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

Excellent balance sheet with solid track record and pays a dividend.


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

-4.3%

NasdaqGS:SIGI

0.7%

US Insurance

1.3%

US Market


1 Year Return

14.9%

NasdaqGS:SIGI

9.3%

US Insurance

2.0%

US Market

SIGI outperformed the Insurance industry which returned 9.3% over the past year.

SIGI outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

SIGIIndustryMarket
7 Day-4.3%0.7%1.3%
30 Day-6.2%2.2%3.9%
90 Day-1.1%1.9%3.4%
1 Year16.2%14.9%12.0%9.3%4.2%2.0%
3 Year99.3%91.8%47.8%36.5%47.2%37.6%
5 Year251.4%226.0%68.5%48.4%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

0.562%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Selective Insurance Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Selective Insurance Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Selective Insurance Group is overvalued based on earnings compared to the US Insurance industry average.

Selective Insurance Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Selective Insurance Group is poor value based on expected growth next year.


Price Based on Value of Assets

Selective Insurance Group is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is Selective Insurance Group expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Selective Insurance Group's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Selective Insurance Group's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Selective Insurance Group's revenue growth is positive but not above the United States of America market average.

Selective Insurance Group's earnings growth is positive but not above the United States of America market average.

Selective Insurance Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Selective Insurance Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Selective Insurance Group's year on year earnings growth rate has been positive over the past 5 years.

Selective Insurance Group's 1-year earnings growth exceeds its 5-year average (51.8% vs 7.2%)

Selective Insurance Group's earnings growth has exceeded the US Insurance industry average in the past year (51.8% vs 3.1%).


Return on Equity

Selective Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Selective Insurance Group used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Selective Insurance Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Selective Insurance Group's financial position?


Financial Position Analysis

Selective Insurance Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Selective Insurance Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Selective Insurance Group's level of debt (26.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (31.7% vs 26.7% today).

Debt is well covered by operating cash flow (96.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.6x debt.


Next Steps

Dividend

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

1.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Selective Insurance Group's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Selective Insurance Group's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).


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?

5.2yrs

Average management tenure


CEO

Greg Murphy (63yo)

20.3yrs

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., since May 2000. Mr. Murphy has been the Chairman of Selective Insurance G ...


CEO Compensation Analysis

Greg's remuneration is about average for companies of similar size in United States of America.

Greg's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

The average tenure for the Selective Insurance Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.8yrs

Average Tenure

65yo

Average Age

The average tenure for the Selective Insurance Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Selective Insurance Group individual 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 Legal 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
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: 20.3yrs
    • Compensation: US$4.95m
  • Michael Lanza (57yo)

    Executive VP

    • Tenure: 15.2yrs
    • Compensation: US$1.62m
  • Chuck Musilli (60yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.7yrs
  • John Marchioni (49yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$3.42m
  • Mark Wilcox (51yo)

    Executive VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$2.34m
  • Sarita Chakravarthi

    Senior VP of Tax & Assistant Treasurer

    • Tenure: 4.3yrs
  • Tony Harnett (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.7yrs
  • Rohan Pai

    Senior VP of Investor Relations & Treasurer

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

    Executive VP & Chief Information Officer

    • Tenure: 6.3yrs
  • Joseph Eppers

    Senior VP & Chief Investment Officer

    • Tenure: 0yrs

Board Members

  • Michael Morrissey (71yo)

    Director

    • Tenure: 11.4yrs
    • Compensation: US$180.55k
  • Ron O'Kelley (74yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: US$169.06k
  • John Burville (71yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$180.52k
  • Greg Murphy (63yo)

    Chairman & CEO

    • Tenure: 20.3yrs
    • Compensation: US$4.95m
  • J. Thebault (67yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$190.56k
  • Bill Rue (71yo)

    Director

    • Tenure: 42.3yrs
    • Compensation: US$157.02k
  • John Marchioni (49yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$3.42m
  • Cie Nicholson (54yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$165.52k
  • John Scheid (63yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$192.56k
  • Robert Doherty (60yo)

    Independent Director

    • Tenure: 3.8yrs
    • 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 Analysis2019/09/15 23:43
End of Day Share Price2019/09/13 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.