Selective Insurance Group Executives Make Bold Stock Purchases Amid Market Volatility.

Selective Insurance Group's stock has seen a significant decline of 18.5% after its Q2 2025 earnings report, attributed to weaker-than-expected earnings and increased combined ratio guidance. Despite this, the company reported strong investment income growth and improvements in key segments. Two top executives have shown confidence in the company by purchasing shares, valued at $151,420 and $107,701 respectively.

Selective Insurance Group Inc. (NASDAQ: SIGI) reported its Q2 2025 earnings on July 24, 2025, with the stock experiencing a significant decline of 18.5% following the announcement. The company's earnings per share (EPS) of $1.31 missed the Zacks Consensus Estimate of $1.55, marking a 15.48% miss. Despite this, the company reported strong revenue performance, with $1.32 billion in revenues, which exceeded the Zacks Consensus Estimate by 0.90% [3].

The company's combined ratio guidance was increased, which contributed to the stock's decline. The combined ratio, a measure of an insurer's underwriting profitability, was guided to be between 97% and 98% for the full year 2025, compared to the previous guidance of 95% to 96%. This increase suggests that the company expects higher claims and expenses, which could negatively impact profitability [4].

However, there were several positive aspects in the report. The company reported strong investment income growth, with investment income increasing by 15% compared to the same quarter last year. Additionally, the company's return on common equity (ROE) improved to 10.7% from -9.5% in the same quarter last year, indicating enhanced operational efficiency and profitability [2].

Two top executives at Selective Insurance Group demonstrated confidence in the company by purchasing shares. Cavanaugh Terrence W, a director at SIGI, purchased 2,000 shares at approximately $75.72 each, increasing his total ownership to 25,294.93 shares. Another executive also bought shares, valued at $151,420 and $107,701 respectively. These transactions indicate that the executives are optimistic about the company's future prospects [3].

In conclusion, Selective Insurance Group's Q2 2025 earnings report was mixed, with weaker-than-expected earnings and increased combined ratio guidance contributing to the stock's decline. However, the company reported strong investment income growth and improvements in key segments. The confidence shown by top executives in the company's future prospects suggests that there may be opportunities for long-term investors.

References:
[1] https://finance.yahoo.com/news/selective-insurance-group-inc-sigi-132940649.html
[2] https://www.tradingview.com/news/tradingview:7996560c87054:0-selective-insurance-group-inc-sec-10-q-report/
[3] https://site.financialmodelingprep.com/market-news/selective-insurance-group-insider-buys-shares-signaling-confidence
[4] https://www.investing.com/news/company-news/selective-insurance-q2-2025-slides-combined-ratio-improves-roe-reaches-125-93CH-4149410