Untitled Document

Fundamentals

Cash Flow

Selective Insurance Group, Inc. & Consolidated Subsidiaries

Unaudited Consolidated Statements of Cash Flows

    Quarter Ended March 31,

($ in thousands)
  2017
2016
Operating Activities:      
Net income $ 50,440 37,032
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 12,882 14,627
Stock-based compensation expense 5,273 4,377
Undistributed (gains) losses of equity method investments (665) 1,066
Loss on disposal of fixed assets 998 --
Net realized losses 1,045 2,704
         
Changes in assets and liabilities:
Increase in reserves for losses and loss expenses, net of reinsurance recoverables 28,903 42,390
Increase in unearned premiums, net of prepaid reinsurance 37,850 42,901
Decrease in net federal income taxes 16,946 5,296
Increase in premiums receivable (26,066) (39,180)
Increase in deferred policy acquisition costs (5,058) (7,789)
(Increase) decrease in interest and dividends due or accrued (218) 528
Decrease in accrued salaries and benefits (36,558) (27,115)
Decrease (increase) in other assets 15,998 (10,128)
Decrease in other liabilities (55,175) (52,902)
Net cash provided by operating activities 46,595 13,807
   
Investing Activities:
Purchase of fixed income securities, available-for-sale (724,880) (264,828)
Purchase of equity securities, available-for-sale (14,083) (7,574)
Purchase of other investments (11,211) (12,723)
Purchase of short-term investments   (1,027,885)   (303,228)
Sale of fixed income securities, available-for-sale 594,805 12,905
Sale of short-term investments 1,010,917 394,915
Redemption and maturities of fixed income securities, held-to-maturity 16,527 37,400
Redemption and maturities of fixed income securities, available-for-sale 116,357 130,641
Sale of equity securities, available-for-sale 5,503 4,285
Distributions from other investments 6,428 7,994
Purchase of property and equipment (4,937) (3,439)
Net cash used in investing activities (32,459) (3,652)
   
Financing Activities:
Dividends to stockholders (8,955) (8,270)
Acquisition of treasury stock (5,572) (3,845)
Net proceeds from stock purchase and compensation plans 1,563 1,478
Proceeds from borrowings 64,000 25,000
Repayments of borrowings   (64,000)   (25,000)
Excess tax benefits from share-based payment arrangements -- 1,361
Repayments of capital lease obligations (1,147) (1,094)
Net cash used in financing activities (14,111) (10,370)
Net increase (decrease) in cash 25 (215)
Cash, beginning of year 458 898
Cash, end of period $ 483 683