Selective Insurance Group, Inc.
- Open
- 96.66
- Day high
- 97.64
- Day low
- 96.22
- Prev close
- 96.46
- Volume
- 369K
- Mkt cap
- $5.8B
- P/E (TTM)
- 13.2
- EPS (TTM)
- $7.34
- P/B
- 1.6
- P/S
- 1.1
- Yield
- 0.89%
- Per share
- $0.86
Selective Insurance Group, Inc. (SIGI) is a Financial Services company listed on NASDAQ. The stock is up 10% over the past year.
Selective Insurance Group, Inc. (SIGI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 6 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SIGI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $1.80 | $1.69 | -6.1% | $1.2B | -5.1% |
| Jan 29, 2026 | $2.24 | $2.57 | +14.7% | $1.4B | -0.8% |
| Oct 22, 2025 | $1.85 | $1.75 | -5.4% | $1.4B | +0.8% |
| Jul 23, 2025 | $1.55 | $1.31 | -15.5% | $1.3B | -1.5% |
| Apr 23, 2025 | $1.89 | $1.76 | -6.9% | $1.3B | -1.7% |
| Jan 29, 2025 | $1.99 | $1.62 | -18.6% | $1.3B | -1.2% |
| Jul 18, 2024 | $1.56 | $-1.10 | -170.5% | $1.2B | +2.2% |
| May 1, 2024 | $1.86 | $1.33 | -28.5% | $1.2B | +3.9% |
| Jan 31, 2024 | $1.94 | $1.94 | +0.0% | $1.1B | +1.0% |
| Nov 1, 2023 | $1.58 | $1.51 | -4.4% | $1.1B | +7.3% |
| Aug 2, 2023 | $0.99 | $0.99 | +0.0% | $1.0B | +0.6% |
| May 3, 2023 | $1.59 | $1.44 | -9.4% | $1000M | +2.6% |
SIGI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 4, 2026 | DOHERTY ROBERT KELLYdirector | Grant | 1,767 | — |
| May 4, 2026 | Nicholson Cynthia Sdirector | Grant | 1,767 | — |
| May 4, 2026 | Parsons Juliedirector | Grant | 1,767 | — |
| May 4, 2026 | Aijala Ainar D JRdirector | Grant | 1,767 | — |
| May 4, 2026 | SCHEID JOHN STEPHENdirector | Grant | 1,767 | — |
| May 4, 2026 | Sampson Katedirector | Grant | 1,767 | — |
| May 4, 2026 | Bacus Lisa Rdirector | Grant | 1,767 | — |
| May 4, 2026 | McCarthy Thomas Adirector | Grant | 3,047 | — |
| May 4, 2026 | Mills Stephendirector | Grant | 1,767 | — |
| May 4, 2026 | Mitchell H Elizabethdirector | Grant | 1,767 | — |
| May 4, 2026 | Cavanaugh Terrence Wdirector | Grant | 3,047 | — |
| Feb 17, 2026 | Harnett Anthony D.officer: SVP, Chief Accounting Officer | Sell | 1,064 | $87.33 |
| Feb 10, 2026 | Harnett Anthony D.officer: SVP, Chief Accounting Officer | Tax | 711 | $90.10 |
| Feb 10, 2026 | Lanza Michael Hofficer: EVP and General Counsel | Grant | 4,260 | — |
| Feb 10, 2026 | Harnett Anthony D.officer: SVP, Chief Accounting Officer | Grant | 1,775 | — |
Source: SIGI SEC Form 4 filings, latest May 4, 2026. For informational purposes only — not investment advice.
See the full SIGI insider & 13F page →Selective Insurance Group, Inc. company profile
Overview
Selective Insurance Group, Inc. (NASDAQ:SIGI) is a regional property and casualty insurance company founded in 1926 and headquartered in Branchville, New Jersey. The company has evolved from a local New Jersey insurer into a multi-state operation serving 35 states across the United States. Selective went public in 1980 and has built a reputation as a disciplined underwriter focused on profitable growth rather than market share expansion. The company operates through independent agents and has maintained consistent profitability through multiple insurance cycles by emphasizing underwriting discipline and selective risk acceptance.
Business
Selective Insurance Group operates in the property and casualty insurance industry, which provides financial protection against various risks that individuals and businesses face. Property insurance covers physical damage to buildings, equipment, and personal belongings from events like fires, storms, or theft, while casualty insurance protects against legal liability when someone is injured or their property is damaged due to the policyholder's actions. The company operates through four main business segments: Standard Commercial Lines represents the largest segment, generating approximately 70% of total revenue. This division provides insurance coverage to small and medium-sized businesses, including general liability (protection against lawsuits from third-party injuries or property damage), commercial property (coverage for business buildings and contents), workers' compensation (mandatory coverage for employee workplace injuries), and commercial auto insurance. The company focuses on businesses with annual revenues typically under $25 million. Excess and Surplus (E&S) Lines accounts for roughly 15% of revenue and serves as the company's specialty insurance arm. This segment writes coverage for risks that standard insurance markets won't accept due to their unique or complex nature. E&S insurance operates under different regulatory frameworks, allowing more flexible pricing and policy terms. This includes coverage for businesses in high-risk industries, unusual property types, or companies with challenging loss histories. Standard Personal Lines generates approximately 10% of revenue, providing auto and homeowners insurance to individual consumers. Selective has been strategically repositioning this segment to focus on the "mass affluent" market - higher-income households that typically present better risk profiles and generate higher profit margins than average consumers. Investments represents the remaining 5% of revenue through the company's investment portfolio, which includes corporate bonds, municipal bonds, commercial mortgage loans, and equity securities. Insurance companies collect premiums upfront and pay claims later, creating investment "float" that generates additional income.
Revenue model
Selective Insurance Group generates revenue through two primary mechanisms: insurance premiums and investment income. The insurance business operates on the principle of collecting premiums from policyholders upfront while paying claims over time, creating a pool of funds (called "float") that can be invested to generate additional returns. Premium Revenue constitutes approximately 95% of total revenue, earned by charging customers for insurance coverage. Customers include small and medium businesses, non-profit organizations, local government agencies, and individual consumers who purchase policies through independent insurance agents. The company does not sell directly to consumers but relies on a network of independent retail agents and wholesale general agents who receive commissions for placing business with Selective. Investment Income provides the remaining 5% of revenue from the company's $10+ billion investment portfolio. This income comes from interest on bonds, dividends from stocks, and returns from alternative investments. The investment portfolio is primarily composed of high-grade corporate and municipal bonds, with smaller allocations to commercial mortgage loans and equity securities. The company's profitability depends heavily on maintaining a combined ratio below 100%, which measures total claims and expenses as a percentage of premium revenue. A combined ratio below 100% indicates underwriting profit, while above 100% represents an underwriting loss. Selective targets combined ratios at or below 95% across its insurance segments. Several factors can significantly impact margins: Social inflation - the tendency for legal awards and settlements to increase faster than general economic inflation - has been a major headwind, particularly affecting general liability claims. Catastrophic weather events like hurricanes, hailstorms, and severe convective storms can cause large, unpredictable losses. Interest rate changes affect both sides of the business - higher rates increase investment income but can reduce the present value of future claim payments. Loss frequency and severity trends in areas like auto accidents or workplace injuries directly impact profitability, while competitive pricing pressure can force the company to choose between maintaining rates and losing business volume.
Competitive moat
Selective Insurance Group operates in a commodity-like industry where insurance products are largely standardized, creating limited differentiation opportunities. However, the company has developed several modest competitive advantages that provide some protection against competition. The company's primary moat stems from its disciplined underwriting culture and selective risk acceptance philosophy. Unlike competitors focused on growth, Selective has consistently prioritized profitability over market share, allowing it to maintain superior combined ratios through insurance cycles. This discipline is embedded in the company's culture and decision-making processes, having been reinforced over nearly a century of operations. Geographic market knowledge provides another advantage, as Selective has deep expertise in the specific regulatory, legal, and economic conditions of its 35-state footprint. The company's gradual state-by-state expansion strategy allows it to develop local expertise and agent relationships before entering new markets, rather than attempting rapid national expansion. The company's independent agent distribution network creates switching costs and relationship advantages. These agents have invested time in learning Selective's underwriting guidelines, claims processes, and technology systems. Strong agent relationships also provide valuable market intelligence and help maintain customer retention rates around 85% in commercial lines. However, Selective's moat is relatively narrow. The insurance industry faces significant competitive pressures from larger national carriers with greater scale advantages, direct-to-consumer insurers with lower cost structures, and well-capitalized competitors who can undercut pricing during soft market cycles. Technology disruption poses long-term risks, as insurtech companies develop new underwriting models using artificial intelligence and alternative data sources. Additionally, Selective's regional focus, while providing local expertise, limits its ability to diversify risks geographically and may constrain growth opportunities compared to national competitors. The company's specialty E&S business offers somewhat stronger competitive positioning due to the complex, relationship-driven nature of surplus lines markets, but this segment remains relatively small compared to standard lines operations.
Risks & safety
Selective Insurance Group demonstrates a strong financial position with adequate margins of safety, though recent reserve strengthening has created some near-term pressures. • Solvency and Liquidity: Excellent current ratio of 180.7x and minimal debt-to-equity ratio of 27.7% indicate strong financial stability. The company maintains over $3.3 billion in GAAP equity and generates consistent positive operating cash flows exceeding $1 billion annually. • Capital Adequacy: Strong capital position with regulatory capital ratios well above required minimums. Free cash flow of $271 million in Q1 2025 provides flexibility for dividends, share repurchases, and growth investments. • Valuation Metrics: Trading at reasonable multiples with P/E ratio of 12.7x and price-to-book ratio of 1.71x. EV/EBITDA of 10.9x appears reasonable for a profitable regional insurer. • Reserve Risks: Recent general liability reserve strengthening of $176 million in 2024 raises questions about reserve adequacy, though management maintains confidence in current reserving practices. The company carries risk margins above actuarial best estimates. • Operating Performance: Return on equity of 14.4% and operating ROE targets of 12-15% demonstrate consistent profitability. Combined ratio guidance of 96-97% suggests continued underwriting discipline. • Other Considerations: Geographic concentration in certain states creates catastrophe exposure, while social inflation trends pose ongoing margin pressure in casualty lines.
Recent development
Over the past several years, Selective has executed a focused strategy of profitable geographic expansion and business mix optimization. The company has systematically expanded its Standard Commercial Lines footprint, adding 13 new states since 2017, including recent additions of Washington, Oregon, Nevada, Vermont, Idaho, and Alabama. Management plans to enter Kansas, Montana, and Wyoming within the next two years, bringing the total footprint to 38 states. The company has strategically repositioned its Personal Lines segment toward the mass affluent market, focusing on higher-income households that typically generate better profit margins and lower loss ratios than average consumers. This transition involved significant rate increases, with renewal pure pricing reaching over 20% in recent quarters, deliberately sacrificing some policy count growth to improve profitability. Technology investments have been a major focus, with Selective implementing new automation platforms for commercial lines and E&S business operations. The company is investing in artificial intelligence for underwriting and claims processing to improve efficiency and risk selection. These technology enhancements support the company's expansion strategy by enabling consistent underwriting standards across multiple states. The Excess and Surplus Lines segment has emerged as a significant growth driver, with net premiums written increasing 39% in 2024 to exceed $500 million. This specialty business benefits from higher margins and less regulatory constraints, allowing more flexible pricing in hard market conditions. In response to challenging loss trends, particularly in general liability coverage, Selective has implemented aggressive pricing strategies with renewal pure pricing increases reaching double digits across most lines of business. The company has also strengthened reserves by $176 million in 2024, primarily for general liability claims from accident years 2020-2023, reflecting the industry-wide impact of social inflation on casualty losses.
SIGI company profile · for informational purposes only — not investment advice.
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