Selective Insurance Group (SIGI) AI Stock Analysis

• Market Cap: $4.91B
• Dividend Yield: 1.91%
• Average Volume (3M): 410.95K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.32
• 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: 415,391
• 30 Day Avg. Volume: 410,949
• 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: 1.23
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 10.30
• 1Y Price Target: $81.80
• Price Target Upside: -0.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 6.91
• Revenue Forecast (FY): $4.96B

• Rating: 77 Outperform
• Price Target: $87.00 ▲(5.71% Upside)

Selective Insurance Group's strong financial performance is the most significant factor driving the score, supported by a solid valuation and positive corporate events. Technical analysis indicates a bearish trend, and the earnings call presents a mixed outlook with both strengths and challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for SIGI's insurance products, supporting long-term business expansion and market presence.

Cash Flow Management

Strong cash flow management ensures SIGI can effectively reinvest in its business, pay dividends, and handle unforeseen expenses, enhancing financial stability.

Strategic Expansion

Geographic expansion into new states enhances SIGI's market reach and potential customer base, supporting long-term growth and competitive positioning.

Negative Factors

Elevated Combined Ratio

A higher combined ratio indicates increased costs relative to premiums earned, which can pressure profitability and require operational adjustments.

Reserve Development Challenges

Reserve development issues can lead to unexpected financial strain and necessitate adjustments in pricing or underwriting to maintain profitability.

Decline in Personal Lines Premiums

A decline in personal lines premiums suggests competitive pressures and potential challenges in maintaining market share in this segment.

Selective Insurance Group Business Overview & Revenue Model

Company Description

Selective Insurance Group, Inc. (SIGI) is a diversified insurance holding company based in the United States, primarily focused on providing property and casualty insurance products. The company operates through several segments, including Commercial Lines, Personal Lines, and Other Insurance Services. SIGI's core products encompass a range of insurance solutions, including automobile, homeowners, and commercial property insurance, aimed at both individual and business customers. The company emphasizes regional market strategies and leverages its specialized underwriting expertise to deliver tailored insurance solutions.

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: Positive
• Last Price: 82.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIGI, the sentiment is Positive. The current price of 82.3 is above the 20-day moving average (MA) of 78.46, above the 50-day MA of 78.95, and below the 200-day MA of 82.49, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 65.56 is Neutral, neither overbought nor oversold. The STOCH value of 87.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIGI.

Selective Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLI	83 Outperform	$5.84B	16.67	19.49%	4.09%	3.72%	-16.23%
THG	77 Outperform	$6.59B	10.70	20.02%	1.98%	5.26%	72.46%
SIGI	77 Outperform	$4.91B	12.51	12.22%	1.91%	10.98%	74.87%
WTM	73 Outperform	$5.23B	37.37	2.95%	0.05%	-4.24%	-78.10%
MCY	69 Neutral	$5.05B	11.48	21.47%	1.36%	6.18%	-21.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KMPR	52 Neutral	$2.42B	10.77	9.03%	3.10%	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.

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.