Selective Insurance slumps to near 2-yr low after surprise Q2 loss

Selective Insurance

19/07/2024 17:16

** Shares of Selective Insurance  SIGI.O  fall as much as
16.9%, hitting a near two-year low; last down 14.9% at $85.38
    ** Late on Thursday, SIGI posted adjusted loss of $1.10/shr
vs with analysts' expectation of a profit of $1.49/shr - LSEG
data
    ** Q2 net unfavorable prior year casualty reserve
development totaled $176 mln due to higher severity - the cost
of a claim
    ** Piper Sandler analyst Paul Newsome says the unfavorable
reserve development was unexpected and the reserve issues seem
to have become worse in Q2 
    ** Insurers set aside a certain amount of funds in order to
meet any future claims they may have to pay
    ** SIGI stands out in our coverage as having more trouble
with its reserves than others - Piper Sandler 
    ** This was a challenging quarter. We did not meet our high
standard as underwriting performance fell below our target -
SIGI CEO John Marchioni
    ** Including session moves, SIGI shares down 14.7% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))