
|
|||||||||||||||||||||||||
|
Neovara Euro Mezz
|
2004
|
9,000,000 | - | 579,578 | 118,830 | 0.98 | 1.02 | ||||||||||||||||||
|
GS Mezz V
|
2007
|
25,000,000 | 14,768,207 | 8,305,059 | 277,721 | 0.71 | 1.30 | ||||||||||||||||||
|
New Canaan V
|
2012
|
7,000,000 | 4,491,872 | 2,421,191 | 35,983 | 0.01 | 0.97 | ||||||||||||||||||
|
Centerfield Capital
|
2012
|
3,000,000 | 2,077,118 | 873,128 | 24,174 | 0.01 | 0.95 | ||||||||||||||||||
|
Total - Mezz. Financing
|
44,000,000 | 21,337,197 | 12,178,956 | 456,709 | 1.71 | 1.15 | |||||||||||||||||||
|
Distressed Debt
|
|||||||||||||||||||||||||
|
Varde VIII
|
2006
|
10,000,000 | - | 4,657,980 | 450,683 | 0.76 | 1.22 | ||||||||||||||||||
|
GS Distressed Opp III
|
2007
|
15,000,000 | 2,921,655 | 7,747,946 | 661,096 | 0.51 | 1.09 | ||||||||||||||||||
|
Total - Distressed Debt
|
25,000,000 | 2,921,655 | 12,405,926 | 1,111,779 | 0.61 | 1.14 | |||||||||||||||||||
|
Private Equity
|
|||||||||||||||||||||||||
|
Prospector
|
1997
|
5,000,000 | - | 410,216 | - | 2.79 | 2.88 | ||||||||||||||||||
|
Trilantic Capital Partners III
|
2004
|
10,000,000 | 1,415,949 | 1,943,240 | 15,597 | 1.57 | 1.78 | ||||||||||||||||||
|
NB Co-Invest
|
2006
|
15,000,000 | 1,648,664 | 7,802,611 | (1,065 | ) | 0.78 | 1.32 | |||||||||||||||||
|
Trilantic Capital Partners IV
|
2007
|
11,098,351 | 1,632,471 | 7,575,504 | 564,823 | 0.79 | 1.51 | ||||||||||||||||||
|
Total - Private Equity
|
41,098,351 | 4,697,085 | 17,731,570 | 579,355 | 1.23 | 1.68 | |||||||||||||||||||
|
Private Equity, Secondary Market
|
|||||||||||||||||||||||||
|
NB SOF
|
2005
|
12,000,000 | 899,494 | 5,609,856 | 118,251 | 0.79 | 1.29 | ||||||||||||||||||
|
GS Vintage IV
|
2007
|
20,000,000 | 4,078,567 | 14,011,227 | 829,363 | 0.56 | 1.29 | ||||||||||||||||||
|
NB SOF II
|
2008
|
12,000,000 | 2,487,473 | 8,159,194 | 223,509 | 0.61 | 1.38 | ||||||||||||||||||
|
Total - Pvt. Eq. Sec. Mkt.
|
44,000,000 | 7,465,535 | 27,780,278 | 1,171,123 | 0.64 | 1.31 | |||||||||||||||||||
|
Energy/Power Generation
|
|||||||||||||||||||||||||
|
ArcLight I
|
2002
|
15,000,000 | - | 94,768 | (4,335 | ) | 1.80 | 1.81 | |||||||||||||||||
|
ArcLight II
|
2003
|
15,000,000 | 2,295,492 | 1,444,221 | (244,988 | ) | 1.38 | 1.46 | |||||||||||||||||
|
ArcLight III
|
2006
|
15,000,000 | 2,037,794 | 7,345,438 | 185,582 | 0.77 | 1.23 | ||||||||||||||||||
|
Quintana Energy
|
2006
|
10,000,000 | 1,204,351 | 6,345,705 | 347,630 | 0.56 | 1.28 | ||||||||||||||||||
|
ArcLight IV
|
2007
|
10,000,000 | 2,287,578 | 2,988,219 | 117,583 | 0.98 | 1.28 | ||||||||||||||||||
|
Total - Energy/Power Generation
|
65,000,000 | 7,825,215 | 18,218,351 | 401,472 | 1.18 | 1.44 | |||||||||||||||||||
|
Venture Capital
|
|||||||||||||||||||||||||
|
Venture V
|
2001
|
9,600,000 | 400,000 | 7,369,479 | 56,708 | 0.40 | 1.20 | ||||||||||||||||||
|
Total - Venture Capital
|
9,600,000 | 400,000 | 7,369,479 | 56,708 | 0.40 | 1.20 | |||||||||||||||||||
|
TOTAL - ALTERNATIVE INVESTMENTS
|
$ | 263,698,351 | 54,938,368 | 107,898,999 | 4,240,443 | 0.87 | 1.31 | ||||||||||||||||||
| (1) Distributed to paid in ratio | |||||||||||||||||||||||||
| (2) Total value to paid in ratio | |||||||||||||||||||||||||
| Exhibit may not foot due to rounding | |||||||||||||||||||||||||
|
Selective Insurance Group, Inc. and Consolidated Subsidiaries
|
|
Municipal Bond Portfolio
|
|
State and Repayment Source Composition
|
|
March 31, 2013
|
|
($ in thousands)
|
|
(unaudited)
|
|
Exposure = 36% Held-to-Maturity; 64% Available-for-Sale
|
|
Repayment Source Composition by State
|
||||||||||||
|
Market Values
|
||||||||||||
|
State
|
Revenue
|
% of State
|
General
Obligation
(GO)-Local
|
% of State
|
General
Obligation
(GO)-State
|
% of State
|
TX -
Permanent
School Fund
(PSF)
|
% of State
|
Total
|
% of
Total
|
||
|
TX
|
43,245
|
49%
|
44,709
|
50%
|
1,113
|
1%
|
-
|
0%
|
89,067
|
7%
|
||
|
TX-PSF
|
-
|
0%
|
-
|
0%
|
-
|
0%
|
25,922
|
100%
|
25,922
|
2%
|
||
|
WA
|
51,270
|
50%
|
43,178
|
43%
|
7,114
|
7%
|
-
|
0%
|
101,562
|
8%
|
||
|
NY
|
71,276
|
91%
|
7,281
|
9%
|
-
|
0%
|
-
|
0%
|
78,557
|
6%
|
||
|
AZ
|
58,799
|
88%
|
8,320
|
12%
|
-
|
0%
|
-
|
0%
|
67,119
|
5%
|
||
|
FL
|
52,441
|
84%
|
-
|
0%
|
9,885
|
16%
|
-
|
0%
|
62,326
|
5%
|
||
|
CO
|
21,680
|
40%
|
33,168
|
60%
|
-
|
0%
|
-
|
0%
|
54,848
|
4%
|
||
|
OH
|
20,459
|
43%
|
13,050
|
28%
|
13,893
|
29%
|
-
|
0%
|
47,402
|
3%
|
||
|
NC
|
24,015
|
55%
|
13,651
|
31%
|
6,166
|
14%
|
-
|
0%
|
43,832
|
3%
|
||
|
CA
|
34,528
|
91%
|
3,445
|
9%
|
-
|
0%
|
-
|
0%
|
37,973
|
3%
|
||
|
MO
|
20,233
|
55%
|
16,725
|
45%
|
-
|
0%
|
-
|
0%
|
36,958
|
3%
|
||
|
Pre-refunded
|
54,158
|
50%
|
43,468
|
40%
|
7,816
|
7%
|
3,528
|
3%
|
108,970
|
8%
|
||
|
Other
|
335,551
|
58%
|
122,776
|
21%
|
118,220
|
21%
|
-
|
0%
|
576,547
|
43%
|
||
|
Grand Total
|
787,655
|
59%
|
349,771
|
26%
|
164,207
|
13%
|
29,450
|
2%
|
1,331,083
|
100%
|
||
|
Selective Insurance Group, Inc. and Consolidated Subsidiaries
|
|||||||||||
|
Credit Quality of Available-for-Sale Fixed Maturity Securities
|
|||||||||||
|
March 31, 2013
|
|||||||||||
|
($ in millions)
|
|||||||||||
|
(unaudited)
|
|||||||||||
| Fair Value | Unrealized
Gain (Loss)
|
Weighted
Average
Credit
Quality
|
|||||||||
|
AFS Fixed Maturity Portfolio:
|
|||||||||||
|
U.S. government obligations
|
$ | 245.7 | 15.9 |
AA+
|
|||||||
|
Foreign government obligations
|
30.2 | 1.4 |
AA-
|
||||||||
|
State and municipal obligations
|
849.9 | 39.6 |
AA
|
||||||||
|
Corporate securities
|
1,532.8 | 76.4 | A | ||||||||
|
Mortgage-backed securities ("MBS")
|
635.5 | 15.8 |
AA
|
||||||||
|
Asset-backed securities ("ABS")
|
171.9 | 1.9 |
AAA
|
||||||||
|
Total AFS fixed maturity portfolio
|
$ | 3,466.0 | 151.0 |
AA-
|
|||||||
|
State and Municipal Obligations:
|
|||||||||||
|
Government obligations
|
$ | 380.9 | 18.3 |
AA+
|
|||||||
|
Special revenue obligations
|
469.0 | 21.3 |
AA
|
||||||||
|
Total state and municipal obligations
|
$ | 849.9 | 39.6 |
AA
|
|||||||
|
Corporate Securities:
|
|||||||||||
|
Financial
|
$ | 422.3 | 21.1 | A | |||||||
|
Industrials
|
125.5 | 8.0 | A- | ||||||||
|
Utilities
|
134.2 | 6.6 | A- | ||||||||
|
Consumer discretionary
|
173.6 | 8.1 | A- | ||||||||
|
Consumer staples
|
168.1 | 8.0 | A | ||||||||
|
Healthcare
|
182.5 | 10.0 | A+ | ||||||||
|
Materials
|
87.1 | 4.8 | A- | ||||||||
|
Energy
|
80.5 | 3.6 | A- | ||||||||
|
Information technology
|
94.9 | 3.1 | A | ||||||||
|
Telecommunications services
|
56.1 | 2.3 |
BBB+
|
||||||||
|
Other
|
8.0 | 0.8 |
AA+
|
||||||||
|
Total corporate securities
|
$ | 1,532.8 | 76.4 | A | |||||||
|
MBS:
|
|||||||||||
|
Government guaranteed agency commercial MBS ("CMBS")
|
$ | 42.3 | 1.8 |
AA+
|
|||||||
|
Other-agency CMBS
|
9.5 | - |
AA+
|
||||||||
|
Non-agency CMBS
|
94.8 | 0.6 |
AA
|
||||||||
|
Government guaranteed agency residential MBS ("RMBS")
|
85.0 | 2.9 |
AA+
|
||||||||
|
Non-agency RMBS
|
44.9 | 0.9 | A- | ||||||||
|
Other Agency RMBS
|
353.1 | 9.4 |
AA+
|
||||||||
|
Alternative-A ("Alt-A") RMBS
|
5.9 | 0.2 | A+ | ||||||||
|
Total MBS
|
$ | 635.5 | 15.8 |
AA
|
|||||||
|
ABS:
|
|||||||||||
|
ABS
|
$ | 170.6 | 1.7 |
AAA
|
|||||||
|
Alt-A ABS2
|
0.8 | 0.1 | D | ||||||||
|
Sub-prime ABS1,2
|
0.5 | 0.1 | D | ||||||||
|
Total ABS
|
$ | 171.9 | 1.9 |
AAA
|
|||||||
|
1 We define sub-prime exposure as exposure to direct and indirect investments in non-agency residential mortgages with average FICO® scores below 650.
|
|
2 Alt-A ABS and sub-prime ABS each consist of one security whose issuer is currently expected by rating agencies to default on its obligations.
|
|
Selective Insurance Group, Inc. and Consolidated Subsidiaries
|
|||||||||||||||||||||||
|
Credit Quality of Held-to-Maturity Securities
|
|||||||||||||||||||||||
|
March 31, 2013
|
|||||||||||||||||||||||
|
($ in millions)
|
|||||||||||||||||||||||
|
(unaudited)
|
|||||||||||||||||||||||
|
Fair Value
|
Carry Value
|
Unrecognized
Holding
Gain
|
Unrealized
Gain (Loss)
in Accumulated
Other
Comprehensive
Income
|
Total
Unrealized/
Unrecognized
Gain (Loss)
|
Weighted
Average
Credit
Quality
|
||||||||||||||||||
|
HTM Fixed Maturity Portfolio:
|
|||||||||||||||||||||||
|
Foreign government obligations
|
$ | 5.7 | 5.5 | 0.2 | 0.2 | 0.4 |
AA+
|
||||||||||||||||
|
State and municipal obligations
|
481.2 | 454.3 | 26.9 | 5.6 | 32.5 |
AA
|
|||||||||||||||||
|
Corporate securities
|
39.6 | 35.3 | 4.3 | (0.7 | ) | 3.6 | A | ||||||||||||||||
|
MBS
|
10.2 | 6.9 | 3.3 | (1.1 | ) | 2.2 |
AA
|
||||||||||||||||
|
ABS
|
6.9 | 5.8 | 1.1 | (1.0 | ) | 0.1 | A | ||||||||||||||||
|
Total HTM portfolio
|
$ | 543.6 | 507.8 | 35.8 | 3.0 | 38.8 |
AA
|
||||||||||||||||
|
State and Municipal Obligations:
|
|||||||||||||||||||||||
|
Government obligations
|
$ | 160.1 | 152.1 | 8.0 | 3.1 | 11.1 |
AA
|
||||||||||||||||
|
Special revenue obligations
|
321.1 | 302.2 | 18.9 | 2.5 | 21.4 |
AA
|
|||||||||||||||||
|
Total state and municipal obligations
|
$ | 481.2 | 454.3 | 26.9 | 5.6 | 32.5 |
AA
|
||||||||||||||||
|
Corporate Securities:
|
|||||||||||||||||||||||
|
Financial
|
$ | 9.6 | 8.5 | 1.1 | (0.5 | ) | 0.6 |
BBB+
|
|||||||||||||||
|
Industrials
|
11.8 | 10.3 | 1.5 | (0.2 | ) | 1.3 | A+ | ||||||||||||||||
|
Utilities
|
15.1 | 13.4 | 1.7 | (0.1 | ) | 1.6 | A+ | ||||||||||||||||
|
Consumer discretionary
|
3.1 | 3.1 | - | 0.1 | 0.1 |
AA
|
|||||||||||||||||
|
Total corporate securities
|
$ | 39.6 | 35.3 | 4.3 | (0.7 | ) | 3.6 | A | |||||||||||||||
|
MBS:
|
|||||||||||||||||||||||
|
Non-agency CMBS
|
$ | 10.2 | 6.9 | 3.3 | (1.1 | ) | 2.2 |
AA
|
|||||||||||||||
|
Total MBS
|
$ | 10.2 | 6.9 | 3.3 | (1.1 | ) | 2.2 |
AA
|
|||||||||||||||
|
ABS:
|
|||||||||||||||||||||||
|
ABS
|
$ | 4.4 | 4.0 | 0.4 | (0.2 | ) | 0.2 |
BBB+
|
|||||||||||||||
|
Alt-A ABS
|
2.5 | 1.8 | 0.7 | (0.8 | ) | (0.1 | ) |
AAA
|
|||||||||||||||
|
Total ABS
|
$ | 6.9 | 5.8 | 1.1 | (1.0 | ) | 0.1 | A | |||||||||||||||