S&P ups Selective Insurance to BBB

S&P said it raised its issuer credit rating and senior unsecured debt ratings on Selective Insurance Group Inc. (SIGI) to BBB from BBB-.

At the same time, the agency upgraded its issuer credit ratings and financial strength ratings on the company's core operating subsidiaries to A from A-.

The outlook is stable.

S&P said Selective has enhanced its competitive position in recent years, with meaningful improvement in its underwriting results and reduced property catastrophe concentration in the mid-Atlantic.

Management's 2011 strategic initiative to improve underwriting performance has proved successful, as consecutive years of improvement in both the combined ratio and return on revenue metrics demonstrate. These results are supported by strategic underwriting actions to address challenged business lines, reduced geographic concentration in catastrophe-prone areas, and strong agency relationships.

Selective's capital adequacy remains redundant at the AA level, the agency explained.

For 2016-2017, S&P expects the company to report a statutory combined ratio (including catastrophe losses) of 94%-96%. It also expects Selective's capital adequacy to remain redundant at the very strong (AA) level.

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