Radian vs Selective

This page compares Radian and Selective, detailing how each operates, their business models, financial performance, and the market context in which they operate. The aim is to provide clear, accessible information for readers, without promoting any particular outcome. Educational content, not financial advice.

About The Companies

Radian (RDN)

Radian Group Inc. (RDN) is a US-based mortgage insurance and real-estate services firm that underwrites mortgage default risk and offers related risk-management solutions. Investors should know that Radian’s earnings come from premium income, investment returns on capital and the company’s ability to manage claims and reserves. The business tends to benefit from stable or rising home prices and strong employment, which reduce claim rates, while a downturn in housing or weakening borrower credit can raise losses. Radian is also sensitive to interest-rate moves because they influence mortgage origination and refinancing activity. Capitalisation and regulatory capital requirements affect how much new business the group can write and how it returns capital to shareholders. With a market capitalisation of about $4.6bn, Radian sits in the mid‑cap financial space; it may appeal to investors seeking exposure to the mortgage finance cycle, but suitability depends on risk tolerance, time horizon and portfolio context. This is general information, not personalised financial advice.

Selective (SIGI)

Selective Insurance Group, Inc. (SIGI) is a US-based property & casualty insurer that focuses on niche commercial lines and select personal lines distributed primarily through independent agents and brokers. The company targets small-to-medium commercial risks such as contractors, habitational and mercantile businesses, aiming to combine disciplined underwriting with targeted product offerings. Key value drivers for investors include underwriting margins, reserve development, catastrophe losses and investment income from a fixed-income portfolio. With a market capitalisation near $5.11bn, SIGI sits in the mid-cap insurer space where execution and pricing power can materially affect returns. Strengths can include established agent relationships and a focused regional footprint; risks include exposure to severe weather events, claim-cost inflation and competitive pricing. Shares can be volatile and dividends are dependent on operating results and capital needs. This is general educational information and not personalised investment advice — suitability depends on your goals, timeframe and risk tolerance.

Comparison Snapshot

Key Financial Metrics

RDN

Metric

SIGI

$4.86B

Market Cap

$4.97B

8.70%

Potential Profit

3.89%

Hold

Analyst Rating

Hold

Which Baskets Do They Appear In?

The Great Mortgage Privatization

The planned IPOs for mortgage giants Fannie Mae and Freddie Mac signal a historic shift toward privatization in the U.S. housing market. This move stands to benefit not only the investment banks managing the deal but also a wider ecosystem of mortgage lenders and insurers.

Published: August 11, 2025

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Which Baskets Do They Appear In?

The Great Mortgage Privatization

Published: August 11, 2025

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Investment Analysis

Radian

RDN

Pros

Radian Group has demonstrated steady revenue growth with an increase to $1.29 billion in 2024, up 4.01% year-over-year.
The company maintains strong profitability with net income of $586.54 million and a low forward price-to-earnings ratio of 8.28, indicating potential undervaluation.
Radian provides essential mortgage insurance and real estate services, offering risk management solutions that support the U.S. mortgage lending market.

Considerations

Despite stable earnings growth, analyst consensus positions Radian as a Hold, signaling moderate market optimism without clear upside.
The stock trades at approximately 1x forward price-to-book ratio, suggesting limited valuation expansion potential relative to book value.
Radian’s business is closely tied to the housing and mortgage markets, exposing it to cyclical risks and fluctuations in real estate cycles.

Selective

SIGI

Pros

Selective Insurance Group has a long-standing history dating back to 1926, providing diverse property and casualty insurance products via independent agents.
The company offers a broad portfolio including commercial, personal, and excess lines coverage, supporting diversified revenue streams.
Selective trades at a forward price-to-book ratio of about 1.3x, reflecting a moderate market valuation compared to peers.

Considerations

Selective Insurance Group faces industry challenges such as sensitivity to catastrophic events and economic cycles, impacting earnings stability.
The stock has been flagged for cautious investor interest due to macroeconomic and regulatory uncertainties in the insurance sector.
Its market capitalization near $4.57 billion places it in a competitive, mid-sized insurance company bracket with pressure from larger firms.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

The Great Mortgage Privatization

Which Baskets Do They Appear In?

The Great Mortgage Privatization

Investment Analysis

Radian

Pros

Considerations

Selective

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

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What does revenue growth tell us about Radian's recent performance?

Why is Selective’s dividend or earnings profile important to consider here?

What role do market cycles play for these two companies?

How does the housing market impact the risk profile of Radian?

What external factors commonly affect Selective’s insurance business?

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About The Companies

Comparison Snapshot