Jeffrey F. Kamrowski
SELECTIVE INSURANCE GROUPAbout Jeffrey F. Kamrowski
Executive Vice President, MUSIC at Selective Insurance Group since 2020; previously held roles of increasing seniority across Business Services, Commercial Lines Underwriting, Excess & Surplus Lines, and IT since joining Selective in 1988. Age 60; B.S. from Hartwick College; Columbia University Executive Management Program; CPCU designation . Company performance context: 2024 GAAP ROE 7.0% and non-GAAP operating ROE 7.1% vs 12% target; combined ratio 103.0% with 7.1 points of adverse prior-year casualty reserve development; overall NPW up 12% YoY; 2024 TSR -4.6% with longer-term TSR of 5.9% (3yr), 9.0% (5yr), 14.8% (10yr) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Selective Insurance Group | Various roles in Business Services, Commercial Lines Underwriting, Excess & Surplus Lines, and IT | 1988–2020 | Broad operating and underwriting experience across core segments; contributed to scaling E&S and IT capabilities |
Fixed Compensation
- Selective’s program uses base salary as stable pay, set by role scope, responsibility, experience, performance, and market benchmarks; CHCC targets alignment with peer market trends and internal equity .
- Base salary levels for non-NEO executive officers (like Kamrowski) are not individually disclosed; NEO base-setting approach provides the framework for EVP roles .
Performance Compensation
Annual Cash Incentive Program (ACIP) – Corporate framework
| Metric | Weighting | Target | 2024 Actual | Payout Mechanics | 2024 Funding/Payout |
|---|---|---|---|---|---|
| GAAP Combined Ratio | 50% of opportunity | 95% combined ratio for full 50 points | 103.0% | 0% payout if >100%; up to 120% payout at ≤88% | 0 points from financial component |
| Strategic Measures (13 initiatives + potential 5-point upside) | Up to 50 points | Achieve designated milestones across expense, rate/price, growth, efficiency, customer experience | 12 of 13 achieved (one exceeded) | Straight-line interpolation by measure | 50 points from strategic component |
- ACIP payout ranges are position-specific; NEO ranges shown for context (CEO 0–350%, EVP ranges vary) with 2024 corporate funding driven solely by strategic points due to underwriting results .
Long-Term Incentive Program (LTIP)
| Instrument | Approx. Share of LTIP | Performance Metrics | Performance Period | Vesting | Payout Dynamics |
|---|---|---|---|---|---|
| Performance-Based RSUs | ~75% | Cumulative non-GAAP operating ROE ≥12% (average equity excludes unrealized gains/losses after prior year-end), OR 5% cumulative growth in policy count or statutory NPW | 3 years (e.g., 1/1/2024–12/31/2026) | 3-year cliff, subject to performance | DEUs accrue but only pay if RSUs vest; aligns awards to long-term profitability/growth |
| Performance-Based Cash Incentive Units | ~25% | 3-year TSR; relative 3-year statutory NPW growth and statutory operating return on policyholder surplus vs peer index | 3 years (e.g., 1/1/2024–12/31/2026) | At end of period | Units start at $100; final number scales by matrix; value marked to TSR; peer list includes Auto-Owners, Cincinnati, CNA, Donegal, Erie, Hanover, Liberty Mutual, UFG, Utica National, Westfield |
- Grant timing policy: awards granted after year-end earnings release; Section 16 officer awards approved by CHCC; grant date is CHCC meeting/unanimous consent date .
- Example prior-cycle outcomes: 2021 LTIP achieved RSU and cash unit metrics; cash units paid at 150% with $154.53 per unit value reflecting 3-year TSR and peer-relative outperformance .
Equity Ownership & Alignment
- Stock ownership guidelines: Executive Vice Presidents must hold 3× base salary; officers have 5 years from attaining status (or 3 years from requirement changes) to comply; 75% of unvested RSUs count; unexercised options do not .
- Compliance: “All of our officers have met or are on track to meet” ownership requirements; officers must retain at least 75% of net shares acquired from equity awards until meeting guidelines .
- Hedging and pledging: Hedging transactions are prohibited; no directors or executive officers hold stock in margin accounts or have pledged Selective stock; policy-based clawback compliant with SEC/Nasdaq requires recovery of excess incentive comp upon restatements regardless of misconduct .
- Recent insider activity: A Form 4 was filed for Jeffrey F. Kamrowski on Feb 10, 2025; public listings reference a non-open-market disposition; see SEC and exchange sources for details .
Employment Terms
| Provision | Standard Term | Notes |
|---|---|---|
| Agreement term | Initial 3 years; auto-renews for 1-year periods unless notice | Applies to key executives; NEO dates listed for context |
| Severance – death/disability | Multiple of salary + average of last 3 ACIP; paid over 12 months | Multiples: CEO 2×; others 1.5×; insurance proceeds offset |
| Severance – without cause (or CEO Good Reason; or relocations >50 miles) | Same multiple of salary + average ACIP; paid over 12 months; medical/dental/vision reimbursement | Duration: CEO 24 months; others 18 months; equity vesting accelerates subject to performance conditions |
| Change in control (double trigger) | Lump sum; CEO 2.99× of salary + target/avg bonus; others 1.5× salary + average ACIP; benefits continuation | Equity accelerates; cash units use 150% unit multiplier at per-unit value; benefits duration CEO 36 months; others 18 months |
| Conditions | Release of claims; confidentiality; 2-year non-solicitation | Applies to executive officers under agreements |
| Clawback | Recovery of excess incentive comp upon accounting restatements | SEC/Nasdaq-compliant; effective Oct 2, 2023 onwards |
Note: Selective states employment agreements with key executive officers, including NEOs; individual terms for non-NEO EVPs like Kamrowski are not separately disclosed, but the framework above governs executive agreements at the company .
Performance & Track Record
| Time Period | SIGI Annualized TSR |
|---|---|
| 1-year | -4.6% |
| 3-year | 5.9% |
| 5-year | 9.0% |
| 10-year | 14.8% |
- 2024 operational performance: Combined ratio 103.0% (financial component of ACIP unfunded); strategic execution funded at 50 points with 12/13 initiatives achieved; NPW +12% YoY; renewal pure price +9.5% .
- Rating agencies affirmed strong capital and franchise with stable outlooks across AM Best, S&P, Moody’s, Fitch in 2024 .
Compensation Structure Analysis
- Emphasis on performance-linked pay: ACIP tied to GAAP combined ratio and 13 strategic measures; LTIP split between ROE/NPW growth RSUs and TSR/peer-relative cash units; grants post year-end earnings .
- Governance-friendly features: No option repricing; no dividends on unvested awards; double-trigger CIC; no excise tax gross-ups; stringent hedging prohibition and ownership retention; clawback policy .
- Benchmarking: CHCC uses a Proxy Peer Group and industry survey; 2024 NEO total compensation positioned 15.9% below combined benchmark median; ACIP lowered due to underwriting results; LTIP increased to align equity mix and medians .
Risk Indicators & Red Flags
- Pledging/hedging: None permitted; none reported among directors or executive officers .
- Compensation risk: Company concludes comp policies unlikely to cause material adverse effect; multiple checks including long-term metrics, ownership requirements, CHCC oversight, ERM alignment .
- Related party: Minimal and arm’s-length transactions with BlackRock, Vanguard, Fidelity disclosed; amounts immaterial to alignment concerns .
Investment Implications
- Alignment: EVP-level stock ownership guideline (3× salary), retention requirements, prohibition on hedging/pledging, and SEC/Nasdaq clawback collectively reduce misalignment risk and forced selling pressure, supporting long-term orientation .
- Payout sensitivity: ACIP is highly sensitive to underwriting profitability (combined ratio) and strategic execution; 2024 zero financial points underscores linkage to core insurance economics—a potential catalyst if reserve environment normalizes .
- LTIP leverages multi-year ROE/NPW and peer-relative metrics with TSR marking, aligning executive incentives with shareholder returns and growth; RSU and cash-unit structures create vesting over 3 years, moderating near-term selling pressure unless performance conditions are met .
- Trading signals: Recent Form 4 activity indicates ongoing insider transactions; monitor subsequent filings for patterns or 10b5-1 plan disclosures that could signal future selling cadence .
Note: Individual compensation amounts, option holdings, and detailed ownership breakdowns for Jeffrey F. Kamrowski are not separately disclosed in the latest proxy; analysis relies on company-wide frameworks and policies applicable to executive officers .