I am always interested in MARKetWATCHer’s opinions. Who are the potential buyers for Selective? In Ohio they have been writing personal lines clients with horrible loss histories on both home and auto at give away prices. In commercial lines they have been inept which is ironic given their supposed strength in commercial lines. Is this the case in other areas of the country? On the surface they seem like a good company, but their actions seem desperate. I was told that they had less than 5,000,000 in Ohio personal lines a year or two ago, and that is why they will write anything. Their total writings in Ohio do not exceed 20 million from what I have been told. I am curious what other agents have to say about the state of Selective.
Why is it publications always prefer to focus on the bad ? This article left off the part of the information that Selective had a 2008 Statutory Combined Ratio of 99.2% which is ahead of Fitch Ratings estimate for P&C insurers of 104.81 %. Additionally total revenue was $1.7 billion for 2008 compared to $1.8 billion in 2007. One bad quarter does not a losing team make. It’s who scores at the finish line that wins.
I don’t know. I’ve been worried about them for awhile now. They are still writing contractors CHEAP in Illinois, and that is about the dumbest thing I’ve ever seen. We lost 2 accounts to them in December, and they were giving 40% credit on tough contractors. Idiots.
Let’s be real here!!! All carriers are doing STUPID things–not just Selective.
Work Comp is at the top of the list.
Combined for 2009 will be over 1.10.
Pending layoff–back injuries will be the claim of the week.
Whoa. Don’t generalize and say ALL carriers. there are a few of us that will post combined ratios in the low 90’s, and we continue to do it RIGHT! We’ll be here when this thing tightens up, and when Selective, Acuity, West Bend, Peerless, Hanover, Harleysville, Indiana, and others start bailing accounts.
And if you’re putting business with aggressive Work Comp markets, good luck 1 year from now. That is all I can say, good luck.
(ask the agents that used to put business with IL National, EBI, Fremont, Industrial Indemnity, Casualty, Virginia Surety, etc., etc., etc.)
You should correct yourself. If you go back to the beginning of 2008, or perhaps 2007, Market Watcher has hit on about 7 of 9 predictions.
He/she (whoever he/she is) called the Ohio Casualty acquisition, the Safeco deal, the Philadelphia deal, and a couple of others. He also generally said that Liberty Mutual was about to do something big, and possibly stupid – and then they went and buried Wausau.
So he must watch something in these markets. Though I think he/she has been calling for the sale of Selective and Cincy for some time now.
Market Watcher is an industry analyst, who charts company performance, stock movement, and industry presence. That is why he knows so much about acquisitions, and possible mergers. It isn’t rocket science. He has a regular blog on one of the other industry web sites.
R Donaldson- What exactly is “descipline”? Not sure where you come from but in our part of the country Selective doesn’t quote without applications or losses and aren’t undercutting the competitors by any 40-60%. Maybe just something in your particular area. What part of the country are you in ?
When you don’t bother to get an application nor review loss history, but simply throw out price cuts of 40 – 60%, you deserve underwriting losses. They have no descipline.
Funny how all carriers point fingers saying “how can that carrier be so reckless–we would never do that” What a joke –EVERY carrier is guilty of watering down this market to the point of a 1.05 soon to be 1.10 combined- Then they will blame the agents–even more funny-I personally think they are all stupid–but then again when the insurance people stopped running the companies and the “financial wizzards” started to work their “magic” it all went to hell. You can’t write an account under 25k these days that needs service–certs–and make a profit.
I don’t much care how Donaldson spells. He makes a good point. In Illinois Selective hasn’t looked at apps or loss runs for years. They are almost as cheap as Indiana. (and they underwrite even less than Indiana – if that is possible)
I am always interested in MARKetWATCHer’s opinions. Who are the potential buyers for Selective? In Ohio they have been writing personal lines clients with horrible loss histories on both home and auto at give away prices. In commercial lines they have been inept which is ironic given their supposed strength in commercial lines. Is this the case in other areas of the country? On the surface they seem like a good company, but their actions seem desperate. I was told that they had less than 5,000,000 in Ohio personal lines a year or two ago, and that is why they will write anything. Their total writings in Ohio do not exceed 20 million from what I have been told. I am curious what other agents have to say about the state of Selective.
Live by the Street – Die by the Street
It was inevitable. They have appointed and are top-heavy with hacks who twist square pegs into round holes.
The best news here is that the stock will shoot to $30 when they are sold April 1.
Why is it publications always prefer to focus on the bad ? This article left off the part of the information that Selective had a 2008 Statutory Combined Ratio of 99.2% which is ahead of Fitch Ratings estimate for P&C insurers of 104.81 %. Additionally total revenue was $1.7 billion for 2008 compared to $1.8 billion in 2007. One bad quarter does not a losing team make. It’s who scores at the finish line that wins.
I don’t know. I’ve been worried about them for awhile now. They are still writing contractors CHEAP in Illinois, and that is about the dumbest thing I’ve ever seen. We lost 2 accounts to them in December, and they were giving 40% credit on tough contractors. Idiots.
Holy cow – the stock closed at $15.78.
Oh-oh, bye-bye SIGI (Selective Insurance)
Marketwatcher is constantly talking about companies being sold. It hasn’t materialized.
Let’s be real here!!! All carriers are doing STUPID things–not just Selective.
Work Comp is at the top of the list.
Combined for 2009 will be over 1.10.
Pending layoff–back injuries will be the claim of the week.
Whoa. Don’t generalize and say ALL carriers. there are a few of us that will post combined ratios in the low 90’s, and we continue to do it RIGHT! We’ll be here when this thing tightens up, and when Selective, Acuity, West Bend, Peerless, Hanover, Harleysville, Indiana, and others start bailing accounts.
And if you’re putting business with aggressive Work Comp markets, good luck 1 year from now. That is all I can say, good luck.
(ask the agents that used to put business with IL National, EBI, Fremont, Industrial Indemnity, Casualty, Virginia Surety, etc., etc., etc.)
You should correct yourself. If you go back to the beginning of 2008, or perhaps 2007, Market Watcher has hit on about 7 of 9 predictions.
He/she (whoever he/she is) called the Ohio Casualty acquisition, the Safeco deal, the Philadelphia deal, and a couple of others. He also generally said that Liberty Mutual was about to do something big, and possibly stupid – and then they went and buried Wausau.
So he must watch something in these markets. Though I think he/she has been calling for the sale of Selective and Cincy for some time now.
Market Watcher is an industry analyst, who charts company performance, stock movement, and industry presence. That is why he knows so much about acquisitions, and possible mergers. It isn’t rocket science. He has a regular blog on one of the other industry web sites.
you are amazed at Selective’s stock price? Watch Cincy’s go in the tank when they announce results this week.
it is plummeted from $30 to $22 in the past 10 days. Might be headed for $16 or $18 – another 25% down
SELL NOW!
Which industry website does Marketwatcher use for his blog?
I will not be writing anything else with Selective. Too risky!!!!!!
R Donaldson- What exactly is “descipline”? Not sure where you come from but in our part of the country Selective doesn’t quote without applications or losses and aren’t undercutting the competitors by any 40-60%. Maybe just something in your particular area. What part of the country are you in ?
When you don’t bother to get an application nor review loss history, but simply throw out price cuts of 40 – 60%, you deserve underwriting losses. They have no descipline.
Funny how all carriers point fingers saying “how can that carrier be so reckless–we would never do that” What a joke –EVERY carrier is guilty of watering down this market to the point of a 1.05 soon to be 1.10 combined- Then they will blame the agents–even more funny-I personally think they are all stupid–but then again when the insurance people stopped running the companies and the “financial wizzards” started to work their “magic” it all went to hell. You can’t write an account under 25k these days that needs service–certs–and make a profit.
I don’t much care how Donaldson spells. He makes a good point. In Illinois Selective hasn’t looked at apps or loss runs for years. They are almost as cheap as Indiana. (and they underwrite even less than Indiana – if that is possible)
If Selective hits $12, BUY !!!
but since the no regime came in — the company is headed for disaster. The company at one time cared for their employees — not anymore!!!!!