Selective Insurance (SIGI)

Risks

• We are subject to losses from catastrophic events.
• Our ability to reduce our risk exposure depends on the availability and cost of reinsurance.
• We may be subject to potentially significant losses from acts of terrorism.
• We are exposed to credit risk.
• We depend on distribution partners.
• National and global economic conditions could adversely and materially affect our business, results of operations, financial condition, and growth.
• A downgrade or a potential downgrade in our financial strength or credit ratings could result in a loss of business and could have a material adverse effect on our financial condition and results of operations.
• We have less loss experience data than our larger competitors.
• We are subject to various modeling risks that could have a material adverse impact on our business results.
• Our investments are exposed to credit risk, interest rate fluctuation, and changes in value.
• We have securities tied to LIBOR, which will be eliminated on June 30, 2023.
• We are subject to the risks inherent in investing in private limited partnerships.
• The determination of the amount of credit losses taken on our investments is highly subjective and could materially impact our results of operations or our financial position.
• We are engaged in ordinary routine legal proceedings incidental to our insurance operations that, because litigation outcomes are inherently unpredictable, could impact our reputation and/or have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods.
• We are a holding company, and our ability to declare dividends to our shareholders, pay indebtedness, and enter into affiliate transactions may be limited because our Insurance Subsidiaries are regulated.
• Because we are a New Jersey corporation and an insurance holding company, we may be less attractive to potential acquirers and the value of our common stock could be adversely affected.
• We, our distribution partners, and our vendors are subject to attempted cyber-attacks, other cybersecurity risks, and system availability risk.
• Our long-term strategy to deploy operational leverage is dependent on the success of our risk management strategies, and their failure could have a material adverse effect on our financial condition or results of operations.