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

Fundamentals

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


Market Performance


7 Day Return

1.0%

SIGI

0.7%

US Insurance

1.8%

US Market


1 Year Return

24.6%

SIGI

13.5%

US Insurance

7.3%

US Market

Return vs Industry: SIGI exceeded the US Insurance industry which returned 13.5% over the past year.

Return vs Market: SIGI exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

SIGIIndustryMarket
7 Day1.0%0.7%1.8%
30 Day-0.08%-2.2%-0.7%
90 Day0.2%-2.0%0.06%
1 Year26.0%24.6%16.3%13.5%9.7%7.3%
3 Year96.5%89.2%43.7%32.7%46.3%36.9%
5 Year240.8%216.2%70.9%50.5%64.5%46.5%

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?

19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SIGI ($75.38) is trading above our estimate of fair value ($75.19)

Significantly Undervalued: SIGI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SIGI is poor value based on its PE Ratio (19x) compared to the Insurance industry average (15.6x).

PE vs Market: SIGI is poor value based on its PE Ratio (19x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SIGI is poor value based on its PEG Ratio (8.7x)


Price to Book Ratio

PB vs Industry: SIGI is overvalued based on its PB Ratio (2.2x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Selective Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIGI's forecast earnings growth (2.2% per year) is below the savings rate (2.7%).

Earnings vs Market: SIGI's earnings (2.2% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: SIGI's earnings are forecast to grow, but not significantly.

Revenue vs Market: SIGI's revenue (6.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SIGI's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SIGI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

7.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SIGI's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: SIGI's earnings growth over the past year (51.8%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: SIGI earnings growth over the past year (51.8%) exceeded the Insurance industry 1.4%.


Return on Equity

High ROE: SIGI's Return on Equity (11.4%) is considered low.


Return on Assets

ROA vs Industry: SIGI has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: SIGI has significantly improved its Return on Capital Employed over the past 3 years.


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 3.569860x 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?

1.06%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%3.7%industryaverage2.4%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SIGI's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SIGI's dividend (1.06%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (19.7%), 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 (20.5% payout ratio).


Next Steps

Management

What is the CEO of Selective Insurance Group's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Greg Murphy (63yo)

20.4yrs

Tenure

US$4,946,192

Compensation

Mr. Gregory Edward Murphy, also known as Greg, has been the Chairman and Chief Executive Officer of Selective Insurance Group Inc. and Selective Insurance Company Of America since May 2000. Mr. Murphy has  ...


CEO Compensation Analysis

Compensation vs. Market: Greg's total compensation ($USD4.95M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: SIGI's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

65yo

Average Age

Experienced Board: SIGI's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: SIGI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$605,20008 Aug 19
William Rue
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,795
Max PriceUS$78.09
SellUS$492,47110 May 19
Michael Lanza
EntityIndividual
Role
Chief Compliance Officer
Executive VP
Shares6,946
Max PriceUS$70.90
SellUS$104,39610 May 19
Cynthia Nicholson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,468
Max PriceUS$71.11
SellUS$694,33907 May 19
Cynthia Nicholson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,786
Max PriceUS$70.95
SellUS$6607 May 19
Michael Morrissey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares0.94
Max PriceUS$70.71
SellUS$239,49722 Feb 19
John Burville
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,614
Max PriceUS$66.27
SellUS$331,22720 Feb 19
Gregory Murphy
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceUS$66.25
SellUS$662,84820 Feb 19
Paul Bauer
EntityIndividual
Shares10,000
Max PriceUS$66.31
SellUS$161,00019 Nov 18
Paul Bauer
EntityIndividual
Shares2,500
Max PriceUS$64.40

Ownership Breakdown


Management Team

  • Greg Murphy (63yo)

    Chairman & CEO

    • Tenure: 20.4yrs
    • Compensation: US$4.95m
  • Michael Lanza (57yo)

    Executive VP

    • Tenure: 15.3yrs
    • Compensation: US$1.62m
  • Chuck Musilli (60yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.8yrs
  • John Marchioni (49yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$3.42m
  • Mark Wilcox (51yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$2.34m
  • Sarita Chakravarthi

    Senior VP of Tax & Assistant Treasurer

    • Tenure: 4.4yrs
  • Tony Harnett (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.8yrs
  • Rohan Pai

    Senior VP of Investor Relations & Treasurer

    • Tenure: 0yrs
  • Gordon Gaudet (63yo)

    Executive VP & Chief Information Officer

    • Tenure: 6.4yrs
  • Joseph Eppers

    Senior VP & Chief Investment Officer

    • Tenure: 0yrs

Board Members

  • Michael Morrissey (71yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$180.55k
  • Ron O'Kelley (74yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$169.06k
  • John Burville (71yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$180.52k
  • Greg Murphy (63yo)

    Chairman & CEO

    • Tenure: 20.4yrs
    • Compensation: US$4.95m
  • J. Thebault (67yo)

    Lead Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$190.56k
  • Bill Rue (71yo)

    Director

    • Tenure: 42.4yrs
    • Compensation: US$157.02k
  • John Marchioni (49yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$3.42m
  • Cie Nicholson (54yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$165.52k
  • John Scheid (63yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$192.56k
  • Robert Doherty (60yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$176.52k

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$4.475b
  • Shares outstanding: 59.37m
  • Website: https://www.Selective.com

Number of Employees


Location

  • Selective Insurance Group, Inc.
  • 40 Wantage Avenue
  • Branchville
  • New Jersey
  • 7890
  • 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 Analysis2019/10/18 23:42
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.