Selective Insurance Group, Inc. (SIGIP)

Item 1. Business.

Overview

Selective Insurance Group, Inc. ("Parent") is a New Jersey insurance holding company incorporated in 1977. It owns ten property and casualty insurance subsidiaries ("Insurance Subsidiaries") that sell products and services only in the United States ("U.S.") and exclusively through independent insurance agents and wholesale brokers. Nine of our Insurance Subsidiaries are licensed by various state insurance departments as admitted carriers, allowing them to write specific property and casualty lines in the standard market. The tenth subsidiary is authorized as a non-admitted carrier to write property and casualty insurance in the excess and surplus ("E&S") lines market. Throughout this document, we refer to the Parent and the Insurance Subsidiaries collectively as "we," "us," or "our." We use "Parent" when appropriate to distinguish it from the Insurance Subsidiaries. Specific terms related to the property and casualty industry are defined in a glossary attached as Exhibit 99.1 to this Form 10-K.

We have a long and successful history in the property and casualty insurance industry dating back to our 1926 founding. We list our common (stock symbol "SIGI") and preferred (stock symbol "SIGIP") stocks on the Nasdaq Global Select Market. In 2025, AM Best Company ("AM Best") ranked us as the 34th largest property and casualty group in its annual "Top 200 U.S. Property/Casualty Writers" list based on 2024 net premiums written ("NPW"). Our current AM Best financial strength rating is "A+" (Superior).

Strategic Advantages

Our competitive and crowded market requires us to clearly articulate and demonstrate our value proposition to customers, distribution partners, employees, and investors. We believe our five key sustainable competitive advantages are:

•A unique operating model that places empowered decision-makers alongside our customers and distribution partners.

•A franchise-value distribution model, characterized by close and meaningful business relationships with a select group of high-quality distribution partners.

•An ability to develop and integrate sophisticated technology tools that support our front-line employees in making informed risk selection, pricing, and claims decisions.

•A commitment to delivering a superior omnichannel customer experience, enhanced by people and technology.

•A highly engaged and aligned team of extremely talented employees.

Several nationally recognized statistical rating organizations ("NRSROs") evaluate and rate our financial strength, operating performance, strategic position, and ability to meet policyholder obligations.

NRSRO

Financial Strength Rating

Outlook

AM Best

A+

Stable

Standard & Poor’s Global Ratings ("S&P")

Stable

Moody’s Investors Services ("Moody’s")

Stable

Fitch Ratings ("Fitch")

A+

Stable

We believe our AM Best rating most significantly influences our ability to write insurance business. Our independent distribution partners recommend insurance carriers based partly on financial strength ratings to (i) ensure an insurance carrier's ability to pay claims and provide benefits to customers when needed, directly impacting the level of trust a customer has in an insurance carrier and (ii) limit their potential liability for customer error and omission claims. Similarly, many customers consider ratings when purchasing insurance because their loan, mortgage, and other real and personal property security agreements typically require minimum carrier financial strength rating requirements.

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These NRSROs also evaluate and rate our long-term debt creditworthiness and capacity to meet obligations when they come due. Credit ratings significantly influence our overall funding profile and ability to access certain types of liquidity. Our current senior debt credit ratings are as follows:

NRSRO

Credit Rating

Long-Term Credit Outlook

AM Best

Stable

S&P

BBB

Stable

Moody’s

Baa2

Stable

Fitch

BBB+

Stable

Our S&P, Moody's, and Fitch financial strength and credit ratings influence our ability to advantageously access capital markets more than our AM Best rating.

Segments

We have four reportable segments:

•Standard Commercial Lines, which represented 71% of our 2025 "Total revenues" on our Consolidated Statements of Income and 79% of our 2025 total NPW. We sell our Standard Commercial Lines property and casualty insurance products and services to commercial enterprises, typically businesses, non-profit organizations, and local government agencies, primarily in 36 states and the District of Columbia. Our average 2025 Standard Commercial Lines premium per policyholder was approximately $20,600.

•Standard Personal Lines, which represented 8% of our 2025 "Total revenues" on our Consolidated Statements of Income and 8% of our 2025 total NPW. We sell our Standard Personal Lines property and casualty insurance products and services primarily to individuals in 15 states. Our average 2025 Standard Personal Lines premium per policyholder, excluding flood premium, was approximately $4,100. Standard Personal Lines includes flood insurance coverage sold in all 50 states and the District of Columbia through the Write Your Own ("WYO") program of the National Flood Insurance Program ("NFIP"). We are the fourth-largest WYO carrier based on 2024 direct premiums written ("DPW") reported in the S&P Market Intelligence platform.

•E&S Lines, which represented 11% of our 2025 "Total revenues" on our Consolidated Statements of Income and 13% of our 2025 total NPW. We sell our E&S Lines property and casualty insurance products and services in all 50 states and the District of Columbia. Our average 2025 E&S Lines premium per policyholder was approximately $6,000. The market for our E&S Lines property and casualty insurance products and services is commercial customers unable to obtain coverage in the standard marketplace, generally because of unusual or high-risk exposures. E&S insurers are exempt from many standard market requirements, including form and rate regulation.

•Investments, which represented 10% (including net realized and unrealized gains and losses) of "Total revenues," invests the (i) premiums our Insurance Subsidiaries collect and (ii) amounts generated through our capital management strategies, including debt and equity securities issuance.

We derive nearly all our income/loss in three ways:

•Underwriting income/loss from our insurance operations. We use DPW, gross premiums, NPW, and net premiums earned ("NPE") to evaluate underwriting income/loss. DPW are the amounts billed to policyholders for insurance coverage and services. Gross premiums are DPW plus premiums assumed from other insurers and mandatory pools and associations. NPW are calculated by subtracting premiums ceded to reinsurers from gross premiums. NPE is NPW recognized as revenue ratably over a policy’s term. Underwriting income/loss is NPE minus insurance operations-related expenses incurred.

Insurance operations-related expenses fall into three categories on our Consolidated Statements of Income: (i) "Loss and loss expense incurred," which includes losses associated with claims and loss expenses for adjusting claims incurred during a policy's term, net of losses and loss expenses ceded to reinsurers; (ii) "Amortization of deferred policy acquisition costs," which includes expenses related to the successful acquisition of insurance policies, such as commissions to our distribution partners and premium taxes, recognized ratably over a policy's term; and (iii) "Other insurance expenses," which includes acquisition and other insurance-related expenses not otherwise classified as "Loss and loss expense incurred" or "Amortization of deferred policy acquisition costs" incurred in maintaining policies. These expenses include, but are not limited to, certain labor expenses, depreciation expense, and

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policyholder dividends.

Total underwriting expenses are the sum of "Amortization of deferred policy acquisition costs" and "Other insurance expenses", offset by "Other income" on our Consolidated Statements of Income. Other income primarily consists of installment fees charged to customers who pay their premiums in installments.

•Net investment income earned from our investment segment. We generate income from investing insurance premiums and amounts generated through our capital management strategies. Net investment income consists primarily of (i) interest earned on fixed income investments and commercial mortgage loans, (ii) dividends earned on equity securities, and (iii) income generated from our alternative investments portfolio, partially offset by (iv) investment expenses.

•Net realized and unrealized gains and losses on investment securities from our investments segment. Net realized and unrealized gains and losses from our investment portfolio result from (i) security disposals through sales, calls, and redemptions, (ii) losses on securities that we intend to sell, (iii) credit loss expense or benefit, and (iv) net unrealized gains and losses on equity securities.

"Net income (or loss) available to common stockholders" on our Consolidated Statements of Income also includes (i) corporate expenses, including long-term employee incentive compensation and other general corporate expenses, (ii) interest on our debt obligations, (iii) federal income taxes, and (iv) dividends to preferred stockholders.

To measure financial performance, we use (i) net income (or loss) available to common stockholders and (ii) an operating income calculation that does not conform to U.S. generally accepted accounting principles ("non-GAAP"). Non-GAAP operating income differs from net income available to common stockholders by excluding after-tax net realized and unrealized gains and losses on investments. This non-GAAP measure is used as an important financial measure by us, analysts, and investors because the timing of realized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized investment gains and losses could distort the analysis of trends.

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Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

From 10-Q filed 2026-07-24 (period ending 2026-06-30).

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

The terms “Company,” “we,” “us,” and “our” refer to Selective Insurance Group, Inc. (the “Parent”) and its subsidiaries, except as expressly indicated or the context otherwise requires. Certain statements in this Quarterly Report on Form 10‑Q, including information incorporated by reference, are “forward‑looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The PSLRA provides a safe harbor for forward‑looking statements under the Securities Act of 1933 and the Securities Exchange Act of 1934.

Forward‑looking statements include our expectations, intentions, beliefs, projections, estimates, or forecasts regarding future events or financial performance. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, activity levels, or performance to differ materially from those expressed or implied in the forward‑looking statements. In some cases, forward‑looking statements may be identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “believe,” “intend,” “estimate,” “project,” “predict,” “potential,” “pro forma,” “seek,” “target,” “continue,” or similar terms.

Forward‑looking statements are predictions only, and we cannot guarantee that the expectations expressed in such statements will prove correct. We undertake no obligation to publicly update or revise any forward‑looking statements, except as required by law.

We discuss factors that could cause actual results to differ materially from those expressed in forward‑looking statements in Item 1A, “Risk Factors,” of this Form 10‑Q. These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors may emerge at any time. We cannot predict these new factors, their potential impact on our business, or the extent to which any factor – or combination of factors – may cause actual results to differ materially from those expressed in forward‑looking statements. In light of these risks, uncertainties, and assumptions, the forward‑looking events discussed in this report may not occur.

Introduction

We classify our business into four reportable segments:

•Standard Commercial Lines;

•Standard Personal Lines;

•Excess and Surplus Lines ("E&S Lines"); and

•Investments.

For additional information about these segments, refer to Note 9. "Segment Information" in Item 1. "Financial Statements." of this Form 10-Q and Note 12. "Segment Information" in Item 8. "Financial Statements and Supplementary Data." of our Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Annual Report").

We write our Standard Commercial and Standard Personal Lines products and services through nine of our insurance subsidiaries, some of which participate in the federal government's National Flood Insurance Program's ("NFIP") Write Your Own Program. We write our E&S products through another subsidiary, Mesa Underwriters Specialty Insurance Company, a nationally authorized non-admitted carrier for customers who generally cannot obtain coverage in the standard marketplace. Collectively, we refer to our ten insurance subsidiaries as the "Insurance Subsidiaries."

The following is Management’s Discussion and Analysis ("MD&A") of our financial condition and consolidated results of operations, including an evaluation of the amounts and certainty of cash flows from operations and outside sources, trends, and uncertainties that may have a material impact in future periods. Investors should read the MD&A in conjunction with Item 1. "Financial Statements." of this Form 10-Q and the consolidated financial statements in our 2025 Annual Report filed with the United States ("U.S.") Securities and Exchange Commission.

In the MD&A, we discuss and analyze the following:

•Critical Accounting Policies and Estimates;

•Financial Highlights of Results for the second quarters ended June 30, 2026 ("Second Quarter 2026") and June 30, 2025 ("Second Quarter 2025"); and the six-month periods ended June 30, 2026 ("Six Months 2026") and June 30, 2025 ("Six Months 2025")

•Results of Operations and Related Information by Segment;

•Federal Income Taxes;

•Liquidity and Capital Resources; and

•Ratings.

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Critical Accounting Policies and Estimates

Our unaudited interim consolidated financial statements include amounts for which we have made informed estimates and judgments for transactions not yet completed. These estimates and judgments affect the reported amounts in our consolidated financial statements. Our 2025 Annual Report outlines the estimates and judgments most critical to the preparation of the consolidated financial statements: (i) reserve for loss and loss expense; (ii) investment valuation and the allowance for credit losses on available-for-sale ("AFS") fixed income securities; and (iii) reinsurance. These estimates and judgments require our use of assumptions about highly uncertain matters that could change as facts and circumstances develop. Different estimates or judgments could result in materially different reported amounts. For additional information regarding our critical accounting policies and estimates, refer to pages 38 through 45 of our 2025 Annual Report.

Financial Highlights of Results for Second Quarter and Six Months 2026 and Second Quarter and Six Months 20251

	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ and shares in thousands, except per share amounts)	2026			2025			2026			2025
Financial Data:
Revenues	$	1,387,035		1,326,745	5	%	$	2,745,960		2,611,931	5	%
After-tax net investment income	119,206			101,421	18		232,271			197,042	18
After-tax underwriting income (loss)	19,267			(1,914)	(1,107)		36,051			34,139	6
Net income (loss) before federal income tax	162,845			108,905	50		287,047			247,791	16
Net income (loss)	129,385			85,943	51		227,061			195,839	16
Net income (loss) available to common stockholders	127,085			83,643	52		222,461			191,239	16
Key Metrics:
Combined ratio	98.0		%	100.2	(2.2)	pts	98.1		%	98.2	(0.1)	pts
Invested assets per dollar of common stockholders' equity	$	3.34		3.33	—	%	$	3.34		3.33	—	%
Annualized after-tax yield on investment portfolio	4.2		%	3.9	0.3	pts	4.1		%	3.9	0.2	pts
Return on common equity ("ROE")	14.8			10.7	4.1		13.0			12.5	0.5
Net premiums written ("NPW") to statutory surplus	$	1.30		1.45	(10)	%	$	1.30		1.45	(10)	%
Per Common Share Amounts:
Diluted net income (loss) per share	$	2.11		1.36	55	%	$	3.69		3.12	18	%
Book value per share	58.13			52.09	12		58.13			52.09	12
Dividends declared per share to common stockholders	0.43			0.38	13		0.86			0.76	13
Non-GAAP Information:
Non-GAAP operating income (loss)2	$	117,629		80,348	46	%	$	219,562		187,762	17	%
Non-GAAP operating income (loss) per diluted common share2	1.95			1.31	49		3.64			3.06	19
Non-GAAP operating ROE2	13.7		%	10.3	3.4	pts	12.8		%	12.3	0.5	pts
Adjusted book value per common share2	$	60.56		54.48	11	%	$	60.56		54.48	11	%

1Refer to the Glossary of Terms attached to our 2025 Annual Report as Exhibit 99.1 for definitions of terms used in this Form 10-Q.

2Non-GAAP operating income (loss), non-GAAP operating income (loss) per diluted common share, and non-GAAP operating ROE are comparable to net income (loss) available to common stockholders, net income (loss) available to common stockholders per diluted common share, and ROE, respectively, but exclude after-tax net realized and unrealized gains and losses on investments included in net income (loss). Adjusted book value per common share is comparable to book value per common share, but excludes total after-tax unrealized gains and losses on investments included in accumulated other comprehensive income (loss). These non-GAAP measures are important financial measures used by us, analysts, and investors because the timing of realized and unrealized investment gains and losses on securities in any given period is largely discretionary. In addition, net realized and unrealized investment gains and losses on investments could distort the analysis of trends.

The tables below provide reconciliations of our GAAP to non-GAAP measures:

Reconciliation of net income (loss) available to common stockholders to non-GAAP operating income (loss)	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2026		2025	2026		2025
Net income (loss) available to common stockholders	$	127,085	83,643	$	222,461	191,239
Net realized and unrealized investment (gains) losses included in net income (loss), before tax	(11,971)		(4,172)	(3,670)		(4,401)
Tax on reconciling items	2,515		877	771		924
Non-GAAP operating income (loss)	$	117,629	80,348	$	219,562	187,762

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Reconciliation of net income (loss) available to common stockholders per diluted common share to non-GAAP operating income (loss) per diluted common share	Quarter ended June 30,			Six Months ended June 30,
	2026		2025	2026		2025
Net income (loss) available to common stockholders per diluted common share	$	2.11	1.36	$	3.69	3.12
Net realized and unrealized investment (gains) losses included in net income (loss), before tax	(0.20)		(0.07)	(0.06)		(0.07)
Tax on reconciling items	0.04		0.02	0.01		0.01
Non-GAAP operating income (loss) per diluted common share	$	1.95	1.31	$	3.64	3.06

Reconciliation of ROE to non-GAAP operating ROE	Quarter ended June 30,			Six Months ended June 30,
	2026		2025	2026		2025
ROE	14.8	%	10.7	13.0	%	12.5
Net realized and unrealized investment (gains) losses included in net income (loss), before tax	(1.4)		(0.5)	(0.2)		(0.3)
Tax on reconciling items	0.3		0.1	—		0.1
Non-GAAP operating ROE	13.7	%	10.3	12.8	%	12.3

Reconciliation of book value per common share to adjusted book value per common share	Quarter ended June 30,			Six Months ended June 30,
	2026		2025	2026		2025
Book value per common share	$	58.13	52.09	$	58.13	52.09
Total unrealized investment (gains) losses included in accumulated other comprehensive income (loss), before tax	3.07		3.03	3.07		3.03
Tax on reconciling items	(0.64)		(0.64)	(0.64)		(0.64)
Adjusted book value per common share	$	60.56	54.48	$	60.56	54.48

The following table depicts the components of ROE and non-GAAP operating ROE:

ROE and non-GAAP operating ROE Components	Quarter ended June 30,			Change Points	Six Months ended June 30,			Change Points
	2026		2025		2026		2025
Standard Commercial Lines Segment	0.7	%	(2.6)	3.3	0.3	%	0.4	(0.1)
Standard Personal Lines Segment	0.4		0.9	(0.5)	0.5		0.5	—
E&S Lines Segment	1.2		1.5	(0.3)	1.3		1.3	—
Total insurance operations	2.3		(0.2)	2.5	2.1		2.2	(0.1)
Net investment income earned	13.9		13.0	0.9	13.6		12.9	0.7
Net realized and unrealized investment gains (losses)	1.1		0.4	0.7	0.2		0.2	—
Total investments segment	15.0		13.4	1.6	13.8		13.1	0.7
Other	(2.5)		(2.5)	—	(2.9)		(2.8)	(0.1)
ROE	14.8		10.7	4.1	13.0		12.5	0.5
Net realized and unrealized investment (gains) losses, after tax	(1.1)		(0.4)	(0.7)	(0.2)		(0.2)	—
Non-GAAP operating ROE	13.7		10.3	3.4

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Held by

holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Next expected filings

~2026-10-23 10-Q expected by 2026-11-07 (in 89 days)
~2027-02-08 10-K expected by 2027-02-25 (in 197 days)
~2027-04-23 10-Q expected by 2027-05-08 (in 271 days)
~2027-07-23 10-Q expected by 2027-08-07 (in 362 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-07-24 10-Q Quarterly Report
2026-07-23 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
2026-05-14 8-K Officer/Director Change
2026-04-24 10-Q Quarterly Report
2026-04-22 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
2026-02-09 10-K Annual Report
2026-01-29 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
2025-11-03 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
2025-10-24 10-Q Quarterly Report
2025-10-22 8-K Earnings Release; Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
2025-07-30 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
2025-07-25 10-Q Quarterly Report
2025-07-23 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
2025-07-01 8-K Material Agreement Entered; Material Agreement Terminated; Material Financial Obligation; Financial Statements and Exhibits
2025-05-13 8-K Officer/Director Change; Financial Statements and Exhibits

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