Selective Insurance GroupSIGI

Morningstar Rating

Stock Research and Analysis

by Drew Woodbury

Selective Insurance Group attempts to differentiate itself in a commoditized industry by delivering superior service to its policyholders and independent agents. In an attempt to create a niche market for itself, Selective has focused its insurance Read more

Bulls Say

Some of Selective's small customers stick with the company because of its superior service. This allows Selective to charge them higher premiums and increase profitability.

Selective is still a very small company and could have significant growth opportunities.

Given its regional footprint, Selective may be a takeover candidate for a large carrier looking to expand. Read more

Bears Say

In tough times, national carriers will enter Selective's market in search of premiums. These national carriers have significantly more capital than Selective, and they can undercut it on price.

The firm's investment portfolio consists of a significant amount of mortgage-backed securities and alternative investments. These risky securities may experience further write-downs.

Selective has encountered significant difficulties with its personal lines products. Its inability to accurately assess the risk of these offerings has damaged its profitability. Read more

Strategy

Selective seeks to expand in regions adjacent to its current footprint. The company looks to drive new business through an on-the-ground sales and claims team that sells its superior service to small Read more

Management

We believe that stewardship at Selective is generally good. The company has been led by chairman and CEO Gregory Murphy since 2000. Although we would like to see these two roles separated, we believe that Murphy's experience at the company (around 30 Read more

Profile

Selective Insurance Group is a regional property and casualty insurer based in New Jersey, with most of its operations focused in the New York metropolitan area. Since 1977, Read more

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