Selective Insurance Group, Inc.’s (NASDAQ:SIGI) Long-Term Issuer Credit Ratings (ICR) of “bbb+” is reiterated by A.M. Best. Concurrently, 10 pooled members’ Financial Strength Rating (FSR) of A (Excellent) and Long-Term ICR of “a+” have also been retained by the rating giant. The outlook stays stable.
The rating affirmations came on the back of strong risk-adjusted capitalization and better operating performance of the group since 2012. The ratings also account for the company’s high policy-retention rates across its standard lines of business and its solid market presence. Based on 2016 net premiums written, Selective Insurance ranks as the 36th largest property and casualty insurer in the United States.
These positives are driven by Selective Insurance’s competent management, systematic procedure of handling claims and sturdy underwriting results.
However, these positives are weighed on by lower net investment yield and unfavorable operating leverage when compared with commercial casualty composite.
Nonetheless, Selective Insurance’s adjusted debt-to-total capital ratio is within A.M. Best’s guidelines and interest coverage ratio is more than what is required for the ratings.
Financial performances of companies are assessed regularly by rating agencies. These ratings play a significant role in retaining investor confidence as well as in maintaining credit worthiness. Thereby, these enhance the competitive position of the company in the market. These ratings reflect the financial stability of the company in the long run.
Zacks Rank and Share Price Movement
Selective Insurance Group carries a Zacks Rank #4 (Sell). Shares of Selective Insurance have outperformed the industry in a year’s time. While Selective Insurance Group’s shares have rallied 20.3%, the industry has gained 19.7%. Sturdy underwriting results and operational performance are expected to drive the stock higher in the future.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Atlas Financial Holdings, Inc. (NASDAQ:AFH) , Markel Corporation (NYSE:MKL) and Mercury General Corporation (NYSE:MCY) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Atlas Financial Holdings engages in underwriting commercial automobile insurance policies in the United States. The company delivered positive surprises two out of the last four quarters, with an average beat of 57.94%.
Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. The company delivered positive surprises in two out of the last four quarters, with an average beat of 21.06%.
Mercury General Corporation engages in writing personal automobile insurance in the United States. The company delivered positive surprises in three of the last four quarters, with an average beat of 1.06%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Markel Corporation (MKL): Free Stock Analysis Report
Mercury General Corporation (MCY): Free Stock Analysis Report
Atlas Financial Holdings, Inc. (AFH): Free Stock Analysis Report
Selective Insurance Group, Inc. (SIGI): Free Stock Analysis Report
Original post