10 Best Property & Casualty Insurance Stocks to Buy

7) Selective Insurance Group, Inc. (NASDAQ:SIGI)

Average Upside Potential: 10.09%

Selective Insurance Group, Inc. (NASDAQ:SIGI) provides a broad range of commercial insurance products, alternative risk management products along with managed care and related services.

While the stock has been under pressure over the past few months, it seems that it is well-placed to take off. The company released its 2Q 2024 financial results, wherein, its net premiums written saw an increase of 13% against 2Q 2023. However, it posted a combined ratio of 116.1%.

The net unfavorable prior year casualty reserve development of $176 million increased its combined ratio by 16.3 points. The combined ratio increased by 8.4 points due to catastrophe losses of $91 million.

That being said, Selective Insurance Group, Inc. (NASDAQ:SIGI) has a very stable underwriting portfolio. To address the updated view of loss costs, the company has decided to go for additional price increases. Its renewal pure price increase throughout all the insurance segments was 9.1% in 2Q 2024. This included 7.9% for Standard Commercial Lines. The general liability renewal pure pricing increased to 7.6%. Selective Insurance Group, Inc. (NASDAQ:SIGI) expects that standard commercial lines renewal pure price will trend northwards in 2H 2024.

It plans to maintain disciplined focus and execution in risk selection, pricing, and claims management amidst a challenging and dynamic loss trend environment.

Analysts at BMO Capital Markets initiated coverage on Selective Insurance Group, Inc. (NASDAQ:SIGI). They increased their price target on the company’s shares from $92.00 to $95.00, giving a “Market perform” rating on 24^th July.

Selective Insurance Group, Inc. (NASDAQ:SIGI) was in the portfolios of 15 hedge funds in the first quarter of 2024, according to Insider Monkey’s database.