SIGI - Selective Insurance: Time To Be Selective
2024-05-09 03:33:37 ET
Summary
- Selective Insurance Group demonstrated consistent performance in its non-life insurance business, with post-tax earnings of $365 million in 2023.
- The company's commercial lines and excess and surplus insurance segments have shown resilience and stability, while the personal lines segment has faced challenges.
- Despite challenges such as inflationary pressures, the company is well-positioned to navigate through these hurdles, but its stock price reflects little to no safety margin.
- After Q1 2024, the company is positioned well to deliver steady results throughout 2024, despite revising its FY2024 guidance downward to account for potential risks associated with the claims trend.
- As the company remains priced for perfection, I rate the insurance carrier as a "HOLD".
Executive Summary
Selective Insurance Group, Inc. ( SIGI ) operates as a super-regional property and casualty carrier, with three main segments: personal lines, commercial lines, and excess and surplus insurance business. In 2023, Selective Insurance Group demonstrated consistent performance in its non-life insurance business, reporting post-tax earnings of $365 million, a significant increase from the approximately $225 million recorded in 2022....
Selective Insurance: Time To Be Selective