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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________________________to_____________________________

Commission File Number: 001-33067

SELECTIVE INSURANCE GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)


New Jersey						22-2168890
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

40 Wantage Avenue, Branchville, New Jersey 07890

(Address of Principal Executive Offices) (Zip Code)

Registrant's telephone number, including area code: (973) 948-3000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol (s)

Name of each exchange on which registered

Common Stock, par value $2 per share

SIGI

The Nasdaq Stock Market LLC

Depositary Shares, each representing a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, without par value

SIGIP

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Emerging growth company

☐

Non-accelerated filer

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 18, 2025, there were 60,850,304 shares of common stock, par value $2.00 per share, outstanding.

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	SELECTIVE INSURANCE GROUP, INC.
	Table of Contents
		Page No.
PART I. FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

	Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024	1

	Unaudited Consolidated Statements of Income for the Quarter and Six Months Ended June 30, 2025 and 2024	2

	Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Quarter and Six Months Ended June 30, 2025 and 2024	3

	Unaudited Consolidated Statements of Stockholders' Equity for the Quarter and Six Months Ended June 30, 2025 and 2024	4

	Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024	5

	Notes to Unaudited Interim Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28

	Forward-Looking Statements	28

	Introduction	29

	Critical Accounting Policies and Estimates	29

	Financial Highlights of Results for Second Quarter and Six Months 2025 and 2024	30

	Results of Operations and Related Information by Segment	33

	Federal Income Taxes	45

	Liquidity and Capital Resources	45

	Ratings	49

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49

Item 4.	Controls and Procedures	49

PART II. OTHER INFORMATION		50

Item 1.	Legal Proceedings	50

Item 1A.	Risk Factors	50

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50

Item 3.	Defaults Upon Senior Securities	50

Item 4.	Mine Safety Disclosures	50

Item 5.	Other Information	51

Item 6.	Exhibits	51

Signatures		52

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PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS.


SELECTIVE INSURANCE GROUP, INC. CONSOLIDATED BALANCE SHEETS	Unaudited
($ in thousands, except share amounts)	June 30, 2025		December 31, 2024
ASSETS
Investments:
Fixed income securities, held-to-maturity – at carrying value (fair value: $24,457 – 2025; $24,735 – 2024)	$	24,552	25,375
Less: allowance for credit losses	—		—
Fixed income securities, held-to-maturity, net of allowance for credit losses	24,552		25,375
Fixed income securities, available-for-sale – at fair value (allowance for credit losses: $28,733 – 2025 and $31,948 – 2024; amortized cost: $9,089,518 – 2025 and $8,476,078 – 2024)	8,876,667		8,127,334
Commercial mortgage loans – at carrying value (fair value: $266,197 – 2025 and $224,842 – 2024)	272,072		233,774
Less: allowance for credit losses	(212)		(66)
Commercial mortgage loans, net of allowance for credit losses	271,860		233,708
Equity securities – at fair value (cost: $311,254 – 2025; $211,486 – 2024)	318,059		213,601
Short-term investments	531,441		509,318
Alternative investments	434,995		440,896
Other investments	95,978		101,065
Total investments (Note 4 and 5)	$	10,553,552	9,651,297
Cash	357		91
Restricted cash	37,878		62,933
Accrued investment income	86,912		76,892
Premiums receivable	1,684,351		1,488,206
Less: allowance for credit losses (Note 6)	(21,800)		(20,400)
Premiums receivable, net of allowance for credit losses	1,662,551		1,467,806
Reinsurance recoverable	883,388		1,063,145
Less: allowance for credit losses (Note 7)	(2,000)		(2,000)
Reinsurance recoverable, net of allowance for credit losses	881,388		1,061,145
Prepaid reinsurance premiums	252,595		235,378
Current federal income tax	13,195		—
Deferred federal income tax	120,676		146,788
Property and equipment – at cost, net of accumulated depreciation and amortization of: $300,448 – 2025; $287,685 – 2024	100,019		93,303
Deferred policy acquisition costs	510,391		479,304
Goodwill	7,849		7,849
Other assets	241,070		231,403
Total assets	$	14,468,433	13,514,189

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Reserve for loss and loss expense (Note 8)	$	6,811,156	6,589,801
Unearned premiums	2,815,743		2,616,268

Long-term debt	902,749		507,938
Current federal income tax	—		19,706

Accrued salaries and benefits	107,718		121,662
Other liabilities	461,688		538,738
Total liabilities	$	11,099,054	10,394,113

Stockholders’ Equity:
Preferred stock of $0 par value per share:	$	200,000	200,000
Authorized shares: 5,000,000; Issued shares: 8,000 with $25,000 liquidation preference per share – 2025 and 2024
Common stock of $2 par value per share:
Authorized shares 360,000,000
Issued: 105,915,961 – 2025; 105,609,364 – 2024	211,832		211,219
Additional paid-in capital	580,432		557,042
Retained earnings	3,284,044		3,139,489
Accumulated other comprehensive income (loss) (Note 11)	(230,642)		(336,845)
Treasury stock – at cost (shares: 45,066,408 – 2025; 44,761,468 – 2024)	(676,287)		(650,829)
Total stockholders’ equity	$	3,369,379	3,120,076
Commitments and contingencies
Total liabilities and stockholders’ equity	$	14,468,433	13,514,189

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

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SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME	Quarter ended June 30,			Six Months ended June 30,
($ in thousands, except per share amounts)	2025		2024	2025		2024
Revenues:
Net premiums earned	$	1,188,057	1,080,231	$	2,346,814	2,131,175
Net investment income earned	127,968		108,642	248,659		216,491





Net realized and unrealized investment gains (losses)	4,172		1,297	4,401		(338)
Other income	6,548		5,835	12,057		13,636
Total revenues	1,326,745		1,196,005	2,611,931		2,360,964

Expenses:
Loss and loss expense incurred	823,898		925,548	1,570,223		1,629,840
Amortization of deferred policy acquisition costs	250,307		226,426	497,741		445,861
Other insurance expenses	122,823		107,773	247,693		223,760
Interest expense	13,256		7,202	22,829		14,383
Corporate expenses	7,556		9,154	25,654		24,652
Total expenses	1,217,840		1,276,103	2,364,140		2,338,496

Income (loss) before federal income tax	108,905		(80,098)	247,791		22,468

Federal income tax expense (benefit):
Current	20,501		(17,622)	54,094		3,791
Deferred	2,461		843	(2,142)		(522)
Total federal income tax expense (benefit)	22,962		(16,779)	51,952		3,269

Net income (loss)	$	85,943	(63,319)	$	195,839	19,199

Preferred stock dividends	2,300		2,300	4,600		4,600

Net income (loss) available to common stockholders	$	83,643	(65,619)	$	191,239	14,599

Earnings per common share:
Net income (loss) available to common stockholders - Basic	$	1.37	(1.08)	$	3.14	0.24

Net income (loss) available to common stockholders - Diluted	$	1.36	(1.08)	$	3.12	0.24

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

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SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Net income (loss)	$	85,943	(63,319)	$	195,839	19,199

Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) arising during period	33,074		(6,594)	87,789		(18,887)
Unrealized gains (losses) on securities with credit loss recognized in earnings	8,707		(2,927)	18,793		(5,401)

Amounts reclassified into net income (loss):

Net realized (gains) losses on disposals and losses on intent-to-sell available-for-sale securities	(343)		33	(559)		(28)
Credit loss (benefit) expense	(701)		975	(1,198)		3,068

Total unrealized gains (losses) on investment securities	40,737		(8,513)	104,825		(21,248)

Defined benefit pension and post-retirement plans:
Amounts reclassified into net income (loss):
Net actuarial loss	689		764	1,378		1,528
Total defined benefit pension and post-retirement plans	689		764	1,378		1,528
Other comprehensive income (loss)	41,426		(7,749)	106,203		(19,720)
Comprehensive income (loss)	$	127,369	(71,068)	$	302,042	(521)

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

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SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	Quarter ended June 30,			Six Months ended June 30,
($ in thousands, except share and per share amounts)	2025		2024	2025		2024
Preferred stock:
Beginning of period	$	200,000	200,000	$	200,000	200,000
Issuance of preferred stock	—		—	—		—
End of period	200,000		200,000	200,000		200,000

Common stock:
Beginning of period	211,673		210,895	211,219		210,447
Dividend reinvestment plan	12		10	24		20
Stock purchase and compensation plans	147		127	589		565
End of period	211,832		211,032	211,832		211,032

Additional paid-in capital:
Beginning of period	571,289		534,327	557,042		522,748
Dividend reinvestment plan	510		484	1,018		972
Stock purchase and compensation plans	8,633		10,452	22,372		21,543
End of period	580,432		545,263	580,432		545,263

Retained earnings:
Beginning of period	3,223,731		3,088,150	3,139,489		3,029,396





Net income (loss)	85,943		(63,319)	195,839		19,199
Dividends to preferred stockholders	(2,300)		(2,300)	(4,600)		(4,600)
Dividends to common stockholders	(23,330)		(21,477)	(46,684)		(42,941)
End of period	3,284,044		3,001,054	3,284,044		3,001,054

Accumulated other comprehensive income (loss):
Beginning of period	(272,068)		(384,972)	(336,845)		(373,001)



Other comprehensive income (loss)	41,426		(7,749)	106,203		(19,720)
End of period	(230,642)		(392,721)	(230,642)		(392,721)

Treasury stock:
Beginning of period	(676,085)		(641,906)	(650,829)		(635,209)
Acquisition of treasury stock - share repurchase authorization	—		—	(19,421)		—
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans	(202)		(31)	(6,037)		(6,728)
End of period	(676,287)		(641,937)	(676,287)		(641,937)

Total stockholders’ equity	$	3,369,379	2,922,691	$	3,369,379	2,922,691

Dividends declared per preferred share	$	287.50	287.50	$	575.00	575.00
Dividends declared per common share	$	0.38	0.35	$	0.76	0.70

Preferred stock, shares outstanding:
Beginning of period	8,000		8,000	8,000		8,000
Issuance of preferred stock	—		—	—		—
End of period	8,000		8,000	8,000		8,000

Common stock, shares outstanding:
Beginning of period	60,772,988		60,791,439	60,847,896		60,636,437
Dividend reinvestment plan	5,973		5,153	12,180		9,959
Stock purchase and compensation plan	73,561		63,664	294,417		282,928
Acquisition of treasury stock - share repurchase authorization	—		—	(233,611)		—
Acquisition of treasury stock - shares acquired related to employee share-based compensation plans	(2,969)		(308)	(71,329)		(69,376)
End of period	60,849,553		60,859,948	60,849,553		60,859,948

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

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SELECTIVE INSURANCE GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS	Six Months ended June 30,
($ in thousands)	2025		2024
Operating Activities
Net income (loss)	$	195,839	19,199

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	15,733		18,915

Stock-based compensation expense	17,682		16,709
Undistributed gains of equity method investments	(5,725)		(14,572)
Distributions in excess of current year income of equity method investments	8,505		10,377
Net realized and unrealized (gains) losses	(4,401)		338

Loss (gain) on disposal of fixed assets	(72)		321

Changes in assets and liabilities:
Increase in reserve for loss and loss expense, net of reinsurance recoverable	401,112		537,851
Increase in unearned premiums, net of prepaid reinsurance	182,258		251,547
(Increase) decrease in net federal income taxes	(35,020)		(45,257)
Increase in premiums receivable	(194,745)		(266,586)
Increase in deferred policy acquisition costs	(31,087)		(51,655)
Increase in accrued investment income	(10,109)		(5,926)
Increase (decrease) in accrued salaries and benefits	(13,944)		(29,418)
(Increase) decrease in other assets	(4,220)		(22,122)
Increase (decrease) in other liabilities	(70,874)		(39,385)
Net cash provided by (used in) operating activities	450,932		380,336

Investing Activities
Purchases of fixed income securities, held-to-maturity	(2,400)		—
Purchases of fixed income securities, available-for-sale	(1,628,299)		(1,027,136)
Purchases of commercial mortgage loans	(50,785)		(34,281)
Purchases of equity securities	(107,094)		(13,738)
Purchases of alternative investments and other investments	(65,373)		(34,000)
Purchases of short-term investments	(7,173,300)		(3,016,380)
Sales of fixed income securities, available-for-sale	463,280		451,386
Proceeds from commercial mortgage loans	9,188		3,376
Sales of short-term investments	7,151,330		2,908,653
Redemption and maturities of fixed income securities, held-to-maturity	3,224		3,204
Redemption and maturities of fixed income securities, available-for-sale	555,893		415,790
Sales of equity securities	7,125		12,252
Sales of alternative investments	44,567		—
Distributions from alternative investments and other investments	13,416		11,526
Purchases of property and equipment	(20,260)		(13,932)

Net cash provided by (used in) investing activities	(799,488)		(333,280)

Financing Activities
Dividends to preferred stockholders	(4,600)		(4,600)
Dividends to common stockholders	(45,189)		(41,573)
Acquisition of treasury stock	(25,458)		(6,728)
Net proceeds from stock purchase and compensation plans	4,560		4,747

Proceeds from borrowings (net of debt issuance costs of $4.1 million)	395,857		—


Repayments of finance lease obligations	(1,403)		(1,266)
Net cash provided by (used in) financing activities	323,767		(49,420)
Net increase (decrease) in cash and restricted cash	(24,789)		(2,364)
Cash and restricted cash, beginning of period	63,024		13,272
Cash and restricted cash, end of period	$	38,235	10,908

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

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NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. Basis of Presentation

The words "Company," "we," "us," or "our" refer to Selective Insurance Group, Inc. (the "Parent") and its subsidiaries, except as expressly indicated or the context requires otherwise. We have prepared our interim unaudited consolidated financial statements ("Financial Statements") in conformity with (i) United States ("U.S.") generally accepted accounting principles ("GAAP"), and (ii) the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. These require management to make estimates and assumptions that affect the reported financial statement balances and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany accounts and transactions are eliminated in consolidation.

Our Financial Statements reflect all adjustments that, in our opinion, are normal, recurring, and necessary for a fair presentation of our results of operations and financial condition. Our Financial Statements cover the second quarters ended June 30, 2025 ("Second Quarter 2025") and June 30, 2024 ("Second Quarter 2024"), and the six-month periods ended June 30, 2025 ("Six Months 2025") and June 30, 2024 ("Six Months 2024"). Our Financial Statements do not include all information and disclosures required by GAAP and the SEC for audited annual financial statements. Because interim period results of operations are not necessarily indicative of full-year results, our Financial Statements should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 Annual Report") filed with the SEC.

NOTE 2. Adoption of Accounting Pronouncements

We adopted no accounting pronouncements in Six Months 2025.

Pronouncements to be effective in the future

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 amends disclosure requirements to provide greater transparency on income taxes. The following additional disclosures are required annually: (i) specific required categories in the rate reconciliation, (ii) additional information for reconciling items that meet a quantitative threshold, (iii) the amount of income taxes paid disaggregated by jurisdiction, and (iv) income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Amendments can be applied prospectively. Retrospective application and early adoption are permitted. As it only requires additional disclosure, ASU 2023-09 will not have a material impact on our financial condition or results of operations.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"). ASU 2024-03 requires disaggregated disclosure of income statement expenses. This ASU does not change the expense captions on the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. This ASU can be applied prospectively. Retrospective application and early adoption are permitted. As ASU 2024-03 only requires additional disclosure, it will not have a material impact on our financial condition and results of operations.

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NOTE 3. Statements of Cash Flows

Supplemental cash flow information was as follows:


	Six Months ended June 30,
($ in thousands)	2025		2024
Cash paid (received) during the period for:
Interest	$	14,278	14,209
Federal income tax	83,269		46,000

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	5,053		3,884
Operating cash flows from financing leases	139		65
Financing cash flows from finance leases	1,403		1,266

Non-cash items:
Corporate actions related to equity securities1	—		29,250
Corporate actions related to fixed income securities, available-for-sale ("AFS")1	39,742		10,250


Conversion of AFS fixed income securities to equity securities	736		—
Conversion of commercial mortgage loan ("CML") to alternative investment	3,300		—
Assets acquired under finance lease arrangements	—		5,947
Assets acquired under operating lease arrangements	2,062		10,257
Non-cash purchase of property and equipment	13		9

1Examples of corporate actions include like-kind exchanges, non-cash acquisitions, and stock splits.

The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets to the amount reported in the Consolidated Statements of Cash Flows:


($ in thousands)	June 30, 2025		December 31, 2024
Cash	$	357	91
Restricted cash	37,878		62,933
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows	$	38,235	63,024

Amounts in restricted cash represent cash received from the National Flood Insurance Program ("NFIP") that can only be used to pay flood claims under the Write Your Own program.

NOTE 4. Investments

(a) Information regarding our AFS securities as of June 30, 2025 and December 31, 2024, were as follows:


June 30, 2025	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
($ in thousands)
AFS fixed income securities:
U.S. government and government agencies	$	146,074	—	54	(16,687)	129,441
Foreign government	11,520		(21)	35	(1,011)	10,523
Obligations of states and political subdivisions	490,639		(390)	1,271	(32,862)	458,658
Corporate securities	3,356,690		(9,571)	54,889	(87,916)	3,314,092
Collateralized loan obligations ("CLO") and other asset-backed securities ("ABS")	2,294,816		(7,230)	27,345	(38,751)	2,276,180
Residential mortgage-backed securities ("RMBS")	2,029,324		(11,422)	10,438	(84,773)	1,943,567
Commercial mortgage-backed securities ("CMBS")	760,455		(99)	3,936	(20,086)	744,206
Total AFS fixed income securities	$	9,089,518	(28,733)	97,968	(282,086)	8,876,667

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December 31, 2024	Cost/ Amortized Cost		Allowance for Credit Losses	Unrealized Gains	Unrealized Losses	Fair Value
($ in thousands)
AFS fixed income securities:
U.S. government and government agencies	$	139,906	—	2	(19,753)	120,155
Foreign government	10,656		(21)	—	(1,333)	9,302
Obligations of states and political subdivisions	483,609		(570)	550	(32,359)	451,230
Corporate securities	3,181,046		(14,924)	25,259	(123,201)	3,068,180
CLO and other ABS	2,065,611		(4,889)	22,116	(49,689)	2,033,149
RMBS	1,812,744		(11,544)	3,880	(112,722)	1,692,358
CMBS	782,506		—	1,478	(31,024)	752,960
Total AFS fixed income securities	$	8,476,078	(31,948)	53,285	(370,081)	8,127,334

The following tables provide a roll forward of the allowance for credit losses on our AFS fixed income securities for the indicated periods:


Quarter ended June 30, 2025	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
($ in thousands)
Foreign government	$	19	—	—	2	—	—	21
Obligations of states and political subdivisions	419		27	—	(36)	(20)	—	390
Corporate securities	12,616		306	—	(2,979)	(372)	—	9,571
CLO and other ABS	5,499		182	—	1,607	(58)	—	7,230
RMBS	11,342		—	—	185	(105)	—	11,422
CMBS	280		—	—	(181)	—	—	99
Total AFS fixed income securities	$	30,175	515	—	(1,402)	(555)	—	28,733


Quarter ended June 30, 2024	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
($ in thousands)
Foreign government	$	29	—	—	(3)	—	—	26
Obligations of states and political subdivisions	695		18	—	(74)	—	—	639
Corporate securities	15,442		846	—	(126)	(212)	—	15,950
CLO and other ABS	2,627		271	—	126	(2)	—	3,022
RMBS	11,580		—	—	171	(91)	—	11,660
CMBS	8		—	—	4	—	—	12
Total AFS fixed income securities	$	30,381	1,135	—	98	(305)	—	31,309



Six Months ended June 30, 2025	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
($ in thousands)
Foreign government	$	21	—	—	—	—	—	21
Obligations of states and political subdivisions	570		32	—	(106)	(106)	—	390
Corporate securities	14,924		935	—	(5,142)	(1,146)	—	9,571
CLO and other ABS	4,889		1,652	—	876	(187)	—	7,230
RMBS	11,544		—	—	138	(260)	—	11,422
CMBS	—		99	—	—	—	—	99
Total AFS fixed income securities	$	31,948	2,718	—	(4,234)	(1,699)	—	28,733

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Six Months ended June 30, 2024	Beginning Balance		Current Provision for Securities without Prior Allowance	Initial Allowance for Purchased Credit Deteriorated Assets with Credit Deterioration	Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirement) to Sell Securities	Reductions for Securities Sold	Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period	Ending Balance
($ in thousands)
Foreign government	$	35	—	—	(3)	(6)	—	26
Obligations of states and political subdivisions	669		37	—	(59)	(8)	—	639
Corporate securities	12,999		2,362	—	1,166	(568)	(9)	15,950
CLO and other ABS	2,854		427	—	(255)	(4)	—	3,022
RMBS	11,649		—	—	202	(191)	—	11,660
CMBS	6		2	—	4	—	—	12
Total AFS fixed income securities	$	28,212	2,828	—	1,055	(777)	(9)	31,309

During Six Months 2025 and Six Months 2024, we had no write-offs or recoveries of our AFS fixed income securities.

For information on our methodology and significant inputs used to measure expected credit losses, our accounting policy for recognizing write-offs of uncollectible amounts, and our treatment of accrued interest, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report. Accrued interest on AFS securities was $84.1 million as of June 30, 2025, and $74.3 million as of December 31, 2024. We did not record any material write-offs of accrued interest in Six Months 2025 and Six Months 2024.

(b) Quantitative information about unrealized losses on our AFS portfolio follows:


June 30, 2025	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	6,275	(40)	108,474	(16,647)	114,749	(16,687)
Foreign government	—		—	9,592	(1,011)	9,592	(1,011)
Obligations of states and political subdivisions	155,940		(3,377)	219,996	(29,485)	375,936	(32,862)
Corporate securities	243,575		(3,677)	969,247	(84,239)	1,212,822	(87,916)
CLO and other ABS	330,552		(6,239)	504,728	(32,512)	835,280	(38,751)
RMBS	557,024		(10,152)	647,612	(74,621)	1,204,636	(84,773)
CMBS	58,645		(1,928)	368,295	(18,158)	426,940	(20,086)
Total AFS fixed income securities	$	1,352,011	(25,413)	2,827,944	(256,673)	4,179,955	(282,086)


December 31, 2024	Less than 12 months			12 months or longer		Total
($ in thousands)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS fixed income securities:
U.S. government and government agencies	$	14,708	(70)	105,326	(19,683)	120,034	(19,753)
Foreign government	—		—	9,302	(1,333)	9,302	(1,333)
Obligations of states and political subdivisions	153,996		(3,539)	247,735	(28,820)	401,731	(32,359)
Corporate securities	684,999		(11,699)	1,083,392	(111,502)	1,768,391	(123,201)
CLO and other ABS	349,786		(6,296)	601,057	(43,393)	950,843	(49,689)
RMBS	714,061		(21,206)	677,574	(91,516)	1,391,635	(112,722)
CMBS	184,394		(2,870)	417,472	(28,154)	601,866	(31,024)
Total AFS fixed income securities	$	2,101,944	(45,680)	3,141,858	(324,401)	5,243,802	(370,081)

We currently do not intend to sell any of the securities summarized in the tables above, nor do we believe we will be required to sell any of them. The decrease in gross unrealized losses at June 30, 2025, compared to December 31, 2024, was driven by a decrease in benchmark U.S. Treasury rates. Considering these factors and our review of these securities under our credit loss policy as described in Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report, we have concluded that no additional allowance for credit loss is required on these balances beyond the allowance for credit loss recorded as of June 30, 2025. This conclusion reflects our current judgment about the financial position and future prospects of the entities that issued the investment security and underlying collateral.

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(c) AFS and held-to-maturity ("HTM") fixed income securities at June 30, 2025, by contractual maturity are shown below. The maturities of RMBS, CMBS, CLO and other ABS securities were calculated using each security's expected maturities. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	AFS		HTM
($ in thousands)	Fair Value		Carrying Value	Fair Value
Due in one year or less	$	549,570	135	134
Due after one year through five years	3,627,442		16,082	15,985
Due after five years through 10 years	3,664,357		8,335	8,338
Due after 10 years	1,035,298		—	—
Total fixed income securities	$	8,876,667	24,552	24,457

(d) The following table summarizes our alternative investment portfolio by strategy:


	June 30, 2025				December 31, 2024
($ in thousands)	Carrying Value		Remaining Commitment	Maximum Exposure to Loss	Carrying Value	Remaining Commitment	Maximum Exposure to Loss
Alternative Investments
Private equity	$	325,848	170,686	496,534	346,020	182,355	528,375
Private credit	62,133		99,121	161,254	52,100	99,185	151,285
Real assets	47,014		36,270	83,284	42,776	38,950	81,726
Total alternative investments	$	434,995	306,077	741,072	440,896	320,490	761,386

We are contractually committed to make additional investments up to the remaining commitments stated above. We did not provide any non-contractual financial support during 2025 or 2024.

The following table shows gross summarized financial information for our alternative investments portfolio, including the portion we do not own. As the majority of these investments report results to us on a one-quarter lag, the summarized financial statement information is for the 3- and 6-month periods ended March 31:


Income Statement Information	Quarter ended June 30,			Six Months ended June 30,
($ in millions)	2025		2024	2025		2024
Net investment income (loss)	$	251.4	242.4	$	652.1	(103.6)
Realized gains	950.6		1,554.2	1,562.6		3,385.1
Net change in unrealized appreciation (depreciation)	975.9		2,850.2	2,855.3		6,669.2
Net income	$	2,177.9	4,646.8	$	5,070.0	9,950.7
Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income	$	4.0	10.5	$	11.1	17.4

(e) We have pledged certain AFS fixed income securities as collateral related to our borrowing relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). We also had certain securities on deposit with various state and regulatory agencies at June 30, 2025, to comply with insurance laws. We retain all rights regarding all securities pledged as collateral.

The following table summarizes the market value of these securities at June 30, 2025:


($ in millions)	FHLBI Collateral		FHLBNY Collateral	State and Regulatory Deposits	Total
U.S. government and government agencies	$	—	—	24.3	24.3
Obligations of states and political subdivisions	—		—	1.8	1.8



RMBS	65.7		20.9	0.5	87.1
CMBS	0.4		7.3	—	7.7


Total pledged as collateral	$	66.1	28.2	26.6	120.9

(f) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than to certain U.S. government agencies, as of June 30, 2025, or December 31, 2024.

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(g) The components of pre-tax net investment income earned were as follows:


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Fixed income securities	$	115,733	93,935	$	220,815	188,037
CMLs	3,761		3,145	7,376		5,939
Equity securities	4,908		1,877	8,475		6,785
Short-term investments	5,267		4,680	11,500		8,199
Alternative investments	4,004		10,517	11,083		17,398
Other investments	163		118	394		381
Investment expenses	(5,868)		(5,630)	(10,984)		(10,248)
Net investment income earned	$	127,968	108,642	$	248,659	216,491

The increase in net investment income earned in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods was primarily driven by active portfolio management, operating cash flow deployment, and net proceeds from the issuance of our 5.90% Senior Notes in the first quarter of 2025. For additional information regarding our 5.90% Senior Notes issuance, see Note 12. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

(h) The following table summarizes net realized and unrealized investment gains and losses for the periods indicated:


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Gross gains on sales	$	2,154	4,387	$	3,881	6,522
Gross losses on sales	(2,394)		(1,251)	(4,777)		(3,216)
Net realized gains (losses) on disposals	(240)		3,136	(896)		3,306
Net unrealized gains (losses) on equity securities	3,640		(93)	4,690		599
Net credit loss benefit (expense) on fixed income securities, AFS	887		(1,233)	1,516		(3,883)

Net credit loss benefit (expense) on CMLs	(115)		(32)	(150)		136
Losses on securities for which we have the intent to sell	—		(481)	(759)		(496)

Net realized and unrealized investment gains (losses)	$	4,172	1,297	$	4,401	(338)

Net unrealized gains and losses recognized in income on equity securities, as reflected in the table above, included the following:


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Unrealized gains (losses) recognized in income on equity securities:
On securities remaining in our portfolio at end of period	$	3,018	2,617	$	3,539	2,906
On securities sold in period	622		(2,710)	1,151		(2,307)
Total unrealized gains (losses) recognized in income on equity securities	$	3,640	(93)	$	4,690	599

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NOTE 5. Fair Value Measurements

The financial assets in our investment portfolio are primarily measured at fair value as disclosed on the Consolidated Balance Sheets. The following table presents the carrying amounts and fair values of our financial liabilities as of June 30, 2025, and December 31, 2024:


	June 30, 2025			December 31, 2024
($ in thousands)	Carrying Amount		Fair Value	Carrying Amount	Fair Value
Financial Liabilities






Long-term debt:
7.25% Senior Notes	$	49,933	56,274	49,931	54,657
5.90% Senior Notes	399,914		408,864	—	—
6.70% Senior Notes	99,603		105,970	99,590	103,057

5.375% Senior Notes	294,682		268,221	294,627	273,464
3.03% borrowings from FHLBI	60,000		59,158	60,000	58,516
Subtotal long-term debt	904,132		898,487	504,148	489,694
Unamortized debt issuance costs	(6,262)			(2,492)
Finance lease obligations	4,879			6,282
Total long-term debt	$	902,749		507,938

For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at June 30, 2025, and December 31, 2024:


June 30, 2025			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	129,441	38,533	90,908	—
Foreign government	10,523		—	10,523	—
Obligations of states and political subdivisions	458,658		—	451,128	7,530
Corporate securities	3,314,092		—	3,046,271	267,821
CLO and other ABS	2,276,180		—	1,795,143	481,037
RMBS	1,943,567		—	1,943,567	—
CMBS	744,206		—	743,867	339
Total AFS fixed income securities	8,876,667		38,533	8,081,407	756,727
Equity securities:
Common stock1	316,224		99,665	—	—
Preferred stock	1,835		1,835	—	—
Total equity securities	318,059		101,500	—	—
Short-term investments	531,441		521,542	9,899	—
Total assets measured at fair value	$	9,726,167	661,575	8,091,306	756,727

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December 31, 2024			Fair Value Measurements Using
($ in thousands)	Assets Measured at Fair Value		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Description
Measured on a recurring basis:
AFS fixed income securities:
U.S. government and government agencies	$	120,155	35,518	84,637	—
Foreign government	9,302		—	9,302	—
Obligations of states and political subdivisions	451,230		—	443,804	7,426
Corporate securities	3,068,180		—	2,825,501	242,679
CLO and other ABS	2,033,149		—	1,665,155	367,994
RMBS	1,692,358		—	1,692,358	—
CMBS	752,960		—	752,620	340
Total AFS fixed income securities	8,127,334		35,518	7,473,377	618,439
Equity securities:
Common stock1	211,767		41,445	—	808
Preferred stock	1,834		1,834	—	—
Total equity securities	213,601		43,279	—	808
Short-term investments	509,318		474,225	35,093	—
Total assets measured at fair value	$	8,850,253	553,022	7,508,470	619,247

1Investments amounting to $216.6 million at June 30, 2025, and $169.5 million at December 31, 2024, were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. These investments are not redeemable, and the timing of liquidations of the underlying assets is unknown at each reporting period. The fair value amounts in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value.

The following tables provide a summary of Level 3 changes in Six Months 2025 and Six Months 2024:


June 30, 2025
($ in thousands)	Obligations of States and Political Subdivisions		Corporate Securities	CLO and Other ABS	RMBS	CMBS	Common Stock	Total
Fair value, December 31, 2024	$	7,426	242,679	367,994	—	340	808	619,247
Total net gains (losses) for the period included in:
Other comprehensive income (loss) ("OCI")	59		3,874	228	—	(2)	—	4,159
Net realized and unrealized gains (losses)	117		141	21	—	—	655	934
Net investment income earned	—		23	28	—	5	—	56
Purchases	—		12,684	62,211	—	—	—	74,895
Sales	—		—	—	—	—	—	—
Issuances	—		—	—	—	—	—	—
Settlements	(72)		(9,156)	(31,732)	—	(4)	(1,463)	(42,427)
Transfers into Level 3	—		17,576	85,788	—	—	—	103,364
Transfers out of Level 3	—		—	(3,501)	—	—	—	(3,501)
Fair value, June 30, 2025	$	7,530	267,821	481,037	—	339	—	756,727

Change in unrealized gains (losses) for the period included in earnings for assets held at period end	117		140	21	—	—	—	278
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	59		3,877	(452)	—	(2)	—	3,482

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June 30, 2024
($ in thousands)	Obligation of state and Political Subdivisions		Corporate Securities	CLO and Other ABS	RMBS	CMBS	Common Stock	Total
Fair value, December 31, 2023	$	7,834	297,332	245,313	—	356	854	551,689
Total net gains (losses) for the period included in:
OCI	(112)		1,203	969	—	(2)	—	2,058
Net realized and unrealized gains (losses)	—		218	39	—	—	213	470
Net investment income earned	—		(494)	(7)	—	(1)	—	(502)
Purchases	—		5,261	30,119	4,886	—	—	40,266
Sales	—		—	—	—	—	—	—
Issuances	—		—	—	—	—	—	—
Settlements	(68)		(7,269)	(4,726)	—	(4)	—	(12,067)
Transfers into Level 3	—		28,896	19,537	—	—	—	48,433
Transfers out of Level 3	—		(31,434)	(27,524)	—	—	—	(58,958)
Fair value, June 30, 2024	$	7,654	293,713	263,720	4,886	349	1,067	571,389

Change in unrealized gains (losses) for the period included in earnings for assets held at period end	—		226	39	—	—	213	478
Change in unrealized gains (losses) for the period included in OCI for assets held at period end	(112)		850	969	—	(2)	—	1,705

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements of Level 3 assets at June 30, 2025, and December 31, 2024:


June 30, 2025
($ in thousands)	Assets Measured at Fair Value		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Internal valuations:
Corporate securities	$	157,700	Discounted Cash Flow	Illiquidity Spread	(4.4)% - 5.3%	1.7%
CLO and other ABS	294,694		Discounted Cash Flow	Illiquidity Spread	(1.8)% - 19.6%	1.9%
Total internal valuations	452,394
Other1	304,333
Total Level 3 securities	$	756,727


December 31, 2024
($ in thousands)	Assets Measured at Fair Value		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Internal valuations:
Corporate securities	$	147,294	Discounted Cash Flow	Illiquidity Spread	(4.4)% - 5.3%	1.7%
CLO and other ABS	249,506		Discounted Cash Flow	Illiquidity Spread	(0.97)% - 19.6%	1.9%
Total internal valuations	396,800
Other1	222,447
Total Level 3 securities	$	619,247

1Other is comprised of broker quotes or other third-party pricing for which there is a lack of transparency into the inputs used to develop the valuations. The quantitative details of these unobservable inputs are neither provided to us, nor reasonably available to us, and therefore are not included in the tables above.

For the securities in the tables above valued using a discounted cash flow analysis, we apply an illiquidity spread in determining fair value. An increase in this assumption would result in a lower fair value measurement.

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The following tables provide quantitative information about our financial assets and liabilities that were not measured at fair value, but were disclosed as such at June 30, 2025, and December 31, 2024:


June 30, 2025			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:


Corporate securities	$	24,457	—	24,457	—


Total HTM fixed income securities	24,457		—	24,457	—

CMLs	$	266,197	—	—	266,197

Financial Liabilities











Long-term debt:
7.25% Senior Notes	$	56,274	—	56,274	—
5.90% Senior Notes	408,864		—	408,864	—
6.70% Senior Notes	105,970		—	105,970	—
5.375% Senior Notes	268,221		—	268,221	—
3.03% borrowings from FHLBI	59,158		—	59,158	—
Total long-term debt	$	898,487	—	898,487	—


December 31, 2024			Fair Value Measurements Using
($ in thousands)	Assets/ Liabilities Disclosed at Fair Value		Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial Assets
HTM:


Corporate securities	$	24,735	—	24,735	—


Total HTM fixed income securities	24,735		—	24,735	—

CMLs	$	224,842	—	—	224,842

Financial Liabilities





Long-term debt:
7.25% Senior Notes	$	54,657	—	54,657	—
6.70% Senior Notes	103,057		—	103,057	—
5.375% Senior Notes	273,464		—	273,464	—
3.03% borrowings from FHLBI	58,516		—	58,516	—
Total long-term debt	$	489,694	—	489,694	—

NOTE 6. Allowance for Credit Losses on Premiums Receivable

The following table provides a roll forward of the allowance for credit losses on our premiums receivable balance for the indicated periods:


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Balance at beginning of period	$	21,600	20,000	$	20,400	18,900


Current period change for expected credit losses	1,933		2,488	5,799		4,272

Write-offs charged against the allowance for credit losses	(2,314)		(1,720)	(5,203)		(2,776)
Recoveries	581		332	804		704
Allowance for credit losses, end of period	$	21,800	21,100	$	21,800	21,100

For a discussion of the methodology used to evaluate our estimate of expected credit losses on premiums receivable, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

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NOTE 7. Reinsurance

We evaluate and monitor the financial condition of our reinsurers under voluntary reinsurance arrangements to minimize our exposure to significant losses from reinsurer insolvencies. The following tables provide (i) a disaggregation of our reinsurance recoverable balance by financial strength rating and (ii) an aging analysis of our past due reinsurance recoverable balances as of June 30, 2025, and December 31, 2024:


	June 30, 2025
($ in thousands)	Current		Past Due	Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	116,797	1,057	117,854
A+	499,487		4,408	503,895
A	122,212		1,066	123,278
A-	6,342		243	6,585


Total rated reinsurers	744,838		6,774	751,612

Non-rated reinsurers
Federal and state pools	122,503		—	122,503
Other than federal and state pools	9,269		4	9,273
Total non-rated reinsurers	131,772		4	131,776

Total reinsurance recoverable, gross	$	876,610	6,778	883,388
Less: allowance for credit losses				(2,000)
Total reinsurance recoverable, net				881,388


	December 31, 2024
($ in thousands)	Current		Past Due	Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	111,481	225	111,706
A+	483,317		5,205	488,522
A	131,087		819	131,906
A-	5,421		149	5,570


Total rated reinsurers	731,306		6,398	737,704

Non-rated reinsurers
Federal and state pools	318,785		—	318,785
Other than federal and state pools	6,647		9	6,656
Total non-rated reinsurers	325,432		9	325,441

Total reinsurance recoverable, gross	$	1,056,738	6,407	1,063,145
Less: allowance for credit losses				(2,000)
Total reinsurance recoverable, net				1,061,145

The $196.3 million decrease in "Federal and state pools" as of June 30, 2025, compared to December 31, 2024, primarily relates to claim payments on Hurricane Helene losses reserved for at December 31, 2024. These losses relate to our participation in the NFIP Write Your Own Program, and are 100% ceded to the NFIP.

The following table provides a roll forward of the allowance for credit losses on our reinsurance recoverable balance for the periods indicated:


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Balance at beginning of period	$	2,000	1,700	$	2,000	1,700
Current period change for expected credit losses	—		—	—		—

Write-offs charged against the allowance for credit losses	—		—	—		—
Recoveries	—		—	—		—
Allowance for credit losses, end of period	$	2,000	1,700	$	2,000	1,700

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For a discussion of the methodology used to evaluate our estimate of expected credit losses on our reinsurance recoverable balance, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

The following table lists direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expense incurred for the indicated periods. For more information about reinsurance, refer to Note 9. "Reinsurance" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.


	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Premiums written:
Direct	$	1,490,805	1,399,738	$	2,913,656	2,715,649
Assumed	5,441		6,413	11,418		12,398
Ceded	(207,617)		(180,050)	(396,002)		(345,325)
Net	1,288,629		1,226,101	2,529,072		2,382,722
Premiums earned:
Direct	1,373,080		1,242,696	2,713,526		2,448,064
Assumed	5,922		5,779	12,073		11,970
Ceded	(190,945)		(168,244)	(378,785)		(328,859)
Net	1,188,057		1,080,231	2,346,814		2,131,175
Loss and loss expense incurred:
Direct	929,929		1,009,819	1,760,601		1,763,386
Assumed	5,137		5,058	10,635		11,039
Ceded	(111,168)		(89,329)	(201,013)		(144,585)
Net	$	823,898	925,548	$	1,570,223	1,629,840

NOTE 8. Reserve for Loss and Loss Expense

The table below provides a roll forward of the reserve for loss and loss expense for beginning and ending reserve balances:


	Six Months ended June 30,
($ in thousands)	2025		2024
Gross reserve for loss and loss expense, at beginning of period	$	6,589,801	5,336,911
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of period	1,022,245		618,601
Net reserve for loss and loss expense, at beginning of period	5,567,556		4,718,310
Incurred loss and loss expense for claims occurring in the:
Current year	1,535,575		1,442,719
Prior years	34,648		187,121
Total incurred loss and loss expense	1,570,223		1,629,840
Paid loss and loss expense for claims occurring in the:
Current year	320,366		347,501
Prior years	865,344		753,658
Total paid loss and loss expense	1,185,710		1,101,159
Net reserve for loss and loss expense, at end of period	5,952,069		5,246,991
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	859,087		656,534
Gross reserve for loss and loss expense, at end of period	$	6,811,156	5,903,525

Prior year reserve development in Six Months 2025 was unfavorable by $34.6 million, consisting of $50.0 million of unfavorable casualty reserve development, partially offset by $15.4 million of favorable property reserve development. Our Standard Commercial Lines segment drove the unfavorable casualty reserve development consisting of (i) $25.0 million in our commercial automobile line of business, related to increased severities primarily in accident years 2022 through 2024 and (ii) $20.0 million in our general liability line of business, driven by higher severities primarily in accident years 2022 and 2023. We also had unfavorable development of $5.0 million in our personal automobile line of business, primarily related to increased severities in accident year 2024.

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Prior year reserve development in Six Months 2024 was unfavorable by $187.1 million, consisting of $211.0 million of unfavorable casualty reserve development, partially offset by $23.9 million of favorable property reserve development. Our Standard Commercial Lines segment drove the unfavorable casualty reserve development consisting of (i) $216.0 million in our general liability line of business, primarily driven by increased severities in accident years 2020 through 2023, (ii) $10.0 million in our commercial automobile line of business, partially offset by (iii) $15.0 million of favorable casualty reserve development in our workers compensation line of business.

Additionally in Six Months 2024, in our Standard Personal Lines segment, we had unfavorable casualty reserve development of $5.0 million in our personal automobile line of business, offset by favorable development of $5.0 million in our homeowners line of business.

NOTE 9. Segment Information

We evaluate the results of our four reportable segments as follows:

•Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated on (i) before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), (ii) their return on equity ("ROE") contribution, and (iii) their combined ratios.

•Our Investments segment is primarily evaluated on after-tax net investment income and its ROE contribution. After-tax net realized and unrealized gains and losses are also included in our Investments segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses. No segment has a separate investment portfolio or allocated assets.

(a) The following table presents revenues by segments and a reconciliation to consolidated revenue.


Revenue by Segment	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024
Standard Commercial Lines:
Net premiums earned:
General liability	$	305,843	280,097	$	600,530	553,512
Commercial automobile	288,759		260,652	572,344		512,372
Commercial property	191,027		168,511	377,557		330,064
Workers compensation	82,024		82,316	161,060		170,093
Businessowners' policies	48,416		41,641	95,309		81,562
Bonds	13,255		12,468	26,513		24,556
Other	8,311		7,808	16,532		15,444
Miscellaneous income	5,920		5,214	10,780		12,348
Total Standard Commercial Lines revenue	943,555		858,707	1,860,625		1,699,951
Standard Personal Lines:
Net premiums earned:
Personal automobile	51,287		57,544	104,255		114,504
Homeowners	48,312		46,055	96,255		90,168
Other	2,778		2,822	5,522		5,595
Miscellaneous income	577		594	1,148		1,235
Total Standard Personal Lines revenue	102,954		107,015	207,180		211,502
E&S Lines:
Net premiums earned:
Casualty lines	87,400		73,887	172,519		145,525
Property lines	60,645		46,430	118,418		87,780
Miscellaneous income	51		27	129		53
Total E&S Lines revenue	148,096		120,344	291,066		233,358
Investments:
Net investment income earned	127,968		108,642	248,659		216,491
Net realized and unrealized investment gains (losses)	4,172		1,297	4,401		(338)
Total Investments revenue	132,140		109,939	253,060		216,153


Total revenues	$	1,326,745	1,196,005	$	2,611,931	2,360,964

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(b) The following tables present information about our segments' pre- and after-tax income, significant expenses, and reconciliations to consolidated results for the periods indicated.


Quarter Ended June 30, 2025	Standard Commercial Lines		Standard Personal Lines	E&S Lines	Total Insurance Operations	Investments	Total Reportable Segments
($ in thousands)
Total segment revenues	$	943,555	102,954	148,096	1,194,605	132,140	1,326,745

Loss and loss expense incurred:
Net catastrophe losses	50,881		14,591	14,460	79,932	—	79,932
Non-catastrophe property loss and loss expense	131,883		28,271	13,085	173,239	—	173,239
(Favorable)/unfavorable prior year casualty reserve development	45,000		—	—	45,000	—	45,000
Current year casualty loss costs	439,002		27,115	59,610	525,727	—	525,727
Total loss and loss expense incurred	666,766		69,977	87,155	823,898	—	823,898
Net underwriting expenses incurred:
Commissions to distribution partners	173,406		6,522	33,769	213,697	—	213,697
Salaries and employee benefits	78,667		8,805	7,498	94,970	—	94,970
Other segment expenses	49,709		9,100	4,503	63,312	—	63,312
Total net underwriting expenses incurred	301,782		24,427	45,770	371,979	—	371,979
Dividends to policyholders	1,151		—	—	1,151	—	1,151

Segment income (loss), before federal income tax	(26,144)		8,550	15,171	(2,423)	132,140	129,717
Federal income tax (expense) benefit					509	(27,423)	(26,914)
Segment income (loss), after federal income tax					(1,914)	104,717	102,803

Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)							129,717
Interest expense							(13,256)
Corporate expenses							(7,556)
Income before federal income tax							108,905
Federal income tax (expense) benefit on segment income (loss)							(26,914)
Federal income tax (expense) benefit on interest and corporate expenses							3,952
Total federal income tax (expense) benefit							(22,962)
Net income							85,943
Preferred stock dividends							(2,300)
Net income available to common stockholders							83,643

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Quarter Ended June 30, 2024	Standard Commercial Lines		Standard Personal Lines	E&S Lines	Total Insurance Operations	Investments	Total Reportable Segments
($ in thousands)
Total segment revenues	$	858,707	107,015	120,344	1,086,066	109,939	1,196,005

Loss and loss expense incurred:
Net catastrophe losses	50,858		25,396	14,280	90,534	—	90,534
Non-catastrophe property loss and loss expense	124,505		45,350	15,633	185,488	—	185,488
(Favorable)/unfavorable prior year casualty reserve development	176,000		—	—	176,000	—	176,000
Current year casualty loss costs	396,591		30,694	46,241	473,526	—	473,526
Total loss and loss expense incurred	747,954		101,440	76,154	925,548	—	925,548
Net underwriting expenses incurred:
Commissions to distribution partners	157,351		8,124	26,870	192,345		192,345
Salaries and employee benefits	69,070		8,644	6,533	84,247		84,247
Other segment expenses	44,159		8,108	4,286	56,553		56,553
Total net underwriting expenses incurred	270,580		24,876	37,689	333,145	—	333,145
Dividends to policyholders	1,054		—	—	1,054		1,054

Segment income (loss), before federal income tax	(160,881)		(19,301)	6,501	(173,681)	109,939	(63,742)
Federal income tax (expense) benefit					36,473	(22,652)	13,821
Segment income (loss), after federal income tax					(137,208)	87,287	(49,921)

Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)							(63,742)
Interest expense							(7,202)
Corporate expenses							(9,154)
Income before federal income tax							(80,098)
Federal income tax (expense) benefit on segment income (loss)							13,821
Federal income tax (expense) benefit on interest and corporate expenses							2,958
Total federal income tax (expense) benefit							16,779
Net income							(63,319)
Preferred stock dividends							(2,300)
Net income available to common stockholders							(65,619)

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Six Months ended June 30, 2025
($ in thousands)	Standard Commercial Lines		Standard Personal Lines	E&S Lines	Total Insurance Operations	Investments	Total Reportable Segments
Total segment revenues	$	1,860,625	207,180	291,066	2,358,871	253,060	2,611,931

Loss and loss expense incurred:
Net catastrophe losses	70,692		21,704	30,893	123,289	—	123,289
Non-catastrophe property loss and loss expense	260,675		64,759	26,501	351,935	—	351,935
(Favorable)/unfavorable prior year casualty reserve development	45,000		5,000	—	50,000	—	50,000
Current year casualty loss costs	872,065		55,183	117,751	1,044,999	—	1,044,999
Total loss and loss expense incurred	1,248,432		146,646	175,145	1,570,223	—	1,570,223
Net underwriting expenses incurred:
Commissions to distribution partners	343,578		13,873	66,475	423,926	—	423,926
Salaries and employee benefits	158,258		17,400	15,093	190,751	—	190,751
Other segment expenses	101,449		18,674	8,500	128,623	—	128,623
Total net underwriting expenses incurred	603,285		49,947	90,068	743,300	—	743,300
Dividends to policyholders	2,134		—	—	2,134	—	2,134

Segment income (loss), before federal income tax	6,774		10,587	25,853	43,214	253,060	296,274
Federal income tax (expense) benefit					(9,075)	(52,541)	(61,616)
Segment income (loss), after federal income tax					34,139	200,519	234,658

Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)							296,274
Interest expense							(22,829)
Corporate expenses							(25,654)
Income before federal income tax							247,791
Federal income tax (expense) benefit on segment income (loss)							(61,616)
Federal income tax (expense) benefit on interest and corporate expenses							9,664
Total federal income tax (expense) benefit							(51,952)
Net income							195,839
Preferred stock dividends							(4,600)
Net income available to common stockholders							191,239

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Six Months ended June 30, 2024
($ in thousands)	Standard Commercial Lines		Standard Personal Lines	E&S Lines	Total Insurance Operations	Investments	Total Reportable Segments
Total segment revenues	$	1,699,951	211,502	233,358	2,144,811	216,153	2,360,964

Loss and loss expense incurred:
Net catastrophe losses	89,353		37,241	19,182	145,776	—	145,776
Non-catastrophe property loss and loss expense	239,546		87,228	29,886	356,660	—	356,660
(Favorable)/unfavorable prior year casualty reserve development	211,000		—	—	211,000	—	211,000
Current year casualty loss costs	763,888		61,315	91,201	916,404	—	916,404
Total loss and loss expense incurred	1,303,787		185,784	140,269	1,629,840	—	1,629,840
Net underwriting expenses incurred:
Commissions to distribution partners	311,321		15,623	52,011	378,955	—	378,955
Salaries and employee benefits	141,344		18,083	12,298	171,725	—	171,725
Other segment expenses	89,691		16,648	8,294	114,633	—	114,633
Total net underwriting expenses incurred	542,356		50,354	72,603	665,313	—	665,313
Dividends to policyholders	4,308		—	—	4,308	—	4,308

Segment income (loss), before federal income tax	(150,500)		(24,636)	20,486	(154,650)	216,153	61,503
Federal income tax (expense) benefit					32,476	(44,518)	(12,042)
Segment income (loss), after federal income tax					(122,174)	171,635	49,461

Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)							61,503
Interest expense							(14,383)
Corporate expenses							(24,652)
Income before federal income tax							22,468
Federal income tax (expense) benefit on segment income (loss)							(12,042)
Federal income tax (expense) benefit on interest and corporate expenses							8,773
Total federal income tax (expense) benefit							(3,269)
Net income							19,199
Preferred stock dividends							(4,600)
Net income available to common stockholders							14,599

The "Other segment expenses" primarily consist of (i) fees paid for licenses, (ii) depreciation expense, and (iii) general overhead items to operate our business operations, including travel, postage, telephone, and utility expenses. "Loss and loss expense incurred" includes a portion of salaries and employee benefits related to claims personnel.

(c) The following tables present reconciliations of our segments' ROE contributions and combined ratios to consolidated results.


ROE	Quarter Ended June 30,			Six Months Ended June 30,
	2025		2024	2025		2024
Standard Commercial Lines segment	(2.6)	%	(18.4)	0.4	%	(8.6)
Standard Personal Lines segment	0.9		(2.2)	0.5		(1.4)
E&S Lines segment	1.5		0.7	1.3		1.2
Total insurance operations	(0.2)		(19.9)	2.2		(8.8)

Net investment income earned	13.0		12.5	12.9		12.5
Net realized and unrealized investment gains (losses)	0.4		0.1	0.2		—
Total investments segment	13.4		12.6	13.1		12.5

Other	(2.5)		(2.2)	(2.8)		(2.6)
ROE	10.7		(9.5)	12.5		1.1

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Combined Ratio	Quarter ended June 30,						Six Months ended June 30,
	2025				2024		2025				2024
	Amount		Ratio		Amount	Ratio	Amount		Ratio		Amount	Ratio
Standard Commercial Lines:
Net premiums earned	$	937,635			853,493		$	1,849,845			1,687,603
Loss and loss expense incurred	666,766		71.1	%	747,954	87.6	1,248,432		67.5	%	1,303,787	77.2
Net underwriting expenses incurred1	295,862		31.6		265,366	31.1	592,505		32.0		530,008	31.4
Dividends to policyholders	1,151		0.1		1,054	0.1	2,134		0.1		4,308	0.3
Underwriting income (loss)	(26,144)		102.8		(160,881)	118.8	6,774		99.6		(150,500)	108.9

Standard Personal Lines:
Net premiums earned	102,377				106,421		206,032				210,267
Loss and loss expense incurred	69,977		68.3		101,440	95.3	146,646		71.2		185,784	88.3
Net underwriting expenses incurred1	23,850		23.3		24,282	22.8	48,799		23.7		49,119	23.4
Underwriting income (loss)	8,550		91.6		(19,301)	118.1	10,587		94.9		(24,636)	111.7

E&S Lines:
Net premiums earned	148,045				120,317		290,937				233,305
Loss and loss expense incurred	87,155		58.9		76,154	63.3	175,145		60.2		140,269	60.1
Net underwriting expenses incurred1	45,719		30.9		37,662	31.3	89,939		30.9		72,550	31.1
Underwriting income (loss)	15,171		89.8		6,501	94.6	25,853		91.1		20,486	91.2

Total Insurance Operations:
Net premiums earned	1,188,057				1,080,231		2,346,814				2,131,175
Loss and loss expense incurred	823,898		69.3		925,548	85.7	1,570,223		66.9		1,629,840	76.5
Net underwriting expenses incurred1	365,431		30.8		327,310	30.3	731,243		31.2		651,677	30.6
Dividends to policyholders	1,151		0.1		1,054	0.1	2,134		0.1		4,308	0.2
Underwriting income (loss)	(2,423)		100.2		(173,681)	116.1	43,214		98.2		(154,650)	107.3

1"Net underwriting expenses incurred" includes "Other income" allocated to each reportable segment.

NOTE 10. Retirement Plans

The primary pension plan for our employees is the Retirement Income Plan for Selective Insurance Company of America (the "Pension Plan"). The Pension Plan is closed to new entrants, and its benefits ceased accruing after March 31, 2016. For more information about Selective Insurance Company of America's ("SICA") retirement plans, see Note 15. "Retirement Plans" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

The following tables provide information about the Pension Plan:


	Pension Plan
	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2025		2024	2025		2024


Net Periodic Pension Cost (Benefit):

Interest cost	$	3,973	3,888	$	7,946	7,776
Expected return on plan assets	(5,339)		(5,383)	(10,678)		(10,765)
Amortization of unrecognized net actuarial loss	868		955	1,736		1,910
Total net periodic pension cost (benefit)1	$	(498)	(540)	$	(996)	(1,079)

1The components of net periodic pension cost (benefit) are included within "Loss and loss expense incurred" and "Other insurance expenses" on the Consolidated Statements of Income.


	Pension Plan
	Six Months ended June 30
	2025		2024
Weighted-Average Expense Assumptions:
Discount rate	5.69	%	5.02	%

Effective interest rate for calculation of interest cost	5.42		4.91
Expected return on plan assets	6.60		6.40

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NOTE 11. Comprehensive Income (Loss)

The components of comprehensive income (loss), both gross and net of tax, for Second Quarter 2025 and Six Months 2025 and Second Quarter 2024 and Six Months 2024 were as follows:


Second Quarter 2025
($ in thousands)	Gross		Tax	Net
Net income (loss)	$	108,905	22,962	85,943
Components of OCI:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) during the period	41,864		8,790	33,074
Unrealized gains (losses) on securities with credit loss recognized in earnings	11,022		2,315	8,707

Amounts reclassified into net income (loss):
Net realized (gains) losses on disposals and intent-to-sell AFS securities	(434)		(91)	(343)
Credit loss (benefit) expense	(887)		(186)	(701)

Total unrealized gains (losses) on investment securities	51,565		10,828	40,737
Defined benefit pension and post-retirement plans:

Amounts reclassified into net income (loss):
Net actuarial (gain) loss	873		184	689

Total defined benefit pension and post-retirement plans	873		184	689
Other comprehensive income (loss)	52,438		11,012	41,426
Comprehensive income (loss)	$	161,343	33,974	127,369


Second Quarter 2024
($ in thousands)	Gross		Tax	Net
Net income (loss)	$	(80,098)	(16,779)	(63,319)
Components of OCI:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) during the period	(8,347)		(1,753)	(6,594)
Unrealized gains (losses) on securities with credit loss recognized in earnings	(3,705)		(778)	(2,927)
Amounts reclassified into net income (loss):

Net realized (gains) losses on disposals and intent-to-sell AFS securities	43		10	33
Credit loss (benefit) expense	1,233		258	975
Total unrealized gains (losses) on investment securities	(10,776)		(2,263)	(8,513)
Defined benefit pension and post-retirement plans:

Amounts reclassified into net income (loss):
Net actuarial (gain) loss	967		203	764

Total defined benefit pension and post-retirement plans	967		203	764
Other comprehensive income (loss)	(9,809)		(2,060)	(7,749)
Comprehensive income (loss)	$	(89,907)	(18,839)	(71,068)

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Six Months 2025
($ in thousands)	Gross		Tax	Net
Net income (loss)	$	247,791	51,952	195,839
Components of OCI:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) during the period	111,124		23,335	87,789
Unrealized gains (losses) on securities with credit loss recognized in earnings	23,788		4,995	18,793
Amounts reclassified into net income (loss):
Net realized (gains) losses on disposals and intent-to-sell AFS securities	(708)		(149)	(559)
Credit loss (benefit) expense	(1,516)		(318)	(1,198)

Total unrealized gains (losses) on investment securities	132,688		27,863	104,825
Defined benefit pension and post-retirement plans:

Amounts reclassified into net income (loss):
Net actuarial (gain) loss	1,745		367	1,378

Total defined benefit pension and post-retirement plans	1,745		367	1,378
Other comprehensive income (loss)	134,433		28,230	106,203
Comprehensive income (loss)	$	382,224	80,182	302,042

Six Months 2024
($ in thousands)	Gross		Tax	Net
Net income (loss)	$	22,468	3,269	19,199
Components of OCI:
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) during the period	(23,907)		(5,020)	(18,887)
Unrealized gains (losses) on securities with credit loss recognized in earnings	(6,837)		(1,436)	(5,401)
Amounts reclassified into net income (loss):

Net realized (gains) losses on disposals and intent-to-sell AFS securities	(35)		(7)	(28)
Credit loss (benefit) expense	3,883		815	3,068
Total unrealized gains (losses) on investment securities	(26,896)		(5,648)	(21,248)
Defined benefit pension and post-retirement plans:

Amounts reclassified into net income (loss):
Net actuarial (gain) loss	1,934		406	1,528

Total defined benefit pension and post-retirement plans	1,934		406	1,528
Other comprehensive income (loss)	(24,962)		(5,242)	(19,720)
Comprehensive income (loss)	$	(2,494)	(1,973)	(521)

The following table shows each component of accumulated other comprehensive income (loss) ("AOCI") (net of taxes), including balances and changes, as of June 30, 2025:


June 30, 2025	Net Unrealized Gains (Losses) on Investment Securities				Defined Benefit Pension and Post-Retirement Plans	Total AOCI
($ in thousands)	Credit Loss Related1		All Other	Investments Subtotal
Balance, December 31, 2024	$	(72,206)	(178,057)	(250,263)	(86,582)	(336,845)


OCI before reclassifications	18,793		87,789	106,582	—	106,582
Amounts reclassified from AOCI	(1,198)		(559)	(1,757)	1,378	(379)
Net current period OCI	17,595		87,230	104,825	1,378	106,203
Balance, June 30, 2025	$	(54,611)	(90,827)	(145,438)	(85,204)	(230,642)

1Represents change in unrealized gains (losses) on securities with credit loss recognized in earnings.

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The reclassifications out of AOCI were as follows:


	Quarter ended June 30,			Six Months ended June 30,			Affected Line Item in the Unaudited Consolidated Statements of Income
($ in thousands)	2025		2024	2025		2024
Net realized (gains) losses on disposals and intent-to-sell AFS securities
Net realized (gains) losses	$	(434)	43	$	(708)	(35)	Net realized and unrealized investment gains (losses)
Tax (benefit) expense	91		(10)	149		7	Total federal income tax expense (benefit)
Net of taxes	(343)		33	(559)		(28)	Net income (loss)
Credit loss related
Credit loss (benefit) expense	(887)		1,233	(1,516)		3,883	Net realized and unrealized investment gains (losses)
Tax (benefit) expense	186		(258)	318		(815)	Total federal income tax expense (benefit)
Net of taxes	(701)		975	(1,198)		3,068	Net income (loss)

Defined benefit pension and post-retirement life plans
Net actuarial loss	200		223	401		445	Loss and loss expense incurred
Net actuarial loss	673		744	1,344		1,489	Other insurance expenses
Total	873		967	1,745		1,934	Income (loss) before federal income tax
Tax (benefit) expense	(184)		(203)	(367)		(406)	Total federal income tax expense (benefit)
Net of taxes	689		764	1,378		1,528	Net income (loss)
Total reclassifications for the period	$	(355)	1,772	$	(379)	4,568	Net income (loss)

NOTE 12. Indebtedness

The table below provides a summary of our outstanding debt at June 30, 2025, and December 31, 2024:


Outstanding Debt	Issuance Date	Maturity Date	Interest Rate		Original Amount	2025		Carry Value
($ in thousands)						Unamortized Issuance Costs	Debt Discount	June 30, 2025	December 31, 2024
Long-term
FHLBI	12/16/2016	12/16/2026	3.03	%	60,000	—	—	60,000	60,000
Senior Notes	11/16/2004	11/15/2034	7.25	%	50,000	92	67	49,841	49,831
Senior Notes	2/20/2025	4/15/2035	5.90	%	400,000	3,871	86	396,043	—
Senior Notes	11/3/2005	11/1/2035	6.70	%	100,000	187	397	99,416	99,391
Senior Notes	3/1/2019	3/1/2049	5.375	%	300,000	2,112	5,318	292,570	292,434

Finance lease obligations								4,879	6,282

Total long-term debt						6,262	5,868	902,749	507,938

Short-Term Debt Activity

On June 30, 2025, the Parent entered into a Credit Agreement (the "Line of Credit") with the lenders named therein (the "Lenders") and Wells Fargo Bank, National Association, as administrative agent. Under the Line of Credit, the Lenders have agreed to provide the Parent with a $100 million revolving credit facility that can be increased to $200 million with the Lenders' consent. The Line of Credit will mature on June 30, 2028, and has a variable interest rate based on the Parent’s debt ratings. The Parent, as borrower, was a party to a credit agreement dated November 7, 2022, for a $50 million revolving credit facility, which could be increased to $125 million with the consent of the lenders (the "Prior Credit Agreement"). The Prior Credit Agreement was scheduled to mature on November 7, 2025. The Parent terminated the Prior Credit Agreement in conjunction with entering into the Line of Credit. The termination of the Prior Credit Agreement did not result in any penalties to the Parent. There were no borrowings under the Line of Credit or the Prior Credit Agreement during Six Months 2025.

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Our Line of Credit contains representations, warranties, and covenants that are customary for credit facilities of this type, including, without limitation, financial covenants under which we are obligated to maintain a minimum consolidated net worth, a maximum ratio of consolidated debt to total capitalization, and covenants limiting our ability to: (i) merge or liquidate; (ii) incur debt or liens; (iii) dispose of assets; (iv) make investments and acquisitions; and (v) engage in transactions with affiliates.

The table below outlines information regarding certain covenants in the Line of Credit:


	Required as of		Actual as of
	June 30, 2025		June 30, 2025
Consolidated net worth1	Not less than	$2.3 billion	$3.6 billion
Debt to total capitalization ratio1	Not to exceed	35%	20.0%

1Calculated in accordance with the Line of Credit.

In addition to the above requirements, the Line of Credit contains a cross-default provision that provides that the Line of Credit will be in default if we fail to comply with any condition, covenant, or agreement (including payment of principal and interest when due on any debt with an aggregate principal amount of at least $30 million) that causes or permits the acceleration of principal. The Line of Credit also limits borrowings from the FHLBI and the FHLBNY to 10% of the respective member company's admitted assets for the previous year.

Long-Term Debt Activity

In the first quarter of 2025, we issued $400 million of 5.90% Senior Notes due 2035 at a discount of $0.1 million, resulting in $395.9 million of net proceeds after debt issuance costs of approximately $4.1 million. The 5.90% Senior Notes will pay interest on April 15 and October 15 of each year, beginning on October 15, 2025. The proceeds from this debt issuance are being used for general corporate purposes, including supporting organic growth.

For additional information on our indebtedness and debt covenants, see Note 11. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

NOTE 13. Equity

On December 2, 2020, we announced that our Board of Directors authorized a $100 million share repurchase program, with no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular common stock amount. The program grants management discretion to determine the timing and amount of any share repurchases under the authorization based on market conditions and other considerations. In Six Months 2025, we repurchased 233,611 shares of our common stock under the program for $19.4 million, including commissions. All repurchases were completed in the first quarter of 2025, and we had $56.1 million of remaining program capacity as of June 30, 2025.

NOTE 14. Earnings per Common Share

The following table presents the calculations of earnings per common share ("EPS") on a basic and diluted basis:


	Quarter ended June 30,			Six Months ended June 30,
(in thousands, except per share amounts)	2025		2024	2025		2024
Net income (loss) available to common stockholders:	$	83,643	(65,619)	$	191,239	14,599

Weighted average common shares outstanding:
Weighted average common shares outstanding - basic	60,844		60,897	60,855		60,862
Effect of dilutive securities - stock compensation plans	439		—	421		382
Weighted average common shares outstanding - diluted	61,283		60,897	61,276		61,244

EPS:
Basic	$	1.37	(1.08)	$	3.14	0.24
Diluted	1.36		(1.08)	3.12		0.24

NOTE 15. Litigation

As of June 30, 2025, we do not believe we are involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

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In the ordinary course of conducting business, we are parties in various legal actions. Most are claims litigation involving our ten insurance subsidiaries (collectively referred to as "Insurance Subsidiaries") as (i) liability insurers defending or providing indemnity for third-party claims brought against our customers, (ii) insurers defending first-party coverage claims brought against them, or (iii) liability insurers seeking declaratory judgment on our insurance coverage obligations. We account for such activity by establishing unpaid loss and loss expense reserves. Considering potential losses and defense costs reserves, we expect that any potential ultimate liability for ordinary course claims litigation will not be material to our consolidated financial condition, results of operations, or cash flows.

From time to time, our Insurance Subsidiaries are named as defendants in other legal actions, some asserting claims for substantial amounts. Plaintiffs may style these actions as class actions and seek judicial certification of a state or national class for allegations involving our business practices, such as improper medical provider reimbursement under workers compensation and personal and commercial automobile insurance policies or improper reimbursement for automobile parts. Similarly, our Insurance Subsidiaries can be named defendants in individual actions seeking extra-contractual damages, punitive damages, or penalties, often alleging bad faith in handling insurance claims. We believe we have valid defenses to these allegations and account for such activity by establishing unpaid loss and loss expense reserves. Considering estimated losses and defense costs reserves, we expect that any potential ultimate liability for these other legal actions will not be material to our consolidated financial condition. Litigation outcomes are inherently unpredictable and the amounts sought in certain actions are large or indeterminate. Adverse outcomes could have a material adverse effect on our consolidated results of operations or cash flows in the quarterly or annual period in which they occur.

NOTE 16. Subsequent Events

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") became law. The legislation extends and modifies multiple tax provisions, some affecting our taxes in current and future years. By rule, we must reflect tax changes in the enactment period, which was July 2025. Accordingly, we are currently analyzing the Act's impact, including provisions that allow 100% bonus depreciation and full expensing of domestic research and development expenses.

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” defined in the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve uncertainties and known and unknown risks and other factors that may cause actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. In some cases, forward-looking statements include the words "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "attribute," "confident," "strong," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely," "continue," or comparable terms. Our forward-looking statements are only predictions; we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason except as may be required by law.

We discuss the factors that could cause our actual results to differ materially from our projections, forecasts, or estimates in forward-looking statements in Item 1A. "Risk Factors." in Part II. "Other Information" of this Form 10-Q. These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge at any time. We cannot predict these new risk factors, their impact on our businesses, or the extent to which one or any combination of factors may cause actual results to differ materially from any forward-looking statements. Given these risks, uncertainties, and assumptions, the forward-looking events we discuss might not occur.

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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 more details 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, 2024 ("2024 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 2024 Annual Report filed with the United States ("U.S.") Securities and Exchange Commission.

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

•Critical Accounting Policies and Estimates;

•Financial Highlights of Results for the second quarters ended June 30, 2025 ("Second Quarter 2025") and June 30, 2024 ("Second Quarter 2024"); and the six-month periods ended June 30, 2025 ("Six Months 2025") and June 30, 2024 ("Six Months 2024")

•Results of Operations and Related Information by Segment;

•Federal Income Taxes;

•Liquidity and Capital Resources; and

•Ratings.

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. Such estimates and judgments affect the reported amounts in the consolidated financial statements. As outlined in our 2024 Annual Report, those estimates and judgments most critical to the preparation of the consolidated financial statements involved the following: (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 make them subject to change as facts and circumstances develop. If we applied different estimates and judgments, the financial statements might have reported materially different amounts. For additional information regarding our critical accounting policies and estimates, refer to pages 38 through 45 of our 2024 Annual Report.

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Financial Highlights of Results for Second Quarter and Six Months 2025 and Second Quarter and Six Months 20241


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ and shares in thousands, except per share amounts)	2025			2024			2025			2024
Financial Data:
Revenues	$	1,326,745		1,196,005	11	%	$	2,611,931		2,360,964	11	%
After-tax net investment income	101,421			86,262	18		197,042			171,902	15
After-tax underwriting income (loss)	(1,914)			(137,208)	(99)		34,139			(122,174)	(128)
Net income (loss) before federal income tax	108,905			(80,098)	(236)		247,791			22,468	1,003
Net income (loss)	85,943			(63,319)	(236)		195,839			19,199	920
Net income (loss) available to common stockholders	83,643			(65,619)	(227)		191,239			14,599	1,210

Key Metrics:
Combined ratio	100.2		%	116.1	(15.9)	pts	98.2		%	107.3	(9.1)	pts
Invested assets per dollar of common stockholders' equity	$	3.33		3.31	1	%	$	3.33		3.31	1	%
Annualized after-tax yield on investment portfolio	3.9		%	3.9	—	pts	3.9		%	3.9	—	pts
Return on common equity ("ROE")	10.7			(9.5)	20.2		12.5			1.1	11.4
Net premiums written ("NPW") to statutory surplus	$	1.45		1.64	(12)	%	1.45			1.64	(12)	%

Per Common Share Amounts:
Diluted net income (loss) per share	$	1.36		(1.08)	(226)	%	$	3.12		0.24	1,200	%
Book value per share	52.09			44.74	16		52.09			44.74	16
Dividends declared per share to common stockholders	0.38			0.35	9		0.76			0.70	9

Non-GAAP Information:
Non-GAAP operating income (loss)2	$	80,348		(66,644)	(221)	%	$	187,762		14,866	1,163	%
Non-GAAP operating income (loss) per diluted common share2	1.31			(1.10)	(219)		3.06			0.24	1,175
Non-GAAP operating ROE2	10.3		%	(9.6)	19.9	pts	12.3		%	1.1	11.2	pts
Adjusted book value per common share2	$	54.48		49.67	10	%	$	54.48		49.67	10	%

1Refer to the Glossary of Terms attached to our 2024 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)	2025		2024	2025		2024
Net income (loss) available to common stockholders	$	83,643	(65,619)	$	191,239	14,599


Net realized and unrealized investment (gains) losses included in net income (loss), before tax	(4,172)		(1,297)	(4,401)		338

Tax on reconciling items	877		272	924		(71)
Non-GAAP operating income (loss)	$	80,348	(66,644)	$	187,762	$	14,866


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,
	2025		2024	2025		2024
Net income (loss) available to common stockholders per diluted common share	$	1.36	(1.08)	$	3.12	0.24


Net realized and unrealized investment (gains) losses included in net income (loss), before tax	(0.07)		(0.02)	(0.07)		—

Tax on reconciling items	0.02		—	0.01		—
Non-GAAP operating income (loss) per diluted common share	$	1.31	(1.10)	$	3.06	0.24

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Reconciliation of ROE to non-GAAP operating ROE	Quarter ended June 30,			Six Months ended June 30,
	2025		2024	2025		2024
ROE	10.7	%	(9.5)	12.5	%	1.1


Net realized and unrealized investment (gains) losses included in net income (loss), before tax	(0.5)		(0.2)	(0.3)		—

Tax on reconciling items	0.1		0.1	0.1		—
Non-GAAP operating ROE	10.3	%	(9.6)	12.3	%	1.1


Reconciliation of book value per common share to adjusted book value per common share	Quarter ended June 30,			Six Months ended June 30,
	2025		2024	2025		2024
Book value per common share	$	52.09	44.74	$	52.09	44.74
Total unrealized investment (gains) losses included in accumulated other comprehensive income (loss), before tax	3.03		6.25	3.03		6.25
Tax on reconciling items	(0.64)		(1.32)	(0.64)		(1.32)
Adjusted book value per common share	$	54.48	49.67	$	54.48	49.67

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
	2025		2024		2025		2024
Standard Commercial Lines Segment	(2.6)	%	(18.4)	15.8	0.4	%	(8.6)	9.0
Standard Personal Lines Segment	0.9		(2.2)	3.1	0.5		(1.4)	1.9
E&S Lines Segment	1.5		0.7	0.8	1.3		1.2	0.1
Total insurance operations	(0.2)		(19.9)	19.7	2.2		(8.8)	11.0

Net investment income earned	13.0		12.5	0.5	12.9		12.5	0.4
Net realized and unrealized investment gains (losses)	0.4		0.1	0.3	0.2		—	0.2
Total investments segment	13.4		12.6	0.8	13.1		12.5	0.6

Other	(2.5)		(2.2)	(0.3)	(2.8)		(2.6)	(0.2)

ROE	10.7		(9.5)	20.2	12.5		1.1	11.4
Net realized and unrealized investment (gains) losses, after tax	(0.4)		(0.1)	(0.3)	(0.2)		—	(0.2)
Non-GAAP operating ROE	10.3		(9.6)	19.9	12.3		1.1	11.2

In Second Quarter 2025, we delivered an ROE of 10.7% and a non-GAAP operating ROE of 10.3%, driven by strong investment income, which was 18% higher compared to Second Quarter 2024. ROE improved 20.2 points and non-GAAP operating ROE improved by 19.9 points in Second Quarter 2025 compared to Second Quarter 2024. Our overall combined ratio of 100.2% for Second Quarter 2025, which was 15.9 points better than the 116.1% in Second Quarter 2024, drove the higher ROE contributions from each insurance segment. Underwriting results were impacted by unfavorable prior year casualty reserve development, with $45 million in Second Quarter 2025 compared to $176 million in Second Quarter 2024. Higher paid loss emergence, which we largely attribute to the continued impacts of social inflation, drove the unfavorable development in both years.

In Six Months 2025, our ROE was 12.5% and our non-GAAP operating ROE was 12.3%, exceeding our 12% target. The improvement from Six Months 2024 was driven by after-tax underwriting income of $34.1 million this year compared to an underwriting loss of $122.2 million last year, resulting in an 11.0-point higher ROE. All three insurance segments contributed to the higher ROE. Consistent with Second Quarter 2024, the underwriting loss in Six Months 2024 was primarily attributable to unfavorable prior year casualty reserve development of $211 million, and to a lesser extent, an increase in current year loss costs.

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Outlook

The insurance industry faces significant uncertainty around the macroeconomic environment, including financial market performance, international trade including the ultimate impact of tariffs, and elevated and uncertain loss trends driven by social inflation. Despite this challenging environment, we delivered a 12.3% operating ROE in Six Months 2025 and remain focused on executing our strategy to manage risk while driving long-term, profitable growth by:

•Achieving renewal pure price increases above expected loss trend. We continue to price new and renewal business incorporating our latest view of loss trends and profitability relative to our long-term combined ratio target of 95%. In Six Months 2025, overall renewal pure pricing across our three insurance segments was 10.1%, up 1.5 points from a year ago.

•Deploying granular underwriting refinements. In sectors and jurisdictions where market pricing does not align with our view of rate need, we are taking targeted underwriting actions, including (i) revising underwriting guidelines, (ii) tightening coverage offerings, and (iii) reducing writings.

•Seeking to diversify our insurance segments’ mix of business over the long term. Our relatively higher-than-peer casualty premium mix has benefited our results when property lines have been challenged, and our historical catastrophe losses are lower than the industry average. For the same reason, the current social inflationary environment impacts us differently than our peers.

We believe it is prudent to prioritize improving underwriting margins, which will temper NPW growth in the current environment. NPW grew 5% in Second Quarter 2025 compared to Second Quarter 2024, reflecting our disciplined underwriting and pricing strategy in a competitive market. Policy retention declined modestly as we executed these strategies in a granular fashion. We will maintain a balanced approach and make investments to support future growth. As we position ourselves for the future, we have several strategies to profitably grow market share:

•In our existing footprint, we are focused on growing with existing partners and strategically appointing new agency locations. During Six Months 2025, we added sixty agency locations. In full-year 2024, we had a net increase of two hundred agency locations.

•Careful and deliberate geographic expansion continues to provide growth opportunities. Since 2017, we have added thirteen states to our Standard Commercial Lines footprint, with five last year. In 2024, these thirteen states produced $350 million in premium, which represented approximately 8% of total NPW and approximately 1% marginal total premium growth. We expect to write new business in Kansas by the end of 2025, and in Montana and Wyoming by the end of 2026.

•Technology investments are critical to ensure efficiency and scale. We are actively developing and executing artificial intelligence use cases to enhance underwriting scalability and claims outcomes. We have also made considerable progress modernizing our policy acquisition and claims systems. For example, system enhancements in our E&S Lines segment have created significant operational efficiency, with the segment’s premium production up significantly with limited headcount growth.

After contemplating Six Months 2025 results, our full-year 2025 guidance is as follows:

•A GAAP combined ratio between 97% and 98%, up 1 point from prior guidance of 96% to 97%, including net catastrophe losses of 6 points and the impact of prior year casualty reserve development reported through Six Months 2025. Our combined ratio estimate assumes no additional prior year casualty reserve development and no further change in loss cost estimates. We do not make assumptions about future reserve development as we book our best estimate each quarter;

•After-tax net investment income of $415 million, up from prior guidance of $405 million;

•An overall effective tax rate of approximately 21.5%; and

•Weighted average shares of 61.5 million on a fully diluted basis, including the shares repurchased in Six Months 2025 and assuming no additional repurchases under our existing share repurchase authorization.

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Results of Operations and Related Information by Segment

Insurance Operations

The following table provides quantitative information for analyzing the combined ratio:


All Lines	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Insurance Operations Results:
NPW	$	1,288,629		1,226,101	5	%	$	2,529,072		2,382,722	6	%
Net premiums earned (“NPE”)	1,188,057			1,080,231	10		2,346,814			2,131,175	10
Less:
Loss and loss expense incurred	823,898			925,548	(11)		1,570,223			1,629,840	(4)
Net underwriting expenses incurred	365,431			327,310	12		731,243			651,677	12
Dividends to policyholders	1,151			1,054	9		2,134			4,308	(50)
Underwriting income (loss)	$	(2,423)		(173,681)	(99)	%	$	43,214		(154,650)	(128)	%
Combined Ratios:
Loss and loss expense ratio	69.3		%	85.7	(16.4)	pts	66.9		%	76.5	(9.6)	pts
Underwriting expense ratio	30.8			30.3	0.5		31.2			30.6	0.6
Dividends to policyholders ratio	0.1			0.1	—		0.1			0.2	(0.1)
Combined ratio	100.2			116.1	(15.9)		98.2			107.3	(9.1)

NPW grew 5% in Second Quarter 2025 and 6% in Six Months 2025 compared to the same prior-year periods, driven by renewal pure price increases that were partially offset by a modest decrease in policy count and lower new business. In addition to the below, NPW also benefited from exposure growth on renewal policies.


	Quarter ended June 30,				Six Months ended June 30,
($ in millions)	2025			2024	2025			2024
Direct new business premiums	$	248.1		267.4	$	499.4		528.2
Renewal pure price increases	9.9		%	9.1	10.1		%	8.6

NPE grew 10% in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods, reflecting NPW growth over the last 12 months.

Loss and Loss Expenses

The following table provides quantitative information for analyzing loss and loss expense incurred:


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Loss and Loss Expense Incurred:
(Favorable) unfavorable prior year casualty reserve development	$	45,000		176,000	(74)	%	$	50,000		211,000	(76)	%
Current year casualty loss costs	525,727			473,526	11		1,044,999			916,404	14
Net catastrophe losses	79,932			90,534	(12)		123,289			145,776	(15)
Non-catastrophe property loss and loss expenses	173,239			185,488	(7)		351,935			356,660	(1)
Total loss and loss expense incurred	823,898			925,548	(11)		1,570,223			1,629,840	(4)

Impact on Loss and Loss Expense Ratio:
(Favorable) unfavorable prior year casualty reserve development	3.8		%	16.3	(12.5)	pts	2.1		%	9.9	(7.8)	pts
Current year casualty loss costs	44.2			43.8	0.4		44.5			43.1	1.4
Net catastrophe losses	6.7			8.4	(1.7)		5.3			6.8	(1.5)
Non-catastrophe property loss and loss expenses	14.6			17.2	(2.6)		15.0			16.7	(1.7)
Total impact on loss and loss expense ratio	69.3			85.7	(16.4)		66.9			76.5	(9.6)

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Prior Year Casualty Reserve Development and Current Year Casualty Loss Costs

Details of prior year casualty reserve development by line of business follow:


(Favorable)/Unfavorable Prior Year Casualty Reserve Development	Quarter ended June 30,				Six Months ended June 30,
($ in millions)	2025			2024	2025			2024
General liability	$	20.0		166.0	$	20.0		216.0
Commercial automobile	25.0			10.0	25.0			10.0
Workers compensation	—			—	—			(15.0)


Total Standard Commercial Lines	45.0			176.0	45.0			211.0

Homeowners	—			—	—			(5.0)
Personal automobile	—			—	5.0			5.0
Total Standard Personal Lines	—			—	5.0			—

E&S	—			—	—			—

Total (favorable) unfavorable prior year casualty reserve development	$	45.0		176.0	$	50.0		211.0

(Favorable) unfavorable impact on loss ratio	3.8		pts	16.3	2.1		pts	9.9

Paid loss severities in recent prior accident years continued to show higher-than-expected emergence, leading us to record unfavorable prior year casualty reserve development in Second Quarter 2025 of (i) $25 million in our commercial automobile line of business primarily driven by accident years 2022 through 2024, and (ii) $20.0 million in our general liability line of business primarily driven by accident years 2022 and 2023.

The unfavorable prior year casualty reserve development in Second Quarter 2024 and Six Months 2024 was primarily driven by our general liability line of business that experienced increased severities in accident years 2020 through 2023.

The reduction in the prior year casualty reserve development was partially offset by higher current year loss costs in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods, driven by elevated severity trend assumptions attributable to social inflation on our general liability and E&S casualty lines of business.

For additional qualitative discussion on prior year casualty reserve development and current year casualty loss costs, refer to the insurance segment sections below.

Property Losses

Net catastrophe and non-catastrophe property losses reduced the loss and loss expense ratio by 4.3 points in Second Quarter 2025 and 3.2 points in Six Months 2025 compared to the same prior-year periods. The net catastrophe loss and loss expense ratio was 1.7 points lower in Second Quarter 2025 and 1.5 points lower in Six Months 2025 compared to the same prior-year periods, as fewer storms impacted our footprint. The non-catastrophe property loss and loss expense ratio was 2.6 points lower in Second Quarter 2025 and 1.7 points lower in Six Months 2025 compared to the same prior-year periods, reflecting (i) the earned impact of higher renewal pure price increases in 2025, (ii) lower claim frequencies, and (iii) normal variability from period to period of non-catastrophe property losses.

For additional qualitative discussion on non-catastrophe property loss and loss expenses, refer to the insurance segment sections below.

Underwriting Expenses

The underwriting expense ratio increased 0.5 points in Second Quarter 2025 and 0.6 points in Six Months 2025 compared to the same prior-year periods, primarily due to higher profit-based compensation to our distribution partners and employees, reflecting comparatively improved results.

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Standard Commercial Lines Segment


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Insurance Segments Results:
NPW	$	1,018,004		963,129	6	%	$	2,021,229		1,894,806	7	%
NPE	937,635			853,493	10		1,849,845			1,687,603	10
Less:
Loss and loss expense incurred	666,766			747,954	(11)		1,248,432			1,303,787	(4)
Net underwriting expenses incurred	295,862			265,366	11		592,505			530,008	12
Dividends to policyholders	1,151			1,054	9		2,134			4,308	(50)
Underwriting income (loss)	(26,144)			(160,881)	(84)		$	6,774		(150,500)	(105)
Combined Ratios:
Loss and loss expense ratio	71.1		%	87.6	(16.5)	pts	67.5		%	77.2	(9.7)	pts
Underwriting expense ratio	31.6			31.1	0.5		32.0			31.4	0.6
Dividends to policyholders ratio	0.1			0.1	—		0.1			0.3	(0.2)
Combined ratio	102.8			118.8	(16.0)		99.6			108.9	(9.3)

NPW and NPE growth in Second Quarter 2025 and Six Months 2025, compared to the same prior-year periods, primarily reflected renewal pure price increases and strong exposure growth on renewal policies, partially offset by lower new business and lower retention.


	Quarter ended June 30,					Six Months ended June 30,
($ in millions)	2025			2024	2025				2024
Direct new business premiums	$	158.2		168.4		$	330.3			340.4
Retention	83		%	85		83		%		85
Renewal pure price increases	8.9			7.9		9.0				7.8

Loss and Loss Expenses

The following table provides quantitative information for analyzing loss and loss expense incurred:


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Loss and Loss Expense Incurred:
(Favorable) unfavorable prior year casualty reserve development	$	45,000		176,000	(74)	%	$	45,000		211,000	(79)	%
Current year casualty loss costs	439,002			396,591	11		872,065			763,888	14
Net catastrophe losses	50,881			50,858	—		70,692			89,353	(21)
Non-catastrophe property loss and loss expenses	131,883			124,505	6		260,675			239,546	9
Total loss and loss expense incurred	666,766			747,954	(11)		1,248,432			1,303,787	(4)

Impact on Loss and Loss Expense Ratio:
(Favorable) unfavorable prior year casualty reserve development	4.8		%	20.6	(15.8)	pts	2.4		%	12.5	(10.1)	pts
Current year casualty loss costs	46.8			46.4	0.4		47.2			45.2	2.0
Net catastrophe losses	5.4			6.0	(0.6)		3.8			5.3	(1.5)
Non-catastrophe property loss and loss expenses	14.1			14.6	(0.5)		14.1			14.2	(0.1)
Total impact on loss and loss expense ratio	71.1			87.6	(16.5)		67.5			77.2	(9.7)

Prior Year Casualty Reserve Development and Current Year Casualty Loss Costs

The details of the prior year casualty reserve development by line of business were as follows:


(Favorable)/Unfavorable Prior Year Casualty Reserve Development	Quarter ended June 30,			Six Months ended June 30,
($ in millions)	2025		2024	2025		2024
General liability	$	20.0	166.0	$	20.0	216.0
Commercial automobile	25.0		10.0	25.0		10.0
Workers compensation	—		—	—		(15.0)


Total Standard Commercial Lines	45.0		176.0	45.0		211.0

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The reduction in unfavorable prior year reserve development in Second Quarter 2025 and Six Months 2025 was partially offset by higher current year casualty loss costs. The increase in current year casualty loss costs in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods was primarily driven by higher loss trend expectations and increased claim severities, which we attribute to the continued impacts of social inflation. Prior-year severities developed adversely over the course of 2024 and impacted our view of current year loss costs for 2025, resulting in higher current year casualty loss costs this year compared to last.

Refer to the line of business sections below for qualitative discussion on the significant drivers of unfavorable prior year casualty reserve development and current year casualty loss costs.

Property Losses

Net catastrophe and non-catastrophe property losses reduced the loss and loss expense ratio by an aggregate 1.1 points in Second Quarter 2025 and 1.6 points in Six Months 2025 compared to the same prior-year periods. Net catastrophe losses were 0.6 points lower in Second Quarter 2025 and 1.5 points lower in Six Months 2025 compared to the same periods last year, driven by lower frequency of wind and winter storm events. Non-catastrophe property losses were 0.5 points lower in Second Quarter 2025 and 0.1 points lower in Six Months 2025 compared to the same periods last year, driven by the factors described in the "Insurance Operations" section above.

Underwriting Expenses

The underwriting expense ratio increased 0.5 points in Second Quarter 2025 and 0.6 points Six Months 2025 compared to the same prior-year periods. These increases were primarily due to higher profit-based compensation to our distribution partners and employees, reflecting comparatively improved results.

Information about our most significant Standard Commercial Lines of business follows:


General Liability
	Quarter ended June 30,				Change % or Points1		Six Months ended June 30,				Change % or Points1
($ in thousands)	2025			2024			2025			2024
NPW	$	341,641		319,955	7	%	$	675,537		627,399	8	%
Direct new business	44,655			50,293	n/a		98,319			100,522	n/a
Retention	83		%	86	n/a		83		%	86	n/a
Renewal pure price increases	11.9			7.6	n/a		12.0			7.0	n/a
NPE	$	305,843		280,097	9	%	$	600,530		553,512	8	%
Underwriting income (loss)	(31,295)			(166,109)	(81)		(47,208)			(195,550)	(76)
Combined ratio	110.2		%	159.3	(49.1)	pts	107.9		%	135.3	(27.4)	pts
% of total Standard Commercial Lines NPW	34			33			33			33

1n/a: not applicable.

NPW grew 7% in Second Quarter 2025 and 8% in Six Months 2025 compared to the same prior-year periods, benefiting from renewal pure price increases and renewal exposure growth.

The combined ratio decreased 49.1 points in Second Quarter 2025 and 27.4 points in Six Months 2025 compared to the same prior-year periods and included the following:


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Loss and Loss Expense Incurred:
(Favorable) unfavorable prior year casualty reserve development	$	20,000		166,000	(88)	%	$	20,000		216,000	(91)	%
Current year casualty loss costs	220,610			193,986	14		434,284			359,341	21
Total loss and loss expense incurred	240,610			359,986	(33)		454,284			575,341	(21)

Impact on Loss and Loss Expense Ratio:
(Favorable) unfavorable prior year casualty reserve development	6.5		%	59.3	(52.8)	pts	3.3		%	39.0	(35.7)	pts
Current year casualty loss costs	72.2			69.2	3.0		72.4			64.9	7.5
Total impact on loss and loss expense ratio	78.7			128.5	(49.8)		75.7			103.9	(28.2)

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We recorded $20 million of unfavorable prior year casualty reserve development in Second Quarter 2025 and Six Months 2025, compared to $166 million and $216 million in Second Quarter 2024 and Six Months 2024, respectively. While less this year, we attribute the unfavorable development to the same social inflationary factors that drove reported development in Second Quarter 2024 and Six Months 2024. Specifically, the development in Second Quarter 2025 was primarily driven by increased severities in accident years 2022 and 2023 and the development in Second Quarter 2024 and Six Months 2024 was driven by increased severities in accident years 2023 and prior.

The general liability line of business has experienced a long-term historical trend of meaningful severity increases, partially offset by claim frequency decreases. Prior-year severities developed adversely, which have impacted our view of more recent accident years in 2024 and 2025. We attribute the increased severities to elevated social inflation, which we view as an industry dynamic characterized by higher claimant propensity for attorney representation and litigation, longer settlement times, and higher settlement values. Certain jurisdictions with expanded liability theories and higher damage awards pose increased challenges. We are closely monitoring these jurisdictions and the broader trends across our business.

Partially offsetting the decrease in unfavorable prior year casualty reserve development was a 3.0-point increase in current year casualty loss costs in Second Quarter 2025 and a 7.5-point increase in Six Months 2025 compared to the same prior-year periods, driven by higher social inflation-related severities primarily in accident years 2022 and 2023 than was observed and responded to throughout 2024. These actions produced full-year 2024 casualty loss costs of 67.0%, compared with 69.2% in Second Quarter 2024 and 64.9% in Six Months 2024. The 2025 ratio reflects the increased losses recognized in the 2024 accident year and elevated loss trend expectations.

We believe that social inflation and elevated loss trends continue to support an elevated near-term pricing environment. In response, we have a heightened focus on prudent underwriting and appropriate pricing. Our renewal pure price increase in this line of business was 11.9% in Second Quarter 2025, in line with 12.0% from last quarter and up from 10.6% for the fourth quarter of 2024. In sectors and jurisdictions where market pricing does not align with our view of rate need, we are taking targeted underwriting actions including (i) revising underwriting guidelines, (ii) tightening coverage offerings, and (iii) reducing writings.

The underwriting expense ratio increased 0.7 points in Second Quarter 2025 and 1.0 points in Six Months 2025 compared to the same prior-year periods, as discussed in the "Total Standard Commercial Lines" section above.


Commercial Automobile
	Quarter ended June 30,				Change % or Points1		Six Months ended June 30,				Change % or Points1
($ in thousands)	2025			2024			2025			2024
NPW	$	312,966		297,293	5	%	$	625,620		582,894	7	%
Direct new business	41,996			45,253	n/a		87,866			93,048	n/a
Retention	83		%	86	n/a		84		%	86	n/a
Renewal pure price increases	10.4			10.8	n/a		10.5			10.6	n/a
NPE	$	288,759		260,652	11	%	$	572,344		512,372	12	%
Underwriting income (loss)	(8,425)			(1,196)	604		(781)			(934)	16
Combined ratio	102.9		%	100.5	2.4	pts	100.1		%	100.2	(0.1)	pts
% of total Standard Commercial Lines NPW	31			31			31			31

1n/a: not applicable.

NPW grew 5% in Second Quarter 2025 and 7% in Six Months 2025 compared to the same prior-year periods, primarily benefiting from renewal pure price increases and retention, which was lower this year compared to last.

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The combined ratio increased 2.4 points in Second Quarter 2025 and decreased 0.1 in Six Months 2025 compared to the same prior-year periods, and included the following:


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Loss and Loss Expense Incurred:
(Favorable) unfavorable prior year casualty reserve development	$	25,000		10,000	150	%	$	25,000		10,000	150	%
Current year casualty loss costs	141,819			133,584	6		286,558			263,162	9
Net catastrophe losses	4,134			2,626	57		5,611			4,045	39
Non-catastrophe property loss and loss expenses	40,697			39,122	4		83,245			83,459	—
Total loss and loss expense incurred	211,650			185,332	14		400,414			360,666	11

Impact on Loss and Loss Expense Ratio:
(Favorable) unfavorable prior year casualty reserve development	8.7		%	3.8	4.9	pts	4.4		%	2.0	2.4	pts
Current year casualty loss costs	49.1			51.4	(2.3)		50.0			51.3	(1.3)
Net catastrophe losses	1.4			1.0	0.4		1.0			0.8	0.2
Non-catastrophe property loss and loss expenses	14.1			15.0	(0.9)		14.5			16.3	(1.8)
Total impact on loss and loss expense ratio	73.3			71.2	2.1		69.9			70.4	(0.5)

We recorded $25 million of unfavorable prior year casualty reserve development in Second Quarter 2025 and Six Months 2025 due to increased severities primarily in accident years 2022 through 2024. The unfavorable prior year casualty reserve development in Second Quarter 2024 and Six Months 2024 was primarily due to increased severities in accident year 2023. Current year casualty loss costs were lower in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods, driven by the mix of property and liability coverages within this line of business.

Non-catastrophe property loss and loss expenses decreased 0.9 points in Second Quarter 2025 and 1.8 points in Six Months 2025 compared to the same prior-year periods, primarily due to (i) the earned impact of higher renewal pure price increases and (ii) period-to-period variability of non-catastrophe property losses.


Commercial Property1
	Quarter ended June 30,				Change % or Points2		Six Months ended June 30,				Change % or Points2
($ in thousands)	2025			2024			2025			2024
NPW	$	207,930		195,440	6	%	$	404,184		369,952	9	%
Direct new business	43,137			40,756	n/a		84,553			79,296	n/a
Retention	81		%	84	n/a		82		%	84	n/a
Renewal pure price increases	7.8			9.8	n/a		8.1			10.3	n/a
NPE	$	191,027		168,511	13	%	$	377,557		330,064	14	%
Underwriting income (loss)	7,441			(3,029)	(346)		37,453			6,538	(473)
Combined ratio	96.1		%	101.8	(5.7)	pts	90.1		%	98.0	(7.9)	pts
% of total Standard Commercial Lines NPW	20			20			20			20

1includes Inland Marine.

2n/a: not applicable.

NPW grew 6% in Second Quarter 2025 and 9% in Six Months 2025 compared to the same prior-year periods, primarily benefiting from renewal pure price increases and exposure growth on renewal policies.

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The combined ratio decreased 5.7 points in Second Quarter 2025 and 7.9 points in Six Months 2025 compared to the same prior-year periods and included the following:


	Second Quarter 2025				Second Quarter 2024
($ in thousands)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred	Impact on Combined Ratio	Change in Ratio
Net catastrophe losses	$	33,938	17.8	pts	41,523	24.6	(6.8)	pts
Non-catastrophe property loss and loss expenses	83,204		43.6		71,904	42.7	0.9
Total	$	117,142	61.4		113,427	67.3	(5.9)

	Six Months 2025				Six Months 2024
($ in thousands)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred	Impact on Combined Ratio	Change in Ratio
Net catastrophe losses	$	50,300	13.3	pts	74,387	22.5	(9.2)	pts
Non-catastrophe property loss and loss expenses	159,778		42.3		134,294	40.7	1.6
Total	$	210,078	55.6		208,681	63.2	(7.6)

While non-catastrophe property losses were slightly higher, net catastrophe losses were lower in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods, as discussed in the "Standard Commercial Lines Segment" section above.


Workers Compensation
	Quarter ended June 30,				Change % or Points1		Six Months ended June 30,				Change % or Points1
($ in thousands)	2025			2024			2025			2024
NPW	$	83,003		84,850	(2)	%	$	169,149		183,633	(8)	%
Direct new business	12,103			14,222	n/a		25,837			32,706	n/a
Retention	83		%	85	n/a		84		%	85	n/a
Renewal pure price increases (decreases)	(4.3)			(2.9)	n/a		(3.7)			(2.8)	n/a
NPE	$	82,024		82,316	—	%	$	161,060		170,093	(5)	%
Underwriting income	(2,900)			3,869	(175)		(7,578)			22,062	(134)
Combined ratio	103.5		%	95.3	8.2	pts	104.7		%	87.0	17.7	pts
% of total Standard Commercial Lines NPW	8			9			8			10

1n/a: not applicable.

NPW decreased 2% in Second Quarter 2025 and 8% in Six Months 2025 compared to the same prior-year periods, primarily due to decreases in renewal pure price and direct new business.

The combined ratio increased 8.2 points in Second Quarter 2025 and 17.7 points in Six Months 2025 compared to the same prior-year periods and included the following:


	Second Quarter 2025				Second Quarter 2024
($ in thousands)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio	Change in Ratio
(Favorable) unfavorable prior year casualty reserve development	$	—	—	pts	—		—	—	pts
Current year casualty loss costs	63,284		77.1		57,189		69.5	7.6
Total	$	63,284	77.1		$	57,189	69.5	7.6

	Six Months 2025				Six Months 2024
($ in thousands)	Loss and Loss Expense Incurred		Impact on Combined Ratio		Loss and Loss Expense Incurred		Impact on Combined Ratio	Change in Ratio
(Favorable) unfavorable prior year casualty reserve development	$	—	—	pts	(15,000)		(8.8)	8.8	pts
Current year casualty loss costs	124,827		77.5		118,003		69.3	8.2
Total	$	124,827	77.5		$	103,003	60.5	17.0

There was no prior year casualty reserve development in Second Quarter 2025 and Six Months 2025. The favorable prior year casualty reserve development in Six Months 2024 was primarily due to lower loss severities in accident years 2021 and prior.

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The combined ratio was also adversely impacted by an increase in current year casualty loss costs of 7.6 points in Second Quarter 2025 and 8.2 points in Six Months 2025, primarily driven by negative rate changes combined with positive loss trends. These rate level reductions are driven by continued decreases in workers compensation rating bureau loss costs, which form the basis for our filed rating plans, and heavily influence marketplace pricing for this line of business.

Standard Personal Lines Segment


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Insurance Segments Results:
NPW	$	110,456		116,149	(5)	%	$	197,969		216,053	(8)	%
NPE	102,377			106,421	(4)		206,032			210,267	(2)
Less:
Loss and loss expense incurred	69,977			101,440	(31)		146,646			185,784	(21)
Net underwriting expenses incurred	23,850			24,282	(2)		48,799			49,119	(1)
Underwriting income (loss)	$	8,550		(19,301)	(144)		$	10,587		(24,636)	143
Combined Ratios:
Loss and loss expense ratio	68.3		%	95.3	(27.0)	pts	71.2		%	88.3	(17.1)	pts
Underwriting expense ratio	23.3			22.8	0.5		23.7			23.4	0.3
Combined ratio	91.6			118.1	(26.5)		94.9			111.7	(16.8)

NPW decreased 5% in Second Quarter 2025 and 8% in Six Months 2025 compared to the same prior-year periods, driven primarily by direct new business reductions. New business decreased 41% in Second Quarter 2025 and 50% in Six Months 2025 compared to the same prior-year periods. New policy counts decreased 54% in Second Quarter 2025 and 61% in Six Months 2025 compared to the same prior-year periods, as we focused on growth in states where our rate levels are adequate and narrowed our appetite to mass affluent market business. We have also significantly curtailed production, including restricting new business in certain states, like New Jersey, our biggest market, where we believe our filed rates do not support profitability. The following table depicts our reductions in direct new business and retention for the Second Quarter 2025 and Six Months 2025:


	Quarter ended June 30,					Six Months ended June 30,
($ in millions)	2025			2024	2025				2024
Direct new business premiums1	$	12.9		22.0		$	21.8			43.3
Retention	79		%	78		77		%		80
Renewal pure price increases	19.0			20.7		21.3				17.7

1Excludes our Flood direct premiums written, which are 100% ceded to the NFIP and do not impact NPW.

We are seeing profitability improvements in this line of business, as we are obtaining positive results from the actions we took to refine our pricing factors and prioritize rate filings to mitigate inflationary impacts. Our more significant rate increases began to take effect early in 2023 and increased in number and magnitude throughout 2024. We expect 2025 rate changes to remain above loss trends but moderate compared to our 2024 rate increases. Through our actions, we achieved renewal pure price increases of 19.0% in Second Quarter 2025 and 21.3% in Six Months 2025. We are continuing to seek improved homeowners profitability by expanding the use of new policy terms and conditions, including (i) coverage for roofs based on a depreciated value considering the age of the roof rather than full replacement cost and (ii) where allowed by law, mandatory wind/hail deductibles in states exposed to severe convective storms.

The change in NPE in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods resulted from the same impacts to NPW described above.

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Loss and Loss Expenses

The following table provides quantitative information for analyzing loss and loss expense incurred:


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Loss and Loss Expense Incurred:
(Favorable) unfavorable prior year casualty reserve development	$	—		—	n/a	%	$	5,000		—	n/a	%
Current year casualty loss costs	27,115			30,694	(12)		55,183			61,315	(10)
Net catastrophe losses	14,591			25,396	(43)		21,704			37,241	(42)
Non-catastrophe property loss and loss expenses	28,271			45,350	(38)		64,759			87,228	(26)
Total loss and loss expense incurred	69,977			101,440	(31)		146,646			185,784	(21)

Impact on Loss and Loss Expense Ratio:
(Favorable) unfavorable prior year casualty reserve development	—		%	—	—	pts	2.4		%	—	2.4	pts
Current year casualty loss costs	26.4			28.8	(2.4)		26.9			29.1	(2.2)
Net catastrophe losses	14.3			23.9	(9.6)		10.5			17.7	(7.2)
Non-catastrophe property loss and loss expenses	27.6			42.6	(15.0)		31.4			41.5	(10.1)
Total impact on loss and loss expense ratio	68.3			95.3	(27.0)		71.2			88.3	(17.1)

Property Losses

Net catastrophe and non-catastrophe property losses reduced the loss and loss expense ratio by an aggregate 24.6 points in Second Quarter 2025 and 17.3 points in Six Months 2025 compared to the same prior-year periods. Non-catastrophe property loss and loss expense ratios were lower in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods due to (i) the earned impact of higher renewal pure price increases in 2025 and (ii) period-to-period variability of catastrophe and non-catastrophe losses. Net catastrophe losses were lower in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods due to lower frequency and severity of weather-related catastrophe events this year compared to last year.

Prior Year Casualty Reserve Development and Current Year Casualty Loss Costs

Details of the prior year casualty reserve development by line of business follow:


(Favorable)/Unfavorable Prior Year Casualty Reserve Development	Quarter ended June 30,			Six Months ended June 30,
($ in millions)	2025		2024	2025	2024
Homeowners	$	—	—	—	(5.0)
Personal automobile	—		—	5.0	5.0
Total Standard Personal Lines	—		—	5.0	—

Unfavorable prior year casualty reserve development in Six Months 2025 included $5.0 million in personal automobile, primarily driven by increased severities in accident year 2024. In Six Months 2024, prior year casualty reserve development reflected (i) $5.0 million of favorable development in our homeowners line, primarily due to lower loss severities in accident years 2021 and prior, offset by (ii) $5.0 million of unfavorable development on our personal automobile line of business, primarily driven by increased loss severities in accident years 2021 through 2023.

Current year casualty loss costs decreased 2.4 points in Second Quarter 2025 and 2.2 points in Six Months 2025 compared to the same prior-year periods, primarily due to the earned impact of rate increases.

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E&S Lines Segment


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Insurance Segments Results:
NPW	$	160,169		146,823	9	%	$	309,874		271,863	14	%
NPE	148,045			120,317	23		290,937			233,305	25
Less:
Loss and loss expense incurred	87,155			76,154	14		175,145			140,269	25
Net underwriting expenses incurred	45,719			37,662	21		89,939			72,550	24
Underwriting income (loss)	15,171			6,501	133		25,853			20,486	26
Combined Ratios:
Loss and loss expense ratio	58.9		%	63.3	(4.4)	pts	60.2		%	60.1	0.1	pts
Underwriting expense ratio	30.9			31.3	(0.4)		30.9			31.1	(0.2)
Combined ratio	89.8			94.6	(4.8)		91.1			91.2	(0.1)

NPW and NPE growth in Second Quarter 2025 and Six Months 2025 compared to the same prior-year periods included:


	Quarter ended June 30,					Six Months ended June 30,
($ in millions)	2025			2024	2025				2024
Direct new business premiums	$	77.0		77.0		$	147.2			144.5
Retention	65			64		65				64
Renewal pure price increases	9.3		%	6.4		9.0		%		5.9

NPW and NPE growth in Second Quarter 2025 and Six Months 2025 benefited from (i) both property and casualty exposure growth on renewal policies and (ii) higher rates per exposure.

Loss and Loss Expenses

The following table provides quantitative information for analyzing loss and loss expense incurred:


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Loss and Loss Expense Incurred:

Current year casualty loss costs	$	59,610		46,241	29	%	$	117,751		91,201	29	%
Net catastrophe losses	14,460			14,280	1		30,893			19,182	61
Non-catastrophe property loss and loss expenses	13,085			15,633	(16)		26,501			29,886	(11)
Total loss and loss expense incurred	87,155			76,154	14		175,145			140,269	25

Impact on Loss and Loss Expense Ratio:

Current year casualty loss costs	40.3		%	38.4	1.9	pts	40.5		%	39.1	1.4	pts
Net catastrophe losses	9.8			11.9	(2.1)		10.6			8.2	2.4
Non-catastrophe property loss and loss expenses	8.8			13.0	(4.2)		9.1			12.8	(3.7)
Total impact on loss and loss expense ratio	58.9			63.3	(4.4)		60.2			60.1	0.1

The loss and loss expense ratio decreased 4.4 points in Second Quarter 2025 compared to Second Quarter 2024, primarily driven by a 2.1-point decrease in catastrophe losses and a 4.2-point decrease in non-catastrophe property losses. The combined ratio impact of these property losses was influenced by (i) the impact of higher rates per exposure and (ii) normal period-to-period variability associated with property losses. Partially offsetting the lower property losses were higher current year loss costs, primarily driven by increased severities due to social inflation.

The loss and loss expense ratio was flat in Six Months 2025 compared to Six Months 2024 as higher net catastrophe losses and current year loss costs were offset by lower non-catastrophe property losses. Our Six Months 2025 catastrophe losses were impacted by the January 2025 California Palisades Fire, which added 1.4 points to our loss and loss expense ratio.

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Reinsurance

We successfully completed negotiations of our July 1, 2025 excess of loss treaties that cover Standard Commercial Lines, Standard Personal Lines, and E&S Lines.

We renewed the Casualty Excess of Loss Treaty ("Casualty Treaty") with coverage for $87 million in excess of $3 million retention per loss occurrence, increasing our retention by $1 million. The first layer was modified with an increase in net retention from $2 million to $3 million, and we continue to retain a portion of the layer through a 20% co-participation. The 2025 treaty year deposit premium decreased primarily due to the increased retention and co-participation, partially offset by higher projected subject earned premium due to growth in our book of business.

We also renewed the Property Excess of Loss Treaty ("Property Treaty") with the same retention as the expiring treaty, but with a $30 million increase in limit. The treaty now provides coverage for $95 million in excess of a $5 million retention for losses on a per risk basis. The treaty year deposit premium increased modestly, reflecting higher projected subject earned premium due to growth in our book of business and the increased treaty limit.

The following table summarizes the Casualty Treaty and Property Treaty arrangements covering our Insurance Subsidiaries:


Treaty Name	Reinsurance Coverage	Terrorism Coverage
Casualty Treaty (covers all insurance operations)	There are six layers covering $87 million in excess of $3 million. Losses other than terrorism losses are subject to the following: - 80% of $3 million in excess of $3 million layer provides 65 reinstatements, $198 million annual aggregate limit; - 100% of $6 million in excess of $6 million layer provides 14 reinstatements, $90 million annual aggregate limit; - 100% of $9 million in excess of $12 million layer provides three reinstatements, $36 million annual aggregate limit; - 100% of $9 million in excess of $21 million layer provides one reinstatement, $18 million annual aggregate limit; - 100% of $20 million in excess of $30 million layer provides one reinstatement, $40 million annual aggregate limit; and - 100% of $40 million in excess of $50 million layer provides one reinstatement, $80 million annual aggregate limit	All NBCR losses are excluded. All other losses stemming from the acts of terrorism are subject to the following: - 80% of $3 million in excess of $3 million layer with $15 million net annual terrorism aggregate limit; - 100% of $6 million in excess of $6 million layer with $30 million net annual terrorism aggregate limit; - 100% of $9 million in excess of $12 million layer with $27 million net annual terrorism aggregate limit; - 100% of $9 million in excess of $21 million layer with $18 million net annual terrorism aggregate limit; - 100% of $20 million in excess of $30 million layer with $40 million net annual terrorism aggregate limit; and - 100% of $40 million in excess of $50 million layer with $80 million net annual terrorism aggregate limit.
Property Treaty (covers all insurance operations)	There are three layers covering 100% of $95 million in excess of $5 million. Losses other than Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA") certified losses are subject to the following reinstatements and annual aggregate limits: - $5 million in excess of $5 million layer provides 15 reinstatements, $80 million in aggregate limits; - $20 million in excess of $10 million layer provides four reinstatements, $100 million in aggregate limits; and - $70 million in excess of $30 million layer provides one reinstatement, $140 million in aggregate limits.	All nuclear, biological, chemical, and radioactive ("NBCR") losses are excluded regardless of whether or not they are certified under the TRIPRA. For non-NBCR losses, the treaty distinguishes between acts committed on behalf of foreign persons or foreign interests ("Foreign Terrorism") and those that are not. The treaty provides annual aggregate limits for Foreign Terrorism (other than NBCR) acts of $15 million for the first layer, $60 million for the second layer, and $70 million for the third layer. Non-Foreign Terrorism losses (other than NBCR) are covered to the same extent as non-terrorism losses.

Investments

Our Investments segment's objectives are to maximize the economic value of our investment portfolio by achieving stable, risk-adjusted after-tax net investment income and generate long-term growth in book value per share, considering prevailing market conditions, our enterprise risk tolerances, and other risk implications. We aim to accomplish this by:

•Maximizing the portfolio's overall total return by investing (i) the premiums from our insurance operations, (ii) amounts generated through our capital management strategies, including debt and equity security issuances, and (iii) profits of our business, and

•Maintaining (i) a well-diversified portfolio across issuers, sectors, and asset classes and (ii) a high credit quality fixed income securities portfolio with a duration and maturity profile at an acceptable risk level that provides ample liquidity.

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The effective duration of our fixed income and short-term investments was 4.2 years as of June 30, 2025. We monitor and manage the effective duration to maximize yield while managing interest rate risk at an acceptable level. We buy and sell investments with the intent of maximizing investment returns in the current market environment, while balancing capital preservation and ensuring adequate liquidity to support our insurance business.

Our fixed income and short-term investments represented 92% of invested assets at June 30, 2025 and December 31, 2024. These investments had (i) a weighted average credit rating of "A+" as of both June 30, 2025 and December 31, 2024, and (ii) investment grade holdings representing 96% of the total fixed income and short-term investment portfolio at June 30, 2025, and 97% at December 31, 2024.

For further details on the composition, credit quality, and various risks to which our portfolio is subject, see Item 7A. "Quantitative and Qualitative Disclosures About Market Risk." of our 2024 Annual Report.


Total Invested Assets
($ in thousands)	June 30, 2025		December 31, 2024	Change
Total invested assets	$	10,553,552	9,651,297	9	%
Invested assets per dollar of common stockholders' equity	3.33		3.31	1

Components of unrealized gains (losses) – before tax:
Fixed income securities	(184,118)		(316,796)	(42)	%
Equity securities	6,806		2,116	222
Net unrealized gains (losses) – before tax	(177,312)		(314,680)	(44)
Components of unrealized gains (losses) – after tax:
Fixed income securities	(145,453)		(250,269)	(42)
Equity securities	5,377		1,671	222
Net unrealized gains (losses) – after tax	(140,076)		(248,598)	(44)

Invested assets increased $902.3 million at June 30, 2025, compared to December 31, 2024, primarily reflecting (i) net proceeds from the issuance of our 5.9% Senior Notes in the first quarter of 2025, (ii) our active investment of operating cash flows, which were 18% of NPW in Six Months 2025, and (iii) a $137.4 million reduction in pre-tax net unrealized losses in our fixed income and equity securities portfolios from lower interest rates and strong performance of U.S. equities during Six Months 2025. For additional information about our 5.9% Senior Notes, see Note 12. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

Net Investment Income

Net investment income earned components were as follows:


	Quarter ended June 30,				Change % or Points		Six Months ended June 30,				Change % or Points
($ in thousands)	2025			2024			2025			2024
Fixed income securities	$	115,733		93,935	23	%	$	220,815		188,037	17	%
Commercial mortgage loans ("CMLs")	3,761			3,145	20		7,376			5,939	24
Equity securities	4,908			1,877	161		8,475			6,785	25
Short-term investments	5,267			4,680	13		11,500			8,199	40
Alternative investments	4,004			10,517	(62)		11,083			17,398	(36)
Other investments	163			118	38		394			381	3
Investment expenses	(5,868)			(5,630)	4		(10,984)			(10,248)	7
Net investment income earned – before tax	127,968			108,642	18		248,659			216,491	15
Net investment income tax expense	(26,547)			(22,380)	19		(51,617)			(44,589)	16
Net investment income earned – after tax	$	101,421		86,262	18		$	197,042		171,902	15
Effective tax rate	20.7		%	20.6	0.1	pts	20.8		%	20.6	0.2	pts
Annualized after-tax yield on fixed income investments	4.2			3.9	0.3		4.1			3.9	0.2
Annualized after-tax yield on investment portfolio	3.9			3.9	—		3.9			3.9	—

After-tax net investment income earned increased 18% in Second Quarter 2025 and 15% in Six Months 2025 compared to the same prior-year periods, primarily driven by active portfolio management, operating cash flow deployment, and net proceeds from the issuance of our 5.9% Senior Notes in the first quarter of 2025. For additional information about our 5.9% Senior Notes, see Note 12. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

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Realized and Unrealized Gains and Losses

When evaluating securities for sale, our general philosophy is to reduce our exposure to securities and sectors based on economic evaluations of whether (i) the fundamentals for that security or sector have deteriorated or (ii) the timing is appropriate to trade opportunistically for other securities with better economic-return characteristics. Net realized and unrealized gains and losses for the indicated periods were as follows:


	Quarter ended June 30,			Change %		Six Months ended June 30,			Change %
($ in thousands)	2025		2024			2025		2024
Net realized gains (losses) on disposals	$	(240)	3,136	(108)	%	$	(896)	3,306	(127)	%
Net unrealized gains (losses) on equity securities	3,640		(93)	(4,014)		4,690		599	683
Net credit loss benefit (expense) on fixed income securities, AFS	887		(1,233)	(172)		1,516		(3,883)	(139)

Net credit loss benefit (expense) on CMLs	(115)		(32)	259		(150)		136	(210)
Losses on securities for which we have the intent to sell	—		(481)	(100)		(759)		(496)	53
Total net realized and unrealized investment gains (losses)	$	4,172	1,297	222		$	4,401	(338)	(1,402)

Federal Income Taxes

The following table provides information about federal income taxes and reconciles federal income tax at the corporate rate to the effective tax rate:


	Quarter ended June 30,				Six Months ended June 30,
($ in thousands)	2025			2024	2025			2024
Tax at statutory rate	$	22,870		(16,821)	$	52,036		4,718
Tax-advantaged interest	(275)			(354)	(500)			(756)
Dividends received deduction	(53)			(79)	(103)			(117)
Executive compensation	251			634	1,425			1,957
Stock-based compensation	8			(15)	(487)			(1,454)
Other	161			(144)	(419)			(1,079)
Federal income tax expense (benefit)	$	22,962		(16,779)	$	51,952		3,269
Income before federal income tax, less preferred stock dividends	$	106,605		(82,398)	$	243,191		17,868
Effective tax rate	21.5		%	20.4	21.4		%	18.3

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") became law. The legislation extends and modifies multiple tax provisions, some affecting current and future years. By rule, we must reflect tax changes in the enactment period, which was July 2025. Accordingly, we are analyzing the Act's impact, including provisions that allow 100% bonus depreciation and full expensing of domestic research and development expenses.

Liquidity and Capital Resources

Capital resources and liquidity reflect our ability to generate cash flows from business operations, borrow funds at competitive rates, and raise new capital to meet our operating and growth needs.

Liquidity

We manage liquidity by generating sufficient cash flows to meet our business operations' short-term and long-term cash requirements. We adjust our liquidity requirements based on economic conditions, market conditions, and future cash flow commitments, as discussed further below.

Sources of Liquidity

The Parent's sources of cash historically have consisted of dividends from the Insurance Subsidiaries, the Parent's investment portfolio, borrowings under third-party lines of credit, intercompany revolving demand loan agreements with certain Insurance Subsidiaries, and the issuance of equity (common or preferred) and debt securities. We continue to monitor these sources, considering our short-term and long-term liquidity and capital preservation strategies.

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The Parent's cash and components of its investment portfolio were as follows:


($ in thousands)	June 30, 2025		December 31, 2024
Fixed income securities	$	314,050	268,486
Equity securities	58,511		53,248
Short-term investments	145,681		62,223
Alternative investments	20,157		18,443
Cash	60		91
Total investments and cash	$	538,459	402,491

Short-term investments have historically been maintained in "AAA" rated money market funds and fixed income securities are comprised of high-quality, liquid government and corporate securities.

The amount and composition of the Parent's investment portfolio may change over time based on various factors, including the amount and availability of dividends from our Insurance Subsidiaries, investment income, expenses, other Parent cash needs, such as dividends payable to stockholders, asset allocation investment decisions, inorganic growth opportunities, debt retirement, and share repurchases. Our target is for the Parent to maintain liquid investments of at least twice its expected annual net cash outflow needs.

Insurance Subsidiary Dividends

The Insurance Subsidiaries generate liquidity through insurance float, created by collecting premiums and earning investment income before paying claims. Given the long payment patterns of certain claims, the float period can extend over many years. Our investment portfolio consists of securities with maturity dates that continually provide a source of cash flow for claims payments in the ordinary course of business. To protect our Insurance Subsidiaries' capital, we purchase reinsurance coverage for significantly large claims or catastrophes that may occur.

Our Insurance Subsidiaries may pay dividends to the Parent company. The Insurance Subsidiaries did not declare or pay cash dividends to the Parent in Six Months 2025. As of December 31, 2024, our allowable ordinary maximum dividend is $290 million for 2025. All Insurance Subsidiary dividends to the Parent are (i) subject to the approval and/or review of its domiciliary state insurance regulator and (ii) generally payable only from earned statutory surplus reported in its annual statements as of the preceding December 31. Although domiciliary state insurance regulators have historically approved dividends, there is no assurance they will approve future Insurance Subsidiary dividends.

New Jersey corporate law also limits the maximum amount of dividends the Parent can pay our stockholders if either (i) the Parent would be unable to pay its debts as they become due in the usual course of business or (ii) the Parent’s total assets would be less than its total liabilities. The Parent’s ability to pay dividends to stockholders is also impacted by (i) covenants in its credit agreement that obligate it, among other things, to maintain a minimum consolidated net worth and a maximum ratio of consolidated debt to total capitalization and (ii) the terms of our preferred stock that prohibit dividends from being declared or paid on our common stock if dividends are not declared and paid, or made payable, on all outstanding preferred stock for the latest completed dividend period.

For additional information regarding dividend restrictions and financial covenants, where applicable, see Note 11. "Indebtedness," Note 17. "Equity," and Note 22. "Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

Line of Credit

On June 30, 2025, the Parent entered into a Credit Agreement with the lenders named therein (the "Lenders") and Wells Fargo Bank, National Association, as administrative agent ("Line of Credit"). Under the Line of Credit, the Lenders have agreed to provide the Parent with a $100 million revolving credit facility that can be increased to $200 million with the Lenders' consent. The Line of Credit will mature on June 30, 2028, and has a variable interest rate based on the Parent’s debt ratings. This agreement replaced a prior credit agreement that the Parent terminated in conjunction with entering into the Line of Credit. No borrowings were made under either credit facility in Six Months 2025. For additional information regarding the Line of Credit and corresponding representations, warranties, and covenants, see Note 12. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

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Four Insurance Subsidiaries are members of Federal Home Loan Bank ("FHLB") branches, as shown in the following table. Membership requires the ownership of branch stock and includes the right to access liquidity. All Federal Home Loan Bank of Indianapolis ("FHLBI") and Federal Home Loan Bank of New York ("FHLBNY") borrowings are required to be secured by investments pledged as collateral. For additional information regarding collateral outstanding, refer to Note 4. "Investments" in Item 1. "Financial Statements." of this Form 10-Q.


Branch			Insurance Subsidiary Member
FHLBI			Selective Insurance Company of South Carolina1 Selective Insurance Company of the Southeast1
FHLBNY			Selective Insurance Company of America Selective Insurance Company of New York ("SICNY")

1These subsidiaries are jointly referred to as the "Indiana Subsidiaries" because they are domiciled in Indiana.

The Line of Credit permits aggregate borrowings from the FHLBI and the FHLBNY up to 10% of the respective member company’s admitted assets for the previous year. SICNY is domiciled in New York, which limits its FHLBNY borrowings to the lesser of 5% of admitted assets for the most recently completed fiscal quarter or 10% of the previous year-end's admitted assets. As of June 30, 2025, we had remaining capacity of $610.0 million for FHLB borrowings, with a $25.0 million additional stock purchase requirement to allow the member companies to borrow their remaining capacity amounts.

Short-term Borrowings

We made no short-term borrowings from FHLB branches during Six Months 2025.

Intercompany Loan Agreements

The Parent has lending agreements with the Indiana Subsidiaries, approved by the Indiana Department of Insurance, that provide the Parent with additional intercompany liquidity. Like the Line of Credit, these lending agreements limit the Parent’s borrowings from the Indiana Subsidiaries to 10% of the admitted assets of the respective Indiana Subsidiary. The outstanding balance on these intercompany loans was $35.0 million as of both June 30, 2025 and December 31, 2024. The remaining capacity under these intercompany loan agreements was $171.8 million as of both June 30, 2025 and December 31, 2024. We have other insurance regulator-approved intercompany agreements that facilitate liquidity management between the Parent and the Insurance Subsidiaries to enhance flexibility.

Capital Market Activities

In Six Months 2025, the Parent issued $400 million of 5.90% Senior Notes due 2035, resulting in net proceeds of $395.9 million after a $0.1 million discount and debt issuance costs of approximately $4.1 million. The proceeds from this debt issuance are being used for general corporate purposes, including supporting organic growth with a $200 million capital contribution to the Insurance Subsidiaries in March 2025. The Parent had no private or public stock issuances during Six Months 2025.

During Six Months 2025, we repurchased 233,611 shares of our common stock under our existing share repurchase program for $19.4 million, an $82.87 average price per share, excluding commissions paid. We had $56.1 million of remaining capacity under our share repurchase program as of June 30, 2025. For additional information on the share repurchase program, refer to Note 17. "Equity" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

Uses of Liquidity

The Parent uses the liquidity generated from the sources discussed above to pay dividends to our stockholders, among other things. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board of Directors ("Board") based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. Our Board declared:

• A quarterly cash dividend on common stock of $0.38 per common share that is payable September 2, 2025, to holders of record on August 15, 2025; and

• A quarterly cash dividend of $287.50 per share on our 4.60% Non-Cumulative Preferred Stock, Series B (equivalent to $0.28750 per depositary share) payable on September 15, 2025, to holders of record as of August 29, 2025.

Our ability to meet our interest and principal repayment obligations on our debt and our ability to continue to pay dividends to our stockholders is dependent on (i) liquidity at the Parent, (ii) the ability of the Insurance Subsidiaries to pay dividends, if necessary, and/or (iii) the availability of other sources of liquidity to the Parent. Our next borrowing principal repayment is $60 million to FHLBI due on December 16, 2026.

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Restrictions on the ability of the Insurance Subsidiaries to declare and pay dividends without alternative liquidity options could materially affect our ability to service debt and pay dividends on common and preferred stock.

Capital Resources

Capital resources ensure we can pay policyholder claims, furnish the financial strength to support the business of underwriting insurance risks, and facilitate continued business growth. At June 30, 2025, we had GAAP stockholders' equity of $3.4 billion and statutory surplus of $3.3 billion. With total debt of $902.7 million at June 30, 2025, our debt-to-capital ratio was 21.1%. For additional information on our statutory surplus, see Note 22. "Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

The following table summarizes certain contractual obligations we had at June 30, 2025, that may require us to invest additional amounts into our investment portfolio, which we would fund primarily with operating cash flows.


($ in millions)	Amount of Obligation
Alternative and other investments	$	306.1
Non-publicly traded collateralized loan obligations in our fixed income securities portfolio	188.3
Non-publicly traded common stock within our equity portfolio	21.1
CMLs	20.7
Privately-placed corporate securities	60.1
Total	$	596.3

There is no certainty (i) these additional investments will be required or (ii) about the timing of funding. We expect to have the capacity to fund these commitments through our normal operating and investing activities as they come due.

The following table provides future cash payments on our notes payable as of June 30, 2025, including our 5.9% Senior Notes, details about which are included in the "Capital Markets" discussion above and Note 12. "Indebtedness" in Item 1. "Financial Statements." of this Form 10-Q:


	Payment Due by Period
			Less than 1 year	1-3 years	3-5 years	More than 5 years
($ in millions)	Total
Notes payable	$	910.0	—	60.0	—	850.0
Interest on debt obligation	733.7		55.2	100.9	100.1	477.5
Total	$	1,643.7	55.2	160.9	100.1	1,327.5

Our current and long-term material cash requirements associated with (i) loss and loss expense reserves and (ii) contractual obligations under operating and financing leases for office space and equipment have not materially changed since December 31, 2024. The Insurance Subsidiaries' net loss and loss expense reserves duration was 3.0 years at December 31, 2024.

Our other cash requirements include, without limitation, dividends to stockholders, capital expenditures, and other operating expenses, including commissions to our distribution partners, labor costs, premium taxes, general and administrative expenses, and income taxes.

As of June 30, 2025, and December 31, 2024, we had no (i) material guarantees on behalf of others and trading activities involving non-exchange traded contracts accounted for at fair value, (ii) material transactions with related parties other than those disclosed in Note 18. "Related Party Transactions" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report, and (iii) material relationships with unconsolidated entities or financial partnerships, such as structured finance or special purpose entities, established to facilitate off-balance sheet arrangements or other contractually narrow or limited purposes. Consequently, we are not exposed to any material financing, liquidity, market, or credit risk related to off-balance sheet arrangements.

We continually monitor our cash requirements and the capital resources we maintain at the holding company and Insurance Subsidiary levels. As part of our long-term capital strategy, we strive to maintain capital metrics that support our targeted financial strength relative to the macroeconomic environment. Based on our analysis and market conditions, we may take a variety of actions, including, without limitation, contributing capital to the Insurance Subsidiaries, issuing additional debt and/or equity securities, repurchasing existing debt, repurchasing shares of the Parent’s common stock, and adjusting common stockholders’ dividends.

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Our capital management strategy is intended to protect the interests of the policyholders of the Insurance Subsidiaries and our stockholders and enhance our financial strength and underwriting capacity. We have a solid capital base and high-quality underwriting portfolio, positioning us well to leverage potential market opportunities.

Book value per common share increased 9% to $52.09 as of June 30, 2025, from $47.99 as of December 31, 2024, primarily driven by $3.12 in net income (loss) available to common stockholders per diluted common share and a $1.74 decrease in after-tax net unrealized losses on our fixed income securities portfolio, partially offset by $0.76 in dividends to our common stockholders. A decline in benchmark U.S. Treasury rates primarily drove the decrease in net unrealized losses on our fixed income securities. Our adjusted book value per share, which is book value per share excluding total after-tax unrealized gains or losses on investments included in accumulated other comprehensive income (loss), increased to $54.48 as of June 30, 2025, from $52.10 as of December 31, 2024.

Cash Flows

Net cash provided by operating activities increased to $450.9 million in Six Months 2025, compared to $380.3 million in Six Months 2024, primarily driven by higher levels of cash received for premiums. For more information on our underwriting results, refer to "Insurance Operations" above in this MD&A.

Net cash used in investing activities increased to $799.5 million in Six Months 2025, compared to $333.3 million in Six Months 2024, primarily due to the investment of proceeds from our 5.9% Senior Note issuance in Six Months 2025. These proceeds also drove the $323.8 million in net cash provided by financing activities in Six Months 2025, compared to $49.4 million in net cash used in financing activities in Six Months 2024. Partially offsetting cash proceeds from the 5.9% Senior Notes issuance was cash used for share repurchases.

Ratings

Our ratings are as follows:


Nationally Recognized Statistical Rating Organizations	Financial Strength Rating	Outlook
AM Best Company	A+	Stable
Moody's Investors Services	A2	Stable
Fitch Ratings ("Fitch")	A+	Stable
Standard & Poor's Global Ratings	A	Stable

On May 7, 2025, Fitch reaffirmed our "A+" rating with a "stable" outlook. In taking this rating action, Fitch cited our (i) business profile as having favorable competitive positioning within our core standard lines businesses, driven by strong independent agency relationships and (ii) strong capital position.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There have been no material changes in the information about market risk set forth in our 2024 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), as of the end of the period covered by this report. In performing this evaluation, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework ("COSO Framework") in 2013. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures as of the end of such period are (i) effective in recording, processing, summarizing, and reporting information on a timely basis that we are required to disclose in the reports that we file or submit under the Exchange Act, and (ii) effective in ensuring that information that we are required to disclose in the reports that we file or submit under the Exchange Act is appropriately accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions about required disclosure. No changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) occurred during Second Quarter 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Incidental to our insurance operations, we are routinely engaged in legal proceedings with inherently unpredictable outcomes that could have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. For additional information regarding our legal risks, refer to Note 15. "Litigation" in Item 1. "Financial Statements." of this Form 10-Q and Item 1A. "Risk Factors." below in Part II. "Other Information." As of June 30, 2025, we have no material pending legal proceedings that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

ITEM 1A. RISK FACTORS.

Certain risk factors can significantly impact our business, liquidity, capital resources, results of operations, financial condition, and debt ratings. These risk factors might affect, alter, or change our actions in executing our long-term capital strategy. Examples include, without limitation, contributing capital to any or all of the Insurance Subsidiaries, issuing additional debt and/or equity securities, repurchasing our existing debt and/or equity securities, or increasing or decreasing common stockholders' dividends. We operate in a continually changing business environment, and new risk factors that we cannot predict or assess may emerge at any time. Consequently, we can neither predict such new risk factors nor assess the potential future impact on our business. Except as discussed below, there have been no material changes from the risk factors disclosed in Item 1A. "Risk Factors." in our 2024 Annual Report.

Changes in international trade policy could adversely and materially affect our business, results of operations, financial condition, and growth.

Changes in international trade policies and tariffs by the United States and other countries, particularly large trading partners like Canada, China, and Mexico, could (i) impact our claims severity across multiple lines of business and cause adverse reserve development by increasing costs for materials and parts used in claims involving real property and personal property, including commercial and personal automobiles and (ii) negatively affect our investments' fair value and/or our level of investment income.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The following table provides information regarding our purchases of our common stock in Second Quarter 2025:


Period	Total Number of Shares Purchased1	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs2	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Announced Programs (in millions)2
April 1 – 30, 2025	1,026	$	86.67	—	$	—
May 1 – 31, 2025	1,271	87.87		—	—
June 1 – 30, 2025	672	85.80		—	—
Total	2,969	$	86.99	—	$	—

1Total number of shares purchased includes 2,969 shares purchased from employees to satisfy tax withholding obligations associated with the vesting of their restricted stock units.

2On December 2, 2020, we announced our Board authorized a $100 million share repurchase program with no set expiration or termination date. Our repurchase program does not obligate us to acquire any particular amount of our common stock. Management will determine the timing and amount of any share repurchases under the authorization at its discretion based on market conditions and other considerations.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

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ITEM 5. OTHER INFORMATION.

During the three months ended June 30, 2025, no director or officer of the Company adopted, modified, or terminated any contract, instruction, or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (a "Rule 10b5-1 trading arrangement") or any "non-Rule 10b5-1 trading arrangement" (as defined in Item 408(c) of Regulation S-K).

ITEM 6. EXHIBITS.


Exhibit No.
*31.1						Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.

*31.2						Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002.

**32.1						Certification of Chief Executive Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.

**32.2						Certification of Chief Financial Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002.

**101						The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements.

**104						The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in iXBRL.

* Filed herewith.

** Furnished and not filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SELECTIVE INSURANCE GROUP, INC.

Registrant

Date:

July 25, 2025

By: /s/ John J. Marchioni

John J. Marchioni

Chairman of the Board, President and Chief Executive Officer

(principal executive officer)

Date:

July 25, 2025

By: /s/ Patrick S. Brennan

Patrick S. Brennan

Executive Vice President and Chief Financial Officer

(principal financial officer)