PROGRESS
THROUGH IMPACT
TABLE OF CONTENTS | |
A Message from our CEO | 4 |
About Us | 6 |
Our Footprint / Our Business | 7 |
Awards and Recognition | 8 |
Our Approach to Sustainability | 9 |
Managing Climate Risks | 11 |
Oversight of Climate Change-related Risks | 11 |
Helping Our Customers Mitigate Climate-related Risks | 12 |
Preparing for a Transition to a Clean | 13 |
Energy Future | |
Evaluating Opportunities as Part of | 14 |
Climate Transition | |
Operations | 15 |
Reducing Our Carbon Footprint and | 15 |
Environmental Impact | |
Managing Operational Risk | 17 |
Integrating Sustainability into | 18 |
Investment Oversight | |
Partnering with our Key Stakeholders | 19 |
Customers and Distribution Partners | 19 |
Strong Focus on Tracking and Enhancing | 20 |
Customer Satisfaction and Reducing Complaints |
Safety Management Solutions | 22 |
Proactive Messaging and Increased | 23 |
Customer Preparedness | |
Investments in Providing a Seamless | 25 |
Customer Experience | |
Human Capital | 26 |
A Focus on DE&I Efforts through | 27 |
Hiring, Retention, and Promotion Practices | |
Distribution Partners and Vendors | 31 |
Communities | 32 |
The Selective Insurance Group Foundation | 32 |
Investments in Branchville Location (Headquarters) | 32 |
A Focus on Oversight, Ethics, and Integrity | 33 |
Ethics and Anti-Corruption Policies | 34 |
Sustainability Committee and Governance | 36 |
Appendix | 37 |
EEO-1 Information | 37 |
ABOUT THIS
REPORT
Our third Sustainability Report highlights key initiatives tied to our business strategy that enhance our
sustainability and corporate citizenship. We seek tangible
results for our stakeholders and are committed to long- term progress. We believe that our long-standing strategy
of advancing the interests of our customers, distribution
partners, and employees has generated superior financial performance for our shareholders while supporting
the communities where we live and work. This Report's
Appendix includes Equal Employee Opportunity (EEO- 1) data. Our Sustainability Accounting Standards Board (SASB) report, referencing insurance industry-specific
standards, is on our website at www.selective.com.In 2022, we published our Task Force on Climate-Related Financial Disclosures (TCFD) report, highlighting our
strategy to address climate-related risks and opportunities
- and it is available on our website athttps://www.selective.com/about-selective/corporate-social-responsibility.
This report covers Selective's performance in 2022 unless otherwise explicitly stated.
3
A MESSAGE FROM OUR CHIEF EXECUTIVE OFFICER
Our primary objectives as an insurance organization are to (i) help our
customers put their lives and businesses back together after experiencing a covered loss, (ii) help make our customers and communities safer, and (iii) support economic growth by providing capital that protects against covered
losses and allows businesses to invest confidently intheir operations. Responsible corporate actions have long been part of Selective's history, and I am proud of our recent sustainability initiatives that are aligned with
our business strategy. We have outlined a vision and implemented programs
to address critically important issues, including building a highly engaged team of employees and strengthening the communities in which we live
and operate.
We are (i) integrating sustainability principles into our business and operations and (ii) partnering with many key stakeholders to develop solutions that enhance resilience, well-being, and customer service. These
long-term partnerships should help us continue to generate superior returns for our shareholders.
Integrating sustainability into our business and operations:
As a property and casualty ("P&C") insurance company, Selective covers thousands of individuals and businesses against the financial impact of insured losses, including catastrophic events. For example, climate change increases the unpredictability of weather-related loss frequency and severity, posing a long-term risk to our customers' lives and livelihoods - and our business. We aim to mitigate the impacts of climate change with
(i) prudent oversight and management of catastrophe risk exposure, (ii) providing responsive claims handling, safety management services, and
proactive weather alerts, (iii) preparing for the continuing transition to clean energy, and (iv) reducing our carbon footprint.
4
Partnering with Key Stakeholders
Attracting and retaining talent:
We deliver excellent service to our customers and distribution partners through our skilled and compassionate employees. Building an inclusive culture with employees of diverse backgrounds and perspectives permits us toinnovate and differentiate ourselves in a dynamic and evolving marketplace.
A focus on oversight, ethics, and integrity: Strong oversight, ethics, and integrity are the foundation of our financial and operating success. Our Board of Directors is highly engaged and has the diverse skill sets to monitor our business. Our Board composition reflects our commitment to a culture of innovation and creativity. Our Code of Conduct imparts the strong sense of integrity and purpose we expect from all employees. We are transparent about our employee and management compensation, linking annual and long-termincentive compensation programs to pre-determinedfinancial and operating metrics and strategic initiatives.
Conclusion:
By embedding sustainable initiatives into key aspects of our business, Selective has deliveredsignificant value over time for our shareholders by serving our
internal and external stakeholders. Our consistent and superior financial track
record places us among an exclusive group of high-performing P&C insurance companies. Our 12.4% non-GAAP operating return on equity in 2022 was a significant achievement, given elevated net catastrophe losses, capital market
volatility, and higher loss cost trends driven by elevated inflation and other
factors. In early 2023, we established a 12% non-GAAP operating return on equity target for the year and a 95% long-term combined ratio target. We
understand that our strengths in offering competitive products and services
to our customers and being astable market for our distribution partners depend on being well-capitalized, managing our risk responsibly, maintaining
our strong financial strength ratings, and running an efficient and profitable organization.
We invite you to read our third Sustainability Report - Progress through Impact. It details our efforts to create a corporate environment where people feel empowered to bring about positive, sustainable change.
It also highlights the accomplishments of our employees, who seek to serve our customers, distribution partners, and communities while acting in the long-term interest of our shareholders.
John J. Marchioni
Chairman, President and
Chief Executive Officer
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Disclaimer
Selective Insurance Group Inc. published this content on 07 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 July 2023 18:10:00 UTC.