Selective Insurance Group Inc. (NASDAQ: SIGI) announced a new $200 million share buyback program on Wednesday. The program is set to become effective on October 27, 2025, replacing the company’s previous $100 million buyback initiative.
Under this program, Selective Insurance may repurchase up to $200 million of its common shares. Repurchases could occur through open market transactions, privately negotiated deals, block trades, or accelerated share repurchase arrangements. The company stated that the pace and volume of repurchases will depend on share prices, market conditions, and other factors.
Strong Financial Performance
The company also released its Q3 2025 financial results. Total revenue reached $1.36 billion, marking a 9.1% increase compared to the previous year. Earnings per share (EPS) stood at $1.85, surpassing analysts’ expectations.
Net premiums written totaled $1.21 billion, up 4% year-over-year, while net investment income rose to $110 million, an 18% increase. The company reported a combined ratio of 98.6%, signaling healthy profitability in the insurance sector. Catastrophic losses during the quarter were $40 million, lower than the previous year.
The company emphasized that its strong financial position enables this buyback program and helps create additional value for shareholders in the future.
Purpose of the Buyback Program
The primary objective of the share buyback program is to provide value to shareholders. By reducing the supply of outstanding shares, the program can increase earnings per share (EPS), potentially boosting share prices.
Analysts view this move as a positive signal, reflecting investor confidence in the company’s financial strength and future prospects.
During the previous buyback program announced in December 2020, the company repurchased approximately $44.65 million worth of 554,551 shares by the first quarter of 2025.
Impact on Investors and the Market
Analysts suggest that the new buyback program could stabilize Selective Insurance’s stock and create attractive opportunities for long-term investors. Given the company’s robust financial performance, investors perceive the initiative positively.
The company’s CFO stated in a press release, “Our goal is to deliver value to shareholders while maintaining the company’s financial health. This new buyback program is part of that strategy.”
Outcome
Selective Insurance Group’s $200 million share buyback program demonstrates the company’s strong financial position and commitment to shareholders. Investors are viewing this step as a positive sign, with expectations of potential stock stabilization and growth in the coming months.
Source: Selective insurance News
