Selective Insurance Group, Inc. today announced that John J. Marchioni, who has served as the Company’s President and Chief Operating Officer since 2013, has been unanimously elected by the Selective Board of Directors as its next Chief Executive Officer, effective February 1, 2020. Mr. Marchioni will succeed Gregory E. Murphy, who will retire as CEO after serving in the position since 1999. Mr. Murphy, Chairman of the Selective Board since 2000, will assume the newly created role of Executive Chairman of the Selective Board upon his retirement.
“On behalf of the Board of Directors, it is our privilege to announce the unanimous election of John Marchioni as the next Chief Executive Officer of Selective,” said Mr. Murphy. “In his more than 21 years at Selective, John has worked across all areas of our operations and has proven to be a thoughtful and strategic executive with a deep understanding of our industry and how to profitably grow our business. I, along with the Board, have worked closely with John and have been impressed by his performance as President and Chief Operating Officer for the last six years. His unanimous election as CEO demonstrates the confidence we have in his abilities, judgment and vision to continue to innovate and lead us into the future.”
Mr. Murphy continued, “It has been my honor to serve as Selective’s CEO for the past 20 years, and to have worked alongside a remarkable team that continues to keep the Company on an exciting growth trajectory. The Board has spent considerable time over the past several years preparing for a thoughtful succession process, and I firmly believe that now is the right time to initiate this leadership transition. With our continued outperformance, we are confident that with John as CEO the Selective team will rise to meet the innovation demands of our times and champion outstanding customer experiences, which are keys to our growth and future success.”
Mr. Marchioni said, “I want to thank the Board of Directors for placing their trust in me to lead this organization, and I also want to thank Greg for all that he has done for Selective and in preparing me, especially these past few years, for this new role. I look forward to continuing to work closely with Greg in the coming months and in his capacity as Executive Chairman as we work to build on Selective’s strong financial and strategic position for the long-term.”
Since Mr. Murphy became CEO in 1999, Selective and its best-in-class employees, along with its “ivy league” independent insurance agent partners, have achieved significant financial and business success:
- Total Shareholder Return of 1,081%1
- Increased market capitalization by more than 6.5 times, from $555 million to $4.3 billion2
- Tripled net premiums written, from $750 million to $2.5 billion.
- Achieved top-performing financial performance with non-GAAP operating return on equity averaging 11.6% and 11.4% over the past three and five years, respectively.
- Expanded commercial lines operations from 16 to 27 states and entered the excess and surplus lines marketplace.
- Successfully offered securities in public and private markets, most recently issuing $300 million of 30-year senior notes at 5.375%.
- Implemented commercial lines predictive modeling, now in the third generation.
- Enhanced safety management efforts with new tools and resources to detect and prevent safety issues within insureds’ businesses before a loss occurs.
- Strengthened organizational and leadership capabilities, enabling the attainment of Selective’s challenging business goals.
- Made diversity and inclusion an organizational and business imperative.
Elevated customer experience focus to build loyalty through proactive customer communications that help manage risks; self-service and digital policy offerings; and value-added services and innovative technologies, such as Selective® Drive and SWIFTClaimSM.
Installed a 2.9-megawatt AC ground-mount solar photovoltaic generation facility at Selective’s corporate headquarters that shows our commitment to the environment and provides financial benefits from the sale of the associated solar renewable energy credits.
“In his 20 years as CEO, Greg Murphy has created substantial value for our shareholders, developed Selective into the premier independent agency carrier, and instilled an unsurpassed corporate commitment to providing our insureds with exceptional customer experiences,” said J. Brian Thebault, Selective’s Lead Independent Director. “We are confident that, having worked side by side with John for many years, Greg’s accomplishments in making Selective what it is today will endure under John’s leadership as we enter the next phase of growth and success.”
An infographic on Mr. Murphy and Mr. Marchioni is available at: https://www.selective.com/shell/~/media/Files/S/Selective/Selective-Exec-Leadership-Transition-Infographic.pdf
About John Marchioni
John Marchioni has served as President and Chief Operating Officer of Selective since 2013. In May 2019, he was elected to Selective’s Board of Directors. Mr. Marchioni joined Selective in 1998 as a Government Affairs Specialist, was promoted to Assistant Vice President of Government Affairs in 2000, and named Vice President of Government Affairs in 2003. He was appointed Vice President and Strategic Business Unit Leader in 2004 and Senior Vice President, Director of Personal Lines and Flood in 2005. In 2007, he was promoted to Executive Vice President, Chief Field Operations Leader and, in 2008, Executive Vice President, Insurance Operations. He is a graduate of Princeton University and the Harvard Business School Advanced Management Program.
About Selective Insurance Group, Inc.
Selective Insurance Group, Inc. is a holding company for 10 property and casualty insurance companies rated “A” (Excellent) by A.M. Best. Through independent agents, the insurance companies offer standard and specialty insurance for commercial and personal risks and flood insurance through the National Flood Insurance Program’s Write Your Own Program. Selective’s unique position as both a leading insurance group and an employer of choice is recognized in a wide variety of awards and honors, including listing in the Fortune 1000 and being named one of “America’s Best Mid-Size Employers” by Forbes Magazine. For more information about Selective, visit www.Selective.com.
1TSR per Bloomberg, as of close of market on October 29, 2019
2Market capitalization figures as of October 29, 2019