Selective Insurance Group Inc. Common Stock (SIGI)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business: Selective writes property and casualty insurance, mostly commercial lines, plus personal and excess and surplus. It is not glamorous, but disciplined underwriting can create a durable advantage if the company prices risk correctly and invests float wisely. The filed numbers show momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.4B, net income $129.4M, and diluted EPS $2.11, versus fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $1.3B, net income $85.9M, and diluted EPS $1.36. Full-year fiscal 2025, the year ended 2025-12-31, revenue was $5.3B, net income $466.4M, and diluted EPS $7.49, a rebound from fiscal 2024, the year ended 2024-12-31, net income of $207.0M and diluted EPS $3.23. That rebound is encouraging, but the dip reminds me that underwriting is cyclical. The balance sheet looks conservative: FairStock calculates debt-to-equity of 0.25, ROE of 14.15%, and a Piotroski F-score of 7/9. At the 2026-10-13 close of $85.15, FairStock's P/E is 10.56, P/B is 1.46, PEG is 0.21, and the Score is 78/100. A low beta of 0.28 and a 1.98% dividend yield add defensiveness. The FairStock Lynch category is STALWART, based on five-year profit growth of 13.6% and revenue growth of 12.8%, which fits a steady insurer. The key missing piece is underwriting quality: combined ratio, catastrophe losses, reserve development, and investment credit risk are not in the data. CET1 and NIM are bank measures and are not provided. ROCE of 2.83% also looks low. Still, a 14.15% ROE at 1.46 times book with a 10.56 earnings multiple offers a reasonable starting point, provided underwriting stays disciplined.

In plain English: Selective Insurance sells property and casualty coverage to businesses and people in the United States. The business looks reasonably strong: profits jumped in the latest quarter from a year earlier, and the company earns a decent return on shareholders' money. At $85.15, the shares look modestly cheap compared with recent profits and accounting net worth, but insurance risks are real.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer