Moody's ups Selective Insurance outlook to positive

Moody's Investors Service said it changed the outlook for the ratings of Selective Insurance Group, Inc. to positive from stable and assigned provisional Baa2 senior unsecured debt, provisional Baa3 senior subordinated and junior subordinated debt and provisional Ba1 preferred stock ratings to the company's universal shelf. The company's senior debt rating is Baa2.

The change in outlook reflects the company's gradual increase in geographic diversification and its strong earnings as a result of underwriting discipline and favorable property and casualty market conditions, the agency said. In addition, Selective Insurance's profitability has benefited from fee-for-service products and improvements in the company's New Jersey personal automobile portfolio.

Moody's said Selective Insurance's ratings reflect a strong regional franchise that benefits from good agency support, tempered by the continued keen competition in its chosen lines of business, its significant geographic concentration with 33% of its business in New Jersey and challenging regulatory and market environments in New York and New Jersey.

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