NasdaqGS:SIGI

Stock Analysis Report

Selective Insurance Group

Executive Summary

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States.


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has Selective Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SIGI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.9%

SIGI

-6.1%

US Insurance

-2.0%

US Market


1 Year Return

-29.4%

SIGI

-25.5%

US Insurance

-15.1%

US Market

Return vs Industry: SIGI underperformed the US Insurance industry which returned -25.5% over the past year.

Return vs Market: SIGI underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

SIGIIndustryMarket
7 Day-3.9%-6.1%-2.0%
30 Day-15.7%-28.4%-19.7%
90 Day-28.6%-33.3%-23.2%
1 Year-28.6%-29.4%-23.6%-25.5%-13.4%-15.1%
3 Year8.9%5.0%-11.8%-18.7%10.9%3.7%
5 Year77.0%64.8%10.6%-2.8%28.4%14.4%

Price Volatility Vs. Market

How volatile is Selective Insurance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Selective Insurance Group undervalued compared to its fair value and its price relative to the market?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIGI ($46.97) is trading below our estimate of fair value ($88.49)

Significantly Below Fair Value: SIGI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SIGI is poor value based on its PE Ratio (10.3x) compared to the Insurance industry average (8.2x).

PE vs Market: SIGI is good value based on its PE Ratio (10.3x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: SIGI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SIGI is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

How is Selective Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIGI's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: SIGI's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: SIGI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SIGI's revenue (5.1% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: SIGI's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIGI's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Selective Insurance Group performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIGI has high quality earnings.

Growing Profit Margin: SIGI's current net profit margins (9.5%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SIGI's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: SIGI's earnings growth over the past year (51.8%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: SIGI earnings growth over the past year (51.8%) exceeded the Insurance industry 43.7%.


Return on Equity

High ROE: SIGI's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Selective Insurance Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SIGI has a low level of unsold assets or inventory.

Debt Coverage by Assets: SIGI's debt is covered by short term assets (assets are 3.5x debt).


Financial Institutions Analysis

Asset Level: SIGI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SIGI has a sufficient allowance for bad loans.

Low Risk Liabilities: SIGI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SIGI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SIGI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SIGI has an appropriate level of bad loans.


Next Steps

Dividend

What is Selective Insurance Group's current dividend yield, its reliability and sustainability?

1.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIGI's dividend (1.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: SIGI's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (5.71%).


Stability and Growth of Payments

Stable Dividend: SIGI's dividends per share have been stable in the past 10 years.

Growing Dividend: SIGI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.2%), SIGI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIGI's dividends in 3 years are forecast to be well covered by earnings (23.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

John Marchioni (49yo)

0.17

Tenure

US$4,408,500

Compensation

Mr. John Joseph Marchioni, CPCU, has been the President of Selective Insurance Group Inc. since September 10, 2013 and serves as Chief Executive Officer since February 1, 2020. Mr. Marchioni served as Chie ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.41M) is about average for companies of similar size in the US market ($USD5.69M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Murphy
Executive Chairman19.92yrsUS$7.95m0.48% $13.5m
John Marchioni
CEO, President & Employee Director0.17yrUS$4.41m0.24% $6.9m
Mark Wilcox
Executive VP & CFO3.25yrsUS$2.65m0.050% $1.4m
Michael Lanza
Executive VP15.75yrsUS$2.07m0.051% $1.4m
Joseph Eppers
Senior VP & Chief Investment Officerno datano datano data
Anthony Harnett
Senior VP & Chief Accounting Officer2.25yrsno datano data
Gordon Gaudet
Executive VP & Chief Information Officer6.92yrsno datano data
Rohan Pai
Senior VP of Investor Relations & Treasurerno datano datano data
Charles Musilli
Executive VP & Chief Human Resources Officer2.25yrsno datano data
Jeffrey Kamrowski
Executive Vice President of MUSICno datano datano data

2.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SIGI's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Murphy
Executive Chairman19.92yrsUS$7.95m0.48% $13.5m
John Marchioni
CEO, President & Employee Director0.17yrUS$4.41m0.24% $6.9m
Michael Morrissey
Independent Director12yrsUS$200.09k0.030% $827.9k
Ronald O'Kelley
Independent Director15.25yrsUS$180.05k0.13% $3.6m
John Burville
Independent Director14.25yrsUS$192.54k0.13% $3.7m
J. Thebault
Lead Independent Director3yrsUS$217.54k0.10% $2.9m
William Rue
Non-Independent Director42.92yrsUS$172.54k0.56% $15.7m
Cynthia Nicholson
Independent Director10.67yrsUS$177.60k0.031% $880.3k
John Scheid
Independent Director5.58yrsUS$202.60k0.030% $834.6k
Robert Doherty
Independent Director4.42yrsUS$202.54k0.032% $907.8k

11.3yrs

Average Tenure

65yo

Average Age

Experienced Board: SIGI's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Selective Insurance Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Selective Insurance Group, Inc.
  • Ticker: SIGI
  • Exchange: NasdaqGS
  • Founded: 1926
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$2.804b
  • Shares outstanding: 59.71m
  • Website: https://www.selective.com

Number of Employees


Location

  • Selective Insurance Group, Inc.
  • 40 Wantage Avenue
  • Branchville
  • New Jersey
  • 07890-1000
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIGINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1980
SV2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. It operates through four segments: Standard Commercial Lines, Standard Personal Lines, Excess and Surplus Lines, and Investments. The company offers property insurance products, which covers the financial consequences of accidental loss of an insured’s real and/or personal property; and casualty insurance products that covers the financial consequences of employee injuries in the course of employment, and bodily injury and/or property damage to a third party as a result of an insured’s negligent acts, omissions, or legal liabilities, as well as flood insurance products. It also invests in fixed income investments and preferred stocks, equity securities, and alternative investment portfolio. The company provides its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. Selective Insurance Group, Inc. was founded in 1926 and is headquartered in Branchville, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 05:06
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.