June 5, 2020

News to Watch: Selective Insurance Group (NASDAQ:SIGI)

Selective Insurance Group (NASDAQ:SIGI) spotted trading -39.93% off 52-week high price. On the other end, the stock has been noted 31.90% away from the low price over the last 52-weeks. The stock changed 1.83% to recent value of $48.87. The stock transacted 311969 shares during most recent day however it has an average volume of 379.42K shares. The company has 63.04M of outstanding shares and 58.25M shares were floated in the market.

In the first quarter of 2020:

  • COVID-19-related underwriting items totaled $19.3 million after-tax, which reduced diluted earnings per share by $0.32, increased the combined ratio by 3.5 points, decreased net premiums written (NPW) by 11%, and reduced annualized return on equity (ROE) by 3.6 points;
  • NPW decreased 4% from the first quarter of 2019;
  • GAAP combined ratio was 96.7%;
  • Annualized ROE was 2.8% and non-GAAP operating ROE1 was 9.4%;
  • Overall renewal pure price increased 4.0%; and
  • After-tax net investment income increased 10% to $45 million from the first quarter of 2019.

On May 05, 2020, Selective Insurance Group (NASDAQ:SIGI) revealed financial results for the first quarter ended March 31, 2020, with net income per diluted share of $0.25 and non-GAAP operating income1 per diluted share of $0.84.

Selective entered this unprecedented COVID-19 pandemic crisis in the strongest position in our 94-year history.  Over the last several years, we have strengthened our financial, operating, and strategic position, and have built a strong balance sheet, a high level of embedded profitability within our underwriting and investment portfolios, and have solid financial strength ratings, said John Marchioni, President and CEO.  This position enabled us to proactively respond to the COVID-19-related public health, economic and financial market issues.  We continue to provide outstanding service to our customers and distribution partners, and deliver on all of our commitments while our employees transitioned to a remote work environment.  I want to thank all of our employees for their diligence and flexibility in adapting seamlessly.

Mr. Marchioni continued, Non-GAAP operating income per diluted share was $0.84 compared to $0.90 a year ago, and the non-GAAP operating ROE was 9.4% compared to 11.6%.  COVID-19-related underwriting items totaled $19.3 million after-tax, which reduced diluted earnings per share by $0.32, increased the combined ratio by 3.5 points, decreased NPW by 11%, and reduced the ROE by 3.6 points.  Even after including the COVID-19-related items, all three of our insurance segments were profitable, and our GAAP combined ratio was a solid 96.7%.

Its earnings per share (EPS) expected to touch remained 51.10% for this year while earning per share for the next 5-years is expected to reach at 1.49%. SIGI has an operating margin of 13.00% while its profit margin remained 9.50% for the last 12 months.

The price moved ahead of -2.18% from the mean of 20 days, -4.65% from mean of 50 days SMA and performed -26.42% from mean of 200 days price. Company’s performance for the week was -3.97%, 4.05% for month and YTD performance remained -25.03%.