Here’s Why Investors Should Maintain Selective Insurance (SIGI)

The opinion of the company Selective Insurance Group, Inc. SIGI is poised to grow on the back of strong restructuring rates, increased transparency, higher returns on fixed assets, and prudent capital spending.

Amazing History

Selective Insurance has a strong track record of beating earnings in six of the past seven quarters.

Zacks Rank & Price Performance

Selective Insurance currently has a Zacks Rank #3 (Hold). Year to date, the stock is up 1.2%, more than average companiesan increase of 0.3%.

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Style Score

Selective Insurance is about to move forward, as evidenced by its benefits Results of VGM of B. The VGM Score helps identify stocks that have the most attractive value, the best growth and the most reliable trends.

Business Tailwinds

Higher premium rates in Commercial Fixed Lines and extended and extended lines, higher fixed rates in Fixed Commercial and Personal lines and increased exposure should drive premium growth.

A healthy price book along with stable profitability and the company’s pricing structure should create additional interest in raising prices.

The Excess and Surplus Lines (E&S) segment of Selective Insurance is expected to lead the way due to resurgence in premiums, strong direct business and favorable E&S Lines markets.

In 2022, Selective Insurance generates after-tax income of $215 million (guidance of $205 million), including after-tax income from other assets of $15 million. The amount of money earned on fixed deposits is a good driving metric.

Selective Insurance is still looking to reduce costs through a variety of strategies, including technology and policy improvements. In the first half of 2022, the ratio was below full-year expectations of 32.5%.

Selective Insurance enters 2022 in the strongest financial position in its 95-year history. It remains well positioned to continue to achieve strategic goals and deliver growth and profitability. His net worth remains strong at $510 million, which is above his long-term target.

Selective Insurance posted an eight-year (2015-2022) CAGR of 9.1%. The current yield is 1.3%, which is better than the industry average of 0.4%. SIGI has $90.1 million remaining under its repurchase agreement. Therefore, stocks are an attractive choice for investors looking for yield.

Things to Consider

Some well-chosen stocks from property and casualty insurance companies are The opinion of the company Arch Capital Group Ltd. ACGL, Opinions of the company American Financial Group, Inc. AFG is Company Profile ProAssurance Corporation PRA, each sports a Zacks Rank #1 (Strong Buy). You can see A complete list of today’s Zacks #1 Rank stocks here.

Arch Capital’s fundamentals outperformed earnings in three of the last four quarters and missed in one, averaging 33.64%. Year to date, insurance is up 6.3%.

The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, over the past 30 days.

American Financial’s earnings beat estimates in each of the last four quarters, hitting an average of 37.09%. Year to date, American Financial has lost 1.6%.

The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 2.2% and 3.3% north, respectively, in the past seven days.

ProAssurance’s core stock beat its earnings in three of the last four quarters and missed one, by an average of 150.9%. Year to date, the insurer has lost 8.6%.

The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings have moved 16.9% and 13.9% north, respectively, in the past seven days.

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ProAssurance Corporation (PRA): Free Stock Analysis Report

American Financial Group, Inc. (AFG): Free Stock Analysis Report

Selective Insurance Group, Inc. (SIGI): Free Stock Analysis Report

Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.