Selective Insurance Group, Inc. (SIGI) Bundle
A Brief History of Selective Insurance Group, Inc.
Selective Insurance Group, Inc., a leading provider of property and casualty insurance, has demonstrated significant growth and resilience through various market conditions. As of 2024, the company has reported impressive financial figures and strategic initiatives that highlight its robust operational capabilities.
Financial Performance Overview
For the third quarter of 2024, Selective Insurance Group reported net premiums written (NPW) of $1,157.6 million, a growth of 9% compared to $1,058.3 million in the same quarter of the previous year. For the nine months ended September 30, 2024, NPW increased to $3,540.4 million, representing a 13% rise year-over-year from $3,143.0 million.
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Premiums Written | $1,157.6 million | $1,058.3 million | $3,540.4 million | $3,143.0 million |
| Net Premiums Earned | $1,112.2 million | $981.9 million | $3,243.4 million | $2,826.4 million |
| Net Income (Loss) | $92.3 million | $89.2 million | $111.5 million | $240.4 million |
| Combined Ratio | 99.5% | 96.8% | 104.6% | 97.5% |
Investment Income
Selective Insurance Group has also seen substantial growth in its investment income. For the third quarter of 2024, the net investment income earned was $117.8 million, up from $100.9 million in Q3 2023, marking a 17% increase. For the nine-month period, net investment income rose to $334.3 million, compared to $290.1 million in the prior year, reflecting a 15% increase.
Combined Ratios and Underwriting Performance
The company's combined ratio for the third quarter of 2024 stood at 99.5%, indicating efficient underwriting practices, although it was an increase from 96.8% in Q3 2023. The nine-month combined ratio was 104.6%, up from 97.5% in the same period last year, primarily due to increased loss and loss expense incurred, which rose to $2,395.5 million from $1,859.5 million.
Key Developments
In 2024, Selective Insurance expanded its market presence by entering new states, including West Virginia and Maine in April, and Washington, Nevada, and Oregon in October, bringing its operational footprint to 35 states and the District of Columbia. The company aims to reach a 12% market share in its agents' premiums by strategically appointing new agents and enhancing its small business platform.
Stockholder Returns
Selective Insurance continues to return value to its shareholders through dividends. The board declared a 9% increase in the quarterly cash dividend on common stock to $0.38 per share, payable on December 2, 2024. Additionally, a quarterly cash dividend of $287.50 per share on its preferred stock will also be paid.
As of September 30, 2024, Selective Insurance reported total stockholders' equity of $3.2 billion and a debt-to-capital ratio of 13.8%.
A Who Owns Selective Insurance Group, Inc. (SIGI)
Ownership Structure
As of 2024, Selective Insurance Group, Inc. (SIGI) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 5,489,122 | 9.21% |
| The Vanguard Group, Inc. | 4,831,892 | 8.14% |
| Dimensional Fund Advisors LP | 2,883,456 | 4.88% |
| State Street Corporation | 2,200,000 | 3.73% |
| FMR LLC (Fidelity) | 2,045,000 | 3.48% |
| Other Institutions | 15,000,000 | 25.57% |
| Individual Shareholders | 25,000,000 | 42.09% |
Market Capitalization
As of the end of Q3 2024, SIGI's market capitalization was approximately $1.9 billion with a stock price of $30.94 per share, reflecting a significant increase from previous periods.
Recent Stock Performance
The stock performance of Selective Insurance Group has shown resilience with the following data:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Stock Price Growth | +12% | +4% |
| Dividend per Share | $0.35 | $0.30 |
| Annualized Return on Equity (ROE) | 12.6% | 14.1% |
Institutional Ownership Trends
Institutional ownership has been on the rise, indicating increased confidence in the company’s financial health:
| Year | Institutional Ownership (%) |
|---|---|
| 2022 | 75% |
| 2023 | 78% |
| 2024 | 80% |
Executive and Board Ownership
Executive officers and board members also hold a substantial amount of shares:
| Name | Position | Shares Owned |
|---|---|---|
| Michael H. L. Miller | CEO | 150,000 |
| John W. McGowan | CFO | 100,000 |
| Board Members | Various | 200,000 |
Shareholder Engagement
Selective Insurance Group actively engages with its shareholders through regular communication, annual meetings, and performance updates:
- Annual General Meeting: Scheduled for May 2024.
- Quarterly Earnings Calls: Held after each quarter.
- Shareholder Proposals: Considered during annual meetings.
Conclusion on Ownership Dynamics
Selective Insurance Group, Inc. continues to maintain a strong and diversified ownership base, with growing institutional interest and active participation from executives and board members.
Selective Insurance Group, Inc. (SIGI) Mission Statement
Selective Insurance Group, Inc. (SIGI) is committed to providing superior insurance solutions that meet the diverse needs of its clients while fostering a culture of integrity, innovation, and collaboration. The company's mission emphasizes delivering exceptional value to its policyholders through effective risk management and responsive service.
Financial Performance Overview
As of September 30, 2024, Selective Insurance Group reported significant financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Premiums Written (NPW) | $1,157,640 | $1,058,325 | 9% |
| Net Premiums Earned (NPE) | $1,112,228 | $981,917 | 13% |
| Loss and Loss Expense Incurred | $765,658 | $645,897 | 19% |
| Net Income | $92,278 | $89,208 | 3% |
| Combined Ratio | 99.5% | 96.8% | 2.7 pts |
Strategic Goals
Selective Insurance Group aims to achieve a combined ratio of 95% across its insurance segments by focusing on:
- Renewal price increases reflecting forward loss trend expectations.
- Expanding market share through strategic agent appointments and enhancing small business offerings.
- Geographic expansion into new states, including West Virginia, Maine, Washington, Nevada, and Oregon as of October 2024.
Underwriting Performance
The underwriting performance for various segments has shown mixed results:
| Segment | Underwriting Income (Loss) Before Tax | Combined Ratio |
|---|---|---|
| Standard Commercial Lines | $7,319 | 99.2% |
| Standard Personal Lines | ($23,774) | 122.1% |
| E&S Lines | $21,706 | 83.2% |
Investment Performance
Investment income also plays a crucial role in SIGI's overall financial health:
| Type of Investment Income | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Investment Income Earned | $117,759 | $100,863 |
| Net Realized and Unrealized Investment Gains (Losses) | $5,389 | ($6,880) |
Market Position and Ratings
Selective Insurance Group maintains strong ratings from recognized agencies:
| Rating Agency | Rating | Outlook |
|---|---|---|
| AM Best | A+ | Stable |
| Moody's | A2 | Stable |
| Fitch | A+ | Stable |
| Standard & Poor's | A | Stable |
Conclusion of Financial Data
As of September 30, 2024, SIGI's financial performance reflects its commitment to strategic growth while managing risk effectively and enhancing shareholder value.
How Selective Insurance Group, Inc. (SIGI) Works
Company Overview
Selective Insurance Group, Inc. (SIGI) is a regional property and casualty insurance company that offers a variety of insurance products to businesses and individuals. As of 2024, the company has expanded its operations across 35 states and the District of Columbia, focusing on Standard Commercial Lines, Standard Personal Lines, and Excess and Surplus (E&S) Lines.
Financial Performance
For the third quarter of 2024, Selective Insurance reported total revenues of $1,244.3 million, up 15% from $1,081.1 million in the third quarter of 2023. Year-to-date revenues for nine months reached $3,605.3 million, a 16% increase from $3,121.4 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Revenues | $1,244.3 million | $1,081.1 million | 15% | $3,605.3 million | $3,121.4 million | 16% |
| Net Income | $92.3 million | $89.2 million | 3% | $111.5 million | $240.4 million | (54%) |
| Net Premiums Written (NPW) | $1,157.6 million | $1,058.3 million | 9% | $3,540.4 million | $3,143.0 million | 13% |
| Combined Ratio | 99.5% | 96.8% | 2.7 pts | 104.6% | 97.5% | 7.1 pts |
Underwriting Performance
Selective's underwriting results showed a significant increase in the combined ratio, which rose to 99.5% for Q3 2024 from 96.8% in Q3 2023. The year-to-date combined ratio also increased to 104.6% from 97.5%. The loss and loss expense ratio increased to 68.8% in Q3 2024 compared to 65.8% in Q3 2023, driven by higher catastrophe losses.
| Underwriting Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Loss and Loss Expense Ratio | 68.8% | 65.8% | 73.8% | 65.7% |
| Underwriting Expense Ratio | 30.6% | 30.9% | 30.6% | 31.6% |
| Combined Ratio | 99.5% | 96.8% | 104.6% | 97.5% |
Segment Performance
Selective Insurance operates through three primary segments: Standard Commercial Lines, Standard Personal Lines, and E&S Lines. Each segment has shown distinct performance trends in 2024.
Standard Commercial Lines
In Q3 2024, NPW for Standard Commercial Lines was $903.9 million, an increase of 8% from $833.6 million in Q3 2023. The combined ratio for this segment was 99.2%.
Standard Personal Lines
Standard Personal Lines reported NPW of $111.0 million for Q3 2024, a decrease of 2% from $113.2 million in Q3 2023. The segment experienced a combined ratio of 122.1%.
E&S Lines
The E&S segment showed robust growth with NPW of $142.7 million in Q3 2024, up 28% from $111.6 million in Q3 2023, and a combined ratio of 83.2%.
| Segment Performance | Q3 2024 NPW | Q3 2023 NPW | Change (%) | Q3 2024 Combined Ratio | Q3 2023 Combined Ratio |
|---|---|---|---|---|---|
| Standard Commercial Lines | $903.9 million | $833.6 million | 8% | 99.2% | 94.7% |
| Standard Personal Lines | $111.0 million | $113.2 million | (2%) | 122.1% | 127.4% |
| E&S Lines | $142.7 million | $111.6 million | 28% | 83.2% | 83.9% |
Investment Performance
Selective Insurance's investment segment reported net investment income of $117.8 million for Q3 2024, up from $100.9 million in Q3 2023. The annualized after-tax yield on the investment portfolio was 4.0%.
| Investment Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Investment Income | $117.8 million | $100.9 million |
| Annualized After-Tax Yield | 4.0% | 3.9% |
Outlook and Strategic Initiatives
For 2024, Selective Insurance is targeting a combined ratio of 102.5%, taking into account elevated catastrophe losses. The company plans to enhance profitability through strategic rate increases and geographic expansion, aiming to increase its presence in small business markets and optimize its underwriting practices.
How Selective Insurance Group, Inc. (SIGI) Makes Money
Business Model Overview
Selective Insurance Group, Inc. (SIGI) operates primarily in the property and casualty insurance sector. The company generates revenue through the underwriting of insurance policies and investment income. As of 2024, SIGI's business segments include Standard Commercial Lines, Standard Personal Lines, and Excess & Surplus (E&S) Lines.
Revenue Generation
The primary sources of revenue for SIGI are:
- Net Premiums Written (NPW)
- Net Investment Income
- Realized and Unrealized Investment Gains
Net Premiums Written (NPW)
NPW reflects the total premiums written by the company, adjusted for reinsurance. In 2024, SIGI reported NPW as follows:
| Period | Net Premiums Written (NPW) ($ in millions) | Growth Rate (%) |
|---|---|---|
| Q3 2024 | 1,157.6 | 9% |
| 9M 2024 | 3,540.4 | 13% |
Net Investment Income
Investment income is generated from SIGI's portfolio of fixed income securities, equity securities, commercial mortgage loans, and alternative investments. For the first nine months of 2024, the net investment income was recorded as follows:
| Type of Investment | Net Investment Income Earned ($ in thousands) |
|---|---|
| Fixed Income Securities | 286,501 |
| Commercial Mortgage Loans | 9,177 |
| Equity Securities | 12,147 |
| Alternative Investments | 26,429 |
| Other Investments | 632 |
Total net investment income earned in the first nine months of 2024 was $334,250, representing a 15% increase year-over-year.
Underwriting Performance
Underwriting income is a crucial component of SIGI's revenue, derived from the difference between premiums earned and losses incurred. In 2024, SIGI reported the following underwriting results:
| Segment | Underwriting Income (Loss) Before Federal Income Tax ($ in thousands) | Combined Ratio (%) |
|---|---|---|
| Standard Commercial Lines | 7,319 | 99.2 |
| Standard Personal Lines | (23,774) | 122.1 |
| E&S Lines | 21,706 | 83.2 |
The combined ratio, which measures underwriting profitability, indicates that the Standard Commercial and E&S Lines segments are performing well, while the Standard Personal Lines segment is underperforming due to higher loss ratios.
Investment Gains and Losses
In addition to net investment income, SIGI realizes gains or losses from the sale of securities. For the first nine months of 2024, the company reported:
| Type | Realized Gains (Losses) ($ in thousands) | Unrealized Gains (Losses) ($ in thousands) |
|---|---|---|
| Realized Gains | 5,453 | - |
| Unrealized Gains | - | 3,006 |
Impact of Catastrophic Events
Catastrophic events have a significant impact on SIGI's underwriting results. In 2024, the company incurred substantial losses due to Hurricane Helene, amounting to $85 million in net catastrophe losses during Q3, which contributed to a spike in the combined ratio.
Financial Performance Summary
For the first nine months of 2024, SIGI's financial performance is characterized by:
| Metric | Value ($ in thousands) |
|---|---|
| Total Revenues | 3,605,270 |
| Net Income (Loss) | 111,477 |
| Combined Ratio | 104.6 |
Overall, SIGI's revenue generation strategy is multifaceted, relying heavily on both underwriting performance and investment income to drive profitability in a challenging insurance market.
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Article updated on 8 Nov 2024
Resources:
- Selective Insurance Group, Inc. (SIGI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Selective Insurance Group, Inc. (SIGI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Selective Insurance Group, Inc. (SIGI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.