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Selective Insurance Group (SIGI) AI Stock Analysis
Selective Insurance Group
(NASDAQ:SIGI)
SIGI scores well primarily due to solid financial quality (low leverage, healthy ROE, and strong cash generation) and supportive valuation (P/E ~11.6). The score is tempered by the sharp TTM revenue decline and technically overbought momentum signals (RSI/Stoch elevated), while the earnings call adds a positive tilt via improved underwriting performance and raised investment-income outlook alongside disciplined capital returns.
Selective Insurance Group (SIGI) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $5.89B
- Dividend Yield
- 1.74%
- Average Volume (3M)
- 464.94K
- Price to Earnings (P/E)
- 11.8
- Beta (1Y)
- 0.29
- Revenue Growth
- 4.50%
- EPS Growth
- 28.39%
- Country
- US
- Employees
- 2,800
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Insurance - Property & Casualty
Selective Insurance Group Business Overview & Revenue Model
Company Description
Selective Insurance Group, Inc. (SIGI) is a U.S.-based company that delivers a wide array of insurance products and services. Its business operations are structured across four primary divisions: Standard Commercial Lines, Standard Personal Lines, Ex...
How the Company Makes Money
SIGI generates earnings primarily through its insurance underwriting operations and its investment portfolio. 1) Underwriting revenue (insurance operations) - Premiums: The core source of revenue is written and earned premiums from property and casua...
Selective Insurance Group Earnings Call Summary
The call was predominantly positive, supported by strong quarterly earnings, a 16.9% operating ROE, improved underwriting margins, higher investment income, stable casualty reserves, capital strength, a 12% dividend increase, and progress in E&S, Personal Lines, distribution, and technology initiatives. The main challenges were declining commercial and auto premium volume, weak retention in underperforming cohorts, elevated casualty severity and profitability pressure, a higher expense ratio, competitive pricing conditions, and a decline in GAAP book value per share. Highlights significantly outweighed the lowlights.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Selective continues to expect a full-year GAAP combined ratio between 96.5% and 97.5%, assuming 5.5 points of catastrophe losses, which is down from six points a quarter ago; the assumption for the underlying loss ratio is unchanged from last quarter, and the fourth quarter combined ratio is expected to be closer to the middle of the range. The full-year underwriting expense ratio is expected to be approximately 31.5%, implying a fourth quarter expense ratio of approximately 32%, while after-tax net investment income is expected to be $490 million, up from $480 million. Guidance assumes an effective tax rate of 21.5% and a fully diluted weighted average share count of 59.9 million, reflecting year-to-date repurchases. Regarding Hurricane Isaias, it is too early to provide specific estimates, but losses from the event are expected to be immaterial to results. The company targets returning 20%-25% of earnings through regular dividends and has approximately $253 million of total available share repurchase capacity.
Selective Insurance Group Financial Statement Overview
Summary
Fundamentals are generally solid: conservative leverage (debt-to-equity ~0.26), healthy ROE (~14%), and strong cash generation (TTM OCF/FCF both >$1.1B with FCF ~95% of net income). The main drag is the sharp TTM revenue decline (~62%) and historical margin volatility, which increase near-term top-line and underwriting sensitivity risk.
Income Statement
64PositiveBalance Sheet
78PositiveCash Flow
71Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.43B | 5.34B | 4.86B | 4.23B | 3.56B | 3.38B |
| Gross Profit | 3.04B | 2.18B | 321.30M | 518.07M | 340.26M | 562.78M |
| EBITDA | 672.67M | 671.59M | 321.71M | 517.25M | 351.37M | 589.58M |
| Net Income | 510.94M | 466.41M | 207.01M | 365.24M | 224.89M | 403.84M |
Balance Sheet | ||||||
| Total Assets | 15.71B | 14.13B | 12.36B | 11.08B | 9.96B | 9.82B |
| Cash, Cash Equivalents and Short-Term Investments | 10.58B | 17.96M | 63.02M | 13.27M | 25.21M | 45.06M |
| Total Debt | 901.52M | 1.01B | 555.67M | 547.62M | 549.18M | 543.35M |
| Total Liabilities | 12.27B | 10.52B | 9.24B | 8.12B | 7.44B | 6.84B |
| Stockholders Equity | 3.45B | 3.61B | 3.12B | 2.95B | 2.53B | 2.98B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.19B | 1.07B | 736.28M | 776.39M | 749.26M |
| Operating Cash Flow | 1.19B | 1.23B | 1.10B | 758.91M | 802.41M | 771.42M |
| Investing Cash Flow | -945.68M | -1.49B | -947.38M | -686.36M | -734.45M | -618.78M |
| Financing Cash Flow | -257.04M | 207.48M | -102.75M | -84.49M | -87.82M | -122.81M |
Selective Insurance Group Technical Analysis
Price Trends
Market Momentum
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 98.83 is above the 20-day moving average (MA) of 90.35, above the 50-day MA of 89.61, and above the 200-day MA of 87.07, indicating a bullish trend. The MACD of 3.02 indicates Negative momentum. The RSI at 74.97 is Negative, neither overbought nor oversold. The STOCH value of 80.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIGI.
Selective Insurance Group Risk Analysis
Selective Insurance Group disclosed 20 risk factors in its most recent earnings report. Selective Insurance Group reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksSelective Insurance Group Peers Comparison
Overall Rating
TRV84Outperform
THG83Outperform
ERIE82Outperform
CINF81Outperform
AFG77Outperform- SIGI74Outperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TRV | 84Outperform | $81.20B | 10.23 | 26.24% | 1.19% | 1.07% | 50.02% |
| THG | 83Outperform | $8.32B | 11.41 | 21.03% | 1.57% | 5.04% | 21.26% |
| ERIE | 82Outperform | $12.17B | 30.90 | 23.86% | 2.24% | 1.97% | -11.09% |
| CINF | 81Outperform | $27.81B | 10.60 | 16.53% | 2.04% | 9.91% | 26.90% |
| AFG | 77Outperform | $12.76B | 13.44 | 20.01% | 4.62% | -1.43% | 25.53% |
| SIGI | 74Outperform | $5.83B | 11.85 | 14.29% | 1.74% | 4.50% | 28.39% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SIGI | Selective Insurance | 98.83 | 26.27 | 36.20% | |
| AFG | American Financial | 153.87 | 30.13 | 24.35% | |
| CINF | Cincinnati Financial | 181.19 | 30.91 | 20.57% | |
| ERIE | Erie Indemnity | 261.39 | -17.38 | -6.24% | |
| THG | The Hanover Insurance | 242.09 | 74.68 | 44.60% | |
| TRV | Travelers Companies Inc | 396.22 | 132.59 | 50.29% |
Selective Insurance Group Corporate Events
Selective Insurance Group Boosts Profitability and Shareholder Returns
PositiveSelective Insurance Group, Inc., based in Short Hills, N.J., is a property and casualty insurer listed on Nasdaq under the ticker SIGI. The company focuses on underwriting commercial lines and related insurance products, combining disciplined pricing...
Selective Insurance Expands Board, Reappoints Independent Director
PositiveOn September 16, 2026, Selective Insurance Group expanded its Board of Directors from 12 to 13 members and reappointed Wole C. Coaxum as a non-employee, independent director, with his term running until the 2027 annual shareholders’ meeting. Co...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 24, 2026