At a glance
Selective Insurance Group Inc is worth $5.77B, about 13 times its fiscal 2025 earnings. Revenue grew 9.8% to $5.34B in fiscal 2025, with 8.7% kept as profit; over 5 years it has grown 12.8% a year. It pays a 1.76% dividend yield, raised every year for at least 9 years, and returned $522.2M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +31.9% over the past year with dividends reinvested and +6.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 38.4% in the 2020 crash (S&P 500: 33.7%) and 17.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months and 5 months after the lows.
The business in plain English
Selective Insurance Group is a New Jersey property and casualty insurer. That means it covers damage to property and legal liability to others. Its history goes back to 1926. It owns ten insurance companies that sell only in the U.S. and only through independent agents and wholesale brokers. In its annual report filed February 9, 2026, Selective said AM Best rated its financial strength A+ (Superior). AM Best also ranked it the 34th-largest U.S. property and casualty group by 2024 premiums.
Business insurance dominates. Standard Commercial Lines covers businesses, non-profits and local government agencies, mainly in 36 states and Washington, D.C. Its average premium was about $20,600 per policyholder. The segment produced about 70% of fiscal 2025 revenue of $5.34 billion. Excess and surplus (E&S) lines added about 11%. E&S covers businesses with unusual or high-risk exposures that standard insurers won't take. Standard Personal Lines, sold to individuals in 15 states, added about 8%. It also sells federal flood policies nationwide. By 2024 premiums, Selective was the fourth-largest insurer in that program.
Selective makes money in three ways. The first is underwriting profit, the premiums left after claims and expenses. The second is income from investing premiums until claims are paid. The third is investment gains or losses. Investments supplied about 10% of revenue. The key yardstick is the combined ratio: claims and expenses as a share of premiums. Below 100% means an underwriting profit.
Price history
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SIGI +31.9% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Standard Commercial Lines | $3.75B | 70.3% |
| E&S Lines | $606.1M | 11.4% |
| Investments | $539.5M | 10.1% |
| Standard Personal Lines | $408.2M | 7.6% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $1.33B, down 2.5% from a year earlier, and net income was $128.7M (+11.5%).
- For fiscal 2025, revenue was $5.34B (+9.8% year over year; +12.8% a year from FY2020 to FY2025) with a 8.7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +12.8% good |
|---|---|
| Free cash flow margin | 22.4% good |
| Return on equity (FY2025) | 12.9% watch |
| Return on assets (FY2025) | 3.1% watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $2.92B | $246.4M | $532.0M |
| FY2021 | $3.38B | $403.8M | $749.3M |
| FY2022 | $3.56B | $224.9M | $776.4M |
| FY2023 | $4.23B | $365.2M | $736.3M |
| FY2024 | $4.86B | $207.0M | $1.07B |
| FY2025 | $5.34B | $466.4M | $1.19B |
Valuation snapshot
| Market value | $5.77B |
|---|---|
| P/E ratio | 13 |
| Dividend yield | 1.76% |
Rank among 1514 US companies
Market value at each year end
Selective Insurance Group’s market value went from $2.49B at the end of 2016 to $5.77B on Oct 28, 2026, about 2.3 times as much; since the end of 2025 it is up 14%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $5.77B | +14.1% |
| 2025 | $5.05B | -11.1% |
| 2024 | $5.69B | -5.7% |
| 2023 | $6.03B | +12.9% |
| 2022 | $5.34B | +8.4% |
| 2021 | $4.93B | +22.9% |
| 2020 | $4.01B | +3.5% |
| 2019 | $3.87B | +7.9% |
| 2018 | $3.59B | +4.7% |
| 2017 | $3.43B | +37.6% |
| 2016 | $2.49B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SIGI price data to Oct 28, 2026 | +18.5% | +31.9% | +0.1% | +6.5% | +11.9% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +18.5% |
| 2025 | -8.8% |
| 2024 | -4.6% |
| 2023 | +13.7% |
| 2022 | +9.7% |
| 2021 | +24.0% |
| 2020 | +4.5% |
| 2019 | +8.3% |
| 2018 | +5.1% |
| 2017 | +38.2% |
| 2016 | +30.4% |
| 2015 | +25.9% |
| 2014 | +2.6% |
| 2013 | +43.5% |
| 2012 | +11.9% |
| 2011 | +0.8% |
| 2010 | +14.0% |
| 2009 | -25.7% |
| 2008 | +2.1% |
| 2007 | -18.1% |
| 2006 | +9.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 53.9% over that stretch · deepest drop along the way 61.2%, back to its old high 48.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 31.8% over that stretch · deepest drop along the way 38.4%, back to its old high 9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 8.3% over that stretch · deepest drop along the way 17.4%, back to its old high 5.3 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (22 read): 1 open-market purchases ($51K) and 4 sales ($2.1M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 28, 2026 | Michael H Lanza EVP and General Counsel | sell | $1.6M |
| Oct 26, 2026 | Cynthia S Nicholson Director | sell | $364K |
| Feb 17, 2026 | Anthony D. Harnett SVP, Chief Accounting Officer | sell | $93K |
| Feb 2, 2026 | Anthony D. Harnett SVP, Chief Accounting Officer | sell | $81K |
| Feb 2, 2026 | Lisa R Bacus Director | buy | $51K |
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 5.87% | Mar 31, 2026 |
| AQR Capital Management, LLC | 5.59% | Jun 30, 2026 |
| Vanguard Capital Management | 5.24% | Mar 31, 2026 |
| FMR LLC | 4.2% | Mar 31, 2026 |
ETFs with the most weight in SIGI
| KBWP Invesco KBW Property & Casualty Insurance ETF | 4.12% |
| KIE SPDR S&P Insurance ETF | 1.97% |
| JPSV JPMorgan Active Small Cap Value ETF | 1.73% |
| FLQS Franklin U.S. Small Cap Multifactor Index ETF | 0.74% |
| QLV FlexShares US Quality Low Volatility Index Fund | 0.56% |
| FVD First Trust Value Line Dividend Index Fund | 0.45% |
| SIXL ETC 6 Meridian Low Beta Equity ETF | 0.44% |
| IJJ iShares S&P Mid-Cap 400 Value ETF | 0.43% |
What could go wrong
- Storms and other catastrophes hit profits. Its biggest exposures are Eastern U.S. hurricanes, hail and tornadoes, winter storms, wildfires, earthquakes and terrorism. Models can fall short. They underestimated freeze losses from Winter Storm Elliott in December 2022.
- Claim reserves could prove too small. Reserves are money set aside for claims that have happened but are not yet paid. Estimating them takes judgment. If claims cost more than expected, Selective must add to reserves, which cuts earnings.
- A ratings downgrade could cost business. Agents favor strongly rated insurers, and many loans and mortgages require a minimum insurer rating. Selective says its AM Best rating matters most to its ability to win business.
- Relies entirely on independent agents. Selective sells only through independent agents and wholesale brokers. These agents can also place business with rival insurers. If key agencies move business elsewhere, premiums and growth could suffer.
- Reinsurance could cost more or dry up. Selective buys reinsurance, which is insurance for insurers, to limit big losses. If that protection costs more or is harder to get, the company keeps more risk or pays more.
- Investment losses from rates and credit. Selective invests premiums in bonds, commercial mortgage loans, stocks and private partnerships until claims are paid. Rising interest rates, borrower defaults or falling prices can shrink the portfolio and reported earnings.
Recent events
- Quarterly results released; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Bylaws or fiscal year changed
- Quarterly results released; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
For income and retirement investors
Selective has raised its regular dividend for at least 9 straight years. Every fiscal year from 2016 through 2025 showed an increase, and the true streak may be longer. Dividends per share rose from $0.94 in fiscal 2020 to $1.57 in fiscal 2025, about 10.8% a year. Fiscal 2025 dividends used 19.9% of earnings and 7.8% of free cash flow, which leaves a wide cushion. The yield was 1.76% as of October 28, 2026, which is modest for income. Buybacks jumped to $92.6 million in 2025 from $15.6 million in 2024. The share count fell 2% between January 2022 and October 2026.
The stock has still fallen hard in selloffs. It dropped 61.2% in the 2008 financial crisis and took about four years to recover. It fell 38.4% in the 2020 COVID crash and recovered in about 9 months. In 2022 it fell 17.4% and recovered in about 5 months. Any single stock carries more risk than a diversified fund.
Questions investors ask
How does Selective Insurance make money?
Mostly by selling business insurance. In fiscal 2025, Standard Commercial Lines produced about 70% of Selective's $5.34 billion in revenue. Excess and surplus lines added about 11% and personal lines about 8%. The other 10% or so came from investing premiums before claims are paid. Profit comes from underwriting, when premiums exceed claims and expenses, plus investment income. Selective sells only in the U.S., through independent agents and wholesale brokers.
Does Selective Insurance raise its dividend every year?
Yes, for at least 9 straight years. Every fiscal year from 2016 through 2025 showed a higher regular dividend, and the true streak may be longer. Dividends per share grew from $0.94 in fiscal 2020 to $1.57 in fiscal 2025, about 10.8% a year. Dividends paid equaled 19.9% of fiscal 2025 net income. The yield was 1.76% as of October 28, 2026. As a holding company, Selective relies partly on payouts from its regulated insurance subsidiaries.
How has Selective Insurance stock performed over the long term?
Unevenly. As of October 28, 2026, the share price had gained about 11.9% a year over 10 years, or 207% in total. Over five years it gained 6.5% a year. Over three years it was roughly flat, at 0.1% a year, after falls of 4.6% in 2024 and 8.8% in 2025. Year to date through October 28, 2026, it was up 18.5%. Its worst peak-to-trough drop in about 21 years of price history was 63.1%.
What are the biggest risks for Selective Insurance stock?
Catastrophes and claim reserves top the list. Eastern U.S. hurricanes, hail and tornadoes, winter storms, wildfires, earthquakes and terrorism can cause large losses, and models may underestimate them. Selective also has to estimate what past claims will cost. If its reserves prove too small, earnings suffer. Other risks include a ratings downgrade, reliance on independent agents, costlier reinsurance and investment losses. Earnings have been uneven: diluted earnings per share were $3.23 in fiscal 2024 and $7.49 in fiscal 2025.
Which ETFs hold Selective Insurance stock?
Selective appears in 91 ETFs. The Invesco KBW Property & Casualty Insurance ETF (KBWP) gives it the most weight, about 4.1%. Next come the SPDR S&P Insurance ETF (KIE) at about 2.0% and the JPMorgan Active Small Cap Value ETF (JPSV) at about 1.7%. Broader funds hold it at well under 1%, such as the iShares S&P Mid-Cap 400 Value ETF (IJJ). Fund weights shift as portfolios rebalance. Investors who want insurance exposure with less single-company risk may compare these funds.