Selective Insurance Stock Fair Value Calculation – Retirement Systems of Alabama Realizes Significant Profit From Sale of Selective Insurance Group Stake
May 3, 2023
Trending News ☀️
Retirement Systems of Alabama (RSA) has recently made a significant profit through its investment in Selective Insurance ($NASDAQ:SIGI) Group, a provider of property and casualty insurance. RSA purchased 25.6% of Selective Insurance Group’s shares, giving the company a significant financial boost. Selective Insurance Group is a publicly traded company providing property and casualty insurance, including commercial, personal and specialty insurance. Based in Branchville, New Jersey, Selective Insurance Group has grown to become one of the largest insurers in the United States.
RSA has been able to capitalize on the strong performance of Selective Insurance Group and turn it into a sizable profit. This is just one example of the success that RSA has been able to achieve through strategic investments.
Price History
On Tuesday, SELECTIVE INSURANCE stock opened at $97.2 and closed at $97.6, slightly lower than the prior day’s closing price of 98.0. The sale not only marked a financial success for RSA and its beneficiaries, but also highlighted SELECTIVE INSURANCE’s ability to weather volatile market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Selective Insurance. More…
| Total Revenues | Net Income | Net Margin |
| 3.56k | 215.69 | 6.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Selective Insurance. More…
| Operations | Investing | Financing |
| 802.41 | -734.45 | -87.82 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Selective Insurance. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.8k | 8.27k | 40.28 |
Key Ratios Snapshot
Some of the financial key ratios for Selective Insurance are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.7% | – | 8.7% |
| FCF Margin | ROE | ROA |
| 21.8% | 7.8% | 1.8% |
Analysis – Selective Insurance Stock Fair Value Calculation
At GoodWhale, we have conducted a deep dive into SELECTIVE INSURANCE‘s financials and come up with an estimate of its intrinsic value. Our proprietary Valuation Line puts the value of SELECTIVE INSURANCE at around $84.7 per share. This means that the SELECTIVE INSURANCE stock is currently trading at $97.6, which represents a fair price that is overvalued by 15.3%. This suggests that investors may want to wait for a dip in the market before investing in SELECTIVE INSURANCE. More…
Peers
The company’s competitors are Chubb Ltd, Safety Insurance Group Inc, and Suncorp Group Ltd.
– Chubb Ltd ($NYSE:CB)
Chubb Ltd is a holding company for insurance and reinsurance companies, which underwrite property and casualty, and accident and health insurance. The company has a market cap of 88.41B as of 2022 and a return on equity of 10.07%. Chubb Ltd operates in over 54 countries and territories and provides a broad range of insurance products and services for individuals, families, and businesses. The company’s products and services include homeowners insurance, automobile insurance, commercial property insurance, workers’ compensation insurance, and general liability insurance.
– Safety Insurance Group Inc ($NASDAQ:SAFT)
The company’s market cap is 1.35B as of 2022 and its ROE is 5.35%. The company is a provider of insurance products and services in the United States. Its products include auto, home, business, and life insurance.
– Suncorp Group Ltd ($ASX:SUN)
Suncorp Group Ltd is a leading financial services provider in Australia and New Zealand. The company has a market cap of 15.04 billion as of 2022 and a return on equity of 5.91%. Suncorp provides a range of banking, insurance, and investment products and services to its customers. The company has a strong presence in both Australia and New Zealand, with over 9,000 employees across the two countries.
Summary
The Retirement Systems of Alabama (RSA) recently sold its 25.6% stake in Selective Insurance Group, Inc. (SELECT), a provider of specialty insurance products and services in the US. Analysts have noted the strong performance of SELECT’s stock over the past few years and anticipate that it will continue to rise in the future due to its diversified product portfolio and sound risk management structure. Furthermore, its ability to successfully penetrate new markets and expand its offerings bodes well for its long-term growth.
In addition, its solid dividend yield, as well as its disciplined capital deployment strategy, make it an attractive investment option. With its strong fundamentals, analysts believe that SELECT is well-positioned to deliver strong returns in the years ahead.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
