Selective Insurance Group, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Bob Huang from Morgan Stanley reiterated a Sell rating on the stock and has a $73.00 price target.
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Bob Huang has given his Sell rating due to a combination of factors affecting Selective Insurance Group’s financial performance. One of the primary concerns is the company’s commercial auto segment, which has experienced reserve charges and a high combined ratio, suggesting that more pricing adjustments and time are needed to stabilize this area. Additionally, the personal lines segment is facing difficulties, including reserve charges and elevated losses in personal auto, further impacting the company’s overall performance.
Compounding these issues, several lines of business have reported combined ratios exceeding 100%, indicating inefficiencies and potential profitability challenges. Although there was a notable improvement in the E&S segment, with underwriting income and net written premiums surpassing expectations, these positive developments were not sufficient to offset the broader concerns. As a result, Huang maintains a cautious outlook, reiterating the Underweight rating for Selective Insurance Group.
According to TipRanks, Huang is an analyst with an average return of -1.7% and a 47.85% success rate. Huang covers the Financial sector, focusing on stocks such as Progressive, Accelerant Holdings Class A, and Aon.