Selective Insurance Group (SIGI) risk factors, FY2025 10-K

Selective Insurance Group's FY2025 10-K, filed Feb 09, 2026, lists 28 risk factors in 5 groups. Against the prior year's 26: 4 new, 2 dropped, 13 substantially reworded.

Open SIGI in Gloom →
Selective Insurance Group's chart, financials and news, free in your browser.Open SIGI in Gloom →
Risk factors listed
285 groups
New this year
4vs 26 last year
Dropped
2since the prior 10-K
Substantially reworded
13of those kept
Section length
8k wordsItem 1A

What the changes say

  • Selective Insurance Group added specific details on cyber reinsurance coverage sub-limits and data disadvantage risks.
  • Regulatory, tariff, and holding company dividend restrictions were also added as distinct risk factors.

What changed since the prior 10-K

New

  • NewRisks Related to our Insurance Operations

    Our cyber-specific policies for commercial lines and personal lines customers are 100% reinsured with highly-rated specialty cyber markets. These solutions allow us to meet our customers' cyber insurance needs while mitigating our underwriting risk as we develop our expertise in the cyber insurance market

    Our cyber-specific policies are 100% reinsured, and commercial property or businessowners' forms feature sub-limits of $25,000 or lower for virus and harmful code coverage.

  • NewRisks Related to our Insurance Operations

    Insurers depend on access to reliable data about their policyholders and loss experience to build complex analytics and predictive models that assess loss costs, expected profitability, reserve adequacy, adverse claim development potential, recovery opportunities, fraudulent activities, and customer buying habits

    We might be at a competitive disadvantage to larger insurers if Congress repeals the McCarran-Ferguson Act, which permits our use of aggregated industry loss data from rating bureaus.

  • NewRisks Related to Evolving Laws, Regulations, and Public Policy Debates

    Changes to laws and regulations can adversely affect our business by increasing our costs, limiting our ability to offer products or services to customers, requiring changes to our business practices, or otherwise making our products and services less attractive

    Tariffs and trade policy shifts can disrupt supply chains, while prolonged government shutdowns causing a lapse in the National Flood Insurance Program would impact Standard Personal Lines results.

  • NewRisks Related to Our Corporate Structure and Governance

    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

    State insurance regulators and credit agreement covenants with Wells Fargo Bank limit our Insurance Subsidiaries' ability to pay dividends and make loans to the Parent company.

Dropped

  • DroppedRisks Related to our Insurance Operations

    We have less loss experience data than our larger competitors

  • DroppedRisks Related to Our Corporate Structure and Governance

    Restrictions on our Insurance Subsidiaries' ability to pay dividends, make loans or advances to the Parent, or enter into

Reworded

  • 85% rewrittenRisks Related to our Insurance Operations

    Cyber Attacks and Incidents

    Minor phrasing update regarding systemic risk in the insurance industry and cyber attack exposure.

  • 46% rewrittenRisks Related to our Insurance Operations

    National and global economic conditions could adversely and materially affect our business, results of operations, financial condition, and growth

    Minor grammatical and wording refinements regarding economic conditions, inflation, and investment fair values.

  • 45% rewrittenRisks Related to our Insurance Operations

    Our ability to reduce our risk exposure depends on the availability and cost of reinsurance

    Added reference to modeling software outputs used to determine reinsurance purchases for catastrophe risks.

  • 40% rewrittenRisks Related to our Insurance Operations

    Markets for insurance products and services are highly competitive and subject to rapid technological advancement, and we may struggle to compete effectively

    Refined language regarding price competition, data sets, and compressed underwriting margins.

    Was: Markets for insurance products and services are highly competitive and subject to rapid technological change, and we may be unable to compete effectively

  • 39% rewrittenRisks Related to our Insurance Operations

    We are exposed to credit risk

    Replaced 'face credit risk' with 'encounter credit risk' and adjusted terminology for reinsurers' retrocession collection issues.

  • 39% rewrittenRisks Related to our Insurance Operations

    We depend on distribution partners

    Updated phrasing regarding overall insurance industry premium production and distribution channel competition.

  • 35% rewrittenRisks Related to Our Investments Segment

    Our investments are exposed to credit risk, interest rate fluctuation, and changes in value

    Added private market volatility and international trade policies and tariffs as potential negative factors for investments.

  • 32% rewrittenRisks Related to Evolving Laws, Regulations, and Public Policy Debates

    While we underwrite risks only in the U.S., international regulatory developments, primarily capital adequacy and risk management requirements in the European Union ("EU"), may influence U.S. regulators as they develop or revise domestic regulatory standards

    Removed the specific example regarding potential federal solvency oversight legislation conflicting with state rate approval.

  • 30% rewrittenRisks Related to our Insurance Operations

    We are subject to various modeling risks that could have a material adverse impact on our business results

  • 28% rewrittenRisks Related to our Insurance Operations

    Our loss and loss expense reserves may not adequately cover actual losses and expenses

  • 27% rewrittenRisks Related to our Insurance Operations

    We are subject to losses from catastrophic events

  • 25% rewrittenRisks Related to Evolving Laws, Regulations, and Public Policy Debates

    Our business is subject to various state, federal, and other laws, rules, policies, and other data use and protection obligations

  • 24% rewrittenRisks Related to Our Investments Segment

    Our investment portfolio is exposed to climate change-related transition and physical investment risks

All 28 risk factors

Headings as the filing states them, in filing order.

Risks Related to our Insurance Operations

  1. 01We are subject to losses from catastrophic events27% rewritten
  2. 02Temperature changes can affect weather patterns and the frequency and/or severity of catastrophes, including hurricanes, severe convective storms, wildfires, and flooding – all of which could increase our catastrophe losses relative to historical levels
  3. 03Cyber Attacks and Incidents85% rewritten
  4. 04Our cyber-specific policies for commercial lines and personal lines customers are 100% reinsured with highly-rated specialty cyber markets. These solutions allow us to meet our customers' cyber insurance needs while mitigating our underwriting risk as we develop our expertise in the cyber insurance marketNew
  5. 05Our loss and loss expense reserves may not adequately cover actual losses and expenses28% rewritten
  6. 06Our ability to reduce our risk exposure depends on the availability and cost of reinsurance45% rewritten
  7. 07We are exposed to credit risk39% rewritten
  8. 08We depend on distribution partners39% rewritten
  9. 09National and global economic conditions could adversely and materially affect our business, results of operations, financial condition, and growth46% rewritten
  10. 10A downgrade or a potential downgrade in our financial strength or credit ratings could result in a loss of business and have a material adverse effect on our financial condition and results of operations
  11. 11Markets for insurance products and services are highly competitive and subject to rapid technological advancement, and we may struggle to compete effectively40% rewritten
  12. 12Insurers depend on access to reliable data about their policyholders and loss experience to build complex analytics and predictive models that assess loss costs, expected profitability, reserve adequacy, adverse claim development potential, recovery opportunities, fraudulent activities, and customer buying habitsNew
  13. 13We are subject to various modeling risks that could have a material adverse impact on our business results30% rewritten

Risks Related to Our Investments Segment

  1. 14Our investments are exposed to credit risk, interest rate fluctuation, and changes in value35% rewritten
  2. 15Our investment portfolio is exposed to climate change-related transition and physical investment risks24% rewritten
  3. 16We are subject to the risks inherent in investing in private limited partnerships
  4. 17Determining the amount of credit losses taken on our investments is highly subjective and could materially impact our results of operations or our financial position

Risks Related to Evolving Laws, Regulations, and Public Policy Debates

  1. 18We are subject to complex and changing laws, regulations, and public policy debates that expose us to regulatory scrutiny, potential liabilities, increased costs, reputational harm, and other adverse effects on our business
  2. 19Changes to laws and regulations can adversely affect our business by increasing our costs, limiting our ability to offer products or services to customers, requiring changes to our business practices, or otherwise making our products and services less attractiveNew
  3. 20While we underwrite risks only in the U.S., international regulatory developments, primarily capital adequacy and risk management requirements in the European Union ("EU"), may influence U.S. regulators as they develop or revise domestic regulatory standards32% rewritten
  4. 21Our business is subject to various state, federal, and other laws, rules, policies, and other data use and protection obligations25% rewritten
  5. 22We are engaged in ordinary, routine legal proceedings incidental to our insurance operations that are inherently unpredictable and 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
  6. 23Some of our legal proceedings may receive media attention due to their perceived newsworthiness and/or their relationship to various broad economic, political, social, and legal developments or trends. Such media stories could negatively impact our reputation

Risks Related to Our Corporate Structure and Governance

  1. 24We 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 regulatedNew
  2. 25Because we are a New Jersey corporation and an insurance holding company, we may be less attractive to potential acquirers, and our common stock's value could be adversely affected
  3. 26These provisions of our Amended and Restated Certificate of Incorporation and New Jersey law could (i) deprive our common shareholders of an opportunity to receive a premium over the prevailing market price in a hostile takeover and (ii) adversely affect the value of our common stock

Risks Related to Our General Operations

  1. 27We, our distribution partners, and vendors are subject to attempted cyber-attacks and other cybersecurity and system availability risks
  2. 28Operational leverage relies 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

Other Selective Insurance Group 10-Ks

  • FY2024 10-K risk factors
    26 risks

    Catastrophic weather and climate change risks threaten underwriting results and increase modeling uncertainty.

    Filed Feb 10, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.