Morgan Stanley has revised its price target for Selective Insurance (SIGI, Financial), decreasing it from $87 to $85, while maintaining an Equal Weight rating on the company's shares. This adjustment comes as part of a broader review of the firm's property and casualty insurance portfolio.
The financial institution adjusted its earnings per share (EPS) projections for the first quarter and the year 2025. These changes are attributed to a slightly higher projected core loss ratio in Personal Lines, influenced by potential tariff effects. Additionally, growth forecasts for Commercial Lines have been tempered due to macroeconomic uncertainties and a slowdown in organic growth. Although these concerns are somewhat alleviated by reduced broker expenses, they are compounded by an increase in catastrophic events and ongoing macroeconomic uncertainties affecting reinsurers.
Overall, Morgan Stanley has lowered several price targets across its coverage area to align with declining market sentiment and recession fears. These adjustments reflect an updated outlook for the insurance sector that incorporates revised EPS expectations.
