Selective Insurance Group (SIGI) AI Stock Analysis

• Market Cap: $5.43B
• Dividend Yield: 1.7%
• Average Volume (3M): 373.00K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.33
• Revenue Growth: 13.37%
• EPS Growth: -35.09%
• Country: US
• Employees: 2,800
• Sector: Financial
• Sector Strength: 83
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.76
• Shares Outstanding: 60,774,445
• 10 Day Avg. Volume: 375,713
• 30 Day Avg. Volume: 373,002
• PEG Ratio: 1.55
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $91.50
• Price Target Upside: 4.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $97.00 ▲(11.01%Upside)

Selective Insurance Group's overall stock score reflects its strong financial performance and strategic execution, as highlighted in the earnings call. However, the stock's technical analysis and valuation metrics indicate potential concerns, such as a lack of strong upward momentum and a relatively high P/E ratio, suggesting caution for potential investors.

Positive Factors

Investment Income

The company had $122.7 million of pre-tax net investment income, which was above consensus expectations.

Management Actions

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

Pricing Power

With SIGI’s relative pricing power and management’s incentive to improve its combined ratio, margins are expected to improve.

Negative Factors

Adverse Reserve Development

The fourth-quarter results missed both analyst and consensus expectations, driven by adverse prior-period reserve development in the general liability book.

Earnings Miss

Reported operating EPS of $1.62 missed consensus' $1.98.

Reserving Concerns

Given this is the fourth of the past five quarters with reserving speed-bumps, more shareholders may begin to question whether SIGI's commercial auto reserves need topping off.

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 shows a solid financial footing with commendable revenue growth and a strong balance sheet, providing a cushion against potential market volatility. Despite the high gross profit, profitability margins suggest room for operational improvements. Strong cash flow metrics further enhance the company's financial flexibility.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.98B	4.86B	101.17M	3.56B	3.38B	2.92B
	Gross Profit
4.94B	4.86B	91.55M	3.55B	3.38B	2.92B
	EBIT
308.39M	292.32M	474.49M	309.04M	534.53M	334.15M
	EBITDA
351.34M	286.91M	517.25M	351.37M	589.58M	393.18M
	Net Income Common Stockholders
234.39M	207.01M	365.24M	224.89M	403.84M	246.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.61B	268.58M	180.00K	26.00K	455.00K	394.00K
	Total Assets
14.20B	13.51B	11.80B	10.80B	10.46B	9.69B
	Total Debt
903.23M	507.94M	503.95M	500.96M	500.60M	525.24M
	Net Debt
903.11M	507.85M	503.77M	500.93M	500.14M	524.84M
	Total Liabilities
10.94B	10.39B	8.85B	8.27B	7.48B	6.95B
	Stockholders Equity
3.26B	3.12B	2.95B	2.53B	2.98B	2.74B
Cash Flow		Free Cash Flow
1.24B	1.07B	736.28M	776.39M	749.26M	531.98M
	Operating Cash Flow
1.27B	1.10B	758.91M	802.41M	771.42M	554.04M
	Investing Cash Flow
-1.45B	-947.38M	-686.36M	-734.45M	-618.78M	-688.17M
	Financing Cash Flow
273.06M	-102.75M	-84.49M	-87.82M	-122.81M	141.38M

Selective Insurance Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 87.38
• 50DMA: Negative
• 100DMA: Positive
• 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 87.38 is below the 20-day moving average (MA) of 88.24, below the 50-day MA of 88.28, and below the 200-day MA of 90.07, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.58 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	$4.68B	34.31	20.76%	―	46.90%	43.99%
THG	79 Outperform	$6.23B	14.35	15.74%	2.02%	3.09%	168.29%
SIGI	71 Outperform	$5.43B	24.38	7.48%	1.70%	13.37%	-35.09%
RLI	69 Neutral	$7.03B	25.20	17.99%	0.80%	9.18%	-16.06%
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%
WTM	59 Neutral	$4.67B	158.15	0.61%	0.06%	-4.09%	-94.77%
KMPR	58 Neutral	$4.13B	12.07	12.57%	1.95%	-6.08%	―

Selective Insurance Group Corporate Events

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.

Selective Insurance Group Reports Strong Q1 2025 Results

Selective Insurance Group reported its financial results for the first quarter of 2025, showing a net income per diluted common share of $1.76 and a return on common equity of 14.4%. The company experienced a 7% increase in net premiums written compared to the previous year, driven by a 10.3% rise in renewal pure price increases. The GAAP combined ratio improved to 96.1%, and net investment income rose by 12% to $96 million after-tax. The company also completed a $400 million senior note issuance to support organic growth.