Selective Insurance Sees 3Q Losses From Impairments, Catastrophes

Tue. October 14, 2008; Posted: 01:57 PM

BRANCHVILLE, N.J., Oct 14, 2008 (A. M. Best via COMTEX) -- SIGI | Quote | Chart | News | PowerRating -- Selective Insurance Group is reporting a third-quarter net realized loss on its investment portfolio of about $15 million, after tax, including $23 million other-than-temporary impairments.

The write-downs represent just 1% of the company's investment portfolio but more write-downs may be required, Selective (NASDAQ: SIGI | Quote | Chart | News | PowerRating) said in a statement.

The Branchville, N.J.-based company also said third-quarter investment income will be impacted by lower alternative investment income and a decline in the fair value of Selective's equity trading portfolio, totaling approximately $5 million, after tax.

The loss reflects "general weakness in the financial markets and the significant slowdown in merger and acquisition activity stemming from the current tight credit environment."

Gregory E. Murphy, chief executive officer, said that his company, like all others, is not immune to market turmoil but Selective's "conservative investment strategy" has served it well.

Selective said it estimates catastrophe losses during the third quarter of $8.3 million due to Hurricane Ike's progression from its initial landfall in Texas into the Midwest last month.

Selective will release its third quarter results on Oct. 30, after the market closes.

The afternoon of Oct. 14, shares of Selective Insurance Group stock were selling at $21.00, down about 10.64% from the previous close.

Selective Insurance Group currently has a Best's Financial Strength Rating of A+ (Superior).

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)

For full details on Selective Insurance Gr (SIGI) click here. Selective Insurance Gr (SIGI) has Short Term PowerRatings of 4. Details on Selective Insurance Gr (SIGI) Short Term PowerRatings is available at This Link.

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