Selective Insurance Group (SIGI) AI Stock Analysis

• Market Cap: $4.81B
• Dividend Yield: 1.92%
• Average Volume (3M): 629.43K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.30
• Revenue Growth: 12.27%
• EPS Growth: 66.53%
• Country: US
• Employees: 2,800
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.31
• Shares Outstanding: 60,850,304
• 10 Day Avg. Volume: 1,083,007
• 30 Day Avg. Volume: 629,433
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 1.67
• Enterprise Value/Ebitda: 17.79
• 1Y Price Target: $82.60
• Price Target Upside: 6.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $83.00 ▲(6.77% Upside)

Selective Insurance Group's strong financial foundation and strategic initiatives are tempered by operational challenges and weak technical indicators. The company's valuation metrics suggest caution, but recent corporate events provide a positive outlook for financial flexibility and growth.

Positive Factors

Commercial Auto

Commercial Auto reserving concerns are viewed as manageable due to increased earned premiums from higher renewal pricing.

Reserving Actions

Prudent management actions from Selective are seen going forward based on the appropriate reserving actions taken by management.

Social Inflation

The overall reserving is improving, likely due in part to the deceleration of social inflation frequency.

Negative Factors

Profitability Challenges

As the company works through current profitability and growth challenges, the share price is expected to underperform peers.

Stock Rating

The stock rating has been downgraded from equal-weight to underweight.

Underwriting Environment

The need for more course correction in the Commercial Segment and an intensifying commercial property & personal auto underwriting environment should pressure share price performance.

Selective Insurance Group Business Overview & Revenue Model

Company Description

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. It operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. The company offers property insurance products, which covers the financial consequences of accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and casualty insurance products that covers the financial consequences of employee injuries in the course of employment, and bodily injury and/or property damage to a third party, as well as flood insurance products. It also invests in fixed income investments and commercial mortgage loans, as well as equity securities and alternative investment portfolio. The company offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. Selective Insurance Group, Inc. was founded in 1926 and is headquartered in Branchville, New Jersey.

How the Company Makes Money

Selective Insurance Group generates revenue primarily through the underwriting and sale of property and casualty insurance policies. The company collects premiums from policyholders in exchange for providing insurance coverage. Key revenue streams include commercial lines, which cover property, liability, automobile, and other business-related risks, and personal lines, which include home, auto, and other personal insurance products. Additionally, SIGI earns income from investment activities, where it invests the premiums collected in various financial instruments to generate returns. The company's strategic partnerships with independent insurance agents play a significant role in its distribution model, enhancing market reach and customer acquisition. Effective risk management and claims handling are integral to maintaining profitability and sustaining revenue growth.

Selective Insurance Group Financial Statement Overview

Summary

Selective Insurance Group exhibits solid revenue growth and a robust balance sheet with effective cash generation. However, profitability margins indicate potential for operational improvements, impacting the overall financial performance.

Income Statement

Selective Insurance Group demonstrates solid revenue growth with a notable increase from the previous year, indicating a positive trajectory. The gross profit margin is exceptionally high, reflecting effective cost management. However, the net profit margin shows room for improvement, suggesting potential challenges in controlling non-core expenses. The EBIT and EBITDA margins are relatively modest, which may hint at operational inefficiencies compared to peers.

Balance Sheet

The company's balance sheet is robust, with a strong equity base and a favorable equity ratio, underscoring financial stability. The debt-to-equity ratio is low, indicating conservative leverage and reduced financial risk. Return on equity is healthy, showcasing effective use of shareholder funds. Overall, the balance sheet reflects a strong financial position with minimal risk exposure.

Cash Flow

Cash flow performance is strong with a significant operating cash flow relative to net income, indicating efficient cash generation from operations. Free cash flow growth is commendable, supporting potential reinvestment or shareholder returns. The free cash flow to net income ratio is robust, confirming a solid cash conversion rate. This reflects a healthy liquidity position and effective capital management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.86B	4.23B	3.56B	3.38B	2.92B
Gross Profit	321.30M	4.22B	3.55B	3.38B	2.92B
EBITDA	321.71M	517.25M	351.37M	589.58M	393.18M
Net Income	207.01M	365.24M	224.89M	403.84M	246.35M
Balance Sheet
Total Assets	13.51B	11.80B	10.80B	10.46B	9.69B
Cash, Cash Equivalents and Short-Term Investments	268.58M	180.00K	26.00K	455.00K	394.00K
Total Debt	555.67M	503.95M	504.68M	506.05M	550.74M
Total Liabilities	10.39B	8.85B	8.27B	7.48B	6.95B
Stockholders Equity	3.12B	2.95B	2.53B	2.98B	2.74B
Cash Flow
Free Cash Flow	1.07B	736.28M	776.39M	749.26M	531.98M
Operating Cash Flow	1.10B	758.91M	802.41M	771.42M	554.04M
Investing Cash Flow	-947.38M	-686.36M	-734.45M	-618.78M	-688.17M
Financing Cash Flow	-102.75M	-84.49M	-87.82M	-122.81M	141.38M

Selective Insurance Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIGI, the sentiment is Negative. The current price of 77.74 is below the 20-day moving average (MA) of 82.81, below the 50-day MA of 84.93, and below the 200-day MA of 88.81, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 49.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SIGI.

Selective Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLMR	83 Outperform	$3.12B	21.61	22.45%	―	46.90%	43.99%
THG	81 Outperform	$6.12B	11.27	19.23%	2.09%	4.47%	102.98%
RLI	74 Outperform	$6.17B	19.22	19.49%	3.90%	10.29%	-4.70%
Sector *	73 Outperform	15.24B	17.88	15.37%	3.83%	8.25%	25.93%
SIGI	70 Outperform	$4.81B	12.94	12.19%	1.92%	12.27%	66.53%
WTM	65 Neutral	$4.59B	155.62	0.61%	0.06%	-4.09%	-94.77%
KMPR	58 Neutral	$3.94B	11.58	12.21%	2.49%	-6.08%	―

Selective Insurance Group Corporate Events

Wole Coaxum Resigns from Selective Insurance Board

On July 30, 2025, Wole Coaxum resigned from Selective Insurance Group‘s Board of Directors to focus on his role at Mobility Capital Finance Inc. His departure, which was not due to any disagreements with the company, leaves the board with 11 directors, 10 of whom are independent. Coaxum’s resignation is acknowledged by Selective’s leadership, who express gratitude for his contributions and confidence in the company’s strategic direction and ability to deliver value to shareholders.

The most recent analyst rating on (SIGI) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Selective Insurance Group stock, see the SIGI Stock Forecast page.

Selective Insurance Group Reports Q2 2025 Financial Results

Selective Insurance Group reported its financial results for the second quarter of 2025, showing a net income per diluted common share of $1.36 and a non-GAAP operating income of $1.31 per share. The company achieved a return on equity of 10.7% and a non-GAAP operating return on equity of 10.3%. Notably, net premiums written increased by 5% compared to the same quarter in 2024, driven by renewal pure price increases. The GAAP combined ratio improved to 100.2% from 116.1% in the previous year, reflecting pressures from social inflation and reserve strengthening in commercial lines. Selective’s strategic initiatives and disciplined approach are aimed at delivering profitable growth in the current market environment.

The most recent analyst rating on (SIGI) stock is a Hold with a $96.00 price target. To see the full list of analyst forecasts on Selective Insurance Group stock, see the SIGI Stock Forecast page.

Selective Insurance Group Secures New Credit Agreement

On June 30, 2025, Selective Insurance Group, Inc. entered into a new Credit Agreement with Wells Fargo Bank and other lenders, securing a $100 million revolving credit facility, expandable to $200 million. This agreement, which matures on June 30, 2028, replaces a prior credit agreement from November 2022, which provided a $50 million facility. The new agreement includes customary financial covenants and events of default, positioning Selective for enhanced financial flexibility without incurring penalties from the termination of the previous agreement.

The most recent analyst rating on (SIGI) stock is a Hold with a $96.00 price target. To see the full list of analyst forecasts on Selective Insurance Group stock, see the SIGI Stock Forecast page.

Selective Insurance Announces COO Retirement Plans

On May 13, 2025, Selective Insurance Group announced the planned retirement of Brenda M. Hall, Executive Vice President and Chief Operating Officer of Standard Lines, effective January 5, 2026. Hall, who joined the company in 2001, has been instrumental in integrating predictive modeling into underwriting operations and developing growth strategies. Her departure marks the end of a 24-year tenure characterized by significant contributions to the company’s operations and culture. The company will begin the process of identifying a successor to continue driving its profitable growth.

The most recent analyst rating on (SIGI) stock is a Hold with a $103.00 price target. To see the full list of analyst forecasts on Selective Insurance Group stock, see the SIGI Stock Forecast page.