Selective Insurance (SIGI) 10-Q 2011 Q3 Quarterly report

Exhibit 11

SELECTIVE INSURANCE GROUP, INC. AND CONSOLIDATED SUBSIDIARIES

COMPUTATION OF EARNINGS PER SHARE

Third Quarter 2011	Income			Shares		Per Share
(in thousands, except per share amounts)	(Numerator)			(Denominator)		Amount
Basic EPS:
Net loss from continuing operations	$	(19,492	)		54,183	$	(0.36	)
Net loss from discontinued operations		(650	)		54,183		(0.01	)
Net loss available to common stockholders		(20,142	)		54,183	$	(0.37	)
Effect of dilutive securities:
Restricted stock units		-			-
Employee stock purchase plan		-			-
Stock options		-			-
Deferred shares		-			-
Diluted EPS:
Net loss from continuing operations	$	(19,492	)		54,183	$	(0.36	)
Net loss from discontinued operations		(650	)		54,183		(0.01	)
Net loss available to common stockholders	$	(20,142	)		54,183	$	(0.37	)

There was no effect of dilutive securities for Third Quarter 2011 since the quarter was in a loss position and the effect of common stock equivalents would be anti-dilutive to our earnings per share calculation.

Third Quarter 2010	Income			Shares		Per Share
(in thousands, except per share amounts)	(Numerator)			(Denominator)		Amount
Basic EPS:
Net income from continuing operations	$	18,831			53,457	$	0.35
Net loss from discontinued operations		(1,634	)		53,457		(0.03	)
Net income available to common stockholders	$	17,197			53,457	$	0.32
Effect of dilutive securities:
Restricted stock and restricted stock units		-			831
Employee stock purchase plan		-			7
Stock options		-			93
Deferred shares		-			185
Diluted EPS:
Net income from continuing operations	$	18,831			54,573	$	0.35
Net loss from discontinued operations		(1,634	)		54,573		(0.03	)
Net income available to common stockholders	$	17,197			54,573	$	0.32

Nine Months 2011	Income			Shares		Per Share
(in thousands, except per share amounts)	(Numerator)			(Denominator)		Amount
Basic EPS:
Net income from continuing operations	$	4,382			54,033	$	0.08
Net loss from discontinued operations		(650	)		54,033		(0.01	)
Net income available to common stockholders	$	3,732			54,033	$	0.07
Effect of dilutive securities:
Restricted stock and restricted stock units		-			833
Employee stock purchase plan		-			23
Stock options		-			99
Deferred shares		-			184
Diluted EPS:
Net income from continuing operations	$	4,382			55,172	$	0.08
Net loss from discontinued operations		(650	)		55,172		(0.01	)
Net income available to common stockholders	$	3,732			55,172	$	0.07

Nine Months 2010	Income			Shares		Per Share
(in thousands, except per share amounts)	(Numerator)			(Denominator)		Amount
Basic EPS:
Net income from continuing operations	$	45,515			53,298	$	0.85
Net loss from discontinued operations		(3,749	)		53,298		(0.07	)
Net income available to common stockholders	$	41,766			53,298	$	0.78
Effect of dilutive securities:
Restricted stock and restricted stock units		-			791
Employee stock purchase plan		-			8
Stock options		-			111
Deferred shares		-			182
Diluted EPS:
Net income from continuing operations	$	45,515			54,390	$	0.84
Net loss from discontinued operations		(3,749	)		54,390		(0.07	)
Net income available to common stockholders	$	41,766			54,390	$	0.77