SELECTIVE ANNUAL REPORT 2021
The year 2021 marks our eighth consecutive year of
double-digit non-GAAP operating return on common equity.
This truly outstanding achievement places us in a very small group
of industry peers that have generated similar strong and consistent
financial results. Our Net Promoter Score, which is our customers’
likelihood to recommend Selective, has consistently increased over the
past four years, underscoring our steadfast commitment to raising the high
bar on delivering a superior customer service experience. Our success comes
from a highly engaged and aligned team of talented employees intensely focused on
executing our initiatives to achieve these results in our unique operating model.
OUR BUSINESS
OUR YEAR
IN REVIEW
Selective Insurance Group, Inc. (NASDAQ: SIGI) is a
New Jersey holding company for ten property and casualty
insurance companies with $10.5 billion in assets as of
December 31, 2021. A customer-centric company, we are
dedicated to serving our customers’ unique insurance
needs through customized risk management solutions
and value-added services.
Non-GAAP (U.S. Generally Accepted Accounting Principles) operating income, non-GAAP operating income per diluted common share, and non-GAAP operating return on common equity
are non-GAAP measures. Refer to the section entitled “Financial Highlights of Results for Years Ended December 31, 2021, 2020, and 2019” in Item 7 “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for a reconciliation of the non-GAAP measures to the
equivalent GAAP measures.
*
22
Awards that recognize our
unique products, services,
and workplace
92.8%
Combined
ratio
15%
Growth in net
premiums
written
57
Net promoter
score
14.3%
Non-GAAP operating
return on common
equity*
$263M
Net investment
income after-tax
A+
AM Best
financial strength
rating
SELECTIVE 2021 ANNUAL REPORT 1
$5,000
$0
$10,000
$15,000
$20,000
$25,000
2016 2017 2018 2019 2020 2021
SIGI
S&P 500
S&P Prop/Cas
2021 FINANCIAL HIGHLIGHTS
($ in millions, except per share data) 2021 2020
% or Point Change
Better (Worse)
Insurance Operations
Net premiums written $3,189.7 $2,773.1 15%
Combined ratio 92.8% 94.9% 2.1 pt
Underwriting income after-tax $172.7 $107.7 60%
Return on common equity from insurance operations after-tax 6.5% 4.6% 1.9 pt
Investments
Net investment income after-tax
$263.0 $184.6 42%
Net realized and unrealized investment gains (losses) after-tax
$13.9 ($3.3) NM^
Total invested assets
$8,027.0 $7,505.6 7%
Invested assets per dollar of common stockholders’ equity
$2.88 $2.96 (3)%
Annual after-tax yield on investment portfolio
3.4% 2.6% 0.8 pt
Return on common equity from net investment income after-tax
9.9% 7.8% 2.1 pt
Summary Data
Total revenues $3,379.2 $2,922.3 16%
Net income available to common stockholders $394.5 $246.4 60%
Return on common equity
14.8% 10.4% 4.4 pt
Non-GAAP operating income*
$380.6 $249.7 52%
Non-GAAP operating return on common equity*
14.3% 10.5% 3.8 pt
Operating cash fl ow as % of net premiums written
24.2% 20.0% 4.2 pt
Total assets
$10,461.4 $9,687.9 8%
Stockholders’ equity
$2,982.9 $2,738.9 9%
Common stockholders’ equity
$2,782.9 $2,538.9 10%
Per Common Share Data
Diluted net income available to common stockholders $6.50 $4.09 59%
Diluted non-GAAP operating income* $6.27 $4.15 51%
Dividends to common stockholders $1.03 $0.94 10%
Book value $46.24 $42.38 9%
Growth of a $10,000
investment
(year-end 2016-2021)
AVERAGE ANNUAL RETURN
Non-GAAP (U.S. Generally Accepted Accounting Principles) operating income, non-GAAP operating income per diluted common share, and non-GAAP operating return on common equity are
non-GAAP measures. Refer to the section entitled “Financial Highlights of Results for Years Ended December 31, 2021, 2020, and 2019” in Item 7 “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fi scal year ended December 31, 2021 for a reconciliation of the non-GAAP measures to the equivalent
GAAP measures.
Not meaningful
*
^
2
The year 2021 was notable for many events and developments
globally, nationally, and at Selective. The COVID-19 pandemic
continued to impact everyone, and
natural catastrophes aected many.
Our employees continued to exceed the
high bar in meeting our policyholders’,
claimants’, and distribution partners’
varied needs. Their eorts are the
foundation for our strong operating
results and excellent market reputation.
Their commitment and success are why
we were again designated in 2021 as a
Great Place to Work™ organization.
Financial results and other key highlights
from 2021 include:
• New business growth of $648
million, driven in part by the
utilization of our proprietary
MarketMax
®
platform, which helps
identify prospective customers.
• Net income available to common
stockholders of $394 million ($6.50 per
diluted common share) and non-GAAP
operating income of $381 million ($6.27
per diluted common share).
• Net premiums written (NPW) of
$3.2 billion were up 15% from the prior year. Growth drivers
included renewal pure price increases, exposure growth, new
business, and stable retention.
• Our combined ratio was an impressive 92.8%, despite higher
than expected catastrophe (CAT) losses. This result is a tribute
to our decade-long success in continually improving our
business mix and achieving renewal pure price increases in line
with or above expected loss trend.
• After-tax net investment income of $263 million was up
42% over the prior year due to ongoing exceptionally strong
alternative investment returns.
2021 ANNUAL REPORT
SHAREHOLDER LETTER
I am pleased to report that Selective had another exceptional year of financial and operating performance. 2021 marked
our eighth consecutive year of double-digit non-GAAP operating return on common equity (ROE). Few competitors have
matched this strong performance consistency; it is one reason we believe AM Best Company upgraded our financial strength
rating to “A+” (Superior). While incredibly proud of our consistent superior operating performance and excellent financial
strength, we are enthusiastic and focused on the opportunities in front of us. Our unique franchise value, dedicated employees,
sophisticated tools and technologies, and deep relationships with top-notch distribution partners position us well for future
growth and profitability.
John J. Marchioni
President and Chief Executive Ocer
• Our non-GAAP operating ROE was 14.3%, well above our
full-year operating ROE target of 11%. Our underwriting
operations and investments were both
strong contributors to the overall ROE.
• We developed and implemented
enhanced automation platforms for
small commercial and excess and surplus
(E&S) business that should drive further
profitable growth opportunities.
• We repositioned our personal lines business
to focus on the mass auent customer
base where we believe we can be more
competitive with the strong coverage and
servicing capabilities that we oer.
• Adoption of our digital services grew,
including our customer self-service
platform, our award-winning MySelective
mobile app, and proactive messaging.
At year-end 2021, our balance sheet
remained extremely strong with a record
$3.0 billion of stockholders’ equity and a
conservative 14.5% debt-to-capitalization
ratio. In 2021, we increased our quarterly
shareholder dividend by 12%, to $0.28 per
share, and our Board authorized a $100
million share repurchase program in 2020,
which has $96.6 million of remaining capacity as of December 31,
2021. The following is a summary of our results by segment.
•
Standard Commercial Lines: The segment accounts
for 81% of total NPW, and had another excellent year. NPW
was up 16% compared with the prior year, and the business
generated a solid 91.9% combined ratio. Results benefited from
continued strong profitability in larger lines, such as general
liability and workers compensation, and improvement in the
commercial auto line.
DELIVERING EXCEPTIONAL OPERATING PERFORMANCE:
SELECTIVE 2021 ANNUAL REPORT 3
• Excess & Surplus Lines: The segment, which accounts
for 10% of total NPW, generated 23% premium growth and
a 94.3% combined ratio for the year. During the year, we
entered into a renewal rights agreement with Argo Group US,
Inc. for its small commercial-oriented E&S book, which will be
re-underwritten based on our appetite, terms, and pricing.
•
Standard Personal Lines: The segment accounts for 9%
of total NPW, and generated a 98.6% combined ratio. NPW
was $292 million, down 1% compared with the prior year,
driven by increased competition. In 2021, we repositioned the
book towards a mass auent customer base, and subsequently,
our homeowners’ product changes went into eect and we
launched changes to our auto and umbrella oerings. The flood
business within our personal lines segment is written on behalf
of the government-backed National Flood Insurance Program,
and generated attractive fee income that helped the results of
this segment.
STRONG SHARE PRICE PERFORMANCE
Over recent years, our strong and consistent financial results have
been rewarded by the equity markets, leading to solid long-term
share price performance. Selective’s total 2021 shareholder
return of 24.0% trailed the S&P 500 Index, which was up 28.7%,
but was significantly better than the performance for the S&P
Property and Casualty Insurance Index. Over the past ten-year
period, Selective’s shareholders experienced total returns of
18.6%, exceeding the 16.6% average annual performance of the
S&P 500 Index.
EXECUTION ON KEY STRATEGIC
PRIORITIES
Our strong 2021 operating and financial performance is the result
of superior execution of our strategic objectives. Looking forward,
we remain focused on achieving these, with the greatest emphasis
on profitable growth and generating solid ROEs relative to our
weighted average cost of capital. Major strategic initiatives that will
contribute to our ongoing success include:
•
Underwriting Discipline and Price Adequacy: For
over a decade, we have consistently achieved renewal pure
price increases at or above expected loss trend. This track
record gives us the confidence that we can eectively navigate
all market cycles. We understand and price risks granularly,
producing an overall attractively priced book of business that
permits us to grow in identified segments. This consistent
approach has allowed us to eectively obtain the appropriate
price while maintaining high business retention rates. We will
continue to manage our growth and profitability account-by-
account, facilitating more focused business mix improvements.
•
Expanding Market Share: In our commercial lines
business, we remain focused on four key initiatives: (i)
increasing agency appointments to represent at least 25%
market share in our footprint states; (ii) increasing Selective’s
share of our agents premium to 12%; (iii) maximizing new
business growth in the small business market through utilization
of our enhanced small business platform; and (iv) executing on
our geographic-expansion plan. During 2021 we made progress
on each of these fronts:
- We appointed more than 100 new agencies, consistent with
recent years. This brings our total distribution partner
count to 1,430 and total oce locations to about 2,500.
We expect this appointment pace to remain steady.
BOOK VALUE PER COMMON SHARE AND
COMMON STOCKHOLDERS’ EQUITY
GROWTH
'20'19
'21
'18'17'16'15'14'13'12'11
$50
.00
GAAP Common
Stockholders' Equity
Book Value Per
Common Share
($ in millions)
$40.00
$30.00
$20
.00
$10.00
$0.00 $0.00
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$46.24
$19.45
HISTORICAL TOTAL RETURN: SIGI VS.
BENCHMARKS DECEMBER 31, 2021
15.6%
1 Year 5 Years 10 Years
28.7%
24.0%
15.3%
10.7%
18.5%
18.6%
13.9%
16.6%
SIGI S&P Prop/Cas S&P 500
35%
30%
25%
20%
15%
10%
5%
0%
The 1, 5 and 10 year P/E multiples, located in the bars, are historical
averages over that time period.
4
- We continue to generate organic growth with our existing
distribution partners. Our MarketMax
®
tool provides our
distribution partners with insights into their overall portfolio,
identifying high-quality target accounts to grow their
business with us.
- Finally, our commercial lines geographic-expansion plans
remain on track. In 2022, we plan to open the states
of Alabama, Idaho, and Vermont (subject to regulatory
approvals), with additional
growth planned for
subsequent years.
•
Investing in
Sophisticated Tools
and Technologies for
Growth and Eciency:
We continue to develop
and implement new tools
and technologies to create
operating eciencies for our
distribution partners and us,
strengthening our market
position. We expanded the
use of MarketMax
®
, our
agency-facing platform that
helps identify new business
opportunities, and updated
our technology platforms
for small commercial and
E&S business.
•
Becoming an Omni-
Channel Customer
Experience Leader:
One of our major strategic
initiatives, delivering a
superior omni-channel
customer experience,
dierentiates our
value proposition for
policyholders, claimants,
and distribution partners.
During the pandemic,
our Safety Management
and Claims organizations
quickly adapted to deliver
exceptional customer
service virtually. Our ongoing
investments to build out our digital customer oerings allows
customers to engage us 24x7 in their chosen manner. Adoptions
of our self-service platform and award-winning MySelective
mobile app continue to accelerate. These platforms and our
continued emphasis on expanding value-added services
should generate future retention benefits.
•
Developing Talent with a Greater Diversity, Equity
& Inclusion (DE&I) Focus: We are committed to
increasing employee diversity at all levels in our organization.
While women and racial and ethnic minorities constitute
a meaningful part of our overall workforce, we strive to
increase representation in senior organizational levels. We
continue to make substantial progress on our DE&I initiatives,
including establishing and supporting several anity and
employee resource groups, which provide employees with
opportunities to increase cultural
awareness, network, and enhance
their professional development.
We expanded our relationships
with historically Black colleges and
universities (HBCUs), including a
Selective on-campus recruiting day
and sponsorship of an HBCU team
for the 2021 and 2022 National
African American Insurance
Association (NAAIA) Talent
Development Competition. We
implemented DE&I performance
objectives and goals for all leaders
and incorporated a specific DE&I
objective into our 2022 Annual Cash
Incentive Program strategic measures.
•
Achieving our ROE Targets:
Each year, we establish a non-GAAP
operating ROE target well above
our estimated weighted average
cost of capital. This high bar
aligns our incentive compensation
structure with shareholder returns,
challenging us to be our best. For
2022, our non-GAAP operating
ROE target is 11%, approximately
350 basis points over our current
estimated weighted average cost
of capital.
MAKING AN
ENVIRONMENTAL,
SOCIAL, AND
GOVERNANCE ESG
DIFFERENCE
Selective has always recognized the
need to create value for all four of its
key constituents: our employees; our
distribution partners; our customers and the communities in which
they live and work; and our shareholders. By delivering exceptional
value to the first three, our shareholders are consistently rewarded.
Our 95+ year track record of being a socially responsible company
speaks for itself. Regardless, there is always more we can do.
Selective continued to drive ESG initiatives, overseen by our
management Sustainability Committee, and published our second
90%
85%
101.0%
107.2%
90.1%
92.8%
95%
100%
105%
110%
'18 '19 '20 '21'17'16'15'14'13'12'11
Underlying Combined Ratio*
GAAP Combined Ratio
COMBINED RATIOS
The achievement of our targeted strategic initiatives has contributed
to strong GAAP and underlying combined ratios.
*Underlying combined ratio excludes catastrophe losses and prior
year casualty reserve development.
NET PREMIUMS WRITTEN
$0B
$3.25B
'21'18'15'12'09'06'03'00
$3.19B
$.83B
SELECTIVE 2021 ANNUAL REPORT 5
ESG report, Driving Sustainable Impact (on our website’s Investors
page) in 2021. We also started expanding our corporate headquarters
solar facility, which produces power sold to others, incorporated ESG
considerations into our investment manager due diligence process,
and invested in ESG-dedicated funds. We provide customers and
distribution partners with services that help mitigate risks, o ering
a wide range of tools and technologies. Selective continues to make
employee development a core strategic priority, supporting the
communities in which we live and operate in through the Selective
Insurance Group Foundation, and we remain committed to advancing
diversity, equity, and inclusion at all levels in our organization.
CONCLUSION
While our results in 2021 were outstanding, the achievement I am
most proud of is the unwavering dedication of our employees in serving
our customers and distribution partners, and helping them navigate
through the pandemic-related challenges and the various catastrophic
events they’ve experienced. The e orts of our employees over the
past two years have further strengthened our reputation in the market
with customers and distribution partners. The excellent performance
we delivered in 2021 is the direct result of our ability to successfully
execute the fundamentals of our business: risk selection, pricing, and
claims adjudication.
In 2022, we will remain committed to our prudent and disciplined
approach to generating profi table growth over time, which has been
key to delivering superior operating and fi nancial performance. Our
competitive and market-di erentiating advantages are our unique
fi eld model, enabled by sophisticated tools and technology, the
extraordinary franchise value created with our distribution partners,
and our superior omni-channel customer experience. Our ongoing
success is driven by our outstanding employees, who always execute
with the utmost dedication, especially during these unprecedented
times. Through their work addressing the varied needs of our
policyholders, claimants, and distribution partners, we have built a
sustainable platform that should outperform and lead our industry for
years to come.
In advance of the 2022 Annual Meeting of Stockholders, please join me
in recognizing Gregory E. Murphy, who is not standing for re-election
as a Director. Greg joined Selective in 1980, rising through the ranks
to Chairman & CEO, a position he held for 20 years before becoming
Executive Chairman and then Non-Executive Chairperson. He left
his impression on every aspect of our operations; his leadership and
mentorship are unmatched.
Our 2022 Annual Meeting of Shareholders is being held virtually, which
allows meeting attendance from any location in the world. We hope you
will join us.
NONGAAP OPERATING RETURN
ON COMMON EQUITY*
'14 '15 '16 '17 '18 '19 '20 '21
0%
3%
6%
9%
12%
15%
John J. Marchioni
President and
Chief Executive O cer
Non-GAAP (U.S. Generally Accepted Accounting Principles) operating income, non-
GAAP operating income per diluted common share, and non-GAAP operating return
on common equity are non-GAAP measures. Refer to the section entitled “Financial
Highlights of Results for Years Ended December 31, 2021, 2020, and 2019” in Item 7
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”
in the Company’s Annual Report on Form 10-K for the fi scal year ended December 31,
2021 for a reconciliation of the non-GAAP measures to the equivalent GAAP measures.
*
6
6
OUR FOOTPRINT
We deliver customized risk management
solutions to customers in the states shown
above. In 2022, we will continue our
geographic expansion and plan to make our
unique products and services available to
commercial businesses and public entities in
Vermont, Alabama, and Idaho.
In collaboration with our distribution partners, we oer
standard and specialty insurance to businesses, non-profits,
public entities, and individuals through the following segments:
*According to SNL Financial based on 2020 data.
OUR
BUSINESS
Standard Commercial – 81% of business
We provide commercial insurance to more than 80 types
of businesses that include Contractors; Mercantile and
Service; Community and Public Services; and Manufacturing
and Wholesale. Unique risk management solutions, safety
management expertise, customer-centric claims service, and a
commitment to superior customer service position Selective as
the carrier of choice for business insurance.
Excess & Surplus – 10% of business
Selective oers Excess & Surplus Lines property, general
liability, and inland marine products coverage through wholesale
agents and brokers to customers in targeted industry segments,
including artisan and general contractors; restaurants, bars and
taverns; and vacant properties and habitation.
Standard Personal – 9% of business
Selective oers a number of customizable insurance solutions
for drivers, homeowners, and renters. In addition, Selective is
the 4
th
* largest Write Your Own (WYO) carrier in the National
Flood Insurance Program, providing flood building and contents
coverage to homeowners and businesses across all 50 states.
Excess & Surplus (50 states)
Standard Personal
†
15 states
†
Flood Insurance available in all 50 states
Standard Commercial (27 states and the
District of Columbia)
SELECTIVE 2021 ANNUAL REPORT 7
SELECTIVE 2021 ANNUAL REPORT 7
Our competitive advantages are true dierentiators in the
marketplace and help drive our financial performance.
OUR
COMPETITIVE
ADVANTAGES
Unique field model enabled by sophisticated tools and technology
Selective’s empowered and dynamic field model is key to our agency value proposition and
underwriting quality. It is comprised of underwriting and safety management personnel who
are located in the geographic territories they serve. Our claims operation is organized by
area of specialty with regional expertise, supported by local resources who manage our claims
customer relationships. Our field experts apply a data-driven approach using sophisticated
tools for our underwriting and pricing practices to eectively deliver unique products and
services to our customers and distribution partners.
True franchise value with top-notch distribution partners
Selective works closely with approximately 1,400 retail and 85 wholesale distribution
partners to build strong relationships and deliver exceptional service to our shared
customers. We are committed to our distribution partners’ success and provide them
with the tools, products, services, and resources to prosper and build their market share.
We continue to appoint high-caliber and diverse distribution partners to drive
profitable growth.
Superior customer experience delivered by dedicated employees
Selective’s more than 2,400 employees are the most important element of our success.
Through them — and in collaboration with our distribution partners — we deliver our brand
promise to provide unique insurance solutions. By creating customized risk mitigation
strategies, value-added services, and an exceptional 24x7 omni-channel service experience,
we are able to meet or exceed customers’ expectations.
8
UNIQUELY
SERVING OUR CUSTOMERS
We aspire to be indispensable to our customers and distribution partners by delivering unique insurance
solutions, including value-added services that help make their engagement with Selective more impactful
and relevant. Customers who adopt at least one of our service oerings retain at a rate 1.4 points higher
than those who do not self-service. Below are a few of our complimentary value-added services that
dierentiate Selective in the marketplace and show our customers what it means to Be Uniquely Insured
®
.
Triage Services for Injured Workers
Our workers compensation policyholders
have access to registered nurses 24x7
to advise injured workers on appropriate
treatment options like self-care, urgent care,
or the emergency room.
Loss Prevention and Mitigation
Our safety management specialists visit
our business customers to help them
mitigate risks and keep their businesses
safe. We also provide digital oerings that
include a suite of self-paced modules for
assessing risk in various areas, such as water
intrusion; slip, trip, and fall prevention;
ergonomics; ignitable liquids; and business
resiliency planning, that enable customers
to improve their risk profile.
Protecting Those Most Vulnerable
Our complimentary tools and resources,
oered in partnership with abuse-prevention
risk management consulting company
Praesidium, help business customers
protect or mitigate the abuse or molestation
of vulnerable children and adults. In
addition, we lead the insurance industry
in the number of employees trained and
certified as Praesidium Guardians
TM
,
improving our capabilities and expertise in
organizational risk prevention.
Roadside Peace of Mind
Our customer service team members
remain on the phone with our personal auto
customers who require roadside assistance
in the unfortunate event of an accident to
provide support and peace of mind until
help arrives.
Expedited Claims Handling
Our SWIFTClaim
®
or “Service With
Improved Fast Tracking” process for
non-complex auto and property losses is
conducted via electronic communication
to streamline claim handling and help
customers receive expedited payments.
User Friendly Mobile Connectivity
Our MySelective mobile app allows customers
to view auto ID cards, report a claim, chat
with a live associate, manage billing/payments,
and more. In 2021, our app received a Gold
Stevie
®
award in the Sales and Marketing
Mobile Application-New Version category
and a PropertyCasualty360 Insurance
Innovator award.
We are proud of the 22 awards and
accolades we received in 2021 that recognize
the excellent insurance experience we provide
customers and distribution partners and the best-in-class
workplace we create for employees. For a complete
list of our distinguished honors, please visit
www.Selective.com/about-Selective/awards.
SELECTIVE 2021 ANNUAL REPORT 9
SELECTIVE 2021 ANNUAL REPORT 9
In 2021, Selective won the
Excellence in Customer Service
Award from Business Intelligence
Group in recognition of our tools
to help customers find success.
… THROUGH INNOVATION
Through a year of ongoing pandemic challenges, severe natural catastrophes, supply chain issues, and higher
inflation, we demonstrated our primary purpose and value: making our policyholders and communities safer
and restoring lives and businesses after an insured loss. Our innovative customer-centric solutions enable us to
continuously raise the high bar on delivering a superior customer experience.
Live Chat
Live chat sessions on Selective.com
and the MySelective mobile app help
customers and distribution partners
quickly and conveniently get answers to
address their billing, payment, and
self-service questions. More than
14,000 live chats took place in 2021.
Proactive Communications
To help customers stay informed and
mitigate risks, we proactively distribute
personalized and specific email, push
notifications, and text messages on topics
like billing reminders, vehicle and food
recalls, and weather events. Approximately
75% of our customers receive these timely,
contextual, and valuable messages.
Integrated Voice Response (IVR)
Our IVR platform enables callers into
our Customer Contact Center to quickly
and conveniently self-serve and access
information without the need to speak with
a representative. More than 140,000 calls
were handled through our IVR in 2021.
Claims Handling via Text Message
Launched in 2021, customers can now
engage in two-way text messaging with our
claims adjustors for improved transparency
and communication throughout the claim
experience.
As a customer-
centric organization,
we prioritize customer
research, journey
mapping, and usability
testing to help make the
insurance process as easy
and seamless as we can.
10
At Selective, we don’t just insure uniquely, we employ
uniqueness. Employees are empowered to bring their
true, authentic selves to work every day, and to share
their unique perspectives, experiences, and talents with
one another. We are a stronger and higher performing
team when we embrace our di erences, collaborate
across teams and departments, and foster a diverse,
equitable, and inclusive culture.
Creating a highly engaged team is one of our strategic
imperatives, and a key area of focus. In 2021, we:
To support employees as they navigated the second year of a global pandemic, we also introduced a new Flexible Work Location Policy to
enable employees to work in the o ce 60% of the time and remote 40%; enhanced our Employee Assistance Program with additional
mental health resources; and increased our telemedicine options to include physical therapy, behavioral health, and other specialties.
OUR
UNIQUE TEAM
Deployed and supported employee resource
groups for our working caregivers, Black
employees, LGBTQ+ employees and allies, and
women in Information Technology to provide
those who identify with or support these
communities an opportunity to increase cultural
awareness, network, develop professionally, and
share in fun and engaging activities.
Hosted all-employee virtual town halls and
company meetings to bring our team together,
discuss timely and relevant topics, provide
support and camaraderie, and reinforce
alignment on our strategic business objectives.
Launched our R.I.S.E. (Retain, Include, Support,
Engage) program to provide ethnically diverse
individuals a path to fi rst-level management.
Received multiple honors that recognize
Selective as an employer of choice, including
Great Place to Work
®
recertifi cation, Fortune
Best Workplaces in Financial Services and
Insurance award, Forbes’ America’s
Best-in-State Employers (New Jersey) award,
and DiversityJobs Top Employer award.
Provided employees with enhanced virtual
collaboration tools to facilitate video
calling and conferencing, chat messaging,
and file sharing.
Provided access to over 22,000 skills training
courses and resources, as well as a variety of
instructor-led classes, to help employees’
professional growth and development.
SELECTIVE 2021 ANNUAL REPORT 11
SELECTIVE 2021 ANNUAL REPORT 11
As a property and casualty insurance
company, we understand that climate
change creates greater unpredictability
of weather-related loss frequency and
severity. This poses a long-term risk to
the lives and livelihoods of our customers
and business. Our eorts to help address
climate change and its associated impacts
are centered on prudent oversight and
management of catastrophe risk exposure;
helping our customers through responsive
claims handling, safety management, and
proactive weather alerts; allocating capital
away from specific environmentally hazardous
classes through underwriting and investment
initiatives; and reducing our carbon footprint.
In our 2021 Environmental, Social,
and Governance (ESG) report, we
highlighted the initiatives that help us
drive sustainability. This includes eorts
to understand and attempt to mitigate
climate change risk, provide customers
with empathetic claims services and risk
mitigation solutions, build a highly engaged
team of employees and leaders, make
a positive impact on our communities
and society, and build a culture of strong
governance and transparency. To read our
ESG report, please visit www.Selective.
com/investors/reports-earnings-and-
presentations/reports.
Investing in the communities where we live and work is
core to our business. Starting with our founder, D.L.B.
Smith in 1926 through today, we help make a dierence
through contributions of both time and money.
In 2021, Selective’s charitable arm – The Selective
Insurance Group Foundation – donated more than
$545,000 to non-profit organizations that empower
safe, sustainable, just, and diverse communities.
We donated approximately $70,000 in matching
gifts to match employees’ and distribution
partners’ donations to charities and “Dollars
for Doers” grants to recognize the hours that
employees volunteer.
Approximately 65% of our total giving is directed
to local charities in the communities where we
have a major presence, including Sussex County,
NJ where we are proudly headquartered.
Selective provides all employees a Volunteer Day
to use their time and talent to support and improve
communities, such as building a playhouse for the
Richmond, VA Metropolitan Habitat for Humanity,
serving food and drinks to troops at a USO Center in
Fort Indiantown Gap, PA, and helping families in need
“shop” for holiday gifts at Newton, NJ-based Project Self
Suciency’s Holiday Toy Shop.
Selective provided an in-kind donation of over 230
computers and projectors through the Kids In Need
Foundation and The Teacher’s Desk to help under-
resourced students in their online learning.
MAKING A
DIFFERENCE
12
MANAGEMENT TEAM
Shadi K. Albert
Executive Vice President
Insurance Strategy and
Business Development
John J. Marchioni
President and
Chief Executive O cer
Lucinda (Cyndi) Bennett
Executive Vice President
Chief Human Resources O cer
John P. Bresney
Executive Vice President
Chief Information O cer
Joseph O. Eppers
Executive Vice President
Chief Investment O cer
Gordon J. Gaudet
Executive Vice President
Chief Innovation O cer
Brenda M. Hall
Executive Vice President
Commercial Lines
Chief Operating O cer
Je rey F. Kamrowski
Executive Vice President
MUSIC
Vincent M. Senia
Executive Vice President
Chief Actuary
Mark A. Wilcox
Executive Vice President
Chief Financial O cer
Michael H. Lanza
Executive Vice President
General Counsel and
Chief Compliance O cer
Paul Kush
Executive Vice President
Chief Claims O cer
SELECTIVE 2021 ANNUAL REPORT
DIRECTORS
Gregory E. Murphy 1997
Non-Executive Chairperson of the Board
Selective Insurance Group, Inc.
Ainar D. Aijala, Jr. 2020
Retired, former Senior Advisor,
Deloitte & Touche LLP
Lisa Rojas Bacus 2020
Retired, former Executive Vice President and
Global Chief Marketing Ocer, Cigna Corporation
John C. Burville, Ph.D, FIA, MAAA 2006
Retired, former Insurance Consultant
to the Bermuda Government
Terrence W. Cavanaugh 2018
Founding Partner, Accretive Consulting LLC, and
former President and Chief Executive Ocer,
Erie Indemnity Company
Wole C. Coaxum 2020
Chief Executive Ocer,
Mobility Capital Finance (MoCaFi)
Robert Kelly Doherty 2015
Managing Partner,
Caymen Advisors and Caymen Partners
John J. Marchioni 2019
President and Chief Executive Ocer,
Selective Insurance Group, Inc.
Thomas A. McCarthy 2018
Retired, former Executive Vice President and
Chief Financial Ocer, Cigna Corporation
Stephen C. Mills 2020
Retired, former President and General Manager,
New York Knicks
H. Elizabeth Mitchell 2018
Retired, former President and Chief Executive Ocer,
Renaissance Reinsurance U.S., Inc.
Michael J. Morrissey, CFA 2008
Special Advisor and former President and Chief Executive Ocer,
International Insurance Society, Inc.
Cynthia (Cie) S. Nicholson 2009
Managing Member, Band of Sisters, LLC
William M. Rue 1977
Chairman, Chas. E. Rue & Son, Inc.,
t/a Rue Insurance
John S. Scheid, CPA 2014
Owner, Scheid Investment Group, LLC, and
former Senior Partner, PricewaterhouseCoopers LLP
J. Brian Thebault 1996
Lead Independent Director, Selective Insurance Group, Inc.
Partner, Thebault Associates
Philip H. Urban 2014
Retired, former President and Chief Executive Ocer,
Grange Insurance
OFFICERS
President and
Chief Executive Ocer
John J. Marchioni
1,2
Executive Vice Presidents
Shadi K. Albert
2
Insurance Strategy and
Business Development
Lucinda (Cyndi) Bennett
2
Chief Human Resources Ocer
John P. Bresney
2
Chief Information Ocer
Joseph O. Eppers
1,2
Chief Investment Ocer
Gordon J. Gaudet
2
Chief Innovation Ocer
Brenda M. Hall
2
Commercial Lines
Chief Operating Ocer
Jerey F. Kamrowski
2
MUSIC
Paul Kush
2
Chief Claims Ocer
Michael H. Lanza
1,2
General Counsel and
Chief Compliance Ocer
Vincent M. Senia
2
Chief Actuary
Mark A. Wilcox
1,2
Chief Financial Ocer
Senior Vice Presidents
Charles C. Adams
2
Regional Manager
Mid-Atlantic Region
Allen H. Anderson
2
Chief Underwriting Ocer
Personal Lines
Jerey F. Beck
2
Government and Regulatory Aairs
Teresa M. Caro
2
Regional Manager
New Jersey Region
Sarita G. Chakravarthi
1,2
Tax and Assistant Treasurer
Christopher G. Cunni
1,2
Chief Risk Ocer
Giunero Floro
2
Chief Marketing Ocer
Kevin P. Forrey
2
Enterprise Delivery Services
Anthony D. Harnett
1,2
Chief Accounting Ocer
Todd Hoivik
2
Commercial Lines Pricing
and Research
Martin Hollander
1,2
Chief Audit Executive
Robert J. McKenna, Jr.
2
Enterprise Strategy and Execution
Ryan T. Miller
2
Regional Manager
Southern Region
Maria Orecchio
2
Deputy General Counsel
Rohan Pai
1,2
Investor Relations and Treasurer
Thomas S. Purnell
2
Regional Manager
Northeast Region
Erik A. Reidenbach
2
Regional Manager
Heartland Region
Nathan C. Rugge
2
Actuarial Reserving
Brian C. Sarisky
2
Chief Underwriting Ocer
Commercial Lines
Valerie Sparks
2
Regional Manager
Southwest Region
1
Selective Insurance Group, Inc.
2
Selective Insurance Company of America
Annual Meeting
Tuesday, May 3, 2022 - 9:00 a.m. (ET)
Virtual format via live audiocast at
www.virtualshareholdermeeting.com/SIGI2022
Investor Relations
Rohan Pai
Senior Vice President
Investor Relations and Treasurer
(973) 948.1364
Investor[email protected]
Dividend Reinvestment Plan
Selective Insurance Group, Inc. makes available
to holders of its common stock an automatic
dividend reinvestment and stock purchase plan.
For information contact:
EQ Shareowner Services
P.O. Box 64854
St. Paul, Minnesota 55164
(866) 877.6351
Registrar and Transfer Agent
EQ Shareowner Services
P.O. Box 64854
St. Paul, Minnesota 55164
(866) 877.6351
Auditors
KPMG LLP
345 Park Avenue
New York, New York 10154
Internal Audit Department
Martin Hollander
Senior Vice President
Chief Audit Executive
[email protected]
Executive Oce
40 Wantage Avenue
Branchville, New Jersey 07890
(973) 948.3000
Shareholder Relations
Selective will provide by mail, free of charge, a copy of its
Annual Report on Form 10-K for the year ended December
31, 2021 (not including exhibits and documents incorporated
by reference), the Proxy Statement for the 2022 Annual
Meeting, and the annual report and proxy materials for future
Annual Meetings (once available) at your request. Please direct
all requests to:
Robyn P. Turner
Vice President
Assistant General Counsel and
Corporate Secretary
(973) 948.1766
Shareholder[email protected]
Common Stock Information
Selective Insurance Group, Inc.’s common
stock trades on the Nasdaq Global Select
Market under the symbol: SIGI.
Form 10-K
Selective’s Form 10-K, as filed with the
U.S. Securities and Exchange Commission,
is provided as part of this 2021 Annual Report.
Website
Visit us at www.Selective.com
for information about Selective,
including our latest financial news.
INVESTOR
INFORMATION
40 Wantage Avenue • Branchville, New Jersey 07890
SELECTIVE ANNUAL REPORT 2021