1. It's like a Travelers or Chubb, but also offering personal insurance to individuals.

2. Imagine an Allstate or State Farm, but with a major emphasis on insurance for businesses and specialty risks.

• Property Insurance: Covers the financial consequences of accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss.
• Casualty Insurance: Covers the financial consequences of employee injuries in the course of employment, and bodily injury and/or property damage to a third party.
• Flood Insurance: Provides coverage for damages caused by flooding.

John J. Marchioni
Chairman of the Board, President and Chief Executive Officer

John J. Marchioni joined Selective Insurance in 1998 as a Government Affairs Specialist. He progressed through various leadership roles, including Assistant Vice President in Government Affairs, Vice President, Director of Government Affairs, Vice President and Strategic Business Unit Leader, and Senior Vice President, Director of Personal Lines and Flood. He was promoted to Executive Vice President, Chief Field Operations Officer in 2007 and President and Chief Operating Officer in 2013. He served as President and Chief Executive Officer from February 2020 until May 2022, when he assumed his current role as Chairman of the Board, President and Chief Executive Officer. Prior to joining Selective, he was Vice President of Government Affairs for the Commerce & Industry Association of New Jersey.

Patrick S. Brennan
Executive Vice President, Chief Financial Officer

Patrick S. Brennan was appointed Executive Vice President and Chief Financial Officer of Selective, effective October 1, 2024. Before joining Selective in 2024, he spent 18 years at The Progressive Corporation, where he most recently served for eight years as Treasurer, overseeing treasury, capital strategy, risk management, and investor relations. His earlier career included key positions in the Treasury department at IBM Corporation, focusing on funding and foreign exchange strategy.

John Bresney
Executive Vice President, Chief Information Officer

John Bresney is the Executive Vice President, Chief Information Officer at Selective, responsible for all IT operations. He began his career at Selective as an intern in 1994, advancing through various leadership roles, including Senior Application Development Manager, Assistant Vice President, Enterprise Development Services; Vice President, Infrastructure and Operations; and Vice President, Personal Lines Business Development and Architecture.

Joseph O. Eppers
Executive Vice President, Chief Investment Officer

Joseph O. Eppers is the Executive Vice President, Chief Investment Officer at Selective. He joined the company in 2015, bringing 20 years of professional investment experience. Prior to Selective, he served as a Director at BlackRock within the Financial Institutions Group and was previously Senior Vice President of Investments at Endurance Specialty Holdings Ltd.

Jeffrey F. Kamrowski
Executive Vice President, MUSIC (Mesa Underwriters Specialty Insurance Company)

Jeffrey F. Kamrowski is the Executive Vice President, MUSIC (Mesa Underwriters Specialty Insurance Company), a subsidiary of Selective Insurance Group, Inc. He joined Selective in 1988 as a programming analyst and has gained extensive experience across standard and specialty lines insurance operations, holding various roles in Business Services, Commercial Lines Underwriting, E&S, and Information Technology.

Here are the key risks to Selective Insurance (SIGI):

1. Social Inflation and Reserve Adequacy: Selective Insurance faces significant risk from social inflation, characterized by increased litigation, larger jury awards, and broader definitions of liability, particularly given its high exposure (approximately 45%) to lawsuit-prone insurance lines, including contractor insurance. This trend can lead to higher-than-expected claims payouts and necessitate further reserve strengthening, directly impacting profitability. The company has a recent history of reserve charges affecting its financial performance, including a substantial $75 million charge that contributed to a 13% stock decline after falling short of earnings estimates in Q1 2025. Selective Insurance also reported unfavorable prior-year casualty reserve development in 2024 and 2025.
2. Climate Change and Catastrophic Events: As a provider of property and flood insurance, Selective Insurance is vulnerable to the increasing frequency and severity of natural disasters, such as hurricanes, wildfires, floods, and severe storms. These events strain loss ratios and require insurers to continuously reassess their exposure in high-risk geographies. The unpredictable nature and increasing frequency of such events can materially impact the company's financial results. Furthermore, climate change poses investment risks due to its transition and physical impacts on carbon-intensive sectors within the company's investment portfolio.
3. Intense Competition and Dynamic Market Conditions: Selective Insurance operates in a highly competitive and fragmented property and casualty insurance market. The company faces robust competition from national carriers, super-regional insurers, and emerging digital entrants (insurtechs), which can impact its market share, pricing power, and overall profitability. The industry is also undergoing significant transformation driven by technological advancements like AI and data analytics, evolving customer expectations, and persistent inflationary pressures on loss costs, demanding continuous adaptation and investment to maintain competitiveness.

The rise of direct-to-consumer digital insurance providers and insurtech companies poses a clear emerging threat to Selective Insurance. These new entrants leverage advanced technology, artificial intelligence, and data analytics to offer streamlined online and mobile-app based experiences, often providing faster quotes, personalized policies, and potentially lower prices by bypassing traditional independent agent distribution channels. As Selective Insurance heavily relies on independent retail and wholesale agents, this shift towards digital-first customer acquisition and service models could lead to erosion of market share, particularly in personal lines and smaller commercial segments where customers are increasingly opting for direct digital interactions for their insurance needs.

The addressable markets for Selective Insurance's main products and services in the United States are as follows:

• U.S. Property and Casualty Insurance Market: This market, which encompasses both property and casualty insurance products, was valued at an estimated USD 1.10 trillion in 2025 and is projected to reach USD 1.33 trillion by 2030, growing at a compound annual growth rate (CAGR) of 3.96%.
• U.S. Homeowners' Insurance Market: A significant component of the property insurance sector, the market size for Homeowners' Insurance in the U.S. was approximately USD 175.1 billion in 2025.
• U.S. Flood Insurance Market: The U.S. private residential flood insurance market generated premium revenue of USD 0.5 billion in 2024. More broadly, the U.S. flood insurance market, including both private and federal policies, saw direct premiums written increase to USD 4.1 billion in 2024.

Selective Insurance (SIGI) is expected to drive future revenue growth over the next two to three years through a combination of strategic initiatives across its insurance operations and investment portfolio:

• Disciplined Underwriting and Pricing Actions: The company is focused on strong underwriting and pricing discipline across its Standard Commercial Lines, Standard Personal Lines, and Excess & Surplus (E&S) Lines segments. This includes implementing renewal pure price increases, such as 15.1% in personal lines and 7.8% in E&S lines in Q4 2025, and 8.9% in Standard Commercial Lines in Q3 2025, which are anticipated to contribute to net premiums earned growth.
• Expansion of Net Investment Income: Selective Insurance projects its after-tax net investment income to increase by 10% in 2026, reaching $465 million, driven by the growth in its invested assets. The company's conservative investment portfolio strategy and attractive new purchase yields, such as the 5.8% pretax average new purchase yield in Q3 2025, are expected to provide a durable source of future investment income.
• Geographic Expansion and Market Diversification: The company plans to continue its geographic expansion, with the launch of Standard Commercial Lines business in Kansas in 2025 and anticipated entry into Montana and Wyoming by the end of 2026. Selective is also pursuing potential geographic expansion in Standard Personal Lines and aims to increase market share and diversify its product and distribution capabilities across its E&S and other specialty lines.
• Strategic Technology Investments: Selective Insurance is investing in technology to enhance operational efficiency, improve decision-making, and support scalability. These investments, particularly in the Excess and Surplus segment, are intended to propel top-line growth and overall profitability.

Share Repurchases

• The Board of Directors approved a new $200 million share repurchase program effective October 27, 2025, superseding a prior $100 million authorization.
• In 2025, Selective Insurance Group returned $182 million to common stockholders through regular dividends and opportunistic share repurchases.
• Actual share repurchases amounted to approximately $92 million in 2025, $15.6 million in 2024, $7.9 million in 2023, and $19 million in 2022.

Outbound Investments

• Annual "investing activities - other" for Selective Insurance were approximately $-0.055 billion in 2022, $-0.087 billion in 2023, $-0.065 billion in 2024, and $-0.191 billion for the twelve months ending December 31, 2025.
• The company is committed to strategic investments aimed at fueling growth, innovation, and performance excellence, with a focus on expanding with existing partners and establishing new agency locations.
• Selective Insurance maintains a conservative approach to its investment portfolio and has not made significant changes to its investment strategy.

Capital Expenditures

• Selective Insurance is in the process of relocating many operations to a new leased facility in Short Hills, New Jersey, with the transition expected to occur from mid-2026 through 2029.
• The company prioritizes deploying capital to enhance scale, improve decision-making, and boost operational efficiency, including investments in digital tools and underwriting strategies.