NasdaqGS:SIGI

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Selective Insurance Group

Executive Summary

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

Rewards

Trading at 7.8% below our estimate of its fair value

Earnings are forecast to grow 25.11% per year

Pays a reliable dividend of 1.7%

Risk Analysis

No risks detected for SIGI from our risk checks.


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

SIGI

0.5%

US Insurance

-1.4%

US Market


1 Year Return

-25.1%

SIGI

-11.5%

US Insurance

17.8%

US Market

Return vs Industry: SIGI underperformed the US Insurance industry which returned -12.8% over the past year.

Return vs Market: SIGI underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

SIGIIndustryMarket
7 Day2.7%0.5%-1.4%
30 Day8.9%4.5%4.7%
90 Day-6.2%0.2%8.2%
1 Year-23.9%-25.1%-9.1%-11.5%20.5%17.8%
3 Year-3.7%-7.5%0.7%-6.5%42.2%32.7%
5 Year59.9%48.9%36.4%19.2%83.4%62.7%

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?

7.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIGI ($54.23) is trading below our estimate of fair value ($58.82)

Significantly Below Fair Value: SIGI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SIGI is poor value based on its PE Ratio (17.3x) compared to the US Insurance industry average (14.1x).

PE vs Market: SIGI is good value based on its PE Ratio (17.3x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: SIGI is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SIGI is overvalued based on its PB Ratio (1.4x) compared to the US Insurance industry average (0.9x).


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?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIGI's forecast earnings growth (25.1% per year) is above the savings rate (2.2%).

Earnings vs Market: SIGI's earnings (25.1% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SIGI's revenue (5.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: SIGI's revenue (5.4% 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 (10.3%).


Next Steps

Past Performance

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

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIGI has high quality earnings.

Growing Profit Margin: SIGI's current net profit margins (6.7%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: SIGI's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: SIGI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SIGI had negative earnings growth (-20.2%) over the past year, making it difficult to compare to the Insurance industry average (-3.3%).


Return on Equity

High ROE: SIGI's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Selective Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: SIGI's short term assets ($2.0B) do not cover its short term liabilities ($6.1B).

Long Term Liabilities: SIGI's short term assets ($2.0B) exceed its long term liabilities ($869.2M).


Debt to Equity History and Analysis

Debt Level: SIGI's debt to equity ratio (34.6%) is considered satisfactory.

Reducing Debt: SIGI's debt to equity ratio has increased from 30.1% to 34.6% over the past 5 years.

Debt Coverage: SIGI's debt is well covered by operating cash flow (64.1%).

Interest Coverage: SIGI's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIGI's dividend (1.7%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: SIGI's dividend (1.7%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 reasonably low payout ratio (28.3%), 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 (25.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Insurance industry.

Management

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

3.3yrs

Average management tenure


CEO

John Marchioni (50 yo)

0.67

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 ($USD4.41M) is about average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Murphy
Executive Chairman20.42yrsUS$7.95m0.48%
$ 15.4m
John Marchioni
CEO, President & Employee Director0.67yrUS$4.41m0.24%
$ 7.9m
Mark Wilcox
Executive VP & CFO3.75yrsUS$2.65m0.050%
$ 1.6m
Michael Lanza
Executive VP16.25yrsUS$2.07m0.051%
$ 1.6m
Joseph Eppers
Senior VP & Chief Investment Officerno datano datano data
Anthony Harnett
Senior VP & Chief Accounting Officer2.75yrsno datano data
John Bresney
Executive VP & Chief Information Officerno datano datano data
Rohan Pai
Senior VP of Investor Relations & Treasurerno datano datano data
Charles Musilli
Executive VP & Chief Human Resources Officer2.75yrsno datano data
Jeffrey Kamrowski
Executive Vice President of MUSICno datano datano data
Sarita Chakravarthi
Senior VP of Tax & Assistant Treasurer5.42yrsno datano data
Brenda Hall
Executive VP & Commercial Lines COO11.58yrsno datano data

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SIGI's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Murphy
Executive Chairman20.42yrsUS$7.95m0.48%
$ 15.4m
John Marchioni
CEO, President & Employee Director0.67yrUS$4.41m0.24%
$ 7.9m
Michael Morrissey
Independent Director12.5yrsUS$200.09k0.034%
$ 1.1m
John Burville
Independent Director14.75yrsUS$192.54k0.13%
$ 4.3m
J. Thebault
Lead Independent Director3.5yrsUS$217.54k0.11%
$ 3.5m
William Rue
Non-Independent Director43.42yrsUS$172.54k0.60%
$ 19.5m
Philip Urban
Independent Director6.25yrsUS$177.57k0.031%
$ 1.0m
Helen Mitchell
Independent Director2.58yrsUS$177.54k0.0092%
$ 297.8k
Cynthia Nicholson
Independent Director11.17yrsUS$177.60k0.036%
$ 1.2m
John Scheid
Independent Director6.08yrsUS$202.60k0.033%
$ 1.1m
Thomas McCarthy
Independent Director2.75yrsUS$180.10k0.012%
$ 375.6k
Robert Doherty
Independent Director4.92yrsUS$202.54k0.032%
$ 1.0m

6.2yrs

Average Tenure

64yo

Average Age

Experienced Board: SIGI's board of directors are considered experienced (6.2 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$3.244b
  • Shares outstanding: 59.81m
  • 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 Person ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:49
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.