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Selective Insurance prefers independent path over M&A,CFO says

Written by Jasir Jawaid


"We've deployed all powers of the cloaking device so nobody can find Branchville, N.J."

That's how Selective Insurance Group Inc. CFO Dale Thatcher jokingly responded to a question by Bank of America Merrill Lynch's Jay Cohen during the company's earnings conference call Oct. 29. The analyst asked if the company was getting calls from bankers to be a buyer or a seller.


Thatcher said the company would not be a buyer at the sort of prices involved in some of the recent deals, echoing comments made on the previous quarter's call when he said the company would not overpay for a deal.


"We believe an independent path is the best way for us to generate long-term shareholder value," Thatcher said, but he added that if a "credible offer" is on the table, the board will do its fiduciary duty.


Also, the company expects a "very manageable" loss of $5 million from Hurricane Joaquin in its personal and commercial lines, Chairman and CEO Gregory Murphy said on the call.


This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.

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