Selective Insurance Group Inc. has recently released its 10-K report, providing a comprehensive overview of its operations and financial performance for the year. The company, founded in 1926 and headquartered in Branchville, New Jersey, operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. It offers a range of insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents.
In its 10-K report, the company's management's discussion and analysis of financial condition and results of operations provide insights into critical accounting policies and estimates. Selective Insurance Group Inc. has identified the policies and estimates critical to its business operations and understanding of its results of operations, including the reserve for loss and loss expense, investment valuation, and reinsurance.
The company's net loss and loss expense reserves, which include case reserves on reported claims and incurred but not reported (IBNR) reserves, were reported at $6,347.6 million as of December 31, 2025, compared to $5,567.6 million as of December 31, 2024. Selective Insurance Group Inc. conducts quarterly internal reserve reviews using its own loss experience, considering various internal and external factors. An external consulting actuary also performs an independent semiannual reserve review. The company has estimated a range of reasonable reserve estimates for net loss and loss expense of $5,694 million to $6,960 million at December 31, 2025.
In 2025, the company experienced net unfavorable prior year loss development of $77.5 million, compared to net unfavorable development of $285.3 million in 2024 and net unfavorable development of $10.0 million in 2023. The general liability line of business, which represents 46% of the company's total net reserves, experienced unfavorable reserve development of $40.0 million in 2025 due to the impact of social inflation that increased loss severities in accident years 2022 and 2023. The company actively monitors claim patterns and emerging or shifting trends to better understand its rapidly evolving exposure.
Selective Insurance Group Inc.'s 10-K report provides a detailed and transparent analysis of its financial condition, critical accounting policies, and reserve estimates, offering investors and stakeholders valuable insights into the company's operations and risk management practices. The market has reacted to these announcements by moving the company's shares -1.3% to a price of $81.89. If you want to know more, read the company's complete 10-K report here.
