A Business at a Glance
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SELECTIVE INSURANCE GROUP INC
SIGI
$5.9B
Mkt Cap
$96.33
-1.49%
SELECTIVE INSURANCE GROUP INC (SIGI) has a current P/E ratio of 12.9, compared to its historical median P/E of 15.8. The stock is currently considered Fair based on its historical valuation range.
SELECTIVE INSURANCE GROUP INC (SIGI) has a 5-year average return on invested capital (ROIC) of 9.2%. This is below average and may indicate limited pricing power.
SELECTIVE INSURANCE GROUP INC (SIGI) has a market capitalization of $10.2B. It is classified as a large-cap stock.
Yes, SELECTIVE INSURANCE GROUP INC (SIGI) pays a dividend with a trailing twelve-month yield of 0.93%. The company also returns capital through share buybacks, with a buyback yield of 1.00%.
Based on historical P/E analysis, SELECTIVE INSURANCE GROUP INC (SIGI) appears fair. The current P/E of 12.9 is 18% below its historical median of 15.8. The estimated fair value CAGR (P/E method) is 4.5%.
SELECTIVE INSURANCE GROUP INC (SIGI) operates in the Fire, Marine & Casualty Insurance industry, within the Financials sector.
Selective Insurance Group is a property and casualty insurance holding company founded in 1926 that operates through ten insurance subsidiaries selling exclusively through independent agents and wholesale brokers in the United States. The company operates four reportable segments: Standard Commercial Lines (71% of 2025 revenues, 79% of net premiums written), which serves commercial enterprises, nonprofits, and local governments primarily across 36 states with an average premium per policyholder of approximately $20,600; Standard Personal Lines (8% of revenues, 8% of net premiums written), serving individuals in 15 states with an average premium of approximately $4,100 excluding flood, and including flood insurance sold nationwide through the National Flood Insurance Program's Write Your Own program where Selective is the fourth-largest carrier; E&S Lines (11% of revenues, 13% of net premiums written), serving commercial customers unable to obtain standard market coverage across all 50 states with an average premium of approximately $6,000; and a fourth segment representing the remainder. The company's competitive advantages include an operating model with empowered decision-makers alongside customers and distribution partners, a franchise-value distribution model built on close relationships with high-quality partners, sophisticated technology tools supporting front-line underwriting and claims decisions, an omnichannel customer experience enhanced by people and technology, and a highly engaged employee base. Selective maintains strong financial strength ratings from multiple rating organizations, including an A+ rating from AM Best, and operates with a disciplined underwriting approach focused on achieving target profitability margins rather than premium growth as a primary objective.
【Margin improvement through disciplined underwriting】 Management expects underlying combined ratio improvement in 2026 driven by mix improvement actions that leverage granular risk selection and pricing tools to achieve higher retention on best-performing business and lower retention on poorer-performing business, with casualty pricing expected to remain strong despite potential moderation on property lines. The company anticipates continued strong performance in E&S Lines and improvement in Personal Lines as the portfolio moves closer to long-term target profitability, supported by embedded book yield providing durable investment income even if interest rates decline. Strategic technology investments are expected to continue rising as a percentage of premium to support scale, enhance decision-making, and improve operational efficiency across underwriting, pricing, and claims outcomes, with labor costs as a percentage of premium expected to decline over time as these investments gain traction. Management remains committed to a longer-term perspective on profitability, prioritizing profitable growth within the insurance business while returning 20%-25% of long-term earnings through dividends and opportunistically repurchasing shares.
| Metric | Target | Period |
|---|---|---|
| GAAP combined ratio | 96.5%-97.5% | FY2026 |
| After-tax net investment income | $465 million | FY2026 |
| Effective tax rate | approximately 21.5% | FY2026 |
| Fully diluted weighted average share count | approximately 60.5 million | FY2026 |
| Underlying combined ratio | 90.5%-91.5% | FY2026 |
| Operating ROE | 14% range | FY2026 |
GAAP combined ratio (FY2026): “For 2026, we expect to see a GAAP combined ratio between 96.5% and 97.5%, assuming six points of catastrophe losses.”
After-tax net investment income (FY2026): “We continue to expect after-tax net investment income of $465 million.”
Effective tax rate (FY2026): “Our guidance assumes an effective tax rate of approximately 21.5%”
Fully diluted weighted average share count (FY2026): “a fully diluted weighted average share count of approximately 60.5 million, which reflects first quarter share repurchase activity but does not make assumptions about future activity.”
Underlying combined ratio (FY2026): “we expect our full-year underlying combined ratio to fall within our original 90.5%-91.5% range.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.4B | 5.3B | 4.9B | 4.2B | 3.6B | 3.4B |
| Net Income | 445M | 457M | 198M | 356M | 216M | 394M |
| EPS | $4.20 | $7.49 | $3.23 | $5.84 | $3.54 | $6.50 |
| Free Cash Flow | 1.1B | 1.2B | 1.1B | 736M | 776M | 749M |
| ROIC | 0.0% | 11.2% | 5.6% | 11.0% | 6.6% | 11.6% |
| Gross Margin | - | 11.0% | 5.3% | 10.8% | 7.9% | 15.0% |
| Debt/Equity | 0.25 | 0.25 | 0.16 | 0.17 | 0.20 | 0.17 |
| Dividends/Share | $0.90 | $1.57 | $1.43 | $1.25 | $1.14 | $1.03 |
| Operating Income | 0 | 590M | 258M | 458M | 280M | 505M |
| Operating Margin | 0.0% | 11.0% | 5.3% | 10.8% | 7.9% | 15.0% |
| ROE | 12.4% | 13.6% | 6.5% | 13.0% | 7.8% | 13.8% |
| Shares Outstanding | 106M | 61M | 61M | 61M | 61M | 61M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.0B | 2.1B | 2.3B | 2.5B | 2.6B | 2.8B | 2.9B | 3.4B | 3.6B | 4.2B | 4.9B | 5.3B | 5.4B |
| Gross Margin | 9.7% | 10.9% | 9.6% | 10.6% | 8.2% | 11.8% | 10.4% | 15.0% | 7.9% | 10.8% | 5.3% | 11.0% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 197M | 233M | 220M | 262M | 212M | 336M | 303M | 505M | 280M | 458M | 258M | 590M | 0 |
| Op. Margin | 9.7% | 10.9% | 9.6% | 10.6% | 8.2% | 11.8% | 10.4% | 15.0% | 7.9% | 10.8% | 5.3% | 11.0% | 0.0% |
| Net Income | 142M | 166M | 158M | 169M | 179M | 272M | 246M | 394M | 216M | 356M | 198M | 457M | 445M |
| Net Margin | 7.0% | 7.8% | 6.9% | 6.8% | 6.9% | 9.5% | 8.4% | 11.7% | 6.1% | 8.4% | 4.1% | 8.6% | 8.2% |
| Non-Recurring | 19M | 18M | 8.5M | 3.8M | 6.5M | 3.6M | -22K | -50K | -172K | 6K | -334K | 69K | 69K |
| Returns on Capital | |||||||||||||
| ROIC | 8.9% | 9.8% | 8.6% | 8.2% | 8.2% | 10.9% | 8.2% | 11.6% | 6.6% | 11.0% | 5.6% | 11.2% | 0.0% |
| ROE | 11.7% | 12.4% | 10.8% | 10.4% | 10.2% | 13.6% | 10.0% | 13.8% | 7.8% | 13.0% | 6.5% | 13.6% | 12.4% |
| ROA | 2.2% | 2.5% | 2.2% | 2.2% | 2.3% | 3.2% | 2.7% | 3.9% | 2.0% | 3.2% | 1.6% | 3.2% | 2.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 233M | 382M | 330M | 380M | 455M | 477M | 554M | 771M | 802M | 759M | 1.1B | 1.2B | 1.2B |
| Free Cash Flow | 217M | 365M | 311M | 365M | 439M | 447M | 532M | 749M | 776M | 736M | 1.1B | 1.2B | 1.1B |
| Owner Earnings | 211M | 356M | 302M | 350M | 421M | 440M | 516M | 731M | 759M | 716M | 1.1B | 1.2B | 840M |
| CapEx | 16M | 16M | 18M | 14M | 16M | 31M | 22M | 22M | 26M | 23M | 31M | 39M | 37M |
| Maint. CapEx | 13M | 16M | 17M | 18M | 20M | 19M | 22M | 24M | 25M | 25M | 27M | 26M | 307M |
| Growth CapEx | 2.9M | 0 | 747K | 0 | 0 | 12M | 564K | 0 | 1.4M | 0 | 4.3M | 12M | 0 |
| D&A | 13M | 16M | 17M | 18M | 20M | 19M | 22M | 24M | 25M | 25M | 27M | 26M | 307M |
| CapEx/OCF | 6.7% | 4.3% | 6.0% | 3.7% | 3.5% | 6.5% | 4.0% | 2.9% | 3.2% | 3.0% | 2.8% | 3.1% | 3.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 28M | 31M | 34M | 37M | 42M | 48M | 54M | 60M | 67M | 74M | 85M | 93M | 95M |
| Dividend Yield | 2.5% | 2.1% | 1.8% | 1.4% | 1.3% | 1.3% | 1.7% | 1.4% | 1.4% | 1.3% | 1.5% | 1.8% | 0.9% |
| Share Buybacks | 3.6M | 4.2M | 5.0M | 6.0M | 6.6M | 8.2M | 7.1M | 9.1M | 18M | 7.9M | 16M | 93M | 102M |
| Buyback Yield | 0.3% | 0.2% | 0.2% | 0.2% | 0.2% | 0.2% | 0.2% | 0.2% | 0.4% | 0.1% | 0.3% | 1.8% | 1.0% |
| Stock-Based Comp | 8.7M | 9.0M | 10M | 12M | 15M | 19M | 16M | 16M | 18M | 18M | 23M | 23M | 23M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 50M | 60M | 20M | 0 | 100K | 100K |
| Balance Sheet | |||||||||||||
| Net Debt | -3.7B | -4.0B | -4.4B | -4.8B | -4.8B | -5.6B | -5.9B | -6.2B | -6.1B | -7.0B | -7.7B | -8.6B | 439M |
| Cash & Equiv. | 24M | 13M | 37M | 44M | 16M | 7.7M | 15M | 45M | 25M | 13M | 63M | 18M | 463M |
| Long-Term Debt | 373M | 328M | 439M | 439M | 440M | 551M | 551M | 506M | 505M | 504M | 508M | 902M | 901M |
| Debt/Equity | 0.29 | 0.28 | 0.29 | 0.26 | 0.25 | 0.25 | 0.20 | 0.17 | 0.20 | 0.17 | 0.16 | 0.25 | 0.25 |
| Interest Coverage | 8.5 | 10.4 | 9.7 | 10.8 | 8.7 | 10.0 | 9.8 | 17.3 | 9.7 | 15.9 | 8.9 | 12.0 | 12.0 |
| Equity | 1.3B | 1.4B | 1.5B | 1.7B | 1.8B | 2.2B | 2.7B | 3.0B | 2.5B | 3.0B | 3.1B | 3.6B | 3.6B |
| Total Assets | 6.6B | 6.9B | 7.4B | 7.7B | 8.0B | 8.8B | 9.7B | 10.5B | 10.8B | 11.8B | 13.5B | 15.2B | 15.3B |
| Total Liabilities | 5.3B | 5.5B | 5.8B | 6.0B | 6.2B | 6.6B | 6.9B | 7.5B | 8.3B | 8.8B | 10.4B | 11.5B | 11.7B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 1.3B | 1.4B | 1.6B | 1.7B | 1.9B | 2.1B | 2.3B | 2.6B | 2.7B | 3.0B | 3.1B | 3.5B | 3.6B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 2.47 | 2.85 | 2.70 | 2.84 | 3.00 | 4.53 | 4.09 | 6.50 | 3.54 | 5.84 | 3.23 | 7.49 | 4.20 |
| Owner EPS | 3.68 | 6.12 | 5.14 | 5.88 | 7.06 | 7.33 | 8.57 | 12.05 | 12.46 | 11.74 | 17.16 | 19.39 | 7.91 |
| Book Value | 22.22 | 24.02 | 26.09 | 28.82 | 30.04 | 36.61 | 45.47 | 49.15 | 41.48 | 48.46 | 50.95 | 59.12 | 33.78 |
| Cash Flow/Share | 4.05 | 6.56 | 5.61 | 6.38 | 7.63 | 7.96 | 9.20 | 12.71 | 13.17 | 12.45 | 17.96 | 20.20 | 7.08 |
| Dividends/Share | 0.53 | 0.57 | 0.61 | 0.66 | 0.74 | 0.83 | 0.94 | 1.03 | 1.14 | 1.25 | 1.43 | 1.57 | 0.90 |
| Shares Out. | 57.4M | 58.2M | 58.7M | 59.4M | 59.6M | 60.0M | 60.2M | 60.7M | 60.9M | 61.0M | 61.2M | 61.0M | 106.2M |
| Valuation | |||||||||||||
| P/E Ratio | 9.2 | 10.3 | 13.9 | 18.3 | 17.9 | 13.0 | 15.2 | 11.8 | 23.9 | 16.4 | 28.4 | 11.2 | 22.9 |
| P/FCF | 6.0 | 4.7 | 7.1 | 8.5 | 7.3 | 7.9 | 7.0 | 6.2 | 6.6 | 7.9 | 5.2 | 4.3 | 9.0 |
| EV/EBIT | 6.9 | 7.5 | 10.0 | 11.6 | 14.0 | 10.2 | 11.6 | 8.9 | 17.3 | 13.7 | 22.0 | 9.9 | N/A |
| Price/Book | 1.0 | 1.2 | 1.4 | 1.8 | 1.8 | 1.6 | 1.4 | 1.6 | 2.0 | 2.0 | 1.8 | 1.4 | 2.9 |
| Price/Sales | 0.6 | 0.7 | 0.8 | 1.1 | 1.2 | 1.3 | 1.1 | 1.3 | 1.4 | 1.4 | 1.2 | 0.9 | 1.9 |
| FCF Yield | 16.6% | 21.3% | 14.1% | 11.8% | 13.7% | 12.6% | 14.2% | 16.1% | 15.1% | 12.6% | 19.1% | 23.4% | 11.1% |
| Market Cap | 1.3B | 1.7B | 2.2B | 3.1B | 3.2B | 3.5B | 3.7B | 4.6B | 5.2B | 5.8B | 5.6B | 5.1B | 10.2B |
| Avg. Price | 20.15 | 25.67 | 32.27 | 44.55 | 53.67 | 63.37 | 51.81 | 71.02 | 79.05 | 94.77 | 93.66 | 82.76 | 96.33 |
| Year-End Price | 22.81 | 29.44 | 37.59 | 51.96 | 53.78 | 58.87 | 62.02 | 76.62 | 84.66 | 95.70 | 91.58 | 83.62 | 96.33 |
SELECTIVE INSURANCE GROUP INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
SELECTIVE INSURANCE GROUP INC trades at 12.9x trailing earnings, compared to its 15-year median P/E of 15.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 4.8x vs a median of 7.1x. The company's 5-year average ROIC is 9.2% with a gross margin of 10.0%. Total shareholder yield (dividends + buybacks) is 1.9%. At current prices, the estimated annualized return to fair value is +14.5%.
SELECTIVE INSURANCE GROUP INC (SIGI) reported annual revenue of $5.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
SELECTIVE INSURANCE GROUP INC (SIGI) has a net profit margin of 8.6%. This is a modest margin.
SELECTIVE INSURANCE GROUP INC (SIGI) generated $1.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SELECTIVE INSURANCE GROUP INC (SIGI) has a debt-to-equity ratio of 0.25. This indicates a conservatively financed balance sheet.
SELECTIVE INSURANCE GROUP INC (SIGI) reported earnings per share (EPS) of $7.49 in its most recent fiscal year.
SELECTIVE INSURANCE GROUP INC (SIGI) has a return on equity (ROE) of 13.6%. This indicates moderate shareholder returns.
SELECTIVE INSURANCE GROUP INC (SIGI) has a 5-year average gross margin of 10.0%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for SELECTIVE INSURANCE GROUP INC (SIGI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SELECTIVE INSURANCE GROUP INC (SIGI) has a book value per share of $59.12, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects underlying combined ratio improvement in 2026 driven by mix improvement actions that leverage granular risk selection and pricing tools to achieve higher retention on best-performing business and lower retention on poorer-performing business, with casualty pricing expected to remain strong despite potential moderation on property lines. The company anticipates continued strong performance in E&S Lines and improvement in Personal Lines as the portfolio moves closer to long-term target profitability, supported by embedded book yield providing durable investment income even if interest rates decline. Strategic technology investments are expected to continue rising as a percentage of premium to support scale, enhance decision-making, and improve operational efficiency across underwriting, pricing, and claims outcomes, with labor costs as a percentage of premium expected to decline over time as these investments gain traction. Management remains committed to a longer-term perspective on profitability, prioritizing profitable growth within the insurance business while returning 20%-25% of long-term earnings through dividends and opportunistically repurchasing shares.
Based on recent SEC filings and earnings calls, SELECTIVE INSURANCE GROUP INC (SIGI) has provided the following forward guidance: GAAP combined ratio: 96.5%-97.5% (FY2026); After-tax net investment income: $465 million (FY2026); Effective tax rate: approximately 21.5% (FY2026); Fully diluted weighted average share count: approximately 60.5 million (FY2026); Underlying combined ratio: 90.5%-91.5% (FY2026), plus 1 additional metric.
Operating ROE (FY2026): “With expected strong investment income, our 2026 guidance implies an operating ROE in the 14% range.”