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Reasons Why You Should Retain Selective Insurance (SIGI) Stock
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Selective Insurance Group, Inc. (SIGI - Free Report) has been gaining momentum, given its solid renewal pricing, increase in exposure, higher income earned on fixed income securities and prudent capital deployment.
Earnings Surprise History
Selective Insurance has a solid track record of beating earnings estimates in four of the last six quarters.
Zacks Rank & Price Performance
Selective Insurance currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 15.3%, outperforming the industry’s increase of 0.5%.
Image Source: Zacks Investment Research
Style Score
Selective Insurance is well-poised for progress, as is evident from its favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Solid renewal pricing in standard Commercial Lines and excess and surplus lines, solid retention rates in standard commercial and personal lines and an increase in exposure should drive premium growth.
An attractively priced book along with solid profitability as well as industry pricing trends should provide an additional tailwind for renewal pure price increases.
The Excess and Surplus Lines (E&S) segment of Selective Insurance is likely to improve due to renewal pure price increases, higher direct new business and favorable E&S Lines marketplace conditions.
For 2022, Selective Insurance projects an after-tax net investment income of $215 million, including after-tax net investment income from its alternative investments of $7 million. Higher returns on the alternative investments in other investments portfolio and higher income earned on fixed income securities are likely to drive the metric.
Selective Insurance flaunts a sound capital structure and remains committed to enhancing shareholders' value while improving its financial strength and underwriting capabilities and thus, scores strongly with credit rating agencies. SIGI entered 2022 in the strongest financial position in its 95-year history with a record level of statutory capital and surplus and holding company cash and investments.
Selective Insurance raised dividends at an eight-year (2015-2022) CAGR of 9.1%. Riding on strong financial and operating performance, the board approved a 7% hike in the quarterly cash dividend in November 2022. Such endeavors instill confidence among investors, making it an attractive pick for yield-seeking investors. SIGI had $84.2 million remaining under repurchase authorization. Thus, the stock is an attractive pick for yield-seeking investors.
The Zacks Consensus Estimate for Selective Insurance’s 2023 earnings is pegged at $6.03 per share, indicating a year-over-year increase of nearly 20.2%.
Image: Bigstock
Reasons Why You Should Retain Selective Insurance (SIGI) Stock
Selective Insurance Group, Inc. (SIGI - Free Report) has been gaining momentum, given its solid renewal pricing, increase in exposure, higher income earned on fixed income securities and prudent capital deployment.
Earnings Surprise History
Selective Insurance has a solid track record of beating earnings estimates in four of the last six quarters.
Zacks Rank & Price Performance
Selective Insurance currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 15.3%, outperforming the industry’s increase of 0.5%.
Image Source: Zacks Investment Research
Style Score
Selective Insurance is well-poised for progress, as is evident from its favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
Solid renewal pricing in standard Commercial Lines and excess and surplus lines, solid retention rates in standard commercial and personal lines and an increase in exposure should drive premium growth.
An attractively priced book along with solid profitability as well as industry pricing trends should provide an additional tailwind for renewal pure price increases.
The Excess and Surplus Lines (E&S) segment of Selective Insurance is likely to improve due to renewal pure price increases, higher direct new business and favorable E&S Lines marketplace conditions.
For 2022, Selective Insurance projects an after-tax net investment income of $215 million, including after-tax net investment income from its alternative investments of $7 million. Higher returns on the alternative investments in other investments portfolio and higher income earned on fixed income securities are likely to drive the metric.
Selective Insurance flaunts a sound capital structure and remains committed to enhancing shareholders' value while improving its financial strength and underwriting capabilities and thus, scores strongly with credit rating agencies. SIGI entered 2022 in the strongest financial position in its 95-year history with a record level of statutory capital and surplus and holding company cash and investments.
Selective Insurance raised dividends at an eight-year (2015-2022) CAGR of 9.1%. Riding on strong financial and operating performance, the board approved a 7% hike in the quarterly cash dividend in November 2022. Such endeavors instill confidence among investors, making it an attractive pick for yield-seeking investors. SIGI had $84.2 million remaining under repurchase authorization. Thus, the stock is an attractive pick for yield-seeking investors.
The Zacks Consensus Estimate for Selective Insurance’s 2023 earnings is pegged at $6.03 per share, indicating a year-over-year increase of nearly 20.2%.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Root, Inc. (ROOT - Free Report) , Kinsale Capital Group, Inc. (KNSL - Free Report) and First American Financial Corporation (FAF - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Root delivered a trailing four-quarter average earnings surprise of 22.44%. In the past year, ROOT has lost 91.3%.
The Zacks Consensus Estimate for ROOT’s 2023 earnings indicates a year-over-year increase of 23.9%.
Kinsale Capital’s earnings surpassed estimates in each of the last four quarters, the average being 15.16%. In the past year, KNSL has gained 25.1%.
The Zacks Consensus Estimate for KNSL’s 2023 earnings implies a year-over-year rise of 22.6%.
First American has a solid track record of beating earnings estimates in each of the last six quarters. In the past year, FAF has lost 25.9%.
The Zacks Consensus Estimate for FAF’s 2023 earnings has moved 3.9% north in the past 60 days.