Selective Insurance Group, Inc. · NASDAQ:SIGI

Selective Insurance — 2016 RBC Capital Markets Financial Institutions Conference

15 slides from Selective Insurance's conference presentation, March 2016

  1. Slide 1: 2016 RBC Capital Markets Financial Institutions Conference

    Selective Insurance Group, Inc. 2016 RBC Capital Markets Financial Institutions Conference March 2016 Selective Insurance Selective Insurance Group, Group,Inc. Inc.

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements Certain statements in this report, including information incorporated by reference, are “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The PSLRA provides a safe harbor under the Securities Act of 1933

  3. Slide 3: Track Record of Success

    Track Record of Success ► Super-regional P&C carrier with long history of financial strength, superior execution and disciplined growth in these lines of business:  Standard Commercial  Standard Personal  Excess & Surplus ► Sustainable Competitive Advantages:  True franchise value with network o

  4. Slide 4: 2015: Selective's Most Profitable Year

    2015: Selective’s Most Profitable Year Statutory Combined Ratio (Ex-CAT) 98.4% ► Generated 89.4% combined ratio, 97.3% excluding catastrophes 94.8% ► Achieved operating ROE goal of 300 bps above WACC at 11.8% 92.5% ► In 2016, expect to outpace claim inflation through the following actions: 89.4%  R

  5. Slide 5: Sophisticated Pricing Tools

    Sophisticated Pricing Tools Commercial Lines Pricing by Retention Group Point of Renewal Retention 12% 95% Renewal Pure Price 10% 8% 85% 6% 4% 75% 2% 0% 65% Above Average Below Low Very Low Average Average % of Premium 53.0% 26.0% 11.3% 6.3% 3.4% Selective’s pricing tools allow the Company to analyz

  6. Slide 6: Investing in Omni-Channel Experience

    Investing in Omni-Channel Experience ► Game changer in an industry that has been slow to adopt change ► Providing customers with 24-by-7 access to transactional capabilities and information ► Drive increased customer loyalty and retention ► Our ability to drive agency adoption is the franchise value

  7. Slide 7: Financial Highlights 2011 - 2015

    Financial Highlights 2011 - 2015 2011 2012 2013 2014 2015 Statutory NPW Growth 7.0% 12.2% 8.7% 4.1% 9.8% Operating EPS* $0.38 $0.58 $1.65 $2.17 $2.70 Net Income per Share* $0.40 $0.68 $1.87 $2.47 $2.85 Dividend per Share $0.52 $0.52 $0.52 $0.53 $0.57 Book Value per Share* $19.45 $19.77 $20.63 $22.54

  8. Slide 8: Net Operating Cash Flow

    Net Operating Cash Flow ($ in millions) 440 Cash Flow as % of NPW 390 $382 $336 18% 340 19% 290 240 $227 $233 14% 12% 190 140 $123 90 8% 40 2011 2012 2013 2014 2015 Selective Insurance Group, Inc.

  9. Slide 9: Investment Income – After-tax

    Investment Income – After-tax ($ in millions) 120 $111 110 $104 $100 $101 100 $94 90 80 70 60 50 40 2011 2012 2013 2014 2015 Selective Insurance Group, Inc.

  10. Slide 10: Insurance Operations Productivity

    Insurance Operations Productivity ($ in 000s) NPW per Employee Statutory Expense Ratio 1,000 35 $979 $908 $908 34 $842 800 $791 33 $761 32 600 31 400 30 2010 2011* 2012 2013 2014** 2015 *Excludes Excess & Surplus Lines **Expense ratio excludes 0.4 point benefit from self-insured group sale Selective

  11. Slide 11: Standard Commercial Lines Pricing: Renewal Pure Price

    Standard Commercial Lines Pricing Selective CLIPS 7.5% 6.5% 5.5% Renewal Pure Price 4.5% 3.5% 2.5% 1.5% 0.5% -0.5% -1.5% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 Industry Source: Towers Watson Commercial Lines Insurance Prici

  12. Slide 12: Standard Commercial Lines Profitability

    Standard Commercial Lines Profitability % Statutory Combined Ratios 105 103.9 103.0 99.8 100.8 0.5 6.4 5.0 100 98.5 3.3 99.3 97.1 95.9 2.1 99.3 97.5 98.0 1.7 95.5 95.0 95 0.9 96.4 1.2 95.0 95.3 2.7 93.8 92.8 90 89.2 2.2 87.0 85 80 Impact of Catastrophe Losses Combined Ratio excluding CATS *Includes

  13. Slide 13: Standard Commercial Lines Premiums

    Standard Commercial Lines Premiums Strategic Business Unit Diversification 2008 2015 22% Contractors 26% 34% 43% Community & Public Services 16% Manufacturing 18% Mercantile Service 19% 20% Industry Source: Towers Watson Commercial Lines Insurance Pricing Survey Selective Insurance Group, Inc.

  14. Slide 14: Premium by Line of Business

    Premium by Line of Business 2015 Standard Commercial Lines Net Premium Written Workers Compensation 19% General Liability 32% Commercial Property 18% Other 1% Bonds BOP Auto 1% 6% 23% Selective Insurance Group, Inc.

  15. Slide 15: Long-Term Shareholder Value Creation

    Long-Term Shareholder Value Creation $25 $0.57 $0.53 $24.37 $0.52 $22.54 $0.52 $0.52 $20 $0.49 $0.52 $20.63 $0.44 $0.52 $19.45 $19.77 $0.40 $18.82 $18.97 $17.87 $0.52 $17.80 $15 $16.44 $15.81 $10 $5 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Book Value Dividend Note: Book value restat

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