Recently, A.M. Best Co. affirmed the issuer credit rating
Selective Insurance Group Inc.
) at "bbb+" along with all the debt ratings of the company. The
rating agency also affirmed the financial strength rating (FSR)
and ICR of Selective Insurance's subsidiary - Selective Insurance
Company of America - and its 9 pooled affiliates at "A" and "a+",
All ratings of Selective Insurance, its subsidiary and the
affiliates carry a stable outlook.
The rating affirmation of Selective Insurance's subsidiary and
its affiliates were based on their sustained operating
profitability, which resulted in a strong risk-adjusted
capitalization even after dividend payments. Additionally, these
companies' strong market position in the property and casualty
insurance market, a proficient management team and the financial
support provided by Selective Insurance also supported the
These positive factors were partly offset by significant
variance in Selective Insurance Company of America and its
affiliates' underwriting results, which sometimes led to
below-average operating results, along with lower-than-composite
average returns and investment yield and high underwriting
Ratings for Selective Insurance Company of America and its
affiliates might be revised upward by A. M. Best if they generate
above-average operating results over the long term. On the other
hand, a significant downturn in operating profits or
risk-adjusted capitalization may lead to a rating downgrade.
Rating affirmations or upgrades from credit rating agencies
play an important part in retaining investor confidence in the
stock as well as maintaining credit worthiness in the market. We
believe the strong ratings scores will help Selective Insurance
to retain investor confidence and help it write more businesses
going forward, thereby boosting its results.
Selective Insurance currently carries a Zacks Rank #3 (Hold).
Some other companies worth considering in the property and
casualty insurance business are
Montpelier Re Holdings Ltd.
XL Group plc
White Mountains Insurance Group, Ltd.
). All these companies carry a Zacks Rank #1 (Strong Buy).
MONTPELIER RE (MRH): Free Stock Analysis
SELECT INS GRP (SIGI): Free Stock Analysis
WHITE MTN INS (WTM): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
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