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Investment Proposition

Selective Insurance is a super-regional property and casualty insurance company with a long history of superior operating execution and financial strength. Selective employs a High-Tech, High-Touch operating model while deploying appropriate leverage to deliver long-term shareholder value.

Corporate Strategy

High-Tech, High-Touch Field Model

Our unique, high-tech, high-touch field model allows us to effectively deliver products and services to our distribution partners. High-touch refers to the relationship-based field model we have in place with dedicated field underwriters we refer to as Agency Management Specialists (AMS), field claims adjusters or Claims Management Specialists (CMS) and loss control services through Safety Management Specialists (SMS). This high-touch model provides our 1,100 independent agents and customers with consistent and dependable service levels.

The high-tech aspect of our business model is how we provide agency facing, easy-to-use technology to transact business. We also utilize sophisticated underwriting tools that allow us to analyze our business on a very granular level which we believe gives us a significant competitive advantage to grow profitably.

History of Financial Strength

Selective has maintained a financial strength rating of A or better by A.M. Best Rating Services for more than 85 years. This rating demonstrates the financial stability of the organization that is so important to our customers, agents and shareholders.

Selective maintains a $5 billion investment portfolio with a conservative fixed income portfolio average rating of “AA-“. We employ higher than industry average investment leverage as measured by invested assets per dollar of stockholder’s equity which provides the opportunity to generate higher return on equity from investments.

By operating with lower reserve volatility and lower combined ratio volatility, Selective is able to use higher-than-industry average operating leverage with a premium to surplus ratio that typically ranges between 1.4 to 1.6 times. This allows us to generate a higher return on equity than peers with the same level of combined ratio.

Customer Focus

In the last several years, we have focused on enhancing the customer experience by providing our customers with a seamless “omni-channel” experience. We are investing in a number of programs and initiatives to deliver the service that customers want and expect, in the manner most convenient for them. This effort should increase customer loyalty and ultimately improve retention and profitability.


Looking into the future, we believe we are well positioned for profitable growth. We will continue to invest and focus on pricing sophistication, enhancing the customer experience, and increasing our overall market share through increasing our share of wallet with our distribution partners. We believe we have ample opportunity to grow within our 22 state footprint for commercial lines, 13 states for personal lines and all 50 states for excess and surplus lines.

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2015 Financial Highlights

Total Net Premiums Written


GAAP Combined Ratio


Invested Assets


Return on Equity


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Financial Strength Ratings

  • A.M. Best's “A” (Excellent) rating for Selective is based on the group’s solid capitalization, disciplined underwriting focus and growing use of sophisticated predictive analytic modeling tools. The rating also recognizes the strength of Selective’s independent agency relationships, cultivated through a successful field-based operating model and consistently stable loss reserves.
  • Standard & Poor’s “A” rating for Selective is based in part on the group’s strong competitive position in its core Mid-Atlantic regional markets, supported by its strong business risk profile and strong capital and earnings profile.
  • Moody’s Investor Service rates Selective A2, noting the company’s solid regional franchise with established independent agency support, along with its solid risk adjusted capitalization and strong invested asset quality.
  • Fitch Ratings rates Selective “A+”, citing Selective’s improved underwriting results, solid loss reserve position, strong independent agency relationships, and improved diversification.