SIGI Earnings Prediction
The chart below shows how SIGI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SIGI sees a -1.84% change in stock price 10 days leading up to the earnings, and a -4.01% change 10 days following the report. On the earnings day itself, the stock moves by +0.20%. This data can give you a slight idea of what to expect for the next quarter's release.
SIGI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.26B
13.21%
1.17%
Gross Margin
--
--
--
Operating Margin
10.05%
-31.73%
2.87%
Net Margin
7.61%
-32.36%
2.42%
EPS
1.52
-24.38%
3.40%
No Data Available
SIGI Earnings Analysis
Selective Insurance Group Inc Corporation (SIGI.O) Earnings Conference Call
Positive
Premium Growth and Demand: Net premiums written grew by 12% for the year, indicating strong demand and effective pricing strategies.
Combined Ratio Improvement: The underlying combined ratio improved to 89.4%, a 90 basis point enhancement from 2023, reflecting better operational efficiency and risk management.
Investment Income Performance: After-tax net investment income reached $363 million, contributing 12.8 points to return on equity, showcasing robust investment performance.
Personal Lines Price Increase: Personal lines renewal pure price increased by 27.3% for the quarter and 20.6% for the year, demonstrating effective pricing actions in a competitive market.
Book Value Growth: Book value per share increased by 6% for the year, indicating solid capital growth and financial stability.
Negative
Underperformance in ROE: Operating ROE of 7.1% was below the 12% target, indicating underperformance in profitability expectations.
Combined Ratio Increase: The combined ratio for the year was 103, up 6.5 points from 96.5 in 2023, reflecting increased costs and reserving actions.
Casualty Reserving Actions Impact: In 2024, $411,000,000 in casualty reserving actions were taken, with $311,000,000 impacting prior accident years, significantly affecting the combined ratio.
Earnings Performance Decline: Fully diluted EPS for the full year was $3.23, down 44% from a year ago, marking a significant decline in earnings performance.
Rising Expense Ratio: The expense ratio for the year was 30.6%, with guidance for 2025 indicating an increase to approximately 31.5%, suggesting rising operational costs.
SIGI FAQs
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SIGI Earning Call Sentiment
Earnings call transcript: Selective Insurance misses Q4 2024 EPS forecast
SIGI.O
-0.28%Positive
The earnings call reveals several negative factors: a decline in operating ROE, increased expense ratio, and significant prior year casualty reserve strengthening. Despite some positive aspects like increased net premiums and a dividend hike, the company's guidance reflects ongoing challenges due to social inflation and reserving actions. The Q&A section highlighted management's lack of clarity on key issues, such as reserve charges, which could further undermine investor confidence. Overall, the combination of weak financial metrics, cautious guidance, and management's evasive responses suggests a negative stock price reaction in the short term.
