11:47 AM EDT, 03/23/2026 (MT Newswires) -- Selective Insurance Group ( SIGI ) appears to be improving its reserve position, especially in commercial auto liability, RBC Capital Markets said in a note Monday.

The analysts said they are "once again cautiously optimistic" that the company has addressed reserving challenges in other liability occurrence and commercial auto liability.

They also believe the company may have some padding in its workers' compensation business, which could help offset any reserve deficiencies.

Commercial auto liability reserves look much improved after $110.8 million of additions to accident years, or AY, 2022 through 2024, and pricing has increased since 2023, the analysts said. Current loss ratios for AY23-25 average 75.5%, below the pre-Covid 78% average, they said. "Pricing in excess of trend implies better liability booked loss ratios, but the degree of improvement leaves us nervous," the analysts said.

RBC has an outperform rating and a $95 price target on Selective Insurance Group ( SIGI ).

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