Selective Insurance Group (FRA:SV2) Effective Interest Rate on Debt %: 5.87% (As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:SV2 Selective Insurance Group Inc FRA:SV2
82 GF Score
Price €79.00
GF Value €86.70
! 6 Warning Signs
View Full Analysis

What is Selective Insurance Group Effective Interest Rate on Debt %?

Selective Insurance Group FRA:SV2 -0.63% 82 Effective Interest Rate on Debt % is 5.87% as of Jun. 2026. GuruFocus rates FRA:SV2 with a GF Score™ of 82/100 and a GF Value™ of €86.70. The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Selective Insurance Group's annualized positive value of Interest Expense for the quarter that ended in Jun. 2026 was €46 Mil. Selective Insurance Group's average total debt for the quarter that ended in Jun. 2026 was €781 Mil. Therefore, Selective Insurance Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 was 5.87%.


Selective Insurance Group  (FRA:SV2) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Selective Insurance Group Effective Interest Rate on Debt % Related Terms


Selective Insurance Group Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Selective Insurance Group's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Selective Insurance Group Effective Interest Rate on Debt % Chart

Selective Insurance Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.73 5.89 5.63 5.82 6.71

Selective Insurance Group Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.68 5.82 5.88 5.89 5.87

FRA:SV2 vs RLI, MCY, WTM: Effective Interest Rate on Debt % Comparison

For the Insurance - Property & Casualty subindustry, Selective Insurance Group's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Selective Insurance Group Effective Interest Rate on Debt % vs Insurance Industry

For the Insurance industry and Financial Services sector, Selective Insurance Group's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Selective Insurance Group's Effective Interest Rate on Debt % falls into.


FRA:SV2
82GF Score
Selective Insurance Group Inc FRA:SV2
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Selective Insurance Group Effective Interest Rate on Debt % Calculation

Selective Insurance Group's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -42.121/( (485.081+770.2)/ 2 )
=-1  *  -42.121/627.6405
=6.71 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=485.081 + 0
=485.081

Selective Insurance Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Mar. 2026 )+Total Debt  (Q: Jun. 2026 ))/ count )
=-1  *  -45.832/( (779.797+782.068)/ 2 )
=-1  *  -45.832/780.9325
=5.87 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=779.797 + 0
=779.797

Total Debt  (Q: Jun. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=782.068 + 0
=782.068

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Jun. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 5.87% mean?
Selective Insurance Group (FRA:SV2) has a Effective Interest Rate on Debt % of 5.87% as of Jun. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Selective Insurance Group and its competitors.
Is Selective Insurance Group's Effective Interest Rate on Debt % too high?
Selective Insurance Group's current Effective Interest Rate on Debt % is 5.87%. Overall, Selective Insurance Group has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Selective Insurance Group's Effective Interest Rate on Debt % compare to RLI and MCY?
Selective Insurance Group's Effective Interest Rate on Debt % of 5.87% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Insurance company?
A good Effective Interest Rate on Debt % depends on the Insurance industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Selective Insurance Group and its competitors. Selective Insurance Group's current Effective Interest Rate on Debt % is 5.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Selective Insurance Group stock overvalued right now?
Selective Insurance Group (FRA:SV2) has a current Effective Interest Rate on Debt % of 5.87%. The stock's GF Value™ is €86.70, compared to a current price of €79.00 — trading 8.9% below its estimated fair value. The current Effective Interest Rate on Debt % is 5.87%. Selective Insurance Group's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Selective Insurance Group (FRA:SV2), the current Effective Interest Rate on Debt % is 5.87% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Selective Insurance Group (FRA:SV2) Overvalued in 2026?

Based on GuruFocus' analysis, Selective Insurance Group stock appears to be undervalued. The current stock price of €79.00 is trading 8.9% below its estimated GF Value™ of €86.70.

Key valuation signals for FRA:SV2:

  • Effective Interest Rate on Debt %: 5.87%
  • GF Value™: €86.70 vs. price of €79.00 (8.9% below fair value)
  • GF Score™: 82/100 with 6 warning signs

No single metric tells the full story. See the FRA:SV2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Selective Insurance Group Business Description

Other Exchanges SIGIP.PFD:USASIGI:USA
Address 40 Wantage Avenue, Branchville, NJ, USA, 07890
Selective Insurance Group Inc is a regional property-casualty insurer based in New Jersey, with its operations focused in the New York metropolitan area. The Company has four operating segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. Majority of revenue is gained from Standard Commercial Lines segment, which comprises of property and casualty insurance products and services provided in the standard marketplace to commercial enterprises, which are typically businesses, non-profit organizations, and local government agencies.
82GF Score

Get the complete analysis for FRA:SV2

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€79.00
Price
€86.70
GF Value