Selective Insurance Group, Inc. (SIGI) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy SIGI?
Source: SeekingAlpha
Return on Equity (ROE) 14.4% in 2025, with an operating ROE of 14.2%. This exceeded the 10-year average operating ROE of 12.1% and the 5-year average of 12.5%. The improvement was attributed to strong investment performance and operational efficiency.
Book Value Per Share Increased by 18% in 2025. This growth was supported by $182 million returned to shareholders through dividends and share repurchases.
Combined Ratio 93.8% for Q4 2025, reducing the full-year combined ratio to 97.2% from 103% in 2024. The improvement was due to lower prior year casualty reserve development and catastrophe losses.
Net Premiums Written Growth 5% for 2025. This was driven by deliberate actions to improve underwriting profitability and expand geographic footprint.
Commercial Auto Reserves Strengthened by approximately $190 million in 2025, primarily for 2024 and 2025 accident years. This was due to increased severity trends and loss cost assumptions.
Fully Diluted EPS $2.52 for Q4 2025, up 66% year-over-year. Non-GAAP operating EPS was $2.57, up 59%. The increase was driven by strong investment performance and operational improvements.
Standard Commercial Lines Combined Ratio 92.9% for Q4 2025, which included 1.6 points of favorable prior year casualty development and 3.2 points of higher current year casualty loss costs.
Personal Lines Combined Ratio 103% for Q4 2025, up from 91.7% in Q4 2024. The deterioration was due to 6.2 points higher catastrophe losses and 8.1 points higher current year casualty loss costs.
Net Investment Income $114 million after-tax for Q4 2025, up 17% year-over-year. This was attributed to a conservatively positioned investment portfolio with an average credit quality of A+.
Excess and Surplus (E&S) Lines Combined Ratio 93.1% for Q4 2025 and 87.8% for the full year. This reflected strong performance in E&S casualty and general liability.
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Analyst Views on SIGI
Wall Street analysts forecast SIGI stock price to fall
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 87.760
Low
72.00
Averages
81.60
High
95.00
Current: 87.760
Low
72.00
Averages
81.60
High
95.00
About SIGI
Selective Insurance Group, Inc. is a holding company, which owns over 10 property and casualty insurance subsidiaries that sell products and services only in the United States. The Company's segments include Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. The Standard Commercial Lines segment includes property and casualty insurance products and services to commercial enterprises, typically businesses, non-profit organizations, and local government agencies. The Standard Personal Lines segment consists of property and casualty insurance products and services, including flood insurance coverage sold through the Write Your Own program of the National Flood Insurance Program. The E&S Lines segment consists of property and casualty insurance products and services to commercial customers unable to obtain coverage in the standard marketplace. The Investment segment invests insurance premiums and amounts generated through its capital management strategies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Selective Insurance Declares $0.43 Quarterly Dividend
- Quarterly Dividend Announcement: Selective Insurance has declared a quarterly dividend of $0.43 per share, consistent with previous payouts, indicating the company's stable cash flow and profitability, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 2.05% reflects the company's competitiveness in the current market environment, potentially increasing investor interest in its stock and promoting price stability.
- Dividend Payment Schedule: The dividend is payable on March 2, with a record date of February 13 and an ex-dividend date also on February 13, providing investors with a clear timeline to inform their investment decisions.
- Future Outlook: Selective Insurance expects a 14% operating return on equity in 2026 while expanding technology investments, indicating a proactive strategy in pursuing long-term growth and enhancing operational efficiency, which may further strengthen its market position.
See More
Selective Insurance Group Reports Strong Q4 2025 Earnings and Strategic Outlook
- Profitability Improvement: Selective Insurance Group achieved a 14.4% return on equity (ROE) and a 14.2% operating ROE in 2025, indicating significant enhancements in profitability, while book value per share grew by 18%, returning $182 million to shareholders through dividends and share repurchases.
- Combined Ratio Enhancement: The company reported a combined ratio of 93.8% for Q4, a 4.7-point improvement from Q4 2024, reducing the full-year combined ratio to 97.2%, which is close to the initial guidance of 96% to 97%, reflecting ongoing efforts to improve underwriting profitability.
- Optimistic Future Outlook: Management expects the GAAP combined ratio for 2026 to be between 96.5% and 97.5%, with a target operating ROE of 14%, indicating that strategic investments in technology and geographic expansion will continue to drive profit growth.
- Shareholder Return Strategy: The company executed $86 million in share repurchases in 2025, with $170 million remaining on authorization, demonstrating a strong commitment to returning value to shareholders while laying the groundwork for future growth.
See More
Selective Insurance Reports Q4 Earnings Growth
- Earnings Performance: Selective Insurance Group reported a net income of $152.9 million for Q4, translating to an EPS of $2.52, which marks a significant increase from last year's $93.2 million and $1.52 per share, indicating enhanced profitability.
- Adjusted Earnings Growth: Excluding items, the adjusted earnings reached $156.2 million or $2.57 per share, reflecting the company's sustained profitability in core operations and robust financial management.
- Significant Revenue Growth: The company's revenue rose by 8.7% year-over-year to $1.365 billion, up from $1.256 billion last year, showcasing strong market demand and successful business expansion efforts.
- Strengthened Market Position: With continuous revenue and earnings growth, Selective Insurance solidifies its competitive position in the insurance market, laying a strong foundation for future business development.
See More
Analysis of SIGI Stock Price Fluctuations and Trends
- Price Range Analysis: SIGI's 52-week low is $71.75 per share, with a high of $93.30, while the last trade was at $82.61, indicating fluctuations within this range and reflecting market caution regarding its future performance.
- Technical Indicator Observation: SIGI's stock price is currently above its 200-day moving average, suggesting a potential upward trend in the short term, which may attract investor interest and impact future trading volume and market sentiment.
- Market Sentiment Assessment: Although the current stock price is below the 52-week high, it remains above the low, indicating some market confidence that could attract investors seeking stable dividends, enhancing its appeal among dividend stocks.
- Investor Focus: As SIGI's stock price fluctuates, investors should monitor changes in its fundamentals and market trends to make more informed investment decisions, especially in the context of current economic uncertainties.
See More
Selective Insurance Group (SIGI) to Announce Q4 2026 Financial Results on January 29
- Earnings Release Schedule: Selective Insurance Group will announce its fourth quarter financial results on January 29, 2026, after market close, providing press releases and financial supplements on its website to ensure timely access to key information for investors.
- Conference Call Timing: The company plans to hold a conference call on January 30, 2026, at 8:00 AM ET to discuss the financial results, which will be webcast live, enhancing interaction and transparency with investors.
- Replay Availability: A replay of the earnings call will be accessible on Selective's website from January 30 to February 28, 2026, allowing investors who cannot attend live to obtain information, thereby improving information accessibility.
- Company Background: Selective Insurance Group is a holding company for 10 property and casualty insurance companies rated “A+” by AM Best, offering standard and specialty insurance for commercial and personal risks, highlighting its leadership position in the insurance industry.
See More
SIGI Stock Fluctuates: 52-Week Low at $71.75
- Stock Fluctuation: SIGI's 52-week low is $71.75, with a high of $96.49, and the last trade at $83.01 indicates stability within this range, which may impact investor confidence and decision-making.
- Technical Indicators: The current stock price is below the 200-day moving average, suggesting potential short-term market weakness, prompting investors to monitor future trends to assess risks.
- Market Sentiment: Despite the fluctuations within the 52-week range, the market view on SIGI remains neutral, reflecting a cautious attitude among investors regarding the company's future performance.
- Investment Strategy: Investors may need to reassess their strategy for holding SIGI, considering the current price's gap from historical highs, which could affect future investment returns.
See More
Selective Insurance Declares $0.43 Quarterly Dividend
- Quarterly Dividend Announcement: Selective Insurance has declared a quarterly dividend of $0.43 per share, consistent with previous payouts, indicating the company's stable cash flow and profitability, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 2.05% reflects the company's competitiveness in the current market environment, potentially increasing investor interest in its stock and promoting price stability.
- Dividend Payment Schedule: The dividend is payable on March 2, with a record date of February 13 and an ex-dividend date also on February 13, providing investors with a clear timeline to inform their investment decisions.
- Future Outlook: Selective Insurance expects a 14% operating return on equity in 2026 while expanding technology investments, indicating a proactive strategy in pursuing long-term growth and enhancing operational efficiency, which may further strengthen its market position.
See More
Selective Insurance Group Reports Strong Q4 2025 Earnings and Strategic Outlook
- Profitability Improvement: Selective Insurance Group achieved a 14.4% return on equity (ROE) and a 14.2% operating ROE in 2025, indicating significant enhancements in profitability, while book value per share grew by 18%, returning $182 million to shareholders through dividends and share repurchases.
- Combined Ratio Enhancement: The company reported a combined ratio of 93.8% for Q4, a 4.7-point improvement from Q4 2024, reducing the full-year combined ratio to 97.2%, which is close to the initial guidance of 96% to 97%, reflecting ongoing efforts to improve underwriting profitability.
- Optimistic Future Outlook: Management expects the GAAP combined ratio for 2026 to be between 96.5% and 97.5%, with a target operating ROE of 14%, indicating that strategic investments in technology and geographic expansion will continue to drive profit growth.
- Shareholder Return Strategy: The company executed $86 million in share repurchases in 2025, with $170 million remaining on authorization, demonstrating a strong commitment to returning value to shareholders while laying the groundwork for future growth.
See More
Selective Insurance Reports Q4 Earnings Growth
- Earnings Performance: Selective Insurance Group reported a net income of $152.9 million for Q4, translating to an EPS of $2.52, which marks a significant increase from last year's $93.2 million and $1.52 per share, indicating enhanced profitability.
- Adjusted Earnings Growth: Excluding items, the adjusted earnings reached $156.2 million or $2.57 per share, reflecting the company's sustained profitability in core operations and robust financial management.
- Significant Revenue Growth: The company's revenue rose by 8.7% year-over-year to $1.365 billion, up from $1.256 billion last year, showcasing strong market demand and successful business expansion efforts.
- Strengthened Market Position: With continuous revenue and earnings growth, Selective Insurance solidifies its competitive position in the insurance market, laying a strong foundation for future business development.
See More
Analysis of SIGI Stock Price Fluctuations and Trends
- Price Range Analysis: SIGI's 52-week low is $71.75 per share, with a high of $93.30, while the last trade was at $82.61, indicating fluctuations within this range and reflecting market caution regarding its future performance.
- Technical Indicator Observation: SIGI's stock price is currently above its 200-day moving average, suggesting a potential upward trend in the short term, which may attract investor interest and impact future trading volume and market sentiment.
- Market Sentiment Assessment: Although the current stock price is below the 52-week high, it remains above the low, indicating some market confidence that could attract investors seeking stable dividends, enhancing its appeal among dividend stocks.
- Investor Focus: As SIGI's stock price fluctuates, investors should monitor changes in its fundamentals and market trends to make more informed investment decisions, especially in the context of current economic uncertainties.
See More
Selective Insurance Group (SIGI) to Announce Q4 2026 Financial Results on January 29
- Earnings Release Schedule: Selective Insurance Group will announce its fourth quarter financial results on January 29, 2026, after market close, providing press releases and financial supplements on its website to ensure timely access to key information for investors.
- Conference Call Timing: The company plans to hold a conference call on January 30, 2026, at 8:00 AM ET to discuss the financial results, which will be webcast live, enhancing interaction and transparency with investors.
- Replay Availability: A replay of the earnings call will be accessible on Selective's website from January 30 to February 28, 2026, allowing investors who cannot attend live to obtain information, thereby improving information accessibility.
- Company Background: Selective Insurance Group is a holding company for 10 property and casualty insurance companies rated “A+” by AM Best, offering standard and specialty insurance for commercial and personal risks, highlighting its leadership position in the insurance industry.
See More
SIGI Stock Fluctuates: 52-Week Low at $71.75
- Stock Fluctuation: SIGI's 52-week low is $71.75, with a high of $96.49, and the last trade at $83.01 indicates stability within this range, which may impact investor confidence and decision-making.
- Technical Indicators: The current stock price is below the 200-day moving average, suggesting potential short-term market weakness, prompting investors to monitor future trends to assess risks.
- Market Sentiment: Despite the fluctuations within the 52-week range, the market view on SIGI remains neutral, reflecting a cautious attitude among investors regarding the company's future performance.
- Investment Strategy: Investors may need to reassess their strategy for holding SIGI, considering the current price's gap from historical highs, which could affect future investment returns.
See More
