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Selective Insurance downgraded to Underweight at Morgan Stanley

Morgan Stanley downgraded Selective Insurance (SIGI) to Underweight from Equal Weight with a price target of $72, down from $86. The firm says the company is “entering a challenging cycle” with uncertainties around reserving and underwriting. The need for changes in Selective’s Commercial segment and increased competition in its commercial property and personal auto underwriting should pressure the shares, the analyst tells investors in a research note. As such, Morgan Stanley expects the stock at a discount to peers.

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