Selective Insurance And Units' Ratings Retained By A.M. Best
Zacks Investment Research | Sep 10, 2017 09:23PM ET
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 Original post
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