Selective Insurance Group (SIGI) AI Stock Analysis

• Market Cap: $4.65B
• Dividend Yield: 2.04%
• Average Volume (3M): 542.95K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.34
• Revenue Growth: 10.98%
• EPS Growth: 74.87%
• Country: US
• Employees: 2,800
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.75
• Shares Outstanding: 60,409,115
• 10 Day Avg. Volume: 367,478
• 30 Day Avg. Volume: 542,952
• PEG Ratio: -0.62
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 5.33
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 10.30
• 1Y Price Target: $78.50
• Price Target Upside: 1.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 6.94
• Revenue Forecast (FY): $4.97B

• Rating: 78 Outperform
• Price Target: $89.00 ▲(15.58% Upside)

Selective Insurance Group's strong financial performance is the most significant factor contributing to the overall score, reflecting robust growth and stability. The valuation is fair, providing a balance between growth potential and income. Technical analysis indicates some caution, while the earnings call highlights both strategic strengths and operational challenges. Overall, the stock is positioned well within its industry, with a focus on maintaining profitability and shareholder value.

Positive Factors

Strong Financial Health

The company's strong financial health, characterized by consistent revenue and profit growth and minimal leverage, ensures long-term stability and the ability to invest in growth opportunities.

Geographic Expansion

Expanding geographic presence enhances market reach and diversifies risk, supporting long-term growth and resilience against regional economic fluctuations.

Investment Income Growth

Strong growth in investment income boosts profitability and provides additional capital for strategic initiatives, supporting sustainable long-term growth.

Negative Factors

Elevated Combined Ratio

An elevated combined ratio indicates higher costs relative to premiums, which can pressure margins and profitability if not addressed effectively.

Challenges in New Jersey

Persistent challenges in New Jersey's commercial auto segment could strain resources and necessitate strategic adjustments, impacting profitability.

Unfavorable Reserve Development

Unfavorable reserve development can indicate underestimation of past liabilities, potentially impacting future earnings and requiring corrective measures.

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 of insurance premiums collected from policyholders. The company earns money by charging premiums for its various insurance products, which are calculated based on risk assessments, market conditions, and policyholder characteristics. Key revenue streams include commercial insurance premiums from businesses, personal insurance premiums from individuals, and additional income from reinsurance and investment earnings on premiums before claims are paid out. SIGI also benefits from strategic partnerships with independent agents and brokers, enabling them to expand their distribution network and reach a wider customer base. Additionally, the company's focus on loss prevention and risk management helps reduce claims costs, further enhancing profitability.

Selective Insurance Group Financial Statement Overview

Summary

Selective Insurance Group demonstrates strong financial health with consistent revenue and profit growth, minimal leverage, and robust cash flow generation. The company maintains a healthy gross profit margin and net profit margin, indicating strong profitability. The balance sheet is solid with a very low debt-to-equity ratio, and cash flow management is efficient with high conversion of net income into free cash flow.

Income Statement

Selective Insurance Group has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.27%. The company maintains a healthy gross profit margin of 29.75% and a net profit margin of 7.79% in the TTM period, indicating strong profitability. EBIT and EBITDA margins are also solid at 10.49% and 11.09%, respectively. The consistent growth and profitability metrics reflect a robust financial performance in the insurance sector.

Balance Sheet

The company exhibits a very low debt-to-equity ratio of 0.0012 in the TTM period, indicating minimal leverage and strong financial stability. Return on equity is impressive at 12.29%, showcasing efficient use of equity to generate profits. The equity ratio stands at 23.30%, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Selective Insurance Group has shown strong cash flow management with a TTM free cash flow growth rate of 1.71%. The operating cash flow to net income ratio is exceptionally high at 2096.91, indicating robust cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.97, reflecting efficient conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.23B	4.86B	4.23B	3.56B	3.38B	2.92B
Gross Profit	1.72B	321.30M	518.07M	340.26M	562.78M	359.24M
EBITDA	587.18M	321.71M	517.25M	351.37M	589.58M	393.18M
Net Income	406.71M	207.01M	365.24M	224.89M	403.84M	246.35M
Balance Sheet
Total Assets	14.98B	13.51B	11.80B	10.80B	10.46B	9.69B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.10B	7.81B	7.05B	7.16B	6.87B
Total Debt	902.32M	507.94M	506.58M	504.68M	506.05M	550.74M
Total Liabilities	11.49B	10.39B	8.85B	8.27B	7.48B	6.95B
Stockholders Equity	3.49B	3.12B	2.95B	2.53B	2.98B	2.74B
Cash Flow
Free Cash Flow	1.15B	1.07B	736.28M	776.39M	749.26M	531.98M
Operating Cash Flow	1.19B	1.10B	758.91M	802.41M	771.42M	554.04M
Investing Cash Flow	-1.42B	-947.38M	-686.36M	-734.45M	-618.78M	-688.17M
Financing Cash Flow	240.69M	-102.75M	-84.49M	-87.82M	-122.81M	141.38M

Selective Insurance Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 is above the 20-day moving average (MA) of 76.76, below the 50-day MA of 78.94, and below the 200-day MA of 82.71, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 51.08 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
RLI	81 Outperform	$5.83B	16.73	19.49%	4.13%	3.72%	-16.23%
SIGI	78 Outperform	$4.65B	12.08	12.22%	2.04%	10.98%	74.87%
THG	77 Outperform	$6.36B	10.47	20.02%	2.01%	5.26%	72.46%
MCY	69 Neutral	$4.87B	11.22	21.47%	1.67%	6.18%	-21.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTM	65 Neutral	$4.82B	34.57	2.95%	0.05%	-4.24%	-78.10%
KMPR	51 Neutral	$2.15B	9.63	9.03%	3.49%	4.51%	-8.29%

Selective Insurance Group Corporate Events

Selective Insurance Group Expands Board with New Director

On October 29, 2025, Selective Insurance Group‘s Board of Directors expanded from 11 to 12 members, appointing Julie Parsons as a non-employee director effective November 3, 2025. Parsons, a retired Allstate executive with over 30 years of experience, is expected to enhance the Board’s strategic perspectives with her expertise in product development and digital transformation. Her appointment reflects Selective’s commitment to leveraging seasoned industry expertise to drive growth and deliver sustainable value to shareholders and stakeholders.

The most recent analyst rating on (SIGI) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on Selective Insurance Group stock, see the SIGI Stock Forecast page.

U.S. Government Shutdown Threatens Selective Insurance’s Financial Stability and Operations

The ongoing shutdown of the United States federal government, which began on October 1, 2025, poses significant risks to Selective Insurance. The furlough of non-essential federal employees and the curtailment of services can lead to economic uncertainty and financial market volatility, potentially affecting the company’s investment portfolio and demand for its insurance products. Furthermore, disruptions to federal disaster response programs like the National Flood Insurance Program could hinder Selective Insurance’s ability to manage claims during natural disasters, impacting its reputation. Despite efforts to mitigate these risks, the unpredictable nature of government shutdowns could materially affect the company’s financial health and operational results.

Selective Insurance Balances Growth with Challenges in Q3 Call

Selective Insurance’s recent earnings call painted a picture of balanced sentiment, highlighting both strengths and challenges. The company reported strong investment income and growth in its Excess and Surplus Lines segment, alongside strategic geographic expansion and shareholder returns through dividends and share repurchases. However, these positives were tempered by elevated combined ratios, reserve development challenges, and specific issues in New Jersey’s commercial auto segment.

Selective Insurance Reports Strong Q3 2025 Results

Selective Insurance Group, Inc. is a property and casualty insurance company that offers standard and specialty insurance for commercial and personal risks, as well as flood insurance through the National Flood Insurance Program. The company is recognized for its unique position as both a leading insurance provider and an employer of choice.

Selective Insurance Announces $200M Share Buyback Program

On October 22, 2025, Selective Insurance Group announced a new $200 million share repurchase program effective October 27, 2025, replacing the previous program. The company reported strong financial results for the third quarter of 2025, with a 4% increase in net premiums written and an 18% rise in net investment income. The company also increased its quarterly dividend by 13%, marking its twelfth consecutive annual increase, and expanded its commercial lines into Kansas, with plans to enter Montana and Wyoming in 2026.

The most recent analyst rating on (SIGI) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Selective Insurance Group stock, see the SIGI Stock Forecast page.