Vincent M. Senia
SELECTIVE INSURANCE GROUPAbout Vincent M. Senia
Selective Insurance Group’s Executive Vice President and Chief Actuary since 2017, previously Senior Vice President of Actuarial Reserving (2010–2017) and Vice President & Chief Reserving Actuary at Munich Re America (2003–2010). Age 61; Fellow of the Casualty Actuarial Society and member of the American Academy of Actuaries; B.S., New Jersey Institute of Technology . Company performance context: 2023 GAAP combined ratio 96.5% and non-GAAP operating ROE 14.4% with TSR +13.7%; 2024 combined ratio 103.0% with TSR −4.6% amid adverse prior-year casualty reserve development .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Selective Insurance Group | EVP, Chief Actuary | 2017–Present | Leads enterprise pricing, reserving and actuarial analytics; key influence on risk selection, reserve adequacy, and underwriting profitability . |
| Selective Insurance Group | SVP, Actuarial Reserving | 2010–2017 | Established comprehensive quarterly reserve reviews and monitoring of loss trends . |
| Munich Re America | VP & Chief Reserving Actuary | 2003–2010 | Directed reserving; strengthened forecasting and loss estimation frameworks . |
| Munich Re America (various) | Actuarial Management | 2001–2003 | Built actuarial capabilities supporting reserving and pricing . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Casualty Actuarial Society | Fellow | N/A | Professional credential underpinning technical leadership . |
| American Academy of Actuaries | Member | N/A | Professional standards and policy engagement . |
Fixed Compensation
| Metric ($) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Salary | 421,769 | 431,462 | 438,923 |
| Stock Awards (RSUs + CIUs grant-date fair value) | 468,877 (281,277 RSUs; 93,800 CIUs + remainder per table) | 525,053 (315,053 RSUs; 105,000 CIUs + remainder per table) | 450,026 (337,526 RSUs; 112,500 CIUs) |
| Non-Equity Incentive (ACIP) | 565,000 | 520,000 | 510,000 |
| All Other Compensation | 35,850 | 47,674 | 42,808 |
| Total | 1,397,696 | 1,419,189 | 1,441,757 |
Notes
- Base salary rate as of Feb 26, 2023: $440,000 .
- 2023 merit increase +1.6% y/y; ACIP −1.9% y/y; LTIP +7.1% y/y; total compensation +2.0% y/y .
Performance Compensation
| Component | Metric | Weighting/Opportunity | Target | Actual (2023) | Payout/Result | Vesting/Timing |
|---|---|---|---|---|---|---|
| Annual Cash Incentive (ACIP) – Financial | GAAP Combined Ratio | 50% of ACIP; pays 0% ≥100%, max 120% ≤88% | 95.0% | 96.5% | 35 points funded | Paid in 2024 (Senia ACIP $510,000) |
| Annual Cash Incentive (ACIP) – Strategic | 14 strategic measures | 0–50% + up to 5% upside | Defined annual milestones | 12 achieved; 1 partial; 1 missed | 48 points funded; total corporate ACIP opportunity 83% (35 + 48) | Paid in 2024 |
| Senia ACIP Outcome | ACIP % of Salary | Range 0–150% | N/A | N/A | 116% of base salary; $510,000 | Paid in 2024 |
| Long-Term Incentive – RSUs | 3-yr performance RSUs | ~75% of LTIP grant value | Cumulative non-GAAP operating ROE ≥12% or ≥5% cumulative growth in policy count or statutory NPW over performance period | Performance determined at period end | 2023 grant RSUs $337,526 (Senia) | 1/1/2023–12/31/2025; payable ~2/6/2026 if conditions met |
| Long-Term Incentive – CIUs | 3-yr cash incentive units | ~25% of LTIP grant value | TSR over 3 years; unit count scaled by relative 3-yr statutory NPW growth and operating RO on policyholder surplus vs peer index | Performance determined at period end | 2023 grant CIUs $112,500 (Senia) | 1/1/2023–12/31/2025; payable ~2/6/2026; units adjust with TSR and peer matrix |
Equity Ownership & Alignment
| Item | Data |
|---|---|
| Beneficial Ownership | 11,528 shares as of Feb 20, 2024 |
| Shares Outstanding (record date) | 60,791,439 (Mar 7, 2024) |
| Ownership % of Outstanding | ~0.019% (calculated from cited figures) |
| Unvested RSUs (12/31/2023) | 5,443 units; market value $665,589 (at $122.31 implied RSU valuation) |
| Unearned CIUs and RSUs (12/31/2023) | CIUs: 1,050 (2020 cycle), 1,125 (2022 cycle); RSUs: 4,189 (2023 cycle), 3,370 (2024 cycle equivalent timing for other NEOs; Senia’s shown for 2023 set) – with respective payout value bases per footnotes |
| Stock Options | None outstanding; none exercisable |
| Pledging/Margin Accounts | None; company prohibits hedging; no pledging by directors/executives |
| Ownership Guidelines | EVP requirement: 3× base salary; retention of 75% of net shares from equity awards until guideline met |
| Compliance Status | “All officers have met or are on track to meet” ownership guidelines |
Employment Terms
| Term | Provision |
|---|---|
| Agreement Term | Initial 3-year term; auto-renewal for 1-year periods unless terminated |
| Initial Term End | June 12, 2020 (Senia) |
| Base Salary Rate | $440,000 (as of Feb 26, 2023) |
| Severance (No CIC) | 1.5× (salary + average of last 3 ACIP), paid over 12 months; partial reimburse for medical/dental/vision for up to 18 months; equity awards vest subject to performance |
| Change-in-Control | Double-trigger; 1.5× lump sum (salary + greater of target ACIP or 3-year avg ACIP); partial reimburse for benefits up to 18 months; CIUs initial units multiplied by 150% on vest |
| Restrictive Covenants | 2-year confidentiality and non-solicitation; release required for severance |
| Scenario Values (12/31/2023) | Retirement $1,603,817; Death/Disability $3,043,817; Termination w/o Cause or Good Reason $3,080,826; Termination following CIC $3,285,164 |
Compensation Structure Analysis
- Mix and changes: 2023 saw salary +1.6%, ACIP −1.9% reflecting corporate funding outcomes, LTIP +7.1% to align long-term equity competitiveness; total +2.0% y/y .
- ACIP design aligns payouts to underwriting performance via GAAP combined ratio and strategic milestones; LTIP ties to multi-year operating ROE/NPW growth and market TSR with peer-relative scaling .
- Governance controls: Ownership guidelines (3× salary for EVPs; 75% net share retention), hedging/pledging prohibited, and Dodd-Frank-compliant clawback adopted Dec 1, 2023 .
Related Programs and Deferred Compensation
- Deferred Compensation: 2023 executive contributions $295,114; company contributions $10,749; earnings $55,787; year-end balance $604,334 .
- Perquisites limited (company-wide) to tax preparation services and executive physicals; no tax gross-ups in employment agreements .
Performance & Track Record (Company context during Senia’s tenure)
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| GAAP Combined Ratio (%) | 94.9 | 92.8 | 95.1 | 96.5 | 103.0 |
| Annualized TSR (%) | 4.5 | 24.0 | 9.7 | 13.7 | −4.6 |
| Net Income ($000s) | 246,355 | 403,837 | 224,886 | 365,238 | 207,012 |
Additional 2023 highlights: NPW +16%, new business +26%, renewal pure price +6.8%, investment income +33% (after-tax $309.5m) . 2024: Reserve strengthening (7.1 points adverse prior-year casualty development), overall NPW +12%, investment after-tax income $363m (+17%) .
Risk Indicators & Red Flags
- Adverse reserve development in 2024 (−7.1 points) affecting combined ratio funding and potentially future ACIP outcomes .
- Hedging/pledging prohibited; no options outstanding; no excise tax gross-ups; double-trigger CIC; clawback policy in force .
- Say-on-Pay support remains strong (98% in 2023; >99% in 2024), reducing governance risk on compensation practices .
- CFO transition in late 2023; interim period managed; governance committees active in risk oversight .
Compensation Peer Group (Benchmarking)
- Proxy peer group includes Arch Capital, AXIS, CNA, Erie, Everest Re, Hanover, Hartford, Kemper, RLI, W. R. Berkley, Cincinnati Financial; survey of 57 P&C organizations used for pay decisions .
- 2023 total compensation for NEOs set ~14.2% below combined benchmark median, with LTIP notably lower vs peers; ACIP aligned to performance .
Say-on-Pay & Shareholder Feedback
- Approval of NEO compensation: 98% (2023) and >99% (2024) of votes cast; committee retained pay-for-performance emphasis .
Investment Implications
- Alignment: High linkage of Senia’s variable pay to underwriting profitability (combined ratio) and strategic execution, plus multi-year ROE/NPW/TSR metrics; ownership and retention rules limit near-term selling pressure and align incentives with long-term value .
- Retention risk appears contained: auto-renewal employment terms, competitive LTIP, double-trigger CIC protections, and strong governance backdrop with high say-on-pay support .
- Execution risk: As chief actuary, Senia is pivotal to reserve adequacy amid social inflation—2024 adverse reserve development underscores the importance of pricing and reserving discipline; watch ACIP funding sensitivity to combined ratio and reserve actions .
- Trading signals: No hedging/pledging; minimal perqs; significant unvested awards and 75% retention requirement reduce supply; monitor disclosures on reserve trends, ACIP funding and LTIP performance cycles for near-term compensation momentum .