Selective Insurance Group (SIGI)

It has been a slow and rough time for insurance providers, and though SIGI insurance is no different, its recent 13% drop in share price is. That was due to several things stemming from management and not so much from real world events. This company took a one time restructuring charge in February, along with higher short term cash positions to hedge against the financial markets volatility. As i see it, this company is taking all the necessary steps to not only safeguard its investments, but also to improve its infrastructure. If thats worth a 13% drop, then im in now on the cheap and ready for clear sailing ahead.

Selective Insurance engaged in major cost cutting initiatives at the beginning of 2008 in order to "shore up" its one major vulnerability in the industry. Selective has been a historically strong performer however, in recent years the direct competitor's Expense Ratio has outperformed Selective in spite of Selective’s strong Earnings and Profitability.