SELECTIVE INSURANCE GROUP INC

Previous wording

The terms "Company," "we," "us," and "our" refer to Selective Insurance Group, Inc. (the "Parent") and its subsidiaries, except as expressly indicated or the context otherwise requires. Certain statements in this Quarterly Report on Form 10-Q, including information incorporated by reference, are “forward-looking statements” defined in the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. In some cases, forward-looking statements include the words "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "attribute," "confident," "strong," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely," "continue," or comparable terms. Our forward-looking statements are only predictions; we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason except as required by law.

Current wording

The terms "Company," "we," "us," and "our" refer to Selective Insurance Group, Inc. (the "Parent") and its subsidiaries, except as expressly indicated or the context otherwise requires. Certain statements in this Quarterly Report on Form 10-Q, including information incorporated by reference, are “forward-looking statements” defined in the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve uncertainties and known and unknown risks and other factors that may cause actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. In some cases, forward-looking statements include the words "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "attribute," "confident," "strong," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely," "continue," or comparable terms. Our forward-looking statements are only predictions; we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason except as may be required by law.

Previous wording

We discuss the factors that could cause our actual results to differ materially from our projections, forecasts, or estimates in forward-looking statements in Item 1A. "Risk Factors." in Part II. "Other Information" of this Form 10-Q. These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge at any time. We can neither predict these new risk factors nor assess their impact, if any, on our businesses or the extent to which any factor or combination of factors may cause actual results to differ materially from any forward-looking statements. Given these risks, uncertainties, and assumptions, the forward-looking events we discuss in this report might not occur.

Current wording

We discuss the factors that could cause our actual results to differ materially from our projections, forecasts, or estimates in forward-looking statements in Item 1A. "Risk Factors." in Part II. "Other Information" of this Form 10-Q. These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge at any time. We cannot predict these new risk factors, their impact on our businesses, or the extent to which one or any combination of factors may cause actual results to differ materially from any forward-looking statements. Given these risks, uncertainties, and assumptions, the forward-looking events we discuss might not occur.

Previous wording

We write our Standard Commercial and Standard Personal Lines products and services through nine insurance subsidiaries, some of which participate in the federal government's National Flood Insurance Program's ("NFIP") Write Your Own Program. We write our E&S products through another subsidiary, Mesa Underwriters Specialty Insurance Company, a nationally-authorized non-admitted platform for customers who generally cannot obtain coverage in the standard marketplace. Collectively, we refer to our ten insurance subsidiaries as the "Insurance Subsidiaries."

Current wording

We write our Standard Commercial and Standard Personal Lines products and services through nine of our insurance subsidiaries, some of which participate in the federal government's National Flood Insurance Program's ("NFIP") Write Your Own Program. We write our E&S products through another subsidiary, Mesa Underwriters Specialty Insurance Company, a nationally-authorized non-admitted platform for customers who generally cannot obtain coverage in the standard marketplace. Collectively, we refer to our ten insurance subsidiaries as the "Insurance Subsidiaries."

Previous wording

Our unaudited interim consolidated financial statements include amounts for which we have made informed estimates and judgments for transactions not yet completed. Such estimates and judgments affect the reported amounts in the consolidated financial statements. As outlined in our 2023 Annual Report, those estimates and judgments most critical to the preparation of the consolidated financial statements involved the following: (i) reserve for loss and loss expense; (ii) investment valuation and the allowance for credit losses on available-for-sale ("AFS") fixed income securities; and (iii) reinsurance. These estimates and judgments require our use of assumptions about highly uncertain matters that make them subject to change as facts and circumstances develop. If we applied different estimates and judgments, the financial statements might have reported materially different amounts. For additional information regarding our critical accounting policies and estimates, refer to pages 39 through 47 of our 2023 Annual Report.

Current wording

Our unaudited interim consolidated financial statements include amounts for which we have made informed estimates and judgments for transactions not yet completed. Such estimates and judgments affect the reported amounts in the consolidated financial statements. As outlined in our 2024 Annual Report, those estimates and judgments most critical to the preparation of the consolidated financial statements involved the following: (i) reserve for loss and loss expense; (ii) investment valuation and the allowance for credit losses on available-for-sale ("AFS") fixed income securities; and (iii) reinsurance. These estimates and judgments require our use of assumptions about highly uncertain matters that make them subject to change as facts and circumstances develop. If we applied different estimates and judgments, the financial statements might have reported materially different amounts. For additional information regarding our critical accounting policies and estimates, refer to pages 38 through 45 of our 2024 Annual Report.

Previous wording

Financial Highlights of Results for Third Quarter and Nine Months 2024 and Third Quarter and Nine Months 20231

Current wording

Financial Highlights of Results for First Quarter 2025 and First Quarter 20241

Previous wording

Reconciliations of our GAAP to non-GAAP measures are provided in the tables below:

Current wording

The tables below provide reconciliations of our GAAP to non-GAAP measures:

Previous wording

The components of our ROE and non-GAAP operating ROE are as follows:

Current wording

The following table depicts the components of ROE and non-GAAP operating ROE:

Previous wording

•Weighted average shares on a fully diluted basis of 61.5 million, which assumes no share repurchases we may make under our authorization.

Current wording

•Weighted average shares of 61.5 million on a fully diluted basis, including the common shares repurchased in First Quarter 2025 and assuming no additional repurchases under our existing share repurchase authorization.

Previous wording

Our NPW growth in Third Quarter 2024 and Nine Months 2024 also benefited from stable retention in our Standard Commercial Lines and E&S Lines and exposure growth on renewal policies.

Current wording

The NPW and NPE growth in First Quarter 2025 compared to First Quarter 2024 reflected overall renewal pure price increases and direct new business. In addition, NPW and NPE growth in First Quarter 2025 benefited from stable retention in our Standard Commercial Lines and E&S Lines and exposure growth on renewal policies.

Previous wording

In addition, the loss and loss expense ratio was adversely impacted by an increase in current year casualty loss costs of 0.7 points in Third Quarter 2024 and 1.0 point in Nine Months 2024 compared to the same prior-year periods, primarily due to increased loss trend expectations and higher prior-year severity assumptions related to the impacts of social inflation on our general liability line of business.

Current wording

The reduction in unfavorable prior year reserve development was partially offset by higher current year casualty loss costs. The increase in current year loss costs in First Quarter 2025 compared to First Quarter 2024 was primarily due to increased severities related to social inflation on our general liability and E&S casualty lines of business.

Previous wording

For additional qualitative discussion on prior year casualty reserve development, refer to the insurance segment sections below.

Current wording

For additional qualitative discussion on prior year casualty reserve development and current year casualty loss costs, refer to the insurance segment sections below.

Previous wording

For additional qualitative discussion on prior year casualty reserve development and non-catastrophe property loss and loss expenses, refer to the insurance segment sections below.

Current wording

For additional qualitative discussion on non-catastrophe property loss and loss expenses, refer to the insurance segment sections below.

Previous wording

NPW growth of 8% in Third Quarter 2024 and 11% in Nine Months 2024 compared to the same prior-year periods primarily reflected (i) renewal pure price increases and (ii) strong retention as shown in the table below. In addition, NPW growth benefited from strong exposure growth on renewal policies.

Current wording

NPW and NPE growth in First Quarter 2025 compared to First Quarter 2024 primarily reflected (i) renewal pure price increases, (ii) strong exposure growth on renewal policies, and (iii) strong retention as the following table shows:

Previous wording

Refer to the line of business sections below for a qualitative discussion on the significant drivers of unfavorable prior year casualty reserve development and current year loss costs.

Current wording

Refer to the line of business sections below for qualitative discussion on the significant drivers of unfavorable prior year casualty reserve development and current year casualty loss costs.

Previous wording

The following is a discussion of our most significant Standard Commercial Lines of business:

Current wording

A discussion of our most significant Standard Commercial Lines of business follows:

Previous wording

NPW grew 6% in Third Quarter 2024 and 9% in Nine Months 2024 compared to the same prior-year periods, benefiting from renewal pure price increases, exposure growth on renewal policies, and strong retention.

Current wording

NPW grew 9% in First Quarter 2025 compared to First Quarter 2024, benefiting from renewal pure price increases, exposure growth on renewal policies, and stable retention.

Previous wording

The general liability line of business has experienced a long-term historical trend of meaningful severity increases that have been partially offset by claim frequency decreases. Prior-year severities have developed adversely, previously impacting the pre-pandemic period, but in 2024 they have extended into the more recent accident years. We attribute the increased severities to elevated social inflation, which we view as an industry dynamic characterized by higher claimant propensity for attorney representation and litigation, longer settlement times, and higher settlement values. Certain jurisdictions with expanded liability theories and higher damage awards pose increased challenges. We are closely monitoring these jurisdictions and the broader trends across our business.

Current wording

We did not record any prior year casualty reserve development in First Quarter 2025. The unfavorable prior year casualty reserve development in First Quarter 2024 was primarily due to social inflation, which resulted in higher severities in accident years 2023 and prior. The general liability line of business has experienced a long-term historical trend of meaningful severity increases, partially offset by claim frequency decreases. Prior-year severities developed adversely, which extended into more recent accident years in 2024 after previously impacting the pre-pandemic period. We attribute the increased severities to elevated social inflation, which we view as an industry dynamic characterized by higher claimant propensity for attorney representation and litigation, longer settlement times, and higher settlement values. Certain jurisdictions with expanded liability theories and higher damage awards pose increased challenges. We are closely monitoring these jurisdictions and the broader trends across our business.

Previous wording

We believe that social inflation and elevated loss trends are an industry dynamic, which we expect to lead to a more favorable rate environment in the near term. Given the consistency in our underwriting appetite and risk profile over time, we have focused our actions primarily on prudent underwriting and achieving additional rate. Our renewal pure price increase in this line of business accelerated to 10.2% in Third Quarter 2024, up from 7.6% last quarter, and 6.5% for the first quarter of 2024.

Current wording

We believe that social inflation and elevated loss trends are an industry dynamic, which we expect to continue to support an elevated near-term pricing environment. Given the consistency in our underwriting appetite and risk profile over time, we have focused primarily on prudent underwriting and appropriate pricing. Our renewal pure price increase in this line of business accelerated to 12.0% in First Quarter 2025, up from 10.6% last quarter, and 8.6% for full-year 2024.

Previous wording

NPW grew 11% in Third Quarter 2024 and 15% in Nine Months 2024 compared to the same prior-year periods, primarily benefiting from renewal pure price increases and strong retention. This strong retention and higher direct new business in Nine Months 2024 contributed to a 7% growth of in-force vehicle counts as of September 30, 2024, compared to September 30, 2023.

Current wording

NPW grew 9% in First Quarter 2025 compared to First Quarter 2024, primarily benefiting from renewal pure price increases and stable retention. Stable retention and direct new business contributed to a 1% growth of in-force vehicle counts as of March 31, 2025, compared to March 31, 2024.

Previous wording

NPW grew 12% in Third Quarter 2024 and 14% in Nine Months 2024 compared to the same prior-year periods, primarily benefiting from renewal pure price increases, strong retention, and exposure growth on renewal policies.

Current wording

NPW grew 12% in First Quarter 2025 compared to First Quarter 2024, primarily benefiting from renewal pure price increases, stable retention, and exposure growth on renewal policies.

Previous wording

There was no prior year casualty reserve development in Third Quarter 2024 and Nine Months 2024. The Nine Months 2023 development was primarily due to lower severities in accident years 2021 and prior.

Current wording

There was no prior year casualty reserve development in First Quarter 2025. The favorable prior year casualty reserve development in First Quarter 2024 was primarily due to improved loss severities in accident years 2021 and prior.

Previous wording

1 Excludes our Flood direct premiums written, which is 100% ceded to the NFIP and therefore, has no impact on our NPW.

Current wording

1 Excludes our Flood direct premiums written, which are 100% ceded to the NFIP and do not impact NPW.

Previous wording

We are taking aggressive actions to improve the profitability of this business by continuing to prioritize additional rate filings state-by-state to mitigate inflationary impacts, and further refining our pricing factors. These filed rate increases began to take effect early in 2023 and increased in number and magnitude throughout 2023 and 2024, and we expect them to continue into 2025. We achieved a renewal pure price increase of 22.8% in Third Quarter 2024 and 18.5% in Nine Months 2024, a direct outcome of these actions. In addition, we are seeking to further improve profitability within our homeowners line of business by introducing new policy terms and conditions, including (i) coverage for older roofs based on a schedule of factors rather than replacement cost, and (ii) implementing mandatory wind/hail deductibles in states exposed to severe convective storms, where law permits.

Current wording

We are taking actions to improve the profitability of this business, refine our pricing factors, and prioritize rate filings to mitigate inflationary impacts. Our more significant rate increases began to take effect early in 2023 and increased in number and magnitude through 2024. We expect 2025 rate changes to remain above loss trends but moderate compared to our rate increases in 2024. Directly related to our actions, we achieved a renewal pure price increase of 24.1% in First Quarter 2025. We also are continuing to seek improved homeowners profitability by expanding the use of new policy terms and conditions, including (i) coverage for older roofs based on a schedule of factors rather than replacement cost and (ii) where allowed by law, mandatory wind/hail deductibles in states exposed to severe convective storms.

Previous wording

The change in NPE in Third Quarter 2024 and Nine Months 2024 compared to the same prior-year periods resulted from the same impacts to NPW described above.

Current wording

The change in NPE in First Quarter 2025 compared to First Quarter 2024 resulted from the same impacts to NPW described above.

Previous wording

Details of the prior year casualty reserve development follow:

Current wording

Details of the prior year casualty reserve development by line of business follow:

Previous wording

In Nine Months 2024, we experienced (i) favorable prior year casualty reserve development on our homeowners line of business of $5.0 million, primarily due to lower loss severities in accident years 2021 and prior, offset by (ii) $5.0 million of unfavorable prior year casualty reserve development on our personal automobile line of business, primarily driven by increased loss severities in accident years 2021 through 2023. The unfavorable prior year casualty reserve development in Third Quarter 2023 and Nine Months 2023 was primarily due to increased loss severities in accident year 2022 on our personal automobile line of business.

Current wording

Prior year casualty reserve development in First Quarter 2025 included $5.0 million in personal automobile, primarily driven by increased severities in accident year 2024. Our homeowners line of business experienced $5.0 million of favorable prior year casualty reserve development in First Quarter 2024, primarily due to lower loss severities in accident years 2021 and prior. This favorable development was offset by $5.0 million of unfavorable prior year casualty reserve development on our personal automobile line of business in First Quarter 2024, primarily driven by increased loss severities in accident years 2021 through 2023.

Previous wording

In addition, we experienced higher non-catastrophe property loss and loss expenses in Third Quarter 2024 and Nine Months 2024 compared to the same prior-year periods, primarily due to the impact of large fire losses, reflecting the continued period to period variability normally associated with our E&S property line of business.

Current wording

We experienced lower non-catastrophe property loss and loss expenses in First Quarter 2025 compared to First Quarter 2024, reflecting the continued period to period variability normally associated with property lines of business.

Previous wording

Our investment portfolio's objectives are to maximize after-tax net investment income and generate long-term book value per share growth by maximizing the portfolio's overall total return by investing our insurance operations premiums and the amounts our capital management strategies generate, including debt and equity security issuances. We balance those objectives against prevailing market conditions, capital preservation considerations, and our enterprise risk-taking appetite. We maintain (i) a well-diversified portfolio across issuers, sectors, and asset classes, and (ii) a high credit quality fixed income securities portfolio with a duration and maturity profile at an acceptable risk level that provides ample liquidity.

Current wording

•Maintaining (i) a well-diversified portfolio across issuers, sectors, and asset classes and (ii) a high credit quality fixed income securities portfolio with a duration and maturity profile at an acceptable risk level that provides ample liquidity.

Previous wording

The effective duration of our fixed income and short-term investments was 3.9 years as of September 30, 2024. We monitor and manage the effective duration to maximize yield while managing interest rate risk at an acceptable level. We buy and sell investments with the intent of maximizing investment returns in the current market environment, while balancing capital preservation.

Current wording

The effective duration of our fixed income and short-term investments was 4.1 years as of March 31, 2025. We monitor and manage the effective duration to maximize yield while managing interest rate risk at an acceptable level. We buy and sell investments with the intent of maximizing investment returns in the current market environment, while balancing capital preservation and ensuring adequate liquidity to support our insurance business.

Previous wording

Our fixed income and short-term investments represented 92% of our invested assets and had a weighted average credit rating of "AA-" as of both September 30, 2024 and December 31, 2023. Investment grade holdings represented 97% of the total fixed income and short-term investments portfolio as of September 30, 2024, and 96% as of December 31, 2023.

Current wording

Our fixed income and short-term investments represented 92% of invested assets at March 31, 2025 and December 31, 2024. These investments had (i) a weighted average credit rating of "A+" as of March 31, 2025 and December 31, 2024, and (ii) investment grade holdings representing 97% of the total fixed income and short-term investment portfolio at March 31, 2025 and December 31, 2024.

Previous wording

Invested assets increased $941.6 million at September 30, 2024, compared to December 31, 2023, primarily reflecting our active investment of operating cash flows. Operating cash flows during Nine Months 2024 were 22% of NPW.

Current wording

Invested assets increased $644.0 million at March 31, 2025, compared to December 31, 2024, primarily reflecting: (i) net proceeds from the issuance of our 5.9% Senior Notes in First Quarter 2025; (ii) our active investment of operating cash flows, which were 23% of NPW in First Quarter 2025; and (iii) pre-tax net unrealized gains in our fixed income and equity securities portfolios of $82.2 million due to a reduction in interest rates and strong performance of U.S. equities during First Quarter 2025. For additional information about our 5.9% Senior Notes, see Note 12. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

Previous wording

We manage liquidity by generating sufficient cash flows to meet our business operations' short-term and long-term cash requirements. As discussed further below, we adjust our liquidity requirements based on economic conditions, market conditions, and future cash flow commitments.

Current wording

We manage liquidity by generating sufficient cash flows to meet our business operations' short-term and long-term cash requirements. We adjust our liquidity requirements based on economic conditions, market conditions, and future cash flow commitments, as discussed further below.

Previous wording

The Insurance Subsidiaries generate liquidity through insurance float, created by collecting premiums and earning investment income before paying claims. The period of float can extend over many years. Our investment portfolio consists of securities with maturity dates that continually provide a source of cash flow for claims payments in the ordinary course of business. To protect our Insurance Subsidiaries' capital, we purchase reinsurance coverage for significantly large claims or catastrophes that may occur.

Current wording

The Insurance Subsidiaries generate liquidity through insurance float, created by collecting premiums and earning investment income before paying claims. Given the long payment patterns of certain claims, the period of float can extend over many years. Our investment portfolio consists of securities with maturity dates that continually provide a source of cash flow for claims payments in the ordinary course of business. To protect our Insurance Subsidiaries' capital, we purchase reinsurance coverage for significantly large claims or catastrophes that may occur.

Previous wording

The Insurance Subsidiaries paid $44 million in total dividends to the Parent in Nine Months 2024. As of December 31, 2023, our allowable ordinary maximum dividend is $316 million for 2024. All Insurance Subsidiary dividends to the Parent are (i) subject to the approval and/or review of its domiciliary state insurance regulator and (ii) generally payable only from earned statutory surplus reported in its annual statements as of the preceding December 31. Although domiciliary state insurance regulators have historically approved dividends, there is no assurance they will approve future Insurance Subsidiary dividends.

Current wording

From time to time, our Insurance Subsidiaries pay dividends to the Parent company. The Insurance Subsidiaries did not declare or pay cash dividends to the Parent in First Quarter 2025. As of December 31, 2024, our allowable ordinary maximum dividend is $290 million for 2025. All Insurance Subsidiary dividends to the Parent are (i) subject to the approval and/or review of its domiciliary state insurance regulator and (ii) generally payable only from earned statutory surplus reported in its annual statements as of the preceding December 31. Although domiciliary state insurance regulators have historically approved dividends, there is no assurance they will approve future Insurance Subsidiary dividends.

Previous wording

On November 7, 2022, the Parent entered into a Credit Agreement with the lenders named therein (the "Lenders") and Wells Fargo Bank, National Association, as Administrative Agent ("Line of Credit"). Under the Line of Credit, the Lenders have agreed to provide the Parent with a $50 million revolving credit facility that can be increased to $125 million with the Lenders' consent. No borrowings were made under the Line of Credit in Nine Months 2024. The Line of Credit will mature on November 7, 2025, and has a variable interest rate based on the Parent’s debt ratings. We expect to continue to maintain a credit facility for liquidity purposes. For additional information regarding the Line of Credit and corresponding representations, warranties, and covenants, refer to Note 11. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2023 Annual Report. We met all covenants under our Line of Credit as of September 30, 2024.

Current wording

On November 7, 2022, the Parent entered into a Credit Agreement with the lenders named therein (the "Lenders") and Wells Fargo Bank, National Association, as Administrative Agent ("Line of Credit"). Under the Line of Credit, the Lenders have agreed to provide the Parent with a $50 million revolving credit facility that can be increased to $125 million with the Lenders' consent. No borrowings were made under the Line of Credit in First Quarter 2025. The Line of Credit will mature on November 7, 2025, and has a variable interest rate based on the Parent’s debt ratings. We expect to continue to maintain a credit facility for liquidity purposes. For additional information regarding the Line of Credit and corresponding representations, warranties, and covenants, refer to Note 11. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report. We met all covenants under our Line of Credit as of March 31, 2025.

Previous wording

The Line of Credit permits aggregate borrowings from the FHLBI and the FHLBNY up to 10% of the respective member company’s admitted assets for the previous year. SICNY is domiciled in New York, which limits its FHLBNY borrowings to the lesser of 5% of admitted assets for the most recently completed fiscal quarter or 10% of the previous year-end's admitted assets. As of September 30, 2024, we had remaining capacity of $530.9 million for FHLB borrowings, with a $21.4 million additional stock purchase requirement to allow the member companies to borrow their remaining capacity amounts.

Current wording

The Line of Credit permits aggregate borrowings from the FHLBI and the FHLBNY up to 10% of the respective member company’s admitted assets for the previous year. SICNY is domiciled in New York, which limits its FHLBNY borrowings to the lesser of 5% of admitted assets for the most recently completed fiscal quarter or 10% of the previous year-end's admitted assets. As of March 31, 2025, we had remaining capacity of $607.7 million for FHLB borrowings, with a $24.9 million additional stock purchase requirement to allow the member companies to borrow their remaining capacity amounts.

Previous wording

We made no short-term borrowings from FHLB branches during Nine Months 2024.

Current wording

We made no short-term borrowings from FHLB branches during First Quarter 2025.

Previous wording

The Parent has lending agreements with the Indiana Subsidiaries, approved by the Indiana Department of Insurance, that provide the Parent with additional intercompany liquidity. Like the Line of Credit, these lending agreements limit the Parent’s borrowings from the Indiana Subsidiaries to 10% of the admitted assets of the respective Indiana Subsidiary. The outstanding balance on these intercompany loans was $35.0 million as of September 30, 2024, and $67.0 million as of December 31, 2023. The remaining capacity under these intercompany loan agreements was $146.5 million as of September 30, 2024, and $114.5 million as of December 31, 2023. Additionally, we have other insurance regulator-approved intercompany agreements that facilitate liquidity management between the Parent and the Insurance Subsidiaries to enhance flexibility.

Current wording

The Parent has lending agreements with the Indiana Subsidiaries, approved by the Indiana Department of Insurance, that provide the Parent with additional intercompany liquidity. Like the Line of Credit, these lending agreements limit the Parent’s borrowings from the Indiana Subsidiaries to 10% of the admitted assets of the respective Indiana Subsidiary. The outstanding balance on these intercompany loans was $35.0 million as of March 31, 2025 and December 31, 2024. The remaining capacity under these intercompany loan agreements was $171.8 million as of March 31, 2025 and December 31, 2024. We have other insurance regulator-approved intercompany agreements that facilitate liquidity management between the Parent and the Insurance Subsidiaries to enhance flexibility.

Previous wording

The Parent had no private or public stock issuances during Nine Months 2024. During Nine Months 2024, we repurchased 103,000 shares of our common stock under our existing share repurchase program for $8.7 million, an $84.34 average price per share, excluding commissions paid. We had $75.5 million of remaining capacity under our share repurchase program as of September 30, 2024. For additional information on the share repurchase program, refer to Note 17. "Equity" in Item 8. "Financial Statements and Supplementary Data." of our 2023 Annual Report.

Current wording

During First Quarter 2025, we repurchased 233,611 shares of our common stock under our existing share repurchase program for $19.4 million, an $82.87 average price per share, excluding commissions paid. We had $56.1 million of remaining capacity under our share repurchase program as of March 31, 2025. For additional information on the share repurchase program, refer to Note 17. "Equity" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

Previous wording

The Parent uses the liquidity generated from the sources discussed above to pay dividends to our stockholders, among other things. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. Our Board declared:

Current wording

The Parent uses the liquidity generated from the sources discussed above to pay dividends to our stockholders, among other things. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board of Directors ("Board") based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. Our Board declared: