Untitled Document

Fundamentals

Cash Flow

Selective Insurance Group, Inc. & Consolidated Subsidiaries

Consolidated Statements of Cash Flow

December 31,
($ in thousands)
  Unaudited
2016

2015
2014
Operating Activities:          
Net income $ 158,495 165,861 141,827
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 61,671 59,688 45,346
Sale of renewal rights -- -- (8,000)
Stock-based compensation expense 10,449 8,973 8,702
Undistributed (gains) losses of equity method investments (2,316) 1,889 (153)
Net realized losses (gains) 4,937
(13,171) (26,599)
Net gain on disposal of property and equipment --
-- (104)
           
Changes in assets and liabilities:
Increase in reserves for losses and loss expenses, net of reinsurance recoverables 114,422 59,438 97,449
Increase in unearned premiums, net of prepaid reinsurance 87,716 79,995 32,671
Decrease in net federal income taxes 11,150 25,004 31,323
Increase in premiums receivable (66,447) (56,386) (33,908)
Increase in deferred policy acquisition costs (9,405) (27,551) (12,627)
(Increase) decrease in interest and dividends due or accrued (1,473) 407 (1,536)
(Decrease) increase in accrued salaries and benefits (46,536)
11,392 (7,182)
(Increase) decrease in other assets (30,071) (11,523) 1,186
Increase (decrease) in other liabilities 9,191 77,564 (35,632)
Net cash provided by operating activities 301,783 381,580 232,763
     
Investing Activities:
Purchase of fixed income securities, held-to-maturity (4,235) (3,316) --
Purchase of fixed income securities, available-for-sale (1,982,023) (1,041,916) (843,616)
Purchase of equity securities, available-for-sale (35,490) (195,720) (186,019)
Purchase of other investments   (66,164)   (12,170) (10,617)
Purchase of short-term investments (3,499,380) (1,602,327) (1,410,123)
Sale of fixed income securities, available-for-sale 926,470 61,571 51,002
Sale of short-term investments 3,470,022 1,539,480 1,452,402
Redemption and maturities of fixed income securities, held-to-maturity 102,868 106,621 73,415
Redemption and maturities of fixed income securities, available-for-sale 641,524 567,445 482,816
Sale of equity securities, available-for-sale 119,617 172,561 208,008
Distributions from other investments 26,837 32,457 20,774
Purchase of property and equipment (18,147) (16,229) (15,510)
Sale of renewal rights -- -- 8,000
Net cash used in investing activities (318,101) (391,543) (169,468)
     
Financing Activities:
Dividends to stockholders (33,758) (31,052) (28,428)
Acquisition of treasury stock (4,992) (4,182) (3,563)
Net proceeds from stock purchase and compensation plans 7,811 10,089 7,283
Proceeds from borrowings 165,000 15,000 --
Repayment of borrowings   (115,000)
  -- (13,000)
Excess tax benefits from share-based payment arrangements 1,819 1,736 1,020
Repayment of capital lease obligations (5,002) (4,689) (2,841)
Net cash provided by (used in) financing activities
15,878 (13,098) (39,529)
Net (decrease) increase in cash (440) (23,061) 23,766
Cash, beginning of year 898 23,959 193
Cash, end of year $ 458 898 23,959