Selective Insurance resumed with an Outperform at RBC Capital

RBC Capital analyst Rowland Mayor resumed coverage of Selective Insurance (SIGI) with an Outperform rating and $95 price target as part of a broader research note launching coverage on P&C insurance carriers and brokers. Looking to 2026, the firm expects continued strong return on equity, ROE, and book value per share growth amongst carriers, though it also sees slowing top-lines limiting earnings growth, the analyst tells investors in a research note. Some earnings headwinds are emerging, with a softening P&C cycle, difficult catastrophe comps, and uncertain reserving driving RBC’s expectations for ROE compression and limited sector performance, the firm added. For the company, RBC notes that further multiple compression is limited and over-exposure to high loss inflation lines could screen favorably as other parts of market soften.